mccloskey petcoke conference june 10-11, 2008 presented by: thomas springer steamship agents since...
TRANSCRIPT
McCloskey Petcoke Conference
June 10-11, 2008 Presented by:Thomas Springer
Steamship Agents since 1905
The Strong Charter Market: Identifying Risk$ Before
Fixing
Biehl & Co - History
Founded in 1905 in the Port of Galveston, TX With the purchase of Carolina Shipping in 1989, Biehl /
Carolina has grown to become one of the largest steamship agents in the U.S.
– 18 offices located in the US Gulf Coast / US East Coast– More than 150 dedicated employees– ISO Certified / committed to personalized customer service– 100% ASBA certified operations employees
Biehl is committed to meet the needs of:– Suppliers / Charterers / Ship Owners / Shippers / Terminals
Cargo expertise:– Petcoke, Dry Bulk, Tankers, Chemicals, Break-bulk, RORO, etc.
Biehl & Co – Thomas Springer
Education– Vanderbilt University – Bachelors of Engineering– Hamburg School of Shipping – Chartering Broker– Institute of Chartered Shipbrokers – Member– Cass Business School – Msc in Shipping, Trade & Finance
Work Experience– H. Schuldt (Hamburg, Germany)– A.J. Zachariassen (Hamburg, Germany)– Boyd Steamship (Panama City, Panama)– Oskar Wehr (Hamburg, Germany)– Biehl & Co. (Houston, Texas)
Current Freight Rate
Clarksons – Shipping Intelligence Network
Example – Lake Charles, LA
Import Vessels– Crude Tanker– LNG (3 terminals)
Export Vessels– Dry Bulk (Petcoke)
Smaller vessels which are generally not affected by restrictions on large vessels
Calcasieu River Port Restrictions
24 hr transit – Channel is sometimes closed during the evening (night traffic) per pilot determination
Draft Restrictions – 40 ft First Come / First Served (for pilot orders) Two-way traffic allowed unless:
– The combined beam of the passing vessels is greater than 200 ft– The draft of either vessel is greater than 34 ft
Convoy system for large vessels – One-way traffic– Vessels start in 30-60 min intervals
LNG vessel exclusion zone– 2 miles ahead / 1 mile astern
Calcasieu River Traffic Issues
Fog– about 30 days annually causing delays– Fog generally “burns off” around 1100 hrs
Tide Window (required for deep draft vessels)– Flood tide (about 12 hrs)– Cameron Narrows (fast current / large wake)
Port Restrictions– Affects Crude and LNG (inbound) and Bulk (outbound)– Indirectly also other vessel traffic
But Where Are The Risk$?
Vessel Port / Waterway Terminals Government Agencies Weather Factors
Vessel Risk$
Vessels in poor condition which can leading to:– Equipment failures / USCG deficiencies
96 hr advance notice required for dead-ship movement Terminal may issue Vacate Berth order (penalty dockage) Vetting rejection – requirement of various charterers
– Additional costs Owner is off-hire and needs to make repairs Waiting vessels accrue demurrage Possible berth congestion
Vessel Risk$ (cont)
New operators not familiar with handling petcoke– Documentation issues
Issuance of the B/L, Mate’s Receipt, etc.Delays can sometimes result in the loss of 2-4 hours
– Petcoke handling procedures Fast load rates result / need to deballast the vessel quickly.
Delays can sometimes exceed 10 hrs for slow vessels. Cargo handling
Cargo will also have a certain moisture content (reduce dust) Cargo quantity – ensure that vessel is not overloaded
*may result in the need to hire a barge and floating crane
Port / Waterway Risk$
New Vessel Designs– Increased hull width / changed hull design
Displaces more water / larger wake (moored vessels) Restrictions for vessels passing (one-way traffic)
– Increase LOA May require an additional pilot (extra cost) May exceed the max length to turn the vessel (turning basin)
– Increase draft above Panama Canal max (12m / 40 ft) General 40 ft draft restriction in the US Gulf Restrictions on vessel movements (day light / tide restricted)
Port / Waterway Risk$ (cont)
Daylight Restriction– Restricted due to draft / LOA– Arrival / sailing only during daylight– May result in a 12 hr delay
Traffic Control– Some ports convoy large deep draft vessels
High tide – additional draft Tug availability – lack of equipment / crews
– LNG Vessels Exclusion zone (2 miles ahead / 1 mile astern)
Terminal Risk$
Berth Application– Binds the vessel to terminal’s Terms and Conditions– Provides ship details / acceptance of financial
responsibility– Outlines fees, dispatch rates and general operations
including terminal and vessel liability
Load Rate– The terminal will specify a load rate (dispatch)– Possible in some ports for the Charterers to pay:
Demurrage (Vessel) and Dispatch (Terminal)
Terminal Risk$
Dockage Charges– From $0.23 to $0.52 / GRT / 24 hours (Texas City, TX)
– From $0.13 to $0.49 / GRT / 24 hours (Corpus Christi, TX)
Other Common Terms– Maximum shift time (hatch to hatch) / deballast rate– Vessel characteristics / dimensions– Security fee charged to vessel– Requirement to keep lines tight (passing vessels)– Surcharge for loading small cargo amounts / partial
hold loading– Charge for bunkering / spare delivery / require launch
Government Agency Risk$
Homeland Security (the holding company)– eNOAD (Notice of Arrival / Departure)– May result in a 96 hr delay and fine
USCG (Coast Guard)– Offshore security boarding– Vessel inspection / deficiencies
CBP (Customs Boarder Patrol)– Dockside security boarding– Immigration, APHIS inspection, etc.
Government Agency Risk$ (cont)
ISPS Clause (BIMCO)– USCG / CBP use a Threat Matrix to determine
whether a vessel needs to be inspected but they will NOT advise whether it is an owner or charterer issue
– Clause outlines the responsible (paying) party
TWIC Card– Background check / additional cost– Required for unsupervised access to the port– Implementation has been severely delayed
Weather Factor Risk$
Lunar Tide– US Gulf (about 1-2 ft and predictable)
Wind Tide– Generally the wind forces water into the ports
Winter Storms– Drives water out of the ports– May cause a 2 ft reduction in the draft– Dec 2003 (6 ft draft change within 24 hrs)
Weather Factor Risk$ (cont)
Fog– Occurs during the winter months– Usually “burns off” within a couple of hours but may
remain for several days– May result in one-way / priority traffic once the port
reopens to vessel movements
Hurricanes– Very unpredictable– Ports will close / all vessels ordered out– Ports are slow to reopen (check navigational aids)
Weather Factor Risk$ (cont)
Example: Houston, TX (excluding channel closures)
A daylight restricted vessel can sail:– With 39 ft draft about 95% of the time– With 40 ft draft about 35% of the time
Deadfreight vs. Demurrage
Tpi: 150 t / in / Rate: $90 / t
Rate: $60,000
Deadfreight (1 ft): 1800 t
Deadfreight Cost: $162,000 Breakeven: 2.7 days
So what will this cost me?
Vessel Rate: $60,000 per day
Hours Cost
Documentation Issues 4 $10,000
Vessel Slow Deballasting 10 $25,000
One-way / Daylight Rest. 12 $30,000
eNOAD 96 $240,000
Offshore Security Boarding 16 $40,000
Winter Storm 20 $50,000
Fog 6 $15,000
Check Before Fixing
An experienced, proactive agent adds substantial value for Suppliers, Charterers, Terminals and Owners
Steamship Agents since 1905