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5Issue 62 July/August 2016 Ship Management International
» SHIP MANAGEMENT INTERNATIONAL – ISSUE 62 JULY/AUGUST 2016THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS
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16
64
» STRAIGHT TALK
» NOTEBOOK
» SHIPMANAGEMENT
Cover Story
48
10
8 – Best not to sleep on it!
10 – Drastic remedies needed for downturn, says OSM CEO – Ship owners reject EU ship recycling licence proposals – Vantage looks to grow third party business – ISWAN launches Good Practice Guide on response to piracy – Seafarer fatigue study: will the industry wake up and pay attention?
24 Turkey – Turkey: growth is still on the agenda
48 Singapore – Is your ship as safe as it should be in today’s dangerous world?
16 How I work – Esben Poulsson – Hemant Pathania – Kaity Arsoniadis-Stein
» REGIONAL FOCUS
Early management key in working with diabetes
6 Ship Management International Issue 62 July/August 2016
» SHIP MANAGEMENT INTERNATIONAL – ISSUE 62 JULY/AUGUST 2016THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS
32 54 82
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» REVIEW
» LIFESTYLE
» MARITIME MEDICAL
» COMMENTARY
» ECOVISION
» ADHOC
» OBJECTS OF DESIRE
80 – Bringing you the best in arts & culture
82 – Bringing Titanic’s tale to life
72 – A hull new greener way of cleaning
74 – RMS St Helena makes final UK call – Team Elaborate conquers three peaks for charity – Cadwallader Debate to tackle the legal position of the Master – It’s Posidonia again for Vantage thank you party – Malta Maritime summit to debate industry stability
78 – Our pick of the most coveted creations
» BUSINESS VIEWPOINT
» MARKET SECTOR
62 P&I & Law – STX Mumbai judgment establishes legal weapon for suppliers
32 Ship Efficiency – Energy efficiency is impacted by choices made throughout a vessel’s lifecycle
70 Alternative Viewpoint – From the horse’s mouth
64 Diabetes – Early management key in working with diabetes
68 Risk Assessments & Training – “Complacency in risk assessments and training”
41 Technical Management – Turbocharging continues to punch above its weight – Few winners in the race for ship spaces
54 Safety – Safety technology defies the rigours of the ice age – Virtual robbery
78
Straight Talk
Welcome to Ship Management International
Publication of the Project MARTHA report in June threw up a number of very interesting observations that the shipping industry would do well to heed.
The initiative was set up to develop a Fatigue Risk Management System and to provide fatigue awareness training, fatigue prediction models, reporting systems as well as advise on corrective actions to take to minimise or eradicate incidents of fatigue. And the findings were startling with issues such as job security; environmental factors; job demands; sleep quality; irregular work hours; the amount of rest hours; and new regulations which could place more requirements on seafarers all contributing to fatigue.
But according to the report, the longer seafarers are at sea, motivation decreases. Both fatigue and stress levels are perceived as worse at the end of a voyage rather than the beginning by most crew, with some seafarers saying that port work is more demanding than work at sea. Sleepiness levels vary little during the voyage, suggesting there are opportunities for recovery while onboard and 48.6% of participants felt stress was higher at the end of a voyage than the beginning.
Interestingly, a comparison between Chinese and European seafarers showed that the former worked an average of 15.11 hours a day compared to European seafarers who worked an average of 10.23 hours a day.
When you factor in the long hours worked, elements of loneliness onboard ship; the lack of any tangible entertainment, poor diet and lack of exercise, these findings and others like them are serious warning signs that fatigue related accidents are just waiting to happen. That decades old adage that ‘80% of accidents are due to human error’ has never been more true.
Happy reading
Best not to sleep on it!
8 Ship Management International Issue 62 July/August 2016
July/August Issue 62
www.shipmanagementinternational.com
The shipping business magazine for today’s global ship owners and ship managers
Ship Management International (ISSN 2049-10,221) is published 6 times a year (Feb, Apr,
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10
Notebook
R adical changes of strategy and drastic cost-cutting are the only measures that will save many
companies from going under in one of the worst and longest downturns in history, Geir Sekkesaeter, CEO of ship managers OSM Maritime Group, told SMI.
In a dire warning to the global shipping industry, Mr Sekkesaeter said: “The market has more or less collapsed, expensive assets are distressed and many owners have gone to the wall. Those that think this is temporary and it’ll be business as usual once the market picks up are deluding themselves.
“A new breed of owners and investors are stepping in to buy distressed assets at reduced prices. They don’t have the cost bases and traditional working models of established owners, meaning they’ll be able to compete at a completely different level when the market does improve. Owners that don’t react to this – by expanding if they have the liquidity, or at least altering their models to reduce costs and enhance efficiency – will be in for a shock.
“This is a time for new strategies, not for sitting out the storm and hoping for the best,” said the Norwegian CEO.
The worst-hit sector according to Mr Sekkesaeter is the offshore industry. “The offshore industry has never really experienced this situation before which means many offshore companies do not have the mechanisms in place for dealing with it,” he said.
“One of the biggest challenges is that offshore assets do not have a scrap value. While you can scrap a bulker when it is 15 years old and a tanker when she is 12 and a half, offshore vessels never have a sell-by date and have no scrap value.
“Drastic measures will need to be taken as this situation is not going to go away. You won’t be able to just wake up and say this is a bad dream,” said Mr Sekkesaeter, whose company third-party manages a fleet of 500 vessels and operations in the offshore, bulk carrier, tanker, RoRo and container sectors.
“Oil companies have already significantly reduced their production costs from $100 to $60 dollars a barrel in certain areas of Norway. Other companies have been reducing the costs of their supplies which means a lot of suppliers have found more cost-effective solutions to crewing,” he said.
Another disturbing trend was over-specced vessels. Too many owners had bought vessels with more capability than they need to give them a “competitive edge” over rival companies . However, they were now paying the price for owning these expensive-to-run vessels, said Mr Sekkesaeter.
“Owners have to control their costs when times are good otherwise they may face having to spend years adjusting their cost structure during downturns while their competitors are taking advantage of the situation and putting all their resources into new investments,” he said.
“The pressure on the market has seen vessels being repossessed and taken on by financial firms that don’t have shipping operations as a core competency – they therefore need external expertise. Shipmanagement companies like OSM can take on that role and help them maximise their returns on assets, offering a complete package that delivers optimal value and operational results for all stakeholders,” added Mr Sekkesaeter. l
Drastic remedies needed for downturn, says OSM CEO
Ship Management International Issue 62 July/August 2016
Notebook
Proposals to compel ships, regardless of flag, to pay for European Union ship recycling licences when calling at EU ports, will undermine efforts by the International
Maritime Organization (IMO) to improve working and environmental conditions in developing nations, where most ship recycling yards are located.
If proposals to establish an EU ship recycling fund are taken forward, they will cause serious problems with the EU’s trading partners, including China, India, Japan, and the United States. The European Community Shipowners’ Associations (ECSA) and the International Chamber of Shipping (ICS) – which represent over 80% of world merchant tonnage – insist that the concept of the ship recycling licence, developed by consultants for the European Commission, must be firmly rejected.
According to a proposal now being considered by the European Commission, the money that visiting ships would have to pay into a proposed EU Fund, including those flying the
flag of non-EU nations, would only be returned at the end of the vessel’s working life, many years later, when it will probably have a different owner, and only on condition that the ship is recycled at a yard approved by the European Commission.
“As well as being unduly complex, widely impractical and very difficult for the EU to administer, the establishment of such a Fund will be an affront to the international community which has adopted the Hong Kong Convention on ship recycling, whose standards have already been incorporated into a similar EU Regulation,” said ECSA Secretary General, Patrick Verhoeven.
ICS Secretary General, Peter Hinchliffe added: “Such a draconian unilateral measure, especially if applied to non-EU ships, is likely to be seen by EU trading partners as anti-competitive interference into the conduct of international shipping. There is a real danger that other nations would apply retaliatory measures.” l
Ship owners reject EU ship recycling licence proposals
Notebook
Vantage looks to grow third party business
Vantage Shipping Lines with offices in Athens and London has not ruled out growing its third party shipmanagement business if the right joint venture
opportunities come along.“We are keen to grow this side of our business as long as there
is more ‘skin in the game’, said Costas Savvides, General Manager of the company. “Which is why we are more interested in the co-investment model rather than just being in the market to boost our managed fleet,” he said.
Vantage is an owner of handsize and handymax dry bulk tonnage and currently third party manages a fleet of seven similar-sized vessels. Boasting a crew retention rate of 98% for senior officers and 100% for Masters and Chief Engineers, Vantage manages a pool of over 240 seafarers on a rotational basis.
Manning of vessels is ensured by fully qualified manning agents, fully complying with National, International and Flag requirement, always in accordance with STCW.
But as Costas Savvides stressed, the future is at the core of the company’s planning with a cadetship programme fully in place to service the fleet requirements.
“Training our own officers is paramount in order to address a worldwide shortage of qualified officers. Indeed, the most valuable cadets are positioned to become the next junior and senior officers. • Operating a shipping company today is as much about nouse and gut feeling as it is about effective shipmanagement, but according to one of Greece’s oldest ship owning families, the Greeks can still roll the dice and make shipping happen.
“Shipping has always been a cyclical industry and when the markets are down many investors can be reluctant to take a risk,” said Michael Peraticos, Chief Financial Officer of Vantage Shipping Lines.
“International investors might have dipped their toes in once, but not twice or three times. But Greek ship owners are a constant to that risk-taking in the marketplace because they adjust to what the risk is.”
But as he told SMI, shipping is one of the toughest, if not the toughest, markets to predict and a lot of people have gone in, got their fingers burnt and then run out of patience. “But the Greeks will go back because they have the maritime history and they have the knowledge. When they see the odds stacked 49/51 they know the markets are going to go up at some point. It is all about knowing when,” he said. l
Notebook
14
ISWAN launches Good Practice Guide on response to piracy
Seafarer fatigue study: will the industry wake up and pay attention?
With around 100 seafarers still being held hostage ashore by various groups worldwide,
the ISWAN Maritime Piracy Humanitarian Response Programme has issued an updated Good Practice Guide for Shipping Companies and Manning Agents.
The MPHRP has launched the new guide as it says companies still need to be well prepared for seafarers being attacked
or taken captive by pirates or armed robbers, particularly when supporting seafarers and their families before, during or after an incident.
The guide has been updated with the help of the International Chamber of Shipping, the International Maritime Bureau, the International Maritime Employers’ Council and the Oil Companies International Marine Forum.
It includes recommendations on planning, and also includes templates of leaflets, nominee forms and sample communications with families, as well as other information of more general use. It is designed to supplement the existing processes of companies, and comes with the benefit of the experience of dealing with over 200 seafarers, who have been held captive by pirates. l
The length of a voyage is affecting seafarers’ morale, stress levels and fatigue, a major three-year long study has found, with 49% of participants reporting feeling more
stressed at the end of a voyage compared to at the beginning. Project MARTHA, which was funded by the TK
Foundation, gathered a large database of information – fatigue levels, sleep patterns and psychological wellbeing – from over 1,000 seafarers, and carried out a field study of over 100 seafarers working at sea.
The study was led by the Warsash Maritime Academy, and the consortium also included: the Stress Research Institute in Stockholm; the Centre of Maritime Health and Society in Denmark; the University of Southampton; the Dalian Maritime
University in China; and the ship managers’ trade association, InterManager.
Two other important results the study found were that Masters suffer from fatigue and stress more than their crews; and night watch keepers get significantly less total sleep than others onboard.
Speaking after the results were announced in late June, Captain Kuba Szymanski, Secretary General of InterManager, said: “Project HORIZON established baseline information on fatigue and Project MARTHA continued this and looked at the pressing issues of fatigued seafarers. Fatigue is a very serious issue and this research will provide the industry with the insight into what the effects are on our seafarers. I have no doubt the results will be a ‘game changer’, and that the industry will wake up and act accordingly.” l
Ship Management International Issue 62 July/August 2016
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How I work
There are not many international trade associations, inside or outside of the shipping industry, who
can boast that their Chairman or President has not only represented a country in an international sporting event but has also run multiple marathons and six 100km races.
Well, according to the CV of Esben Poulsson, newly-elected Chairman of the International Chamber of Shipping, not only did he complete his first Ocean Race from Los Angeles to Honolulu in 1965 at the tender age of 16, followed by the Victoria B. C. to Maui (Hawaii) race three
years later, but he represented Hong Kong three times in the Admiral’s Cup, in 1977, 1979 (where his team finished third out of 19 nations) and in 1981. The climax of the 1979 Admiral’s Cup was the infamous Fastnet race when 15 sailors perished in what remains the greatest loss of life in any yacht race in history – by a big margin.
“I also took part in two Sydney to Hobart races and the Hong Kong to Manila (China Sea Race) 11 times. I still sail and race to this day in my 7.5 metre Swiss-built sports boat – ideal for the relatively light winds of Singapore. Jogging also continues to be a part of my life – in the 1980s and 1990s I ran eight marathons and six 100km races in Hong Kong known as the MacLehose Trail – but today I prefer 10K races. Snow skiing also remains a passion,” he said.
So fitness and activity is an important part of Esben’s life – a sensible lifestyle choice when you consider the amount of international travelling the Chairman of such an organisation undertakes each year. But when you look at the issues facing shipping today, you can understand the need to meet industry stakeholders face-to-face to get the right message across; none more so than helping to overcome shipping’s invisible image.
“The question of shipping’s image has been a source of concern for the industry since I can remember and on August 31st I will have been in shipping for 45 years,” said Mr Poulsson.
“And I remember eminent names throughout my many years in shipping agonising and hand wringing over the fact that shipping has this poor or indeed invisible image, and trying to do something about it, but sadly without any great success.”
SMI talks to industry leaders and asks the questionHow do you keep up with the rigours of the shipping industry?
Esben PoulssonChairman of the International Chamber of Shipping (ICS) and President of the Singapore Shipping Association (SSA)
Ship Management International Issue 62 July/August 2016
Shipmanagement: How I Work
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A lot of the difficulty has been that traditionally shipping has been keen to maintain a low profile and keep itself below the radar when indeed it has been pretty obvious that with the arrival of social media, that luxury is no longer there.
Mr Poulsson again: “The reality is that very often in times of crisis, the public knows exactly what has happened before the poor owner does: such is the speed of communications. So on that basis there’s no point in doing anything other than be very upfront and transparent and be ready to showcase the tremendous progress that the industry has made over the years.”
But how can this be done, and does shipping need one clear voice to communicate these important issues?
Mr Poulsson: “On the really big issues, it makes common sense for a coherent and comprehensive voice to be heard, be it through the roundtable of shipowner associations or assembling as many industry associations as possible. But the reality of life is that a direct entry membership organisation such as BIMCO, INTERTANKO or INTERCARGO places different nuances and emphasis on the issues of common interest. And then it can be very difficult to forge a common position, unless it becomes so watered down and diluted as to resemble something of a diplomatic statement.
“But that being said, the ICS has strong relationships with the other main
associations. These relationships are worth nurturing through open dialogue, so that when it comes to the big issues, we can work to forge common positions. This will then carry a lot more weight. I say with a lot of feeling that we are trying to achieve this.”
And what are the key issues dominating the shipping agenda at the moment? “Within ICS, there are two major challenges on which we really need to focus this year. The first is working with IMO Member States to make further progress addressing international shipping’s CO₂ emissions, including our proposal that IMO should develop an ‘Intended IMO Determined Contribution’ for reducing the sector’s CO₂, similar to the commitments already made by governments as part of the Paris Agreement.
“But even more pressing from an industry perspective is making sure we are ready for the almost certain entry in force of the IMO Ballast Water Convention, and engaging with governments, especially the United States, to overcome some remaining but really serious implementation problems.
“More generally, ICS will continue to fight for the maintenance of global rules for our global industry, and continuous improvement with respect to our safety record and environmental performance. I especially want to build on ICS efforts to gain greater recognition of what the industry has
already achieved and its critical role in the sustainable development of the world economy and the improvement of global living standards.”
But as Mr Poulsson admitted, one thing is dealing with these issues while the other is trying to anticipate what else may come along and trying to constructively take a proactive stance on them. It is important that we are able to assemble the expertise necessary to influence regulators at the IMO and elsewhere such as the EU if we are to achieve pragmatic solutions to ensure that the level playing field remains level: at all times avoiding unilateral and regional legislation.
“In order to support and explain positions, it means adding credible and properly organised research. I’m pleased to say that the ICS has the budget to achieve this. A number of our member associations have contacts in academia who can also help us.
“Upping the quality and depth of our research, is going to be pretty important because ultimately in the future if you want to change minds and influence opinion you have to be backed up by fact. So I see this as being very important.
“Another important issue is adding new members to the fold. Russia joined us a year or so ago along with the Faroe Islands and I’m trying very hard to talk to a number of potential new countries to join us because again the more we have around the table, the more credible we are,” he added. l
Issue 62 July/August 2016 Ship Management International
A sk Hemant Pathania the key to successful shipmanagement and he will quote a very familiar
saying: “Don’t keep all your eggs in one basket”. As the NYK Shipmanagement CEO explains: “Our strategy at NYK is to divide up the management as there is always someone else we can approach.”
Mr Pathania’s second tip for successful shipmanagement is “to make sure that as in-house ship managers we have sufficient crews for the ships we manage in the NYK fleet.” NYK Shipmanagement fully manages 150 vessels owned by NYK Line with another 73 NYK vessels under crew management.
The CEO’s third tip for the budding shipmanagement company is Systems. “If you have a good mix of managers you can probably pick up the best practices from all of them,” he said.
Mr Pathania says he believes his main role as a ship manager is to make sure his company operates quietly and efficiently
Shipmanagement: How I Work
18 Ship Management International Issue 62 July/August 2016
Hemant PathaniaManaging Director and COO, NYK Shipmanagement
Shipmanagement: How I Work
and is not a source of concern for his customers. “I try to be like a car engine that runs with no noise,” he said.
What about the profit motive? As an in-house ship manager, NYK charges lower fees than third-party managers. Any profit the company makes goes back to the owners unlike third-party companies who are able to keep their profits. “Our focus as in-house managers is to have safe and sure operations and to have sufficient funds for that,” said Mr Pathania.
Employee retention is a key Pathania priority. NYK employs a pool of around 8,000 seafarers, most of whom are from the Philippines, followed by India, Japan, Croatia, Romania, Bangladesh, Vietnam, China and Indonesia. “We usually recruit from Singapore where the company is based and we have a retention rate of over 92% for key staff – and the main reason they stay with us is because it’s an easy place to work in,” he said.
Mr Pathania recently introduced a flexible hours’ policy at NYK. “Staff can
come in any time between 7.30am and 10am and then leave when they like as long as they work nine hours (eight hours plus an hour for lunch) which is standard practice in Singapore. As a boss I don’t wait for my staff to leave at the end of the day, however, I expect key staff to access their emails at home and to handle any emergency that comes up 24/7.”
He said the recession has had only a marginal effect on the business. “The dry bulk sector has impacted quite a bit since the recession began, so has the container business, but we are in-house ship managers and thus service providers to our main owners who’s core business is to carry freight from one place to another. We are a support function and not adversely affected to any extent. Ships must be preserved and must run and we have to maintain our people who are our most important asset whether onboard or ashore.”
NYK Shipmanagement has recently embraced big data with a project called
SIMS (Ship Information Management System) which was started by NYK Line. “The system allows us to replicate a ship’s operational parameters back to the office several times a day so we have the same information about fuel consumption, speed, wind speed and currents as the ships,” he said.
“Big data has enabled us to have safer operations as the technology onboard our ships is vastly enhanced compared to a few years ago.”
Mr Pathania believes Singapore will become the dominant shipping centre of the world as an influx of insurance companies, ship brokers, owners and managers move into the city. “It is smack in the middle of the world’s major trading route; has the world’s largest bunkering centre and, due to its location, has been the focus for ship repair, oil rigs and the offshore industry. With its finance companies, banks and financial centres it is also giving London a good run for its money,” he added. l
Shipmanagement: How I Work
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W hen you think of all the major maritime hubs that have sprung up in recent years,
they have mainly been in the East.But championing the West is Kaity
Arsoniadis-Stein, Executive Director for the newly re-established Vancouver International Maritime Centre (VIMC)which aims to promote and foster the development of Vancouver as a location for the ownership, central control and management of international shipping firms.
It is a job she is well-equipped to do, having over 15 years’ experience in the global shipping industry, working as an international maritime lawyer, firstly at Vancouver law firm Bull House & Tupper before working for various companies including Gard (UK) and shipping companies such as Teekay Shipping and Seaspan Ship Management in Vancouver.
Her previous position was as President and Secretary-General of the International Ship-Owners Alliance of Canada (ISAC) where she worked in close collaboration with ship owners and all levels of Government, promoting the interests of ship owners in Canada. She also previously served as an industry advisor to Transport Canada and Environment Canada, as well as the House of Commons and the Senate of Canada, is a member of the Canadian Maritime Law Association and past President of the Vancouver Maritime Arbitrators Association and Trustee of the Insurance Dispute Resolution Services of
British Columbia. In 2012, she was also decorated with the Queen Elizabeth II Diamond Jubilee Medal by the Governor General of Canada.
VIMC was initially established in the 1990s, when the federal government developed a National Policy for international companies wishing to set up in Canada and in December 2014, further changes were made to the Income Tax federally in order to modernise and expand on existing tax rules. The new updated rules mean that foreign-earned income of international shipping activities do no attract Canadian taxation. Furthermore, there is no requirement to flag your vessel into Canada, no tonnage tax and no minimum commitments with respect to time or number of employees.
“The system is competitive with other international shipping tax regimes. A foreign company simply establishes a branch office in Canada and can perform a wide range of activities in Canada without creating a taxable presence,” explained Ms Arsoniadis-Stein.
There are currently numerous international shipping companies in Vancouver such as Teekay Corporation, Seaspan Ship Management and Waterfront Shipping as well as marine-related companies and every classification society has an office there. There are also numerous maritime associations including the Shipping Federation of Canada.
Explaining VIMC’s role, she said: “Vancouver IMC provides advice, information and assistance to international shipping companies interested in establishing, expanding or retaining shipping operations on Canada’s West Coast.
“The VIMC would like to provide awareness in the global shipping market that Vancouver is a jurisdiction that
can now be considered by ship owners alongside other globally competitive shipping jurisdictions.”
Ms Arsoniadis-Stein explained that in terms of what Vancouver can offer, Port Metro Vancouver was the most diversified port in North America handling more natural resources and other cargo than any other port in Canada.
“Various studies show global trade will increase from eight billion metric tonnes per year to over 20 billion metric tonnes by 2030 because of the demand for natural resources from China and India. Canada is a resource-rich nation, so this indicates the Pacific Rim trading route will expand. Having a presence on the west coast of North America will be important for ship owners exploring expanded opportunities.”
Vancouver is also one of the few maritime centres which can boast its own Maritime Arbitrators Association, with over 50 arbitrators in the city.
It is also an appealing place to work and live, according to Ms Arsoniadis-Stein, because of Canada’s strong banking system, political stability, universal healthcare system and top universities which provide a strong social infrastructure for families wanting a high quality lifestyle.
Indeed, when Ms Arsoniadis-Stein is not busy working she loves to make the most of Canada’s natural beauty, swimming or sailing off one of the west coast islands, skiing or snowboarding in Whistler or enjoying long hikes.
“Furthermore, Canada is a western and strong modern economy, and first class shipping operators are attracted to being associated with the strong Canada brand. Our goal is to ensure that the industry considers Vancouver as a good, stable and competitive location, among the list of international maritime centres.” l
Ship Management International Issue 62 July/August 2016
Kaity Arsoniadis-SteinExecutive Director, Vancouver International Maritime Centre
24
Regional Focus: Turkey
Turkey, like so many nations, had already been in the headlines this summer because of terrorism
– notably, the attack on Istanbul airport that left more than 40 people dead. The OECD’s latest economic forecast summary stated that business and household confidence remained frail ‘in the context of severe regional geopolitical tensions and a difficult domestic political climate’ – a climate that was confirmed in the attempted coup on 15th July.
While it would be impossible to predict the political way forward, Turkey would appear to be on the path to continued, further growth.
While drawing attention to the fragmentation of Turkey’s business sector which, it said, undermined productivity, the OECD predicted that a sharp hike in the minimum wage in early 2016 will
boost private consumption – but conversely, that the associated increase in labour costs will hurt competitiveness and exports.
Turkey’s GDP growth was – albeit before 15th July – projected to remain close to 4% both this year and in 2017. With a GDP of $799.54bn, Turkey – population 74.5m – is the 17th largest economy in the world. In less than a decade, per capita income has nearly tripled and the country is one of the largest upper middle-income partners of the World Bank Group.
Against this background, what can we expect for the country’s maritime sector? The ongoing terror attacks in recent years have clearly dented visitor confidence, and that is reflected in a dramatic decline in cruise calls, for example. The attempted
Ship Management International Issue 62 July/August 2016
TURKEY
GROWTH IS STILL ON THE AGENDA By Felicity Landon
Regional Focus: Turkey
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coup cannot but add to that dampener. But elsewhere in the maritime sector, there is significant investment ongoing, in ports and related facilities.
“Despite a few hiccups in recent months including terrorist attacks, the attempted coup d’état and the country’s challenges with Russia, we do not expect the slowdown to continue and believe that the country will soon be back on track and advancing rapidly again,” said Timur Makzume, Managing Director of shipping and logistics services provider GAC Turkey.
Turkey is undergoing a major investment plan, he pointed out: “Bridges, ports, highways, airports are being built on a massive scale to prepare it to meet the challenges of the years to come, with the goal of becoming the gateway to the many countries that surround it. For example, the recently completed Port of Asyaport has been chosen by MSC as its hub for the entire Black Sea area.”
Mr Makzume is optimistic about the prospects for the Turkish maritime sector: especially in light of the fact that the new Prime Minister was previously Minister of Transport and Communication. All the major infrastructural investments were awarded and decided during his tenure at the Ministry and we hope that this will continue.
However, he said, the Turkish shipping sector does need to be restructured to be more competitive in world markets. “We trust that the relevant ministries will drive a much-needed overhaul.”
GAC Turkey continues its plan to be present in the major economic areas of Turkey, he said. “Today, we cover all the main port areas with our own staff and offices. Expansion has continued with the establishment of GAC offices in the hinterland of Turkey in a bid to place ourselves closer to our customers. New offices in cities such as Tuzla, Kayseri and Adana show our willingness to go the distance to be close to our markets. At the same time, our combined expertise in shipping and logistics enables our clients
to benefit from the economies of scale derived from this expansion.”
Theo Xenakoudis, Director, Worldwide Business Operations for International Registries Inc (IRI), the US-based managers of the Marshall Islands Registry (RMI), said: “Our position as a register has got better in Turkey – but in terms of overall growth, Turkey is slowing down a little. This reflects the overall market conditions and particularly the impact of Europe’s problems. You do see opportunities in Turkey but they are suffering like everyone else.”
Malta and the Marshall Islands are the dominant open register flags in Turkey. “We are the second foreign flag in Turkey after Malta, with control of about 40% of Turkish owned/managed tonnage under foreign flags,” said Mr Xenakoudis.
“Turkish owners have a lot of small general cargo ships and smaller chemical tankers, which are trading within the EU – hence the Maltese flag, as they are looking for an EU flag for trading between EU ports. Malta has been there for 20 years – we established our office in Istanbul in 2009, but by the time we developed our office and had people there, our growth was already tremendous.”
Some 145 ships totalling just over 4m gt and owned or managed by Turkish companies are flying the Marshall Islands flag – that equates to almost 4% of the register’s ships, and 3% of overall gross tonnage, and puts Turkey at number nine on the register. Broken down, RMI’s Turkish fleet is 45% bulk carriers, 40% tankers and 6% container and general cargo ships, all measured in gross tonnage.
A particular feature of Turkish shipowning is that many have not been
traditionally in shipping for many years, but have diversified into shipping from a background in other industries.
RMI has recently taken on an additional person in the Istanbul office, said Mr Xenakoudis. The register is looking to develop its yachting business, in response to the growth in megayacht construction in Turkey.
“We know that the market is very demanding in general but we do expect that things will get better and will improve; and we need to have the set-up ready for when the business grows, to be able to support our clients,” he said.
As well as recent growth, he said, a notable feature in Turkey has been the drive for quality. “There has been a tremendous improvement in quality in the Turkish market in the past five to ten years.”
Turkey is also the fifth largest ship recycler in the world, and the largest outside South Asia and China, pointed out Giedre Makauskaite, senior communications specialist at Promatech, the Istanbul-based maritime/shipbuilding R&D and innovation consultant. In addition, Turkish shipbuilding has seen a huge increase in output and export capacity, including a significant product diversification and gaining recognition for its expertise in megayacht building, where it claims third place in the world.
“Turkey’s economy is booming,” she said. “The big building projects happening in Istanbul which offer very good prospects for Turkey in the nearest future include the first section of the third Istanbul airport, to be completed by February 2018, and Istanbul’s third bridge, due for completion in August.”
The new airport will be one of the biggest international airports in the world
Issue 62 July/August 2016 Ship Management International
We do not expect the slowdown to continue and believe that the country will soon be back on track
and advancing rapidly againTimur Makzume, Managing Director , GAC Turkey
“ ”
26
once the fourth and final phase is finished in 2018, with six runways, flights to 350 destinations and an eventual annual capacity of 200m passengers.
“In 2016, global conditions remain uncertain and Turkey is not an exception,” she said. “There is a field with major potential for expansion, but the most sensitive spot for the investments is stability and an environment of trust.”
Foreign direct investment reached $16.75 billion in Turkey last year – it peaked in 2007 at $22bn, followed by $19.7bn in 2008, before the impact of the crisis kicked in. However, investments from countries within the EU remain the largest, accounting for 62% of the total.
As for tourism, Ms Makauskaite said: “The latest attack has an impact on the tourism industry. But after diplomatic moves prompted Russia to lift restrictions on travel to Turkey, this will give a great boost to the industry.”
Maritime services specialist ESKO Marine Trading has announced a new partnership with two Greek companies, Nexus Maritime and Alpha Marine, which will see the opening of a new ‘Maritime House’ in Istanbul bringing a range of operations and services under one roof.
Set up by Managing Director Erhan Esinduy in 2014, ESKO’s portfolio includes shipmanagement, crew management, shipyard representation, agency services and salvage and towage. ESKO also represents Trojan Marinex, the ultraviolet ballast water treatment systems company, and Mr Esinduy is also regional representative and general manager for the Liberian Registry, which set up its first office in Istanbul last year.
“What we are going to do is slightly different. My idea was always to create a Maritime House where ESKO offers its services, Nexus will do survey work of all kinds – they are specialised in handling claims and accidents on behalf of the
owner – and Alpha Marine will provide engineering/consultancy services,” said Mr Esinduy. “Most survey companies work mainly for the Clubs/underwriters. With Nexus, the advantage for the owner is that obviously a claim isn’t something that they are involved in as a shipping company every day. If it does happen, they need the knowledge, know-how and circle of people involved in this business to ensure their claim is handled effectively, while they can carry on with their daily operations, because obviously they will have other ships running.”
He said that Alpha Marine, presently consulting Turkish Lloyd in preparation for IACS membership, would support owners with newbuilding, ISM and ISPS advice, as well as preparation for tanker vetting. Alpha is also providing planning and approval work for the larger ships that can now access the Panama Canal for the first time, but need to be retrofitted with the required mooring arrangements.
Ship Management International Issue 62 July/August 2016
Regional Focus: Turkey
The Liberian registry’s representative office will also be located in the new Maritime House, probably from September.
Nicholas Tassios, Director of Nexus Maritime, said: “The Turkish market has a key role, especially in the Eastern Mediterranean and Black Sea areas. Nexus has not done that much work with Turkish clients so far – however, from the ones done, we noted that an expert view, especially in insurance claims handling and technical consulting, is in high demand.
“Nexus is in an expanding mood, having already set up offices, apart from our head office in Greece, in China, Singapore and Cyprus. We consider that any market has to be approached via a local office, providing the expertise and experience gained from other markets as well.”
He expects Nexus Maritime Istanbul to grow steadily, with a particular focus on marine insurance claims consulting. “It is important for us and the Turkish market to operate via a Maritime House, which may cover all marine services fields, thus
meeting any need that may arise for a Turkish ship owner,” he said.
Labros Digonis, naval architect and business consultant with Alpha Marine, said: “We are here to serve the Turkish market end-to-end and the Maritime House concept is the best vehicle for this.
“The Turkish market is of high importance to us for present business but
also for future growth. So far we’ve got a small, but steadily increasing, business during the past three years, representing 5% of our turnover. Demand is high for quality management systems and training in marine operations and systems, and the existing trust between us and our clients could be solidified through an actual present in Turkey.”
The Maritime House concept “shows our belief in the importance of collaboration in order to succeed”, he added.
“Personal relationships and trust are key elements in Turkey as well as in Greece. Turkish shipping companies are growing bigger, transforming themselves into multinational companies with results-oriented management – but still they count a lot more before entrusting us with their business.”
The Gemak Group, which lays claim to being the oldest and biggest shipbuilder and shiprepairer in Turkey, expanded three years ago with the acquisition of the Altinova shipyard,
Regional Focus: Turkey
There is a field with major potential for
expansion, but the most sensitive spot for the
investments is stability and an environment
of trustGiedre Makauskaite, Senior Communications Specialist,
Promatech
“”
30
south of Istanbul. Its original yard in Tuzla dates back to 1969; this was added to in 2000 with the acquisition of the TGS shipyard, and the group also includes NETA Pipe and Steel Construction Yard, established in 2008.
An ongoing major investment programme at the Altinova yard includes the transformation of 120,000sq m of land and a new fabrication yard, to be used for fabrication of large steel structures such as offshore platforms, floating docks, bridges and large sections of ships.
The group recently finished a major programme to fabricate steel decks for the European and Asian sides of the third Bosphorus Bridge.
Recent projects have also included a major conversion of the UAE-flag single bottom oil tanker Al Dhabiyyah and her sister ship the Arzanah into bulk carriers, and Gemak recently embarked on a mid-life refit of the world’s largest dredger, Jan De Nul’s Leonardo Da Vinci.
Selah Shipyard, established in Tuzla in 1982, opened a second yard, the Selah Gulf Shipyard, in the Kocaeli free zone area last year. Serdar Keskin, Business Development and Contract Manager, said the past year has been busy for both yards. Recent deliveries have included container, dry cargo and multipurpose ships; asphalt, oil and chemical tankers; and platform supply vessels. Among vessels under construction are a live fish carrier, a chemical/oil products tanker, a ro-ro/passenger ferry and an LPG gas carrier, alongside military projects.
Privatisation and port expansion in Turkey has led to inconsistencies for companies supplying marine services, said Tim van den Bekerom, Sales and Marketing Executive at ship supply, ship repair and trading company Arma Marine Services.
“Before 2009, most of the ports were state-owned,” he said. “Privatisation has led to the development of several ports and new ports have been built – so there is a lot of new capacity. However, there is a drawback, in that people don’t necessarily
know how to be a port authority, and every port has different rules.
“For a ship supplier like us, it has some implications. For example, in one port everyone might be allowed to come in, but in another you can come in but there may be problems with customs. In another port, you might have to pay an entrance fee, but the worst case is when only supplier X is allowed in, and not supplier Y.
“In that case, you would have to go by boat to do the supplies – and if the order is small, you would never be competitive, because the margins in this sector are not very high.”
However, he said, this year continues to be very busy for Arma. “Turnover has increased and because we are buying bigger quantities this allows us to buy directly from the source, with good results.”
At the start of last year, Arma opened a new, much larger warehouse, centralising this with its HQ offices on the same site at Izmir. “Due to the economies of scale, because of the new warehouse, we are able to have the same high quality, yet compete with the lowest prices,” said Mr van den Bekerom. “And having gone back to a warehouse and HQ in the same building really enables us to respond to our customers’ enquiries even quicker.”
Arma Marine has branch offices on both European and Asian sides of Istanbul, for deliveries to the Istanbul ports/Bosphorus Strait and Tuzla/
Yalova shipyard areas/Izmit Bay respectively; and another branch office in Bandirma, for Marmara Sea and Dardanelles Strait deliveries.
“Having our headquarters in Izmir, we are able to stay competitive due to the lower prices compared to Istanbul of warehousing, overheads, etc., and also cover all the other ports of Turkey,” said Mr van den Bekerom.
“Due to the opening of the Izmit Bay bridge, we are now able to be in Istanbul one and a half hours faster – meaning that at times it only takes one afternoon to go from order receipt to arrival at port. The general lead time for an order is two days anyway, so we are able to supply everywhere in Turkey, well on time, at a much more competitive rate.”
When it comes to the issue of port development, President Erdogan officially opened DP World Yarimca in May this year – by teleconference. The new 460,000sq m terminal has two main berths, of 465 metres and 430 metres, and six ship-to-shore gantry cranes, and can handle up to 1.3m containers annually.
DP World Yarimca is the first infrastructure project in Izmit Bay to be run by an international operator and the first in the country to use remote controlled gantry cranes with automated gate operations and vehicle appointment system for faster processing. DP World says the fast x-ray machines installed are the first of their kind in Turkey and can scan 120 containers every hour.
The terminal will, said President Erdogan at the opening, reduce costs and increase the competitiveness of industrial and trading companies in the region.
Sultan Ahmed Bin Sulayem, DP World Group Chairman, said: “The UAE and Dubai firmly believe in the future of Turkey as a natural bridge between both East-West and North-South axes, creating an efficient and cost-effective outlet to major markets and providing business easy access to 1.5bn customers in Europe, Eurasia, the Middle East and North Africa. l
Ship Management International Issue 62 July/August 2016
Regional Focus: Turkey
Personal relationships and trust are key
elements in Turkey as well as in Greece
Labros Digonis, naval architect and business consultant,
Alpha Marine
“”
32 Ship Management International Issue 62 July/August 2016
Investments in energy efficiency improvements offer cruise and ferry and merchant vessel operators an opportunity to reduce operating costs and
emissions while building a more sustainable brand image. The overall energy efficiency of a vessel is determined by the choices made throughout its
lifecycle from new build to scrapping and recycling.
Energy efficiency is impacted by choices made throughout a
vessel’s lifecycle
In the current market situation, investing in more energy efficient solutions is a good way to improve long-term competitiveness. Cruise shipping is currently one of the
fastest growing sectors in tourism, with China offering big opportunities for growth. At the same time, the merchant shipping market is declining due to the economic downturn, despite the fluctuating crude oil prices.
Moreover, industry forerunners are focused on improving safety and energy efficiency and on minimising their impact on the environment, which is an increasingly important factor for a growing number of cruise shipping customers. Tightening maritime regulation is creating pressure for enhanced energy efficiency for both existing and new fleet, as well.
An operator wishing to optimise its fleet’s energy efficiency should apply a holistic strategy by implementing comprehensive
lifecycle solutions that take into consideration the vessel’s entire journey from business planning to scrapping and recycling. Major improvements can also be achieved through assessing a specific area and applying a customised solution to it. Such solutions can be hull, propulsion and engine maintenance, machinery upgrades, or electrical and automation upgrades.
“The development of new ship design is constantly moving forward. Upgrading the existing fleet and optimising its operations as well as maintenance, propulsion and machinery are also areas in which energy efficiency can be improved. For example, continuous performance monitoring can lead to substantial savings in energy consumption while optimised and smart maintenance planning makes maintenance costs more predictable,” said Tomas Hakala, Vice President, 4-stroke Engine Services, Wärtsilä Services.
Market Sector: Ship Efficiency
Market Sector: Ship Efficiency
33Issue 62 July/August 2016 Ship Management International
The use of data and analytics are providing enormous opportunities for energy efficiency improvements, too.
“Digital technologies make it possible for service providers to collect and analyse data from an installation and remotely monitor its performance. The technical knowledge of maintenance service providers is becoming critical to supplement the ship crew’s competences,” added Maarten
van der Klip, General Manager, Project Sales & Development, Wärtsilä Services.
In 2015, Wärtsilä launched Wärtsilä Genius services, which use the benefits of real-time data and data analytics to improve the efficiency and predictability of operations. Wärtsilä Genius services can be used, for example, to optimise an installation’s energy efficiency, or even the management of an entire fleet.
Earlier this year, Wärtsilä introduced the Wärtsilä Lifecycle solutions offering, which also covers Wärtsilä Genius services. Wärtsilä Lifecycle solutions consist of three concepts that combine digital innovations and advanced data analytics with a holistic approach. As an example, guaranteed asset performance is a ground-breaking concept that provides guaranteed operational reliability, performance and uptime. This means that performance targets, for example related to energy efficiency, are determined based on measured data, and Wärtsilä can guarantee that these targets are reached and maintained.
Brent Bruun, Executive Vice President of mobile broadband for KVH Industries, and Mike Mitsock, the company’s Vice President of marketing, told an audience of invited guests at the Posidonia maritime exhibition in Athens, Greece, that the market needed to face up to the realities of how 24/7 connectivity between ship and shore is a real business necessity, and is no longer a “nice to have,” especially with the intense competition in today’s shipping economy.
Market Sector: Ship Efficiency
The development of new ship design is constantly moving
forward. Upgrading the existing fleet and optimising its operations
as well as maintenance, propulsion and machinery are also
areas in which energy efficiency can be improved
Tomas Hakala, Vice President, 4-stroke Engine Services, Wärtsilä Services
“”
Mr Bruun outlined how satellite communications can provide real value to ship operations in one of the most challenging periods in maritime history. “The KVH ‘Power of One™’ approach holds tremendous value and promise for the maritime world,” he said. “While satellite communications tend to account for less than 1% of ship operating costs, they are the lynchpin of optimising the remainder of the operating cost equation.” KVH operates the mini-VSAT Broadbands network, which provides global connectivity to thousands of vessels worldwide.
Mr Mitsock went further: “The optimisation of significant operational costs, such as fuel, through such measures as route planning and engine maintenance, can lead to sustainably lower overall costs.” Citing an example from Malaysian ship operator MISC Berhad, Mr Mitsock described further evidence of operational cost reductions. The ship operator recently credited improvements in maritime training supplied by Videotel, part of KVH Industries, with contributing to a 10% saving in dry-docking costs and a 9% reduction in MISC Berhad’s vessel operating costs. Connectivity is also a significant factor in crew retention, Mr. Mitsock said, using evidence from a Crew Connectivity 2015 Survey report by Futurenautics, which stated that “73% of respondents said that the level of crew communications services provided onboard did influence their decisions about which shipping company they worked for.”
According to Mr Bruun, ship owners and ship managers are realising that transferring volumes of shore-to-ship
data or multimedia content on a daily basis is made practical and cost-effective by using KVH’s efficient multicasting service, IP-MobileCast. The content delivery service allows mini-VSAT Broadband customers who subscribe to receive news, sports, and entertainment content with no data transmission costs. l
Digital technologies make it possible for service providers to collect and analyse data from an installation and remotely monitor
its performance. The technical knowledge of maintenance
service providers is becoming critical to supplement the ship
crew’s competencesMaarten van der Klip, General Manager, Project
Sales & Development, Wärtsilä Services
“”
Market Sector: Ship Efficiency
36
Market Sector: Ship Efficiency
The shipping industry is on the brink of a technological revolution – even though the global economy is suffering a slowdown. That is
the view of Remi Eriksen, Group President and CEO of classification society DNV GL.
But what form will the revolution take? “Our view is that the coming decade will be all about the implementation of technologies that are known to us. What’s new is the combination of advanced technologies from previously separate domains,” said Mr Eriksen in the introduction to Technology Outlook 2025, DNV GL’s forecast for the future for customers and stakeholders.
“The ship of the future is rapidly becoming a floating computer, echoing developments in the automotive
industry where family cars today have more computing power than early space shuttles; self-driving vehicles of the future of course will have even more. Where sequencing of a human genome once took years, it is now accomplished in less than a week,” he said.
“The factory of the future will look nothing like those of today: it will be clean and largely empty of people. Additive manufacturing – or 3D printing – is dramatically changing where and how things are made. Spare parts for ships, for example, could be printed out at a port of convenience; conceivably from recycled material as circular economy models become pervasive.”
DNV GL’s 85-page report says: “The new challenges posed by sustainable use of resources and action against
Ship Management International Issue 62 July/August 2016
Industry
says DNV GL CEO‘ready for revolution’
Digital twin of an offshore support vessel (OSV)
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climate change are triggering intensive technology development efforts across many industries. To be effective, these innovation efforts need to become more collaborative and they also require well thought-through policy mechanisms and regulatory measures.
“This is especially the case for increasingly complex cyber physical systems that are governed by connected and collaborating computational elements controlling physical entities. Design, development, operation, and oversight of these systems will require an increasing degree of collaboration between manufacturers, technology users, and stakeholders – facilitated by common codes and standards.”
The number of active maritime VSAT installations is expected to exceed 40,000 by 2018 with most vessels broadband-capable by 2020, says the report. “Combining data streams from multiple sources will enable the industry to make informed decisions faster, leading to more efficient operations and responsive organisations.”
This, it says, will boost performance management – including fleet utilisation, routing, trim, fuel consumption, emission management – and asset integrity management, “building on remote condition monitoring as well as allowing for an increased level of automation.”
Improvements in maritime connectivity will bring many benefits to the transport sector, it says. Supply chains could be more efficiently organised around adaptable operations that leverage timely information on cargo, routes and the operation and condition of assets. “This will improve efficiency in many ways, including reducing lead times and fuel consumption by optimising
arrival times, and also allowing a better organisation of operations and workforces on land for handling cargo and carrying out possible maintenance and/or inspection activities.”
Connectivity will also give maritime authorities “a unique opportunity to monitor compliance with existing regulations to improve safety, achieve environmental targets and boost competition in the industry,” says the report.
Additive manufacturing – or 3D printing – is transforming product design, prototypes and manufacturing and has the potential to shorten manufacturing times significantly. “Although, oil and gas and maritime industries constitute only about 5% of the total additive manufacturing market, it is anticipated that its reach in these industries will increase rapidly,” it says adding that the US Navy has started testing the technology on board ships to evaluate the potential of producing spare parts and other equipment.
Using the technology in the production phase, for lightweight parts or complex parts that cannot be manufactured easily with conventional techniques, could lead to more energy-efficient ships, it says. “Producing spare parts locally in ports around the world could also reduce delivery times and costs,” says the report. l
Ship Management International Issue 62 July/August 2016
The ship of the future is rapidly becoming a floating computer, echoing developments
in the automotive industry where family cars today have more computing power
than early space shuttles
“”
Market Sector: Ship Efficiency
Pivotal to the industry’s drive for gains in efficiency and environmental compliance,
turbocharging technology has now reached the stage where it accounts for 75% of the power output from the latest marine diesel engines.
As an integral component of the engine design concept, shaping the characteristics of the ship’s power plant more than almost any other system, as regards economy, dynamics and emissions, turbocharging has been a major focus for investment in research and development over recent years. Those endeavours have been vindicated by the gains realised in engine performance, both at the ‘top end’ and across the load profile, and by the broadening in product and system choice available to engine manufacturers
and licensors, shipyards, ship owners and operators.
Advances in two-stage turbocharging herald a new era in environmentally-sound solutions and competitive lifecycle costs. The technology enables charge-air pressures to be increased substantially, raising engine mean effective pressure, and consequently cutting exhaust emissions despite higher engine specific power output. The requisite charge-air pressures are of an order that cannot be achieved through conventional, single-stage turbocharging.
Swiss-based ABB Turbocharging has introduced a second generation of its two-stage Power2 system, targeted at four-stroke, medium-speed engines. Power2 comprises two axial turbochargers, connected in tandem on the compressor side via an intermediate cooler. The
Market Sector: Technical ManagementSponsored by
Turbocharging
weight
c o n t i n u e s to punch above its
By David Tinsley
41Issue 62 July/August 2016 Ship Management International
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Power2 800-M solution accommodates pressure ratios up to 12, compared to eight in the first generation, and raises turbocharging efficiencies to 75%-plus. It leverages the full potential of extreme Miller cycles to minimise NOx(oxides of nitrogen) emissions and fuel consumption and maximise power density.
Wärtsilä has endorsed the development by nominating Power2 800-M for its latest and groundbreaking engine, the W31 medium-speed design. One of the exceptional aspects of the W31, which sets a new benchmark in four-stroke efficiency, is that the series provides a concurrent design platform for distinct diesel, gas-only and dual-fuel variants. The suitability of the ABB two-stage turbocharging system to fuel flexibility was a factor influencing its selection for the W31. The engine family covers unit powers from 4,200kW to 9,800kW, pitched at offshore, cruise, ferry, short-sea and special-purpose vessels.
MAN Diesel & Turbo has enhanced its four-stroke engine portfolio through its ECOCHARGE two-stage turbocharging solution. The ECOCHARGE principle optimally combines a low-pressure turbocharger, typically a proprietary TCA or TCR type, with a high-pressure stage, for which the recently-introduced TCX series was designed.
The advance achieved in turbocharging efficiency compared to single-stage turbochargers is related mainly to the intercooler. Intercooling increases the air density so that greater air mass and thus more oxygen enters the cylinder.
Positioned between the low-pressure and high-pressure stages, the intercooler significantly reduces the energy required to compress the intake air to high pressure. This has an instantaneous impact on the engine, advantageously increasing the air pressure over the cylinder during the scavenging process. As well as improving engine fuel efficiency, the increased efficacy of the turbocharging fosters a reduction in NOx through the Miller cycle
The Miller process, by which the inlet valve’s timing is shifted so that the effective compression stroke is shorter than the expansion stroke, and two-stage turbocharging form an optimum combination of technologies in addressing NOx, against the backcloth of the 2016-implemented MO Tier III limit. Engine and turbocharger manufacturers have addressed ways of controlling valves so as to permit variations in valve timing to suit load demand on the engine across the operating profile.
The ECOCHARGE arrangement has been applied to several MAN four-stroke designs. It offers twin benefits, in significantly boosting an engine’s power, or facilitating the use of a smaller engine with the same output as a larger unit that employs single-stage turbocharging.
At the recent CIMAC Congress in Helsinki, ABB presented its first dedicated turbocharger for auxiliary applications.
Targeted at four-stroke engines up to 2,000kW, operating on heavy fuel oil(HFO), the Marine Auxiliary Power(MXP) turbo was designed in conjunction with IHI Corporation of Japan. A notable feature is the product’s suitability for self-service maintenance at sea by the ship’s crew, supported by a digital, interactive solution from ABB.
A new production line has been opened this year at Napier’s Lincoln factory in the UK to manufacture the nascent NT1-14 model of turbocharger for large-bore, four-stroke engines, offering an exceptionally high pressure ratio of 6.0 to 1. Due for release in 2017, the NT1-14 will be suitable for applications rated from 5,000kW to 12,000kW, based on use of the new, proprietary LC-type compressor. In the meantime, the assembly line is being used to turn out a smaller model in the latest generation, the NT1-12.
The TCT turbocharger design programme implemented two years ago by MAN for Tier III-compatible two-stroke engines had initially identified a need for scavenging air pressures in the 4.2-5.0 range. However, in the interim, a shift has taken place in market requirements, to which the company has responded. According to MAN, the two-stroke sector has ceased to follow the four-stroke sector’s trend towards higher pressures, with air flow emerging as the more important factor.
Consequently, scavenging pressures were scaled down to 3.5-4.7, accompanied by higher specific volume air flows. The adjustments have made downsizing possible, to the extent that the TCT will be 30% lighter and smaller than the existing TCA model.
MAN is also developing an electrical turbo blower(ETB) for exhaust gas recirculation(EGR) in large two-stroke engines meeting Tier III criteria. Two frame sizes have been prepared for the engine range in the 500mm-bore size and above. Besides test running on benches in Denmark and Japan, field tests of the ETB18 prototype have been under way for more than a year on an 82,000dwt NYK Line-controlled bulk carrier. The first commercial deliveries are due at the beginning of 2017.
As a next step, a feasibility study has been put in hand for an ETB adapted as an auxiliary blower, especially for slow steaming at low engine loads.
Mitsubishi Heavy Industries’ series of hybrid turbochargers generate electrical power from the turbo’s rotational energy as well as supplying supercharged air to the two-stroke engine. Besides its role in feeding the ship’s electrical network, the solution has particular merits in slow-steaming applications.
Turbocharging continues to be one of the most active spheres for innovation in marine engineering, yielding tangible and often substantial economic, operational and environmental benefits. l
Ship Management International Issue 62 July/August 2016
Market Sector: Technical Management Sponsored by
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Owners and operators who have been forced to lay up their ships due to shrinking oil prices,
vessel oversupply and poor demand now face another industry crisis – a global shortage of spaces to park their out-of-service vessels.
One of the hardest hit regions is the Asia Pacific where companies report a “dramatic increase” in requests for lay-up particularly around the South China Sea and the Gulf of Thailand. “This is due to both the downturn in the offshore industry …… as well as the significant reduction in coal and iron exports out of China,” said Randi Blidensol, Product Manager of Inchcape Shipping Services (ISS).
The North Sea is another region facing potential space problems. More than 100 offshore supply vessels (OSVs), platform supply vessels (PSVs) and anchor handling tug supply (AHTS) craft are currently laid up, say figures from shipbrokers Westshore. “The majority are in long-term, or cold, lay-up from owners
who have opted to park up their vessels instead of renewing them into class because of the high costs involved. The offshore market is only supporting operational costs at the moment and a lot of these vessels are brand new and so scrapping is not an option,” said Inger-Louise Molvaer, offshore analyst with Westshore.
“Lay-up management has unfortunately become an ever-present part of the shipping industry. The scarcity of anchorages is a direct reflection of current demand. As an industry we expect and indeed are set up for vessels to be sailing, rather than in lay-up, so overall the capacity is not there,” said Elisa Bergshaven, Product Manager for Lay-Up Management at Wilhelmsen Ships Agency.
Many anchorages such as Subic Bay and Malalag Bay in the Philippines are at full capacity while restrictions on length of stay in the Middle East have forced owners into hot – or short-term – lay-up instead of the cold long-term stacking they need. The same applies to many South American countries where long-term
lay-ups are often at outer anchorages and prone to adverse weather conditions. Customs fees must also be paid for longer stays in some countries.
Northern Europe, notably Germany and the UK, has good locations for lay-ups though there are sometimes restrictions on capacity. These are usually at berth or inner anchorage. In the Mediterranean countries lay-ups are scarcer, apart from the Greek islands, while anchorages in the Middle East are more suitable for hot lay-ups due to restrictions on lengths of stay.
Finding a suitable lay-up space in a port is another area of concern. “Not every port allows for lay-up and some only allow for short periods of time – or offer hot lay-up only so a vessel must be ready to move at short notice. Owners also need to decide whether other nearby ports might provide a better service than the vessel’s current location,” said Mr Blidensol.
Ship Management International Issue 62 July/August 2016
Market Sector: Technical Management Sponsored by
Few winnersship spacesin the race for
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Weather conditions are another factor that needs to be considered. “A lay-up site should be well-sheltered from heavy wind, strong current and swell. If a location is in an exposed area, it is important to ensure that services such as a sufficient number of tugs are available and there is a well-established weather forecast for the area. Operators also need to know whether the seabed is free from obstruction and if the water depth offers sufficient clearance for the vessel,” said the ISS spokeperson.
Apart from deciding whether a vessel needs to go into hot or cold lay-up, owners have a third option – warm lay-up. Safe Haven Maritime, the aptly-named lay-up management agency with offices in Batam, Singapore and Jakarta, finds many of its customers want their vessels to re-enter the trade in a few months so they opt for a warm lay-up instead of a longer-term cold one. “In this case the vessel’s skeleton crew remains onboard and we provide them with all the typical port services they need,” said Safe Haven partner Alex Schulz. The warm lay-up
approach also takes the pressure off the need for long-term facilities particularly when a local anchorage – such as one on the Malaysian island of Labuan – is full and has no more spaces.
Apart from the pressures of the global stacking crisis, the decision to lay up a ship is a complex one and if vessels are not parked correctly, owners can face problems when they are eventually re-activated.
“It’s not just a question of hot or cold stacking. Owners should seek advice when evaluating lay-up locations, taking into account the vessel’s specifications, its requirements during the lay-up period and the steps required to reactivate the vessel which can take from a 24-hour to a three-month
reactivation,” said Socrates Zorba, Assistant General Manager for GAC Greece.
The owner will need to appoint an agent and obtain authorisation for a named individual to act as a person in charge for the vessel’s lay-up period. They will need to follow the local regulations and obtain documentation which varies from location to location. Good relationships with local port authorities are also key to ensure owners get the best support for their cleared in, laid-up and cleared out vessels.
There is also the cost – both financial and technical – of putting a vessel into lay-up. “It requires both coordination
and a certain level of flexibility and can
Issue 62 July/August 2016 Ship Management International
Market Sector: Technical ManagementSponsored by
also be extremely costly if not done correctly. There are many operational issues to consider such as maintaining specialised or scientific equipment, keeping software updated on critical onboard systems, maintaining safety equipment and fire systems and protecting areas of exposed metal,” said Mr Blidensol
“There is also the potential damage to the vessel that can be caused by humidity, so effective dehumidifying is critical for preservation if the vessel is to return to normal trading or a repair yard,” he said.
“By taking precautions at the start such as implementing preventive measures to protect the vessel from wear and tear, expensive delays can be avoided. If a ship is in a lengthy lay-up and ‘electrically dead’ it is vital to plan and manage software updates so these are accurately installed prior to recommissioning. The crew onboard can be kept to a minimum and in some cases the vessel may only need security staff during longer-term lay-up periods,” said the ISS specialist.
Another way for owners to avoid the global space crisis is to sell vessels that are surplus to requirements for conversion to offshore wind farms – as several hard-pressed companies in the dry bulk and offshore sectors have done recently. l
A group of laid up ships in Greece
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Regional Focus: Singapore
Ship Management International Issue 62 July/August 2016
Is your shipas safe as it should be
in today’sdangerous world?
The heart-rending attack on innocent visitors on the Promenade des Anglais in Nice in mid-July followed almost immediately by the failed military coup, and
the subsequent detention of 6,000 alleged coup planners and supporters, in Turkey demonstrated very clearly what a dangerous world we live in.
Religious extremism walks hand-in-hand with highly organised global terrorism and it would appear that the safety of certain nationalities visiting certain parts of the world cannot be guaranteed. On the contrary, it is not uncommon to be told that
airlines are cancelling flights into a particular country for safety reasons or hear government warnings on the television or radio against certain nationalities visiting certain countries or regions. The world is no longer the safe place we all expect and hope it to be.
But while at home we remain vigilant as we go about our daily business, what about life at sea? Today the 89,000 plus merchant vessels plying the world’s trade lanes are continually visiting politically-charged regions of the world with the expectation that they can safely go in and out without fear of attack.
Regional Focus: Singapore
49Issue 62 July/August 2016 Ship Management International
But as the latest International Shipowning and Shipmanagement Summit (ISSS) will debate on 3rd October at the Reed Smith offices in Singapore, is enough really being done to protect your ship, crew and cargo? Today’s shipping industry is not immune to the global terrorist threat – be it physical or across the internet. But how prepared are today’s owners and managers as their ships enter politically-sensitive port regions? Can they be sure that the actions they take are enough to guarantee the safety of their ship and cargo?
These are emotive questions especially when you consider that a vessel laden with thousands of cubic metres of LNG or millions of barrels of oil is nothing short of a floating killing machine in the wrong hands. But it is not just about identifying and knowing how to operate in the difficult areas of the world, it can also be as simple a question as really understanding who your crew members are.
Who are they, have they been screened correctly and could they be susceptible to radicalisation? Difficult issues to discuss
Regional Focus: Singapore
and tackle and why should they be tackled? After all, they are competent seafarers who have been trained to STCW standards and they have the safety of the vessel and their fellow crew members at heart. But as one prominent owner and manager told SMI, who would have suspected that the Germanwings pilot would fly his plane, complete with passengers and crew, into the side of a mountain?
The summit, which will be held in Reed Smith’s Collyer Quay conference facilities, on Monday 3rd October, will be attended by owners and managers as well as representatives from the local financial services and marine services sectors. Delegates will hear hard-hitting presentations on where the global hotspots and danger zones are and what actions owners and managers should take to protect the safety of their ships, crew and cargo. Esben Poulsson, Chairman, International Chamber of Shipping (ICS)
and President of the Singapore Shipping Association (SSA), will give an owner’s perspective while it will be left to major players in the global insurance and shipmanagement sectors to give their views and comments.
Session Two will look at how owners and managers should react when they are faced with a casualty. As one owner said to SMI: “How do you deal with an emergency where there is so much loss of life? How do you deal with it as a company? You have to talk to the families but you can’t ring them all at the same time because by the time you speak to three families one of them has rung family number 19.”
The threat posed by cyber security will also be debated before a panel of industry big hitters discusses the implications for the future.
But delegate interest will be fully charged when Session Three poses the question: The Human Capital: do you really know your crew? It will be down to crew management as well as crew screening experts to raise pertinent issues about how well owners and managers really know their crew and whether the issue of radicalisation could really be a problem.
The final session of the day will study the relationship between the office and the ship and discuss whether there is a disconnect between the senior management and the crew? After all, shipowning and shipmanagement is as much about people as it is about processes. l
INTERNATIONAL SHIPOWNING& SHIPMANAGEMENT SUMMIT
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Market Sector: Safety
As newbuilds continue to meet and exceed expectations both in size and technical complexity,
satellite technology streamlines ship-to-shore connectivity and the idea of the driverless vessel evolves from theory into practice, the need for rigour and safety at sea has never been more crucial.
The fourth generation of new technology, as it is often known, has been matched by ever-stricter safety regimes by the IMO and bodies like SOLAS (International Convention for the Safety of Life at Sea) backed up by tougher compliance by the classification societies and flag states. Which has put a high premium on the performance of safety technology.
One of the fastest growing, highest risk and thus safety-conscious sectors is the Arctic with its vast resources of oil and
gas and valuable mineral deposits. And just as a growing fleet of icebreakers is being built to cope with the Arctic’s severe winters and harsh ice conditions, new ranges of extra-robust safety equipment are being developed to help owners, operators, managers and crews cope with the extreme weather.
Benny Carlsen, Senior Vice President for Global Sales at Denmark-based Viking Life-Saving Equipment, said: “Increasing traffic in polar regions means that more operators require new types of safety equipment that are able to handle the extreme conditions of these regions.” In response Viking has deliberately designed some of its polar equipment to exceed the regulatory requirements.
One of these is the Polar Code. This new regulation comes into force on 1st January 2017 and makes it compulsory
for lifeboats to be partly or totally enclosed and rules that all crew members travelling in icy regions should be given adequate thermal clothing. Under the Code, all personal survival equipment (PSE) must be thermally insulated while all clothing must protect its wearers against frostbite.
“Due to increasing demand, everything on our polar liferafts from the release mechanisms to the craft themselves are able to operate down to temperatures of -50°,” said Mr Carlsen. Viking’s liferafts are also packed in patented containers with heating blankets to ensure they will inflate in the lowest temperatures. The company’s life-saving
Ship Management International Issue 62 July/August 2016
Safety technology defies the rigours of the ice age
1/ Norsafe’s GES 52 freefall lifeboat during trials at Norsafe Academy, Arsnes in Norway.
1/
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Market Sector: Safety
appliances go a step further than the regulations too – including its polar immersion and work suits – to help protect against hypothermia.
Another sector that needs extra-high standards of safety and compliance is lifeboats and lifeboat release mechanisms. In response to ongoing industry concerns about the efficiency of release hooks, the Norwegian manufacturer Norsafe has carried out a series of trials and tests and produced the newly updated TOR MKII lifeboat release gear.
“The new design overcomes premature release issues, and the highly visible yellow padlock, which can be seen on both sides of the hook, clearly indicates that the hook is set and the release cables correctly loaded. Even when the cables are disconnected, the hook is able to stay closed in the most extreme load conditions,” said Oystein Schultz Sandberg, Norsafe’s Vice President for Global Sales.
Another recent Norsafe innovation is a compact, hi-spec liferaft, the GES21, which has been designed to meet demand from companies such as LNG, chemical and dry bulk carrier owners that use freefall lifeboats. Another key feature of the GES21, which is totally enclosed and takes up to 26 people, is that it is often launched from a hydraulic ramp to ensure it enters the water at a safe distance from its mothership.
Another upcoming major safety regulation is the re-certification of the STCW Convention and Code (Standards of Training, Certification and Watchkeeping for Seafarers) under new SOLAS rules for commercial vessels. The revamped Code, which like the Polar Code will be introduced on 1st January 2017, has spawned several new training courses offered by safety providers for crews in the shipping and offshore sectors.
Norsafe recently launched two STCW and NOROG (Norwegian Oil and Gas Association) courses. When they have successfully completed their training, seafarers will be able to operate and command lifeboats and rescue boats
during emergencies at sea and offshore. Michael Rossland, Vice President of the Norsafe Academy, said: “With Port State Control inspections consistently finding a 10% deficiency rate in lifesaving equipment maintenance and training, it is important that ship owners and shipmanagement companies focus on this area as it could quite literally be a matter of life or death.”
Meanwhile Viking Saatsea, which is part of the Viking Life-Saving Equipment group, has received flag approval for an onboard, online STCW training solution. In partnership with Falck Safety Services, Viking Saatsea runs seven courses – from sea survival to advanced firefighting techniques – combined with shore-based practical exercises, over a five-year certification period. “The courses are for owners of all types of vessel and enable crew members to take their examinations online, reduce their training time on shore from a week to a few days and also enable crews to train at their own pace while at sea. It also helps them to operate safety equipment better and keep it up-to-date,” said Mr Carlsen.
The increased safety awareness of owners, operators and ship managers has fostered a number of comprehensive packages of safety products and services – instead of one-off specialist items – for the shipping industry. The Norwegian Palfinger Group’s recent purchase of
Harding Safety has enabled the company to combine its hydraulic lifting, loading and hauling safety solutions with Harding’s range of life-saving equipment of lifeboats, davits, hooks, winches, cruise tenders and rescue boats.
“It was a natural step to widen our range as a big supplier of deck equipment. Having a large product portfolio is a huge advantage as we will be able to offer services on several types of equipment during the same service assignments for our customers,” said Bjorn Sturle Hillstad, Harding’s Global Sales and Marketing Director.
Meanwhile the upturn in the cruise industry has made it a key source of business for safety suppliers. Harding has just signed a contract to deliver lifeboats, tender vessels and davits to the French cruise shipbuilder STX. “The cruise industry is a really booming sector at the moment and this new contract gives us a renewed and important foothold in the industry at a time when the offshore market is suffering due to low oil prices,” said Mr Hillstad. The Harding lifeboats are a novel double-decker design, with two entrances per deck and a passenger capacity of 440. Another “first” is Harding’s totally enclosed davits that are used to lower and retrieve the lifeboats and tenders and introduced for “safety and aesthetic reasons”.
Robust lifejackets can be another potential lifesaver for both cruise passengers and commercial ship crews. However many crews have found their current jackets too uncomfortable to wear for lengthy periods of time. In response, the survival and safety specialist Survitec Group has launched the Crewfit XD lifejacket. The jacket is made of Fusion 3D technology, moulds to the shape of the wearer’s body and sits off the neck, giving the user total freedom of movement. The company is introducing the jacket to its global network of 600 accredited service stations including all the major global ports, 50 wholly-owned service stations and its network of channel partners including ferry and cruise line, cargo ship, tanker and tug operators. l
Ship Management International Issue 62 July/August 2016
Increasing traffic in polar regions means that more operators require new types of
safety equipment that are able to handle the extreme conditions of
these regionsBenny Carlsen, Senior Vice
President, Viking Life-Saving Equipment
“”
It is a fact that violent crime has significantly reduced over the last few years. Why is this? Criminals have not
changed; they still want to get their hands on your money. The answer is that it is easier stealing money in cyber space than robbing a bank in the real world.
Shipping will always be an attractive target for fraudsters because of its international focus. ITIC has seen a continuing increase in this trend of cyber fraud, particularly in cases involving
fraudulent emails. The average cost of these frauds is $120,000.
The classic scenario involves the payment of invoices and the subsequent transfer of funds from one account to another. The background communication and the invoice are usually by email. Fraudsters - either through insider knowledge or by hacking into a ship manager’s network or that of its contractor - will learn that a transfer of funds is to be made. They will set up a new email, very
similar to the one the ship manager was previously responding to. For example, the suffix of the email address will change from .com to .uk or .eu
The difference is subtle and can easily be missed when many emails are being received daily. The fraudster will advise the ship manager that the account where payment was to be made is no longer in operation and a new account must be used. The excuse given is that the bank account has changed or is under audit.
Market Sector: Safety
Virtual robbery Robert Hodge, Senior Account Executive with International Transport Intermediaries Club (ITIC), explains why ship managers should beware the potential cost of cyber fraud
In truth, businesses very rarely change an account, nor do they close an account when under audit.
Ship managers deal with large sums of owners’ money to service and keep a vessel running. In one case, a ship manager instructed a company to carry out the annual service of its lifeboats. The correct invoice was sent by email to the ship manager, but was intercepted en route (in cyber space) and a different email was received. In this instance the domain name of the service company contained the word ‘lifeboat’. The fraudsters simply changed the lower case ‘l’ for an upper case ‘i’ (I) - almost impossible to distinguish.
ITIC’s advice in such instances is not to make a payment to an email address advising of a change of bank details before taking separate steps to verify those instructions. One of the best available resources is the telephone – use it!
A further scenario involves the theft of ‘cash to master’ funds. In one case a ship manager received a message asking if money could be sent directly to the agent’s foreign exchange broker who could secure banknotes which were in short supply in that part of the world. The manager’s member of staff queried the instruction, replying to the email, ‘As we don’t know broker, would it be possible to remit CTM to your bank account as usual?’ Of course the manager received confirmation of the new arrangement from the same email address. Again, it is essential to verify the instructions - don’t use the reply button as it will be the fraudster you are communicating with!
ITIC’s professional indemnity cover will respond to situations where a ship manager has been negligent. For instance, in the above claims examples, the ship manager had seen the message and may have been negligent by failing to spot the fraudulent address.
The situation is different, however, if the message was created by fraudsters accessing a ship manager’s own computer system and sending a message to a third party. The difficulty in this scenario is that the ship manager has not seen the message and is unaware that a fraud is happening. Any loss or harm caused by this fraud does not arise from the ship manager’s negligence.
ITIC has therefore developed a new additional cover that will insure ship managers either for acts by people who gain access to their computer network without their permission or by those who were granted access for a legitimate purpose but misused that access to cause loss or harm to a third party.
ITIC recommends that, if there is anything unusual about payment instructions, ship managers should call their counterparty to discuss and verify. l
Market Sector: Safety
60 Ship Management International Issue 62 July/August 2016
62
Business Viewpoint: P&I & Law
The issues on appealThe key questions for the Court
of Appeal to determine were: does the doctrine of anticipatory breach apply to both executory and executed contracts?; can insolvency be the basis for invoking the doctrine of anticipatory breach?
The Singapore Court of Appeal unequivocally held that the doctrine of anticipatory breach can be invoked regardless of whether a contract is executory or executed. The Court considered what it described as ‘the traditional view’ on this issue, namely that there is an implied promise (made, in this case, by the party receiving the bunkers) not to prevent the innocent party (the supplier) from performing their part of the contract. The Court found this implied promise concept to be artificial and, in the context of the sale of bunkers to ships, the implied promise was deemed redundant.
The alternative approach favoured by the Court was, in essence, that in
circumstances where the defendant has evinced a clear intention that it will not perform its obligations then, as a matter of principle and logic, that clear intent may be considered as the basis for holding that an actual breach has, in substance, taken place even though the time for performance (i.e. payment) has not yet arrived.
The Court concluded that it would be unfair to allow the doctrine only to apply to executory contracts (and not executed contracts) because that would result in leaving an innocent party who has already performed its contractual obligations in a worse position than one who has not yet performed but is willing to do so.
The Singapore Court of Appeal recognised and acknowledged that, in general, insolvency, in and of itself, cannot amount to anticipatory breach. However, the Court also concluded that if it was the case that that liquidator would potentially breach their duties, in terms of treating all creditors evenhandedly, by ratifying
a bunker purchase then an insolvency could constitute an anticipatory breach.
The judgment will no doubt be welcomed by sellers of goods and suppliers of services that operate on deferred payment terms, particularly in today’s volatile and unstable markets because it provides a basis for taking early steps to protect their position, especially in insolvency cases. That said, if the approach to be taken is to conduct a detailed analysis of the factual matrix behind an insolvency to determine whether that insolvency does or does not give rise to an anticipatory breach, then any arrests to enforce such a suspected breach will carry some degree of inherent risk, not least because the arresting party will almost certainly not be in possession of all of the facts.
In these circumstances, the Retention of Title clause may also require consideration following the recent English Supreme Court decision in The Res Cogitans [2016] UKSC 23. l
The facts of the case in briefTransocean Oil (Transocean), a Singapore company, supplied bunkers
to POS Maritime VX SA (the Ship Owner), the registered owners of the vessel STX Mumbai, on the instructions of STX Corporation, as agent for the Respondent. The payment terms stated that the Respondent was required to pay for the bunkers within 30 days of the letter of supply, which would have been 16th June 2013.
On 13th June 2013, Transocean demanded payment for the bunkers from the Ship Owner. The Ship Owner did not pay and the following day the Appellant arrested the STX Mumbai.
History of the proceedingsThe Ship Owner applied to strike out the
Transocean’s action, set aside the arrest and claimed damages for wrongful arrest. The application to strike out Transocean’s action was granted by the Assistant Registrar. That decision was subsequently upheld by the High Court.
Transocean then appealed to the Court of Appeal.
A significant shipping case, The STX Mumbai [2015] SGCA 35, has considered two novel points of law related to the doctrine of anticipatory breach of contract, a concept which allows a party to treat a contract as breached and discharged in circumstances where the other party demonstrates by its words or actions that it will not perform its contractual obligations.
Ship Management International Issue 62 July/August 2016
STX Mumbai judgment establishes legal weapon for suppliers
By Claire Morgan, Associate, and Laura
Hamilton, Senior Associate, Norton
Rose Fulbright Singapore
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Maritime Medical: Diabetes
Diabetes has hit epidemic levels across the globe and it is now one of the shipping industry’s
most concerning medical issues.However, with effective early
management, the condition can be controlled and allow seafarers to remain gainfully employed.
Dr Marcus Brauer, a doctor at one of UK P&I Club’s PEME (Pre-Employment Medical Examination) approved clinics in South Africa said proper understanding of the condition was vital.
“Diabetes affects 382 million people worldwide, and that number is expected to grow to 592 million by 2035. The early detection and effective early management of diabetes is one of the most satisfying parts of our work as PEME doctors, as we are able to not only preserve and maintain the health of the seafarer, but we are also able to assist them in understanding and managing their condition,” he said.
“Diabetes is a progressive, non-communicable disease, which is caused primarily by a sedentary lifestyle and an increasing consumption of sugars and starches in our diets, which lead to obesity and an increasing difficulty
in controlling blood sugar levels. It is one of the most significant underlying risk factors for developing premature cardiovascular complications, followed by smoking and hypertension.”
Poor diet and lack of exercise are creating a ticking time bomb in many crew members and being overweight is the biggest factor when it comes to developing Type 2 diabetes – around 80% of people diagnosed with this type are heavier than is healthy for their height.
He added: “The seafaring population in general is a physically active one, which does offer some protection to a certain extent. A substantial proportion of seafarers are overweight though, and this puts them at risk, combined with a diet that is high in carbohydrates and sugars. A lower education level appears to increase the frequency and risk of diabetes.”
Diabetes is a condition in which glucose is trapped in the bloodstream and cannot get to the cells used by the body for energy. Insulin normally helps transfer the glucose to these cells but if the pancreas, where insulin is produced, is not functioning as it should, then lower or no levels of insulin are produced.
In Type 1, the least common of the conditions, the pancreas has no function and this is mainly found in children, though young adults into their early 20s can also develop it. In Type 2, the pancreas is still working, so some insulin is being produced but either there is not enough or what is being produced cannot do its work properly.
Along with obesity, ethnicity also increases a seafarer’s risk – the South Asian population, Black Caribbean and Chinese are at much higher risk of developing Type 2 diabetes due to genetics and there are also other risk
Ship Management International Issue 62 July/August 2016
IN WORKINGWITH
EARLYMANAGEMENT
keydiabetes
Maritime Medical: Diabetes
65Issue 62 July/August 2016 Ship Management International
Diabetes affects 382 million people worldwide, and that number is expected
to grow to 592 million by 2035Dr Marcus Brauer
“ ”
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factors such as family history and age, as the risk increases from age 40.
Dr Brauer said the most common age group was in the over 40s but his clinic was occasionally seeing Type 2 diabetes in slightly younger applicants especially if they had been living unhealthy lifestyles since their teenage years.
“Statistically, childhood obesity and diabetes is also increasing, so this is not surprising,” said Dr Brauer.
Dr Brauer said diabetes was often detected coincidentally at the time of the applicant’s PEME examination by the presence of glycosuria or an elevated blood serum level of glucose.
“These results then prompt further tests such as HBA1C to confirm the presence and severity of the diabetes,” said Dr Brauer.
“The PEME examination is the perfect time to screen for the risk factors for diabetes as well as the presence of early signs of diabetes. This allows for early recognition of seafarers at risk, and then careful monitoring and treatment.”
He said treatment involves seafarers taking the following steps:
Minimising the intake of sugar in sweetened foods (typically all packaged and processed foods, fruit juices, fizzy drinks and sauces).
Minimising the intake of starches – the main culprits being bread, potatoes, pasta and rice.
Exercising at least three times a week for 30 minutes, aiming to achieve an exercise heart rate of 75% of maximum.
Monitoring blood sugar levels with tests such as urine glucose tests, blood sugar tests and a diabetes control measuring test, an HBA1C, which provides a measure of diabetes control over the last six weeks. The seafarer must also keep a log-book of their diabetes control to enable them to understand their health condition, and to take responsibility for its management.
Regularly using the medication prescribed by their doctor and notifying their doctor of any change in their diabetes control, so that appropriate adjustments to their treatment regime can be made.
Dr Brauer said it was vital that seafarers continued with medication to enable them to work.
“Seafarers might default their regular treatment and then may start taking their medicine again shortly before a medical, when they know that this will
be assessed. They are usually aware that uncontrolled diabetics will not be passed,” he said.
“For this reason, I prefer gauging diabetic control with more long-term tests of diabetes control, such as an HBA1C blood test.”
Dr Brauer said that if sufferers did not keep on top of the condition, abnormal glucose levels could lead to dehydration and fatigue and even, more concerningly, coma and death, especially with unnoticed and untreated critically low glucose levels. Other complications can include visual impairment leading to blindness, stroke and heart attack and delayed wound healing, especially of foot infections that can lead to amputations.
“The treatment is aimed at correcting lifestyle measures and allows seafarers to remain gainfully employed in the careers to which they have often devoted their lives,” concluded Dr Brauer. l
Ship Management International Issue 62 July/August 2016
Maritime Medical: Diabetes
Diabetes is a progressive, non-communicable disease, which is caused primarily by a sedentary lifestyle and an increasing consumption of sugars and starches in our diets, which lead to obesity and an increasing difficulty in controlling blood
sugar levelsDr Marcus Brauer
“”
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Maritime Medical: Risk Assessments & Training
Health and safety in the workplace still remains an issue despite many years of warnings, ever-increasing amounts of legislation and the younger generation’s
increased awareness of health and safety issues before joining the workforce.
Complacency can easily creep in to a well-run organisation or in the management of a vessel. Having a documented risk assessment is still seen by some as protection against accidents and injuries, even if the document is out of date and training took place some time ago. However, much can change in a short period of time.
“Health and safety” issues can be broken down into various stages, which need to be considered separately: - • Risks need to be identified and then assessed to see if the
activity can be avoided, or steps can be taken to remove or minimise the risk.
• The risk assessment and any steps to be taken then need to be documented
• Training needs to be provided in the form of employees and crew reading the document, attending meetings or “tool box” talks to ensure the risks and preventative measures have been properly understood. In many cases involving serious injuries, and fatalities,
these initial steps have not been taken and obvious risks have been ignored.
As solicitors, we commonly find that accidents occur when a risk assessment is out of date, or there has been a failure to carry out an audit and check for compliance by employees or crew. There is also the complacency that creeps in when a task
is carried out so often that there is an assumption that everyone must know that this task takes place, and what the risks are.
In 2015, the MAIB reported on an accident that occurred on the NORJAN, a general cargo ship. The Chief Officer fell onto the main deck. Realising he was about to fall, he managed to twist and orient himself so as to land on his feet. He suffered multiple fractures to both ankles and could not work for 12 months.
A risk assessment had been carried out for working in the area. Cargo was stored on top of hatch covers, 2.4 metres above the main deck. Temporary barriers were supposed to be placed around the hatch when anyone was working in that area to prevent falls from height. However, no barriers or fencing were carried onboard and no fall prevention equipment was available for the crew to use.
There were no permanent railings at the edge to prevent falls and the crew were observed continually walking close to the unfenced edging. The perception appeared to be that individual vigilance would prevent tripping and falling and that everyone was aware of the risk. The Chief Officer had only been onboard for six days and was clearly not used to working in the area in which the accident occurred.
The generic risk assessment for falls had been carried out. Blank forms were provided to allow the crew to complete specific risk assessments for tasks but no specific risk assessment had been carried out for working on the hatch covers. Risks of falls, when climbing masts or working over the ship’s side, are commonly recognised. The risk of falling off the hatch covers to the main deck was not discussed on the vessel nor identified as a hazard.
Ship Management International Issue 62 July/August 2016
By Associate Sarah Pether and Partner Andrew Oliver, members of the shipping and transport team at Andrew Jackson Solicitors
“Complacency in risk assessments and training”
Maritime Medical: Risk Assessments & Training
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Risk of prosecution for crew, managers and directors
The UK is seeing an increasing appetite for the prosecution of health and safety offences particularly as a result of the introduction of new sentencing guidelines for such offences. The penalties being imposed on both corporate entities and individuals are increasing substantially.
The new guidelines represent a significant change of emphasis in the approach to sentencing health and safety cases. In the past the courts based their approach upon the actual consequences of the offence. However, the new guidelines emphasise the risk of harm being created. Indeed the guidelines state:
“Health and safety offences are concerned with failures to manage risks to health and safety and do not require proof that the offence caused any actual harm. The offence is in creating a risk of harm.”
Therefore in circumstances where an accident occurs but nobody is seriously injured or affected, but there is high potential risk of harm, the penalty will be based on that high risk as opposed to the fact that no harm was actually done.
Secondly, once harm has been assessed, sentencing will also be based on a corporate body’s turnover, not its profit. The table below shows the classification of company size and the minimum and maximum potential penalties suggested by the guidelines. The minimum figure is based on a low risk of harm increasing to the upper figure as the potential risk increases.
Issue 62 July/August 2016 Ship Management International
Large Company Turnover £50m + Min £60k Max £10m
Medium Company Turnover £10m - £50m Min £10k Max £4m
Small Company Turnover £2m - £10m Min £5k Max £1.6m
Micro Company Turnover less than £2m Min £2k Max £450k
Personal Injury Claims
It is impossible to escape the press coverage on personal injury claims and the attempts to cut down on fraudulent and trivial claims. Genuine, and avoidable, accidents are rarely reported as they are usually settled by the insurers or P&I club.
It would be very difficult to offer any defence if a claim was made following an accident like that on the Norjan. The Chief Officer was in a managerial position but had only been onboard for six days; the company managing the vessel should have made sure risk assessments had been carried out, documented and then reviewed/audited. In this case, there was no risk assessment document. Where risk assessment documents exist, any new officers or crew members should receive a proper induction and be made aware of the risk assessment documents and availability of safety equipment, and a record should be kept that the induction took place.
When risk assessments are updated, for example due to a regular review or the purchase of new equipment, everyone should be given training on the new risk assessments and methods of working.
In summary, in order to defend personal injury claims, the owner or operator has to provide evidence of an appropriate risk assessment, which sets out the risks identified; whether the activity could be avoided, or the appropriate steps to be taken to eliminate or reduce the risk; and show that adequate training based on that risk assessment was actually given. Even with such documentation, the defence may fail if the risk assessment is out of date or if compliance was not monitored. l
These figures are eye-watering and are meant to act as both a punishment and a deterrent. Individuals are similarly hard hit, with imprisonment a real risk for individuals.
The courts have already started to utilise the sentencing guidelines in marine cases. Strictly speaking, whilst the guidelines do not apply to offences under the Merchant Shipping Act, the MCA has successfully argued, and the courts have accepted, that they should apply.
In April of this year Mold Crown Court applied the guidelines when sentencing Master Alexander Baird for a failure to manage his vessel in a safe manner contrary to Section 100 of the Merchant Shipping Act 1995. Skipper Baird was the master of the St Amant. Drills were not completed, crew were not certificated, the deck was cluttered and safety equipment was not operational. The court readily applied the new sentencing guidelines and in doing so sentenced Mr Baird to nine months’ imprisonment.
The message from this new approach to sentencing is clear. Not only is the application of health and safety legislation important but the management and auditing of it is equally - if not more - important, given that future penalties will be based on risk of harm as opposed to actual harm done. Put bluntly, a safety management system without management or auditing is ineffective and indeed may be worse than a situation where there is no safety management system in place at all.
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The five-yearly BIMCO-ICS Manpower Report, which provides us with an analysis of the global supply and demand for seafarers in 2015, will, like its predecessors,
give industry policy makers plenty of food for thought. And while the headlines underline the uncertainties of the future, with the industry having to contemplate a possible shortage of 147,500 officers by 2025, it is emphasised that it is well within the powers of shipping management to produce a more balanced future.
Even this single stark figure, in a substantial volume of statistics and analysis, will be read in several different ways. Some, let us call them the “responsible” elements of the industry, will respond in a positive way, recognising if it takes10 years to fully qualify a deck officer, let alone obtain the experience necessary for higher rank, time is already running short and action on recruiting, training and retention, needed immediately.
Others, whose idea of a long-term manpower policy is to find a second engineer with a chemical endorsement and medium speed experience to join a ship two weeks hence, will regard the report with indifference, as they always do. And sadly, poachers who merely steal those whom others have lavished time and effort in developing, represent a substantial proportion.
But it is just about possible to identify a third group of ship operators, who might well read this excellent report and even be impressed with its content, but will make the assumption “something will turn up” to prevent the projected shortages. These are people who probably know and understand their industrial history and will recall that a shipping industry which has swung, like a pendulum from surplus to shortage, for several hundred years, may well be once again overtaken by “events”.
They will probably not have to dredge too far back into their memory to remember the first time this report was undertaken in 1990, (the first time a global analysis of seafarer supply and demand was attempted) the expected shortages were swiftly overtaken by the collapse of communism and the Soviet Union, providing a plethora of well-trained and experienced Eastern
European officers. Who knows, this group could be expecting that history may well be on their side again. They will probably also remember that with the whole world to draw upon for seafarers, ships tend not to stay in port for the want of a crew.
But we have to hope all these various elements of the industry take this report aboard, not least because of the numerous insights it provides. Dearsley Maritime Consulting, which produced the analysis for the two sponsoring organisations, consulted widely throughout the industry and provides a wealth of insights into the minds of participants. Seafarers, professionals afloat and ashore, industry leaders, marine educational establishments – all have been canvassed for their views.
Seafarers, who are on the receiving end of policies dictated by others, are too seldom asked for their views. Many have positive things to say about their seafaring lives. “I am very happy with my career choice,” said a second officer. They value happy ships and good training, being paid on time and the opportunities for promotion. Food, family benefits, decent shore side people and internet access are also appreciated.
But they also point out areas which ought to be improved upon if employers wish to retain them. There is concern about the competency of fellow crew members, and serious questions asked about the STCW as a measure of genuine competence in some parts of the world. There are several adverse comments about standards and the need to take training seriously.
The need for a “good relationship” between ship and shore staff is emphasised more than once in these comments and this surely is something that ought to resonate with ship operators, hoping to encourage long term service. And of course there are real complaints about the weight of bureaucracy.
One can only hope these comments will be taken seriously by those responsible for manning their ships. Similarly, the remarks from the marine education and training establishments offer worthwhile insights in an industry where experience in rank increasingly matters. Employers – ignore this report at your peril! l
From the horse’s mouth
Michael Grey, MBE, is an internationally respected
maritime commentator
AlternativeViewpoint
Ship Management International Issue 62 July/August 2016
A revolutionary way of hull cleaning is set to move up a gear with plans to, one day, launch a fully
automated system which could be fitted to newbuild vessels to offer periodic purging.
HullWiper, the brainchild of inventor and Technical Director Robert Anderson, was launched by GAC three years ago to form a new business, GAC EnvironHull, for the Dubai-headquartered GAC which normally deals in logistics and agency services, and recently won the Clean Shipping title at the Seatrade Awards.
It is being rolled out to even more locations with plans for a fully automated system also being developed to be introduced at a later date.
According to Managing Director Simon Doran, the machine is “a little bit like an underwater car connected to the surface by an umbilical.”
Once launched into the water, it is driven by an operator to the side of the ship where it is parked, then the ROV
(remotely operated underwater vehicle) is controlled by the operator moving it up and down the hull.
It is claimed to be an environmentally-friendly way of cleaning as it does not use traditional brushes and abrasives and is also said to be much safer as it does not involve using divers.
“For us in Jebel Ali Port we have no restrictions at all – we can clean vessels 24 hours a day because we are not using divers. Divers aren’t allowed to dive at night so as we find with the vessels coming into Jebel Ali, they may come in at stupid o’clock in the morning and if they had to wait for divers they would lose maybe four, five or even six hours.
“The fact that hull cleaning is prohibited alongside because it is not environmentally friendly is another plus for us. We can do it alongside, we can do it during cargo operations and we can do it 24/7.”
HullWiper uses seawater under high pressure to clean instead of brushes
or abrasives, minimising damage to the antifouling coating. Because of the direction of the nozzles, if the marine fouling is really bad it can be cut away or, if not so severe, brushed away.
The operator will dial in the depth required, say 1m, and the machine will stay at 1m because there are thrusters to keep it at the right depth and because the turntables are rotating, they suck the machine onto the hill and make it go forwards. Once at the end of one side, the operator will push an auto turn button and it will turn round and come back at the next depth, doing this at 1m intervals before finishing one side and moving to the other side of the vessel.
The marine fouling is collected and stays within the unit and when the unit reaches 75% full, the machine is brought back to the surface, the filter taken out and changed and the marine fouling is kept onboard in quarantine bins. At the end of the job, the vessel is told of the weight of the marine fouling they have taken off and the type of the marine fouling involved.
“Ultimately, one day the IMO (International Maritime Organization) is going to enforce the bio-fouling management plans of the vessels so they are going to need to know this information which is why we have started doing it now,” said Mr Doran.
Mr Doran, who was running a commercial diving company in the Middle
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Ship Management International Issue 62 July/August 2016
A hull new greener way of cleaning
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East, was brought in to work for the new division GAC EnvironHull due to his practical and operational experience.
He said of the current HullWiper, now a third generation model since its launch in 2013: “It is not going to take over the world in 10 minutes, 10 weeks or even 10 months. The difficulty we have is teaching old dogs new tricks because a lot of people are stuck in their ways.
“Initially, when the price of oil was sky high, people would look at anything to save costs but then the price of oil dropped and where all these companies were developing their own efficiency and performance departments they kind of went out of the window – it was a luxury that many companies couldn’t afford, with a few exceptions such as Maersk.”
However, the HullWiper system promises not only a safer and more convenient way of cleaning but cost and fuel savings too.
“We are popular with the container market which doesn’t want to take vessels off charter to be cleaned, so in Jebel Ali we can do a vessel during cargo operations,” said Mr Doran.
Commenting on fuel savings, he said: “If you clean a vessel, whether our way or using a traditional method, you are going to get a minimum of between 5 and 10% savings straight away. Depending on the level of marine fouling on the ship will determine just how big the saving is. But it goes beyond fuel savings because you get efficiency savings with just the way the engine is running.”
He added: “The only issue you would face at the moment is that four years ago we could clean a hull and it would pay for itself in maybe 20 hours because of the price of fuel.
“The buy-back period now might be 10 days but it doesn’t really matter what the price of fuel is ever – you are going to save something. It’s only the buy-back period that changes.”
Currently GAC EnvironHull has HullWipers in Singapore, the UAE, Valencia, Gothenburg and, most recently, Rotterdam, but there are plans to install two more
units in two further locations – in either Southampton, Algeciras or Durban. A master geographical roll out is also planned for GAC EnvironHull with target locations including Panama, US, Brazil and Australia.
“We target places that are environmentally friendly because that gives us an edge. Like in Rotterdam, where hull cleaning has been banned for nearly 22 years. Now that we are there it should be a huge benefit to owners and principals that never had that service available previously.”
Christer Sjödoff, GAC Group Vice President, Commercial, said: “As the gateway to the European market and a port that pioneers new thinking around the environment, Rotterdam is the perfect location for HullWiper.”
To mark the launch of HullWiper in Rotterdam in June, the company hosted a panel discussion in conjunction with the Port of Rotterdam on ‘Smart Ship Technologies and Measures for Greener Ports’ which attracted representatives from the Port of Rotterdam, shipping industry figures and environmentalists who discussed the challenge of pollution in port waters, gave an update on the regulatory landscape and showcased solutions to reduce hull degradation and improve energy efficiency.
“This further underlines GAC EnvironHull’s commitment to the service in the Netherlands, and sends the message that the GAC Group is pushing the boundaries of innovation and environmental compliance,” said Mr Sjödoff
“We are always looking at ways to improve efficiency and quality and to adapt the machine to do other things,” said Mr Doran.
“We are in the process of developing a unit which is completely automated and it
could be fitted to a newbuild vessel in dry dock and used automatically to clean the vessel periodically as and when the vessel had time. It would be amazing.”
He said the company was also developing software to capture data to link all the machines “so, if we do a clean on a Maersk vessel alongside in Jebel Ali and then six months later it’s alongside in Gothenburg, we can push a button on the
Gothenburg machine and it will clean it the same as it was cleaned in Jebel Ali.
“We are pretty close to that already,” said Mr Doran.
HullWiper can be used on any large vessel, but Mr Doran said it was more suited to larger vehicles with big flat surfaces and it had already proved very popular with LNG owners because they had tight margins and need to be clean and efficient all the time.
Mr Doran said the only perceived downside was that the machines needed to be treated quite carefully due to the high-tech electronics in the units.
“It is also not the cheapest option but we are competitive,” he said.
“We are targeting the main hubs and even where we are now we should be able to capture 73% of the world shipping market.” l
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Issue 62 July/August 2016 Ship Management International
1/ Launch of the HullWiper Remotely Operated Vehicle (ROV) in the Port of Rotterdam.
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AdHoc
She has been a lifeline for the inhabitants of the South Atlantic island of St Helena for 26 years but in June the Royal Mail Ship St Helena made her final call to the UK.
A new airport has now been built, thus the British-flagged vessel will soon no longer be needed, ending a quarter of a century of service. She was planned to finish service in September this year, however, she will now carry on until July 2017 offering a return schedule to Cape Town, due to technical problems at the airport.
The RMS St Helena had offered a schedule from the UK, a journey which took 14 days and took in Tenerife and Ascension. To mark the last UK call, SMI has the great pleasure of being invited by the Chairman and Directors of St Helena Line Ltd to attend a celebratory lunch onboard, to celebrate her 26 years’ service.
RMS St Helena was moored next to HMS Belfast on the Thames and on the same day HRH The Princess Royal attended an evening reception onboard before the ship travelled to Tilbury where a public open day was held.
The 6,767gt vessel is capable of carrying 156 passengers plus 56 officers and crew and over the years has carried a wide variety of cargo ranging from Christmas turkeys to fire engines.
It has not yet been confirmed who the vessel’s next owner will be when she finishes the St Helena service next July. l
Ship Management International Issue 62 July/August 2016
RMS ST HELENA MAKES FINAL UK CALL
AdHoc
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Three employees from maritime PR and publishing agency Elaborate Communications
scaled three of the largest peaks in the United Kingdom in 24 hours to raise money for the Sailors’ Society, a charity set up to support merchant seafarers and their families.
Sean Moloney, MD of Elaborate and Editor of Ship Management
International, Phil Page, PR Account Manager, and Gemma Mills, Sales Executive, took on the challenge with 26 other teams from around the maritime industry.
The event took place over the weekend of 16/17th June with the first ascent up Ben Nevis in Scotland, the highest peak in the UK, followed by an overnight coach ride to the north
of England where the teams climbed Helvellyn in the early hours of Sunday. The final summit was mount Snowdon, the highest peak in England and Wales.
“We all trained really hard for six months before the event,” said Sean, “but climbing three peaks in succession was really hard particularly during the final ascent on Snowdon as the weather quickly deteriorated so we finished absolutely soaking wet and cold. However, completing the challenge is something I’ll cherish and knowing that the donated money is going to help seafarers and their loved ones makes it all worthwhile.”
The Sailors’ Society will use funds raised by the teams to help rebuild homes lost in Typhoon Haiyan in the Philippines in November 2013.
There is still time to make a donation to this worthy cause, if you wish, by accessing Elaborate’s Just Giving site using the following link: www.justgiving.com/elaborate l
The legal position of the ship’s Master when tackling the day-to-day pressures of today’s shipping industry, will be the subject of this year’s Cadwallader Debate, organised
by the London Shipping Law Centre, Maritime Business Forum.The debate, to be held at the Lloyd’s Building in the last
week of October, will be chaired by the Lord Clarke of Stone-cum-Ebony and will be attended by over 400 delegates from across ship owning, shipmanagement, insurance, law, class and regulation.
Entitled: The Master Under Attack –What is the Legal Position?, the debate will discuss the problems Masters face and suggest possible solutions. The problems include: Erosion of the
Master’s Authority; Increase of the Master’s responsibility; The Master as a legal ‘hostage’; The powerful position of charterers; The global vulnerability of the Master; External interference; Bullying and harassment by authorities in the port; and the demands of modern technology.
Suggested solutions include the need to support the Master; the need to reinforce his authority – or reduce the liabilities; and the need to consider carefully, the consequences of maintaining the status quo by doing nothing.
For more information about the debate and how to get tickets, please contact Gerard Matthews on +44 (0) 20 7936 3417 or by email: [email protected] l
Issue 62 July/August 2016 Ship Management International
TEAM ELABORATE CONQUERS THREE PEAKS FOR CHARITY
CADWALLADER DEBATE TO TACKLE THE LEGAL POSITION OF THE MASTER
AdHoc
76 Ship Management International Issue 62 July/August 2016
The current regulatory environment, increased bureaucracy coupled with
insecurities and instability in an industry which is central to world trade are all issues which will be discussed at the forthcoming Malta
Maritime Summit to be held at the Grand Hotel Excelsior, Valetta on 3rd 3rd October.
Delegates will debate how EU Maritime policy can better serve an industry that is already suffering from over-regulation and current market
conditions? How can the EU be more proactive? How can the industry play a more active role in influencing decisions both within the EU and the international institutions?
You can find out more by visiting www.maltamaritimesummit.com l
Athens’ shipping carried on where it left off when up to 60 of Vantage Shipping Lines’
shipping partners attended a post-Posidonia party in an historic warehouse located in the old industrial ship repair zone of Retsina in Piraeus.
Vantage held the evening to recognise and thank the shipping services partners it has worked closely with over the years. Guests mainly comprised executives of the shipping support companies that make Piraeus
the successful shipmanagement centre that it is today.
Costas Savvides, General Manager of Vantage, said: “It is important to maintain the highest levels of relationship with whoever you are working with at whatever level at all times. Especially if you need something done with your ship at 2am.”
Retsina is the historic home of many of the old Greek workshops and repair shops that have existed for over 200 years.
Vantage owns and operates handy and handymax bulk carrier vessels. It has recently opened a branch office in London in addition to its Athens-based office. l
MALTA MARITIME SUMMIT TO DEBATE INDUSTRY STABILITY
IT’S POSIDONIA AGAIN FOR VANTAGE THANK YOU PARTY
1/ Konstantinos Striboulis, Senior Account Manager, Navarino; Dimitra Passarea, Fleet Manager, Vantage Shipping Lines; Dimitris Papadimitriou, Senior Bunker, Lubricant Trader, BMS United Bunkers; Costas Savvides, General Manager, Vantage Shipping Lines;2/ Alexandros Damianidis, partner, WFW (Athens); Maria Antoniou, Account Manager, EUROBANK ERGASIAS; Spyros Chalikias, Chartering Broker, HellasChart
1/ 2/
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Objects of desire
Ship Management International Issue 62 July/August 2016
» Road star
This sleek 1960s-styled roadster packs a punch with a mid-mounted 3.5-litre V6 engine which can take it from 0-62mph in just four seconds.The chassis is made from tubular steel while the body is mainly aluminium except for stainless steel panels providing side impact and roll over protection. The car also features 16-inch alloy rims and has a top speed of 135mph.It is available in track and road-ready configurations and has been limited to just 30 cars.
Jannarelly Design-1 $55,000www.jannarelly.com
» Shake it up
With classic cocktails making a comeback, this beautiful shaker from iconic British luxury brand Asprey, will help craft the best in tasty tipples.Made from hallmarked sterling silver and green glass, the emerald green represents the green lights that adorn the starboard sides of boats.
Starboard Cocktail Shaker£6,500www.asprey.com
» Cooking on the go
Whether you’re at the beach or out backpacking, this handy portable stove is just the job for when you are feeling peckish.
From Swedish company Primus, its folding design makes it compact while the strap means you can carry it wherever you
travel. Dual 10,000 BTU burners make cooking quick and easy and the design means they are sheltered from being blown out
by the wind.The top is covered with an oak lid which doubles as a cutting or
serving board.
Primus Onja Stove$140
www.primus.us
Objects of Desire
79Issue 62 July/August 2016 Ship Management International
» Tracking fitness
The Samsung Gear Fit2 is the latest GPS sports band to hit the market.It comes with a standalone music player so you don’t need any other mobile
device when working out, and one new feature is Auto Activity Tracking so it can assess what activity you are doing and adjust data it prioritises to suit.
The 1.5inch super AMOLED curved display features a 432 x 216 pixel resolution and it comes with Bluetooth connectivity so it can hook up to
wireless headphones. Available in black, blue or pink.
Samsung Gear Fit2 $180
www.samsung.com
» Luxury luggage
The ultimate in luxury luggage, this six-piece set has been designed to fit like a jigsaw into the boot of the Rolls-Royce Wraith.
Involved in the design process were head butlers from some of the world’s top hotels and the collection includes two carbon fibre
wheeled suitcases, three weekend bags and a garment carrier.Pieces can also be bought separately and customers can pay more
to have them customised to match their car.
Rolls-Royce Wraith Luggage Collection £24,248
www.rolls-roycemotorcars.com
» Grand design
This stunning modern piano from British company Whaletone has the sleek appearance of a whale as when the top is opened it looks like a dorsal fin. In a departure from the classic grand piano, which uses hammers and strings to make its noise, this electronic instrument, designed by Polish designer Robert Majkut, is loaded with 50 various high-quality sounds and packed with modern technology to make the playing experience sound and feel authentic. Built-in USB connection sockets provide the capability of recording, saving and playing back your sessions while each Whaletone can be adapted to order with fully bespoke finishing options available such as case colour and upholstery.
Whaletone Grand HybridFrom £75,000www.whaletone.com
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Review»The GetawayRed Hot Chili PeppersWarner Bros
»Pilots’ Pocket Guide and Check-list: Working Safely With Harbour Tugs – Reducing The Risks in Port TowageWitherby SeamanshipWitherby Publishing Group
The Californian dudes are back with this, their 11th studio album and their first since I’m With You in 2011, and it’s sure to be a summer sensation.Anthony Kiedis and Co’s distinctive sound and vocals offer a laid-back funky vibe, while at the same time mixing in a bit of disco, trip-hop and their characteristic guitar rock.The first single, Dark Necessities, preceded the album release and became the band’s 25th Top 10 single on the Billboard Alternative Singles Chart. We feel the others could well follow suit.
The guide has been written by members of the British Tugowners Association with assistance from the UK Maritime Pilots’ Association in association with the UK Chamber of Shipping in order to promote and improve safety in harbour towage.Harbour towage is a potentially hazardous business and should not be undertaken unless there has been a proper assessment of the risks involved. Good communication by all parties, proper planning with an understanding of what can go wrong and good seamanship are critical in ensuring that the risks are minimised.Thorough training and appropriate experience are also essential in ensuring that the professionals involved are competent. To assist in this process, this guide aims to support pilots and PEC holders in their daily task. It draws on industry best practice and uses checklists coupled with guidance to provide a handy pocket-aide memoire for those responsible for directing tugs during harbour towage.
Ship Management International Issue 62 July/August 2016
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books, theatre, dining, events, culture, films, festival, music, art, dvd, wine
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»The Girl Who Beat ISIS: My StoryFarida Khalaf and Andrea C HoffmannSquare Peg
»Hurvin Anderson: Backdropwww.ago.netShowing now until 21st August, 2016
»The Janewww.thejaneantwerp.comAntwerp
In August 2014, Farida, like any ordinary teenage girl, was enjoying the summer holidays before her last year at school. But Farida lived in the mountains of northern Iraq — and what happened next was unimaginable. Her village was an ISIS target. ISIS jihadists murdered the men and boys, including her father and brother, before taking Farida and the other women prisoner. This is the story of what happened to Farida after she was captured: the beatings, the rapes, the markets where ISIS sold women like cattle, and Farida’s realisation that the more resistant she became, the harder it was for her captors to continue their atrocities against her. So she struggled, she bit, she kicked, she
accused her captors of going against their religion, until, one day, the door to her room was left unlocked. She took her chance and, with five younger girls in her charge, fled into the Syrian desert.Searing and immediate, this is the first memoir by a young woman that shows first-hand what life is like for innocents caught up in the maelstrom of day-to-day life with ISIS.
Be it the lush tropical foliage of Trinidad or the hum of Birmingham’s living room barbershops, the subjects in British artist Hurvin Anderson’s large-scale paintings, sculptures, drawings and photographs are bursting with colour and life but remain ever so slightly out of reach – seen behind fences or encased in packaging.The Art Gallery of Ontario (AGO) offers a glimpse into these scenes with Anderson’s first Canadian solo exhibition, which runs until 21st August. Anderson was born in Birmingham, England to Jamaican parents and his source material often stems from early experiences in Birmingham’s black community, London as well as in Trinidad where he became intimately familiar with the islands landscape and motifs.
Food is a religion at The Jane in Antwerp, Belgium – for the open kitchen is located on the altar of what was once a former military hospital chapel.Chef Nick Bril is responsible for the day to day running of the gastronomic restaurant and decides on the menu alongside chef Sergio Herman, serving up locally sourced produce.Diners have the choice of two tasting menus of seven and eight dishes and wine pairings are available for both. On the Mezzanine level above, you will find the Upper Room Bar, where delicious tapas, cocktails and speciality beers are served.
1/ Hurvin Anderson Peter’s: Sitter’s III, 2009 oil on linen 73 5/8 x 57 5/8 in. Private Collection, Oslo.
Issue 62 July/August 2016 Ship Management International
82 Ship Management International Issue 62 July/August 2016
TITANIC’SBRINGING
TALE TO LIFE
Lifestyle
By Samantha Giltrow
Lifestyle
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Tucked away on a small farm estate in the middle of rural Buckinghamshire, England lies
a place you would least expect to find a history hub dedicated to keeping alive the story of the world’s most tragic ship sinking.
But it holds the offices of White Star Memories, a company founded three years ago by its Chief Executive Officer John White and Chief Operating Officer David Scott-Beddard to preserve and exhibit the compelling tale of RMS Titanic through exhibiting their many artefacts from the stricken vessel and its identical twin ship Olympic.
John explained how he and fellow enthusiast David met through their memorabilia collections: “We met in a pub car park at 9pm and he was shifting some silverware from the back of his boot! We had a beer, got on really well and eventually put on a couple of shows together.”
The pair started to get contracts including one from Belfast City Council and then won a major job in the US, so John decided it was time to quit his job as a prison officer and take on the business full-time.
John and David’s interest in Titanic first surfaced when they were young
children, as John recalled: “I was given a book on Titanic when I was seven and it just caught my imagination. As I grew into my 20s, I served in the Royal Navy for a number of years and I was collecting more and more books on Titanic and put on a tiny show of just books in a village hall which did really well. I knew there was a definite market.”
John continued to buy artefacts from Olympic-class ocean liners Titanic, Olympic and their owners White Star Line, and with David collecting over many years too, White Star Memories now boasts one of the world’s biggest collections – around 2,000 artefacts – which they rent out for exhibitions, ranging from a small salt spoon to light fittings and beds.
However, discovering the public still has an insatiable appetite for all things Titanic, the pair recently came up with a new exhibition of their own – Titanic in Photographs – based on the best-selling book by Daniel Klistorner and Steve Hall.
“David came up with the idea,” explained John. “He said ‘how about we bring this book to life in a three dimensional exhibition?’”
The best photographs were chosen from the book, a licence obtained to reproduce them, and they were transferred onto huge high resolution banners. Photographs were specifically chosen to match the artefacts belonging to White Star Memories, so the exhibition goer can relate to what is actually in the picture.
“Our exhibition celebrates the opulence of the vessel and we really don’t concentrate too much on the sinking,” said John. “How it looked onboard and how people went about their daily lives onboard and personal stories – people love those.”
One example was survivor Christopher Mills, who was onboard Titanic and picked up a pocket watch from the deck as he clambered into a lifeboat – the same lifeboat that Chairman of White Star Line J. Bruce Ismay was in.
The watch went on to remain in his family after he died and subsequently was sold at auction several years ago. “One of the family members saw it on show at our recent exhibition in Milton Keynes, which is exactly what she said she wanted to happen to it.”
John said many Titanic-related artefacts end up in people’s private collections,
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including the likes of rock stars “who are into the whole story of the ship and collect major pieces which are never seen again.”
“Although we own the artefacts, we feel like we are just their present custodians,” said John.
John and David are registered with auction sites worldwide and receive notification of anything Titanic-related. They also buy from Henry Aldrige & Son, a specialist auction house in Wiltshire well-known for valuing Titanic artefacts.
Indeed it was from there, they recently purchased sheet music belonging to the Titanic bandleader Wallace Hartley, which reportedly was found strapped to the body of the doomed musician along with his violin.
“Unfortunately we couldn’t afford the £900,000 for the violin but we managed to buy some of the sheet music,” said John.
Wallace Hartley’s body was taken back to Colne in Lancashire where he was buried and all his personal possessions given to his family, who kept them until 2012 and then sold everything.
“The sheet music is a nice piece and we try to display it in a sympathetic manner along with some of his original photographs.”
Not many photographs were taken of Titanic and Olympic together but the exhibition contains surviving rare images. At first glance it is not easy to distinguish the differences but the most obvious difference is that Titanic had the forward
part of her Promenade ‘A’ deck glazed in during the final part of the fitting out.
No furniture really exists from Titanic either – according to John, you get the occasional deckchair coming up for sale – so if you want to see any furniture from the ships you really need to look at the sister ships – Olympic and Britannic – which were very similar in design.
Is there anything they still wish to include in the collection?
“I bought it recently!” explained John. “An Olympic launch ticket which I had wanted for a very long time.”
He added: “I’m a massive Olympic fan and I’ve probably got one of the world’s biggest collections of Olympic artefacts in the world. I even have some of her paperwork, such as registration documents, but I had always been after the launch ticket.”
The ticket came as part of a journal belonging to a Richard May, who was a first class passenger on Titanic and survived. From the early 1890s, his hobby was going on maiden voyages and he kept a journal of these including his trips on Titanic and Olympic. He loved travelling so much that even the Titanic sinking did not deter him and he went on to attend the maiden voyages of subsequent ships.
Titanic in Photographs was launched in White Star Memories’ nearest city - Milton Keynes - in May, and has since travelled to a couple of other UK towns. There are plans to take it to Brazil at the end of August for a 12-month tour of 12 cities.
Why Brazil? “Funnily enough, Brazil has a Titanic society and they also love exhibitions in South America,” said John.
They are also looking at possibly taking the exhibition to Chicago and Baltimore and have also received interest from Italy and Canada.
Keeping the story alive is so important to John that he is even sparking interest from youngsters in local schools and during the past five years has visited over 100 schools to relay the story of Titanic using artefacts.
“A lot of them still think the Jack and Rose story is real so I try to separate that from the film!” he said.
“They are all very interested and it’s great to get their feedback.”
And it’s not just Titanic but White Star Line in general, that John and David want to keep in the public eye.
White Star Memories was involved in the campaign to buy the Titanic tender Nomadic, which was the last of the White Star Line and built alongside Titanic at the same time. She was a tender for Titanic, taking out first and second class passengers to the ship from Cherbourg harbour and went on to serve the Olympic and Queen Mary before embarking on wartime service as a troop transport vessel between England and France.
Although the company could not raise enough money to purchase the vessel, the worldwide appeal caught the attention of the British government who stepped in and purchased it at auction in France to save it going to the scrapyard.
“The Minister at the time, David Hanson, sent us a letter saying if it was not for our efforts, the Government would not have touched it,” said John.
The vessel is now back in her original drydock in Belfast and has been fully restored by her original builders, Harland and Wolff. She is now a museum piece and owned by the Titanic Belfast exhibition.
“She certainly looks a lot better than she did in 2006!” said John.
For more information visit whitestarmemories.com or visit the Facebook page, White Star Memories. l
Ship Management International Issue 62 July/August 2016
