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Sea Asia Today | Thursday, 23 April 2015NEWSThursday, 23 April 2015 | Issue 3

IMO urges offshore to explore possibility of global governanceT he IMO secretary-

general Koji Sekimizu has urged the offshore

marine industry to explore the possibility of having a global governance similar to the shipping sector.

The offshore marine industry is “considered new” to the UN organisation, unlike the shipping sector which is already heavily regulated, Sekimizi told delegates at the Sea Asia 2015 offshore marine forum..

“When it comes to the offshore sector, the issues are directly related with the sovereignty of the states, so it is not easy to think about global governance in this (offshore) field,” Sekimizu said.

Michael Chia, managing director of Keppel Offshore & Marine, pointed out that offshore activities occur in state waters, hence there are specific rules

and requirements that the respective governments require, making it a challenge to implement global governance.

Offshore industry players were urged by Sekimizu to explore and discuss whether they are happy with the current state of matters without any forms of global

governance or they would prefer being regulated by an international organisation.

In the conventional shipping sector, IMO has a range of regulations including ship safety standards, ship operating standards, pollution preparedness and prevention standards, a regime for oil damage compensation, maritime shipping security, technical cooperation

and training, among others.“Currently, members of the IMO

Committee do not represent the interests of the offshore industry. Industry players can cooperate among yourselves and explore the potential of cooperating with an international organisation,” he said.

Meanwhile, Sekimizu highlighted that IMO is looking at the possibility of providing “some sort of international guidance on manning”, which is directly related to the welfare of seafarers.

“Even within the shipping industry that is so heavily regulated by the IMO, when it comes to a standard for manning, the fact is that IMO has not yet decided on this,” he shared.

He added that the issue of preventing oil pollution may be connected to manning and training, where better standards on manning would translate to higher competencies of seafarers so as to reduce the chances of pollution due to human errors.

Glittering Launch Page 12Oil price impact Page 2 Best Stands Page 6

www.zamiloffshore.com

Koji Sekimizu

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Sea Asia Today | Thursday, 23 April 2015

NEWS

The Offshore Marine VIP Breakfast at Sea Asia 2015 was a full house on Wednesday morning.

Over the course of breakfast, participants were treated to the insights of five expert panelists covering the length and breadth of the offshore industry. The panelists represented P&I insurance with Standard Club; offshore broking and consultancy

with M3 Marine; OSV owner and operator with Miclyn Offshore Express; a law firm with Holman Fenwick and Willan; and satellite communications provider Singtel.

The discussions centred around the impact of the fall in the oil price.

From the insurance and legal perspectives there were concerns that companies desperate for business were accepting contract terms that they could later come to regret and create legacy issues for the sector. One of the concerns was that contract terms currently being accepted would become the future standard.

While the current market conditions

are widely blamed on the oil price, the point was made that the offshore marine sector would have faced overcapacity even without the lower oil price, and that cycles of boom and bust had always been the norm. Risks were seen as highest for speculative buyers and those who have entered the industry in the last decade.

The latest downcycle could drive consolidation with distressed companies potentially making the most interesting acquisition targets rather than individual vessels.

There were also concerns over crew quality and safety with owners looking to either cut crew numbers or replace experienced staff with more junior ones. However, the point was also made that it was making vessel operators look more closely at their costs they had during the boom years and run their vessels more efficiently than they had in the past.

The advent of lower cost satellite communications also provides for opportunities for owners and operators to streamline their operations.

Longer term there was a recognition the sector will bounce back, however, participants were less than sure when this would be.

Discussing the impact of the falling oil price on offshore

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Sea Asia Today | Thursday, 23 April 2015NEWS

O rient Overseas (International) Limited (OOIL) chief Tung Chee Chen raised the intriguing idea

of shipping alliances extending their cooperation to include shore-based activities.

He was sharing his insights on The Changing Dynamics of the Container Shipping Industry at the Singapore Maritime Lecture, organised by the Maritime and Port Authority of Singapore, on Wednesday.

Tung, OOIL chairman, president and ceo, said in an interview that while shipping lines are now investing in megaships, which helps reduce unit costs on the ship-side, land-based costs also made up a significant portion

of a carrier’s overall expenditure. “There are a lot of shore-side

operations that you need to manage. In fact, the shore-side expenditure is quite a bit higher than the sea-side. It really needs you to think more than the ship-side in how you manage your business so you can create operating margins. This is really the dynamic of our industry.”

In joining forces on both the ship-and land-sides, shipping lines can reduce operational overlaps and generate cost savings, which would benefit the consumer.

Even if carriers were to agree to do so, they still need to jump over some major anti-trust hurdles across the

world. As it is, governments around the world are already keeping an eagle eye on industry players to ensure that they do not contravene their respective anti-trust laws.

As Tung puts it succinctly, “Currently, we are not allowed to do that.”

Just whether carriers are likely to get the green light for closer cooperation, he replied candidly, “I don’t know. I just want to put the case forward.”

Tung also pointed out that greater collaboration among carriers may not necessarily reduce competition.

With closer cooperation, he said, “If that takes place, is that good for the market, is that good for the consumer? Because you would tend to have a lot fewer players in the industry, I would imagine that the competition level will be reduced. However, if you are allowing more cost-saving capture, more smaller companies would have the capacity to compete with the bigger companies, therefore preserving the competition.”

OOIL chief looks to shore-based alliances

The bad news: there will be at least two and a half years more of pain for the dry bulk sector.

The good news: with the ordering boom having come to an end and scrapping starting to gain traction, there could be some changes to fleet growth by as soon as the early part of next year, according to Braemar ACM Shipbroking group research director Peter Malpas.

Speaking on the dry bulk panel at the Sea Asia 2015 Conference, Malpas

noted that March this year has seen record s c r a p p i n g a c t i v i t y a m o n g

bulkers with more than 5m dwt going to the scrapyard while about 10.1m dwt was scrapped in the first quarter of this year.

“If we continue scrapping at that rate, we will see fleet growth

start to change by the early part of next year and the oversupply will be starting to erode by the end of 2016,” said Malpas.

“So while there is still a significant amount of overcapacity there is some light at the end of the tunnel. Towards the second half of 2017 we will start to see some support for the market,” he added.

Malpas also suggested that newbuilding prices would start to slide

but with limited downside. “Newbuilding prices are starting to come down but I don’t think this is going to lead to a significant ordering phase that we saw in 2013,” he said.

With almost no fleet growth in the capesize market this year, there may even be the prospect of some spikes in freight rates as early as the second half of this year when demand from the major markets kick in, according to Berge Bulk Singapore ceo James Marshall.

Looking ahead, Noble Chartering head of freight Michael Nagler was not too optimistic, but said there could be the possibility of surprise spikes during the year due to short-term supply constraints.

Norden vice-chairman and interim ceo Klaus Nyborg meanwhile said he has already written off the rest of the year, and has concerns about excess capacity on a number of fronts. As a result, he sees no reason for optimism until at least 2016.

“There is a lot of negative sentiment out there but there are some signs, albeit small, that there is an end in sight of this depressing period,” concluded Malpas.

Light at end of tunnel for dry bulk?

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AGENDA

0900 - 1030 hrsSHIP FINANCE

• The current climate for ship finance • The role of private equity in ship finance• Export credit, the state of the orderbook and

shipyard capacity• How the Chinese banks’ relationship with the shipping

industry is developing

Session Moderator:MARK LONG, Head of Corporate Sector Group, Asia-Pacific, The Hongkong and Shanghai Banking Corporation Limited

Speakers:MARTIN BROWN, Partner and Head of Business & Finance, Ince & Co Singapore LLP ALAN HATTON, Chief Executive Officer, FSL Trust Management Pte LtdLI XIANG, Deputy Director, Transport Finance Department, China EXIM Bank ANDREAS ØSTERN, Senior Vice President, Shipping, Off-shore & Logistics, DNB Asia YANG CHANG KUN, Managing Director, Shipping, ICBC Leasing

1030 - 1100 hrsDelegate Coffee

1100 - 1230 hrs

LNG TRANSPORTATION

• The impact of geo-politics and energy prices on gas trades and what they may mean for LNG carrier demand

• Japan, China and India as factors in the expansion of demand for LNG in Asia

• The shale revolution in the US and the prospects for the US as a major LNG exporter

• Will the recent surge of newbuildings be absorbed by expanding demand?

• The emergence of a spot market for LNG carriers in a more flexible market place

• Changing pattern of LNG movements and its significance for the Panama Canal

Session Moderator:MARCUS HAND, Editor, Seatrade Global

Speakers:RALPH LESZCZYNSKI, Head of Research, banchero costa

LUO XIAOFENG, Director, China Classification Society (CCS) Wuhan Rules & Research InstituteJOHN NG, Chief Executive Officer, Singapore LNG Corporation Pte LtdSERGEY POPRAVKO, Managing Director, Unicom andMember of the Board, Sovcomflot GroupJORGE L QUIJANO, Chief Executive Officer,Panama Canal Authority

1230 - 1430 hrs

Delegate Lunch

1430 - 1630 hrs

NAVIGATING CHALLENGES:THE WAY FORWARD

Shipowners are facing an increasing number of challenges from a more complex regulatory environment to manningissues. Are there any solutions for these challenges?Sea Asia puts a panel of experts together to discuss theway forward:

• Navigating the complex regulatory environment for the maritime sector

• Green technology for the next generation of ships• The scale and nature of the human resources challenge:

recruitment and retention• Training and education for the next generation of seafarers• Singapore War Risks Mutual: enhancing Singapore’s

maritime cluster• Maritime Arbitration: The tilt to Asia and potential issues

Session Moderator:CAPT MICHAEL ELWERT, Director, Group Strategy,HR & Support, Thome Group of Companies

Speakers:DATO JUDE P BENNY, Senior Partner,Joseph Tan Jude Benny LLPPHILIPPE DONCHE-GAY, Chairman, International Association of Classification Societies (IACS) and Executive Vice President, Marine & Offshore Division, Bureau VeritasDAVID ROBERTS, Managing Director, Charles TaylorMutual Management (Asia) Pte Ltd CHRISTER SJÖDOFF, Group Vice President, Solutions,Gulf Agency Company LtdTHOMAS TIMLEN, Area Liaison Officer/General Manager, BIMCO Asia

THURSDAY 23 APRIL 2015

Conference Programme

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Sea Asia Today | Thursday, 23 April 2015AGENDA



BASEMENT 2 UKHO SEMINAR THEATRE

LEVEL 1 SEMINAR THEATRE

Seminar Theatre Timetable

1100 - 1145 hrs

1200 - 1245 hrs

1300 - 1345 hrs

1400 - 1545 hrs

1100 - 1145 hrs

1300 - 1345 hrs

ILS Private Exchange - A New Purchasing Process

Presented by Inventory Locator Service LLC a BOEING Company

Automation and Integration of Piping Processes

Presented by 3R Solutions

Remote Monitoring Solutions

Presented by Jason Electronics (Pte) Ltd

ECDIS Implementation, Policy and Procedures Seminar• Policy and Procedures • Procurement, Installation and Onboard Maintenance • ECDIS Risk Assessment

Presented by United Kingdom Hydrographic Office with ADMIRALTYNautical Products & Services

Development in the GCC Ports Industry

Presented by Presented by DP World, UAE Region

Environment-Friendly Kawasaki GREEN Propulsion System

Presented by Kawasaki Heavy Industries, Ltd

Sponsor

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OUT AND ABOUT

Best stand awards

Best overall stand awardPSA Corporation Limited

Best Use of colour stand Award Unimarine

Best Small Stand Award VOSS (F.E.) Pte Ltd

Best Newcomer Stand Design Award Hat-San Shipyard

Best Country Pavilion Award WinnerPanama Pavilion

Largest International Stand AwardChina Petroleum Technology &Development Corporation

Best Interactive Display Stand Award Transas Marine Pacific

Best Country Pavilion Award Runner-upMalaysian Pavilion

Best Use of Space Stand Award Bureau Veritas Marine (Singapore) Pte Ltd

Best Meeting Area Stand Award Oman Drydock Company S.A.O.C

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Sea Asia Today | Thursday, 23 April 2015OUT AND ABOUT

Out and about at Sea Asia 2015

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NEWS

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Caterpillar Propulsion [L1-G11] is marketing a new version and range of tugboat packages,

which integrate its popular high-speed engines with Azimuth thrusters designed specifically for tugs.

Jonas Nyberg, regional sales manager, Caterpillar Propulsion Singapore, told Sea Asia Today, “There is now a complete Caterpillar

solution for tug boats ranging from engine to thruster to control system. It is a fully integrated system sold, distributed and serviced by Caterpillar.

Caterpillar, which is traditionally strong in the continuously-rated Azimuth thrusters for offshore

vessels, is bringing its expertise to the tug boat sector with the MTAT series of thrusters.

“We created this solution because we want to leverage on the benefits of the high-speed engine and those of thrusters that are tailor made to these applications,” said Nyberg.

The new thrusters, which are slimmer

than the continuously-rated thrusters designed for offshore vessels, will be gradually introduced to the market.

The new MTAT series has two significant features. Its control system is consolidated for the engine and the thruster on the bridge, while its clutch and shaft arrangement is integrated with the engine.

The first of the MTAT series is designed for tugboats of up to 60 tons and has already been rolled out. The rest will make their way into the market by the end of this year or early next year.

“The full range will feature units from 30 to 100 tons,” said Nyberg.

He added that the thrusters could be combined with Caterpillar’s C32, 3500 or C175 engines, which are particularly popular for tugboats.

Nyberg explained, “These high-speed engines have a very fast load response and acceleration, which improve the safety and manoeuvrability of the boats, are greatly superior to medium-speed engines. And since tug boats spend a considerable time on standby, their low idle speed saves on fuel and reduces costs.”

Caterpillar serves up complete tugboat package

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Organisers

Held in conjunction with

Asia’s premiermaritime and offshore event

Returning25 - 27 April 2017

Marina Bay Sands®

Singapore

• EXHIBITION • CONFERENCE • NETWORKING

• SPONSORSHIP • ADVERTISING

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NEWS

Engine manufacturer Rolls-Royce [B2-J21] and MTU are jointly showcasing for the first time their

extensive portfolio of marine products and service solutions at Sea Asia 2015.

At “one of the most anticipated maritime events in the region,” said Rolls Royce, their brands and products are publicly uniting for the first time for maritime customers since Rolls-Royce acquired MTU last year.

“Our objective is to showcase the capabilities most relevant to the market needs which, in the current challenging climate, are reliable and competitive solutions that address both economic and environmental targets. Sea Asia attracts much attention from our customers and suppliers, and so it is significant that we are able to present our combined strengths across the full customer life-cycle”, said Richard Bowcutt, Rolls-Royce, senior vice president, commercial marine – Asia Pacific.

The booth will provide information about

the full suite of capabilities including the latest integrated ship design and systems, medium-and high-speed engines and flexible propulsion systems such as the E-Drive system, which is a combination of a diesel engine with an electric motor, and proven LNG systems delivered to tugs and offshore and cargo vessels.

Featured at the booth are a Rolls-Royce Dynamic Positioning (DP) Simulator and a Rolls-Royce UT 771 WP Ship Model. MTU is displaying a 20V 4000 M93 diesel engine with E-Drive System scaled model. In addition, show attendees will be able to explore Rolls-Royce and MTU’s extensive range of ship designs, systems solutions, product information and other available technologies through interactive platforms.

Also being featured at Sea Asia is the DP Simulator with 40” LCD TV from Rolls-Royce provides a tool for operator training and familiarisation. It can also be used for maintenance exercises where online fault finding or signal logging is needed.

Sea Asia exhibitors are giving away some fun and useful freebies for those popping by for a look-see.

Feel the need for a little chocolate fix, Sailors’ Society [B2-L23] has mini-bars of

this cocoa confectionary. Heat getting you? Head over to Teho [B2-N11B] for a scoop of artisanal ice cream. Teho, along with Wartsila [B2-D01] serves beer just in case you feel thirsty after trekking across Sea

Asia’s two fullsome floors of exhibits. There are also calculators, coin boxes and stress balls of all shapes and sizes to be had.

So step into a booth, and treat yourself to some fun freebies.

Rolls-Royce, MTU present united front at Sea Asia

Goodies galore at Sea Asia stands

In the seminar theatre on Level 1 at Sea Asia on Wednesday, Hempel presented its HEMPAGUARD anti-fouling coating.

The coating, based on a technology, named ActiGuard, merges active silicone hydrogel solutions and biocides.

By combining the two solutions Hempel has been able to offer both significant fuel savings and resistance to fouling during idle periods.

According to Claes Skat-Rordam, marketing manager, fouling control group marine marketing, it is ideal for vessels such as bulk that may have idle periods between charters.

Launched one-and-ahalf years ago Hempel has coated 261 ships with HEMPAGUARD across all different types of vessel.

Anti-fouling coatings

from Hempel

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Sea Asia Today | Thursday, 23 April 2015NEWS

CONFIDENCE TO GO WHEREVER THE JOB TAKES YOU

PRO.SIMRAD-YACHTING.COM

INTRODUCING OUR RANGE OF

IMO GPS & AIS SYSTEMS

GN70, MX610 & MX612• Reliable, proven GPS systems• Large clearly visible displays• IMO Complaint GPS / DGPS /GNSS Solutions• Dual Certificates for Position & Heading• Flexible and Expandable Interfacing

V5035 Class A AIS• Supplied as a standalone system with junction-

box, GPS antenna and Pilot Plug• Perfect complement to Simrad IMO GPS/GNSS

systems (GN70, MX610, MX612)

Seafarer charity Sailor’s Society [B2-L23] has used Sea Asia 2015 to launch its

unique Wellness at Sea coaching and support programme to Asia’s maritime industry. Wellness at Sea has been designed to promote health and well-being among the world’s seafarers by promoting cultural awareness, emotional intelligence, social skills and spiritual well-being alongside more familiar skills competence.

The charity developed Wellness at Sea in response to calls from shipowners and managers in Asia who expressed concern over crew attrition rates and the complex problem of maintaining wellness on board.

While incidents of violence among crew members continue to make headlines, the risks to owners and managers such as ship diversions and detentions have a financial as well as social cost, as much as US$50,000–US$100,000 according to some estimates.

The Wellness programme supports the mental and physical health of seafarers in a holistic manner, addressing five topic areas: social, emotional, physical, intellectual and spiritual wellness.

Michael Elwert, director, group strategy, HR & support for Thome Ship Management, who took part in the launch at Sea Asia, said: “At Thome, we put a very strong focus on finding, training and retaining the best seafarers. Since 2005, our Global Cadet Program has trained in excess of 1,350 cadets with another 1,000 in training or due to start this year. Looking after them means attending to their social and emotional needs so that our investment in them is repaid with people who are productive and happy at sea.”

Wellness Project Manager Johan Smith will run the course in five international locations, coaching in each of the five areas and empowering attendees to pass on the lessons they have learnt to crew-mates and others under their command.

Smith says the programme is a proactive initiative that will equip seafarers with a range of knowledge and skills that can prevent rather than cure, minimise instead of react.

“Wellness at Sea introduces a philosophy which argues that to ably steer a ship from point A to point B, you need cultural competence, emotional intelligence, social skills and spiritual wellbeing alongside statutory training. Crew welfare services have historically been reactive, coming into play only once a problem arises. Wellness at Sea seeks to proactively train seafarers in areas that have been traditionally overlooked.”

Wellness at Sea from Sailors’ Society promotes seafarer health andwell-being in Asia

Michael Elwert

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NEWS

L ukoil launched its new iCOlube unit at an exciting event held at the St. Regis Hotel last night.

After a champagne reception, guests were entertained by a harpist and a table magician before the energetic musical four-piece Diverse Attentions took to the stage and wowed the crowd during dinner.

BBC World News’ Sharanjit Leyl introduced Lukoil’s ceo Victor Zhuravskiy, coo Jan Thiedeitz and regional director June Manoharan, who each gave short a short speech to the invited audience. A video gathering the thoughts of shipowners

and industry experts further imparted the benefits of the innovative system.

The system being launched at the event, iCOlube, is a unit which provides ideal cylinder oil to the engine, tailored to conditions and fuel quality, in a simple and cost-efficient manner.

iCOlube stands for intelligent cylinder oil lubrication and uses Lukoil’s Navigo 100 MCL cylinder oil, adding either fresh or used engine oil in order to provide a cylinder oil optimally adjusted to the engine’s current requirements.

With the engine always remaining at its optimum feed rate, the operator only needs to enter the sulphur content of the fuel. In this way, iCOlube ensures safe and easy operation while saving oil costs by reducing the amount of Lukoil’s Navigo 100 MCL used as pure 100 BN oil is only necessary at the highest sulphur concentrations.

Further, iCOlube reduces environmental impacts by avoiding excessive alkalinity reserves, reducing cylinder oil and fuel consumption and used system oil disposal. The environmental benefits of iCOlube compared to conventional ship operation have been evaluated in an independent Life Cycle Assessment (LCA), and the results show that considering only the aspect of climate change, this innovative approach enables a 13% reduction of CO2 equivalent emissions.

iCOlube has had a very positive reception amongst Lukoil’s customers. Around 20 units will be installed shortly and 70 further installations are in the pipeline. MSC is one of the many owners planning to install iCOlube, and will do so on all of its newbuildings. Due to its small profile and low space requirements onboard, the iCOlube unit can also be easily retrofitted.

Sparkling launch for Lukoil’s iCOlube

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Principal Sponsors

EXECUTIVE SHIP MANAGEMENT

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Supporting Organisations

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