tnker operator magazine 09-2015.pdf
TRANSCRIPT
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TANKEROperatorAUGUST/SEPTEMBER 2015 www.tankeroperator.com
Innovativeengineering forenvironmentallyfriendly products.
Becker Marine Systems faces its
responsibility for sustainable and
environmentally friendly developmentby continuously reducing the ecological
footprint of Becker products.
Furthermore we research and develop
energy-saving product innovations like
the Becker Mewis Duct. Combined
with a Becker Rudder, the Becker
Mewis Duct enables our customers
to save up to 8% of power and to
improve the EEDIof their vessels.
586 Becker Mewis Ducts have already
reduced CO2 by more than 1,500,000 t
until July 2015. 425 more Becker
Mewis Ducts have already
been ordered.
fuel saver
Visit us at Kormarine, International Marine, Shipbuilding & Offshore Exhibition,
Busan, Korea, German Pavilion, hall 4, booth no. 4S23, 20th-23rdOctober 2015
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Nord Strength
Tanker built 2013
LOA 183.0 m 49,995 dwt
Its Becker Mewis Duct
reduces CO2by 1,134 t per year
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International Registries (Far East) LimitedSingapore Branch
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August/September 2015 TANKEROperator 01
Contents
MarketsGeo-political challenges continue
Singapore Report New SSA President Join the industry
Shipmanagement centre
Norstar set for growth
FSL Trusts markets gains
Shipmanagement Wallem promotes new personnel
V.Group continues momentum
Commercial Operations Boutique agency expands Mombasa agency faces the future
As well as presenting the 1,000th Mewis Duct at Nor-Shipping, the company, through one of its subsidiaries, started to supply LNG as a fuel to
an AIDA cruise ship in Hamburg.
The fuel is transferred from a purpose deigned and built barge stationed in the port. Managing director Dirk Lehmann and his team areendeavouring to market this concept worldwide and not only to cruise ships but also to other vessel types, including LNG-powered tankers.
Despite the fall in bunker prices, Becker Marines novel design rudders and ducts will still save enough percentage of fuel for a timely return
on investment.
Innovativeengineering forenvironmentallyfriendly products.
Becker Marine Systems faces its
responsibility for sustainable and
environmentally friendlydevelopment
bycontinuouslyreducingtheecological
footprintofBecker products.
Furthermoreweresearchanddevelop
energy-savingproductinnovationslike
the Becker MewisDuct.Combined
with a Becker Rudder, the Becker
MewisDuctenablesourcustomers
to save up to 8% ofpower andto
improvethe EEDI oftheirvessels.
586BeckerMewisDuctshave already
reduced CO2 bymorethan 1,500,000tuntilJuly2015.4 25moreBecker
Mewis Ducts have already
beenordered.
fuel saver
Visit us at Kormarine, International Marine, Shipbuilding & Offshore Exhibition,Busan, Korea, German Pavilion, hall 4, booth no. 4S23, 20 th-23rd October 2015
WWW.BECK ER-MA RI NE-SYST EMS.COM
Nord Strength
Tanker built 2013
LOA 183.0 m 49,995 dwt
ItsBeckerMewisDuct
reducesCO2 by1,134tperyear
04
08
26
23
18
Anti-Piracy A three-pronged attack
Technology
30 Classification SocietiesAll change at IACS
Asset performance optimisation
RS rules in compliance
Flag states take on class
LR gains tanker success
Vetting support offered
36 Efficiency - Fuels & Lubes
Keeping vessels operational
Advantages in planning change
40 Ship Design
New ship design tools
42 Ballast Water
Problem of regrowth
43 Profile - DSM Dyneema
Synthetic fibres used in rope44 Coatings
New products and ideas
47 Tank Servicing
Statutory requirement changes
Calibrating portable gas detectors
29
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TANKEROperator August/September 201502
COMMENT
Just what are the Nigerians up to?
TANKEROperatorVol 14 No 8
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Did the Nigerians really blackball
113 tankers? It would appear so
given all the fuss that has ensued.
Intertanko, P&I Clubs and the legal
fraternity, among others have all become
involved, since a letter purported to have come
from the Nigerian National Petroleum Corp
(NNPC) suddenly landed on desks, stating that
the organisation had banned the tankers from
calling in Nigerian waters.
The letter included phrases such as
..engaging in crude oil/gas ... activities in
any... terminals within...Nigerian territorial
waters.... The directive further provides that
...the affected vessels have also been barred
from movements within ... Nigerian territorial
waters.Holes have immediately been identified in
the list of tankers allegedly banned, including
duplications, miss-spellings and the fact that
some of the named vessels had never been to
Nigeria, according to their owners and
operators.
I cannot comment too much as to the
content of the letter, as a copy did not arrive
on Tanker Operators desk, so presumably we
are not banned.
However, it has engendered a series of
warnings to owners and operators of namedculprits about ever considering calling at
Nigerian terminals. Some operators have even
gone so far as to suggest inserting special
clauses in charterparties, especially voyage
c/ps, to indemnify themselves against having a
vessel stopped when fixed to load crude oil at
a Nigerian terminal.
Are we overreacting? I guess we have to
take anything seriously, which could cause a
$90 mill plus vessel to be seized together with
her cargo and crew, as thus far, there have
been no reasons given for the blanket ban.
Until such times that we know the reasons and
how to circumvent those reasons, we had
better take it seriously.
Leading London-based law firm Holman
Fenwick & Willan (HFW) almost immediately
sent out a warning saying that the directive
was thought to emanate from the President of
Nigeria, Muhammadu Buhari.
HFW also explained that earlier this year,
the Nigerian authorities introduced a
requirement that all tankers loading crude
from Nigerian terminals complete an out-turn
verification exercise (OVE) at discharge ports.
It was thought that the recent letter could be
linked to this initiative. However, HFW
confirmed that the grounds for the ban had notbeen explained thus far and it is quite unclear
what rules or regulations the owners affected
are meant to have breached.
Wide ranging implications
HFW warned owners and operators about the
potential implications for crude oil tankers
operating within Nigerian waters, which could
be wide-ranging. Whilst steps are being taken
to understand the ban, HFW recommended the
affected owners and charterers take action to
protect themselves against the consequences ofbeing included on the prohibited list.
Looking forward, owners and charterers
should also take action to ensure they reduce
the risk of being included in any
updated/amended prohibited lists, the law firm
said.
HFW also pointed out that there was a
question mark over what constitutes Nigerian
territorial waters.
For many years now, Nigeria has been a
particularly unstable country and recently
elected a new Government one of whose
election promises was to clean up corruption.
The NNPC has already stated it will look into
the bunkering/fuel oil situation in Nigeria and
within its territorial waters.
With smaller ship-to-ship transfers offshore
there is still a real threat of piracy by interests
allegedly based in Nigeria who want to steal
cargoes and resell them.
The larger crude oil loading terminals are
operated by the oil majors with the authorities
and are by and large well guarded. There are
various factions that occasionally cause
trouble around the Bonny River and Niger
Delta, but these are mainly aimed at the oil
majors operating in the area, rather than the
ships themselves.At the time of writing (24th July), VLCC
trip rates ex West Africa were above WS80 - a
healthy return for owners but not necessarily
for operators. If we see an exodus of tonnage
from this loading area with its popular heavy
crude, it could spook the market and would
obviously impact on Nigerias foreign
earnings.
Is it just a case of a new Nigerian
Government trying to exert its power over the
oil majors, who are accused of milking the
assets or are there more deep politicalundertones at work?
Hopefully, by the time you read this, the
situation will have become much clearer and
we can all breathe a huge sigh of relief. Until
then, there is nothing like uncertainty to send a
market sky high or into freefall.
One has only to remember the Middle East
wars and their affect on the tanker markets
with threats to close the Straits of Hormuz
seen almost daily.
TO
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INDUSTRY - MARKETS
TANKEROperator August/September 201504
Challenging times
ahead?Where do you begin to describe the events influencing the resurgent tanker market ofthe past 12 months, a leading broking house asked?I
n the crude sector, OPECs historic
decision against cutting crude production
to defend its market share reverberated
throughout the tanker markets. With the
oil price crashing, bunkers, which represent the
single biggest voyage expense, followed suit.
At the same time, higher global crude
production increased transportationrequirements, which supported freight rates,
said London broking house Gibson in its mid-
year review.
Towards the end of 2014, a widening
contango in crude oil futures increased
speculation of floating storage. Although the
contango was insufficient to make floating
storage profitable, earlier this year up to 30
VLCCs were chartered in anticipation of a
floating storage play later in 2015.
Increasing crude flows out of Iraq supported
Suezmax earnings, whilst exports from West
Africa to Europe remained robust, offsetting the
near disappearance of the traditional West
Africa/US crude trade.
With lower import demand from the US,
flows of West African and Latin America crude
to the East increased, boosting tonne/miledemand. In addition, the continuing conflict in
Libya provided further support to the West
African Suezmax market, albeit at the expense
of the Mediterranean Aframax trades.
In the products sector, earnings remained
under pressure over the first half of 2014.
However, the addition of refining capacity in
the Middle East began to support the market in
the second half of last year.
This, coupled with stronger global refining
margins, particularly in Europe, boosted
product trades, and subsequent product tanker
earnings. With margins remaining strong thus
far in 2015, together with an additional 800,000
barrels per day refining capacity in the Middle
East coming on stream, product tanker rates
remained at their highest levels seen since
2008.A comparison spot rates/TCE earnings on
several of the benchmark trades can be seen on
the table below. By the end of June, VLCC
earnings on TD3 (AG/Japan) had climbed to
$69,250 per day, compared with just $12,250
per day for the corresponding period last year.
Making the same comparison for TC2 (MR
37,000 tonne gasoline UK-Cont/USAC) rates
have moved from $5,500 per day last year to a
very healthy $26,500 per day.
June 2013 June 2014 June 2015Spot rates/TCE (a)
VLCC (MEG/Japan)Suezmax (West Africa - UKC)Aframax (Nsea/UK-Cont)55k Naphtha (MEG/Japan)37k Gasoline (UK/Cont-USAC)
WS TCE/day WS TCE/day WS TCE/day
VLCCSuezmaxAframax/LR2
Panamax/LR1MR (25-55k)
Deliveries Jul to Jun (25,000 dwt+)Orderbook (excl. options)VLCCs on order
S/H D/H TotalS/H D/H TotalS/H D/H Total
S/H D/H TotalS/H D/H Total
Demolition Jul to Jun (25,000 dwt+)Ldt price China / Sub Continent
VLCC NB / 10yr oldSuezmax / 10yr oldAframax / 10yr old
41 $19,75049 $9,50083 $7,25095 $10,000118 $9,000
38 $12,25072 $22,75099 $13,500110 $13,00099 $5,500
64 $69,25093 $50,000150 $69,500141 $32,250171 $26,500
13 623 6361 488 48916 900 91613 380 393105 1,756 1,816
1 625 6260 476 4768 887 8957 433 44071 1,772 1,843
1 637 6380 483 4834 927 9312 416 41859 1,821 1,880
26.2 M dwt (197)49.6 M dwt (455)
61
17.7 M dwt (162)62.1 M dwt (590)
86
16.7 M dwt (180)77.3 M dwt (599)
114
$90M $29M$56M $26M$47M $20M
9.8 M dwt (96)$315 / $430
12.3 M dwt (104)$325 / $495
4.7 M dwt (70)$220 / $390
$100.5M $50M$66M $34M$54.5M $24M
$95M $52M$64M $40M$53M $31M
(a) Assessed at market speeds of abt 13 kn laden, 11.5-12 kn ballast. Source - EA Gibson.
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INDUSTRY - MARKETS
August/September 2015 TANKEROperator
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The continued recovery in earnings was both supply and demand
driven. With the exception of MRs, fleet supply growth in both the
crude and product sectors has slowed since 2014 with supply in some
size groups even contracting, Gibson said.
Limited fleet growth is also apparent this year, which has also
contributed to the markets strength. Inevitably, with the success of the
tanker sector, the temptation to take advantage of low newbuilding prices
has resulted in a sustained period of investment across the board with the
exception of MRs.
With shipyards reporting shrinking orderbooks beyond 2016, pressure
is mounting on yards to lower their prices still further particularly with
the dearth of orders from the other shipping sectors, which are currently
in the doldrums.
At the other end of the supply chain, not surprisingly, we have seen
very little recycling thus far in 2015 with just 17 tankers (25,000 dwt
plus) sold. The largest two units were both 1992 built Aframaxes.
Lightweight prices have softened considerably since last June and at
the beginning of July stood at around $390 per ldt (basis India) about
20% lower than at the same time last year. As a result of firm rates and
lower scrap prices, not many tanker owners are currently considering thisoption.
Higher values
Secondhand values across all tanker sizes were higher than in June
2014, even for 15 year old vessels. And there have been several notable
secondhand deals, which have attracted the attention of the market.
Crude tanker values have risen faster than those seen in the products
sector, but nevertheless, there are plenty of buyers looking to invest in
both sectors. Probably the most talked about deal thus far this year was
Euronavs acquisition of four VLCCs for $96 mill apiece under
construction for Metrostar, which has given the buyer newbuilds without
adding to the orderbook.Looking at events on the political scene, little has changed since last
years round up. A resolution to the Iranian crisis is underway. The
Libyan situation remains unstable and no immediate peace process
appears to be on the horizon. Sanctions against the Russian Federation in
respect to the situation in the Ukraine remain in place but have had little
impact, as crude and product exports continue to flow.
The US Government has thus far not made any decision on
overturning the ruling on the ban of crude exports, but we continue to see
even larger volumes of products from the country.
Certainly, the next few months will be interesting. For the tanker
market, we could be entering a period of ifs and buts, as well as
entering uncharted waters, which will be challenging, Gibson said.
Orderbook
Examining the orderbook in greater detail, Gibson said that tanker
contracting activity is a good first hand indicator of near term
developments in the global fleet.
Investment has increased notably over the past couple of years,
although its intensity has varied, depending on the size group and the
year.
The number of tanker orders in 2013 reached the highest level since
2008. Although ordering activity declined in 2014; nonetheless, tanker
investment thus far this year shows all the signs of beating the 2013
record.
Stronger appetite for new tonnage in recent years has been stimulatedby a number of factors. For example, in 2013-14, counter-cyclical
investment played a big role, driven to a degree by private equity/hedge
funds and relatively undervalued newbuilding prices, which were
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TANKEROperator August/September 201506
INDUSTRY - MARKETS
particularly depressed in 2013, reaching their
lowest levels since 2004-05 in that year.
In addition, LR1 and LR2 orders were
supported by strong demand prospects, due to
expanding export orientated refining capacity in
the Middle East and India. Finally, this year the
spectacular rebound in crude and product tanker
earnings has translated into continued strong
investment in new tonnage, despite a rapidly
rising orderbook.
Looking at each tanker segment in greater
detail, 34 VLCCs were ordered during the first
half of this year - just marginally below the
2014 total and not far behind the number of
orders seen in 2013, when investment in new
VLCCs reached its highest level for several
years.
The picture is similar for Suezmaxes, with 30
orders thus far in 2015, already more than half
of all the orders for 2014 - the highest since2010. Ordering activity for Aframaxes was
considerably more muted in 2013-14, yet an
impressive rebound has been seen this year, as
since January, 40 Aframaxes have been ordered,
the highest number since 2007.
Investment in new larger product carriers has
also accelerated thus far this year. In the LR2
segment, 37 vessels have been ordered, well
above the number seen last year and more than
half in 2013, when investment in new tonnage
surged to its highest level since 2007.
In the LR1 segment, 25 orders have beenplaced since January, just marginally short of
the 2014 total, when investment in this vessel
type jumped to its highest level since 2009. In
contrast, ordering activity for new Panamaxes
has remained highly restricted, due to owners
preference for coated tankers.
Investment in new Handy/MRs has also been
very limited since 2014, albeit following an
impressive surge in orders during 2012-13.
Stronger investment in recent years has
naturally boosted the size of the tanker
orderbook, which by now has reached its
highest level since 2011-12 for most size
groups.
At present, VLCCs and Suezmaxes have the
largest orderbook, at 18% and 17%,
respectively, to their current size. The
orderbook for other tanker classes is also
substantial, with exception of Handies.
It will be interesting to see whether new
tanker ordering activity will remain at similar
robust levels during the second half of this year.
If the returns continue to beat expectations, this
will most likely be the case.
Taking into account limited prospects fortanker demolition - another consequence of
high earnings - all of the above means that the
growth in tanker supply is going to start
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TO
Source - EA Gibson.
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INDUSTRY - SINGAPORE REPORT
TANKEROperator August/September 201508
New SSA president
takes his seatEsben Poulsson was appointed as the Singapore Shipping Association's (SSA) newpresident after the newly elected Council for 2015-2017 was voted into place
at the Annual General Meeting on 30th June, 2015.
T
he new Council elected Poulsson
as successor to the outgoing SSA
president- Patrick Phoon.
Paying tribute to the work of the SSA andthe Council, Poulsson said:I am honoured
and humbled to be appointed president of this
active and vibrant organisation, consisting in
excess of 470 member companies.
And as the SSA turns 30 years old, I would
like to pay tribute to the work of the many
members who have served tirelessly on the
Council and standing committees over the
years, and, in particular, to my predecessor
Patrick Phoon, who has served on the Council
for no less than 24 years, the last four as
President.I look forward to helping to represent our
members interests to the best of my ability,
and to continue our constructive relations with
government agencies and other industry
partners in Singapore and overseas in
promoting and maintaining Singapores
position as a leading international maritime
centre.
I feel our hard working secretariat, ably led
by executive director Michael Phoon, stands
ready to help drive current initiatives forward,
and to implement new initiatives introduced
by the Council,he said.
At the 19th SSA AGM, it was announced
that the seven ordinary members nominated
for the 2015/2017 Council, most of whichserved on the previous Council, were returned
unopposed. The seven Members are:
Rene Piil Pedersen, managing director, AP
Moller Singapore.
Esben Poulsson, chairman, Enesel Pte.
Caroline Yang, executive director, Hong
Lam Pte.
Lim Sim Keat, managing director, dry
transport logistics, IMC Industrial Group.
Katie Men, managing director, Isenco
Holdings Pte.
Tan Chin Hee, executive director, PacificCarriers.
Lisa Teo, executive director, Pacific
International Lines.
To mark the SSAs 30 years of service to the
maritime industry this year, as an active voice
representing 475 corporate members and
growing, it has rebranded itself with a new
logo and embraced the tagline Navigating the
Future.
Poulsson explained: The tagline
Navigating the Future, was chosen to show
the direction that the association will be
heading towards strengthening Singapores
status as a leading international maritime
centre, which will benefit all of us in the
maritime community. This brandtransformation represents where the
association is today and our vision for the
future.
The SSA also warned that it is important to
distinguish between armed robbery and piracy
when reporting incidents in Southeast Asia
waters.
A little while ago, the SSA commissioned a
study to determine the scale of threat posed to
seafarers in the area.
The findings revealed that in the first
quarter of this year the vast majority ofincidents in this region fell under the category
of armed robbery (which is within the
territorial waters and under the jurisdiction of
the sovereign state) not piracy (which is on the
high seas).
This distinction determines whether a
merchant vessel can seek protection from the
navy/coast guard of the littoral state or from
the navy/coastguard of the vessels flag of
registry, the SSA explained.
The association said that seafarers should be
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TANKEROperator August/September 201510
INDUSTRY - SINGAPORE REPORT
ALWAYS TO BE TRUSTED
We take pride in the relationswe build with our customers,and we take pride in theproducts we deliver. This givesus the confidence to state thatwe are always to be trusted.
www.jetsgroup.com
Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway Tel.: +47 70 03 91 00 E-mail: [email protected]
aware that recent reports of pirate attacks are
in fact more likely to have been armed robbery
and targeted at specific vessel types,
particularly when in port or at anchor.
SSA calculated that, with an estimated
50,000 -90,000 vessels transiting the Straits of
Malacca and Singapore (SOMS)) each year
and further numbers sailing around the
Southeast Asia and South China seas, the
likelihood of a merchant vessel, which
exercises high vigilance and conducts anti-
boarding watch, being attacked is between
0.012 and 0.07%.
The situation in the South China Sea is
vastly different to the situation in the Gulf of
Aden where heavily armed pirates board
vessels in open seas with the intention of
taking the ship and its crew hostage for
ransom payments.
To fully understand the real scale of the
problem, the SSA commissioned the technical
report to examine incidents of armed robbery
and piracy in Southeast Asia waters and the
South China Sea.
The report undertook a detailed analysis of
the quarterly reports issued by the
International Maritime Bureau (IMB) and the
Regional Co-operation Agreement on
Combating Piracy and Armed Robbery against
Ships in Asia (ReCAAP) for the first quarter
The tripartite maritime task
forces for seafaring and shore-
based sectors formed by theMaritime and Port Authority of
Singapore (MPA) will be stepping
up efforts to encourage more
Singaporeans to join the maritime
industry.
These include increasing publicity and
outreach efforts to profile the diverse job
opportunities available, improving workplace
learning and training, and facilitating
upgrading opportunities.
This was revealed by Andrew Tan, MPA
CEO, in a speech at the 8th MaritimeManpower Singapore (MMS) 2015
Conference organised by the Singapore
Maritime Officers' Union and Wavelink
Maritime Institute.
In his speech, Tan spoke on the growth of
Maritime Singapore and the diverse
opportunities for Singaporeans, as well as
how tripartite efforts are needed to develop a
quality maritime workforce to support the
industry's future growth.
He also outlined several challenges. These
include the perception of poor living
conditions and being 'disconnected' from the
world, as well as lack of awareness of
remuneration and progression opportunities.In addition, rapid transformation in the
industry also poses new challenges.
To tackle some of these challenges and to
better support the growth of Maritime
Singapore, the two task forces will be
exploring more structured on-the-job training,
develop multiple progression pathways, as
well as facilitate transitioning of local
seafarers from sea-going to shore-based jobs.
These initiatives are in line with the
national-level SkillsFuture project aimed at
providing Singaporeans with the opportunitiesto develop their fullest potential throughout
life, regardless of their starting point. MPA
said that it will be announcing more details on
these initiatives in the months ahead.
To begin with, the task force for seafaring
will be implementing cadet allowance
reimbursement in September to support the
training of about 180 Singaporeans to
graduate with the Certificate of Competencies
(CoCs) Class 3 or 5. To recognise the
perseverance of the students to reach their
first professional CoC certification,
Singaporean cadets will also be eligible for
Achievement Awards once they completed the
rigorous training and gained practicalexperience at sea.
Under the enhanced Tripartite Maritime
Scholarships (TMSS), 20 students will also be
receiving their scholarships in August, the
highest number of recipients since TMSS was
launched in 2002.
Two new sponsors - NYK
Shipmanagement and X-Press Feeders - have
joined the TMSS programme, bringing the
total number up to five. The other three
companies are APL, PIL and PACC Ship
Managers.Besides the initiatives by the task forces,
MPA will continue to utilise the Maritime
Cluster Fund - Manpower Development
(MCF-MD) as a strategic tool to support
manpower development initiatives. Earlier
this year, MPA injected another S$65 mill to
the MCF-MD programme to attract and
groom local talent for the maritime sector
Today, Maritime Singapore comprises over
5,000 establishments employing more than
170,000 people, and contributing about 7% to
the Republic's GDP.
Singaporeans urged to join the marineindustry by the MPA
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SINGAPORE REPORT
August/September 2015 TANKEROperator
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of 2015.
Petty theft
The findings revealed that only 14% of attacks on merchant vessels
were classified as piracy. Of the remaining incidents, 85% were cases
of armed robbery with almost half of these (46%) occurring while in
port or at anchorage. The vast majority of incidents (68%) involved
petty theft by unarmed perpetrators where crew members were
unharmed and economic loss was low.
SSA said it was encouraging Masters and seafarers to ensure that
they comply with recognised methods to counter possible boarding
when traversing Southeast Asian waters and advised that, if boarded,
Masters should put the well-being of their crew first while, at the same
time, fully complying with the standing instructions of their respective
companies.
The association also pointed out that the Best Management Practices
for Protection against Somalia Based Piracy (BMP4) can be
successfully adapted for use in Southeast Asia.
Case increases
In its half yearly report, ReCAAP said that the number of piracy and
armed robbery cases against ships in Asia increased 18% year on year
SSAs new president - Esben Poulsson.
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TANKEROperator August/September 201512
INDUSTRY - SINGAPORE REPORT
to 106 during the six months ended June 2015.
This compares with 90 cases during the first
half of 2014.
"Already 106 incidents were reported at the
half-way mark of 2015. This signals the
urgency and importance of more [that needs]to be done by [the] authorities, shipping
industry and the ReCAAP Information Sharing
Centre towards improvements in the coming
second half of 2015," it said in its report.
The bulk of these cases or 62 incidents were
of petty theft.
Last year, the number of piracy and armed
robbery cases against ships in Asia increased
22% year on year to hit a 10-year high of 183.
It was the highest number recorded by
ReCAAP since it was formed in 2006 and was
formally recognised as an international
organisation in January, 2007.
Of the total 106 incidents reported during
the first half of this year, 56% were in the
Straits of Malacca and Singapore, ReCAAP
said.
Ten of the incidents were described as very
severe involving ship fuel or oil siphoning and
hijacking.
At least one incident was reported each
month during the January-June period. A total
of 11 incidents involved siphoning and
hijacking.
These incidents involved seven producttankers, two chemical tankers, one other
tanker and one supply vessel.
The key target for the perpetrators was the
oil or fuel, which the ship was carrying and
they left the vessel once the siphoning
operation was complete.
In its six month report released last month,
the IMB also highlighted the continuing trend
in Southeast Asia in the hijacking of small
coastal tankers by maritime pirates, averaging
one attack every two weeks.
According to the report, five small tankers
were hijacked in Southeast Asian waters in the
second quarter of 2015 alone, bringing the
total number of vessels hijacked globally in
2015 to 13.
IMB stressed, however, that enhanced co-operation between regional authorities is
paying off and that early detection of
approaching skiffs has resulted in attacks
being aborted.
Also highlighted was the tracking and arrest
off Vietnam of an eight-man Indonesian gang
responsible for the hijacking of the Malaysian
tanker Orkim Harmony in June. IMB also
praised the Malaysian authorities for the
conviction of nine Indonesian pirates the same
month, apprehended after the January
hijacking of an anchored product tanker off
Johor.
Pottengal Mukundan, Director of IMB said:
Information sharing and co-ordinated action
between concerned coastal states is crucial in
responding to this threat. We commend theeffort that caught one gang and also the hefty
custodial sentences imposed on another which
will help deter further incidents.
Singapore is home to many tanker owners or their subsidiaries.
I am honoured and humbled to be
appointed president of this active andvibrant organisation, consisting in excess
of 470 member companies.
Esben Poulssen, president, SSA
TO
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Maritime Solutionspowered by people
www.bs-shipmanagement.com
An ocean of expertise dedicated to safe, reliable and efcient ship management
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TANKEROperator August/September 201514
INDUSTRY - SINGAPORE REPORT
Within this feature, we look at
two - one in each category -
Bernhard Schulte
Shipmanagement (BSM) and
Norstar.
BSMs office in Singapore was establishedin 2000 and is one of nine Ship Management
Centres around the world.
The Singapore centre is ideally placed to
serve customers throughout Asia and the rest
of the world, with a stable location that is
strategically situated at the heart of the Asian
shipping industry and provides ready access to
the rest of the region.
In conversation with Tanker Operator, BSM
Singapore managing director, Bob Maxwell
said that the centre manages over 40 tankers,
from chemical tonnage, through producttankers to crude carriers, the company also
manages a fleet of gas carriers.
In total, the nine centres manage over 150
vessels in the chemical, product and oil tanker
segments worldwide through highly
experienced superintendents, who are
extremely competent in tanker operations,
Maxwell said.
Chemical tankers and high value product
tankers have always been a core part of our
expertise going back 15 years to when the
office was established in Singapore. Their
specialist nature, and the in-depth experience
required to effectively manage these vessels, is
key to BSMs success within the market of
Singapore.
We are committed to ensuring that we
deliver the highest standard of crew and
technical management with an emphasis on
safety, environmental protection and smooth
vessel operations within this industry, he said.
He explained that in particular, the Asian
and Singaporean tanker market was moving in
a positive but cautious upward direction,
driven by changes in local demand andrefinery capacity.
New business comes from both established
players and start up ventures. Whilst BSM
sees established companies growing steadily,
there are also some new players in the market
and some local trading companies who now
want to branch out into the international
market.
BSM is particularly well placed to help allof these companies using our long standing
experience and international reputation in the
tanker business, Maxwell said.
He explained that being focused on enabling
business partners to achieve their objectives
through the application of knowledge,
experience and innovation, the companys
commitment to every customer is:
Maximum vessel availability, safety,
reliability and efficiency to achieve higher
income at the lowest possible operating
cost. Protection of customer reputation through
integrity, full compliance and a top quality
safety and performance record.
Responsive global support provided
through an infrastructure of wholly owned
ship management, crew supply and
maritime training centres in over 30
locations worldwide.
He said that in line with the increasing tanker
interest in Singapore, BSM Singapore was
expanding and would continue to do so in a
controlled and co-ordinated manner.
We dont over promise or take on business
that we cant handle. All new business has to
be properly managed to the benefit and
requirement of our customers and for BSM to
maintain the long standing reputation that we
have established in the tanker industry with
vessel owners and charterers, he stressed.
Petrochemical fleet
Over half of the Singapore-managed fleet
comes from the petrochemical market and
BSMs policy is to recruit shore staff for these
vessels from the same sector to ensure thatthey have an in-depth understanding of the
industry.
It is not an option for us to quickly swap
staff from dry ships to oil or vice versa. The
same goes for our crew, as senior officers in
particular have all been properly trained
through the petrochemical environment to
ensure that this type of operating style is
second nature to them.Our specialised fleet teams of highly
trained on board and shore-based functional
specialists are in the best position to offer
responsive support, he explained.
As for training, Maxwell said that the
company concentrates on value added training
for the crews above and beyond STCW
requirements to ensure that they are properly
prepared for the high pressure working
environment on modern vessels.
Committed to recruiting, developing and
retaining exceptionally skilled personnel, BSMoperates five Maritime Training Centres
located in China, Cyprus, India, Poland and
the Philippines in addition to 23 Crew Service
Centres worldwide. Training scope includes a
mix of internal and external seminars,
workshops and on board training.
Land-based training replicates the on board
environment that seafarers will encounter in
their line of duty, including gas and safety
management courses and practical sessions on
advanced bridge, cargo handling and engine
simulators delivered at BSMs wholly- owned
facilities. BSM strongly believes that
continuous investment in training is vital to
developing capable and professional BSM
people, Maxwell explained.
As for the working conditions in Singapore,
Maxwell said that the island is probably the
most shipping friendly environment that the
company could work in. The Government
works closely with the Singapore Shipping
Association (SSA), of which BSM is a
member, with rules and bureaucracy kept to
the minimum. That is one of the reasons that
the industry continues to thrive in Singaporeand why BSM is committed to being part of
it, he concluded.
Shipmanagement is
thriving on the islandSingapore is a major centre for third party shipmanagement concerns, either
subsidiaries of major groups or standalone companies.
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INDUSTRY - SINGAPORE REPORT
August/September 2015 TANKEROperator 15
Norstar set for growthNews that Norstar Ship Management (NSM) had officially opened a crewing office in
Yangon, Myanmar recently - Norstar Crew Management Co - prompted Tanker Operatorto talk with managing director Tom Bonehill.
At the opening of the new office,
Bonehill said: The opening of
our crewing office in Myanmar is
a very significant step for Norstar.
We have been using Myanmar seafarers on our
vessels for many years now and the move to
establish our own office where we can invest
further in training and welfare is consistent
with our long term commitment to our
seafarers and Myanmar as a whole.The Yangon crewing office now undertakes
all crew manning and departure arrangements
on behalf of NSM in Singapore.
Norstar currently operates a fleet of 19
mainly oil product and chemical carriers. The
vessels are predominately manned by
Myanmar officers and crew.
Bonehill told Tanker Operatorthat the NSM
platform had been built up to manage tonnage
in all shipping sectors and the company has
the in-house expertise to undertake this. Our
focus over the last few years has been onchemical and product tankers, however, we are
able to manage other types and have crew in
our pool with experience on drybulk, container
and other sectors.
The new office in Yangon commenced
operations in February 2015 and is an
extension of the Norstar Ship Management
office in Singapore. Norstar has a pool of
around 1,000 Myanmar seafarers, which
makes it one of the largest crewing companies
in Myanmar. The company claimed high
retention rates, which are expected to grow
with the increased training and benefits now
being offered to the seafarers and their
families.
Norstar Crew Management is also active
recruiting local cadets from the MyanmarMaritime University and the Myanmar
Maritime Mercantile College.
Bonehill added: We are investing in
Myanmar for the long term and wish to play
an active role in the development of the
maritime sector in the country. We are keen to
explore the idea of setting up our own
dedicated training centre here one day and this
is something which is high on our agenda as
our fleet grows and our operations expand.
We intend to increase the recruitment of
Myanmar seafarers to become one of theleading and preferred employers in Myanmar.
Our focus will be on training crew and officers
to the highest standards supplying seafarers to
all sectors in the maritime industry, he said.
To mark the official opening in June,
Norstar held a three day officers conference
in Yangon, which was attended by around 200
clients, friends, staff and seafarers.
Bonehill explained the attraction of
Singapore by saying that it is a major shipping
hub, which caters to all of the shippingsectors. We are seeing it grow from strength
to strength, he said.
Vetting teams
Many of the oil majors have vetting teams on
the island, which he claimed worked well
being in the same time zone, as well as the
same city. Commercially, many of the main
charterers, including the traders, oil majors
and operators also have offices in Singapore.
People are happy to live and work in
Singapore with its thriving shipping
community and high standard of living. Its is
a good place to manage tankers from and the
Singapore Government has been very
proactive in thinking of ways to attract
companies, so yes we see more owners and
operators managing their tonnage from
Singapore. We definitely plan to increase the
size of our fleet managed from Singapore.
Ultimately, Singapore does need to remain
cost competitive and the margins are tight in
honest management so the Government will
need to keep a close eye on this, as no doubt
they are. Ultimately the shipowners will lookat the bottom line and if the managers costs
are too high people will look to more
competitive solutions, he explained.
Norstars Tom Bonehill.
At present, Norstars fleet consists of primarily product and chemical tankers.
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TANKEROperator August/September 201516
INDUSTRY - SINGAPORE REPORT
As for the potential new business, he said
that in tanker shipmanagement, its all about
performance to the highest standards and
having the oil major approvals. The fact is,
its expensive to switch managers when there
is a period of the vessel being unapproved,
which makes it very hard for an owner to trade
the ship commercially. Ships therefore usually
stay with one manager unless something goes
drastically wrong, and there is no cost control
or external forces insisting on the management
changing.
We have grown organically working with
trusted partners and by referrals. In such
turbulent markets as a manager its hugely
important to work with well-established and
financially secure clients. We are also
managing ships for a number of private equity
backed funds who look to outsource their
shipmanagement, and we have strategicallypositioned ourselves for this market
development. Our systems have been set up to
be transparent and meet strict reporting
requirements, which is necessary when dealing
with private equity investors.
We expect to be managing up to 40 ships
within the next two to three years. This will be
a healthy mix of third party and tonnage in
which we have an ownership interest, he said.
He added that NSM believes that the
company is recognised as a cost-competitive,
high-quality shipmanagement company with
integrity. NSM offers both commercial and
technical management services and there are
clear advantages in carrying out both for our
clients. NSM also technically manages a
number of vessels where there is no
commercial management carried out by us,
he added.
Another advantage is that ship finance is
available in Singapore, as it is in other cities
around the world. Almost all the main
shipping banks have a presence in Singapore,however, ship finance is cross-border and
NSM works with banks from all over the
world. Norstar has close relationships with
many shipping banks and they are
multinational relationships. Setting up a
shipowning business is not easy wherever you
are located in the world. Norstar arranges debt
with banks for the tonnage has invested in, he
said.
As mentioned, today NSM carries out
constant training from the new Yangon office
where the majority of the seafarers emanate
from. Forums are organised at least twice per
year in Yangon and officers and crew
frequently pass through the Singapore office
for training. In addition, a great deal of
training on board is carried out, which is often
the most effective place to conduct certain
types of practical training.
Echoing the view that Singapore is a good
place in which to conduct business, Bonehill
said that the Maritime & Port Authority
(MPA) and the Singapore ShippingAssociation (SSA) are relentless in working
with the community to make Singapore an
efficient place from which to run a business.
Norstar was founded in 1998 in
London initially as a ship
brokerage firm. In 2001, the
company relocated to Monaco tofocus on shipowning, investment
and management.
Norstar Shipping (Asia) was formed in
Singapore in 2005, which is now the
company headquarters covering all areas of
commercial and technical management.
In 2009, technical shipmanagement was
brought in-house and in 2010, Norstar Ship
Management was formed by the merger of
Ship Management Associates and Luna,
Norstars in-house technical team. Norstar
Shipping USA was established in
Connecticut, US in 2012.With over 40 years combined experience
Norstars principals, Chris and Tom Bonehill
have been actively involved in the shipping
industry since 1989. The Bonehill brothers
worked for major shipbroking companies
(Clarksons London/Hong Kong, Arrow
London, Island Shipbrokers Singapore) until
Norstar UK was established in 1998. Norstar
ceased competitive shipbroking in 2007 to
concentrate on its own shipowning and
shipmanagement activities.
Norstar Ship Managements team is
largely made up of the ex-in-house technicaldepartment for a well-known US
product/chemical tanker owner. Many of the
present staff worked with this company for
17 years managing a fleet of about 20
vessels, most of which were built in
Japanese shipyards. In 2010, Norstars in-
house shipmanagement company integrated
the team into its existing technical platform
and NSM was formed.
NSM - a potted history
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INDUSTRY - SINGAPORE REPORT
August/September 2015 TANKEROperator 17
The 2007-built AframaxFSL
Shanghai and the 2005 and 2006-
built MRsFSL HamburgandFSL
Singapore were fixed to a leading
global commodities trader, believed to be
Trafigura, for a fixed period of two years withoptions to extend the agreements at a higher
rate for the MRs for a further six months and
the Aframax for a further 12 months.
The charters are due to commence during
the second half of this year and are anticipated
to generate up to $61 mill in revenue during
the next three years, the Trust said.
During the two-year base period under the
new employment,FSL Shanghais net daily
rate represents a 54% increase, whileFSL
HamburgandFSL Singapores net daily rate
represents a 31% increase for each vessel,compared with the previous timecharter
agreements.
The Trust said that the increased rates
reflected the continued tanker market
improvement and demonstrate FSLTMs
ability to achieve strong charter rates with
good counterparties ensuring stable cash
flows.
FSL Trust CEO, Alan Hatton, commented at
the time: "The new rates are significantly
above the current employment rates for the
three vessels and the projected revenue will
generate significant cash flow for the Trust.
These new contract agreements are another
positive step forward for the business,
providing stable and improved cash flows for
the Trust.
Hatton told Tanker Operatorthat the Trust
has no immediate plans to expand the fleet.
We do want to grow the Trust and start
renewing the fleet in due course. We would
continue to be sector agnostic, driven by
originating and executing deals in markets
where we believe the fundamentals support
investment, focusing on working with firstclass counterparties, minimising residual risk
and achieving strong returns on equity.
When asked if it is company policy to
continue down the share route, or look at other
forms of financing, Hatton said; We continue
to keep our options open at this stage. Wehave delivered an approximately 80% return
for our unit holders in the last 12 months and
the focus is on continuing to demonstrate
strong performance.
We continue to work on various initiatives
to improve our capital structure. This has been
helped by becoming compliant with our loan
terms at the start of the year and being listed
gives us a variety of sources of capital to
target. Getting the balance of sources of
capital right will be a significant determinant
in the success of the Trust, as it is for any
shipping business, he stressed.
Gearing reduced
He also said that the Trusts gearing ratio has
moved from 59% to 49% since the end of
2013, thus managing the relationship between
debt and equity in the business is an important
strategic driver.
The Trust has a variety of deals in place for
both technical and commercial management of
the fleet. Hatton explained that vessels that
remain leased out on long-term bareboat
charters are technically managed by therespective lessees, except in the case of the
TORM bareboat charters, where a third party
manager was engaged by TORM.
For the vessels employed on timecharters or
in a pool and revenue-sharing arrangements,
the Trust works with best-in-class technicaland commercial managers. The technical
managers include Columbia Ship Management
(Singapore) and Thome Ship Management
both of whom had helped the Trust drive
operational efficiencies across the fleet
without compromising on quality and safety.
Commercial managers, Teekay, Nordic
Tankers and HANSE Bereederung have helped
ensure improved rates on the redelivered
vessels, he explained.
Since 2013, we have adopted a new
approach to managing the commercial and
technical requirements of our business, which
has meant having to more carefully weigh the
value of spending more on shipmanagement
costs against achieving improving operating
results.
Our goal is to bring shipowner efficiency
by introducing the right kind of best practices
and standards so that the commercial and
technical sides of our business work together.
In terms of managing our operating expenses,
weve found that paying more attention to how
managers are operating the vessels allows us
to contain the unbudgeted side of costs but weare not merely saving, but saving wisely. In
some instances we might decide to spend a
little to save much more, Hatton said.
FSL Trust reaps the
benefits of strongmarketIn July, FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust
announced new period timecharter contracts for an Aframax and two MRs.
FSL Trust CEO Alan Hatton.
TO
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TANKEROperator August/September 201518
INDUSTRY - SHIPMANAGEMENT
Starting at the top, last May, David
Price joined the Wallem Group as
managing director of Wallem Ship
Management.
Price has worked in all senior levels of
shipmanagement and has a high degree of
experience in technical management, manning,
procurement and quality and safety. He beganhis career in shipping as a deck officer,
leaving as a Master.
Wallem Group CEO Simon Doughty said at
the time of the appointment; Shipping is a
constantly changing world, and a very
competitive one, so to continue to deliver what
our clients and stakeholders want today and
predict their future needs, we have combined
the right people and expertise.
Wallem Groups growth plans include
increasing the commercial, technical and crew
managed fleets, introducing progressive toolsand systems to both the Group and clients,
building a strong logistics network in Asia,
and escalating commercial focus and activity.
In Europe, late last year, Wiebke Schuett
was promoted to managing director, Wallem
Europe. She is well known with Wallems
clients in her previous role in leading the fleet
personnel team in Europe.
Capt Deepak Honawar, a veteran of Wallem
Ship Management and former Wallem
seafarer, is leading the Wallem Singapore hub,
while Mingfa Liu joined Wallem Ship
Management in January 2015 as managing
director, Wallem Ship Management China - a
newly established role within the Wallem
Group.
Based in Wallems Shanghai office, he is
concentrating on the Groups relationships
with shipyards and drydocks in China, and
represents Wallems shipmanagement services
in the region.
Vijay Soman, who started his career as a
Wallem cadet, now leads the safety, quality
and insurance teams. He is an example of how
a seafaring career can grow into so much morewithin the same company, given the right
opportunities and development, Wallem said.
Capt Fared Khan is leading the fleet
personnel teams, which encompasses
recruitment, retention, crew welfare and
training, to deliver future-ready seafarers who
are professional, safety conscious and
dedicated to their jobs.
Ioannis Stefanou was appointed in 2014 to
lead the technical management business of
Wallem, delivering clients a reliable, qualityservice from the shipmanagement service hubs
in Hong Kong, Singapore and Europe.
A long-term Wallem procurement expert,
Mark Haslett continues to deliver Wallem
clients a reliable and value for money service
with Marine Buying Services (MBS), which
he offers to non-Wallem clients seeking
similar cost savings and quality.
Three new positions in the technical
management team were also recently
established to capture the expertise of senior
staff and focus them on the needs of clients -head of Dry Fleet Operations, head of Tanker
Fleet Operations and head of Car Carrier
Operations. The tanker head is Akhileshwar
Roy.
Wallem Ship Management now technically
manages around 122 tankers of which 18 are
VLCCs.
AMCL fleet
An example was the 10th and final VLCC,
which entered into the Groups management
from Associated Maritime Co (HK) (AMCL),
a member of the China Merchants Group, in
mid-February this year. The AMCL vessels
were taken under management under
BIMCOs Shipman contract commencing in
October, 2014.
Speaking at the time, Doughty said: We are
proud to be partnering with another strong
Hong Kong-based shipmanager. AMCL was
looking for a company which could offer a
good record in VLCC experience and had the
crewing pool to quickly take over the vessels.
In conversation with Price and director of
sales & marketing, Nigel Moore, TankerOperatorwas told that Wallem has
specifically developed the three
shipmanagement hubs - Hamburg, Singapore
and Hong Kong- and tankers can be managed
from any of these locations.
We aim to provide services either close to
the clients time zone or where the ships mostly
trade - it is our clients' choice, Moore said.
Price confirmed that there was a lot of
opportunity in Asia.
Price cited the case of Chinese owners
wishing to break into the tanker market where
Wallem could add value as a third party
manager by adding oil major approval to the
vessels.
It is not easy to set up a new venture, as oil
majors want a track record before giving the
vessels their approval, he said.
Another factor for oil majors is TMSA,
which once set up is a lot easier to
continuously improve. Price said he thought
there was a TMSA III in the offing next year.
The shipmanagement concern has created the
post of oil major relationship manager, who is
an ex BP employee.
Wallem has been managing tankers since
1971. The first third party managementcontract was for a brand new fleet of 10
product tankers for Gotaas-Larsen. We have
since developed a specialist team that focuses
Wallem sets its
stool outSince the end of last year, it has been the case of all change within the Wallem Groupwith various senior appointments announced.
Wallem Shipmanagements new MD David
Price.
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INDUSTRY - SHIPMANAGEMENT
August/September 2015 TANKEROperator 19
not only on our owner's requirements but the
needs and demands of their charterers whom
must also be kept happy, Moore said.
As for training, Wallem runs tanker specific
courses at the groups main training centres in
Mumbai, Manila and also Qingdao, at which
the next generation of Chinese tanker crews
are being prepared.
With finance appearing to be easy to come
by today, Wallem is marketing its services to
the financial sector. Moore explained that
Wallem was among the first to manage
distressed assets from the banks by which the
group took over both the technical and
commercial management until vessels could
be upgraded, traded and eventually sold. The
vessels included product and Aframax tankers.
We continue to do this business along with
managing vessels for many of the traditional
tanker owners. In more recent times, we haveseen the advent of huge private equity
investment in shipping, which has been the
bigger game changer. This new category of
owner will, we believe, gravitate more to
independent shipmanagers like Wallem in the
future and away from related-party
shipmanagement companies, Moore said.
Critical mass, ie vessel numbers, has
always been quoted down the years as an
essential element in third party
shipmanagement. Moore agreed saying;
Critical mass is essential, even more so today
than in the past. With the ever increasing
legislative and compliance requirements, a
shipmanager must develop and maintain a
wide range of highly skilled staff along with a
huge knowledge bank and the systems to run it
all.
With a sufficient fleet size, we can deliver
what is required and at a reasonable cost to
our clients. At the same time, whilst Wallem is
big enough to provide economies of scale we
are not too big that we cannot provide a
tailored service to our valued clients, Moore
stressed.Price said that management fees had not
changed in 20 years and due to the raft of new
rules and regulations, shipmanagement
companies have had to bring in resources to
cope, leaving very little margin left.
He confirmed that he was looking to expand
Wallems shipmanagement sector organically,
but not at any cost. Only quality vessels and
managers would be considered.
Wallem also operates SeaSafe Marine, a life
boat maintenance service company, which
recently won its first fleet maintenance
contract to look after 20 drybulk carriers.
SeaSafe Marines current client list includes
companies from across the maritime sector,
including those operating tankers.
SeaSafe is described as an independent
lifeboat servicing and testing organisation
(ILSTO). It is an authorised representative of
major lifeboat and davit manufacturers, with
class and flag approvals.
Wallem Groups other third party services
includes marine buying services (MBS), which
delivers procurement services to third party
shipowners and other maritime businesses.MBS lowers operational costs by using
economies of scale derived from planned
project purchasing while allowing shipowners
to remain in control of all decision making,
Wallem claimed.
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TANKEROperator August/September 201520
INDUSTRY - SHIPMANAGEMENT
Tanker Operatorspoke with Matt
Dunlop, Director Marine
Operations for the group about
managing a portfolio of vessels
and services in todays market.
V Group delivers a wide range of marineservices, including technical management,
seafarer management, technical support,
procurement and ship supply chain
management, including shipmanagement
specialists - V Ships.
It employs 2,500 people in 60 locations
worldwide and manages the recruitment of
around 38,000 seafarers. The group delivers
ship and crew management services to a
diverse fleet of about 1,100 vessels, including
crude, products, chemical and gas carriers,
plus many other types of vessels.
Specifically related to tankers, V Ships
manages 300 vessels (see table for tanker type
breakdown).
Dunlop explained that the group has a
global network of 18 shipmanagement offices,
located close to the clients and their clients, egcharterers and oil majors. By setting up this
system, V Ships can offer a bespoke service in
dedicated fleet cells, supported by back office
operations.
Not all of the offices manage tankers, as this
requires a different type of capability and
experience, as well as a good relationship with
the oil majors. V Ships has thus far set up
tanker operating centres in Singapore,
Glasgow, Limassol, Dubai, Montreal, Chennai,
Fort Lauderdale, Hamburg, Oslo, Nantes and
Rio de Janeiro.
We have a superintendent near to our
vessels wherever they trade providing ongoing
support, he explained. V Groups integrated
software package links everyone ashore and
afloat in a transparent and real time manner,
including the owners of the ships, the officesand vessels. It controls everything from the
vessel log and crew management to
provisioning, maintenance, cargo and financial
accounting.
Dunlop said that V Groups only assets are
its people. Our focus is to retain our
competent experienced shore and sea staff in
order to build a team, which delivers
performance assured. This reflects our
passion and commitment for delivering the
best possible service and generating the
highest possible return on assets 24 hours a
V. Group to keep
momentum goingToday, the V Group claims to be the worlds leading provider of maritime services to thecommercial shipping industry and has become an increasingly important
player in the energy sector.
Source - V Ships.
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SHIPMANAGEMENT
August/September 2015 TANKEROperator
day, 365 days per year.
Todays role requires absolute focus on safety and
compliance with the latest legislation and protection of the
environment. We must understand the owners needs and
priorities in a difficult trading environment. In todays world,
we see an increasing emphasis on transparency and the need
to operate under the highest ethical standards. This applies to
any vessel type.
One of the biggest challenges is the development of the
next generation seafarer and shipmanager, instilling traditional
standards in a modern electronic world. V Groups risk
management, regulatory compliance and IT capabilities are
key competitive differentiators in the industry supporting the
team ashore and afloat, he said.
Training centres
Training is undertaken through a variety of methods. Dunlop
explained that today, the safety culture of the ship and shore
operation drives safe tanker performance. With this in mind, V
Group has four training centres delivering Crew ResourceManagement courses to the IMO Course Model 1.39 -
Leadership and Teamwork standards. This investment will
quadruple our throughput of CRM trained officers in 2015.
We have our knowledge-based training course matrices,
which support TMSA compliance to the highest levels of
industry best practice; and we are excited about our new
liquid cargo training simulator, which has opened in our start-
of-the-art training centre in Manila, he said.
Dunlop continued by saying that this was a considerable
investment in the staff but the group doesnt stop with training
ashore, as every tanker is attended annually for 10-14 days of
on board training and independent safety inspections arecarried out by Seatec Safety Services. We do this to ensure a
strong and healthy safety culture is embedded as part of our
performance assurance to our clients and their stakeholders,
he explained.
He also claimed that the groups high standards for safety
and corporate governance also makes it attractive to financial
institutions. We maintain a dialogue with all the major
players in the market, he explained. In recent years, the
group has worked directly with banks to manage and dispose
of distressed assets. The groups global reach was essential to
them in some cases in order to respond to fluid situations in
different parts of the world.
We were also a safe pair of hands to take oversight of what
were often challenging vessels.We maintain those
relationships now and work to be recommended as a preferred
manager for mortgagees, he said.
The more recent rise in private equity involvement in the
market is something that Dunlop has identified and actively
targeted as an area for growth. These concerns are looking to
grow and need a partner who can support those plans with
adequate capacity and reliable service delivery, he said.
Critical mass
Down the years,critical mass coupled with a large portfolio of
vessels was said to reap benefits when purchasing goods andservices. Dunlop thought that this was still very important in
bargaining power. However, it is not about volume but how
you use that volume, he said. Proper planning of procurement
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TANKEROperator August/September 201522
INDUSTRY - SHIPMANAGEMENT
around key ports and ordering early where
feasible, are essential. He said that systems
and processes were also fundamental to
executing this strategy properly.
He explained that economies of scale can be
seen in warehousing, distribution, connectivity
with primary suppliers and quality of supplies
and services, including responsiveness to any
issues, which is of equal importance as cost.
With respect to crewing, the size of the
companys pool of over 26,000 positions on
board ship, allows it to absorb capacity
shocks, ie large numbers of vessels entering
management, which those having smaller
networks would be unable to manage.
He said that going forward, understanding
why shipowners and private investors
outsource is key to the future. These include -
Increased access to global labour market,
especially technical specialists. Allows shipowners to concentrate on their
core business.
Easier to benchmark operating costs.
Increased purchasing power through
economies of scale.
More flexible asset investment options -
easier to divest/invest.
Easy access to specialty services, eg
maintenance and repair.
Improved risk management.
A key characteristic of successful asset (ship)
management is consistently making sound
decisions and good compromises. It involves
carrying out appropriate tasks at the right time
and at the optimum level of expenditure.
Successful management requires the
commitment of top management and a
motivated workforce. Constant monitoring is
required with the recording of appropriate
asset information and management
measurement activity,Dunlop stressed. This
international standard relating to asset
management is the day job in V.Group!
If we can continue to focus and achieve the
above, third party shipmanagement does have
a future. Shipmanagement is a highly
competitive, tight margin business but it is
also a relationship business, built on trust andtransparency.
We will see greater consolidation amongst
marine service providers as the economics of
running a small to medium-sized operation
become less attractive and the bar to entry is
raised, he added.
The group offers a wide range of marine
services, which is another way to add value to
the groups clients when managing the vessel
running costs. They can also ensure that the
required quality standards are met. For
example, the group has a large and rapidlygrowing crew victualing business - Oceanic
Catering - which not only ensures seafarers are
fed at very competitive rates per person per
day, but also the huge investment in training
and systems, such as the new culinary centre
in Manila, means that the standard of food on
board is improved and the crew are kept
happy, as well as the owner. TO
Matt Dunlop, V.Group, director marine
operations.
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INDUSTRY - COMMERCIAL OPERATIONS
August/September 2015 TANKEROperator 23
CR Shipping & Logistics has alsoopened an office in Fujairah in a
co-operative venture with an
Omani concern, which has a
license to undertake agency services in the
area.
Risso explained that this move was part of
the companys global expansion programme,
which recently saw offices opened in both
Singapore and Hong Kong.
He said that it was the companys policy to
expand into areas, rather than go down the
acquisition trail, although there were severalstrategic joint venture agreements in place
worldwide. Further expansion plans are in the
pipeline.
Dubai joins Genoa, Singapore and Hong
Kong as a hub for their respective areas. For
example, the UAE office will market CRs
services to Qatar, Oman, Bahrain, Saudi
Arabia and Kuwait, plus India.
At present the Group operates in all
Mediterranean ports, Singapore, Hong Kong
and has further expansion plans in Asia,
Europe and the Americas.
CR was founded in 1946 in Genoa by the
current presidents father, but is now
headquartered in Monaco and has offices
throughout Italy, France, Spain, Slovenia,
Panama, Singapore and Hong Kong and now
Dubai. North Africa is also covered through
co-operative agreements.
The agency currently handles more than
4,000 ship calls worldwide. Almost any port in
the world can be served through the hubs or
by the joint ventures, as more and more
companies are demanding a worldwide agency
agreement with just one provider.Risso described the company as a boutique
ships agency/port logistics concern rather
than a conglomerate similar to the larger
service providers, thus providingtailor-made services to its
clientele.
After the considerable growth
achieved over the last 20 years,
starting in November 2013, the
company doubled its presence in
the Far East by launching the
Hong Kong branch, following the
strengthening of its Singapore
office, which provides full port
logistic services to vessels,
including cruise ships. Forexample, the Singapore branch
was started by just three people
but now boasts a staff of 15.
Tankers have formed a
significant part of the companys
service offering since the 1960s
and 1970s. The company started a
tanker broking arm in Genoa, but
has since decided to concentrate
on agency and port logistics.
Since the 1980s, CR has been
marketing its agency services to
traders, operators and charterers,
which have increasingly become
the tanker operator of today, rather
than the oil companies. Swiss-
based Vitol became one of CRs
first clients and is now a major user of the
companys services worldwide, having
become one of the worlds largest trading
houses.
Risso explained that many employees are
trained at a school in Genoa before being sent
out to work in CRs various offices
worldwide, including Singapore, Hong Kongand now Dubai.
Today, CR handles all types of tankers from
gas, fuel oil, through to crude oil carriers. The
company started with chemical tankers some
40 plus years ago as Italy was and to a certain
extent still is, a centre for chemical tanker
activity.
Full commercial management is offered,
including the provision of vessel disbursement
accounts, as CR operates an accounting
department.Next year, the family owned concern,
started by Giovannis father, will celebrate is
70th anniversary.
Boutique agency on
global expansionprogrammeNews that Monaco-based agency and logistics concern Cambiaso & Risso International
(CR) had opened new offices in Dubai on 1st July prompted Tanker Operatorto look into
the agency with the help of president and CEO Giovanni Paolo Risso.
CRs president and CEO Giovanni Paolo Risso.
TO
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TANKEROperator August/September 201524
INDUSTRY - COMMERCIAL OPERATIONS
We have added All Supply to our
original name Mombasa Ship
Chandlers Ltd because we always
manage to find exactly what is needed whether it is pre-ordered or an emergency
supply, explained All Supply Mombasa Ship
Chandlers managing director, Mohammed
Muses.
The company is a second generation family
business headquartered in Mombasa, Kenya,
which has been a member of the International
Ship Suppliers and Services Association
(ISSA) for many years and is claimed to be
the only dedicated ship supplier in Kenya with
the ISSA quality mark.
The company sources foodstuffs bothlocally and abroad to ensure quality and highly
competitive prices. It works closely with a
strategic partner in the Nairobi fruit and
vegetable market to be able to guarantee the
highest quality fresh produce, processed and
packed in strict hygiene conditions, and it
imports a wide range of internationally-
recognised dry goods brands.
This ensures we can cater for the food
requirements of everyone, including all the
ethnic groups, on board all of the international
ships calling in East African ports, said
Muses. Our range is the most extensive in the
region and our facilities include a storage area
for 300 tonnes of temperature controlled and
100 tonnes of ambient goods just a kilometre
away from the port of Mombasa.
All Supply Mombasa Shipchandlers can
also handle everything from chemicals, gases
and fire and other safety items to any spare or
replacement deck and engine parts, which a
ship may require.
It is a key contact for vessels and shipping
agents for the supply of navigational
requirements, especially from the BritishAdmiralty Catalogue.
Its team of 40 will also organise any other
service requested including pest control,
diving and cleaning,
forwarding and
customs clearance, and
any medical orchauffeuring services
needed.
We are the local
agent for Merichem
Merigases and we are
able to offer refilling
services for all required
gases in under 24
hours. In addition, we
also have a stock of
exchangeable cylinders
which we can offer formore urgent orders,
said Muses.
The company has
also built a strong reputation in the petroleum
and lubricants sector enabling it to supply a
wide variety of these products very quickly.
Clearing & forwarding
The company supplies all deck, engine,
electrical and fire and safety items that are
required and has an international supplier base
for products that are not available locally. This
is backed up by an in-house clearing and
forwarding department, which ensures that all
shipments, including urgent deliveries, arrive
at the vessels in time.
We have always had a reputation for
quality service and highest business ethics,
and now our name also reflects the extensive
range of