Ocean Carriers are Doing Some Things Right to Secure Profit

15 Oct 13 - 10:22

Drewry Maritime's latest annual Container Market Annual Review and Forecast 2013/14 highlights that while there is a good deal of excessive market behaviour resulting in weak freight rates, ocean carriers are getting half of it right.

With over 25 ULCVs (ships of at least 10,000 teu) delivered so far this year, carriers have coped pretty well with deployment of tonnage in the main East-West trades. As of 1 October, we estimate that headhaul capacity in the three main East-West routes has increased by only 2.3% year-on-year. However, there is still a structural over-capacity, and Asia to North Europe spot rates have fallen in 33 of the 39 weeks so far this year.

Given the weak fundamentals, carriers have been much more focused on their costs in order to achieve any kind of decent profitability. We calculate that the industry will save $5.5 billion on fuel this year, partly because of lower physical market prices, but also due to network changes, slow steaming, the introduction of more fuel-efficient ships and bunkering in Russia. The importance of bunker savings was clearly demonstrated by Maersk in its surprisingly strong second-quarter financials this year.

Furthermore, there now seem to be considerable gaps between the best and worst performing lines in the industry. Part of this may well be down to cost savings and it could be that some of the operators with a higher percentage of ULCVs in their fleets are now starting to reap the true benefits of their economies of scale.

Read full analysis at Drewry Maritime Research

Recommended Practice for LNG bunkering

15 Oct 13 - 13:52

DNV GL launches recommendations for safe and efficient LNG bunkering

One of the key hurdles to the increased global use of ships fuelled by Liquefied Natural Gas (LNG) is the lack of harmonisation of bunkering operations. 

"DNV GL is therefore today launching a Recommended Practice for authorities, LNG bunker suppliers and ship operators which provides guidance on how LNG bunkering can be undertaken in a safe and efficient manner," says Lars Petter Blikom, DNV GL's LNG director.

LNG-fuelled ships have logged over 130 ship-years of operation in Norwegian waters and LNG's attractiveness and stability as a fuel have been thoroughly demonstrated. Globally too, operators, suppliers and regulators have gained significant experience in all aspects of LNG-fuelled ship operations in recent years. However, the process for developing the required infrastructure has not been standardised - leaving the industry with many open questions.

Currently, 83 LNG-fuelled ships are in operation or on order worldwide. These range from passenger ferries, Coast Guard ships and cargo vessels to tankers and platform supply vessels. Estimates put the global LNG-fuelled fleet at 3,200 by the year 2025. With the EU poised to invest in helping to equip 139 seaports and inland ports with LNG bunker stations by 2025, the time was ripe for standardising development processes, designs and operations.

"An ISO committee brought together the experience and know-how of more than 30 industry professionals in 2011 and its draft guideline was published in June 2013. The ISO guideline defines the overall philosophies of designs and operations relevant to LNG bunkering and suggests a list of 24 functional requirements. However, it is not intended to be concrete and descriptive about how to achieve the requirements' objectives," states Mr Blikom.

He explains that DNV GL therefore sets out to put its own knowledge and experience of how to meet the ISO guideline's requirements into a more practical format. This is now available in the form of a Recommended Practice (RP) which will serve as a practical guide for authorities, LNG bunker suppliers and ship operators on developing design solutions and operating procedures to undertake LNG bunkering safely and efficiently. The RP document is now open for comments during an external six-week consultation period. Subsequently, DNV will update the document based on the input received by the industry, followed by formal publication.

Jan Tellkamp, project manager for the RP, describes the document's philosophy: "The development of the RP is based on extensive experience of LNG bunkering-related projects over the past decade, as well as on knowledge that can be drawn from other relevant industries, in particular from the large-scale LNG industry. 

The RP covers all modes of bunkering a ship with LNG and provides guidance on how to work on the three key topics suggested by the ISO guideline - planning, design and operation; safety management systems; and risk assessment. The concept of 'layers of defence' is detailed on both the equipment and procedural levels."

Blikom concludes that: "These documents, both the ISO guideline and DNV GL RP, represent significant steps forward in taking operational and technical risk off the table for operators looking at investing in LNG-fuelled ships or LNG bunkering terminals. Our aim is to lead the way in meeting the needs of this new, innovative and growing sector. The Bunkering RP is one of our very important deliveries."

Source: DNV

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Find more information for LNG bunkering in the Safety4Sea articles

Standarization of LNG bunkering well under way

SIGTTO guidance for LNG carriers transiting Panama Canal

Port of Antwerp gets ready for safe LNG bunkering

ICMM , Intercargo to focus on IMSBC Code amendments

15 Oct 13 - 13:35

Discussions focused on the effects of changes to IMO codes

 

A workshop organized by ICMM (International Council on Mining & Metals) and Intercargo focused on recent amendments to the MARPOL Convention and IMSBC Code, both of which now include hazard identification criteria that are relevant to mineral products such as ore concentrates.

Participants heard from the IMO secretariat on the important role the organization plays while speakers from port authorities, shipping companies and the mining industry outlined the practical requirements for implementation and the way that various groups are working toward implementation. A number of areas of concern or issues future activity were identified including:

• the desire for greater awareness of changes in IMO codes among all stakeholders
• the availability of adequate port reception facilities
• the potential for cargo classification to become list-based rather than the responsibility of the shipper to assess.

Discussions concluded with a review of the state of the science for assessing concentrates and an overview of industry efforts that are underway through a number of metals commodity associations.

Bringing together these different industry constituencies enabled a discussion of the roles and responsibilities for all participants and enabled a frank and open exchange on challenging issues.

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Find further information on IMSBC Code amendments at the following articles:

• Carrying solid bulk cargoes safely
• Reminder on the Amendments to the International Maritime Solid Bulk Cargoes (IMSBC) Code
• IMSBC Code amendments re Cargoes which may Liquefy

• IMO DSC Sub-Committee Outcome

Vancouver Shipyards to Build the Joint Support Ships in 2016

14 Oct 13 - 12:07

National Shipbuilding Procurement Strategy Secretariat Announces

 

Image credti: Seaspan

The National Shipbuilding Procurement Strategy (NSPS) Secretariat has announced that Vancouver Shipyards will commence construction on the Joint Support Ships, followed by the Polar Icebreaker, under the NSPS non-combat package. It is expected that construction will begin in late 2016.

The decision was based on a comprehensive analysis that included the readiness of each ship's design, schedule optimization, project costs, and risks related to the timing of ship delivery. The analysis considered operational impacts such as gaps in program capability, and possible ship life extension or refit costs for existing vessels.

The NSPS Secretariat also sought input from Vancouver Shipyards, as well as First Marine International and KPMG as expert third parties, to ensure the best advice was considered in the analysis.

The decision ensures that Canadian shipbuilding capacity is sustainable and does not create the boom and bust cycles that characterized previous shipbuilding projects. Through the NSPS, the Government of Canada has committed to building these ships in Canada, and in doing so, it is re-establishing an industry that is going to bring jobs and prosperity to many communities across the country.

As a result of this decision, the Canadian Coast Guard is taking the necessary measures to keep the CCGS Louis S. St-Laurent in service until the Polar Icebreaker is delivered.

Update on other NSPS activities Irving Shipbuilding and Vancouver Shipyards are working on their respectively announced $300-million and $200-million infrastructure upgrades. Irving is continuing its work on the first two tasks of the Arctic Offshore Patrol Ships definition contract. The next two tasks are expected to be awarded in January 2014. The project is on track for steel to be cut in 2015. The procurement approach for the project definition phase of the Canadian Surface Combatants will be determined this fall. Vancouver Shipyards is continuing its construction-engineering work on the Offshore Fisheries Science Vessels (OFSV). Construction of the vessels is expected to begin in late 2014. Delivery of the first vessel is scheduled for 2016. Construction of the OFSV will be immediately followed by construction of the Offshore Oceanographic Science Vessel, which is scheduled to begin in 2016. Its delivery is expected in 2017.

The NSPS is now in the fourth phase of a five-phase initiative, with the designs of the initial set of ships being finalized and the shipyards undertaking the work required to be able to build Canada's ships efficiently. The Government of Canada is following through on its commitment to build ships in Canada.

The NSPS will mean long-term jobs and economic growth for the country, stability for the industry, and vital equipment for the men and women in the Royal Canadian Navy and Canadian Coast Guard.

ITS Libeccio Takes Over From ITS Zeffiro In The EU Naval Force

14 Oct 13 - 10:28

EUNAVFOR continues its mission to enhance maritime security 

 

On 6th of October, whilst in the Indian Ocean ITS Zeffiro handed over the Italian commitment to the European Union Naval Force (EU NAVFOR) Somalia Operation Atalanta to ITS Libeccio. The counter-piracy duties were handed over in Djibouti from Commander Marco Antoniazzi (ITS Zeffiro) to his successor Commander Stefano Calvetti (ITS Libeccio).

ITS Libeccio participated in Operation Atalanta in 2010 and was involved in the arrest of 9 suspected pirates and several disruptions. Image shows conductiong an escort of a merchant ship carrying humanitarian aid (Photo Credti: EUNAVFOR)

During their four months deployment within Operation Atalanta since 6th June, ITS Zeffiro has travelled approximately 27,000 nautical miles in the Gulf of Aden and the western Indian Ocean. The frigate patrolled in an area approximately 1.5 times the size of Europe. During their mission the Italian frigate provided escorts to four vessels of the World Food Programme (WFP), and conducted four friendly approaches with dhows and skiffs.

This is not the first EU NAVFOR Somalia Operation for ITS Libeccio. The Italian frigate participated in Operation Atalanta in 2010, and was involved in the arrest of 9 suspected pirates and several disruptions. Commander Calvetti stated following the handover, "As Commanding Officer of the Italian Frigate Libeccio and on behalf of my crew, we are proud to join Operation Atalanta, which has achieved the superb result of highly reducing piracy attacks in the Indian Ocean. My crew and I are ready to start this adventure with the other European Union ships to help fight the piracy phenomenon."

Following the handover ceremony the ITS Zeffiro set sail on a return journey to Taranto harbour.

Coordinated rescue of stricken motor vessel

14 Oct 13 - 10:07

An International Recognised Transit Corridor (IRTC) has been established to ensure security 

 

Within the Gulf of Aden, piracy is a significant threat to the shipping community and a stricken Motor Vessel (MV) would make easy prey. When a MV recently suffered engine failure and lost all propulsion in the region, a Japanese maritime patrol aircraft and warships from South Korea, China, India, Italy and Japan were quick to provide coordinated assistance and protection to avoid any risk to the vessel and her crew.

To ensure merchant ships sail through this region safely, an International Recognised Transit Corridor (IRTC) has been established under the protection of warships from Combined Maritime Forces (CMF), EU, NATO and other independent deployers from India, China, Russia, South Korea and Japan.

The stricken motor vessel at sea in the Gulf of Aden (Image credit: Combined Maritime Forces)

ROKS Wang Geon as the closest warship to the stricken MV was first on the scene.  Roks Wang Geon is currently operating under the Combined Task Force (CTF) 151, whose mission is to deter, disrupt and thwart acts of piracy.

This multinational task force conducts counter-piracy operations in and around the Gulf of Aden, Arabian Sea, Indian Ocean and the Red Sea and would always respond to environmental and humanitarian crises including Safety of Life at Sea emergencies.

ROKS Wang Geon provided maritime protection whilst technical specialists from her crew carried out repairs to the defective engine.  Once able to move under her own power, albeit at a slower pace than normal, the MV was escorted safely through the IRTC.  Escort duties where handed over to ITS Zeffiro, who later handed over the responsibility to PLAN Hengshui, who escorted the MV safely into the port of Aden, Yemen.

Captain Young-Hee Han, Commanding Officer ROKS Wang Geon, said, "With regard to the support we were able to offer the MV, it was the active collaboration and information sharing amongst CMF and other coalition forces that coordinated the effort to escort the motor vessel to her next destination. I believe that this occasion served as an opportunity to strengthen further the friendly relations amongst coalition forces operating in this maritime domain."

The Commanding Officer from the MV said, "All my crew would like to thank you for your swift response, best intentions and hugely appreciated escort and also the excellent support whilst we were repairing the engine."

He added "We take this opportunity to thank you for your assistance during the incident."

New EU Project to Improve Maritime Regulations Εfficiency

03 Oct 13 - 11:51

e-Compliance to facilitate integration in regulatory compliance

A new three year European Research Project, partly funded by the EU has been launched to help increase efficiencies in regulation compliance and enforcement for the maritime sector.

e-Compliance will facilitate tighter integration and co-operation in the fragmented field of regulatory compliance. It will closely align with the EU e-Maritime initiative of which a key priority is supporting authorities and shipping operators to collaborate electronically in regulatory information management.

The maritime sector is, by necessity, heavily regulated. International, EU and national authorities create large numbers of rules and regulations; the long lifetime of ships and the different phases of their operation add to the complexity. As a result, practitioners who need to enforce or comply with regulations are often unsure as to which rules apply for a given vessel in a given situation.

Building on the success of other EU projects such as FLAGSHIP, e-Compliance will look at creating a model for managing maritime regulations digitally and thus help to harmonise these regulations. The project's consortium comprises representatives of the three main stakeholder groups involved: classification societies (who create class rules), port state control (who enforce regulations) and ships (who need to comply with regulations). This seamless co-operation between the different stakeholder groups will improve the effectiveness of regulations and reduce the burden on practitioners who work with maritime regulations on a daily basis.

Current Regulation Complexity

Philipp Lohrmann, Project Manager for e-Compliance comments:

"Presently, there are numerous disparate initiatives and projects that address specific aspects of the regulatory domain. The e-Compliance project will bring these different approaches together, using their most promising aspects in order to increase coherence and efficiency in the world of maritime regulations."

Specific activities within this three year R&D project will include:

Establishment of a cooperation model between regulation setting and enforcement authorities, both for port state control and IMO regulations, for modelling and interpreting regulations and ensuring harmonisation across national and organisational boundaries. Demonstration of automated compliance management by: Modelling and delivery of regulations in electronic format Harmonised e-Services for more effective and co-ordinated enforcement controls and inspections e-Services in support of class requirements, particularly on surveys and for ship risk management in upgraded e-Maritime applications Evaluation of the practical implementation of the above in representative networks and the provision of recommendations for e-Maritime policies.

e-Compliance consists of 10 partners, all of which bring their own areas of knowledge and experience of working in the maritime space.

They include: BMT Group Ltd, Det Norske Veritas (DNV), Danaos Shipping Co Ltd, INLECOM Systems, The Netherlands Organisation for Applied Scientific Research (TNO), TEMIS, Acciona Infraestructuras, PORTIC Barcelona, Norsk Marinteknisk Forskningsinstitutt AS (MARINTEK) and the Maritime Administration of Latvia.

Source: BMT

World’s Fastest Ship christened in Argentina

03 Oct 13 - 10:47

Named Francisco by Argentina’s President

The World's Fastest Ship, was christened by in Buenos Aires the President of Argentina, Christina Fernandez de Kirchner. The 99 metre vessel, which was named Francisco in honour of the Argentine born Pope, is the first large dual fuel high speed Ro-Ro to use LNG as its primary fuel.

The ship, Francisco, built in Hobart by Incat Tasmania Pty Ltd and delivered recently to South American company Buquebus,commences service on the River Plate (Rio Plato) between Buenos Aires and Montevideo.

Francisco has capacity for 1,000 persons and 150 cars. Australian ferry builder Incat Tasmania's world first high speed dual-fuel vehicle and passenger ferry is according to Incat, the world's fastest ship having achieved a lightship speed of 58.1 knots - (107.6 kilometres an hour).

Moreover, according to Incat there's a few speed boats that could surpass 58 knots but not carrying 1000 passengers and 150 cars, and a large duty free shop on board.

The vessel's high speed can be attributed to the combination of Incat wave piercing catamaran design, the use of lightweight, strong marine grade aluminium, and the power produced by the two 22MW GE LM2500 gas turbines driving Wartsila LJX 1720 SR waterjets.

Incat Chairman, Robert Clifford, currently in Europe, said "Incat is delighted with the efficiency of the design and sure that our customer, Buquebus, are thrilled with the results, enabling the ferry to compete with airline traffic on the River Plate route."

Buquebus has clearly demonstrated their preference for Incat technology over a twenty year period and Francisco (hull 069) is the eighth Incat vessel to be operated by Buquebus and their associated companies. It is the largest catamaran they have operated, the world's first dual fuel high speed ferry to operate on LNG as its primary fuel, and the fastest, environmentally cleanest, most efficient, high speed ferry in the world.

World's fastest ship, named Fransisco in Argentina

(Image Credit: Incat)

Incat's High Speed Record

The fastest previous vessel built by Incat was Juan Patricio, delivered also to Buquebus, with a top speed at 53.8 knots. Juan Patricio was delivered in 1996 and remains in commercial service.

Francisco is the fourth Incat built vessel with service speed over 50 knots.

The past three consecutive winners of the Hales Trophy, the Transatlantic Blue Riband record for commercial passenger ships, were built by Incat. The average speed over the 3 day (unrefueled) voyage of Incat hull 049 was 41.284 knots.

Incat has built 25 High Speed Craft over 5000 gross tonnes with a top speed in excess of 45 knots.

Read more about world's fastest ship Francisco in Safety4Sea articles

Wartsila waterjets propel world's fastest ferry The World 's Fastest Ship is dual fueled World-first Incat LNG ship