MARITIME INTERTANKO HELLENIC MEDITERRANEAN PANEL Pagalos.pdf · MARITIME INTERTANKO HELLENIC...

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DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014 02.10.2014 A.Pagalos MARITIME INTERTANKO HELLENIC MEDITERRANEAN PANEL 1 What is on the Regulatory Agenda and various market/technical issues related to tankers

Transcript of MARITIME INTERTANKO HELLENIC MEDITERRANEAN PANEL Pagalos.pdf · MARITIME INTERTANKO HELLENIC...

DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014

02.10.2014

A.Pagalos

MARITIME

INTERTANKO HELLENIC MEDITERRANEAN PANEL

1

What is on the Regulatory Agenda

and various market/technical issues related to tankers

DNV GL © 2014 02.10.2014

Agenda

What is on the Regulatory Agenda wrt new requirements coming into force for

tankers

A few Technical Issues related to building of new tankers

– Testing procedures of cargo tanks during construction

– Openings on superstructures/deckhouses walls facing cargo area

– Practical consequences of HCSR implementation in comparison with CSR

– Findings after a year in service (DNVGL fleet)

Brief market outlook for tankers

PSC performance of tankers (global fleet)

2

DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014

02.10.2014

A.Pagalos

MARITIME

What's on the regulatory agenda wrt new requirements coming into force for tankers

3

Including news from 66th session of MEPC and

93rd session of MSC

DNV GL © 2014 02.10.2014

International Maritime Law – An overview

4

DNV GL © 2014 02.10.2014

From 2014 Committees and Sub-committees of IMO

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Assembly

Council

Maritime Safety Committee (MSC)

The Marine Environment Protection Committee (MEPC)

Legal Committee (LC)

Technical Co-operation Committee (TCC)

Ship Systems and Equipment (SSE)

Pollution Prevention and Response (PPR)

Ship Design and Construction (SDC)

Carriage of Cargoes and Containers (CCC)

Navigation, Communications, Search and Rescue (NCSR)

Implementation of IMO Instruments (III)

Human Element, Training and Watchkeeping (HTW)

Facilitation Committee

OVERVIEW

DNV GL © 2014 02.10.2014

Some significant resolutions adopted by 28th IMO Assembly

A.1067(28) Framework and procedures for the IMO member state audit scheme

A.1068(28) Transition from the voluntary IMO member state audit scheme to the IMO member state audit scheme

A.1070(28) IMO Instruments Implementation Code (III Code)

A.1071(28) Revised guidelines on the implementation of the international safety management (ISM) Code by administrations

A.1072(28) Revised guidelines for a structure of an integrated system of contingency planning for shipboard emergencies

A.1073(28) Recommendation on the use of national tonnage in applying international conventions

A.1076(28) Amendments to the survey guidelines under the harmonized system of survey and certification (HSSC), 2011

A.1078(28) IMO ship identification number scheme

A.1079(28) Recommendations for the training and certification of personnel on mobile offshore units (MOUs)

A.1086(28) Entry into force and implementation of the 2012 Cape Town agreement

A.1087(28) 2013 Guidelines for the designation of special areas under MARPOL

A.1088(28) Application of the International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004 (See under Ballast Water Management)

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Chapter I General Provisions

Chapter II-1 Construction - Subdivision and stability, machinery and electrical installations

Chapter II-2 Fire protection, fire detection and fire extinction

Chapter III Life-saving appliances and arrangements Chapter IV Radiocommunications Chapter V Safety of navigation Chapter VI Carriage of Cargoes Chapter VII Carriage of dangerous goods Chapter VIII Nuclear ships Chapter IX Management for the Safe Operation of Ships Chapter X Safety measures for high-speed craft Chapter XI-1 Special measures to enhance maritime safety Chapter XI-2 Special measures to enhance maritime

security Chapter XII Additional safety measures for bulk carriers Chapter XIII Verification of compliance

SOLAS

DNV GL © 2014 02.10.2014

GBS Rule Verification - IACS Common Structural Rules

8

Classification Societies which are

members of IACS submitted their Rules to

IMO for verification of conformity to GBS

in accordance with res. MSC.296(87)

by the end of 2013

The Harmonised Common Structural

Rules adopted 18 December 2013

by IACS Council

Entry into force 1 July 2015

SOLAS Ch. II-1

DNV GL © 2014 02.10.2014

Corrosion protection of tanks of crude oil tankers

A new Regulation II-1/3-11 on Corrosion protection of cargo oil tanks of

crude oil tankers has been added requiring all cargo oil tanks of crude oil

tankers of 5000 tonnes deadweight and above to be coated during the

construction in accordance with the Performance standard for protective

coatings for cargo oil tanks of crude oil tankers, adopted by resolution

MSC.288(87), or be protected by alternative means of corrosion

protection or utilization of corrosion resistance material in accordance

with the Performance standard for alternative means of corrosion

protection for cargo oil tanks of crude oil tankers, adopted by resolution

MSC.289(87).

9 SOLAS Ch. II-1

MSC 91 Updated references from res. A.744(18)

to 2011 ESP Code

This requirement applies for ships with building

contract dated on or after 1 January 2013, keel

laying 1 July 2013 or delivery after

1 January 2016

DNV GL © 2014 02.10.2014

PSPC-COT Area of application or alternative solution

Area of

application

Alternative

solution –

corrosion

resistant steel

Combination of

coating and

corrosion

resistant steel

10 SOLAS Ch. II-1

DNV GL © 2014 02.10.2014

MSC 93 SOLAS Chapter II-1 amendments

Steering gear

Regulation II-1/29 has been

amended to accept that all ships

irrespective of date of construction

that cannot be ballasted during sea

trials so that their rudder is fully

submerged, may demonstrate

compliance with requirements for

main and emergency steering gear

with alternative methods

MSC.1/Circ.1482 invites for early

implementation

In force from 1 January 2016

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SOLAS Ch. II-1

DNV GL © 2014 02.10.2014

MSC 91 SOLAS Chapter II-2 amendments

Chapter II-2, Regulation 10.10 – Fire fighting

Paragraph 10 Fire-fighters outfit has been amended

with reference to the FSS Code regarding self-

contained breathing apparatus that will have to

comply with the revised FSS Code requirements for

breathing apparatus latest by 1 July 2019

This applies to all ships

Also, a new subparagraph 10.4 Fire-fighter’s

communication has been added

Two two-way portable radiotelephone apparatus of an

explosion proof or intrinsically safe type have to be

provided for each fire parties (as in Reg. III/37) not

later than first survey after 1 July 2018

12 SOLAS Ch. II-2

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MSC 93 SOLAS Chapter II-2 amendments

Inert gas systems and operations

Regulation II-2/4.5.5 has been replaced by a requirement for fixed

installed inert gas systems on oil and chemical tankers of 8000 dwt and

upwards constructed on or after 1 January 2016

Small chemical tankers with tank capacities of 3000 m³ or less are

exempted from the requirement

A new sub-paragraph has been added to Regulation II-2/16

introducing new requirements for operations of inert gas-systems

In force from 1 January 2016

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SOLAS Ch. II-2

DNV GL © 2014 02.10.2014

MSC 93 SOLAS Chapter II-2 amendments

Means of escape from machinery spaces

Regulation II-2/13.4 (Means of escape

from machinery spaces and workshops and

control rooms within machinery spaces) has

been amended to require a continuous fire

shelter for such means of escape on new

passenger and cargo ships

The revised regulation also covers Inclined

ladders and stairways in such means of

escape

In force from 1 January 2016

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SOLAS Ch. II-2

DNV GL © 2014 02.10.2014

Lifeboat release and retrieval systems – On-load release mechanism

IMO has adopted new rules in order to enhance lifeboat safety. The new

requirements are set out in the LSA Code, paragraphs 4.4.7.6.2 to 4.4.7.6.6.

(Res. MSC.320(89), while prototype test requirements are contained in Res.

MSC.321(89)).

For new buildings, the requirements apply to ships with keel laid after 1 January

2013

Vessels in operation is to comply with the retroactive requirement given in the

amended SOLAS Reg. III/1.5 (Res. MSC.317(89)) by the vessel’s first dry docking

after 1 July 2014 (by 1 July 2019 at the latest). This meant that all existing on-

load release hooks is to evaluated for compliance with the LSA Code paragraphs

4.4.7.6.4 to 4.4.7.6.6. This was to be initiated by the hook manufacturer, and

compliant hooks were added to a “whitelist” kept by IMO. Application for

whitelisting was only possible up to 1 July 2013.

Ships provided with whitelisted hooks must have a one-time follow-up overhaul

examination carried out by the hook manufacturer. The manufacturer shall then

issue a factual statement to be kept on board.

If the hook is not on the whitelist, it needs to be replaced.

15 SOLAS Ch. III/LSA Code

DNV GL © 2014 02.10.2014

Procedures for replacement of lifeboat release and retrieval systems with on-load release capability

Ship owner (Manufacturer may also do this on behalf of Owner) selects replacement

equipment and initiate the following:

Design approval

Following information is submitted for review and approval:

Type approval and product certificates for existing lifeboat.

Proposed replacement equipment including TA/MED Certificate stating compliance

with IMO Res. MSC.320(89) and IMO Res. MSC.321(89).

Engineering analysis of the replacement installation including:

— drawings of the original lifeboat release and retrieval system arrangement

— detailed drawings showing clearly the proposed changes

— if in accordance with submitted drawings forces are to be changed or fixed

structural connections of the release mechanism are changed, then calculation of

static forces from lifeboat release and retrieval system into lifeboat structure, are

required to be submitted also.

Amended operating and training manuals.

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Procedures for replacement of lifeboat release and retrieval systems with on-load release capability (cont.)

Installation

An approval letter and copy of approved drawings shall be used during

installation and testing and retained on board.

The installation work should be carried out by the Manufacturer or by one of their

representatives and shall be witnessed by DNV surveyor.

Updated and valid operating and safety instructions shall be posted at the

operating position and adjacent to the lifeboat release and retrieval system(s).

Post installation testing

1.1 load and simultaneous release test according to resolution MSC.81(70), part

2, paragraph 5.3.1, or an equivalent;

load test according to resolution MSC.81(70), part 2, paragraph 5.3.4, as

amended by resolution MSC.226(82), if the fixed structural connections of the

release mechanism of the lifeboat is modified;

if the lifeboat is also a rescue boat and/or is installed on a cargo ship of 20,000

gross tonnage or above, the 5 knots installation test shall be carried out, in

accordance with resolution MSC.81(70), part 2, paragraph 5.4.

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Safety of Navigation – ECDIS

Application for tankers :

– tankers of 3,000 gross tonnage and upwards

constructed on or after 1 July 2012

– tankers of 3,000 gross tonnage and upwards

constructed before 1 July 2012, not later than the

first survey on or after 1 July 2015Use of

electronic navigational charts will probably

reduce the frequency of groundings by more than

one third

It is expected that ECDIS will reduce the risks

related to several generic accident scenarios such

as groundings, collision and contact

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SOLAS Ch. V

Mandatory Electronic Chart Display and Information System (ECDIS) for different ship types and sized constructed in the period 2012 to 2018 (SOLAS Reg. V/19 amend. by MSC.282(86))

From 1 January 2011 ECDIS is accepted as meeting the chart and nautical publication carriage requirements

DNV GL © 2014 02.10.2014

Safety of Navigation – ECDIS

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SOLAS Ch. V

Resource: www.admiralty.co.uk

DNV GL © 2014 02.10.2014

MSC 92 - Amendments to SOLAS Ch. V, res. MSC.350(92)

SOLAS Reg. V/19, regarding application of

requirements for bridge navigational watch alarm

system (BNWAS) was amended to clarify that:

BNWAS is applicable to all ships, also existing

ships built before 1 July 2002 with a phase-in

implementation for ships constructed before 1

July 2002

exemptions could be given for ships which

would be taken permanently out of service

within two years after the implementation date

Phase in period is between 1st survey after 1

January 2016 and 1 January 2018, depending on

ship type and size

In force from 1 January 2015

20 SOLAS Ch. V

DNV GL © 2014 02.10.2014

Revised performance standards for VDR

VDRs installed on or after 1 July 2014 are to comply with MSC.333(90) revised

standards.

Major revised requirements are:

- Requiring 3 different recording mediums i.e. Fixed, Float Free and Long Term;

- Extended recording time (48 hours for Fixed and Float Free, and 720 hours for

Long Term);

- More data items to be recorded. E.g. both radars images, ECDIS image, AIS

data, BWNAS primary bridge alarm and etc.;

- Enhanced bridge audio requirement.

Various interpretations available regarding “installed” in IACS UI SC261 and Flag

Administrations

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Mandatory Codes M

an

dato

ry C

od

es

22

• Code on noise levels on-board ships

• Fire Safety Systems (FSS) Code

• Life Saving Appliances (LSA) Code

• International Maritime Solid Bulk Cargoes (IMSBC) Code

• International Maritime Dangerous Goods (IMDG) Code

• International Code for the Construction and Equipment of Ships

carrying Dangerous Chemicals in Bulk (IBC Code)

• International Code for the Construction and Equipment of Ships

Carrying Liquefied Gases in Bulk (IGC Code)

• International Safety Management (ISM) Code

• International Code of Safety for High-Speed Craft, 1994 and 2000

• Code for Recognized Organizations (RO Code)

• IMO Instruments Implementation Code (III Code)

• International Code on the Enhanced Programme of Inspections during

Surveys of Bulk Carriers and Oil Tankers, 2011 (2011 ESP Code)

DNV GL © 2014 02.10.2014

Protection against noise

MSC 91 adopted a new Regulation 3-12 making the Code

on noise levels on-board ships mandatory by adopting

res. MSC.337(91)

The Code requires measurement of noise levels in work,

navigation, accommodation and service spaces under

simulated port conditions and at normal service speed at

no less than 80% of the maximum continuous rating

(MCR)

Applicable to ships 1600 GT or more with:

- Building contract on or after 1 July 2014

- Construction on or after 1 January 2015

- Delivery or after 1 July 2018

Existing SOLAS Chapter II-1, Regulation 36 is deleted

23 SOLAS Ch. II-1/Noise Code

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Noise Level Limits on board a ship

Before : IMO Res. A.468(XII) Recommended noise levels for transit condition only

Now : IMO MSC.337(91)

Ship size

Designation of rooms and spaces Designation of rooms and spaces 1,600 -10,000 GT ≥10,000 GT

Work Spaces Work spaces Machinery spaces (continuous manned) 90

Machinery spaces (not continuous manned) 110 Machinery spaces 110 110

Engine Control Room 75 Machinery control rooms 75 75

Workshops 85 Workshops other than those forming part of machinery spaces

85 85

Non-specified work spaces 90 Non–specified work spaces (other work areas) 85 85

Navigation spaces Navigation spaces

Wheelhouse, chart rooms and radar rooms 65 Navigating bridge and chartrooms 65 65

Listening posts, incl nav. Bridge wings 75 Look-out posts, incl. navigating bridge wings and windows 70 70

Radio rooms 60 Radio rooms (with radio equipment operating but not producing audio)

60 60

Radar rooms 65 65

Crew Accommodation Spaces Accommodation spaces

Cabins and hospital 60 Cabin and hospitals 60 55

Mess rooms 65 Messrooms 65 60

Recreation Rooms 65 Recreation rooms 65 60

65

Open deck recreation 75 Open recreation areas (external recreation areas) 75 75

65 Offices 65 60

Service spaces

Galleys (without food processing equipment in operation) 75

Serveries and pantries 75

Normally unoccupied spaces

Spaces not specified 90

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New IMO MSC.337(91) – ACOUSTIC INSULATION BETWEEN ACCOMMODATION SPACES

Designation of rooms and spaces

Criteria

MSC.337(91)

[Rw] DNV Comfort

Class [R´w]

Cabin to cabin 35 32

Messrooms, recreation rooms, public spaces and entertainment areas to cabins and hospitals

45 42

Corridor to cabin 30 28

Cabin to cabin with communicating door 30 28

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DNV GL © 2014 02.10.2014

Revised IMO Noise Code – Excessive levels

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DNV GL © 2014 02.10.2014

New IMO MSC.337(91) – Noise exposure

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Amendments to the Fire Safety Systems (FSS) Code – MSC 91

MSC 91 adopted amendments to the Chapter 9 (Fixed Fire Detection and Fire Alarm Systems) of FSS Code by res. MSC.339(91)

Change over switch to be arranged such that a fault will not result in the loss of both power supplies

Continuous operation during changeover to be ensured by the use of a battery of adequate capacity

Emergency source of power may be supplied by accumulator batteries or from emergency switchboard

If batteries are used then they should be located at a location suitable for use in an emergency and charger should be sufficient to maintain normal output power supply while recharging from a fully discharged condition

Updated reference to IEC standard

Additional indicating unit to be fitted at cargo control room

Detectors installed in cold rooms are to be tested accordingly

These amendments enter into force for ships constructed

on or after 1 July 2014

28 SOLAS Ch. II-2/FSS Code

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Amendments to the Fire Safety Systems (FSS) Code – MSC 93

MSC 93 adopted amendments to the FSS Code by res. MSC.367(93)

Chapter 15 Inert Gas Systems was revised to correspond with the amendments to SOLAS Regulation II-2/4.5.5

These amendments enter into force

1 January 2016

29 SOLAS Ch. II-2/FSS Code

DNV GL © 2014 02.10.2014

Amendments to the Live Saving Appliance (LSA) Code – MSC 93

Amendments to the LSA Code in

section 2.2 on the use of Reference

Test Devices (RTDs) are related to

testing and approving of lifejackets

Accordingly, Resolution MSC.81(70)

has been amended and

MSC.1/Circ.1470 on Guidelines for

validating the construction of a

completed adult life jacket reference

test device (RTD) has been approved

In force from 1 January 2016

30 SOLAS Ch. III/LSA Code

DNV GL © 2014 02.10.2014

MSC 93 amendments to the IBC Code

New regulations introduce for new gas and chemical tankers approved stability

instruments capable of verifying compliance with the applicable intact and damage

stability requirements

Existing chemical tankers need to comply with the new regulation at the first

scheduled renewal survey after 1 January 2016 but not later than

1 January 2021 but for gas carriers these application dates are shifted by

6 months, i.e. need to comply at the first scheduled renewal survey after

1 July 2016 but not later than 1 July 2021

Other amendments to the IBC Code regulate purging and inerting of cargo tanks

for products that make use of oxygen-dependant inhibitors

The maximum oxygen content to be maintained in tanks has been reduced from

8 % (still applicable for existing oil and chemical tankers) to 5 % for new oil and

chemical tankers

Non-mandatory the BCH, EGC and GC Codes have been updated in accordance

with IBC Code changes

In force from 1 January 2016

31 SOLAS Ch. VII/IBC Code

DNV GL © 2014 02.10.2014

MSC 93 amendments to the IGC Code - Part 1

The revised IGC Code will enter into force 1 January 2016 but applies to ships

whose keels are laid on or after 1 July 2016. The major changes, in addition to

reorganization of requirement for clarification, are:

guidance for handling LNG carriers periodically connected to a buoy and serving

as FLNG or FSRU units has been added

location of cargo tanks changed so that separation of cargo tanks from side shell

has been increased; impact on the design of fully refrigerated LPG carriers

cargo containment safety principles and requirements for partial secondary

barrier and small leak protection system have been added

design loads have been re-categorized as: permanent, functional, environmental

or accidental

revised fatigue criteria having impact on Independent Type B and membrane

tanks

design considerations, fatigue requirements and required design development

testing for membrane tanks have been revised

new requirements for cargo sampling connections, cargo filters, water curtain and

design of high pressure fuel gas system piping have been added

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SOLAS Ch. VII/IGC Code

DNV GL © 2014 02.10.2014

MSC 93 amendments to the IGC Code - Part 2

The major changes (continued):

requirements for thermal oxidization of vapours which would include boilers and

gas combustion units have been added

a new provision has been added to allow for sequential lifting to reduce the

amount of vented cargo

the requirements for material in pressure relief valves and means of emergency

isolation of such valves have been amended

new requirements for vent piping system have been added

definitions for Zone 0, Zone 1 and Zone 2 Hazardous Areas have been added

new requirement for piping and components in cargo area to be suitable for 925

degrees C has been added

requirements for vent fans and spare outfits have been increased and minimum

number of air changes provided for fixed and portable ventilation equipment for

spaces not normally entered has been added

new sections for automation systems and systems integration have been added

safety equipment for personal protection increased from two to three

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SOLAS Ch. VII/IGC Code

DNV GL © 2014 02.10.2014

MSC 93 amendments to the IGC Code - Part 3

The major changes (continued):

definitions have been provided for filling limit, loading limit and reference

temperature, justification for permitting filling limits greater than 98% are

specified and an absolute maximum filling limit of 99.5 % is specified

detailed requirements for gas fired internal combustion engines and for gas

turbine plants have been added

the use of fuels other than methane may now be accepted

a Cargo Operations Manual is required and new requirements for cargo sampling

have been added

a new section with very detailed requirements for cargo emergency shutdown

systems has been added

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SOLAS Ch. VII/IGC Code

DNV GL © 2014 02.10.2014

MSC 92 – Amendments to the ISM Code

MSC 92 adopted amendments to the International

Safety Management (ISM) Code by res.

MSC.353(92):

Existing text of 6.2 is amended with Company’s

responsibility to ensure that “each ship is

appropriately manned in order to encompass all

aspects of maintaining safe operations on board. A

proposal for min. safe manning may be requested

by the Administration with reference to the

Principles of minimum safe manning – Res.

A.1047(27) – covering peak workload situations

and changes in trade areas or other changes

which may affect safe manning)

New paragraph 12.2 is added with Company’s

responsibility to verify that those undertaking ISM

responsibilities should be acting in conformity with

the Company's responsibilities under the Code

In force from 1 January 2015

35 SOLAS Ch. IX/ISM Code

DNV GL © 2014 02.10.2014

MSC 92 – Amendments to the ISM Code, (cont.)

New paragraph in the foreword referring to

guidelines, recommendations, etc to be

taken into account. Footnotes are added :

– in paragraphs 1.1.10 (Procedures

concerning major non conformities),

1.2.3.2 (List of Codes, recommendations,

guidelines and other safety/security

related non mandatory instruments)

– and end of the title of sections 3

(Guidelines for operational

implementation of ISM), 4 (Guidance for

qualifications, training, and experience of

DPA), 8 (Guidelines for contingency

planning), 9 (Guidance for near-miss

reporting) and 11 (List of certificates and

documents to be carried out on board).

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Main regulatory instruments and bodies on environment

37

International conventions

Major regional regulators

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38

Air emissions SOx, NOx

DNV GL © 2014 02.10.2014

Possible developments towards 2030

39

2016

NOx tier III for new builds in North

America

2015 2018 2030

EEDI phase 4

2025 2020

Additional ECAs established

Operational requirements on

CO2

HK Recycling convention ratified

Adopted

Possible

Global CO2 monitoring, reporting

and verification

0.1% ECA sulphur limit

EU CO2 monitoring, reporting and verification

Ballast Water Convention - entry

into force

BC, noise, bio-fouling and VOC

regulation

EEDI phase 1

EEDI phase 2

EEDI phase 3 0.5% global sulphur

cap

0.5% global sulphur cap

EU Recycling Regulation

EU 0.5% sulphur cap

US BW requirements

DNV GL © 2014 02.10.2014

Annex VI Sulphur + EU Sulphur Directive

40

Requirement 2010; Sulphur < 1.0% 2015; Sulphur < 0.1%

ECA sulphur

Requirement 2012; ECA reqs. in EU law updated 2020*; Sulphur < 0.50% * All EU waters; EEZ (200NM)

EU sulphur Directive Global sulphur

Requirement 2020 / 2025*; Sulphur < 0.50% * Date TBD pending MEPC review, end-2018 latest

DNV GL © 2014 02.10.2014

MARPOL Annex VI Air pollution – New NOx emission limits from MEPC 58

41

Ship Constructed

(≥ 1 January)

Application of

Requirements

Emission

Limits

Compliance at engine’s delivery

except as below

1990

to

2000

Retroactive

to existing engines

Engine size

> 5000 kW and

≥ 90 liters Tier I

1st IAPP Renewal Survey

≥ 12 months after IMO advised

by Party of availability

(physical and cost)

of “upgrade kit” *

2000 ≤ x < 2011 > 130 kW ----

2011 ≤ x < 2016 * Tier II

≥ 2016 *

*Only for North American and

US Caribbean NECAs

Ships ≥ 24m L or total

propulsion power ≥

750kW

Operation outside of ECA

Tier III Operation within ECA

RPM

Total Weight of NO2 Emission (g/kWh) Relative

NO2 Reduction

from Tier I < 130 130 ≤ n < 2000 ≥ 2000

Tier I 17.0 45.0*n(-0.2) 9.8 Current

Tier II 14.4 44.0*n(-0.23) 7.7 15.5% - 21.8%

Tier III 3.4 9*n(-0.2) 2.0 80%

DNV GL © 2014 02.10.2014

MEPC 65 approved postponement of Tier III entry into force by 5 years

despite substantial disagreement

MEPC 66 negotiated and adopted a compromise:

– Ships constructed after 1 January 2016 will have to comply with NOx

Tier III when sailing in the North American and US Caribbean NECAs

– Future NECAs can apply a different construction date, but not earlier

than the time of adoption of the NECA

– Exemption for purely recreational crafts (“superyachts”) ≥ 24 meters

constructed before 2021, indefinitely for smaller ones

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MEPC 66 Update - MARPOL Annex VI, NOx Tier III changes

DNV GL © 2014 02.10.2014

Gas engines and NOx regulations MEPC 66

An amendment to the definition of fuel oil and marine diesel engine was

approved to include gas and gas fuelled engines respectively

This means that gas fuel will be subject to the Fuel Oil Quality

requirements in MARPOL Annex VI regulation 18.3

Gas turbines and other forms of combustion engines other than internal

combustion engines are still not covered by MARPOL Annex VI

The amendments are expected to be adopted at MEPC 67 in

October 2014

44

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Existing Emission Control Areas

45

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New ECAs – fact or fiction?

46

Turkish Straits in 2018? Hong Kong /

Guangdong?

Mexico in ‘17/’18?

DNV GL © 2014 02.10.2014

EU sulphur Directive - revision highlights

Revised Directive agreed by EU;

– Alignment with MARPOL Annex VI requirements

– Agreement on 0.5% for all ships within EU

waters in 2020

– 0.1% at berth and in inland waterways

– PAX vessel requirements at 1,5% in all non-ECA EU

waters until 2020 (200 NM)

– State aid for technology investments (scrubbers,

LNG)

– Member States required to transpose the Directive

into national law by 18 June 2014

Future actions

– EU considering other ECA’s as part of work on Air

Quality Directive, potential option for shipping

emissions to be included in National Emission Ceilings

– Present political climate in affected countries renders

new EU ECA proposals this decade highly unlikely

– Additional support measures may be forthcoming

47

DNV GL © 2014 02.10.2014

California Sulphur Regulations

48

Requirements

Non-compliance fee imposed

- $45,500 for 1st visit, increasing to $182,000 for 5th

Scrubbers will not be allowed as substitute

- Waiver possible if system accepted as R&D project

CARB regulation will be superseded by MARPOL Annex VI in 2015

- IMO regulations allows for use of scrubbers

DNV GL © 2014 02.10.2014

3 sulphur control options

LNG as fuel

49

HFO + scrubbers for exhaust gas cleaning

HFO + change over to low-sulphur fuel in ECA

1

2

3

DNV GL © 2014 02.10.2014

NOx compliance options

Selective catalytic

reduction

50

Exhaust gas recirculation

Various water based technologies

1

2

3

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51

Air emissions CO2

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Push from developing countries on making the resolution on “Promotion of

Technical Co-operation and Transfer of Technology operational”.

Correspondence group established

Tightly constrained discussions of further energy efficiency measures, limited

to covering potential aspects of a data collection system for fuel consumption

of ships

52

GHG update from MEPC 66

• correspondence group to continue the work and report at MEPC 67

• phased in approach starting with data collection (Monitoring, Reporting and Verification) looks likely, but will take a number of MEPC meetings to agree

• Update of IMO GHG Study 2009 to be finalized for MEPC 67

• No further work on Market Based Measures

DNV GL © 2014 02.10.2014

53

Particulate matter

DNV GL © 2014 02.10.2014

Particulate matter

Particulate matter

Initially thought that controlling sulphur would reduce the impact of this.

While distillates produce a lower total mass of particles than HFO, distillates

will typically produce smaller PM’s than HFO – thus will likely have a larger

health impact. Broadly speaking, indications are that the smaller the

particles, the larger the health impact. Research in several fields covering

this is ongoing.

Black Carbon

Being basically heat absorbing particulate matter has a strong impact on

global warming, in arctic primarily through more rapid melting of ice.

Regulations of both of these are under discussion only at this point of time,

but we will likely be seeing regulations in the not too distant future.

54

DNV GL © 2014 02.10.2014

55

Ballast water

DNV GL © 2014 02.10.2014

40 countries has signed the BWM Convention

Albania

Antigua & Barbuda

Barbados

Brazil

Canada

Congo

Cook Islands

Croatia

Denmark

Egypt

France

Germany

Iran (Islamic Republic of)

Kenya

Kiribati

Lebanon

Liberia

Malaysia

Maldives

Marshall Islands

Mexico

Mongolia

Montenegro

Netherlands

Nigeria

Niue

Norway

Palau

Republic of Korea

Russian Federation

Saint Kitts and Nevis

Sierra Leone

South Africa

Spain

Sweden

Switzerland

Syrian Arab Republic

Tonga

Trinidad & Tobago

Tuvalu

56

30,25% of world fleet

(target 35%)

DNV GL © 2014 02.10.2014

Not signed the BWM Convention

Country GT

Panama 20,87%

Hong Kong, China 7,59%

Singapore 5,73%

Bahamas 4,67%

Malta 4,35%

Greece 3,97%

China 3,75%

United Kingdom 2,90%

Cyprus 1,91%

Italy 1,74%

Japan 1,72%

Indonesia 0,98%

India 0,82%

Turkey 0,62%

Philippines 0,42%

St. Vincent & Grenadines 0,27%

Thailand 0,25%

Kuwait 0,24%

57

Source: IMO and UK DoT 2012

DNV GL © 2014 02.10.2014

MEPC 65 - new implementation schedule - BWTS

BWM Convention enters into force before 31 December 2016

BWM Convention enters into force after 31 December2016

The applicable date of compliance with D-2 standard is first IOPP renewal survey after entry into force, for all

ships. Ships constructed after entry into force will be required to have a treatment system installed at delivery.

58

constructed year BW capacity (m3) new schedule

before 2009

between 1500 and 5000

first IOPP renewal survey after entry into force of the Convention

less than 1500 or greater than 5000

first IOPP renewal survey after the anniversary date of delivery of ship in 2016

2009 or after

less than 5000 first IOPP renewal survey after entry into force of the Convention

between 2009 and 2011

5000 or more first IOPP renewal survey after the anniversary date of delivery of ship in 2016

after 2011 5000 or more first IOPP renewal survey after entry into force of the Convention

DNV GL © 2014 02.10.2014

MEPC 66

Discussion on whether G8 should be opened.

Conclusion: A study plan to be presented by

Secretariat for MEPC 67 for more changes

are made

MOU guidance approved

Concept of Ballast Water treatment boat

discussed

Stripping conclusion delayed until MEPC 67

9 systems gained type approval

59

DNV GL © 2014 02.10.2014

USCG implementation schedule - BWTS

Treatment must be done using either a USCG type approved system or a system type approved by another

Administration which the USCG has accepted.

This is referred to as AMS (Alternate Management System) and is limited to use for up to 5 years.

Vessel’s management may apply extension of implementation schedule, ref CG-OES Policy Letter No. 13-01

found at Homeport USCG

60

vessel's ballast water capacity

date constructed vessel's compliance date

new vessels all on or after 1 December 2013

on delivery

existing vessels

less than 1500 m3

before 1 December 2013

first scheduled drydocking after 1 January 2016

1500 - 5000 m3 before 1 December 2013

first scheduled drydocking after 1 January 2014

greater than 5000 m3

before 1 December 2013

first scheduled drydocking after 1 January 2016

DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014

02.10.2014

A.Pagalos

MARITIME

Technical Issues related to building of new tankers

61

• Testing procedures of cargo tanks during construction

• Openings on superstructures/deckhouses walls facing cargo area

• Practical consequences of HCSR implementation in comparison with CSR

• Findings after a year in service (DNVGL fleet)

DNV GL © 2014 02.10.2014

Testing procedures of cargo tanks during construction (IACS UR S14)

As per subject IACS UR, applicable for ships constructed on or after July 2013 :

Structural test is to be carried out for at least one tank of the same construction

(i.e., same design and same workmanship) on each vessel provided all

subsequent tanks are tested for leaks by an air test.

Subsequent vessels in the series (i.e., sister ships built in the same shipyard) may

be exempted from such testing for other tanks which have the structural similarity

to the tested tank, provided that the water-tightness in all boundaries of

exempted tanks are verified by leak tests and thorough inspection is carried out.

For sister ships built several years

after the last ship of the series, such

exemption may be reconsidered.

In any case, structural testing is to be

carried out for at least one tank for

each vessel in order to verify

structural fabrication adequacy.

62

DNV GL © 2014 02.10.2014

Testing procedures of cargo tanks during construction, (cont.)

Deviation in between SOLAS and IACS UR

As per SOLAS Ch II-1, Part B-2, Reg. 11.3 regarding scope of testing for tanks

forming part of vessels watertight subdivision :

“Tanks which are intended to hold liquids, and which form part of the watertight

subdivision of the ship, shall be tested for tightness and structural strength with

water to a head corresponding to its design pressure. The water head is in no

case to be less than the top of the air pipes or to a level of 2.4 m above the top

of the tank, whichever is the greatest.”

The above regulation does not allow sampling of the tanks to be tested, nor the

relaxation of extent of testing on sister vessel that is allowed as per IACS UR S14.

Conclusion

As a consequence of the above, when DNVGL is acting on behalf of flag

administrations as a RO, permission from flag is required in advance before

following procedures as per IACS UR S14.

Some flag administration have accepted testing in accordance with IACS UR S14

as equivalent to SOLAS requirement, either on a case by case basis or

permanently.

63

DNV GL © 2014 02.10.2014

Openings on superstructures/deckhouses walls facing cargo area in tankers

SOLAS regulations II-2/4.5.2.1, 4.5.2.2, 4.5.3.4.1, 11.6.2 and 16.3.2.3; IBC

Code, paragraphs 3.2.3, 3.7.4, 8.3.4 and 8.5.1; and IGC Code, paragraphs 3.2.4,

3.8.4, 8.2.9, 8.2.10 in general do not allow access doors, air inlets and openings

to accommodation spaces, service spaces, control stations and machinery spaces

facing the cargo area. Such openings are to be located on the transverse

bulkhead not facing the cargo area or on the outboard side of the superstructure

or deckhouse at a distance of at least 4% of the length of the ship but not less

than 3 m from the end of the superstructure or deckhouse facing the cargo area.

MSC.1/Circ.1459 (8th July 2013) :

IACS UI SC120 appears to be in line with above.

64

DNV GL © 2014 02.10.2014

Openings on superstructures/deckhouses wall facing cargo area in tankers (cont.)

DNVGLs concerns

In case of a fire in the cargo area, access openings (and ventilation openings) will

represent a significant risk to crew members in terms of escape from deck to any

safe space (accommodation or forecastle area), or trapping crew in for example

forecastle spaces from further escape. The provisions of an air lock would not

serve as a preventive measure in this respect.

In case of major liquid spills on deck, liquid would be accumulated at the front of

the forecastle bulkhead or the front of the accommodation bulkhead, since

bulkheads in question normally serve as the spill coaming forward and aft. A

resulting fire would rage in the same area.

Same will apply in cases of liquid spray.

Tanker fires, such as the “Bunga Alpinia” explosion and fire in Malaysia last year,

confirm that the intense fire is raging on main deck and immediately in front of

the accommodation bulkhead.

In addition safety hazards associated with toxic liquids and gases are not

considered MSC.1/Circ.1459

65

DNV GL © 2014 02.10.2014

Openings on superstructures/deckhouses wall facing cargo area in tankers (cont.)

66

Taking also into consideration that: • On the basis of historical standard tanker designs, it is difficult to see why it will

be impossible or practically unreasonable to require compliance with SOLAS/Codes requirements.

• Complaints received from shuttle tanker operators, who consider that UI SC120 introduces a significant additional and unjustified safety hazard on shuttle tankers

It is proposed that :

• MSC.1/Circ.1459 is re-considered so that the aspect of safe escape, exposure to

fire, liquid cargo spills and cargo spray is taken into account. It is believed that such a re-consideration will conclude that MSC.1/Circ.1459 and IACS SC120 must be withdrawn.

• It may be acceptable to accept access doors to forecastle spaces from main deck (i.e. facing cargo area), provided these are arranged with air-locks and on the condition that alternative means of access, not facing the cargo area are also provided. Note however that an air-lock alternative may not be a practical approach for shuttle tankers, as requirements may imply that loss of ventilation requires shut-down of non-certified electrical equipment (e.g. dynamic positioning equipment).

DNV GL © 2014 02.10.2014

Practical consequences of HCSR implementation in comparison with CSR

CSRH improvements over the CSR

Finite element analyses of all cargo holds, e.g. forward and aft cargo holds are

required.

Extended scope of fine mesh modelling for yield check and fatigue check

Design cargo tank pressures for seagoing conditions is increased as vapour

pressure (min 25 kPa) is included for these conditions.

Lateral pressure is applied in hull girder stiffener buckling assessment

67

Goal Based Standard (GBS)

compliance has resulted in

extended verification scope

More transparent and consistent

with a more extensive technical

background than the current CSR

DNV GL © 2014 02.10.2014

Practical consequences of HCSR implementation in comparison with CSR (cont.)

Areas of increased scantling based on the same HTS grades/weight percentages

Cargo tank boundaries (vapour pressure application on top of liquid pressure for

seagoing conditions plus lateral pressure application in the prescriptive stiffener

buckling assessment)

Structures (longitudinal bulkheads, web frames , collision bulkhead and engine

room bulkhead) in

way of forward and aft

cargo holds (buckling

assessment based on

cargo hold FE analysis)

Keel plate and shear

strake (minimum

thickness requirements

from CSR Bulk)

68

DNV GL © 2014 02.10.2014

Practical consequences of HCSR implementation in comparison with CSR (cont.)

Difference in hull steel weight when applying CSRH on existing CSR tankers

Based on the fact that scantling requirements are similar or slightly higher (see

above) it is expected that the actual steel weight will increase when applying

CSRH on existing CSR tankers

Weight increase is not expected to be more than 1%-2% (this is based on

conservative assumptions without any consideration of margins scantling on

existing design and scantling optimization).

69

VLCC

DNV GL © 2014 02.10.2014

Findings after a year in service (DNVGL fleet)

70

DNV GL © 2014 02.10.2014

Findings after a year in service (DNVGL fleet), (cont.)

71

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey MR tanker built in Korea

No.10 cargo tank (S)

- Crack (20 mm in length) was found at the filet weld of forward lower stool

bulkhead (Fr49) in way of corner closed to center longitudinal bulkhead. Backside

of lower stool bulkhead is No.5 water ballast tank (S).

72

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey MR Tanker built in China

A leakage from cargo

tank to adjacent water

ballast tank (No.1 P)

was reported, and crack

was subsequently found

on the welding below

stool top plate.

73

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey Panamax tanker built in Croatia

Found crack at stiffener / bracket in way of fr. 47 connecting longitudinal stiffener - bulb plate of inner

longitudinal plating of sea chest box

Found crack at the tip of transverse stiffener ( 2nd counted forward from fr. 46 ) fillet round weld connection

between the transverse stiffener and sea chest box bottom plating

74

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey MR tanker built in Korea

Surface crack in the

weld between forward

transverse bulkhead

lower stool sloping

plate, longitudinal

bulkhead (inner side)

lower sloping plate and

inner bottom plating.

75

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey LR1 tanker built in Korea

As reported by vessel, the leaking was

found from Cargo Tank No. 2 Stbd. to

Ballast tank No. 2 Stbd.

During inspection of the ballast tank No. 2

stbd., the crack about 25 cm long was found

on the welding between the longitudinal

lower stool top plate and stbd. side plate in

front of Fr. 85 and in way of erection joint,

when check the adjacent cargo tank No. 2

Stbd, the crack was found on the other side

of the welding and at the same location.

76

DNV GL © 2014 02.10.2014

Examples of Hull damages during first annual survey LR1 tanker built in Croatia

Crack found in web frame (fr

47) stiffener running from

sloped plate from sea chest to

sloped plate cargo tank.

77

DNV GL © 2014 02.10.2014

Crack along the

weld seam in

way of 4 port

ballast

observed.

78

Examples of Hull damages during first annual survey LR1 tanker built in Croatia

DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014

02.10.2014

A.Pagalos

MARITIME

Market outlook

79

-

DNV GL © 2014 02.10.2014

New contracts in 2014

Contracting activity slowed down

noticeably in 2014

1648 new contracts signed YTD (incl.

small vessels)

– Around 150 of the above may be

questioned due to unknown owners

(mainly to be built in Japan)

China has taken 44% of the total

volume, mainly bulkers, but also offshore

(OSV and MOU) and container ships

South Korea predominantly occupied with

oil tankers and gas carriers

Japanese orders, mainly with the bulk

and tanker sector

80

DNV GL © 2014 02.10.2014

Orderbook and scrapping

Total orderbook contains 6786 ships

corresponding to 205.6 mill GT

It represents 10.2% and 17.6% of the

existing fleet respectively

Bulk carriers and tankers (incl. gas)

represent as much as 70% of the total

volume currently on order

1279 ships (39.6 mill. GT) have been

delivered YTD

Scrapping remains relatively high, but

some 30% behind the record 2012 year

So far in 2014, 679 ships (14.7 mill. GT)

have been sold for demolition

Net tonnage increase YTD is 577 ships

corresponding to 24.9 mill GT

81

0

1000

2000

3000

4000

0

5

10

15

20

25

30

35

40

19

94

1

99

5

19

96

1

99

7

19

98

1

99

9

20

00

2

00

1

20

02

2

00

3

20

04

2

00

5

20

06

2

00

7

20

08

2

00

9

20

10

2

01

1

20

12

2

01

3

20

14

Nu

mb

er

of

vess

els

GT

Mill

ion

s

Vessels sold for scrapping or lost GT and number as of 2014.08.01

GT Number of ships

DNV GL © 2014 02.10.2014

Ship finance - Total investment in 2014 is expected to be lower by some 20% compared to 2013 due to lower contracting activity

World total orderbook is

estimated to be worth 384 $bn

Almost 50/50 split between

offshore and merchant contracts,

due to much higher investment in

the energy sector

Contracting in 2014 ytd:

– Merchant – 49.2 $bn

– Offshore – 22.1 $bn

– Total – 71.3 $bn

82

Total: $bn 384

DNV GL © 2014 02.10.2014

Crude Oil tankers

Seaborne trade growth very low

Declining US imports, partly compensated by the Far

East

Libyan oil compensated by West Africa

Still relatively high contracting for VLCC and

Suezmaxes due to low NB prices

Oversupply remains as a main problem

In 2016, possible crude export out of US? First

cargos of condensates got approved already

83

DNV GL © 2014 02.10.2014

Products tankers

Seaborne trade growth over 4% per annum,

growing mainly on the back bone of tight and shale

oil revolution

US increased exports to Southern America as well

as Europe (mainly diesel)

Extraordinary contracting of MRs (a lot of private

equity capital)

Refining capacity growth in Asia and Middle East will

boost trade of products to Europe, but we still wait

fro LR1 and LR2 to be ordered

84

DNV GL © 2014 02.10.2014

LPG Carriers – one of the few markets with relatively strong fundamentals

85

Source: SAI/MSI

• Global ethylene trade declined 4% 2013, driven

by a fall of 44% in Middle East exports (due to

sanctions against Iran)

• The small carrier segment is believed to grow

8.3%.

• Historically high spot rates for VLGCs (100.000

USD/day) and the outlook for this segment

remains strong

DNV GL © 2014 02.10.2014

LNG Carriers – recent roller-coaster contracting volume is levelling out to a rather constant but more conservative size

86

• Another year with limited growth in LNG

trade

• Import of LNG to China will however

remain strong

• Growing number of LNG carriers built on

speculation – no fixed contracts

Source: SAI/MSI third Quarter

DNV GL © 2014 02.10.2014 SAFER, SMARTER, GREENER DNV GL © 2014

02.10.2014

A.Pagalos

MARITIME

PSC performance of tankers

87

DNV GL © 2014 02.10.2014 88

Data source: IHS Fairplay

DNV GL © 2014 02.10.2014

89

Source: Annual reports and IHS Fairplay

DNV GL © 2014 02.10.2014 90

Data source: IHS Fairplay Graph includes port States where DNV GL had most detentions

DNV GL © 2014 02.10.2014

Worldwide Detention percentage for tankers vs DNV GL detention percentage for tankers 2010-2014

91

DNV GL © 2014 02.10.2014 92

Data source: IHS Fairplay *Deficiency Ratio = average number of deficiencies per inspection

DNV GL © 2014 02.10.2014 93

DNV GL © 2014 02.10.2014 94

DNV GL © 2014 02.10.2014 95

DNV GL © 2014 02.10.2014

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Thank You for your attention !

96

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