TANKEROperatorea45bb970b5c70169c61-0cd083ee92972834b7bec0d968bf8995.r81.cf1… · “We believe...

TANKEROperatorMARCH 2015 www.tankeroperator.com

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March 2015 � TANKEROperator 01

ContentsMarkets� Older tanker - better value?� Little scrapping

US Report� US crude exports - coming soon?� Jones Act safe

Shipmanagement� Stronger focus needed� Evaluate data properly � Looking at pool points� Ships agency vital� BSM’s new era

Front coverBernhard Schulte Shipmanagement (BSM) experienced a change at the top at the end of last year, heralding a new era for the group.

Today, the company is one of the largest tanker third party shipmanagement concerns having around 150 tankers of all types in itsportfolio.

Comprehensive training is also given to tanker crews up to senior officer level, which includes liquid cargo simulator courses, at thegroup’s own training centres.

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BSM_210x250_ad_Layout 1 17/02/2015 14:19 Page 1

22

12

Anti-Piracy� Protecting the citadel

Technology 22 Chemical/Products Tankers �Super Efficient MR

�IMO PPR meeting 28 Ship Efficiency � Voyage optimisation

� Air lubrication tanker tests � ECA fuel questions �Monitoring emissions data 34 Tank Servicing �Why wall wash?

Tanker Operator’s Annual Top 30company listing

20

3706

04

TANKEROperator � March 201502

COMMENT

2015 - More tanker company IPOs andconsolidation likely

TANKEROperatorVol 14 No 4Future Energy Publishing Ltd

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Improving market fundamentalscould persuade more tankerowners to tap into equitymarkets, leading ratings agencyFitch said recently.

This money will probably be used to

increase, or modernise fleets, mainly through

the secondhand market and M&A activity.

Fitch said that tapping into equity markets

would help owners with funding since the

banks have become cautious about investing in

shipping.

For example, Belgium's Euronav raised

$229 mill through an IPO at the end of

January, having increased its size from $166

mill due to high demand.

Tankships Investment Holdings also plans to

raise up to $100 mill in a NASDAQ listing.

“We believe other tanker shipping

companies may follow suit with an IPO, or

other equity issuance. This should help them

at least partially repair weak balance sheets

caused by falling profitability and continued

high capex through the industry downturn,”

Fitch said.

Like most pundits, Fitch expected a better

supply/demand balance in the tanker sector

this year. Slower growth in capacity should

lead to a gradual tightening in the tanker

market, especially in the crude tanker segment,

which will support higher capacity utilisation

rates.

Crude tanker tonne/mile demand was

forecast to grow by about 2% per year in

2014-2015, while the net global tanker fleet

was forecast to increase by around 1% in 2014

and 2% in 2015, mainly in the product tanker

segment. Crude oil tanker fleet growth will

remain flat.

The drop in oil prices is likely to strengthen

shipping companies' financial profiles. Tanker

rates should be supported by the contango

structure in oil prices, where crude for future

delivery is more expensive than current prices.

This has prompted higher demand for floating

storage projects. Lower fuel costs should also

help boost profitability.

As for Sovcomflot (SCF), the Russian

Government - the company’s sole shareholder

- made preparations for an IPO last year, but it

was postponed due to volatile financial

markets and further delays are expected.

In Tanker Operators’ Top 30 listing with this

issue, there have already been a few

consolidation moves, notably DHT’s takeover

of Samco and the forming of China VLCC out

of cash-strapped Nanjing Tanker and Hong

Kong-based Associated Maritime.

Although the Chinese deal was probably

politically motivated to save Nanjing Tanker,

it has spawned a large commercial VLCC

concern at the right time, as far as earnings are

concerned.

VLCC deal imminentThe most intriguing deal being discussed as

this issue went to press was GenMar’s

takeover of Navig8’s newbuilding VLCC fleet.

This would be a remarkable turnaround for the

US-based company if this deal was

consummated, as it only came out of Chapter

11 in 2012.

In all, GenMar operates seven VLCCs with

another seven on order. As for Navig8, a

champion of pools, it has 21 VLCCs in its

VL8 pool, plus another 14 on order. This

merger would create another significant force

in the VLCC segment.

Earlier, GenMar, now primarily backed by

Oaktree Capital, had tried to buy the Maersk

VLCC fleet before being pipped to the post by

Euronav.

It is interesting to see that the pendulum has

swung in favour of crude oil tankers away

from product tankers, especially MRs. This

has to be a good thing for product tanker

owners and operators, as the market was in

danger of becoming over cooked.

There has been interest in LR2s and despite

their higher newbuilding cost, due to coated

tanks, they do give an operator greater trading

flexibility, being able to switch trades

reasonably easily.

Expanding empiresSeveral players could expand their empires

this year on the back of IPOs and/or equity

funding, including Capital (just outside our

Top 30), Teekay and Angeliki Frangou’s

Navios tanker vehicles. Also don’t forget

George Economou (Cardiff), Anthony Gurnee

(Ardmore), Robert Bugbee (Scorpio),

Herbjorn Hanssen (Nordic American) and

others who are no doubt waiting for the right

opportunity to pounce.

Turning to vessel operating efficiency, at a

recent presentation, DNV GL maritime head

Tor Svensen said that in conversation with

owners, he had not found anybody who had

given up the principle of slow steaming.

Although mainly talking about the

containership sector, this also applies to the

tanker trades as well.

If the oil price stays low for some months,

will this change the operators appetite for fuel

savings, or will the threat of environmental

legislation outweigh the commercial

considerations? Low bunker fuel costs, plus

more efficient vessels must be a ‘win win’

situation for owners and operators alike. TO

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INDUSTRY - MARKETS


Older tankers couldprove the best betLast year, McQuilling Services deduced from its Sharpe Ratio analysis

that VLCC and Suezmax tankers may offer investors a more attractive risk-adjusted return in the long-term.

This prognosis was further tested in

January of this year as the

consultancy concluded its asset

price forecast and investment

analysis sections of its 2015-2019 TankerMarket Outlook.

The results of the analysis suggested that the

initial findings were correct, but further showed

that the 10-year old tankers of these two vessel

classes will outperform their younger

counterparts.

In Table 1, McQuilling displayed recent asset

prices for 10 year old VLCCs and Suezmaxes.

These vessels, when measured by the

percentage growth in the last 12 months have

appreciated by 21.2% and 44.9%, respectively.

McQuilling believed that the upward

momentum initiated during the year will

continue going forward, as the current firm

earnings environment is forecast to persist at a

stable rate in 2015, retreating slightly in 2016

before firming again through 2019.

The relationship between earnings and

secondhand tanker values has been well

established down the years. This applies to both

five-year old and 10-year old vessels with

correlation statistics above 70% for both

Suezmaxes and VLCCs for these age groups.

Despite the similar behaviour of the asset

prices for both age groups, there was a clear

difference in the velocity of price movements.

From the consultancy’s historical analysis, it

was determined that the older vessels

outperformed their younger counterparts,

McQuilling explained, when prices were

increasing, but also experienced more negative

volatility in market downturns (Figure 1).

By comparison, the 10-year old VLCC

would have reached a high of 3.44 in 2008,

about 16% higher than its five-year old

counterpart. On the way down from the high in

2008; however, the 10-year old VLCC lost

74% of its value, reaching 0.91 in 2012. At the

same time, the five-year old VLCC, which

peaked at 2.97 in 2008 gave back 59% of its

value.

While the importance of the past

performance of asset prices was appreciated, it

should be used cautiously when predicting

future price movements. For this, McQuilling

relied on its asset forecasting process, the

consultancy explained.

Three componentsMcQuilling’s asset forecasting process is well

defined in the 2015-2019 Tanker Market

Outlook. It encompasses three components: a

regression model, which tests historical

relationships between asset prices and

independent variables like TCE earnings; an

income based valuation model, which discounts

future unlevered cash flows with a weighted

average cost of capital and finally information

is gathered from McQuilling Partners sale and

purchase desk.

These three components are examined

independently and overlaid with adjustments

taken from experience, such as expected

inventory levels, or availability of financing, to

complete the final forecast.

In completing the forecasts for 2015-2019,

McQuilling concluded that tankers across all

sectors were likely to rise amid a firmer

earnings environment; however, the scale of the

rising values would vary significantly.

For example, in the clean tanker segment, a

10-year old MR2 with a projected increase of

11% was the best expected performer; but, on

the dirty side, the growth forecast was at least

18% for the different 10-year old tankers

(Figure 2). On average, the 10-year old dirty

tanker class represented the best performing

vessels, outpacing their clean counterparts, as

well as the five-year old dirty and clean tanker

TTable 11 � VVLCC && SSuezmax 110-YR OOld VValues US $$ ((million)

PPeriod VVLCC SSUEZ

4Q 2013 33.4 24.8

1Q 2014 38.4 29.4

2Q 2014 45.5 33.5

3Q 2014 47.8 34.6

4Q 2014 45.4 34.5

2014 Avg. 44.3 33.0

PPeriod VVLCC SSUEZ

Jan-14 37.3 24.5

Jan-15 45.2 35.5

% Change +21.2% +44.9% SSource: MMcQuilling SServices

FFigure 11 � HHistorical PPerformance oof VVLCC TTankers (5YR/10YR), 11994 == 11.0

Source: MMcQuilling SServices

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

94 96 98 00 02 04 06 08 10 12 14

5-YR 10-YR


INDUSTRY - MARKETS

classes.

The results of the forecast indicated that

there is a great deal of value in the older vessel

classes, which was further confirmed in the

consultancy’s investment analysis. McQuilling

looked at all tankers acquisitions at January

2015 levels with the objective of holding the

vessel until the end of its trading life – which

from its proprietary data is estimated to be the

22nd anniversary of a vessel.

Between now and then, the vessel’s cash

flows would be based on McQuilling’s five

year TCE forecast taken from the 2015-2019

Tanker Market Outlook and a longer-term

average for the years that extended beyond this

forecast.

After accounting for operating costs and

financing costs related to the acquisition of the

vessel, it was assumed that the vessel would

receive the historical average of its residual

value at its maturity. The corresponding cash

flows would then be analysed for the internal

rate of return (IRR) and compared against one

another to determine which tanker by size and

sector is the best investment in today’s

environment.

The results showed what the Sharpe Ratio

from last year’s research also concluded – the

bigger dirty tankers are the place to be from an

investment standpoint. It was further concluded

that among the bigger dirty tankers, the 10-year

old class distinguished itself.

With an IRR (return on equity) of 44.9%, the

10-year old VLCC represented the best

investment option in today’s pricing

environment, according to McQuilling’s

calculations. Not far behind was the 10-year

old Suezmax, which may return a 40.8% IRR

to investors.

FFigure 22 � PProjected AAsset PPrices ffor 110-YR oold DDirty Tankers*

Source: MMcQuilling SServices *Percentages aare ccalculated uusing uunrounded aasset pprices *Annual aaverage vvalues

45

36

2619

55

42

32

23

2222%%

1188%%

2255%%

2200%%

0

10

20

30

40

50

60

70

80

90

100

110

VLCC SUEZ AFRA PANA

Jan-15 2015*US $ million

FFigure 33 � IIRR PProjections ffor DDirty TTankers

Source: MMcQuilling SServices

0%

10%

20%

30%

40%

50%

VLCC SUEZ AFRA PANA

NB 5 YR 10 YR

IRR %

Tanker tonnage sold for demolitionlast year totalled 8.3 mill dwt. This was the lowest deadweight figure since

2009 and down by almost a third from the

12.2 mill dwt recorded in 2013.

The significant fall could be due in part to

the improved trading conditions for tankers

throughout much of last year, but also a lack of

suitable candidates, leading London broker

Gibson said in a recent report.

Lightweight prices firmed throughout 2014

until the fourth quarter when steel scrap

demand started to fall. Nevertheless,

December’s lightweight price remained firm at

around $460 per tonne (Indian sub-continent),

which was at a similar level to the same period

a year before.

Of the 77 tankers of 25,000 dwt and over

sold for scrap, 24 were single hull, reflecting

the fact that the final year of operation had

been reached under the phase out. This should

condemn more elderly tonnage to the breakers.

Last year, just 11 VLCCs - of an average

age of 21.1 years - were sold for demolition,

which was almost half the 2013 total. They

included two single hull units, which had been

used to store fuel off Singapore.

VLCC and Suezmax tonnage together

accounted for just over half of the total at 4.4

mill dwt. The VLCC Samho Crown was just

over 18 years old when sold to breakers in July

last year, while the largest tanker sold was the

Shinyo Splendour. They both ended their days

on a Pakistan beach.

There were eight Suezmax sales, while

Aframax/LR2s numbered 25 at an average age

of 22.9 years, accounting for another 2.3 mill

dwt of the total tonnage broken up. The

number of MR/Handysize vessels sold for

breaking fell by 13 to 23, compared to 2013,

while Panamax/LR1 disposals totalled 10.

Pakistan once again was the favoured

destination, taking half of the vessels- 31 units

of 4.4 mill dwt. China gained second spot with

1.4 mill dwt, while Bangladesh was third at 1.1

mill dwt, which was less than half of the

country’s 2013 total.

Of course tanker removals are not just

confined to the demolition sector, as last year,

six VLCCs and a Suezmax were sold for

conversion projects, accounting for an

additional 2 mill dwt.

Gibson admitted that trying to forecast tanker

removals this year could be challenging for

analysts. The oil price fall effect has already

been seen in the offshore market., which could

curtail FPSO/FSO projects going forward.

In addition, the tanker market’s recent

strength could give a new lease of life to many

potential scrap candidates, as well as increase

asset values. Lightweight prices on the sub-

continent continued to spiral downwards at the

time of writing, although no tanker sales have

been seen to test the market.

This year could be challenging for tanker

demolition.

Scrapping on hold for the time being

TO

TO


INDUSTRY - US REPORT

US policy makers are considering allowing domestic crude oil exports, which have been

prohibited since 1975. If permitted, US crude exports could have a significant impact on

both movements by Jones Act tankers, as well as the international fleet.*

Although US crude oil export

restrictions were in place even

earlier, the main barrier to crude

oil exports is contained in the

Energy Policy and Conservation Act of 1975.

That Act prohibited crude oil exports except

where the President determines it is in the

“national interest.”

In contrast, US refined product exports are

generally permitted. The Export

Administration Act of 1979 granted authority

to the US Government to restrict exports of

refined products. But these restrictions were

lifted in 1981 - except with respect to Naval

Petroleum Reserve derived products.

There are current exceptions to the US

crude oil export ban. Oil can be exported to

Canada, for example, pursuant to a license if it

is to be used there, or refined and re-exported

to the US. Oil shipped through the Trans-

Alaska pipeline (TAPS) can also be exported,

but only under certain conditions and most

particularly in a US-flag tanker - although the

vessels can be constructed outside the US.

Certain swaps of oil are also permitted and

there are other narrow exceptions.

This 1970’s era policy did not come into

focus as an issue until the US shale oil boom

began to create a glut of certain types of oil

and in certain regions. The discount between

oil sold at the Western Texas Intermediate

(WTI) price and the international Brent price

in particular has spurred examination of ways

around the ban and consideration of changing,

or eliminating the ban entirely.

Much of the technical focus on the ban has

been on the regulatory definition of ‘crude

oil.’ As defined by the US Commerce

Department, crude oil is “a mixture of

hydrocarbons that existed in liquid phase in

underground reservoirs and remains liquid at

atmospheric pressure . . . which has not been

processed through a crude oil distillation

tower.”

One thing that has caused consternation is

that lease condensate, a very light hydrocarbon

liquid, is defined as ‘crude oil’ by the US

regulations – and so cannot be exported except

in the case of an exception. But, as soon as

condensate is processed through a crude oil

distillation tower and meets a number of other

factors, such as whether the process materially

transforms the crude oil, then it is not ‘crude

oil’ and can be exported.

The US Commerce Department issued a

widely publicised ‘frequently asked questions’

on 30th December, 2014 to help, but the range

of factors listed for determining whether lease

condensate is no longer ‘crude oil’ may only

have confused matters further. There has been

understandable confusion particularly since

individual rulings indicating what is and what

is not exportable lease condensate have not

been made publicly available.

Refinery boonThe current ban has been a boon to the US

refineries, which have been able to replace

foreign sources of crude oil with cheaper

domestic crude even taking into account

pipeline, railroad, storage and tanker

bottlenecks.

The ban has also been a boon to the US

tanker market, as crude oil produced

domestically has to be moved in the US –

whether overland by pipeline, truck and rail,

or seaways, by tank barges, or deepsea

tankers. The Jones Act restricts the movement

of any ‘merchandise,’ including crude oil and

refined petroleum products, from one point to

another point in the US to domestically-built,

US-flag, US citizen owned and operated

vessels.

There have been reports of MR-sized Jones

Act tankers commanding rates as high as

$120,000 per day for a year’s timecharter by

major oil companies. Although there are

US crude exports andthe tanker market

The US flag, OSG-managed Jones Act MR Overseas Chinook has been converted into a shuttle tanker. Photo credit - OSG.



currently a number of MR Jones Act tankers

on order, these rates appear likely to remain

strong.

Much of the US domestically-sourced crude

has been exported as refined petroleum

products, which has provided a freight rate

bottom for the international MR tanker market

in the Atlantic basin. However, given the

level of tonnage oversupply in the

international tanker market, the benefit of

increased petroleum exports has not been as

pronounced on the foreign-flagged tankers as

on the Jones Act vessels. Overseas flagged

MRs have been earning on average less than

$20,000 per day in the international tanker

market.

The high Jones Act tanker rates has led to

some thinking about offshore refining, or

blending. Under US Customs and Border

Protection rules and precedents, merchandise

which leaves the US and is converted into a

‘new and different’ product onshore can be

shipped to the foreign destination and back in

non-Jones Act vessels. It has been well

known since at least the 1970s that US origin

crude oil could be shipped to an overseas

refinery and refined into gasoline and other

products without Jones Act implications.

In the spring of 2014, US Customs issued a

ruling indicating that offshore blending

without any refining converted the US source

components into a ‘new and different’ product.

Since then, US Customs has been reluctant to

provide further specific guidance on what

onshore changes must occur for blending to

result in a ‘new and different’ product, thus

leaving the issue muddled.

Not being enamoured of getting a discount

to the international price of crude oil, many

US upstream producers of oil have begun to

lobby to lift the ban on crude oil. Although

the ban can arguably be lifted by the Obama

Administration under existing authority

without any change in the law, the Commerce

Department has not shown a desire to make

any move in that direction.

So, the focus of activity has shifted to the

US Congress. The first Congressional hearing

on potential crude oil exports was held on

30th January, 2014 and testimony was taken

both for and against relaxing the ban.

US domestic policies will likely hinge on

whether the American public can be convinced

that retail gasoline prices will benefit, or

remain unaffected by the lifting of the crude

export ban. If the average consumer becomes

convinced that they will pay more when there

are crude oil exports with the benefits going

largely to US energy companies from such a

policy change, then many politicians may turn

against lifting the ban.

During the last 12 months, a number of

studies have been released analysing the likely

price effects, including several finding that

lifting the ban would lead to a modest

reduction in US retail gasoline prices. These

studies, however, and much of the lead up to

the current debate, were undertaken before the

worldwide crude oil price plunge.

Perhaps the leading opponent of relaxing

the ban is a group of independent US

refineries. They have argued that it would be

unfair for foreign refineries to be able to

purchase US crude at a delivered price lower

than the domestic delivered price on the back

of the high cost of Jones Act tanker charters.

The result has been a coming together of the

crude oil export ban with Jones Act reform

discussions with some interests arguing that

the ban repeal should go hand-in-hand with a

Jones Act repeal, or modification.

Amendments proposedIn the context of the Keystone pipeline

legislation considered by the new US

Congress, amendments were offered, but not

voted on, both to modify the Jones Act (by

Sen John McCain) and to repeal the crude oil

export ban (by Sen Ted Cruz). Similar efforts

can be expected to surface throughout the next

two years.

Although the last two US Congresses have

famously been unable to accomplish much of

anything, the new Republican control of the

US Senate when combined with Republican

control of the House of Representatives could

result in more legislating. This may be the

case in the energy area, as both political

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parties appear to have objectives that could be

moulded into compromise legislation.

Of particular importance is Sen Lisa

Murkowski of Alaska. She is the new

Chairwoman of the Senate Energy Committee

and has made it clear that eliminating, or

reforming a crude oil export ban is one of her

top legislative priorities for the 114th US

Congress.

The impact of any change in the crude oil

export ban is hard to predict. There are several

scenario permutations to be considered. Most

likely, crude oil exports will occur on

international flag tankers, which would likely

be a positive development for the international

tanker market overall unless some US-flag

requirement is attached to the exports. Such a

requirement has been proposed by US-flag

interests in the context of the US Maritime

Administration analysis of a future domestic

maritime strategy.

Depending on the location of the buyers,

different tanker segments would stand to

benefit to varying degrees; Aframax and

Suezmax markets will likely benefit the most

if European refiners are to replace West Africa

and Middle East high quality crude oil imports

with equally high quality US produced crude

oil, while the VLCC market will be the

greatest beneficiary if China is to be the

biggest buyer of US crude.

Lifting the ban on exporting US crude will

also benefit the international crude oil tanker

market by potentially and paradoxically

increasing the US crude oil imports: as WTI

oil will be priced for the international oil

market (possibly erasing the price discount

due to the export ban). US refineries will opt

to purchase crude oil grades –whether

domestically or internationally – to maximise

their refinery margins, which could boost

import crude oil volumes, primarily from

Venezuela and other producers of hugely

discounted heavy and sour crude oil.

The lifting of the export ban may have a

negative impact on the Jones Act tanker

business in terms of market activity and

freight rates, as domestic crude oil reaching

(predominantly) the US Gulf Coast by pipeline

can be loaded on foreign-flagged vessels and

shipped overseas (assuming no US-flag

requirement). Even if there is only a partial

lifting of the ban, some ‘leaking’ of domestic

oil to the international market may have an

impact on the Jones Act tanker trades given

the outstanding orderbook and the heavy

investments in rail tanker car ordering and

pipeline construction.

More attention has been put on the US

crude oil export ban in the last six months than

probably has occurred in the almost 40 years

during which the ban has been in effect. It

remains to be seen, however, whether US

domestic politics will align with the broad

support for lifting the ban and whether there

will be a legislative opportunity for the ban to

be modified, or lifted.

*This article was written by CharliePapavizas, Partner and Chair of the Maritime& Admiralty practice of Winston & StrawnLLP based in Washington, DC. He can bereached at (202) 282 5732, or [email protected] and BasilKaratzas, CEO of Karatzas Marine Advisors& Co, a shipbrokerage and shipping financeadvisory firm based in Manhattan. He can bereached at (212) 380 3700, or [email protected]

TO

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The US Government has approved

the Keystone XL Pipeline*

legislation without an amendment

to repeal the Jones Act.

This move was welcomed by the American

Maritime Partnership (AMP), an organisation

representing the domestic maritime industry,

as repealing the Jones Act would have

decimated the nation’s shipbuilding capacity

vital to America’s national, economic and

homeland security.

“The decision not to offer or vote on the

amendment to repeal the Jones Act on the

Keystone XL Pipeline legislation, an

amendment that relied on flawed data and

factual omissions, showed that it would have

been overwhelmingly defeated because of the

law’s rock solid support in Congress,” said

Tom Allegretti, AMP chairman. “This was not

surprising considering it was just one month

ago (December) that Congress enacted its

strongest legislative endorsement of the Jones

Act in memory.”

The amendment in the Keystone legislation

had been proposed by Senator John McCain.

The Jones Act requires vessels in domestic

waterborne trade to be owned by US citizens,

to be built in the US and be crewed by US

seafarers.

According to US sources, there are currently

117 shipyards in 26 states, which employ

about 110,000 workers. The total of direct and

indirect shipyard jobs, however, is closer to

402,000 and they provide about $23.9 bill in

income and add $360 bill to the US GDP.

The US Senate passed a bill in January

allowing for the construction of the Keystone

Jones Act safe for nowKeystone XL Pipeline project has been approved. Jones Act held in place.

The decision not to offer or vote on the

amendment to repeal the Jones Act on the

Keystone XL Pipeline legislation,........

because of the law’s rock solid support in

Congress,

“

”Tom Allegretti, AMP chariman

March 2015 � TANKEROperator


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XL oil pipeline, but an amendment filed by Senator John McCain

seeking to repeal the US build requirement of the Jones Act was not

attached.

Senators voted 62-36 to pass the Keystone XL pipeline bill, despite

repeated veto threats from the White House.

After the bill passed an initial Senate hurdle in early January,

Senator McCain filed an amendment to the bill that sought to repeal

parts of the Merchant Marine Act of 1920 - the Jones Act.

Senator McCain argued that the Jones Act is an “antiquated law”

that hinders free trade and raises prices for American consumers. In

December, McCain vowed to eventually fully repeal the Jones Act,

despite strong opposition. “It’s one of these things you just propose

amendments to bills and encourage hearings and sooner, or later, the

dam breaks,” McCain said after a speech at The Heritage Foundation,

a conservative think tank, reported US media, including online

newswire gCaptain.

When McCain made his move, he cited the Congressional Research

Service, which found that the price of moving crude from the Gulf

Coast to the US Northeast on a Jones Tanker is three times higher than

if using a foreign-flagged tanker.

Losing the protections the Jones Act would, according to a

statement by Jacksonville, Florida-based Crowley Corp, an operator of

US flag tankers, “undermine American safety and security interests,

and eliminate thousands of American jobs.”

*The Keystone XL Pipeline is designed to connect up the KeystoneHardisty oil terminal in Edmonton, Canada to the central US statesand eventually to the US Gulf at Houston. It will eventually allow bothCanadian and US crude oil to flow across country to the East andSouth.

TO

The route of the proposed Keystone XL Pipeline.


INDUSTRY - SHIPMANAGEMENT

According to Thome

Shipmanagement’s general

manager Stig Holm, this will be

necessary due to the current low

oil prices. He said that there would be a less

competitive impact of the new generation of

Eco vessels coming on stream.

He was speaking at Tanker Operator’s

January 2nd Eco Tankers Conference held in

Copenhagen in January at which Holm also

called for greater crew education and training,

saying that seafarers should be able to react

within three hours of a report instead of one

month later.

Fuel optimisation and energy audits were

also important. Thome undertakes these audits

with TechConsult and the findings included

leaking steam traps, running main engine

lubeoil pumps during port stays, plus the

unnecessary heating of the bunker tanks.

He gave an example of steam traps leaking

between 20-80 kW of power, which would

equate to $48-$192 per day, or $17,250 -

$70,080 per year, which could be saved. As

for the main engine lubeoil pumps in operation

during port stays, at 65 kW this will account

for $156 per day, or about $14,000 per year,

while unnecessary heating of the bunker tanks

holding 450 tonnes of fuel could amount to 30

litres of fuel oil heating equal to $500 per day.

The shipmanagement concern is also

involved in an initiative called the Energy

Data Acquistion Template - a joint venture

with Den Danske Maritime Fond,

TechConsult, Force Technology and Thome.

This project will look at a vessel’s future

technical and operational profile, plus its

trading patterns.

He said that today, energy management was

much more analytical than before and is an

integrated part of the planned maintenance

function on board ship. For example, internal

training is undertaken of the engine room

personnel by energy saving experts.

Holm also thought that some of the

equipment on board a vessel was “too poor”

for the job in hand and called for less ‘high

end’ solutions, but for more sophisticated

measuring equipment to be placed on board,

plus support from shore-based experts.

Thanks to another project, Thome has

claimed to have become self-sufficient in

recruiting junior officers on the back of an in-

house cadet training programme.

Launched in 2005, under the company’s

‘Human Element’ initiative, the Thome Global

Cadet Programme has already trained more

than 1,350 cadets from at least 12 countries in

Asia, Europe and the Far East.

At the end of January, there were 650 cadets

at various stages of training in the programme

with another 200 due to join soon as deck,

engine, electrical, or catering cadets.

Vacancies filledThe success of this scheme has enabled

THOME to fill all of its 2014 junior officer

vacancies from within its own pool of trained

seafarers, the company claimed.

Michael Elwert, director of group HR,

HSSEQ & crewing, said: “We place a great

deal of importance on our cadet programme

and are delighted that it is proving so

successful.”

“We at Thome Group recognise the

importance of providing quality training to our

seafarers and the difference it makes towards

them and ultimately the performance of the

vessels they operate.

“We believe that training is the key to

operating safe and efficient ships on greener

seas. The level of training we provide is

specialised and is over and above the standard

recommended by STCW,”he said.

Sartaj Gill, deputy managing director

(ROHQ) & head of group training, explained:

“As Thome Group continues with the large-

scale and rapid expansion of its fleet, the

requirement for suitably trained officers to

serve on board our tankers, bulkers, gas

carriers and offshore has increased

exponentially.

“Our cadet programme has a robust

selection process to ensure we recruit well

rounded, excellent individuals who benefit

from our high quality coaching. Our cadets are

a multi-national and multi-cultural group, fully

representative of the diversity with THOME

Group. The feedback we have received from

our cadets is that they view our training

programme as a successful highway to

fulfilling their dreams and goals,”he claimed.

In addition, THOME Group has claimed to

become the first shipmanagement company to

achieve Eco-Office (formerly Green Office)

certification in Singapore.

The company has successfully completed an

environmental audit throughout its Singapore

offices to achieve Eco-Office status, which is

regarded as the strictest of its kind in

Singapore corporate circles.

Thome Group president, Claes Eek

Thorstensen, said: “We are proud of this award

but with pride comes responsibility,

particularly since we are the first in our sector

to achieve this certification. We owe it to

ourselves, the marine fraternity in Singapore

and also to our stake holders around the globe,

to continue to uphold these high

environmental standards.”

Eco-Office is a joint initiative between

Singapore Environment Council (SEC) and

City Developments Limited (CDL).

One of the key elements of the project is the

online Eco-Office rating system, which

enables offices to perform a self-audit based

on supplied metrics, such as corporate

environmental policy and commitment,

purchasing practice, waste minimisation

measures and levels of recycling.

Stronger focusneeded on board shipThere should be more focus on the existing installations on board ship and a stronger

focus on daily monitoring of the vessel’s performance.

Thome’s Stig Holm.

TO



Data should beevaluated properly

Sverre Patursson Vange, head of performance management at Lauritzen Kosan,

speaking at Tanker Operator’s Copenhagen conference, said that there was a

lot of data available, but the problem was that it was not merged.

Lauritzen Kosan employs two

persons full time on vessel vettings

and audits and the whole

organisation, as well as the crew on

board is evaluated. Vange said that the

stakeholders were taking an interest in a

vessel’s performance, as well as the

company’s top management and technical

department.

The vessels are monitored on a daily basis

and the data is updated, or re-configured every

night, he explained.

He then outlined what performance data was

needed, what would be nice to have, what do

we have and what can be retrieved.

Vange said that the minimum data required

were speed, consumption, vessel condition

(ballast, or laden), plus weather data. This is a

“must know” in case of a commercial dispute,

such as related to a charterparty and this also

enables the simple evaluation of ‘raw’ vessel

performance.

Lack of quality and accuracy can limit the

evaluation’s reliability, however, a more

detailed analysis of vessel performance

requires more data, such as -

� Trim.

� Propeller - rev/min, torque and pitch for

those vessels fitted with a CPP.

� Main engine - rev/min, load percentage,

lubeoil consumption, turbocharger speed,

etc.

� Consumption and production of auxiliaries,

cargo plants, PSA plants, etc.

Some data might be available but just not

used, such as detailed data from weather

service providers, which can be obtained

based on time and position; plus main engine

performance reports, which maybe sent at

regular intervals, but is not gathered, or

trended, either on board, or in the office.

Another example of data not used is oil

sample analysis reports, which are just

archived in the mail system, he warned.

He suggested that managers should compile

an overview of what is available and what

eventually might be needed.

KPIsVange then addressed the establishment of

KPIs, asking - what can be measured and what

makes sense?

As for fuel efficiency KPIs, he outlined the

following -

� Fleet fuel efficiency - fuel used per unit

transport work (gt/nm), pseudo EEOI.

� Vessel speed loss - deviation from expected

speed for given consumption.

� Master - slip, deviation from theoretical

propeller distance to actual LOG distance.

� Chief Engineer - SFOC, fuel used to

produce power (g/kWh).

There are many more relevant KPIs, such as

vetting, deficiencies, crew related findings,

technical management, off service days (either

scheduled, or unscheduled), overdue

maintenance jobs, OPEX, HSSEQ, near miss

frequency, HR and officer retention rate.

He said that most of the information is

readily available but just tedious to collect and

present in a meaningful way.

When establishing a performance

management system, the data should be

accessible and clear. He suggested identifying

the sources of data; have mail queues, or

archives with standard reports; excel

spreadsheets maintained regularly and

programs used on board, or ashore.

Basic software/programming skills will be

needed, especially SQL, he advised. The data

should be copied from the various sources on

a regular basis, preferably each night and data

should be enriched where possible. The

weather information should be based on time

and vessel’s position and avoid using old data

from sold vessels.

Redundant data should be filtered from

different sources and the most reliable

identified, vessel performance data should be

normalised with respect to weather and the

data should be restructured and all the relevant

spellings of vessel name, crew, port, etc, are

identical, while the data should be split into

the lowest unit of interest to the recipient, ie

year/month/week/day/hour and/or minute.

The users should be identified, along with

the various types of users and finally,

automate the reporting style, he concluded.

Lauritzen Kosan’s Sverre Patursson Vange.

TO



At Tanker Operator’s Copenhagen

conference, he gave an insight

into performance management

from a commercial perspective.

He explained that from the outset, the

company wanted to have a direct link with the

pool vessels’ commercial value. The goals

were set out by the various owners, who made

up the pool’s board of directors and to put it

simply - be as profitable as possible.

To start with, as no historic data was

available, Hafnia took a ‘top down, bottom up’

view of the operation and started to collect

data from day one, which was collated by the

operations department and collected by a

weather service provider.

After six months of collecting information,

Hafnia had a very small data set - a total of 10

units in each of the two segments looked at.

Following another six months, it was realised

that the dataset was not set out in a usable

format.

Hafnia then identified the variables in its

business and from a commercial outlook. The

most important were -

� Time (speed-seagoing).

� Costs (bunkers -seagoing with main engine

and auxiliaries).

� In port bunker consumption.

It was found that the balance was more or less

equal, but it was not being monitored.

Pool points modelHafnia then produced its own performance

model, which is also today the basis for vessel

pool points. It is based on the philosophy

behind ShellTime IV and is input into an

Excel system.

Based on this dataset, Hafnia is able to see

the compliance with the vessel’s specific speed

and consumption instructions, vessels’ trading

patterns, the precise consumption figures

based on historical data and the performance

in good and bad weather, thus ensuring the

vessel adheres to the charterparty

specifications even in bad weather.

Rasmussen explained that this system

captures the relevant variables, which were

identified in accordance with the pool

agreement. He explained that the goal was that

the pool points reflected the capabilities of the

individual vessel through - transparency,

fairness and the value to the pool. He also said

that if there was a requirement for additional

monitoring, this would be up to the owner to

individually set up.

Each owner with a vessel(s) in the pool can

log into the data system and they are also

automatically sent a copy each month. Every

six months, the data is analysed, which

Rasmussen pointed out did not entail a lot of

work as the data was ongoing continuously.

The vessel performance data makes up the

basis for the pool points, which affects how

much money each vessel earns.

Vessel performanceequals pool points

An interesting perspective on shipmanagement from a commercial viewpoint was

recently given by Micheal Rasmussen, head of performance at

pool manager Hafnia Management.

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Hafnia’s Michael Rasmussen.

TO



Arecognised player in this key

maritime hub, WSS has

consistently developed and

refined its ships agency services

in order to keep pace with an ever-changing

market and an ever more focused portfolio of

global tanker customers.

Handling almost 4,000 port calls in 2014 for

an established international customer base

Jason Chin, WSS’ Ships Agency Service

Manager, explained what he and his team

provide tanker owners and operators calling at

the increasingly congested port.

“WSS is one of the largest suppliers of ships

services in Singapore, providing a wide range

of ships agency and husbandry solutions, from

crew changes, bunkering, repairs and general

supplies to customs clearance and arrival and

departure reports.

“A port such as Singapore is never closed,

and neither are we. Our port agents work in a

24/7/365 operation in every sense of the

word,” he said.

Which is good news, as Chin and his

agency team’s workload looks set to increase,

as Singapore’s vessel traffic continues to grow.

Encouraged by the drop in oil price, rising

demand in Asia for cheaper fuel has both

transformed tanker rates and increased traffic

bound for the East. Singapore is a key

benefactor of this growth in tanker traffic.

For example, the Maritime and Port

Authority of Singapore (MPA) statistics

showed that oil cargo handling at the port was

steadily increasing. In addition, preliminary

numbers for the start of 2015 for all three

tanker segments, oil, chemical and LNG/LPG,

showed positive growth.

Benefiting from ongoing local and regional

terminal developments, such as the completed

expansion of the Tankstore Terminal in Pulau

Busing and the soon to be completed Vitol

Tank Terminal International at Tanjong Bin,

Malaysia, the outlook for Singapore’s tanker

traffic appears to be positive.

However, Singapore’s steadily increasing

vessel numbers, pose a unique challenge for

the largest player in the agency market. As it is

not just the quantity and range of services,

which Chin believed set WSS apart from the

numerous local agency competitors in

Singapore, it’s the quality WSS consistently

delivers.

“It’s essential that we can offer a market-

leading service, which differentiates us from

local competition. By benchmarking our

service levels with the rest of the WSS

network we ensure that our service quality is

world-class and above all, cost-effective,”

Chin said.

Adapting and re-designing that service to

the real needs of the modern market enables

WSS’ customers to conduct their business

efficiently, consistently and importantly for

many of their international tanker customers,

globally.

Offering customers one single point of

contact, located in the local tine zone and

speaking the same language, helps to simplify

multiple port calls.

Providing a transparent pricing structure,

electronic disbursement accounts and just one,

do-it-all bank account for all port call

transactions, also helps streamline what can

often be an unnecessarily complex and time-

consuming process.

Committed to improving and standardising

the services, re-defining what ships agency

can offer its customers, regardless of the

challenges posed by vessel volumes or local

competition Chin is confident WSS can

succeed.

“My task is to ensure that we can continue

to work with our customers to provide those

high levels of service for which we have

become known throughout the industry, ” he

concluded.

*This article was written with the help ofJason Chin, Ships Agency Service Manager,WSS Singapore.

Ships’ agency vital tocommercial

managementConsistent service standards and a global network are helping to keep Wilhelmsen Ships

Service (WSS) ahead of the pack in Singapore’s choked ships agency market.*

WSS’ Jason Chin.

TO

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January saw the start of a new era at

BSM with Capt Norbert Aschmann

succeeding Rajaish Bajpaee as CEO

to lead the next phase of the

company’s growth, with a clear emphasis on

maximising the availability, safety,

reliability and operational efficiency of ships

under management.

Today, BSM has 150 tankers under technical

management - a mixture of gas, chemical,

product, oil up to VLCCs. They are managed

across various BSM ship management centres,

but primarily from Singapore, UK and Cyprus.

BSM also has its own training centres

worldwide and for specific tanker seafarer

BSM -safety,reliability and

efficiency in thetanker sector

Standfirst---With a change of leadership at the end of last year, Tanker Operator looked

at the scope of Bernhard Schulte Shipmanagement (BSM) today in the tanker sector.*



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THE FIRST BWT SYSTEM TO BESUCCESSFULLY RETROFITTED TO A VLCC

training, the centres in Cyprus, Mumbai and

Manila have comprehensive cargo and ballast

system simulators, covering oil, chemicals and

LNG/LPG cargo handling.

Training at all levelsTraining is delivered at all levels, for cadets

through to junior officers and senior officers.

Where appropriate, the courses are approved

by local administrations.

BSM operates a comprehensive cadet

programme and invests strongly in the

professional development of its seafarers, the

company told Tanker Operator. “We continue

to attract good competent tanker officers and

crew, where necessary, to supplement our own

talent pipeline,” the company explained.

Turning to operating efficiency, BSM has

established a dedicated ‘energy efficiency’

function in the group responsible for voyage

optimisation and has implemented KPIs both

ashore and afloat to further enhance the

operational efficiency of the organisation,

focused on delivering best value for money for

its clients.

BSM further explained that the majority of

its shipowner clients recognise the benefits of

investing in energy optimisation

equipment on board the vessels, in

line with achieving environmental

sustainability and corporate social

responsibility goals, together with

their economic advantages.

Answering the question

regarding the future of third party

shipmanagement concerns and

further opportunities going

forward, BSM said; “With a

continuing emphasis on the safe,

reliable and efficient operation of

ships, opportunities exist where an

owner’s primary focus of activity

is not on shipmanagement, or

where a strategic decision has been

taken to outsource to benefit from

the capabilities, scope and

economies of scale that high quality third party

shipmanagers are able to provide.”

As for the future of value added services,

BSM said that as the group already offers a

broad range of services that enable it to

provide comprehensive shipmanagement-

related solutions, BSM will continue to

innovate, develop and broaden these services

further in line with market and client

requirements and the group’s growth

objectives, the company concluded.

*A profile of BSM will appear in a future issueof Tanker Operator with a view to learningwhere the group would like to be in a few yearstime.

BSM’s new CEO Capt Norbert Aschmann.

TO


INDUSTRY - ANTI-PIRACY

These range from simple razor wire,

flares, water canon, detection

devices, etc, to full blow citadels.

For crew protection, citadels are

recommended, which can be located in almost

any enclosed room fitted with watertight doors

on board a vessel.

One of the problems to be overcome is the

virtual sealing of the citadels from attack. A

few years ago, UK-based Intelligent

Engineering’s SPS Citadel Access Protection

introduced a final barrier aimed at delaying

and deterring pirate attacks.

SPS* protection panels are specifically

designed to create a formidable final barrier to

prevent unauthorised entry. The panels are

usually fitted about 125 mm inside the existing

doorway and can be installed in newbuildings

and vessels already in operation.

Ian Nash, responsible for marketing the

system told Tanker Operator that watertight

doors open outwards instead of inwards like

normal doors. He said that standard watertight

doors were quite easy to pass through as their

hinges were exposed on the outside.

He described a typical citadel as an ‘onion’,

which has six or seven layers. In shipping

terms, these can include anti-pirate

intelligence, crew training for an emergency,

insurgent detection and communications alerts

for support. Inside the citadel, a first aid box,

water, plus enough food for a few hours, can

be stored.

The SPS system includes a solid steel

frame, specially designed panels and clamps.

The steel frame is claimed to be easy to install

by the crew in situ, following the instructions

given, or by specifically trained engineers

supplied by SPS, in around 10 hours.

SPS panels can be stored beside the door,

ready for use, Nash explained, as they can be

installed in 60-90 secs by the crew, as the

panels can be slotted into position, secured by

tightening tommy screws located in the

clamps.

Fully weldedThe frame is fully welded around the existing

doorway and the SPS panels are then secured

against the frame using specifically designed

clamps fitted on the top and to the side. The

barrier can take the form of a single hinged

SPS door, or the interlocking panels, which

can be put into position via clamps. Once

installed, the barrier forms a surface with no

attachments, such as hinges, or pinch points.

When closed, the SPS barrier can withstand

much higher impact loads than equivalent steel

structures, giving protection against ballistics

and shrapnel damage. In addition, European

Standard FB6 ballistic compliant panels made

from hardened steel are available. Nash

claimed that the panels were six times stronger

than their steel equivalents.

On a recently installed doorway, an SPS

client tested the door by repeatedly

hammering/stabbing the panels with 5 kg

sledge hammers, picks and pikes. The panels

proved extremely resilient, resisted

indentation, remained flat and secure after

multiple attacks, it was claimed.

In addition, ballistic tests conducted at

military facilities in the US, UK and Japan

demonstrated that SPS structures outperform

steel structures, the company said. Ballistic

tests by QinetiQ (UK) indicated that the risk

of penetration from projectiles is reduced by

75% and that these projectiles are stopped at

higher angles of attack. The test series also

demonstrated that SPS panels reduce the risk

of fragmentation (scab) from the outside

surface of the panel, which is a common cause

of injury to personnel and damage to property.

Nash said that around 75 systems have been

deployed with one oil major retrofitting all 60

vessels in the fleet, including those bareboat

chartered-in. The system comes at a relatively

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around £2,500, while a bespoke door would

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ranges with five panels and wider panels

available, if required.

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TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS

The first of the so called

IMOIIMAX-type - StenaImpression - is a product of

Guangzhou Shipyard and is a

50,000 dwt MR type designed to transport

vegetable oils, chemicals, as well as clean and

dirty petroleum products.

Ordered in 2012, this vessel and her sisters

are fitted with 18 tanks each with a maximum

capacity of up to 3,000 cu m under the IMO

type II ruling for chemical carriers. These are

made up of 16 cargo tanks and two slop tanks

per vessel. There is also a residual tank fitted.

The remaining nine tankers will be delivered

through 2017. The tankers will be split between

the UK and Bermuda flag administrations.

Developed in a joint venture between Stena

Teknik and the shipyard, a number of

innovative technical solutions have been

implemented, which when added together and

sailing at the service speed, result in 10-20%

lower fuel consumption, compared with other

vessels of the same size, Stena Bulk said.

Stena Impression is owned by a joint venture

of which Stena Bulk and Golden Agri (GAR)

each own 50%. The 10 IMOIIMAX tankers

will trade in Stena Weco’s global logistics

system, which already employs more than 50

vessels and they will be crewed and

technically-managed by Glasgow-based

Northern Marine - a Stena affiliate.

Some of the technical solutions fitted on

board that will result in more energy efficient

consumption and greater logistic flexibility,

include:

Super efficient MRdelivered

Stena Bulk has taken delivery the first of 10 MRs, which is claimed to be among the most

fuel efficient chemical/products tankers on the market.

IMOIIMAX Series Ownership ProfileName Owner

Stena Impression...........................................................Stena Bulk and GAR

Stena Image....................................................................Concordia Maritime

Stena Imperial.................................................................Stena Bulk and GAR

Stena Important..............................................................Concordia Maritime

Stena Imperative............................................................Stena Bulk

StenaWeco Impulse.......................................................Stena Weco

Stena Imagination..........................................................Stena Bulk and GAR

Stena Immortal...............................................................Stena Bulk and GAR

Stena Immaculate...........................................................Stena Bulk and GAR

Stena Impeccable...........................................................Stena Bulk and GAR

The Stena Impression and her sisters are fitted with many energy saving devices, as well as an aerodynamic accommodation block. Notethe offset stack.



� Main engine auto-tuning - with an auto-

tuning system, the combustion process in

each cylinder is continuously automatically

controlled for optimal main engine

performance.

� More efficient boiler with recovery from

multiple heat sources - the vessel is also

equipped with an exhaust gas multi-inlet

composite boiler, one of the very first to be

installed. This boiler not only recovers

energy from the main engine’s exhaust gas

but also recovers the exhaust gas from the

auxiliary engines.

In addition the boiler has an oil-fired section

that can be used in port, thus avoiding the need

to run the larger oil-fired boilers to heat the

vessel. This, together with main engine auto-

tuning and part-load optimisation of the

auxiliary engines, will result in very energy

efficient consumption.

� Recovery of propeller energy loss - all

propellers lose some of the energy input in

the rotating water behind the propeller.

With the IMOIIMAX, the energy loss is

recovered by the fitting of a hub vortex

absorbing fin of the HVAF type supplied

by CSSRC.

� Aerodynamic design of the accommodation

and bridge - in heavy weather, wind

resistance can be significant. The

streamlined design of the accommodation

and the bridge means that the IMOIIMAX

is less affected by wind resistance than

other similar vessels.

� All of the cargo tanks are designed to carry

any type of cargo the vessel can transport-

the IMOIIMAX has 16 cargo tanks of the

same size designed to hold a maximum of

3,000 cu m, ie, the maximum volume

permitted for the cargoes that the vessel

can transport.

� Effective tank-cleaning system -the

flushing system installed ensures that the

cleansing process is optimised and since

four tanks can be washed simultaneously,

the time between discharge and loading can

be minimised.

Stena Bulk said that the IMOIIMAX project is

an important step in the company’s common

pursuit to create a more sustainable shipping

concept, combined with a flexible design to

offer customers better business solutions at

competitive freight.

The hull lines, engines and the propeller

were extensively tested in a towing tank, which

resulted in a well performing design. The

company claimed that no stone had been left

unturned to ensure reduced bunker

consumption, as the vessels are equipped with

the latest concepts in main and auxiliary engine

designs.

For the main propulsion plant, MAN Diesel

& Turbo’s (MDT) MAN6S50ME-B9.3 type

“Flexibility has been a keyconsideration during thedevelopment of the IMOIIMAXconcept. The configuration ofseveral small tanks providesfor considerable flexibility inregards of cargo combination,something that fits in very wellwith our existing logisticssystem. The fact that theconcept, with its manyinnovative technical solutions,will result in energy savings isnaturally a major advantage,”said Erik Hånell,Stena BulkCEO.

Talking with Tanker Operator, Hånell

explained that the calculations on fuel

savings were taken at bunker costs ranging

from about $300 to $900 per tonne and

despite today’s fuel price in the lower

range, the vessels were a long term

investment of up to 25 years, during which

time the company expected bunker prices

to rise again.

Based on their design, new trades will

open up for the vessels going forward and

at an extra $2,000-$3,000 per day, the

return on investment would be seen in

about four to five years. He expected the

demand for product tankers in all sectors

would create reasonable returns by 2017,

but that this year would be similar to 2014,

due to high vessel delivery rates.

He explained that the Stena Weco

operation was a joint venture concern

between two companies rather than a pool,

as both companies owned ships. The only

pool that Stena Bulk is currently involved

in is the Stena Sonangol Suezmax

operation. However, he said that the

company was constantly looking for other

opportunities to form partnerships. He

cited the Stena Weco joint venture

operation as a good example of a

successful tie up.

The company started its fuel

consumption programme about three years

ago and since then, has managed to save

around 5-10% of fuel per annum. He said

that this had been a continuous

development with both shore and vessel

personnel, as the vessels become more

sophisticated with monitoring and

development, leading to ongoing education

on how people act.

Hånell explained that Northern Marine

and Stena have a considerable training

budget for both shore staff and seafarers

with a clear focus on safety. �

Flexibility is key

The aerodynamic bridge design can clearly be seen, as can the relatively clear deck space.



Classification.Lloyd’s Register 100A1, Double Hull Oil and Chemical

Tanker ESP, Ship Type 2, CSR, LI, IWS, ShipRight (CM, ACS(B)) LMC,

UMS, IGS, NAV1, IBS, ECO (BWT, VECS, IHM, TC)

Descriptive Note: ShipRight (SCM), Effective Tank Cleaning less than

4%.

DimensionsLength, overall................................................................................183.2 m

Length, bp.......................................................................................178.5 m

Breadth, moulded...........................................................................32.26 m

Depth, moulded................................................................................18.2 m

Design draft, moulded........................................................................11 m

Scantling draft, moulded.................................................................12.9 m

Deadweight, design.......................................................................38,900 t

Deadweight, scantling...................................................................49,400 t

Cargo volume (100%).............................................................54,000 cu m

Cargo arrangementsCargo tanks.........................................................16 COT + 2 slop + 1 res

Segregations, double valve..............................................................8+2+1

Tank coating......................................................................phenolic epoxy

Cargo pumps (deepwell)................................................18 x 375 cu m/hr

Tank cleaning...................................................................54 fixed nozzles

Tank heating..............................................steam heating coils SUS316L

Level gauging.............................................................................radar type

MachineryMain engine..................................................................MAN 6S50ME-B9.3

Auxiliary generators..............................................................4 x 1,000 kW

Design speed...................................................................................14.5 kn

Propulsion fuel oil consumption, service...................................28 t/day

Domestic fuel oil consumption, normal at sea.............................3 t/day

Boilers...........................................................2 x auxiliary, 1 x composite

Fuel oil tank capacitiesHFO............................................................................................1,050 cu m

LSFO.............................................................................................500 cu m

MDO............................................................................................. 480 cu m

MGO..............................................................................................120 cu m

PRINCIPAL PARTICULARS - IMOIIMAXmain engine was chosen, as it has a higher fuel

efficiency at part load operation, compared to

earlier versions.

IMOIIMAX is optimised to perform well

over a range of loading conditions and speeds.

The low load optimisation of the main engine,

which includes an exhaust gas by-pass,

contributes to an overall excellent performance,

the company said. With an MDT auto-tuning

system fitted, the combustion process in each

cylinder is continuously automatically

controlled for optimal engine performance in

all conditions.

Normally auxiliary engines are fuel

optimised for high load operation, rather than

part load operation. However, today part load

operations are becoming a higher percentage of

normal operations. For IMOIIMAX, the new

MAN auxiliary engines have been part load

optimised to improve their overall performance

and to reduce fuel consumption.

The vessels are fitted with an integrated

bridge systems that allows access of all

essential navigation information from

centralised workstations. System components

include two radars, three ECDIS, conning

display, two gyro compasses, auto pilot, two

DGPS, Navtex, speed log, AIS and an echo

sounder.

The series are also equipped with a Kyma

ship performance system for better and

efficient on board control of the equipment,

resulting in energy savings and thus reducing

the environmental footprint of the vessel.

Two Alfa Laval oil fired boilers provide for

flexibility and redundancy, which is of

particular advantage when carrying heated

cargoes. In many instances only part steam

heating capacity is required. In such cases,

both boilers can be run efficiently instead of

having only one big boiler operating at high

power, the company said.

The vessel is also equipped with an Alfa

Laval exhaust gas multi-inlet composite boiler.

This boiler not only recovers energy from the

main engine’s exhaust gas but also recovers the

exhaust gas energy from two of the auxiliary

engines. In addition the boiler has an oil- fired

section providing for an adapted steam

production to suit the vessel’s domestic steam

demand without the need to run the larger oil

fired boilers.

An IMOIIMAX can load a full IMO type II

cargo in each of the cargo tanks. A high

performing Jotun cargo tank coating will help

to ensure that the charterers will have the full

flexibility to carry an extensive range of

products and chemicals at the desired

temperatures, the company said. Jotun also

supplied the hull coatings.

Instead of simpler coated mild steel piping

with flanged couplings, the cargo piping is of

stainless steel in order to comply with FOSFA

recommendations and for the chemical trades.

The deepwell hydraulic FRAMO (Alfa

Laval) cargo pump system provides full

flexibility thus enabling all cargo pumps to be

run and controlled individually, at the same

time. Consequently, a high cargo discharge

capacity is offered together with a high degree

of flexibility of cargo circulation.

A nitrogen-based inert gas system is also

fitted to each tank. Clean nitrogen instead of

traditional inert flue gas will decrease the time

between discharge and loading, due to faster

tank cleaning. There is no need to carry

portable nitrogen bottles for purging and/or

cargo tank padding.

From a fuel efficiency viewpoint, inert gas

generation by means of a nitrogen generator is

also more fuel efficient, compared to a

traditional inert gas generator, Stena Bulk said.

The Scanjet tank cleaning system provides

for four tanks to be washed simultaneously

with heated, as well as cold sea and fresh

water. Fulfilling Lloyd’s Register voluntary

class notation Effective Tank Cleaning, the tank

cleaning machines have been arranged to

minimise the shadow areas, which maximises

efficient tank cleaning operations, in turn

minimising the time between discharge and

loading.

Following the naming ceremony held in

Singapore at the beginning of February, StenaImpression sailed for the US with a cargo of

palm oil. TO



The tank segregations canbe clearly seen, as can theaerodynamic bridge design.



It is notable that the regulations contain

a provision for chemical tankers to have

the option to inert prior to discharge

rather than prior to loading, IPTA

general manager Janet Strode pointed out.

This was agreed in recognition of the fact

that the operational requirements on chemical

tankers are different to those on oil tankers,

most notably in that there are a great many

tank entries required on chemical tankers,

associated with the heavier tank preparation

and inspection requirements prior to loading

chemical cargoes, she advised.

It has also been necessary to take into

account cargoes that require oxygen-

dependent inhibitors and in January, the IMO

sub-committee on Pollution, Prevention and

Response (PPR) at its second meeting agreed

to a unified interpretation in this regard. PPR

has replaced the BLG sub-committee in the

new IMO structure.

Apart from inert gas systems, the January

PPR2 meeting agreed to new entries to

MEPC.2/Circ on the provisional

categorisation of liquid substances in

accordance with MARPOL Annex II and the

IBC Code in its discussions on the evaluation

of chemicals safety and pollution hazards with

a view to preparing consequential

amendments

The sub-committee also said that it had

noted discussions within the ESPH group

regarding petrochemical mixtures submitted

for assessment under Annex II, but which

technically belong to Annex 1 substances. It

agreed to seek MEPC guidance on how the

products should be addressed by the ESPH

working group.

In addition, the meeting agreed to include a

generic entry for used cooking oil in

MEPC.2/Circ List 1 with validity for all

countries without and expiry date and noted

the ESH group’s progress regarding the

revision of the IBC Code’s Chapter 21.

As for the next meeting- PPR3,

provisionally scheduled for 15th-19th

February, 2016, the following list of subjects

will be reviewed by the chairman, taking into

account the submissions received on the

respective subjects where it affects the tanker

sector-

1) Safety and pollution hazards of chemicals

and preparation of consequential

amendments to the IBC Code;

2) Revised guidance on ballast water

sampling and analysis;

3) Production of a manual entitled ‘Ballast

Water Management – How to do it’;

4) Consideration of the impact on the Arctic

of emissions of Black Carbon from

international shipping;

5) Revised section II of the manual on oil

pollution contingency planning;

6) Guide on oil spill response in ice and snow

conditions;

7) Updated IMO Dispersant Guidelines;

8) Updated OPRC Model training courses;

and

9) Guidelines pertaining to equivalent

methods set forth in MARPOL Annex VI

Reg 4 and not covered by other guidelines.

Ms Strode said that she will be covering

issues, such as the review of the IBC Code, at

the IPTA/Navigate Chemical and Products

Tanker Conference in March.

Other subjects to be covered at the two-day

conference on 17th-18th, March, include -

� Ballast water management.

� Greenhouse gas emissions from shipping.

� The case for operational efficiency

standards for international shipping.

� Bunker quality and enforcement.

� The shale gas revolution and its impact on

the chemical industry and global shipping

trends.

� Product & chemical tanker market

overview.

� Ship finance.

� Middle East refinery review.

There is also an optional half day workshop

on 19th March looking in depth at the impact

of low price oil on shale gas, petrochemical

production and petrochemical shipping.

Inerting chemicaltankers and otherissues discussed

TO

The SOLAS amendments on inert gas systems for new chemical tankers was finally

adopted at the IMO’s MSC 93 meeting last June and will enter

into force on 1st January, 2016.

Ocean currents can make, orbreak the economies of anocean passage.

AWT’s services have long since evolved

beyond the optimal weather route for a

particular passage, Mike O'Brien, AWT’s

senior operations manager, said.

Besides maximum wind, sea and swell

conditions, AWT also examines speed, fuel

consumptions inside ECA/SECA zones, non-

ECA steaming speeds and a variety of other

constraints that are acceptable given the load

condition of the vessel.

However, ocean currents.are among the

most important factors to consider when

optimising a route. Their influence will vary

considerably based on several factors, but

most importantly the speed and heading of

the ship.

�

Don’t forget ocean currents

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TECHNOLOGY - SHIP EFFICIENCY

Astudy (MEPC58/INF.21) by the

IMO indicated that while weather

routing can achieve a 2-4%

reduction in fuel consumption and

associated greenhouse gas (GHG) emissions,

even greater improvements can be achieved

through technical and operational measures,

such as speed and route management and fleet

deployment planning.

Boeing subsidiary Jeppesen has launched the

Vessel and Voyage Optimization Solution

(VVOS) to deliver a return on investment that

is claimed to exceed traditional weather routing

methods. This article discusses the effects of

key issues in voyage optimisation.

The advent of supercomputers and numerical

models has significantly improved the accuracy

of weather forecasts over the past decade.

However, the accuracy of each model varies,

due to model resolutions, how the physics are

implemented and many other factors. The

national forecasting centres tend to calibrate

their models to perform better when storms

threaten their own countries, but pay less

attention to mid-ocean storms passing shipping

lanes.

None of the models can consistently produce

accurate forecasts for tropical cyclones, due to

their complex physics and rapid development.

Human forecasters are employed during the

typhoon, or hurricane seasons to issue track

and intensity forecasts based on consensus of

model outputs, as well as past experience.

Depending on the location and season, the

accuracy starts to deteriorate after three to five

days, leading to even larger uncertainties

between five and seven days.

Use of ensemble forecasting allows the

quantifying of the uncertainties in the

Voyage optimisationsupersedes

traditional weatherrouting

While numerous weather routing service providers claim to save fuel and increasemaritime safety and schedule reliability, ships still founder and hundreds of lives

are put at risk. A significant improvement on this dated concept comes in the shape of voyage optimisation.

Figure 1. Distance, fuel and motion comparison between three alternative routes for thesame arrival time.

Figure 2. Histograms displaying passage fuel consumption and ETA of alternative routesusing 22 members of ensemble forecast.

prediction. It is now possible to estimate the probability of exceeding a

given threshold, eg, 7 m of wave height under a nominal forecast of 5

m. The threshold can be established based on motions and seakeeping

events, which define the risk of heavy weather damage.

While the southern route in Figure 2 yields less uncertainties for

on-time arrival, it would also consume considerably more fuel than the

recommended northern route. This type of simulation offers the user

the ability to trade off fuel consumption versus ETA and to estimate the

schedule reliability for planning port/terminal operations.

Most weather routing software solutions use variations of Dijkstra’s

algorithm, in which the program simulates a vessel departing with full

power toward the arrival port with different headings. After each time

interval (eg, six hours), the ship’s dead-reckoned position forms a so-

called isochrone until it arrives at the destination.

Speed managementUnfortunately, the problem with such an approach is that the algorithm

ignores one important option -speed management. As storms move

across the ocean, it is possible for the ship to slow down and let them

pass and then catch up, instead of sailing a longer distance to go

around, or ‘hove-to’ in bad weather. Such a strategy not only

significantly reduces fuel consumption for a given arrival time, it also

reduces the risk of heavy weather damage when fully implemented

with ship response and engine overload.

If speed and heading are both considered in the route optimisation

algorithm, the computation will be more accurate because it solves for

a multi-dimensional problem. Without the fundamental principle of

modelling the ship’s performance in various loading and environmental

conditions, it is not possible to minimise the fuel consumption for a

given arrival time without exceeding the safe operating limits.

Cost-cutting trends in the shipbuilding industry and marine

classification societies have resulted in reduced design safety margins

in ship structures. Shipyards use sophisticated finite element models

and high tensile steels to reduce steel weight and production costs in

order to be competitive. Similarly, the propulsion systems are often

optimised for calm weather trial conditions in order to satisfy the recent

IMO Energy Efficiency Design Index (EEDI) requirement.

One such design consequence is the coupling of slow-speed diesel

engines with direct-drive high-pitch propellers and low acceptable sea

margins. In calm weather conditions, a lightly loaded vessel with a

clean hull easily maintains the contracted speed in accordance with the

EEDI requirements. Unfortunately, such practice will lead to frequent

engine overloading when the ship encounters high wind or seas, or

when there is higher resistance caused by propeller and hull fouling.

A ship slows down either involuntarily, due to increased resistance

from the wind and waves, or voluntarily, due to navigation hazards or

fear of heavy weather damage from excessive ship motion, propeller

racing, slamming, or boarding seas.

The optimised route solution must take both involuntary and

voluntary speed reductions into account when estimating dead-

reckoned ship positions in relation to the movement of weather

systems. Otherwise, the recommended route could lead the ship into a

dangerous situation.

Furthermore, if weather routing tools cannot predict such events,

they can lead to over-predicted ship speed and wrong diversion

decisions when facing heavy weather, not to mention inaccurate

estimates of fuel consumption and time of arrival.

The capabilities of weather routing have evolved into the science of

voyage optimisation in order to bring added benefits in ship design and

operational logistics.

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TO



Air lubricationsystem tested on a

products tankerSilverstream Technologies and Shell recently conducted successful sea trials of an air

lubrication technology for ships, the patented Silverstream System.

The sea trials, independently verified

by Lloyd's Register Ship

Performance Team, show net energy

efficiency savings in all analysed

cases, the company claimed.

Shell funded the exercise and together with

Silverstream, oversaw the installation of the

system on the 40,000 dwt products tanker

Amalienborg, owned by Dannebrog Rederi and

operated by Stena Weco.

“This is a landmark moment for Silverstream

Technologies and the development of our air

lubrication technology, confirming it as a

current and commercially viable solution for

reducing fuel costs and emissions within the

shipping industry,” said Noah Silberschmidt,

the company’s CEO.

The trials verified by LR showed net average

energy efficiency savings of 4.3% and 3.8% for

the vessel in ballast and laden conditions,

respectively. The figures represent an average

from all raw data captured during each trial,

which included optimal and non-optimal air

flows.

Based on the trials, both Silverstream and

Shell believe that a fully optimised system has

the potential to deliver more than 5% efficiency

savings on an ongoing basis when deployed on

a full-bodied vessel with a large flat bottom.

The Silverstream system produces a thin

layer of micro-bubbles that creates a single ‘air

carpet’ for the full flat of bottom of the ship.

This reduces the frictional resistance between

the water and hull and improves the vessel’s

operational efficiency, reducing fuel

consumption and associated emissions.

The technology can be added to a newbuild

design, or quickly retrofitted to an existing ship

within just 14 days, as was the case with the

Amalienborg.

“This is a landmark moment for Silverstream

Technologies and the development of our air

lubrication technology, confirming it as a

current and commercially viable solution for

reducing fuel costs and emissions within the

shipping industry,” said Silberschmidt.

“Following this successful trial, we are

confident that we can enhance the already

significant savings that we have seen. We

believe these results show that the Silverstream

system can play a crucial role in supporting the

shipping industry to increase operational and

environmental efficiencies and reduce fuel

costs,” he continued.

Dr Adri Postema, general manager Shell

Shipping & Maritime Technology, said: “We

constantly look for ways to improve our

shipping efficiency, both operationally and with

innovative technology. Our maritime technical

experts worked closely with Silverstream

Technologies, Lloyd’s Register and a number of

other parties to achieve a successful trial of this

promising technology.”

Nick Brown, LR’s COO, Marine, in

commenting on the project, said: “Shipowners

and operators need to trust the savings and

return on investment calculations that

manufacturers claim. This trust can only be

built by ensuring rigour and transparency

within the trial process, to ensure the highest

level of accuracy in the projected figures that

are communicated to the market. The sea trials

for the Silverstream system have been

conducted in such a way, with independence

ensured throughout.”

Johnny Schmoelker, CEO, Dannebrog

Rederi, commented: “Given impending

stringent environmental regulations that will

further increase operational costs, energy

efficiency technologies that can reduce fuel

consumption and associated emissions are

critical in limiting the bottom line impact for

shipowners and operators. We are proud to be

the first owner to install the Silverstream

system and demonstrate the efficiency gains.”

A BMT SMARTACCESS and

SMARTVESSEL performance monitoring

system was fitted to the vessel to record data

from the trials. These will continue to monitor

the system’s performance over the next 12

months during normal shipping operations.

Prior to the sea trial, Hamburg-based

hydrodynamic research company HSVA had

worked closely with Silverstream Technologies

to test the technology.

The Amalienborg was retrofitted with the

Silverstream system in just 14 days and

following harbour acceptance tests and under

the direct supervision of LR’s Ship

Performance Group (SPG), a series of 52 single

runs under ballast load conditions at 6.9 m

draught was conducted in the Kattegat under

ideal environmental conditions during March,

2014.

A subsequent laden condition trial conducted

on a constant heading, due to operational

restrictions (10.6 m draught), was completed

six months later.

Trials were recently conducted on the Handysize products tanker Amalienborg.



The procedures for both trials was specified

by LR and conducted in line with LR, STA and

ITTC recommendations and in accordance with

acceptable trial control criteria pertaining to

weather, water depth, rudder control, system

steady state criteria and hydrostatics.

A full analysis of the trials data was

conducted by SPG with the following

conclusions drawn:

Ballast trials

� The performance of the system varied with

speed and air settings applied. Comparing

measurements of either the shaft power

with the Silverstream system power, or fuel

flow for the main engine, including the

diesel generators, a modal average saving

of 5% was demonstrated for all data

captured during the trial (difference

between the baseline and Silverstream

system being switched on).

� A mean average power saving of 4.3% was

found for the vessel over the sea trial,

which including the Silverstream system

power and increase in drag caused by the

cavities.

� The air -in the form of a rigid ‘carpet’ of

micro-bubbles - was found to pass down

the whole length of the ship’s hull.

� The Acoustic Emissions signals showed no

increase in excitation levels when the the

system was switched on. This indicated that

cavitation excitation was not increased by

air ingestion into the propeller. No

shiphandling issues were reported by the

crew with the system in operation.

Laden Trials

� At all speeds tested, the system

demonstrated performance improvements

in both power and fuel consumption,

against the baseline (no air) curves.

The mean average net power saving of the

trial was calculated as 3.8%, against specific

CFD baseline calculations of the vessel in the

trial deep loaded condition. This compared

measurements of the total of shaft power and

Silverstream’s power against the vessel

without cavities fitted.

Based on the experience and results of the

trials, Silverstream has further optimised the

system’s design and engineering, which is now

ready for commercial launch.

The laden and ballast trial figures represent a

mean average result of all raw data captured

during each trial, in conditions where speed,

system air content and draft were effectively

balanced, thus providing an optimal

performance response, as well as in instances

where they were not, the company

confirmed. TO

Air bubbles cover the vessel’s flat bottom.



Per Holmvang, DNV GL’s programme director

environmental technologies revealed in a recent presentation

that at least 10 suppliers are now producing fuel oil of about

1% sulphur content.

These include ExxonMobil, BP, CEPSA, Neste, Lukoil, Bominflot,

Gazprom, Caltex, Shell and ConocoPhillips.

He explained that the new fuel’s characteristics included a viscosity

of about 50 cSt; there were no residuals, or cat fines; they have a high

flash point; they are aliphatic with no aromatics; give good ignition and

combustion, but may need separation and heating.

There were a few question marks hanging over the new fuel, such as

its stability and compatibility, its cold properties/wax (PP0-20), its

lubricity, microbiological growth and of course the question of price,

which is any where between $20-$50 below MGO, depending n the

prevailing fuel price at the time of purchase.

DNV GL is marketing a fuel changeover calculator- which will give

a user the optimum time to change from heavy fuel oil to low sulphur

fuel oil before entering an ECA .

Holmvang explained that the goals were to optimise the lead time,

minimise the fuel cost and to undertake a safe changeover.

The specific factors for shipboard use are the HFO and LSFO, the

vessel’s fuel consumption and the fuel system’s layout. Will

modifications be needed? Are there temperature constraints? Is the fuel

compatible?

He warned that inspections would include the fuel log book, bunker

delivery note, the records and certificates. Also, the bunker fuel will be

sampled and a check will be made on the ‘equivalent measures’.

Future testing technologies could include testing smoke from a

helicopter and/or unmanned drones, or a ‘sniffing’ type device, for

example fitted on the Great Belt Bridge.

The current status is only around 1% of vessels have their fuel

sample tested each year and what worries some authorities, including

the Danes, is that the non-compliance fines will be nowhere near the

savings that can be made by not changing fuel when entering an ECA.

Inspections need to be intensified, otherwise those choosing the non-

compliance route will have an unfair competitive advantage.

Questions over fuelsin ECAs

To offer low sulphur fuels of around 1% sulphur content, several fuel suppliers

have produced a new type of bunker fuel.

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TO



Monitoring emissionsdata

DYNAMARINe’s emissions monitoring data system has been on the market for about

two years and currently there are about 240 vessels in the scheme of all types.

The company claimed that the

system is “pioneering” in that it

allows real time benchmarking

with similar vessel types and not

just individual fleets.

The software allows for online reporting

from the vessel, as well as form-based

reporting and it is claimed to be a smart

system by which a Master can only input the

correct data and cannot input inconsistent data.

It is web-based and produces daily

performance data in comparison to older

submitted data and in addition, it includes a

garbage reporting module.

The company explained that it will soon be

integrated enabling real time data to be

accepted from other providers, thus managers

will be able to use one platform for all their

vessels, both systems reporting real time data

and noon data.

Another plus point is that it only costs

around €400 per vessel per year, the company

said.

DYNAMARINe has designed this

information system for data reception on a

daily basis. Data can be submitted in various

formats in order to be adopted in the current

messaging system of each vessel. By using

this method, the capacity of message in kb

will be optimised in order to minimise

transmittance costs.

The data will be automatically sorted and

stored in a cloud database for instant analysis.

Various indices will be calculated in order to

verify ship performance and distinguish

possible inefficient procedures.

Comprehensive charts will give an in-depth

view of vessel functionalities and offer the

user numerous possibilities for thorough and

systematic analysis.

As mentioned, there is also an advanced

feature, where the user will be able to make

comparisons with other sister vessels and

evaluate his/her vessel’s behaviour based on

many different criteria.

The company overview feature will

summarise all the important information in a

tabular format, for the whole ship, in one

comprehensive screenshot. With this feature

there is no need to go through all the noon

reports, if there is not a specific issue to

examine.

Customised reportThe reporting feature will provide the user

with a customised report for the ship’s

performance with comparative data from other

sister vessels of the same company and from

other companies as a benchmark.

Furthermore, the system will offer to the

end user extensive company reports, where the

overall performance of the company will be

presented, also in a customised view.

This online information system will offer

the user an instant access to the vessel status

(consumption, carbon footprint, etc) at a

minimum cost.

DYNAMARINe said in a presentation that

managing ships energy efficiency is a complex

issue, due to the nature of the factors involved.

It has to be part of an integrated process,

which will apply to the operation of the whole

fleet.

There is no single metric, which defines

success, or failure in the process for improving

the overall efficiency. In order to have a viable

and sustainable solution, the management

must promote feasible targets and objectives

and set correct priorities on the basis of

trustful data.

Measures for improving ships energy

efficiency can only be effective if focused in

the right direction with the use of correct tools

and if applied for ship specific needs, the

company said.

The best results for a total solution approach

can be achieved if these basic steps are

followed:

1) Clearly define quantifiable targets and set

objectives that are feasible and practical.

Do not follow complicated solutions that

are hard to implement and capital intensive,

just follow realistic goals. Each time you

reach your target, renew your objectives

and set new milestones.

2) Facilitate reliable data from the ships and

filter inconsistencies. Having accuracy in

the data is the only tool to build a reliable

monitoring system, which can offer real

conclusions and trigger actions. The

existence of inconsistencies will divert the

user from the target and will jeopardise the

milestones set.

3) Use comprehensive analytical tools for

shore personnel, to easily identify non-

efficient performances. Promote a

constructive and intuitive evaluation

process for the measures implemented. Use

visual tools and displays to assess the

information.

4) Use benchmarking analysis and compare

similar individual ship performances in

order to extract measurable indicators and

compare performances.

5) Create automated and standardised

reporting tools to assist personnel gather

the information and use it to extract valid

conclusions.

6) Develop and maintain a comprehensive

SEEMP, which will include selective

actions and measures and also promote

relevant KPIs in order to easily measure

performance;

7) Always invest in training for all levels of

management and crew personnel.

By following these crucial steps, all vessel

operators will be able to correctly manage

their fleet energy performance and initiate

actions for efficient management.

DYNAMARINe’s emission monitoring system

is based on these principles and guides

shipowners with analytical tools and

automated controls and reporting, the

company said.

Among the shipping companies that use this

tool are Pacific Ship Managers, Ionia

Management, herning (now Nordic Tankers),

Alba Tankers, BSM Group and Enesel. TO


TECHNOLOGY - TANK SERVICING

This is not just for the owners and

operators of these vessels, but also

for the charterers, who suffer

unnecessary delays while vessels

are cleaning to a standard that is firstly

completely unjustifiable in many cases and

secondly - does not actually guarantee that the

next loaded cargo can be loaded successfully

and within specification.

In this same article, I noted that historically

only a handful of cargoes used to demand a

wall wash inspection, typically methanol,

ethanol, MEG, HMD, etc. However, today, the

list is out of control, ncluding recently, a cargo

of jet fuel, which granted, requires the cargo

tanks to be perfectly clean and dry, but was

only loaded prior to a wall wash inspection in

all cargo tanks for the following criteria:

Wall wash with DI water to test for a

maximum sodium content of 1 ppm.

Wall wash with Hexane to test for a

maximum NVM content of 10 ppm.

Wall wash with Methanol to test for a

maximum organic chlorine content of 1 ppm

and a UV scan through a 5 cm cell (smooth

curve).

The charterers of the vessel later admitted

that they were ‘unaware the vessel had

stainless steel cargo tanks’ and ‘perhaps a wall

wash inspection was not required’. This

surprising lack of understanding sadly reflects

the reality that owners/operators of tankers are

consistently and unnecessarily expected to

over-clean cargo tanks to a level of cleanliness

that is just not required to load the vast

majority of cargoes.

There are many negative consequences

related to over-cleaning and/or cleaning to a

standard that does not guarantee that the next

cargo can be loaded successfully, but

one of the most serious is also

generally one of the most over-

looked; and that is confined space

entry.

Each time a cargo is fixed to a

wall wash specification, there are

numerous confined space entries, not

only for the vessel’s personnel, but

also for the third part inspectors and

sometimes also, the terminal

operators.

The only reason for multiple cargo

tank entries during tank cleaning

operations is to ensure compliance

with pre-loading inspection

specifications and, if this is a wall

wash specification, generally there

will be a minimum of two additional

entries per cargo tank per tank

cleaning operation.

Wall wash isdead..long livewashing water

samplesAs I wrote in Tanker Operator in the August/September 2014 issue, the wall wash

inspection prior to loading chemical cargoes is starting to suffocate

the operational flexibility of chemical tankers.*

L&I WAVE II UV/Vis spectrophotometer.



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Thus, for a vessel with 20 cargo tanks, this

equates to 40 tank entries for the crew, plus 20

tank entries for the surveyors, plus another 20

tank entries for the crew member

accompanying the surveyors. A total of 80

separate confined space entries. And all for

what? To pass a wall wash inspection that

does not actually guarantee that the next cargo

can be loaded successfully.

According to all of the oil and chemical

majors, confined space entry is one of the

most unsafe practices, whether it is on board a

tanker, or inside a refinery. Indeed, the new

SOLAS regulation III/19 noted in the

January/February 2015 edition of TankerOperator only adds more gravitas to the risks

associated with this practice, yet this is

seemingly being widely ignored for

commercial benefit.

Moreover, when the new rules surrounding

the inerting of chemical tankers are

implemented from January, 2016, it is

inevitable that the vessels will have to deal

with tank cleaning from a mixture of the

previous cargo and nitrogen. Consider that

nitrogen is invisible, has no smell and is

commonly referred to as the silent killer and it

is clear that the risks associated with cargo

tank entry will only become even more

serious.

Over the years, there has been a heavy

clamp-down on manual tank cleaning with

flammable/toxic chemicals on safety grounds,

but it should be clear that the only reason why

vessels have to even consider cleaning with

these types of materials is to meet pre-loading

inspection specifications, that as noted, have

no direct influence on the ability of the vessel

to loaded the next nominated cargo

successfully.

Perhaps a better way of dealing with this

situation would be to remove the need to use



flammable / toxic chemicals in the first place?

The safety risks associated with carrying out

the wall wash inspection now appear to far

outweigh the significance of the wall wash

results, meaning there is a clear and defined

need for an alternative process that will allow

shipowners/operators and charterers to

determine cargo tank suitability prior to

loading, without having to resort to confined

space entry.

This process is Washing Water Analysis;

identifying how much of the previous cargo

has been removed from the cargo tanks, as

opposed to measuring what has been left

behind on the walls after tank cleaning. The

process allows for dynamic measurement of

cargo tank quality using the L&I WAVE II

UV/Vis spectrophotometer, which not only

significantly reduces cargo tank entry, it also

measures the cleanliness of the entire internal

surface area of the cargo tanks and the cargo

lines, unlike the wall wash inspection which

only measures the lower 10 – 15% of the

internal surface area and none of the cargo

lines.

Vessels now have the ability to monitor tank

cleaning operations, live, without having to

stop the cleaning, gas free the cargo tanks,

enter a confined space and take a wall wash

sample, to decide whether additional tank

cleaning needs to be carried out or not.

This not only saves time (which has a

positive influence on rest hours), it also

creates the potential to reduce fuel

consumption (by allowing the vessel to stop

cleaning when a specific cleaning step ceases

to be effective) and to save cleaning

chemicals, based on the simple fact that if all

of the previous cargo residues have been

removed, there is no need to use chemicals for

the tank cleaning. This process is not possible

without instrumentation that generates instant

data that directly influences the tank cleaning

process.

Essentially, tank cleaning can continue,

under fully inerted conditions, without any

need for cargo tank entry, until the cargo tanks

are free from the previous cargo.

The graph on the previous page shows the

results of a cleaning operation from styrene

monomer. It can be seen that the last sample

(which was taken during hot freshwater

washing), shows that the washing water

contained a little over 1 mg/L of styrene

monomer. The vessel successfully loaded

MEG FG afterwards.

The process can also be used to assist

vessels cleaning from Annex I to Annex II

cargoes, as evidence that the oil residues have

been removed from the cargo tanks:

The process of washing water analysis is

currently being carried out by a number of

chemical tanker owners and is being evaluated

by some of the leading chemical and oil

majors not only because it is a relevant

method of determining cargo tank suitability,

but also because it has a direct and positive

impact on the environment and on the safe

working conditions of seafarers.

Confined space entry is one of the most

unsafe practices associated with the chemical

tanker business. This situation has to be

corrected.

*This article is another in the series written byGuy Johnson, L&I Maritime (UK) Ltd; Tel -+44 1909 532003; Email [email protected]

TO

Tokyo-based classification societyClassNK has issued an approvalfor Nippon Steel & SumitomoMetal Corporation’s newlydeveloped corrosion resistantsteel (NSGP™-2).

This steel is claimed to be ideal for use on

the upper deck and/or inner bottoms of crude

oil tanker cargo oil tanks (COT).

Following earlier approvals of steels for the

inner bottom plating of COTs, this marks the

first time that approval has been granted for

corrosion resistant steels for both the top and

bottom parts of the COT, providing owners

and shipyards with a practical alternative to

coating systems, the class society said.

In order to reduce COT corrosion and

improve crude oil tanker safety, new

amendments to the SOLAS Convention were

issued in May 2010 requiring oil tankers over

5,000 dwt contracted after January, 2013 to

adopt appropriate corrosion protection

measures for their COTs in line with either the

IMO Performance Standard for Protective

Coatings for COT (MSC.288(87)), or the IMO

Performance Standard for Alternative Means

of Corrosive Protection for COT

(MSC.289(87)).

As the use of corrosion resistant steels

would allow shipyards and owners to

significantly reduce the time and cost related

to coating application, their development has

been a topic of intense research for several

years.

However, differences in the corrosion

mechanism found in the COT’s top part,

which is exposed to gases released from crude

oil during shipment and the inner bottom,

which is in direct contact with the crude oil

cargo, have presented a major challenge to

steel makers.

Nippon Steel & Sumitomo Metal

Corporation released what they claimed was

the world’s first corrosion resistant steel

(NSGP™-1) for use on the inner bottom of

COTs in 2011. The approval of NSGP-2 marks

the first time that class-approved steels for

both the top and bottom of the COTs will be

available on the market.

Yasushi Nakamura, ClassNK’s executive

vice president said: “While coated

conventional steel meets IMO regulations, the

additional costs associated with coating

application can be high. This approval of

NSGP-2 means that owners now have a

practical alternative to meet IMO regulations

for COT corrosion protection, and we expect

the use of this kind of steel will increase in the

future.”

The ClassNK approval confirms that

Nippon Steel & Sumitomo Metal

Corporation’s NSGP-2 corrosion resistant steel

meets the requirements of the IMO

Performance Standard for Alternative Means

of Corrosive Protection for COT and can be

safely used in the construction of crude oil

tanker COTs.

This development is expected to

significantly lessen the financial costs

associated with applying protective coatings to

conventional steel during ship construction

and after entering service.

ClassNK approval of COT corrosion resistantsteel awarded

TO

TOP 30 TANKER COMPANIES


At the end of fiscal 2013-2014, MOL owned,

managed, or operated 32 VLCCs, six LR2s, eight

Aframaxes, 10 LR1s, 35 MRs and 18 Handysize

tankers.

In addition, the company had one LR1, four MRs and four

Handysize tankers on order, or under construction.

Under MOL’s ‘Steer for 2020’ plan, one of the objectives is

to reduce the number of tankers operated, including chartered-

in vessels, from around 170 to 150 by the end of fiscal 2016,

the company said.

Last year, MOL became involved in a new MR pool- Clean

Products Tanker Alliance - in which, there are four partners -

MOL, Asahi Tanker Co, Ultranav and OSG. The pool will

operate with around 60 MRs, MOL said.

Ultranav will operate MRs mainly for the Americas trade out

of Miami, while MOL, whose main operations are based in

Tokyo, Singapore, London and Houston, will operate the other

vessels worldwide. �

Mitsui-OSK (MOL)(14.4 mill dwt, plus a 385,000 dwt newbuilding)

TANKEROperator’sTop 30 owners and operators

1

MOL’s MR Opal Express.

As usual, the data used to calculate Tanker Operator’s Top 30 listing is compiled taking

into account the total deadweight tonnage of a company. The figures were extracted from

company websites, the Equasis database and where possible, the companies themselves.

In line with previous listings, we have omitted FPSOs/FSOs, LNG/LPG carriers and

ATBs from the total tonnage shown for each company. Photo credit - Teekay.

This diversified group now has two

VLCCs, 16 Suezmaxes, six LR2s, 50

Aframaxes, nine LR1s, five Panamaxes and 26

MRs, plus four Handies with another three MRs

under construction.

SCF also owns a fleet of smaller chemical and

bitumen carriers.

Some of the fleet are specialist ice class shuttle

tankers built for projects in the Barents Sea and

the Russian Far East.

In addition, the group owns several other types

of vessels, including offshore support vessels,

tugs, LPG carriers and LNGCs, some of which are

ice class. There are more large gas carriers to

come on the back of the Yamal project. �



According to various registers, NITC

manages 37 VLCCs, nine Suezmaxes,

five Aframaxes, and three Handysize products

tankers.

In addition, there are believed to be another

three 63,000 dwt tankers and two 35,000 dwt

product tankers on order.

There could be others, as the country tries

to build up its shipbuilding industry, a plan

which has been around for many years. �

NITC(13.5 mill dwt, plus259,000 dwt newbuildings)

2Including chartered-in vessels, the

various subsidiaries in the group,

including newcomer Tanker Investments,

operate 104 tankers.

These include shuttle tankers, VLCCs,

Suezmaxes, LR2s, Aframaxes and product

carriers.

Not included in the figures are one HiLoad

vessel, six FSOs, 10 FPSOs with one under

conversion, three floating accommodation

units, six AHTS and another four on order, 29

LNGCs with a further 18 on order, plus 21

LPG carriers with another nine on order..

At the end of last year, it was announced that

Teekay Tankers had acquired a further four

LR2s and a conventional Aframax for $230

mill. The vessels are due to be handed over

during the first quarter of this year.

In addition, Teekay Investments had

purchased six Suezmaxes for $315 mill. This

will bring the fledgling company’s total up to

20 tankers when they are delivered during the

first half of this year. �

Teekay Group(13.5 mill dwt)

3

Teekay’s Suezmax Hamilton Spirit.

Euronav(12.1 mill dwt)

This year, Antwerp-based tanker owner

Euronav will take delivery of the last

two of the 19 Maersk VLCC fleet

purchased last year.

This will result in the company controlling

a total of 27 VLCCs and 23 Suezmaxes.

In addition, Euronav has a stake in two

FSOs jointly owned with OSG. A third sister,

a conventional 440,000 dwt ULCC, operates

in the spot market within the Euronav-

managed Tankers International pool and is

100% owned by the Belgian concern.

On 6th October, 2014, the pool was joined

by Frontline, which has resulted in what is

claimed to be the world’s largest provider of

spot VLCC tonnage.

It is commercially operated under the name

VLCC Chartering. �Euronav’s Suezmax Cap Lara.

Sovcomflot (SCF) Group(11.6 mill dwt, plus 150,000 dwt newbuildings)

4

5

SCF’s MR SCF Yenisei.


March 2015� TANKEROperator 39

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As at the end of March 2014, the

end of NYK’s fiscal year, the

company said that it operated 32 VLCCs,

three Aframaxes, four LR2s, 22 MRs and five

chemical carriers.

In addition, NYK had 10 LPG carriers, one

ammonia carrier and a further 29 LNGCs with

more to come. However, these have not been

included in the figures.

There is other tonnage involved in various

joint ventures, which were also not included.�

NYK Group(11.5 mill dwt)

6 Bahri and Vela’s amalgamated fleet

now stands at 31 VLCCs, one LR2

and four MRs.

In addition, the company manages 24

chemical carriers - three Handysize, 20 MRs

and one 81,300 dwt vessel - which are all

operated in co-operation with SABIC.

There are no longer any chemical carriers

operated with Odfjell, as the joint venture has

ceased.

In addition, the company operates one

single hull VLCC FSO and a series of conros

and drybulk carriers and has an interest in

LPG carrier operator Petredec.

All of the vessels are managed by Mideast

Ship Management, based in Dubai. �

Bahri(11.12 mill dwt)

7

Singapore-based AET has been

shedding some of its older tonnage

recently and introducing new, specialist

vessels.

As of 1st January this year, the fleet

consisted of 13 VLCCs, four Suezmaxes, 48

Aframaxes (which includes two specialist

Modular Capture Vessels), two DP shuttle

Aframaxes, one LR2, one Panamax and eight

MRs.

In addition, two more newbuilding 120,000

dwt plus twin skeg DP shuttle tankers will

come on stream during the first quarter of this

year. �

AET(10.5 mill dwt, plus 241,400 dwt newbuildings)

8

AET’s Aframax Eagle Texas being converted to a modular capture vessel at Corpus Christi.Her sistership can be seen to the rear of the vessel. Photo credit - Kiewit.

The group, which includes Frontline

Ltd, Frontline 2012 and Ship

Finance International, has continued to shed

more of its older tonnage resulting in the

company sliding down Tanker Operator’s

rankings.

Frontline 2012 has 12 LRs on order at

present. Two Suezmaxes were recently

delivered.

As at the beginning of February this year,

the operated fleet included 21 VLCCs, 14

Suezmaxes, four Aframaxes and six MRs.

In addition, Frontline has joined

Euronav’s VLCC Tankers International

pool (which see), forming VLCC

Chartering. �

FrontlineGroup(9.5 mill dwt, plus 1.32dwt newbuildings)

9

Despite the sell-off of its VLCC fleet,

Maersk Tankers is still a considerable

force in the tanker market, due to its product

tanker pools, which the company manages.

As of the middle of last

year, there were 28 tankers in

the Maersk managed LR2

pool and as of 1st January

this year, there were 96

tankers in the Handytankers

pool.

The Handytankers pool

consists of tonnage in the range of 29,000 dwt

to 50,000 dwt. There are around 25 MRs and

71 Handysize tankers listed as managed by the

pool. In addition, there were around 39 vessels

in the intermediate sector, managed by

Brostrom and a further 16 in the small sector.

Maersk has been selling off some of its older

tonnage in recent weeks, both Handies and

smaller tankers. �



George Prokopiou's Dynacom

Tankers Management manages 14

VLCCs, 23 Suezmaxes, one LR2, six LR1s

and another six crude oil Panamaxes.

Similar to 2013, a few vessels left the fleet

last year, bringing the total down slightly. �

DynacomTankersManagement(8.6 mill dwt)

10The first of the four VLCC

newbuildings was delivered in

December, 2014 from Dalian, leaving a

further three still to come.

This was claimed to be the first VLCC

delivered to COSCO Dalian under the Chinese

Government’s domestic building programme.

At present, the company has 23 VLCCs,

three Suezmaxes, three Aframaxes and 11

Panamaxes, according to its website.

In addition it manages a fleet of LPG and

LNG carriers. �

China Ocean Shipping (COSCO Dalian)(8.5 mill dwt, plus 900,000 dwt newbuildings)

11

China VLCC was set up last year to

operate VLCCs managed by Associated

Maritime Corp and troubled Nanjing Tanker.

It is a joint venture between China

Merchants Energy Shipping (CMES), which

owns 51% and Sinotrans who has the

remaining 49%.

The new company immediately purchased

10 VLCCs from cash strapped Nanjing Tanker

for $681 mill, bringing the total up to 28

VLCCs, including two newbuildings delivered

last year.

In addition, another two VLCCs were due to

be delivered as this issue went to press and at

least 11 more were on order at Dalian and

SWS. �

China VLCC(8.4 mill dwt, plus 3.9 mill dwt newbuildings)

12

Maran Tankers Management

(MTM) is shown as managing 22

VLCCs, seven Suezmaxes and four

Aframaxes.

Some of the previously managed vessels

were believed to have transferred to Chevron

Shipping’s management having been on charter

to the US oil major for several years.

In addition, MTM ordered four VLCCs from

Daewoo last year of which at least two, plus

options, were converted to LNG carrier orders.

Another two VLCCs were said to have been

ordered this year, plus options.

The company is part of the Angelicoussis

Group with London-based Agelef acting as

agent. �

Maran TankersManagement (MTM(8.4 mill dwt, plus 640,000 dwt newbuildings)

13

ChinaShippingDevelopmentCorp (CSDC)(8.1 mill dwt)

CSDC’s fleet was shown as consisting

of 14 VLCCs, eight Aframaxes, 14

LR1s, three Panamaxes, 16 MRs and 23

Handysize tankers.

In addition, the company operates several

smaller coastal vessels.

There were still about six Handysize single

hull tankers on the list, but there must be

some doubt as to their continuing existence,

due to the final phase out having come into

force. �

Singapore-based Ocean Tankers

manages 14 VLCCs, one Suezmax, 14

LR2s, six LR1s, 22 MRs, four IMO II

chemical tankers and another 21 tankers,

described as general purpose.

The company was one of the original

members of the Nova Tankers pool until it

ceased trading last year, due to the Maersk

Tankers VLCC sell off.

It also has bunker and terminal operations

in and around Singapore, managed by

subsidiary companies. �

14

OceanTankers(7.8 mill dwt)

15Maersk Tankers(7.5 mill dwt)

16

Maersk Tankers’ Handysize Maersk Kate.



OSG successfully emerged from

Chapter 11 bankruptcy protection in

August last year.

As of 31st December, 2014, OSG’s

International fleet was only slightly down on

the year before; numbering one ULCC, eight

VLCCs, seven Aframaxes, eight Panamaxes,

one LR2, four LR1s and 22 MR tankers.

The International fleet also includes four

LNGCs and two FSOs managed in joint

ventures.

OSG’s US domestic fleet was unchanged at

12 Jones Act MRs, three of which have now

been converted to shuttle tankers, two other US

Flag MRs and 10 Jones Act ATBs.

The figures include long term chartered

vessels taken for more than one year. �

Overseas Shipholding (OSG)(7.5 mill dwt)

17

Athens-based Minerva Marine manages

four VLCCs, five Suezmaxes, 26

Aframaxes and 14 MRs.

Four of the Aframaxes are LR2s.

In addition, the company manages a small

fleet of bulk carriers. �

Minerva Marine(6 mill dwt)

18

SK Shipping(6 mill dwt)

The South Korean-based owner has 18

VLCCs, two LR2s and three MRs on

its books.

In addition the company has interests in LNG

and LPG carriers, plus a large fleet of drybulk

carriers. �

19

This Athens-based concern has

increased its fleet since last year, due

to both newbuildings entering service and

acquisitions of secondhand tonnage.

Today, the company manages two VLCCs,

six Suezmaxes, 23 Aframaxes, 11 MRs and

seven Handysize tankers.

In addition, there are another seven

newbuilding Aframaxes to come. �

OSC operates 16 VLCCs, two LR2s,

one LR1, four MRs and one small

chem/prod tanker.

In addition, another 10 MRs have been

ordered from Hyundai Mipo for 2015-2016

deliveries.

OSC also operates a fleet of LNG, LPG,

general cargo carriers and VLOCs. �

Thenamaris(5.86 mill dwt, plus790,000 dwtnewbuildings)

20

Oman Shipping Co (OSC)(5.6 mill dwt, plus 500,000 dwt newbuildings)

OSG’s VLCC Overseas Mulan.

21

Tsakos Energy Navigation (TEN)(5.1 mill dwt, plus 1.4 mill dwt newbuildings)

As at the end of December 2014, TEN

operated one VLCC, 12 Suezmaxes,

two DP shuttle Suezmaxes, eight Aframaxes,

three LR2s, nine LR1s, six MRs, eight

Handysize tankers and one LNG vessel.

In addition, the company has an extensive

orderbook of nine Aframaxes, one DP shuttle

Suezmax, two LR1s and one LNG vessel.

With the exception of the LNG order, all

tankercontracts are on the back of long term

charters.

Most of the vessels are managed by Tsakos

Columbia ShipManagement, a joint venture

company formed around five years ago. �

22



The purchase of Samco last year has

resulted in the company entering the

Top 30 for the first time.

DHT now controls 14 VLCCs, two

Suezmaxes and two Aframaxes and has

another six VLCCs on order.

Through the acquisition, the company also

owns 50% of Goodwood Ship Management.�

DHT Holdings(4.9 mill dwt, plus 1.8 mill dwt newbuildings)

24

The Taiwanese energy giant’s shipping

interest currently operates 10 VLCCs,

two Aframaxes, six LR1s, 16 MRs and three

Handysize tankers.

The addition of two Marubeni-controlled

Aframaxes has pushed the company up in the

rankings. �

Formosa Plastics MarineCorp(4.6 mill dwt)

25

GenMar operates seven VLCCs, 11

Suezmaxes, four Aframaxes, two LR1s

and one MR.

In addition, the US-based concern has

another seven VLCCs on order at Daewoo and

Hyundai Samho.

However, this total looks likely to increase

considerably if negotiations between GenMar

and Navig8 Crude Tankers to merge their

fleets comes to fruition.

Navig8 Crude Tankers has 14 VLCCs on

order at Hyundai Subic, Hyundai Heavy

Industries and SWS.

Oaktree Capital-backed GenMar previously

tried to purchase the Maersk VLCC fleet

before being beaten to the post by Euronav. �

General Maritime (GenMar)(4.6 mill dwt, plus 2.1 mill dwt newbuildings)

The latest figures on the company website show that BP

Shipping manages, or operates four VLCCs, 16 Aframaxes, 12

MRs and five Handysize tankers.

In addition, the company manages four US-based 190,000 dwt

Alaskan tankers, which have been included in the figures.

Some of the four Suezmaxes, 10 Aframaxes, nine MRs and five

Handies on order are believed sold on a lease back basis, while others in

operation have been disposed of, as the company modernises its fleet. �

26

BP Shipping(4.57 mill dwt, plus 2.33 mill dwt newbuildings)

27

BP Shipping’s Aframax British Cormorant seen in an STS exercisealongside Nordic American’s Suezmax Nordic Breeze.

BW Maritime(5 mill dwt, plus 2.6 milldwt newbuildings)

Singapore-based BW Maritime has

gone up in the rankings slightly, due to

an influx of newbuildings.

The company currently manages 10

VLCCs, 17 LR1s, 13 MRs and four chemical

tankers.

In addition, there are four LR1s at STX,

nine MRs at SPP and another nine

newbuilding chemical carriers to come.

The group also has a large fleet of LNG

and LPG carriers, plus FSOs and FPSOs,

either wholly, or part owned. �

23

BW Maritime’s LR1 BW Lena.

DHT’s VLCC DHT Ann.



Since TORM and Maersk Tankers

decided to dissolve the LR2 Pool in

2014, TORM currently operates 10 LR2s.

In addition, the company has seven LR1s,

44 MRs and 11 Handysize product tankers.

TORM is currently working on a

restructuring plan with its stakeholders,

including Oaktree Capital Management, which

once signed will reinforce TORM’s position as

one of the largest owners in the product tanker

segment.

The company said that it expected to be

able to present the final restructuring plan and

transaction structure no later than first quarter

of this year. �

Due to a few sales, SCI’s fleet has

fallen slightly.

Today, the company manages four VLCCs,

with another newbuilding to come; seven

Suezmaxes; 11 Aframaxes; two LR2s; six

LR1s; four MRs and two Handysize tankers.�

Shipping Corp of India (SCI)(4.5 mill dwt, plus 317,000 mill dwt newbuildings)

28

TORM(4.1 mill dwt)

29

TORM’s LR1 Torm Estrid.

Making money in a tough marketHow to survive in a complex world

Metropolitan Hotel, AthensApril 2nd 2015

� Dimitris Lyras, Director of Ulysses Systems (Chair)

� Martin Shaw, Managing Director, Marine Operations and Assurance Management

Solutions Ltd

� Panos A. Kourkountis, Technical Director, Andriaki Shipping Co. Ltd

� Georgios E. Poularas, CEO, ENESEL S.A.

� Nikolas Lappas, Managing Director at Oceangold Tankers Inc.

� Theophanis Theophanous, Managing Director, Bernard Bernhard Schulte

Shipmanagement (Hellas)

� Cpt. George Karantonis, HSQE & Vetting Manager, Eurotankers Inc.



Angeliki Frangou’s quoted tanker

vehicle, Navios Maritime Acquisition

Corp is a prolific asset player, buying and

selling vessels on a regular basis.

According to the company, Navios Maritime

Acquisition has eight VLCCs, eight LR1s, 18

MR2s and four chemical tankers.

In addition, there are another three MRs on

order.

Last November, Frangou set up Navios

Maritime Midstream, which purchased four

VLCCs from Navios Maritime Acquisition via

an IPO. Others will probably follow.

However, for the sake of clarity, we have

included all the tonnage under a group banner. �

Navios Maritime Group(4 mill dwt, plus 150,000 dwr newbuildings)

30

Navios’ LR1 Nave Atropos.

Making Money in a Tough Market

Athens, 02 April 2015

Ecotankers Bergen, 19 May 2015

Making Money in a Tough MarketSingapore, 08 Oct 2015

Making Money in a Tough marketHamburg, 22 Oct 2015

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