daily collection of maritime press clippings 2014 –...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2014 – 189

Distribution : daily to 30100+ active addresses 08-07-2014

Number 189 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Tuesday 08-07-2014

News reports received from readers and Internet News articles copied from various news sites.

The CSD HUTA fitting out at Royal IHC Kinderdijk

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EVENTS, INCIDENTS & OPERATIONS

DP GEZINA working offshore Egypt.

Accommodation vessel DP GEZINA owned by Chevalier Floatels has been hired by Saipem to support the installation work related to topside hook up and modification at Burullus Simian Control Platform, located some 65 km offshore Egypt, in approximate 60 m water depth. DP GEZINA was elected for this project since it could deliver the comfortable accommodation for the 40 technicians as well as the operational flexibility required for this demanding project. Full

catering and laundry services as well as medical and hospital facilities are available on board. DP GEZINA is able to remain offshore for 30 days with sufficient provisions and consumables. The vessel is requested to be in stationary position close to the platform, at suitable distance, in order to allow personnel transfer, by means of its fixed Ampelmann walk to work gangway, from vessel to the platform boat landing for 24hrs per day, 7 days per week. DP GEZINA was mobilized from Rotterdam to Limassol, Cyprus where on hire survey and final preparations were completed. As from late April 2014, the vessel started its activities at location.

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PROJECT OVERVIEW The West Delta Deep Marine (“WDDM”) Concession is located approximately ninety (90) km offshore Egypt, on the north-western margin of the Nile Delta. Significant gas reserves have been discovered in various reservoirs including Scarab, Saffron, Simian, Sienna, Sapphire, Sequoia, Saurus, Serpent, Mina, Silva, Sienna Up and Solar. These reservoirs are progressively being developed in line with the development plan to maintain current and future gas supplies to Egyptian domestic market and the Egyptian Liquefied Natural Gas plant. Phase IXa comprises eight base case subsea wells and one Optional Well to be developed during 2012/2014. Each well will be developed whilst maintaining operation of the existing infrastructure. The Project wells will be tied into the three existing areas; namely Sapphire, Scarab / Saffron and Simian / Sienna.

CHEVALIER FLOATELS, Much more than just accommodation Chevalier Floatels is a young company with 10 years of experience in the floatels industry. Our expertise is in developing new concepts for floating accommodation, from five star floating hotels, worker accommodation barges up to floating prisons for governments. Our floatels are designed for installation and maintenance projects in the offshore wind, oil and gas industry. Work is done on or near expensive installations. Keeping these safe and undamaged is critical. Chevalier Floatels has developed a new concept for the offshore wind and offshore oil and gas industry that is much more than just accommodation. This concept sets a new standard in terms of reliability, efficiency and comfort. Offshore vessels DP GEZINA and DP GALYNA both have a fixed Ampelmann heave compensated gangway with a reliable DP2 system to transfer the technicians to the platforms, making sure

technicians, platforms and vessel remain safe under all circumstances. Both vessels are extremely fuel efficient. Chevalier Floatels also owns and operates accommodation barges KALMAR, SANS VITESSE and NORTHERN COMFORT with respectively 220, 101 and 150 comfortable (single) cabins with en suite wet cell as well as recreational and office facilities. Photo’s : Randolph van Bergen - Chief / Senior Dynamic Positioning officer (c)

Chinese ships continue aggressive acts around oil rig’s site

On July 6, the Chinese side continued its aggressive acts at the site where its oil rig Haiyang Shiyou-981 is illegally standing in Vietnamese waters to prevent Vietnamese law enforcement ships from approaching the rig. China still maintained around 110 ships of all kinds, including five military ships at the site. Whenever Vietnamese fisheries surveillance vessels came near the rig, Chinese ships simultaneously blasted sirens, sped up and came very close to stop them from moving farther. Chinese fishing ships, supported by two coastal guard ships moved around the traditional fishing grounds of Vietnamese fishermen and tried to drive Vietnamese fishing boats away. However, Vietnamese fishing boats, with the assistance from fisheries surveillance vessels, continued to stay at the site to fish. Meanwhile, Vietnamese fisheries surveillance vessels braved the Chinese side’s aggressive acts to try to come to 10-11.5 miles from the oil rig site and continued to carry out their mission of demanding China to withdraw the oil rig and ships from Vietnam’s waters. At the beginning of May 2014, China illegally dispatched the rig as well as a large fleet of

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armed vessels, military ships and aircraft to Vietnam’s waters and positioned the rig at 15 degrees 29 minutes 58 seconds north latitude and 111 degrees 12 minutes 06 seconds east longitude. The location is 80 miles deep into Vietnam’s continental shelf and exclusive economic zone. Despite Vietnam’s protest, China expanded its scale of operation and moved the rig to 15 degrees 33 minutes 36 seconds north latitude and 111 degrees 34 minutes 11 seconds east longitude, 60 nautical miles deep inside Vietnam’s continental shelf and exclusive economic zone. China’s armed vessels have aggressively and consistently fired high-power water cannons at and intentionally rammed against Vietnamese public-service and civil ships, causing damage to many boats and injuring many people on board. On May 26, Chinese ship 11209 even sank a Vietnamese fishing vessel while it was operating normally in its traditional fishing ground near Vietnam’s Hoang Sa (Paracel) archipelago. Source : Vietnamnet

Essex/Suffolk: Lifeboat rescues stricken fishing boat

The vessel, Kestrel, had four people on board when it got stuck on the Cork Sands, approximately five miles south-east of Harwich, at 10.56am last Sunday . An RNLI crew from Harwich and the Felixstowe Volunteer Coast Patrol Rescue Service boat Guardian both went to aid the vessel. The boat was towed into deeper water and after it was established there was no damage was left to continue fishing. Source : EADT24

Maritime traffic controllers to face charges

By Lee Hyo-sik

The prosecution will bring criminal charges against a number of Coast Guard officials who allegedly neglected their duties when the Sewol ferry sank on April 16. At the time of the tragedy they were working at a maritime traffic control tower on Jindo Island. According to the Gwangju District Prosecutors' Office, investigators are looking into allegations that Coast Guard officials at the vessel traffic service (VTS) center on Jindo Island did not follow procedures when dealing with distress calls from the Sewol. They also allegedly failed to monitor the status of the ferry when it sailed nearby, and tampered with duty logs and surveillance camera footage in an attempt to cover up their wrongdoings. "The investigators are analyzing the transcript of communications between the crew of the ferry Sewol and the Jindo VTS Center and surveillance camera footage to see whether Coast Guard officials performed their duties properly," a prosecutor said. "We are trying to figure out why it took 18 minutes for the VTS center to respond to the distress calls from the Sewol. We would like to know what happened between 8:48 and 9:06 a.m. on April 16." The prosecution plans to seek an arrest warrant for the officials if they are found to have erased the surveillance camera footage and tampered with duty logs. In April, investigators raided the Jindo VTS Center twice and summoned 10 officials for questioning. A total of 476 people were aboard the 6,825-ton vessel when it sank off the nation's southwestern coast. Of that number, 172 were rescued with 11 still remaining missing. President Park Geun-hye has vowed to disband the Coast Guard and establish a comprehensive government agency to better deal with safety-related matters. Source : Koreatimes

IMG set up to deal with Somalian pirates threats: Centre to SC

The Centre told the Supreme Court that an Inter-Ministerial Group (IMG) has been set up by Ministry of Shipping to secure release of Indian sailors held captive by Somalian pirates and it is coordinating with UN bodies. In an affidavit



filed by Ministry of External Affairs, the Centre said all concerted efforts are being made for securing early release of sailors. "Ministry of Shipping has set up an Inter-Ministerial Group (IMG) headed by its Additional Secretary in order to address, coordinate and deal with all matters pertaining to the hostage crisis arising out of piracy and hijacking at sea," it said. It said the Directorate General of Shipping, under the Ministry of Shipping, is the nodal organisation with regard to welfare of Indian crew onboard ships and it has already started a grievances redressal mechanism for seafarers in 2011. The affidavit said that the Ministry of External Affairs, through its Indian Missions abroad, continuously seeks the help of the foreign governments concerned and recently, High Commissioner of India in Nairobi wrote a letter to the President of Puntland state of Somalia. It said that Centre has prepared a comprehensive Piracy Bill, 2012 in consultation with different ministries to deal with the issue of pirates in international waters. "The protocol, procedure and process followed by the Government of India in such cases fall within jurisdiction of the Directorate General of Shipping. The Ministry of External Affairs has requested the concerned Ministry of Shipping to provide their inputs," the affidavit said. The affidavit was filed in compliance of apex court order directing the Centre to file its response on two PILs seeking direction to government to take steps for early release of sailors. The petition filed by advocate Gaurav Kumar Bansal and Rajni Singh, the wife of an Indian seamen held hostage by Somalian pirates, had said on September 28, 2010, the pirates had hijacked a vessel, MV Asphalt Venture, which was managed by Mumbai-based OMCI Ship Management Pvt Ltd. It had alleged that due to the "lackadaisical approach" of the government, an Indian citizen was killed by Somalian pirates.

The DESERT MOON passing the Gent-Terneuzen canal enroute Terneuzen

Photo : John Verhoef ://www.johnfverhoef.nl (c)

Noisy boats help spread invasive pests Increasing noise pollution in harbours and ports may contribute to the global spread of invasive pest species, research has found. Invasive species often spread through marine environments when they attach themselves to the hulls of boats and ships in a process known as biofouling. Now scientists from Australia and New Zealand have discovered that the noise a vessel makes can actually attract the larvae of these fouling species. "There are a range of things that make vessels attractive to the larvae of these organisms, but now we have proven sound is an important cue as well," says Dr Justin McDonald from the Western Australian Department of Fisheries and lead author of the study. "A lot of boats come in and they keep their generators running for air conditioners and refrigerator. That generator noise can actually attract larvae from nearby," he says. To study how noise influences biofouling, McDonald and his colleagues from the National Institute of Water and Atmospheric Research and the University of Auckland used a hydrophone to record the noise emitted from fishing vessels while they were berthed in Fremantle, Western Australia. They also made visual inspections of the vessels to see how the level of fouling varied across different sections of each boat. The scientists found that the greatest number of fouling organisms were located closest to the generator, where the most noise occurred. The quietest part of the vessel, the bow, had the least number of fouling organisms. The results are

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reported in the journal Biofouling. McDonald says the noise levels from the generators were similar to that found naturally on reefs, suggesting that the organisms may be orientating towards the vessel noise in search of a suitable place to live. "If the larvae are attracted to natural reefs and the noise levels are the same, then they may perceive the vessel as essentially just another reef," he says.

Enhancing growth Given the distance with which vessel noise penetrates through the water, McDonald says organisms may be attracted from up to 500 metres away. But the noise is doing more than just attracting fouling organisms -- it is also enhancing their growth. In a separate experiment McDonald and his colleagues exposed the larvae of a common fouling organism, the sea squirt Ciona intestinalis, to sound recordings they had made of vessel noise. They found the noise made the larvae settle faster, develop more rapidly and increase their survival. This is the first time a response to an auditory cue has been recorded for a sea squirt. McDonald says vessels could reduce their attractiveness to fouling organisms by simply switching off their generators and using land-based power when docked, or by dampening the level of noise their generators make. But ultimately he and his colleagues are hoping to find a way to use the auditory sensitivity of these organisms against them. "We might be able to find a frequency that can actually be used to repel the larvae so we don't have the problem in the first place," he says. Source : abc.science

Malaysia to deploy more equipment in MH370 search

Malaysia will send more equipment to the southern Indian Ocean to join the search for Flight MH370, which went missing four months ago, a Malaysian minister said on Sunday. Defense Minister Hishammuddin Hussein said a Malaysian navy ship equipped with a multi-beam echo sounder, a device to map the ocean floor, would set sail on August 4 for the deep-sea search zone far off western Australia. State energy firm Petronas, together with Deftech and Phoenix International, would deploy a towed device called a synthetic aperture sonar to scan the ocean floor, he said. Shipbuilder Boustead Heavy Industries, together with iXBlue Australia, would send a deep towed side scan sonar with a remotely operated vehicle. “Instructions for immediate mobilisation have been given and the assets are expected to reach the search area in mid-August 2014,” Hishammuddin said. He did not give a cost estimate. Another Malaysian vessel, which was deployed in April, will stay in the search area, he added. The Malaysia Airlines flight lost contact on March 8 en route from Kuala Lumpur to Beijing with 239 people aboard. It is believed to have veered off course and, based on satellite data analysis, to have crashed in the southern Indian Ocean. But an extensive Australian-led search has so far found no sign of wreckage. Australian officials announced last month that the search would shift further south based on a review of the satellite data. They also said the Boeing 777 was almost certainly on autopilot when it ran out of fuel and crashed. The most likely scenario, the officials said, was that the pilots and crew suffered from hypoxia, or lack of oxygen, and became “unresponsive”, which can occur when a plane loses air pressure at high altitude. The underwater search will start in the new area, covering up to 60,000 square kilometres in the southern Indian Ocean, in August and take up to 12 months.

AHT Magnus sucessfly completes support of the summer season for Saipem in the North

Sea The 192t Bollard Pull Anchor Handling Tug Magnus, owned and managed by the German Offshore Company Harms Bergung, Transport und Heavylift GmbH und Co. KG, was working for the Italian Construction Company Saipem. It was the fourth year in a row Harms Bergung was choosen to support the summer season of the Semi-submersible crane and pipelaying vessel S7000 in the North Sea. AHT Magnus went onhire in



Rotterdam on the 8th of April and proceeded into direction Vlissingen to pick up the barge S600 to tow her to Stavanger. During the following months the vessel was involved in towage and support duties for the S7000, S600 and further barges in the North Sea. After delivery of the barge Greenway 3 in Stavanger the Magnus steamed off into direction Netherlands to finish the charter for Saipem on the 24th of June in Rotterdam. The company Harms Bergung is based in Hamburg, Germany and is operating a fleet of eight Anchor Handling Tugs worldwide. The fleet of Anchor Handling Tugs ranging from 100-tbp to 300-tbp with DP2 and with the capability to burn HFO and MGO, are purposely built for Long Distance Towage, Subsea Installation, Anchor Handling, Pipelay Barge Support, Salvage Operations and Accommodation Vessel.

Mr. Chairman of Port Said Chamber of Shipping,

Kindly note that a letter from the General Secretariat of the Ministry of Defense was received regarding informing the shipping agencies to advise the Maritime companies that any vessels which have onboard arms for security reasons shall not be allowed to pass through the Egyptian territorial waters in application of the International Law. The weapons can be stored in Safaga Port while the vessel is transiting from the South to the North and the vessels will be able to receive the weapons when they come back to the South. Kindly inform and notify all the shipping agencies affiliated to your Chamber of Shipping to abide by the above mentioned instructions. Source : Authority of Alexandria Port - Acting Chairman of Maritime Transport Sector Admiral/ Adel Yasine Hamad /Dominion Shipping Agencies (Egypt)

REDWISE successfully delivered seven vessels for the same Owners in Jeddah,

with three taking a “free ride”

In the first half of 2014 Redwise delivered the first batch: ASD tug “Jazan 4” an oil recovery vessel “Jeddah 53”, the latter loaded with two General Service boats, aptly named GS 1 and GS 2. Apart from the normal turnkey delivery solution, including: bunkers, port handling, Suez Canal

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transits, crewing and voyage preparation and management, Redwise arranged the H&M insurance and P&I covers for all vessels involved, with Bureau Vogtschmidt appointed as underwriter surveyors. The vessels are designed by MacDuff of Aberdeenshire, Scotland and built by Torgem shipyard of Tuzla, Turkey and were followed a month later by the sister vessels “Jazan 8” loaded with the pilot boat “Jazan 6” and the ASD tug “Jeddah 44”, the latter with a different engine/thruster package though. All 4 vessels delivered under own power did have azimuth thrusters.

Upon delivery the vessels were greeted by an old acquaintance, the “Jeddah Floating Crane 1” that was ready to lift the pilot boat off the “Jazan 8”. This Voith Schneider propelled “Jeddah Floating Crane 1” was delivered by Redwise in 1984 from the MAN yard at Blixen (Germany) to Jeddah, a contract that included a multi ship deal as well, involving the two other self propelled floating cranes “Jubail 1”and “Gizan 1”. One can imagine what a sight that had been, delivering these crane barges from Northern Germany with cranes fully erect and a hull shape as square as it can be.It does testify to our motto, as long as they are seaworthy, we can deliver them, professionally and with pride and to the quality of the vessels involved. To date Redwise Maritime Service BV arranged for management and repositioning of some 24+ vessels (a.o.: tugs, OSV’s, AHTS vessels and even a Longliner) and confirms another 32 vessels being on their way or in process of getting underway bound for various destinations on the globe. Redwise for full-service, global ship-delivery (repositioning of ships) as well as professional

crewing arrangements. For additional information please visit www.redwise.com or call : +31-(0)33-421 78 60

Is volatile fuel used in racing cars a new power source for ships?

· Shipping sector under pressure to use fuels with lower emissions · South Korean and Japanese shipyards win orders for ships running on methanol · LNG also being tried out as an alternative

By Keith Wallis Methanol, a fuel used to power light aircraft and racing cars, is being tried out as alternative for ships, highlighting its potential in an industry under pressure to cut emissions. From next year, shipping firms will have to cut polluting sulphur emissions in vessels going to parts of Europe and North America, sparking a race for alternatives to standard diesel between fuel sources such as methanol and liquefied natural gas. As well as being considered a green fuel, methanol is potentially cheaper and more plentiful than diesel or LNG. But it is trickier to handle than some fuels, such as diesel, due to its lower flashpoint -- the temperature where it vaporises and could ignite -- so needs care to prevent fires. "Compared with LNG as an alternative shipping fuel we see methanol in an early stage of development," said Thomas Wybierek, a shipping analyst at Norddeutsche Landesbank. Methanol is currently more costly than diesel and less efficient to burn, though prices could come down as new projects to produce it come on stream. South Korean and Japanese shipyards recently won the first orders for ships running on methanol. Engines, using 95 percent methanol and 5 percent diesel, are being developed and should be delivered in mid-2015, said engine builder MAN Diesel & Turbo. "From a risk perspective I can't see that methanol has any drawbacks as compared to LNG," said Joanne Ellis at Swedish maritime transport consultant SSPA, which is working on one of two research programmes looking at methanol as a marine fuel. Methanol can be stored in existing tanks on ships and since it is not kept under pressure will not expand and explode in the way LNG could, she said. Because LNG is super-chilled it also needs special tanks and could freeze ship equipment or cause injuries if it leaked. Draft safety guidelines should be finalised this year for ships powered by fuels with low flashpoints such as methanol, the U.N.'s International Maritime Organisation (IMO) said. RACE WITH LNG There are about 50 LNG-fuelled ships operating globally, excluding dual-fuel LNG carriers. This will double with around 55 LNG-fuelled ships on order as firms in emission control areas opt to use LNG to comply with tougher IMO rules on emissions. But a lack of LNG refuelling infrastructure at ports and the tanks needed to store it on ships, taking up



space for cargo, are obstacles to its wider use, some experts say. On the other hand, methanol can be stored in existing fuel tanks and transported to port by road tanker. It is usually produced from natural gas, though can also be made from biomass, carbon dioxide and even household rubbish. Total methanol demand was 66 million tonnes in 2013, data from consultancy Jim Jordan and Associates showed, while demand for marine diesel was 372 million tonnes, according to OW Bunker, a supplier of the fuel. Shipping firms will have to cut emissions of sulphur dioxide in emission control areas in Europe and North America from the current 1 percent to 0.1 percent from next year under IMO rules. Global IMO curbs will lower emissions to 0.5 per cent in 2020 or 2025 from the existing 3.5 percent. The controls have led shipping firms to consider alternative fuels as methanol, which is sulphur free and has low levels of nitrogen oxide, as well as low-sulphur diesel and LNG. Methanol is cheaper than LNG, which costs between $900 and $1,100 a tonne, including port and storage costs, according to maritime services consultant Poten & Partners. Methanol is priced at $460-$560 per tonne, but twice as much needs to be burnt to generate the same energy as marine diesel, said Michael Teusch, business development manager at Danish catalysts firm Haldor Topsoe. Marine diesel costs about $600 a tonne, though with low sulphur it is much more expensive. TANKERS AND FERRIES Japan's Minaminippon Shipbuilding Co., and South Korea's Hyundai Mipo Dockyards Ltd are building seven methanol-fuelled tankers due to be completed in 2016. Three of the vessels, costing $140 million in total, will be owned by Japan's Mitsui OSK Lines the company said. The ships have been chartered by Canada's Waterfront Shipping Company, a subsidiary of Methanex Corporation the world's top supplier of methanol. There is also a trial, partly financed by the European Commission, starting early next year using methanol to help power a ferry. If successful a fleet of methanol-powered ferries could be operating in Europe and Scandinavia by 2020. George Cambanis, who heads Deloitte's Global Shipping and ports group, said that the host of players involved in various biodiesel projects for ships from engine manufacturers to ship safety classification society Lloyd's Register meant methanol was likely to be used more in the future. "How soon the future comes is anybody's guess," he added. Source : Reuters

Vier reddingsacties voor KNRM op winderige zaterdag

KNRM reddingstation Enkhuizen is zaterdag vier maal uitgevaren voor watersporters in problemen op het winderige IJssel- en Markermeer. De eerste melding kwam De eerste melding kwam binnen juist op het moment dat er een reddingsdemonstratie werd gegeven tijdens de havendag van de Compagnieshaven.

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Snel zijn de Enkhuizer reddingboten Rien Verloop en Watersport dan ook onderweg naar een zeiljacht met lijn in de schroef ten zuiden van het Naviduct. Ter plaatse aangekomen bleek het zeiljacht veilig voor anker te liggen. Nadat er een sleepverbinding was gemaakt is het jacht versleept richting de jachthaven.

Alarm Wederom alarm voor een zeiljacht in problemen aan de zuidkant van het Naviduct. Door een motorstoring verdaagt het snel richting lagerwal. Reddingboot Rien Verloop is snel ter plaatse en neemt het jacht op sleep. Ook dit jacht werd niet veel later veilig in de haven afgemeerd. De reddingsboten moesten hierna nog uitrukken voor een vrouw met een hoofdwond op een zeiljacht bij Stavoren. Later blijkt een Staverse jol zonder motor last te hebben van de harde wind waarbij de twee opvarenden het erg koud krijgen. De Jol werd een half uur later aangetrofffen op vijf mijl noordoost van Enkhuizen. Snel werd een sleepverbinding gemaakt en koers gezet richting de Markerhaven van het Zuiderzeemuseum in Enkhuizen. Bron: Dichtbij.nl / KNRM

Exploitation of MTC Amsterdam by Falck Safety Services

As of 1 July 2014 Falck Safety Services exploits the Maritime Training Centre (MTC) at Amsterdam. This extension of the activities to a third location is a direct consequence of the continuous developments within the national and international oil & gas, maritime and wind energy industry. Because of these developments the demand for specialist training has increased rapidly.

To serve all industries fast and adequately and to realize expansion of the capacity the opening of a third training centre was necessary. At the location in Amsterdam Falck Safety Services will be offering the following courses: offshore basic and refresher training (BOSIET/FOET), helicopter underwater escape training (HUET), maritime basic safety training (BT) and wind safety training (GWO). All courses comply with the standards of OPITO, STCW or GWO.

MTC international has set the goal to globally support training providers and their customers, amongst others by realizing training centres at logistically convenient locations. Amsterdam was the most exquisite location for a training centre in the Netherlands, because it’s located at 20 minutes by car from airport Schiphol and therefore easily accessible for

foreign course participants.

,,We are convinced that the training centre is in good hands with Falck Safety Services, a respectable name in the training industry, ’’ says Bas Gloudemans, Managing Director of MTC international. ,,Now that the training centre is operational and handed over to Falck Safety Services, MTC will be focussing on establishing new locations abroad.’’ ,,In the last couple of years, Falck Safety Services has done multiple investments in the development of specialist training and realistic training facilities. The realisation of this third training location in the Netherlands enables us to serve our clients’ needs even better than before,’’ states John Herfkens, Managing Director of Falck Safety Services in the Netherlands. As of July 2014 the BOSIET, FOET, STCW basic training and GWO modules can be booked at the location Amsterdam, established at the tt. Melaniaweg 12. For more information, enquiries and booking please contact Customer Services: [email protected], +31 181 376 666 or visit .falcksafetyservices.nl.

LIFTBOAT MASTER REQUIRED “International Liftboat operator seeks an experienced self propelled liftboat master for work on board their vessel working off Nigeria. Interested applicants please write to :

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The Damen shipyard built MERCURIUS during yard trials passing Maassluis

Photo : Cees Kloppenburg - www.photomaassluis.com ©

Consolidated Lines And Fragmented Fleets Last week’s Analysis highlighted the rejection of the ‘P3’ container shipping alliance plans by the Chinese authorities, and how it might relate to the movement of trade by national fleets or otherwise. This week the focus is shifted to examine how liner shipping, ‘P3’ or no ‘P3’, fits within the pattern of consolidation in the key volume shipping sectors.

How Does It Stack Up? In reality shipping is a relatively fragmented business. Over 88,000 vessels constitute the world fleet across almost 24,000 shipowners, with an average of less than 4 ships per owner. Limiting the analysis to 10,000 dwt and above, the average is still less than 7 ships. When talk of the ‘P3’ first hit the container shipping news, concerns were raised about the potential level of consolidation in shipping. Does that really stack up? In Bulk, But Not Consolidated

As the graph shows, there has been consolidation of ownership, but over the last 20 years it has actually been fairly gradual. Today the Top 20 tanker owners account for 30% of the tanker fleet compared to 26% in 1994. In the bulker sector the Top 20 owners account for 22% today compared to 15% twenty years ago. In general, larger entities such as industrials have increased their share of the bulk fleets. Both sectors saw a fair amount of consolidation between 1994 and 2004, before a drop in the share accounted for by the Top 20 owners since then. The downturn post-2008 looks to have led to some fragmentation as the distressed position many traditional owners found themselves in created opportunities for new entrants (and new money). Ticking The Boxes?

Containership ownership, meanwhile, has always been dominated by large, fairly corporate, ‘liner’ companies and some substantial charter owner interests. With ‘strings’ of containerships needed to operate scheduled services, ownership has been consolidated amongst fewer entities, and in 1994 and 2014 the Top 20 owners accounted for just under 60% of overall capacity, a much higher share than in the bulk sectors. Concentrated Liners

However, liner operation (rather than boxship ownership) is where volume shipping is most highly consolidated. Large liner companies have historically been afforded some protection, first by the conference system and then by the approval of a network of alliances, reflecting the capital intensive nature of running box shipping services and the associated infrastructure. Today the Top 20 lines operate 77% of container capable capacity globally, up from 66% in 2004 and 37% in 1994. This is clearly a highly consolidated part of shipping, ‘P3’ or no ‘P3’ (itself a proposed alliance, not a merger of operators).

Overall, shipping remains quite fragmented despite some gradual consolidation. However, liner shipping, with its heavy operational demands, is generally much more concentrated. It’s certainly not quite Coca-Cola and Pepsi, but even without the ‘P3’ alliance this is where volume shipping is by some distance already at its most consolidated. Have a nice day. Source: Clarksons



Diana Shipping Inc. Announces Time Charter Contract for m/v G. P. Zafirakis With RWE

Diana Shipping Inc.a global shipping company specializing in the ownership of dry bulk vessels, today announced that, through a separate wholly owned subsidiary, it entered into a time charter contract with RWE Supply & Trading GmbH, Essen, Germany, for one of its Capesize dry bulk vessels, “Hull No. BC18.0-50″ (to be named “G. P. Zafirakis”). The gross charter rate is US$25,250 per day, minus a 5% commission paid to third parties, for a period of minimum eighteen (18) months to maximum twenty-two (22) months. The charter is expected to commence upon delivery of the vessel to the Company. As previously announced on June 27, 2014, the m/v G. P. Zafirakis is a 2014 built Capesize dry bulk vessel of approximately 180,000 dwt that the Company entered into an agreement to purchase in June 2014. The vessel is now expected to be delivered to the Company by the sellers by early August 2014. This employment is anticipated to generate approximately US$13.6 million of gross revenue for the minimum scheduled period of the time charter.

Excluding the aforementioned vessel, as well as two new-building Newcastlemax dry bulk vessels and one new-building Kamsarmax dry bulk vessel expected to be delivered to the Company during the second quarter of 2016, Diana Shipping Inc.’s fleet currently consists of 38 dry bulk vessels (2 Newcastlemax, 10 Capesize, 3 Post-Panamax, 3 Kamsarmax and 20 Panamax). As of today, the combined carrying capacity of our fleet, excluding the four vessels not yet delivered, is approximately 4.21 million dwt with a weighted average age of 6.85 years. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release. Diana Shipping Inc. is a leading global provider of shipping transportation services through its ownership of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. Source: Diana Shipping Inc.

INPEX launches FPSO hull INPEX Corp. announced that it launched the hull of the floating production, storage and offloading (FPSO) facility for the INPEX-operated Ichthys LNG Project from the dry dock at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in Geoje, South Korea. The launch, which took place yesterday, saw the 336 m long hull – equivalent to more than three soccer fields in length – floated out of the dry dock and positioned quayside where construction will continue. Claude Cahuzac, the Ichthys LNG Project offshore Director, said the milestone was an impressive achievement, with an enormous amount of work carried out since the FPSO’s keel laying ceremony. “Pre-fabricated blocks weighing around 60 000 t in total have been lifted into the dry dock and assembled to create the full-size FPSO hull we see on the water today,” Mr Cahuzac said. “While the hull is now at its full length from stern to bow and floating, it does not mean the FPSO is complete. We still have some work to do to complete the hull, and even more for the entire FPSO, including the fabrication and integration of the topsides, living quarters and our next major milestone – the installation of the turret, which is currently under construction in Singapore.” The FPSO will be moored approximately 3.5 km from the Ichthys LNG Project’s central processing facility (CPF). It will process and store condensate from the CPF and periodically offload stabilised condensate to shuttle carriers for export directly to market. The 336 m by 59 m FPSO is designed to hold more than one million bbl of condensate and will have the capacity to accommodate a workforce of up to 200 people. Once complete, the facility will be towed 5600 km to the Ichthys Field

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in the Browse Basin, offshore Western Australia, where it will be permanently moored to the seabed for the life of the Project. The Ichthys LNG Project recently celebrated its most significant construction milestone to date after officially marking 50% completion on 25 June 2014. Source : LNG Industries

The 2004 built BHS flag LNG carrier BERGE ARZEW entering Grand Harbour, Malta on Monday 7th July, 2014

assisted by tugs LIENI, PAWLINA, SEA SALVOR and ST.ELMO and piloted by Pilot Charles Scicluna and Pilot Alan Brown bound to Palumbo Malta Shipyard Ltd.

Photo : Capt. Lawrence Dalli - www.maltashipphotos.com (c)

Threat to East Africa needs a united response

The Gulf states have long prided themselves on being ¬islands of stability in a region of strife. And not without good ¬reason: from Libya to Iraq, every country is going through some form of conflict, high-profile fighting that draws the attention. Yet, on the doorstep of the Gulf, is another emergency, brewing almost silently. Over the weekend, the United Nations warned that Yemen and Somalia need vast and urgent financial assistance or else they face hunger on a vast scale. It is a crisis that, with wars being fought on the Gulf’s northern border, is too easy to ignore. But the coming crisis in Somalia and Yemen could be vast. Now is the time for concerted effort to address it. Both countries are in the grip of a broader drying of the Horn of Africa. Three years ago, the region faced its worst drought for half a century. Somalia, Kenya and Ethiopia have all felt its effects and experienced food shortages. Yemen, historically the wettest and most fertile of the countries of the peninsula, has felt this change, too. Both Somalia and Yemen are fragile. Yemen has been in disarray since the revolution that toppled its long-time president. Somalia has been chaotic for more than two decades, but, since a combined African military force took control of the capital two years ago, there has been the possibility of stability. Over the weekend, in a separate development, the United States confirmed for the first time that a handful of its military personnel were on the ground in the country.

The humanitarian situation in both countries is severe, with millions of people without food and famine a real threat in Somalia. But worse is that much of the money the international community has pledged – hundreds of millions of dollars – has not even been paid. Neither country, as the UN said, is “doomed to fail”. Both can be stabilised and conditions for prosperity created. But concerted political action is needed, and it is the Gulf that might want to lead this, because it is the Gulf that will feel the effects of the instability first. The drying of East Africa is a serious problem that cannot be solved piecemeal: refugees from East Africa end up in Yemen, further straining that country. The instability in Somalia -allows pirates to operate from its coasts, affecting global shipping. As the problem affects more than one country, so the solution must involve a coherent regional response. Source: The National

Petrobras Says End of SBM Contracts Could Cut Profit $15B

Profit at Petrobras, Brazil's state-led oil company, could be reduced by $15 billion between 2014 and 2018 if it had to suspend oil platform contracts with Holland's SBM Offshore NV, the company said in a securities filing. The potential reduction in profit is based on an estimate of the amount of lost oil and natural gas output and additional spending



needed if Petrobras had to stop using the floating oil production platforms leased from SBM, it said in the Saturday filing.The estimate was made in response to a request by Brazil's Office of the Comptroller General (CGU), Petrobras said in the filing. The CGU is the Brazilian federal-government agency responsible for the protection of public property.

SBM is the subject of investigations in Brazil, the Netherlands and the United States over the alleged payment of $250 million in bribes in Africa and South America, with $139 million of that allegedly paid in Brazil. The Comptroller General's office opened an investigation into SBM's contracts with Petrobras in April. Petrobras, formally known as Petroleo Brasileiro SA, added that the losses are hypothetical and that the Comptroller General has not recommended that contracts with SBM be suspended. SBM, based in Schiedam, the Netherlands, is the world's largest leaser of floating production, storage and offloading, or FPSO, vessels. FPSOs are used to produce oil in deepwater offshore fields. The company has 15 leased FPSO and related vessels, with six operating in Brazil, according to its website. Source : rigzone

UNION MANTA (9261487) towing NORDIC GIANT 101 with SYLWIN ALPHA passes Helsingborg heading to Sylwin Field in the German economic zone of the Nord Sea. The 5,800 tonnes topside will be installed by Heavy Lift Vessel “OLEG STRASHNOV”. Photo: Per Körnefeldt (c)

Sea Transportation: The Strait of Malacca Blues

The international effort to suppress Somali piracy halted and reversed the increased piracy off the coast of Somalia but at the same time there has been a major increase in attacks in the Straits of Malacca. Big as in a sevenfold increase from 2009 to 2013 (when there were 150 attacks). There was also a jump (to 50 attacks a year) off Nigeria. The big difference is that it was only off Somalia that ships and crews be taken and held for ransom for long periods. Everywhere else the pirates were usually only interested in robbing the crew and stealing anything portable that they could get into their small boats. Off the Nigerian coast pirates occasionally take some ship officers with them to hold for ransom. Another tactic is to turn off tracking devices and force the crew to move small tankers to remote locations where most of the cargo (of oil) can be transferred to another ship and later sold on the black market. But that sort of thing requires a lot of organization, nerve and luck. So most of the attacks are armed robbery. Given the amount of portable electronics on a seagoing ship (both company and personal), a half dozen armed pirates can net several thousand dollars per ship hit. There are fences on shore who pay cash for this stuff and quickly move it out of the country. It’s not the theft aspect that worries shipping companies using the Malacca Strait, it’s the possibility of terrorists using the pirates or the pirates causing an accident that blocks these vital straits. Piracy in the vital (most of the world’s oil exports pass through here) Strait of Malacca has gotten a lot worse and so has the risk for catastrophe. For the pirates there are lots of targets, with over 50,000 large ships moving through the Strait of Malacca each year. That’s 120-150 a day. Lots of targets. The 800 kilometer long strait is between Malaysia and Indonesia and is 65 kilometers wide at its narrowest and depth are generally 27-37 meters (90-120 feet). The shallow and tricky waters in the strait forces the big ships to go slow enough (under 30 kilometers an hour) for speed boats to catch them. But if there’s a collision, especially one involving a loaded oil tanker, the oil spill could be huge and a large ship sinking in the strait could block or throttle traffic for months.

There’s no easy solution to the piracy in the Strait of Malacca. Pirates usually function on the margins of society, trying to get a cut of the good life in situations where there aren’t many options. This is usually in areas where state control is weakest or absent, in failing and “flailed” states. A flailing state is something like Nigeria, Indonesia, or the Philippines, where the government is managing to keep things together but is faced with serious problems with



regions that are sometimes out of control. In a failed state there are areas where there isn’t much government at all and pirates can do whatever they want most of the time. With the Strait of Malacca the problem is that there are a lot of poor (or not so poor but very ambitious) people in the area with access to boats and experience using them in the ocean. Speeding along next to a huge tanker or container ship at night in the Strait of Malacca and using a grappling hook or very tall ladder to get aboard is not for the faint of heart or anyone with no experience on the water. But as more of these attacks succeed more people are tempted to try and more are doing that. Source: Strategy Page

The SIBERIAN EXPRESS moored in Rotterdam-Europoort Photo : Paul Gerdes (c)

Will the Oil Export Ban Be Lifted? When Gerald Ford signed the Energy Policy and Conservation Act in 1975, he said that “the single most important energy objective for the United States… is to resolve our internal differences and put ourselves on the road toward energy independence.” Well, it might have taken almost 40 years, but we’re finally on our way!

Thanks in large part to horizontal drilling and hydraulic fracturing, U.S. crude oil production is at a 24-year high.

In 2013, the United States produced more oil than it imported for the first time since 1988 – and cut its dependence on foreign oil in half from 2005 levels. By 2015, the United States is expected to overtake Russia and Saudi Arabia as the world’s biggest producer, according to the IEA. Yet one thing standing in the way of full energy independence is the government’s long-standing restriction on oil exports.

The History Behind the Ban

You see, while U.S. refineries are exporting record amounts of products, such as gasoline and diesel – U.S. producers are prohibited from exporting crude oil. This ban on crude exports dates back to the 1973 Arab oil embargo. Global oil prices spiked and inflation was a serious concern, encouraging Congress to make it illegal to export domestically produced crude without a license. Today, most of these restrictions remain in place, as framed by the 1975 Energy Policy and Conservation Act and the 1979 Export Administration Act.

As a result, overall oil exports remain a fraction of what is produced (2%). There are a few exemptions to the ban, however. For example, the Department of Commerce issues export licenses for oil produced in Alaska’s Cook Inlet and for oil exported to (and consumed in) Canada. There are the occasional oil swaps with Mexico, and exports of small amounts of heavy crude produced in California. Exemptions also apply to crude transported via the Trans-Alaska Pipeline System, or produced abroad and stored in the U.S. Strategic Petroleum Reserve.

And just last week, the Commerce Department issued a new ruling after Pioneer Natural Resources (PXD) petitioned for approval to export a type of ultra-light oil. So now, any oil that has been processed through a distillation tower is exempt from the ban, as well. Indeed, despite the ban, exports have managed to rise nearly four-fold over the last five years – recently hitting a 15-year high. Could this herald a relaxation in current limitations – or even a lifting of the export ban altogether?

It’s highly possible.

At the very least, continued relaxation of the rule is probable – especially considering that more and more industry and political leaders are speaking out against the ban . . .

Old Rule, New Landscape

The arguments for and against lifting the ban are multi-fold. Let’s start with those who want the ban eradicated . . .



Lifting the ban would provide greater incentives for drilling, which would stimulate new supply and encourage investment in oil production. Greater production would reduce our need for imported oil, currently around 30%. Free-market proponents claim that lifting the ban would increase security by demonstrating Washington’s commitment to free and fair trade. This would also bolster our position in future trade negotiations, while continuing to maintain our strategic reserves. And a May report from research firm IHS predicts that lifting the ban will boost domestic crude production by close to 30% and inject nearly $750 billion of additional energy investment into the economy.

Sounds excellent, right? No wonder several politicians are getting on board . . .

Sen. Max Baucus (D-Mont) and Sen. Mary Landrieu (D-La), for instance, who will head the Senate Energy Committee, have expressed interest in revisiting the decision. Same goes for Sen. John Hoeven (R-N.D.) and Obama’s Energy Secretary, Ernest Moniz. On the other hand, Robert Menendez (D-NJ) argues that the ban protects U.S. consumers from volatility and price spikes. He also claims that allowing exports would result in higher gasoline prices.

Plus, environmentalists claim that more drilling would increase greenhouse emissions and discourage investments in alternative energies. And refiners complain that they would pay more for crude and would face greater competition abroad for their exported products. Despite the naysayers, though, the list of benefits is just too high to ignore. So I’m led to believe that the ban could be lifted in the near future. If that happens, here’s what to expect – along with a few opportunities to keep your eye on …

Opportunities: Futures, Spreads and Options

If the ban is relaxed or reversed, we’d likely see an immediate rally in WTI, as well as gasoline and heating oil futures, as the general consensus fears losing domestic supply. Furthermore, with more outlets for selling, producers can command a higher price than the currently depressed prices in parts of the United States that are facing refinery bottlenecks. For spread traders, the forward curves of WTI and products will likely be backwardated, with curve steepness in part being dictated by seasonal effects. Meanwhile, the spread between WTI and other benchmarks, such as Brent, are likely to narrow. Finally, volatility in the energy markets will increase, creating an opportunity for option sellers. Keep in mind, though, that these market moves will likely be short lived. Market efficiency will come from the realization that the United States will have sufficient oil. WTI prices along the forward curve should revert to the mean. And gasoline prices will fall, as they’re dictated by global gasoline markets.

Still, as the shift is taking place, equities such as ExxonMobil (XOM) and ConocoPhillips (COP) should benefit first as their market expands abroad. Diversified oilfield service companies, such as Schlumberger (SLB) and Weatherford International (WFT), should also immediately benefit. As well as oilfield equipment companies like National-Oilwell Varco (NOV) and Cameron Corporation (CAM). Refiner equities, such as Valero (VLO) and Tesoro (TSO), would likely drop initially, but should see gains in the medium to long term. Source: Trefis

S. Pacific gas imports to be doubled The government will double natural gas imports from Australia and Papua New Guinea via the Pacific Ocean over the next five years, as Japan’s major gas import route currently passes through the South China Sea, where territorial disputes are intensifying among neighboring countries, sources said. Prime Minister Shinzo Abe leaves Japan on Sunday to meet with the prime ministers of both countries. He is expected to announce support for natural gas development in those countries during the trip. The policy was formulated in consideration of the ongoing territorial disputes between China, Vietnam and the Philippines in the South China Sea—through which 60 percent of Japan’s natural gas imports pass—as well as a desire to diversify supply routes, the sources said. About 18 million tons of natural gas for power generation and other purposes was imported from Australia in 2013, or 20 percent of the total. Imports from Papua New Guinea began just last month. The government wants to increase this amount to about 36 million tons by 2019. Abe is to meet with Australian Prime Minister Tony Abbott on Monday, where the two leaders will confirm “the importance of bilateral trade investment in natural gas,” the sources said.

At a meeting with Papua New Guinea Prime Minister Peter O’Neill on Wednesday, Abe will praise the start of natural gas imports from the country as a “contribution to Japan’s energy security,” the sources said. The two leaders are expected to agree to expand cooperation in natural gas development. INPEX Corp. is part of a development project in the northern Australian city of Darwin that is seeking to begin sending gas to Japan by the end of 2016.

In Papua New Guinea, Japanese companies are involved in several gas development projects in addition to the one that produces fuel for the imports that began in May. These projects will be supported with low-interest loans from the Japan Oil, Gas and Metals National Corporation and the Japan Bank for International Cooperation, and with the government’s Official Development Assistance. Increased energy cooperation with these countries is expected to act as a check on China. China considers the so-called second island chain that connects the Izu Islands, Saipan and Papua



New Guinea as a pillar of its naval strategy for countering the United States. China has also provided fiscal support to Papua New Guinea and is involved in developing ports and mines there. For Japan, the gas developments are a way to regain some ground. Australia, which has been critical of China’s aggressive naval advances, also hopes stronger ties with Japan could help restrain China’s actions, the sources said. Source: The Japan News

Damen FCS 2008 newbuilding enroute Rotterdam – Photo : Jan Oosterboer (c)

Floating offshore wind farm Among options such as solar and geothermal, wind power may be the most suitable for Japan as it is surrounded by the ocean. According to the Japanese Environmental Ministry, the amount of offshore wind energy that can be potentially generated in Japan is 1.6 billion kilowatts, 10 times that of solar power and 100 times that of thermal power and small and mid-size hydraulic power. Floro Mercene It is also eight times the current capacity of Japan’s power companies. The challenge is that the ocean floor around Japan is steep, so it would only make sense if wind turbines float. But there are no floating offshore wind farms in the world. Currently, there are two floating offshore wind turbines in the world. The world’s first full-scale floating wind turbine was installed in Norway with 2,300 kW of capacity in 2009 and the world’ second is in Portugal with 2,000 kW of capacity. Those two countries still need to solve some technical challenges to build a floating offshore wind farm. Japan commenced the operation of the first 2-MW floating wind turbine at a wind farm 16 kilometers off the coast of Fukushima in November last year. This is a part of the first of a pilot 16-MW offshore floating wind project funded by Japan’s Ministry of Economy, Trade and Industry. The wind farm near the Fukushima Dai-ichi nuclear plant, which was destroyed by the March 2011 earthquake and tsunami is to eventually have a generation capacity of 1 gigawatt from 143 turbines by 2020. Japan, whose coast is mostly ringed by deep waters, is pioneering floating wind turbine construction, required for seabed depths greater than 50 meters. The turbine is linked to a 66 kilovolt floating power substation, the world’s first according to the project operators, via an extra-high voltage undersea cable. Source : Tempo

U.S. Housing Boom Spurs Jump in Asia Building Shipments

Thanks to the U.S. housing boom, Asian manufacturers are shipping the most furniture and building materials by containers in seven years. U.S. imports of furniture and building materials from Asia, destined for retailers such as Wal-Mart Stores and Target, rose 6.3 percent in the first four months of the year, compared with a year earlier, to the most since 2007, according to Japan Maritime Center figures. Asian suppliers such as Li & Fung Ltd., which exports home furnishings, tableware and handicraft, are benefiting from a rebound in the U.S. economy as payroll gains and stable borrowing costs at historically low levels boost American confidence to purchase homes. That demand is helping drive imports of sofas and beds to furnish houses and building materials and plastics used in construction.

“If you buy a new house you need new furnishing,” Rahul Kapoor, a Singapore-based analyst at Drewry Financial Services Ltd. said by telephone last week. “Furnishing and building materials all come out of Asia. It’s definitely a positive for demand.” Total U.S. imports of furniture and building materials and plastics used in construction from Asia rose to 971,678 standard containers, or TEUs, in the first four months of this year, compared with 914,042 a year earlier, according to figures from the Japan Maritime Center. Li & Fung, also the world’s biggest supplier of clothes and



toys to retailers such as Wal-Mart, posted a 17 percent jump in net income to a record $725 million in 2013 amid higher sales. The Hong Kong-based company’s biggest customer is Wal-Mart, accounting for 15.4 percent of sales, according to data compiled by Bloomberg, while Target, the second-largest U.S. discount retailer, is the next largest, with 5.8 percent of revenue. The rise in imports may be a boost for both discounters, which have struggled to grow revenue in the U.S. In Wal-Mart’s first quarter ended April 30, sales rose 0.8 percent to $114.2 billion while comparable-store revenue in the U.S. was little changed. At Target, revenue gained 2.1 percent to $17.1 billion in its first quarter. Home department sales declined as U.S. same-store sales fell 0.3 percent for a second straight drop. Brooke Buchanan, a spokeswoman for Bentonville, Arkansas- based Wal-Mart declined to comment because it doesn’t discuss its relationships with clients. Eric Hausman, a spokesman for Minneapolis-based Target, declined to comment. The U.S. posted the biggest new home sales jump in 22 years in May as sales surged 18.6 percent in May, the biggest one- month surge nationwide since January 1992, according to figures from the Commerce Department.

Still, rates for carrying containers to the U.S. from Asia have tumbled this year as an increase in new capacity is outweighing the increase in boxes being transported. Container lines are suffering from an oversupply of vessels after a boom in ship purchases coincided with the financial crisis, triggering the worst slump in carriage fees since containerization became global in the 1970s. The global container fleet increased 6 percent versus a year earlier, as of Sept. 30, and stood at almost 17.2 million standard containers, according to A.P. Moeller-Maersk A/S, owner of the world’s largest container line. The order book in the container industry is 21 percent of the total container fleet in the water, Greek ship owner Costamare Inc. said in September. “Demand is definitely growing but the biggest drag on rates is supply,” Bonnie Chan, a Hong Kong-based analyst at Jefferies Group Inc. said by telephone last week. “Spot rates have been weaker than last year. Net, net rates are going down.” The Drewry Hong Kong-Los Angeles container rate benchmark declined 5.7 percent to $1,650, the lowest since December 2011, in the week ended June 18 as four general increases this year have failed to hold. Nippon Yusen K.K., Japan’s largest shipping line by sales, predicts its container line business will return to profit this fiscal year as sales increase. The shipping line, which operates a fleet of 96 liners, forecasts current profit will be 3.2 billion yen ($32 million) in the year ending March 31, compared with a current loss of 700 million yen last business year, according to figures from the company. Nippon Yusen predicts it will carry 696,000 standard containers this fiscal year, compared with 663,000 last business year. “The increase in shipments to the U.S. is a plus for the container line business,” Ryota Himeno, an analyst at Barclays Securities Japan Ltd. said by telephone this week. “It’s one of the positive signs that the marine industry has been waiting for.” Source: Bloomberg

Paris MoU Issues Report on Port State Control

The Paris MoU published its report on 2013’s worldwide flag performance, “White, Grey and Black Lists.” The report indicates further improvements towards quality shipping. Last year Thailand and the United States of America were moved up to the White List. This year Kazakhstan, Saudi Arabia and Switzerland moved from the Grey List to the White List. Georgia, Lebanon, Saint Kitts and Nevis, Libya and Albania moved from the Black List to the Grey List.

There are now 46 flags on the White List, one more than last year. The Paris MoU has France leading the list, followed by Norway and Sweden. Several flags have made a significant move upwards on the White List in the top 10: Norway, Italy, the United Kingdom and Finland. Other flags have made a significant move downwards in the White List and are no longer in the top 10: Bahamas and Greece. Recognized organizations (RO) are delegated by flag states and carry out most of the statutory surveys on behalf of flags. For this very reason it is important to monitor their performance, the Paris MoU said. The best performing RO over the period 2011-2013 is Lloyds Register, followed by American Bureau of Shipping and Det Norske Veritas. Korean Register of Shipping has dropped out of the top five and has been replaced by Nippon Kaiji Kyokai.

According to the report, the worst performing RO is INCLAMAR. For several years a joint submission with the Tokyo MoU to IMO has addressed the correlation between flags and ROs working on their behalf. For the first time this information has been published in the Annual Report. The combination of the Republic of Moldova with Dromon Bureau of Shipping and Maritime Lloyd (Georgia), as well as Togo with International Naval Surveys Bureau, and Sierra Leone with Phoenix Register of Shipping resulted each in a 9% detention rate over a three-year rolling period.

The introduction of the New Inspection Regime in 2011 has also had an impact on the 2013 figures. A decrease in total number of inspections has continued, as well as the total number of deficiencies. Compared to 2012 the detention percentage has slightly increased to 3.8%. Italy, the Netherlands, Spain and the United Kingdom contribute most to the overall inspection efforts in terms of percentage. With a total of 28 ships refused access to Paris MoU ports



in 2013, this was the highest number recorded since 2005. Although it was anticipated that the number of banned ships would rise, an increase of 87% (from 15 in 2012) compared to last year was not anticipated. Multiple detentions was the most common reason for banning in 2013. With 1,188 inspections and 154 detentions the ships flying a black listed flag score a detention rate of 12.96%. For ships flying a grey listed flag the detention rate is 7.64% (851 inspections, 65 detentions) and ships flying a white listed flag 2.82% (15,551 inspections and 439 detentions). The full 2013 Annual Report has been published on parismou.org. Source : MarineLink

Teekay acquires interests in LNG carriers Teekay LNG Partners has acquired ownership interests in four LNG carrier newbuidlings from BG Group. The 174 000 m3 Tri-Fuel Diesel Electric (TFDE) LNG carriers will be constructed by Hudong-Zhonghua Shipbuilding (Group) Co. Ltd. in China. The LNG carriers, which are scheduled to deliver between September 2017 and January 2019, will each operate under 20-year time-charter contracts, plus extension options, with Methane Services Ltd, a wholly-owned subsidiary of BG. Teekay Corp. has acquired a 30% ownership interest in the first two LNG carrier newbuildings with the balance of ownership held by CETS (an affiliate of China National Offshore Oil Corp. (CNOOC)) and China LNG Shipping (Holdings) Ltd (CLNG), and a 20% ownership interest in the second two LNG carrier newbuildings with the balance of ownership held by CETS, CLNG and BW Group. Teekay Corp. will provide construction supervision services for the LNG carrier newbuildings and technical management of the LNG carriers upon their respective deliveries. The Partnership will finance its pro rata equity interest in future shipyard installment payments using a portion of its available liquidity with the balance of the total cost of the vessels financed with a new approximately US$ 800 million long-term debt facility secured by the vessels. Peter Evensen, Chief Executive Officer of Teekay GP LLC, SAID: “We are pleased to announce this accretive acquisition, which adds liquefied gas to the Teekay Group’s strategic relationship with BG Group while also establishing new relationships with China-based partners […] The long-term time-charter contracts for the four newbuildings, which complement and expand Teekay LNG’s existing fixed-rate contact portfolio, will provide further stability for the Partnership’s cash flows. These vessels also further strengthen Teekay LNG’s existing pipeline of growth projects scheduled to deliver between 2014 and 2018, which includes 10 LPG carrier newbuildings, through our Exmar LPG joint venture, and five MEGI LNG carrier newbuildings." Source : LNG Industry

BF bags newbuild charter Russian owner BF Tanker has landed a deal with Lukoil for the first of its new tanker/boxship combi

carriers.

The company said the 5,589-dwt Balt Flot 1 is launching this week at the Oka shipyard in Russia. Nine more ships will follow by October 2015. It will carry oil products for Litasco, the oil major’s international trading subsidiary. The multi-product carrier can also transport crude, plus 148 teu of containers, 340 cars and heavy bulk cargoes. BF is part of the UCL Holding group, which also owns the shipyard.

Costa Concordia Capsizing Costs Over $2 Billion for Owners

The Costa Concordia disaster, when the cruise liner capsized off Italy more than two years ago, will likely end up costing the ship’s owners just over 1.5 billion euros ($2 billion), a company executive told a German newspaper. “So far, our costs are at 1 billion euros. But that does not include 100 million for the ship to be broken up for scrap and the cost of repairing damage to Giglio island,” Michael Thamm, chief executive of Costa Crociere – a unit of Carnival Corp and operator of the ship – told weekly Bild am Sonntag. The disaster dealt a blow to the image of Carnival, the world’s largest cruise operator, which in March forecast an annual profit below analysts’ estimates as it cut prices and spent more on advertising to attract customers. Luxury liner Costa Concordia hit rocks as it sailed close to the island of Giglio off Tuscany in January 2012, killing 32 people and setting off a chaotic evacuation of crew and passengers, some of whom jumped into the sea and swam ashore. The hulk of the 290-metre ship was righted and secured in a complex operation last September and, with the arrival of calm summer weather, is due to be towed to Genoa to be broken up for scrap in the coming days. “If everything goes well, we can complete this unprecedented salvage project this month,” Thamm told Bild am Sonntag in an interview published on Sunday, adding he expected recycling of the ship to take almost two years. Thamm said Costa Crociere managed to retain 95 percent of its customers following the ship’s sinking, thanks in part to “significant” discounts. Some 50 to 60 percent of Costa



Concordia’s surviving passengers have since taken another cruise with the company, he added. Source : MarineInsight

Lifeboat called out soon after taking part in displays for the public

Port Erin’s lifeboat crew were called out to deal with an emergency soon after the village’s Lifeboat Day fundraising event ended last Sunday The lifeboat had just re-housed after completing displays for the crowds in the bay when the volunteer crew were paged after reports of a kayaker in trouble below Bradda paths. The boat was launched at 4.3 pm and arrived at the casualty minutes later to find that a person that had been kayaking had capsized and suffering with the effects of cold water immersion, was helped onto the rocks with the assistance of coastal path walkers. The man was then transferred from the rocks to the lifeboat, was then given first aid, before being taken back to Port Erin jetty to be

assessed by paramedics and coastguards. Source : Isle of Man Today

Israel Pushes Ahead with Zim Restructure

The ZIM LONDON outbound from Haifa Photo : Peter Szamosi (c)

Israel Corp said on Sunday it would move ahead with a restructuring plan for its subsidiary shipping company Zim after a court ruled last week that the government must be more flexible with its "golden share" in the company.

The holding company said, however, it would push back by a week to July 15 the deadline to complete a proposed $3 billion restructuring in Zim. An Israeli court ruled the government could keep its golden share, which gives it veto power over some major decisions, while raising the amount of stock shareholders are allowed to sell without government approval. The fate of the golden share had been holding up implementation of the restructuring.

The ruling called for Zim to seek authorization for shareholders to sell 35 percent or more of its stock, rather than a previous 24 percent. But it must notify the government before shareholders could sell between 24 and 35 percent of the shares and give the state 21 days to state any objections. Zim, which like other shipping companies has been hit hard by a faltering global economy in recent years, had welcomed the decision. Israel Corp noted that under the restructuring its stake in Zim, Israel's largest shipping company, will fall to 32 percent after a $1.4 billion debt-to-equity conversion agreement with creditors and that this would be below the 35 percent limit set by the court. Source : Reuters

Sovcomflot extends cooperation with Sakhalin Energy

SCF Group (Sovcomflot) and Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) have signed a contract for the construction and long-term operation of three multifunctional icebreaking standby vessels to serve the Sakhalin-2 offshore energy platforms, Sovcomflot says in its press release.



The contract covers a 20 year term, during which the vessels will provide safe and reliable services for Sakhalin Energy’s platforms in the Sea of Okhotsk. The vessels will also assist with accommodation of the offshore facilities personnel. In an emergency, the vessels will help evacuate personnel from the offshore platforms and will provide oil spill response services when necessary.

The new contract is a continuation of the first agreement between Sovcomflot and Sakhalin Energy, signed in April 2014, for the construction of an Ice Breaking Supply Vessel (IBSV) and other memoranda of understanding between the two companies. This agreement means that SCF Group will have four IBSV vessels of this type under construction. When completed, the new vessels will increase the Group’s IBSV fleet to eight ships.

This new series of IBSV ‘standby’ vessels is a further development of the Vitus Bering series of IBSVs, whilst the design and technical parameters of the new vessels were specially modified to meet the needs of the Sakhalin-2 project. One of the main functions of the new ‘standby’ vessels will be their on-call duty in the platform area, to provide instant readiness for responding to emergency situations with the possibility of carrying an additional 150 persons onboard during evacuations.

The vessels of the series are the most energy efficient, in terms of their diesel consumption and propulsion systems. Their hulls are specially designed for stern-first navigation in icy conditions. The new ‘standby’ ISBVs are equipped with dynamic positioning systems, which help them maintain a stable position alongside offshore platforms. The ice class is enhanced from Ice10 to Ice15, which will ensure the safe navigation in one year solid ice of up to 1.5 meters thick, at a speed of 3.0 knots, and to keep working independently without becoming trapped in ice ridges of up to 4 metres thick.

The construction of these modern vessels is a joint project involving Russian and Finnish shipbuilders. The shipbuilding contract has been signed with the Russian company OAO USC. Around 90 per cent of the structural components for the vessels are to be produced in Russia, at the Vyborg Shipyard (part of OAO USC). The vessels will be equipped with navigation systems from the Russian manufacturer Transas, as well as Glonass satellite navigation systems. The ships will be registered in Russia, will be manned by Russian crews and will sail under the Russian Federation flag. The vessels are designed in accordance with all the prevailing regulations, standards and requirements of the relevant international conventions and the Russian Maritime Register of Shipping. This means they are able to operate with a high degree of environmental safety in the waters of the Far Eastern seas, which is especially important in the light of tightening environmental protection regulations.

Sergey Frank, President & CEO of Sovcomflot, said: “This agreement is a logical extension of many years of successful cooperation between Sovcomflot and Sakhalin Energy. It follows preparatory work which was undertaken by technical specialists from both sides and the Russian shipbuilders. The arrival of these three advanced vessels of their class in Sea of Okhotsk will enhance the safety of shipping in the area whilst minimizing the associated environmental risks. We are grateful to our partners for the opportunity to extend our participation in the Sakhalin-2 project, and to continue our record of providing best-practice, safe and reliable transportation services. “SCF Group’s development strategy places a high priority on developing our operations within harsh climatic areas, involving projects and providing employment in the remote offshore areas of the Russian Arctic and Far Eastern regions. We support the participation of Russian shipbuilders in the project to deliver technologically advanced ships. Over recent years, Sovcomflot has established a successful track record in operating an IBSV fleet. Our fleet has four vessels of this kind, one of which is successfully working in Sakhalin-2. In short, we provide our clients with safe and reliable marine transportation in the harsh climatic conditions of the Sakhalin shelf”.

On the occasion of the signing the contracts Roman Dashkov, Chief Executive Officer of Sakhalin Energy, noted: “Signing of the agreements for the supply of three multifunctional vessels for the Sakhalin-2 project is the result of the successfull long term work that lasted for more than two years. We are glad to continue our cooperation with Sovkomflot, the corporation that has consistently demonstrated its status as a reliable and competent partner. Sakhalin Energy strives to maximize Russian content in the Sakhalin-2 project. Today we have signed the contracts for the supply of icebreaking standby vessels that are designed in accordance with all Russian and international standards of safety of navigation”.

Currently Sakhalin-2 employs six Sovcomflot vessels, including three Aframax type shuttle tankers, two LNG gas carriers and one IBSV. Sovcomflot Group (SCF) is Russia’s largest shipping company and a world leader in the maritime transportation of hydrocarbons as well as the servicing and support of offshore exploration and oil & gas production. SCF is the largest operator of ice class LNG gas carriers in the world. The company’s fleet (owned & chartered) specialises in hydrocarbon transportation from regions with challenging icy conditions and includes 153 vessels with a combined deadweight of over 12,64 million tonnes. A third of these vessels have a high ice class. Sovcomflot supports large-scale offshore energy projects in Russia and overseas, including: Sakhalin-I, Sakhalin-2,



Varandey, Prirazlomnoye, Tangguh, and Peregrino. The company is registered in Saint-Petersburg and has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, Madrid, Singapore and Dubai.

Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the operator of Sakhalin-2, one of the world’s largest integrated oil and gas projects, which has developed major infrastructure for hydrocarbon production, transportation and processing. The Company exports crude oil produced in the Sea of Okhotsk and LNG produced at Russia’s first LNG plant built by Sakhalin Energy in the south of Sakhalin. The Company’s shareholders are Gazprom (50% + 1 share), Royal Dutch Shell (27.5% - 1 share), Mitsui and Co. Ltd. (12.5%) and Mitsubishi Corporation (10%). The project’s infrastructure created by the Company includes, among other things, three offshore ice resistant platforms, the Trans-Sakhalin Pipeline System, which comprises 300km long offshore pipelines, an onshore gas pipeline and an onshore oil pipeline, 800 km long each, the Onshore Processing Facility (OPF), the Oil Export Terminal (OET), and Russia’s first and so far the only LNG plant which accounts for over 4 percent of the world’s LNG. The main buyers of Sakhalin Energy oil and LNG are countries of the Asia Pacific Region. At present, oil is delivered to China, Japan, South Korea, Indonesia, the USA, the Philippines, and Taiwan. The main LNG buyers are power companies in Japan, South Korea and China. In 2013, the Company produced over 42 million bbl of oil and around 11 million tons of LNG, and shipped 60 cargoes of oil and 166 cargoes of LNG to its buyers. Produced hydrocarbons are transported by oil tankers and LNG carriers, which either are on a long-term charter to the Company or belong to the buyers of oil and gas. LNG carriers of the Grand series were built specially for the Sakhalin-2 Project. For the first time in Russia, they are operated by Russian companies Sovcomflot and PRISCO which are part of international consortia. Source : PortNews

Imtech Marine invites integrated thinking

High revenue-earning ships need a fresh approach to systems integration to take full advantage of available efficiency gains, according to leading technical service provider Imtech Marine. Offering a unique blend of maritime-specific ‘cable to data’ expertise, including hardware, software, connectivity, remote monitoring and servicing, the Dutch Imtech Marine group is consulting with ship owners in many different markets, from workboats to cruiseships, about how best to maximise returns from investment in technology. As new emissions regulations loom and fuel price uncertainties resurface, Imtech Marine believes integration offers efficiency gains that will save money on a variable they actually control. “As a maritime business built on technical knowhow, we have a contribution to make in terms of optimising the use of technology in pursuit of best returns from assets,” says André Meijer, Managing Director Imtech Marine. “We are a company focused on offering flexible total solutions, so our experience is that buying technology on a one-off basis to address an immediate operational or regulatory challenge often invites open-ended expense later.” Imtech believes that greater vessel efficiencies are available by integrating technology onboard and data management ashore to create ‘SMART’ infrastructure. Meijer adds, ”With the complete package we can provide, we are uniquely able to connect hardware, processes, data and people and help to create smart operations and integrated fleet management.”

Case study evidence

An illustration of the benefits available from integration have been provided by performance results from Hallaig, the first diesel electric, hybrid ferry for Caledonian Maritime Assets Ltd (CMAL), which came in service in 2013. Imtech Marine’s hybrid DE plus rechargeable battery technology, its Energy Management System and onboard systems optimisation combined to cut the fuel bill by 38%, against a target of 20%.

Imtech’s ability to deliver one-stop solutions recently saw it secure its first complete Integrated Bridge System retrofit for Holland America Line onboard Westerdam, with all navigation and communications hardware and software installed in an eight-day time slot. Two more HAL cruise ships are set to follow.

Eric Clarke, Director Service Americas, says: “There are obvious reasons to upgrade to state-of-the-art technology, but some of the advantages only become available when systems fit together. Control settings can be customised to individual crew or corporate level needs, for example. More specifically, part of the Westerdam project involved optimising the interface between the autopilot and the podded propulsors to deliver fuel savings to the owner.”

Imtech technical integration, as well as its global design and service support capability, was also a feature of complex offshore vessels built in Singapore and Korea, for interests owned by Royal Boskalis Westminster NV, DEME Group and Subsea 7. The supply packages included dynamic positioning (DP), diesel electric propulsion, electrical power systems,



vessel management (VMS), automation, navigation and communication, bringing integrated control to the complex balance of coordinated engine, DP-system and thruster operation.

Enhancing vessel maintenance

Cumulatively, the power of integration is felt most keenly in vessel maintenance, says Nico van Leeuwen, Imtech Marine Director Global Service Sales. “Of course, when a ship needs immediate service, our global network of service locations based on the classic Radio Holland brand, now being relaunched, means qualified service engineers and spare parts are always close by to support maximum vessel ‘up time’. However, opportunities are growing to manage service and maintenance without setting foot on the vessel, with data accumulated via the onboard IM Maintenance PC, and Imtech’s Global Technical Assistance Centers (GTAC) tuning technologies on individual vessels remotely.” One direct beneficiary has been Seaway Heavy Lifting (SHL), where connectivity issues onboard the heavy lift vessel Oleg Strashnov threatened a contract to lift 23 platforms within 6-months. Here, an integrated approach between the Imtech GTAC and work onboard overcame a six week delay facing service engineers seeking boarding permits.

Maximising efficiency gains

Wider plant efficiency is critical for cruiseships, says Andre Gebken, Head of Cruise Ship Department, Imtech Marine Schiffbau-/Dockbautechnik. “To achieve ‘Air in line with demand’, an approach is needed that squeezes every last percentage out of efficiency, with HVAC being controlled by timers, by cabin cards or by C02 sensors,” he says. “For example, recently we have measured efficiency gains yielded by absorption coatings optimising heat and moisture recovery.” In addition Imtech has been able to improve payload by using decentralised AC concepts and reducing newbuilding costs by enhancing engine ring and building processes, to deliver ‘slimmer and sharper’ unit designs for example. The same solutions-driven approach is central to the HelWin Bèta Offshore Wind Energy project in the North Sea, where it was necessary to ensure that the production equipment onboard is cooled, but not over-chilled. Imtech was able to significantly reduce the number of Air Handling Units used, to deliver greater efficiency and achieve a significant weight reduction. This demanded integrated control of Local Instrument Rooms and Local Equipment Rooms via both Air Handling Units and Chillers (Cold Water Makers), while fan coil units in recesses were able to take care of local cooling or heating. Imtech Marine was also recently selected by BAE Systems to provide electrical distribution and HVAC systems for the UK’s Type 26 Global Combat Ship Programme, where the need to provide protection against chemical, biological, radioactive and nuclear threats added an extra complication. Meijer comments: “Imtech Marine’s widespread HVAC, CBRN and electrical system integration expertise provided a thorough understanding of the complex interrelationships between power supply and consumer loads.” Visit Imtech Marine on stand B6.200 at SMM 2014

CASUALTY REPORTING

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Barge Sinks With $38 Million in Power Cables Aboard

While loaded with a USD $38 million cargo of power cables destined for the North Sea, the 1984-built cable barge AMT EXPLORER capsized and sank on 3 July while approximately 50 miles southwest of Sardinia. The cargo is owned by cable manufacturer Prysmian and according to a statement released by the company, destined to connect the TenneT-operated Butendiek and Deutsche Bucht wind farms offshore Germany. Prysmian notes that Smit Salvage has been contracted to conduct the vessel and cargo salvage. Source : gCaptain

NAVY NEWS Shiloh departs Singapore

The Ticonderoga-class guided-missile cruiser USS Shiloh (CG 67) departed Singapore following a scheduled port visit from June 25-29. “Visiting Singapore was a fantastic opportunity for us,” said Capt. Kurush Morris, Shiloh’s commanding officer. “The port visit allowed us to experience the cultural diversity of the people of Singapore, work with the Singapore Navy, and enjoy some well-deserved relaxation. On a personal level, I was able to visit members of my extended family who have lived in Singapore for many years." While in port, Sailors took part in a variety of activities that allowed them to meet with the people of Singapore and experience the rich local culture and history. Sailors also had the opportunity to participate in a community relations (COMREL) project. The COMREL allowed Sailors to interact with members of the local community by providing assistance to members of the Asian Women’s Welfare Association Students Meet for Interaction, Learning Enrichment Services and the children they provide service to. “It was really rewarding, to be able to work with the children,” said Fire Controlman 3rd Class Tory May. “It’s hard for us to realize how hard it is to live without being able to do everything we do every day. This has been my best experience here so far.” Along with events like the COMREL, Sailors assigned to Shiloh also were able to go out and explore Singapore on their own. “That was my first time here,” said Information Systems Technician 2nd Class Evan Abrahamsen. “I went around and saw a lot of sights, and had a lot of fun in Singapore.” Shiloh is currently on patrol with the George Washington Carrier Strike Group in the U.S. 7th Fleet area of responsibility supporting of security and stability in the Indo-Asia-Pacific region Source : dvidshub.net



SHIPYARD NEWS

Korean builders overtaken by China in H1 new orders

South Korean shipbuilders were overtaken by their Chinese rivals in the first half of the year, yielding their top position, industry data showed Friday. Data showed they also lagged behind Japan in June.

South Korean shipyards clinched new orders for 164 ships totaling 5.55 million compensated gross tons (CGTs) in the January-June period, down 29.5 percent from 230 ships totaling 7.87 million CGTs a year ago, according to the data by global market researcher Clarkson Research Services. During the same period, their share of global ship orders fell to 27.1 percent from 31.8 percent. In contrast, Chinese shipbuilders won orders for 481 ships amounting to 9.09 million CGTs, increasing their share to 44.4 percent from 39.9 percent. CGT, an indicator of the amount of work needed to build a given ship, is used as a tool to compare inter-country shipbuilding output. It is the generally used measure for the volume of orders received. In terms of the value of new orders, Chinese shipbuilders took US$14.5 billion in new orders in the first half, outdoing $13.2 billion for South Korean competitors. In June, South Korean shipbuilders dropped to third place after falling behind Japan, accounting for 16.6 percent of new global orders compared to Japanese rivals’ 25.9 percent. Chinese shipbuilders grabbed 47.7 percent to rank No. 1.

The data showed that global new orders for merchant ships tumbled 17.2 percent to 944 ships totaling 20.48 million CGTs in the first half, compared with 1,236 ships totaling 24.73 million CGTs a year earlier. New monthly orders on the global market have been declining for six consecutive months since December when they reached 373 ships amounting to 7.94 million CGTs. As of end June, global order backlogs posted 5,274 ships totaling 112.27 million CGTs, the lowest so far this year. Source: Yonhap

Shipbuilders’ Q2 earnings outlook increasingly dim: data

South Korea’s major shipbuilders, led by top player Hyundai Heavy Industries Co., may report poorer-than-expected earnings for the second quarter of the year, as they delivered more low-priced ships, data showed. The combined second-quarter operating income for the country’s top five shipyards, including Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., was estimated at 286 billion won (US$283 million), according to the data compiled by financial service provider FnGuide. The data were based on earnings estimates by three or more brokerage houses for each firm. Hyundai Heavy is expected to have logged an operating income of 25 billion won during the April-June period, a sharp plunge of 91.4 percent from a year earlier, and Samsung Heavy Industries may report 187 billion won in operating income, also 35 percent down from a year earlier, according to the data.

Daewoo Shipbuilding’s second-quarter operating income is estimated at 125 billion won, also down 1.79 percent from a year earlier, they showed. “Their business performance may not improve sharply this year due to delivery of low-priced ships,” said Lee Kang-rok, an analyst at KTB Investment & Securities. “Adding to this, there are fewer new

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orders, which is putting pressure on their stock prices.” The data also show that they have combined orders valued at $10.33 billion through May this year, achieving 22.7 percent of their targets for the year. Hyundai Heavy has logged $4.53 billion worth of orders in the first five months of the year, equivalent to 28.2 percent of its annual target of $16.05 billion. Samsung Heavy has bagged orders totaling $3.9 billion during the cited period, and Daewoo Shipbuilding has clinched $1.9 billion worth of orders. Shares of Hyundai Heavy have lost some 30 percent this year, closing at 179,000 won on Friday. Samsung Heavy has seen its share price drop 28 percent in 2014, while Daewoo Heavy has plunged 15 percent. Source: Yonhap

New Orders for Korean Shipbuilders in Sharp Decrease amid Chinese Share Jumping to 44%

As new orders for Korean shipbuilding companies declined significantly, Korea became market number three, far behind China. Even Japan beat Korea last month. According to the shipbuilding industry of Korea and international shipping and shipbuilding market research company Clarksons on July 4, the number of new commercial vessel orders worldwide during the first half of 2014 was 944, equivalent to 20.48 million compensated gross tonnage (CGT). This is 17.2 percent CGT less than the same period of previous year which recorded 1,236 vessels and 24.73 million CGT. Korean shipbuilding companies received 555 CGT new orders (164 vessels) during the first half of this year, 29.5 percent drop from 7.87 million CGT (230 vessels) of same period last year. Market share also declined to 27.1 percent from 31.8 percent. On the contrary, China which did not perform that well early this year swept the new orders from March, and therefore recorded 9.09 million CGT (481 vessels) of new orders. Even though number of orders decreased 7.8 percent from last year’s 9.86 million CGT, market share of China increased to 44.4 percent from 39.9 percent. In terms of total order amount, China beat Korea as well. During the first half of last year, Korea received the total US$21.7 billion of new orders, and China did US$17.3 billion. However, during the first half of this year, China received new orders worth of US$14.5 billion, whereas Korea did US$13.2 billion. New orders to Japanese shipbuilding companies were 3.45 million CGT (177 vessels) during the first half of this year, which made market share of Japan decrease to 16.8 percent from 19.0 percent. But Japanese shipbuilders are lately trying to enhance their competitive advantages over depreciation of Japanese Yen. Especially during June, Japan became market number two (25.9 percent) right behind China (47.7 percent) which received orders of 900,000 CGT, as new orders to Japan reached 4.9 billion CGT. This made Korea the third in market with its new orders worth of 310,000 CGT. Japan beat Korea in monthly new orders record for the second time this year after April. Total 91 new vessels, equivalent to 1.89 million CGT, were ordered worldwide last month, 28.6 percent drop from previous month. By month, new orders reached the peak of 373 vessels and 7.94 million CGT last December, and have begun to decrease ever since. Backlogged orders which indicate workload remaining are 886 vessels (3,295 CGT) for Korea, 2,443 vessels (4,499 CGT) for China, and 939 vessels (1,842 CGT) for Japan. An industry professional said, “The shipbuilding industry, which seemed to recover during the first half of last year, is getting into chronic recession again this year. There might be additional major restructuring of shipbuilding companies which are short of new orders.” Source : businesskorea

Ice Class Damen PSV scales new heights

Atlantic Towing (USA) has selected newly-designed, ice-strengthened PSV 5000 vessels from Damen Shipyards Group to meet its demanding 10-year offshore support contract with ExxonMobil Canada Properties and Hibernia Management and Development Company Ltd. (HMDC). The vessels will operate in the challenging sub-arctic waters of the Hibernia and Hebron oil fields, off Newfoundland and Labrador. ATL will take delivery of four PSV 5000 vessels, one of which will be equipped for inspection, repair and maintenance duties. All four will share the same fully functional PSV design platform, with the first vessel due in service in the second half of 2016. Featuring Damen’s distinctive bow design, the PSV 5000 vessels will include cost- and emissions-efficient diesel electric power plant. Jan van Hogerwou, Manager North America, Damen Shipyards Gorinchem, says: “These will be



safety critical vessels, working in sub-arctic conditions in one of the world’s foggiest places renowned for strong winds, high waves, snow and icebergs. All four will be benefit from iceberg management tools, while the IRM vessel will feature a 100 ton subsea crane equipped with an advanced heave compensation system for operation in the Grand Banks area.”

The combination of the PSV5000’s flare-less bows, slender hull lines and diesel electric propulsion with azimuth stern drives will minimise fuel consumption and emissions, offering superior sea-keeping and dynamic positioning, and ensure crew comfort in challenging sea conditions. Under Damen’s Clean Design and Environmental Care Protocol, the vessels will also feature fuel efficient generators and a selective catalytic reduction system, in compliance with forthcoming environmental regulations.

“The inclusion of Diesel Electric propulsion is a key attribute, providing efficiency, flexibility and reliability under varied operational conditions in remote locations,” says Mr Van Hogerwou. “For the crew DE delivers a far quieter working environment and a more comfortable vessel.” Mr Van Hogerwou emphasizes that, with its 940m2 of deck area, 2 ROV hangars and 2 FRC’s, the new 90m length PSV5000 is much more than a scaled up version of the Damen PSV 3300, which attracted a series of high profile orders after its launch last year.

“Securing this order reflects Damen’s flexibility in adapting our design principles to meet specific client requirements at a very competitive price level within a short delivery timeframe,” he says. The PSV5000s will join Atlantic Towing’s current fleet of nine offshore support vessels, playing a key role in the project’s iceberg-management programme, as well as fulfilling standard PSV duties. As part of its contract, Damen has committed to open a Damen certified service and maintenance centre in St. John’s, Newfoundland & Labrador). “We will have trained professionals (engineers) and spare parts available within driving distance of the homeport of these vessels,” says Mr Van Hogerwou.

ROUTE, PORTS & SERVICES Ukraine to close Crimean ports for

international ships Ukraine shall close the ports located on the territory of the Autonomous Republic of Crimea (Evpatoria, Kerch, Sevastopol, Feodosia, Yalta and Sevastopol) for international shipping, web-portal of the Ukrainian Government informs. The corresponding decree of 16 June, 2014 № 255 "On closing of the seaports", registered in the Ministry of Justice on 24 June, 2014, № 690/25467, will come into force after its official publication.

The above-mentioned document was adopted in pursuance of the decree of the Cabinet of Ministers of Ukraine of 30 April, 2014 № 578-p "Certain issues on functioning of the sea and river transport" and according to the procedure for opening and closing seaports, approved by the Cabinet of Ministers of Ukraine of 11 July, 2013 № 495. Ukraine informed the International Maritime Organization (IMO) about drawing up a decree on closing the Crimean ports in mid-May 2014. Source : PortNews

TSC cranes for SWS rigs

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Shanghai: Hong Kong-listed TSC Group Holdings, an offshore equipment manufacturer, will provide Shanghai Waigaoqiao Shipbuilding (SWS) with six deck cranes for two JU2000E design jack-up rigs, which are currently under construction at SWS. The six ABS -certified 198-200VE model kingpost cranes will be installed on the SWS H1348 and H1349 jack-up rigs, with delivery expected in June and August 2015, respectively. The TSC-designed and manufactured VE kingpost deck crane series have been used on 400-feet jack-up rigs worldwide. Source : SinoShipNews

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OLDIE – FROM THE SHOEBOX

Most probably Henk Ros has been one of the few radio officers who has been lucky enough to be on both ends of the towline. Above is a photo of the tug SMIT ROTTERDAM towing the disabled Liberian tanker GETAFIX from Vigo / Spain to Europort. Undersigned as R/O was requested to remain o/b and act more or less as 2nd navigation officer during the towage. (the 2nd and 3rd officer refused to “sail” without a R/O so I was (humbly) requested by owners whether I would stay o/b. although in tow, with more than a little Basic navigation skills I volunteered. ( Folks at home were not so pleased ). The passage in the Biscay Gulf was not so pleasant as shown in the photo. as shown in the photo, we were not exactly following neatly be hind the tug.upon approaching the English Channel the heavily sheering tow was escorted by French naval vessels and a tug. Photo : Henk Ros ©

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Bird’s Eye view of the Tall Ships moored in Harlingen last weekend including the EENDRACHT and on the right bottom a Damen FCS 2008 and several solar powered boats ready to start the Dong Energy Solar Challenge Sprint Photo: Hans van der Linden www.aerolin.nl @AerolinPhotoBV ©

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