TANKEROperator

APRIL 2015

www.tankeroperator.com

Serious Products for a Serious Problem

Anti-Piracy Solutions
A complete suite of bespoke vessel security equipment

www.easi-chock.com

Largest
NYSE listed
crude oil
tanker
company
in the
world

De Gerlachekaai 20 B-2000 antwerpen tel. +32 3 247 44 11 fax +32 3 247 44 09

Contents
04

Markets
 Strong fundamentals
 LRordering key

07

News Focus
 ISM Code and tankers
 Pools and the law

11

Manning & Training

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

22

Anti-Piracy
 Vessel hardening
 SE Asia procedures

26

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

Serious Products for a Serious Problem

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

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

www.easi-chock.com

April 2015

TANKEROperator

01

COMMENT

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

verification (MRV) proposals. Basically the

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

generators must also be taken into

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

TANKEROperator
Vol 14 No 5
Future Energy Publishing Ltd
39-41 North Road
London N7 9DP
www.tankeroperator.com

PUBLISHER/EVENTS/
SUBSCRIPTIONS
Karl Jeffery
Tel: +44 (0)20 8150 5292
jeffery@d-e-j.com
EDITOR
Ian Cochran
Mobile: +44 (0)7748 144 265
cochran@tankeroperator.com

02

ADVERTISING SALES
Melissa Skinner
Only Media Ltd
Mobile: +44 (0)7779 252 272
Fax: +44 (0)20 8674 2743
mskinner@tankeroperator.com
SOUTH KOREAN
REPRESENTATIVE
Seung Hyun, Doh
Mobile: +82 2 547 0388
therepng@gmail.com

PRODUCTION
Wai Cheung
Tel: +44 (0)20 8150 5292
wai@tankeroperator.com
SUBSCRIPTION
1 year (8 issues) - 150
Subscription hotline:
Tel: +44 (0)20 8150 5292
sub@tankeroperator.com
Printed by PRINTIMUS
Ul.Bernardynska 1
41-902 Bytom, Poland

TANKEROperator  April 2015

Looking for a Simple, Robust & Efficient BWTS ?

Join us in any of the following events

Europort, Instanbul

GREEN4SEA, Athens

Nor-Shipping, Oslo

KORMARINE, Busan

Marintec, Shanghai

Key Features in place

IMO, Class & USCG AMS - Approved

Fresh Water Treatment - Approved

Scalable / Modular Design

Suitable solution for N/Bs & Retrofits

Low power consumption &
Maintenance costs

Oslo : + 47 900 37 405 | Piraeus : +30 210 4093000 | Shanghai : +86 131 2097 5096

Explore more at

www.ERMAFIRST.com

INDUSTRY - MARKETS

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

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

Tanker Earnings 2014-2015

sold nearly 3 mill barrels per day in

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

Source - BIMCO, Clarksons.

04

TANKEROperator  April 2015

INDUSTRY - MARKETS
Crude Tanker Supply Growth

Source - BIMCO, estimates on Clarksons raw data.

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

all been placed in China. China remains the

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

Looking at product tankers, the LR2

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

World Oil Demand

Source - BIMCO, OECD/IEA.

April 2015

TANKEROperator

strong markets, just six old product tankers

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

05

INDUSTRY - MARKETS

Long Range orders

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

06

in newbuildings, as since the beginning of this

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

current strength in the Aframax market.

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

Source - Gibson Research.

TANKEROperator  April 2015

INDUSTRY - NEWS FOCUS - ISM CODE

The ISMCode from

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

April 2015

TANKEROperator

and safety standards.

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

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

INDUSTRY - NEWS FOCUS - ISM CODE

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

Betwixt and between. (Source: Skuld).

documented history of apparent errors and

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

ensure this is translated into proper adoption,

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

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

TANKEROperator  April 2015

INDUSTRY - NEWS FOCUS - ISM CODE

Fuel consumption
under control

Tankers are by and large well regulated.

section, to demonstrate compliance, is a contentious one. Owners

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

TANKEROperator

Visit KROHNE Marine at Nor-Shipping,

Oslo, 0205 june, hall C, booth C05-21

Are you looking for a reliable and

accurate fuel monitoring system?
EcoMATE from KROHNE Marine
is the answer.
In combination with the highly precise OPTIMASS
Coriolis mass flowmeters, EcoMATE monitors
fuel consumption and/or bunkering over a set time
period or in regular intervals.
Module based system with a high degree of
customisation meets a wide variety of requirements
and needs
Dependable information about the process allows
for significant savings in fuel consumption
Maintenance free operation during a long life
onboard
User-friendly software with automated reporting
functions
Fulfillment of coming requirements from IMO or
other authorities
KROHNE Marine The marine industry is our world.

Please see our

website for more
information.

INDUSTRY - NEWS FOCUS - POOLS

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

10

require pre-notification and prior clearance

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

Pools should not be seen as mergers.

but, for example, joint scheduling or joint

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

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

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

There are areas of concern due to the

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

involved in shoreside projects. In some cases,

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

Guide for Mooring Masters published

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

TANKEROperator

different roles by which a shore representative

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

operators by which the relevant aspects of

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

11

INDUSTRY - MANNING AND TRAINING

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

12

safe manning requirement and/or normal

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

Capt Vaibhav Dalvi of V Ships.

testing times. Everyone understands the

business implications of what a major ethical
violation can do to an organisation. However,

Retention: three seafarer categories

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

their expectation. If all goes well, these

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


TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Future seafarer supply/demand

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

TANKEROperator

has gone up by 2,000, out of an overall

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

recognition and respect will go long way in

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

promotions; involve ship and shore

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

* This article was taken from a presentation

made by By Capt Vaibhav Dalvi of V Ships at
Tanker Operators January Mumbai tanker
conference.
13

INDUSTRY - MANNING AND TRAINING

How to cope with

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

Class will deal with a specific item, while

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

First impressions, as outlined by the ICS,

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

Markusnet Type MS is designed for man overboard recovery

on all types of ships, offshore installations and dams with less
than 40 metre height from water level upto rescue deck or
platform.

Markus MOB boat rescue-net

Markus Scramble-net

Hvaleyrarbraut 3
Hafnarfjordur, IS-220
Iceland
Tel: +354 5651375

Markus Scramble net Type SCN6 is a mobile light weight

scramble-net / cradle recovery system for deck vessels and
offshore installations with either rail or special fastenings inside
bulwark where they are to be used. Less than 1/6 of the weight
of traditional scramble-nets.

Main partners:

Markus MOB boat rescue-net is light, quick fastening, takes

little space, provides easy and fast method to place the
casualty in the net, is soft but firm around the casualty,
provides easy lift by one or two persons and is easy to repack
after use.

UK: Energy Marine Ltd.

Tel: +44 (0)1525 851234
USA: Marine Rescue Technologies Inc.
Tel: +1 772 388 1326

Markusnet Type: MS

sales@markusnet.com - www.MarkusLifenet.com

Man overboard safety and rescue is our concern and speciality

14

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

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

complex using a physics engine for water

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

Robyn Harrigan, ECDIS Ltds training and

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

The COLREGS situation can be continuously changed.

April 2015

TANKEROperator

15

INDUSTRY - MANNING AND TRAINING

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

16

An attentive audience listens to the speakers.

 35 40,000 dwt = 0.045.

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

Gupta gave a breakdown as follows  Crewing costs = 55%

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

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

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

learning, upgrading and re-skilling for those

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

up to 20 scholarships each year, double the

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

THE FOUNDATION FOR SAFETY OF NAVIGATION

AND ENVIRONMENT PROTECTION

SHIP HANDLING RESEARCH

AND TRAINING CENTRE
ILAWA

Shaping the Futurre of

Ta
ank Cleaning
g

Our Training Centre offers you:

SPECIALIZED COURSES IN HANDLING OF

LARGE TANKERS!

Two fully equipped manned models representing

tankers of capacity 150 000 DWT and 280 000 DWT
are available;
STS operations, approaching SBM and FPSO are
included in the programme;
Harbour manoeuvres are supported by manned
models of large ASD and tractor tugs.
For further information please contact:

Ship Handling Research and Training Centre,

Ilawa, Poland
Phone: +46 31 338 7530
E-mail: sales@scanjet.se
www.scanjet.se

April 2015

TANKEROperator

tel./fax: +48 89 648 74 90 or +48 58 341 59 19

e-mail: office@portilawa.com
www.ilawashiphandling.com.pl

17

INDUSTRY - MANNING AND TRAINING

UK cluster cooperation evident in

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

18

 Importance of the here and now - while

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

the Marine and Maritime Institute at the

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

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Fareham College is offering marine engineering courses to school leavers and others.

HEPWORTH MARINE
I N T E R N A T I O N A L

...showing the way

Known around the world for its

performance designed wiper
systems, B Hepworths Fabrication
Division offers a total service in
custom-made fabrications in a wide
range of metals and forms, from
powder coated masts to highly
polished deck equipment.

B Hepworth & Co Ltd

4 Merse Road, North Moons Moat,
Redditch, Worcestershire B98 9HL

T +44 (0)1527 61243

E marine@b-hepworth.com

A member of the B Hepworth Group of companies

April 2015

TANKEROperator

www.b-hepworth.com
19

INDUSTRY - MANNING AND TRAINING

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

Those looking to continue their marine

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

The company offers recruitment and

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

ANCHORS & CH
HAINS

Rotterdam

Known as the largest stockists of ancchors and chains

Shanghai

in the world with approx. 10 000 tonn

nes of brand new
and second hand anchors and chainss in our yards in
Norway,, Sccotland, The Netherlands and China.

We are anchor-chain

20

Tel:
e +47 56 32 68 50

E-mail: sales@sotra.net

Fa
ax: +47 56 32 68 60

Web:

www.sotra.net

Bergen
Abe
erdeen
Nantong

Vindenes, 5363 Aa
agotnes, Norway

TANKEROperator  April 2015

Experience the Power of One

Hardware

T Ph
TracPhone
VIP-series
award-winning SATCOM
systems with built-in network
management

Only one
company
delivers one
integrated
end-to-end
solution.

Content Delivery
IP MobileCast a unique
IP-MobileCast
multicasting service that
delivers content directly
to your vessel

Connectivity
mini VSAT Broadband
mini-VSAT
Broadban
the No. 1 maritime VSAT
network offers global
coverage

Rich Content
Li
Licensed
d news, sports,
t
movies, TV, and music,
plus training, weather,
and charts, delivered
to onboard devices

Connectivity and Content

Giving you the power to deliver the bandwidth your operations demand,
keep your crew happy, and manage your budget... all at the same time.
Learn more about industry-leading VSAT, training, weather, charts, and entertainment at:

kvh.com/powerofone

2015 KVH Industries, Inc.

mini-VSAT Broadband is a service mark of KVH Industries, Inc.

KVH, TracPhone, IP-MobileCast, and the unique light-colored dome with dark contrasting baseplate are trademarks of KVH Industries, Inc.

INDUSTRY - ANTI-PIRACY

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

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

 
 

"

!!!#-#
22

and vessel was reducing, mainly due to the

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

%  %&& ! & $& $ 

*&(%  &! )&%&  !($ 1-3
&! % ! "'   "$!! 
$%%&  &! "&, & %-$
) && &!  + %'$ !  &
 % ! & (%% %'"$%&$'&'$
     $!( +  % !
%" !&% + & $)    
$ +!$) &+$ !& 
 % $, &'% $%% 
!$ ! $ % $% +
%'$$%,
 &&%,  ! %   $)
$%+ '%  & %-$, (%%
!) $% %  &+$'&$
!%& ! %'$&+ + !   %'$&+
$%,  &$ +, &! &$ "!$&!
) !)%   ! !& ( &! )!$$+
!'& *& %( "   "$!(%! %
&!!%!%&$% $ & )& &
$%'&%, ""+ && &+ & (%
"$!&&!  !$ & $), (%%  
$!) &+) &,'& %!
$&'$  &! . !$&+0 )  &+
) & +    &! $!( &

 

!$#'$ &!$$+!)!$%
!!%%!&$
!!&)!$%"$&%
!) 
!&$&! &!*%& % %
!! ! " &  &  
$&! !&!%&!$+! 
&%&'%!$'$%
%"!%
&& &$ +
&&+&$)
!(+&$)
!)$!%& %(' $
!$&!% ' "$!&&%
"$&!&
#'&+"$!'&%
%& $%$214& %%&
&%& %!($1-3&! %!"'

!"&(%%%"$  
&$*%! &%%'""
)&(%%/%%

 -**$'%(+(,),)**+
  &-#
TANKEROperator  April 2015

 
 








International Registries, Inc.

MREJPMEXMSR[MXLXLI1EVWLEPP-WPERHW1EVMXMQI
'SVTSVEXI%HQMRMWXVEXSVW












 



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

Easi-chocks secure door system.

structures in order to create a complete

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

access points, doors and portholes are secured

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

Southeast Asia - procedures and vessel

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

hijacked, according to reports.

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

prepared, both physically, as well as in crew

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

TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS

Gearing up for the

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

26

C ship - one designed to operate in open

water or in ice conditions less severe than
those included in Categories A and B.
To qualify for a certificate, a vessel will
require an assessment, taking into account the

anticipated range of operating conditions and

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

GuardLine Ambient-Cure Tank Coating

for Product and Parcel Tankers
GuardLine ambient-cure tank
coating (+25C/+77F) is
engineered for product and
parcel tankers carrying CPPs,
Bio-Fuels, Veg and Edible
Oils, and similar cargoes. This
coating system has a lower
application cost.

Advanced Polymer Coatings

Avon, Ohio 44011 U.S.A.
+01 440-937-6218 Phone
+01 440-937-5046 Fax
www.adv-polymer.com

TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS

Graphic credit: IMO.

additional safety equipment necessary, to

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

TANKEROperator

Ready for the Arctic shipping build up.

27

TECHNOLOGY - ICE CLASS TANKERS

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

In November 2012, the MSC adopted a new

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

grow, despite the apparent stand-off between

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

Oil spills in ice covered waters

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

28

February to film in the harsh climate and

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

research into the fate and behaviour of oil in

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


TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS

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

TANKEROperator

necessary legal and technical expertise to take

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

importance of appropriate fees for services.

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

29

TECHNOLOGY - SHIP EFFICIENCY

Reducing costs and

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

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

Graph speed profiles.

dot on the graph above represents one leg

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

to ensure a successful outcome.

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

TANKEROperator  April 2015

TECHNOLOGY - SHIP EFFICIENCY

Bunkering management.

easily track fuel levels.

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

most effective way to improve this within the

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

is different and every company has different

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

Enirams Henrik Lano.

*This article was written by Henrik Lano, who

is Enirams director of analytics and a former
management consultant. He has had broad
experience gained from various industries in
transforming data and analytics into
operational insight and improvements. He is
responsible for developing Enirams analytics
services to drive energy efficiency and savings.
Active route management.

April 2015

TANKEROperator

31

TECHNOLOGY - SHIP EFFICIENCY

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

32

blade continuously increases from the boss to

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

The AHR is calculated by dividing the hull

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

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING

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

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

could also be a seasonal factor, due to low

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

interpretations of the same fuel.

Testing in a credited laboratory could give
one answer, but the same test in another
laboratory could give a different result, due to
the chemistry involved giving a range of
results in different circumstances.
He said that often it was a case of the ISO
Standard versus MARPOL, which can lead to
ambiguity due to conflicting parameters.
This breeds uncertainty and it hasnt been
addressed properly, Hall said. He pointed to
the high costs associated with de-bunkering
and the commercial issues that could arise
from such an operation.
Partnerships
IBIA has what it calls a twin track approach
to work in partnership with stakeholders. One
example is a ports charter. Thus far
Singapore, Rotterdam, Antwerp and Gibraltar
have joined, but Hall called for more ports to
sign up.
The association has written a questionnaire
for the IMO correspondence group on fuel
quality. Proposals were put to both MEPC 66
and 67 to the effect that the fuel should
contain nothing that wasnt fit for purpose
and a paper will be submitted to MEPC 68.
He argued that the Note of Protest should
be used to look at why a stem went wrong
and to get to the root cause of any problems
that had occurred. Hall thought that Port State
Control could undertake this task as a rogue
delivery will cause a supplier and the port a
bad reputation.
Hall also warned that refineries would need
five years to reach the specification for the
2020/2025 cap. He said that the fuel
characteristics were all over the place- a
warning for 2020/2025.
He argued by saying that the industry was
on a learning curve, which will take time. TO

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING

Low sulphur
solutions, fresh
propulsion problems
Distillate fuels, despite their premium pricing, have rapidly become the default choice for
the majority of owners and operators now facing the 0.1% ECA sulphur cap*.
istillates, such as marine gas oil
(MGO) are arguably the most
convenient low sulphur solution
for existing ECA bound vessels.
As, unlike abatement technologies or LNG
power, they require no major up-front
investment nor costly modification or
retrofitting of the vessel.
So whats the problem? On paper there isnt
one, as just like less expensive residual fuels,
distillates need to meet the owners predetermined specifications and the latest ISO
8217: 2012 standards.
Unfortunately, issues have a habit of
showing themselves in the engine room, rather
than a meeting room, and what looked good on
a spec sheet may in fact end up blocking fuel
lines, damaging fuel pumps and injectors and
even contribute to the loss of engine power
(LOP).
A quick glance at the US Coast Guards
2014 statistics for loss of propulsion incidents
in California will illustrate a worrying trend.
Of the 93 LOP incidents, 15 were directly
related to fuel switch overs. We wait anxiously
for the figures from the freshly regulated
European ECAs.
But, before you reach for that exhaust gas
cleaner spec sheet, the problems, which can
occur when using distillate fuels, can easily be
avoided with a little help, according to Jonas
Ostlund, product marketing manager marine
chemicals, Wilhelmsen Ships Service (WSS).
If you are aware of the fuels basic properties
and limitations, and are prepared to treat your
distillates systematically in order to manage
and maximise their performance, they pose
few challenges.
Typically, issues with distillate fuels are
distinct from those of their residual relations,
and they revolve around lubricity and
degradation.
Both the makeup of the source crude oil,

April 2015

TANKEROperator

and the refining processes that oil undergoes,

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

customers working within the constraints of

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

TECHNOLOGY - BUNKERING

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

0.8
0.7

Mean WSD, mm

0.6
0.5
0.4
0.3
0.2
0.1
0
0

50
100
150
DieselPower Lubricity treat rate, mg/l

200

HFRR 60C test results

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

WSS Jonas Ostlund.

TANKEROperator  April 2015

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

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

*This article was taken from a paper written by Jonas Ostlund,

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

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

Go to
G
t www.lr
l .org/training
/t i i or contact
t t mts@lr
t @l .org
Working together
for a safer world
Lloyds Register and variants of it are trading names of Lloyds Register Group Limited, its subsidiaries and affliates.
Copyright Lloyds Register Group Limited 2015. A member of the Lloyds Register group.

April 2015

TANKEROperator

37

TECHNOLOGY - BUNKERING

AWT launches dual

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

38

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

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

hire rate have been entered into the system,

BVS will automatically do a least-cost dual
speed optimisation if the vessel encounters an
ECA area during the voyage. If the fuel prices
or the daily hire rate are missing, or the route
doesnt encounter an ECA area, BVS will
calculate the best least time optimisation.
AWT has a large database containing several
million observations of speed, weather
conditions, consumption rates, and more from
ships of all types and sizes. An experienced
team of analysts, whose backgrounds are in
oceanography and maritime engineering, have
developed a model that is able to predict speed
loss due to weather and the associated
consumption rates.
Using the reported information from the
vessel along with AWTs analysis of the
current, wind, sea heights, swell height and
period and relative directions, AWT can
accurately calculate the calm sea speed for
each noon report.
As this data accumulates, regression analysis
yields a specific consumption (vs calm sea
speed) curve for each vessel from which the

TANKEROperator  April 2015

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

In another move, AWT is to collaborate with

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

EUROPES LAR
RGEST
G
DR
RY DOCK

 ISO 9001

management through Veslink and IMOS.

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


ISO 14001


OHSAS 18001

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

Harland and Wolf

o ff
Heavy Industrries Ltd
Queens Island
Queen
Island, Belfast
BT3 9DU, North
hern Ireland

April 2015

TANKEROperator

T: +44 (0) 2890 4584

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

39

TECHNOLOGY - TANK SERVICING

Emerson introduces heavy fuel oil viscosity

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

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

Chemical carrier newbuildings fitted with

advanced tank coatings
Navig8, is applying the patented
Interline 9001 to the tanks of a
series of 18 chemical tankers
currently under construction at
Hyundai Mipo.
The cargo tank coating from AkzoNobels
International marine coating product range
forms part of Navig8s ambition to be the
leading supplier of sophisticated large chemical
tanker tonnage with maximum earning
potential and minimum cost base.
Navig8 selected Interline 9001 to deliver
significant operational benefits for the 37,000
dwt vessels, providing increased vessel
capacity and maximum operational flexibility
required to meet increased market demand for
large volume contract of affreightment.
In addition to the coatings at Hyundai Mipo
Dockyard, Navig8 has selected Interline 9001
for a further four 49,000 dwt MRs under
construction at STX shipyard.
40

Interline 9001 is a bimodal epoxy coating for

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

helps to enhance operator environmental

profile.
Andy Hopkinson, Internationals business
development manager for the marine coatings
business said: We are delighted to be working
so closely with Navig8 on this significant
project which signals strongly the market need
to adopt new technology and react to the ever
tightening cleaning requirements and need for
maximum earnings with minimum cost.
Contract activity around Interline 9001 has
risen significantly and Navig8s commitment
and confidence in the product will lead the way
for many owners to reach the same conclusion.
The benefits of the bimodal epoxy
technology certainly suits Navig8s operational
model where capacity optimisation through
reduced cleaning time and carriage flexibility
combined with maximum protection for
customers sophisticated cargoes is high on the
agenda, he said.
TO

TANKEROperator  April 2015

Marine & Offshore Fluid Handling Solutions

Inert Gas based Ballast Water Treatment for Tankers

No disruption to ballasting
or de-ballasting

No change to ballast pumps,

pipes, or power generation

Ideal for new build or retro fit

The only in-tank, in-voyage BWT system

THE FIRST BWT SYSTEM TO BE
SUCCESSFULLY RETROFITTED TO A VLCC

Email: sales@coldharbourmarine.com
www.coldharbourmarine.com
Tel: +44 (0) 1629 888386