Tnker Operator magazine 09-2015.pdf

7/24/2019 Tnker Operator magazine 09-2015.pdf

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TANKEROperatorAUGUST/SEPTEMBER 2015 www.tankeroperator.com

Innovativeengineering forenvironmentallyfriendly products.

Becker Marine Systems faces its

responsibility for sustainable and

environmentally friendly developmentby continuously reducing the ecological

footprint of Becker products.

Furthermore we research and develop

energy-saving product innovations like

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improve the EEDIof their vessels.

586 Becker Mewis Ducts have already

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2/52

International Registries (Far East) LimitedSingapore Branch


3/52

August/September 2015 TANKEROperator 01

Contents

MarketsGeo-political challenges continue

Singapore Report New SSA President Join the industry

Shipmanagement centre

Norstar set for growth

FSL Trusts markets gains

Shipmanagement Wallem promotes new personnel

V.Group continues momentum

Commercial Operations Boutique agency expands Mombasa agency faces the future

As well as presenting the 1,000th Mewis Duct at Nor-Shipping, the company, through one of its subsidiaries, started to supply LNG as a fuel to

an AIDA cruise ship in Hamburg.

The fuel is transferred from a purpose deigned and built barge stationed in the port. Managing director Dirk Lehmann and his team areendeavouring to market this concept worldwide and not only to cruise ships but also to other vessel types, including LNG-powered tankers.

Despite the fall in bunker prices, Becker Marines novel design rudders and ducts will still save enough percentage of fuel for a timely return

on investment.

Innovativeengineering forenvironmentallyfriendly products.

Becker Marine Systems faces its

responsibility for sustainable and

environmentally friendlydevelopment

bycontinuouslyreducingtheecological

footprintofBecker products.

Furthermoreweresearchanddevelop

energy-savingproductinnovationslike

the Becker MewisDuct.Combined

with a Becker Rudder, the Becker

MewisDuctenablesourcustomers

to save up to 8% ofpower andto

improvethe EEDI oftheirvessels.

586BeckerMewisDuctshave already

reduced CO2 bymorethan 1,500,000tuntilJuly2015.4 25moreBecker

Mewis Ducts have already

beenordered.

fuel saver

Visit us at Kormarine, International Marine, Shipbuilding & Offshore Exhibition,Busan, Korea, German Pavilion, hall 4, booth no. 4S23, 20 th-23rd October 2015

WWW.BECK ER-MA RI NE-SYST EMS.COM

Nord Strength

Tanker built 2013

LOA 183.0 m 49,995 dwt

ItsBeckerMewisDuct

reducesCO2 by1,134tperyear

04

08

26

23

18

Anti-Piracy A three-pronged attack

Technology

30 Classification SocietiesAll change at IACS

Asset performance optimisation

RS rules in compliance

Flag states take on class

LR gains tanker success

Vetting support offered

36 Efficiency - Fuels & Lubes

Keeping vessels operational

Advantages in planning change

40 Ship Design

New ship design tools

42 Ballast Water

Problem of regrowth

43 Profile - DSM Dyneema

Synthetic fibres used in rope44 Coatings

New products and ideas

47 Tank Servicing

Statutory requirement changes

Calibrating portable gas detectors

29


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TANKEROperator August/September 201502

COMMENT

Just what are the Nigerians up to?

TANKEROperatorVol 14 No 8

Future Energy Publishing Ltd

39-41 North Road

London N7 9DP

www.tankeroperator.com

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Did the Nigerians really blackball

113 tankers? It would appear so

given all the fuss that has ensued.

Intertanko, P&I Clubs and the legal

fraternity, among others have all become

involved, since a letter purported to have come

from the Nigerian National Petroleum Corp

(NNPC) suddenly landed on desks, stating that

the organisation had banned the tankers from

calling in Nigerian waters.

The letter included phrases such as

..engaging in crude oil/gas ... activities in

any... terminals within...Nigerian territorial

waters.... The directive further provides that

...the affected vessels have also been barred

from movements within ... Nigerian territorial

waters.Holes have immediately been identified in

the list of tankers allegedly banned, including

duplications, miss-spellings and the fact that

some of the named vessels had never been to

Nigeria, according to their owners and

operators.

I cannot comment too much as to the

content of the letter, as a copy did not arrive

on Tanker Operators desk, so presumably we

are not banned.

However, it has engendered a series of

warnings to owners and operators of namedculprits about ever considering calling at

Nigerian terminals. Some operators have even

gone so far as to suggest inserting special

clauses in charterparties, especially voyage

c/ps, to indemnify themselves against having a

vessel stopped when fixed to load crude oil at

a Nigerian terminal.

Are we overreacting? I guess we have to

take anything seriously, which could cause a

$90 mill plus vessel to be seized together with

her cargo and crew, as thus far, there have

been no reasons given for the blanket ban.

Until such times that we know the reasons and

how to circumvent those reasons, we had

better take it seriously.

Leading London-based law firm Holman

Fenwick & Willan (HFW) almost immediately

sent out a warning saying that the directive

was thought to emanate from the President of

Nigeria, Muhammadu Buhari.

HFW also explained that earlier this year,

the Nigerian authorities introduced a

requirement that all tankers loading crude

from Nigerian terminals complete an out-turn

verification exercise (OVE) at discharge ports.

It was thought that the recent letter could be

linked to this initiative. However, HFW

confirmed that the grounds for the ban had notbeen explained thus far and it is quite unclear

what rules or regulations the owners affected

are meant to have breached.

Wide ranging implications

HFW warned owners and operators about the

potential implications for crude oil tankers

operating within Nigerian waters, which could

be wide-ranging. Whilst steps are being taken

to understand the ban, HFW recommended the

affected owners and charterers take action to

protect themselves against the consequences ofbeing included on the prohibited list.

Looking forward, owners and charterers

should also take action to ensure they reduce

the risk of being included in any

updated/amended prohibited lists, the law firm

said.

HFW also pointed out that there was a

question mark over what constitutes Nigerian

territorial waters.

For many years now, Nigeria has been a

particularly unstable country and recently

elected a new Government one of whose

election promises was to clean up corruption.

The NNPC has already stated it will look into

the bunkering/fuel oil situation in Nigeria and

within its territorial waters.

With smaller ship-to-ship transfers offshore

there is still a real threat of piracy by interests

allegedly based in Nigeria who want to steal

cargoes and resell them.

The larger crude oil loading terminals are

operated by the oil majors with the authorities

and are by and large well guarded. There are

various factions that occasionally cause

trouble around the Bonny River and Niger

Delta, but these are mainly aimed at the oil

majors operating in the area, rather than the

ships themselves.At the time of writing (24th July), VLCC

trip rates ex West Africa were above WS80 - a

healthy return for owners but not necessarily

for operators. If we see an exodus of tonnage

from this loading area with its popular heavy

crude, it could spook the market and would

obviously impact on Nigerias foreign

earnings.

Is it just a case of a new Nigerian

Government trying to exert its power over the

oil majors, who are accused of milking the

assets or are there more deep politicalundertones at work?

Hopefully, by the time you read this, the

situation will have become much clearer and

we can all breathe a huge sigh of relief. Until

then, there is nothing like uncertainty to send a

market sky high or into freefall.

One has only to remember the Middle East

wars and their affect on the tanker markets

with threats to close the Straits of Hormuz

seen almost daily.

TO


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INDUSTRY - MARKETS


Challenging times

ahead?Where do you begin to describe the events influencing the resurgent tanker market ofthe past 12 months, a leading broking house asked?I

n the crude sector, OPECs historic

decision against cutting crude production

to defend its market share reverberated

throughout the tanker markets. With the

oil price crashing, bunkers, which represent the

single biggest voyage expense, followed suit.

At the same time, higher global crude

production increased transportationrequirements, which supported freight rates,

said London broking house Gibson in its mid-

year review.

Towards the end of 2014, a widening

contango in crude oil futures increased

speculation of floating storage. Although the

contango was insufficient to make floating

storage profitable, earlier this year up to 30

VLCCs were chartered in anticipation of a

floating storage play later in 2015.

Increasing crude flows out of Iraq supported

Suezmax earnings, whilst exports from West

Africa to Europe remained robust, offsetting the

near disappearance of the traditional West

Africa/US crude trade.

With lower import demand from the US,

flows of West African and Latin America crude

to the East increased, boosting tonne/miledemand. In addition, the continuing conflict in

Libya provided further support to the West

African Suezmax market, albeit at the expense

of the Mediterranean Aframax trades.

In the products sector, earnings remained

under pressure over the first half of 2014.

However, the addition of refining capacity in

the Middle East began to support the market in

the second half of last year.

This, coupled with stronger global refining

margins, particularly in Europe, boosted

product trades, and subsequent product tanker

earnings. With margins remaining strong thus

far in 2015, together with an additional 800,000

barrels per day refining capacity in the Middle

East coming on stream, product tanker rates

remained at their highest levels seen since

2008.A comparison spot rates/TCE earnings on

several of the benchmark trades can be seen on

the table below. By the end of June, VLCC

earnings on TD3 (AG/Japan) had climbed to

$69,250 per day, compared with just $12,250

per day for the corresponding period last year.

Making the same comparison for TC2 (MR

37,000 tonne gasoline UK-Cont/USAC) rates

have moved from $5,500 per day last year to a

very healthy $26,500 per day.

June 2013 June 2014 June 2015Spot rates/TCE (a)

VLCC (MEG/Japan)Suezmax (West Africa - UKC)Aframax (Nsea/UK-Cont)55k Naphtha (MEG/Japan)37k Gasoline (UK/Cont-USAC)

WS TCE/day WS TCE/day WS TCE/day

VLCCSuezmaxAframax/LR2

Panamax/LR1MR (25-55k)

Deliveries Jul to Jun (25,000 dwt+)Orderbook (excl. options)VLCCs on order

S/H D/H TotalS/H D/H TotalS/H D/H Total

S/H D/H TotalS/H D/H Total

Demolition Jul to Jun (25,000 dwt+)Ldt price China / Sub Continent

VLCC NB / 10yr oldSuezmax / 10yr oldAframax / 10yr old

41 $19,75049 $9,50083 $7,25095 $10,000118 $9,000

38 $12,25072 $22,75099 $13,500110 $13,00099 $5,500

64 $69,25093 $50,000150 $69,500141 $32,250171 $26,500

13 623 6361 488 48916 900 91613 380 393105 1,756 1,816

1 625 6260 476 4768 887 8957 433 44071 1,772 1,843

1 637 6380 483 4834 927 9312 416 41859 1,821 1,880

26.2 M dwt (197)49.6 M dwt (455)

61

17.7 M dwt (162)62.1 M dwt (590)

86

16.7 M dwt (180)77.3 M dwt (599)

114

$90M $29M$56M $26M$47M $20M

9.8 M dwt (96)$315 / $430

12.3 M dwt (104)$325 / $495

4.7 M dwt (70)$220 / $390

$100.5M $50M$66M $34M$54.5M $24M

$95M $52M$64M $40M$53M $31M

(a) Assessed at market speeds of abt 13 kn laden, 11.5-12 kn ballast. Source - EA Gibson.


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INDUSTRY - MARKETS

August/September 2015 TANKEROperator

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The continued recovery in earnings was both supply and demand

driven. With the exception of MRs, fleet supply growth in both the

crude and product sectors has slowed since 2014 with supply in some

size groups even contracting, Gibson said.

Limited fleet growth is also apparent this year, which has also

contributed to the markets strength. Inevitably, with the success of the

tanker sector, the temptation to take advantage of low newbuilding prices

has resulted in a sustained period of investment across the board with the

exception of MRs.

With shipyards reporting shrinking orderbooks beyond 2016, pressure

is mounting on yards to lower their prices still further particularly with

the dearth of orders from the other shipping sectors, which are currently

in the doldrums.

At the other end of the supply chain, not surprisingly, we have seen

very little recycling thus far in 2015 with just 17 tankers (25,000 dwt

plus) sold. The largest two units were both 1992 built Aframaxes.

Lightweight prices have softened considerably since last June and at

the beginning of July stood at around $390 per ldt (basis India) about

20% lower than at the same time last year. As a result of firm rates and

lower scrap prices, not many tanker owners are currently considering thisoption.

Higher values

Secondhand values across all tanker sizes were higher than in June

2014, even for 15 year old vessels. And there have been several notable

secondhand deals, which have attracted the attention of the market.

Crude tanker values have risen faster than those seen in the products

sector, but nevertheless, there are plenty of buyers looking to invest in

both sectors. Probably the most talked about deal thus far this year was

Euronavs acquisition of four VLCCs for $96 mill apiece under

construction for Metrostar, which has given the buyer newbuilds without

adding to the orderbook.Looking at events on the political scene, little has changed since last

years round up. A resolution to the Iranian crisis is underway. The

Libyan situation remains unstable and no immediate peace process

appears to be on the horizon. Sanctions against the Russian Federation in

respect to the situation in the Ukraine remain in place but have had little

impact, as crude and product exports continue to flow.

The US Government has thus far not made any decision on

overturning the ruling on the ban of crude exports, but we continue to see

even larger volumes of products from the country.

Certainly, the next few months will be interesting. For the tanker

market, we could be entering a period of ifs and buts, as well as

entering uncharted waters, which will be challenging, Gibson said.

Orderbook

Examining the orderbook in greater detail, Gibson said that tanker

contracting activity is a good first hand indicator of near term

developments in the global fleet.

Investment has increased notably over the past couple of years,

although its intensity has varied, depending on the size group and the

year.

The number of tanker orders in 2013 reached the highest level since

2008. Although ordering activity declined in 2014; nonetheless, tanker

investment thus far this year shows all the signs of beating the 2013

record.

Stronger appetite for new tonnage in recent years has been stimulatedby a number of factors. For example, in 2013-14, counter-cyclical

investment played a big role, driven to a degree by private equity/hedge

funds and relatively undervalued newbuilding prices, which were


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INDUSTRY - MARKETS

particularly depressed in 2013, reaching their

lowest levels since 2004-05 in that year.

In addition, LR1 and LR2 orders were

supported by strong demand prospects, due to

expanding export orientated refining capacity in

the Middle East and India. Finally, this year the

spectacular rebound in crude and product tanker

earnings has translated into continued strong

investment in new tonnage, despite a rapidly

rising orderbook.

Looking at each tanker segment in greater

detail, 34 VLCCs were ordered during the first

half of this year - just marginally below the

2014 total and not far behind the number of

orders seen in 2013, when investment in new

VLCCs reached its highest level for several

years.

The picture is similar for Suezmaxes, with 30

orders thus far in 2015, already more than half

of all the orders for 2014 - the highest since2010. Ordering activity for Aframaxes was

considerably more muted in 2013-14, yet an

impressive rebound has been seen this year, as

since January, 40 Aframaxes have been ordered,

the highest number since 2007.

Investment in new larger product carriers has

also accelerated thus far this year. In the LR2

segment, 37 vessels have been ordered, well

above the number seen last year and more than

half in 2013, when investment in new tonnage

surged to its highest level since 2007.

In the LR1 segment, 25 orders have beenplaced since January, just marginally short of

the 2014 total, when investment in this vessel

type jumped to its highest level since 2009. In

contrast, ordering activity for new Panamaxes

has remained highly restricted, due to owners

preference for coated tankers.

Investment in new Handy/MRs has also been

very limited since 2014, albeit following an

impressive surge in orders during 2012-13.

Stronger investment in recent years has

naturally boosted the size of the tanker

orderbook, which by now has reached its

highest level since 2011-12 for most size

groups.

At present, VLCCs and Suezmaxes have the

largest orderbook, at 18% and 17%,

respectively, to their current size. The

orderbook for other tanker classes is also

substantial, with exception of Handies.

It will be interesting to see whether new

tanker ordering activity will remain at similar

robust levels during the second half of this year.

If the returns continue to beat expectations, this

will most likely be the case.

Taking into account limited prospects fortanker demolition - another consequence of

high earnings - all of the above means that the

growth in tanker supply is going to start

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TO

Source - EA Gibson.


9/52


10/52

INDUSTRY - SINGAPORE REPORT


New SSA president

takes his seatEsben Poulsson was appointed as the Singapore Shipping Association's (SSA) newpresident after the newly elected Council for 2015-2017 was voted into place

at the Annual General Meeting on 30th June, 2015.

T

he new Council elected Poulsson

as successor to the outgoing SSA

president- Patrick Phoon.

Paying tribute to the work of the SSA andthe Council, Poulsson said:I am honoured

and humbled to be appointed president of this

active and vibrant organisation, consisting in

excess of 470 member companies.

And as the SSA turns 30 years old, I would

like to pay tribute to the work of the many

members who have served tirelessly on the

Council and standing committees over the

years, and, in particular, to my predecessor

Patrick Phoon, who has served on the Council

for no less than 24 years, the last four as

President.I look forward to helping to represent our

members interests to the best of my ability,

and to continue our constructive relations with

government agencies and other industry

partners in Singapore and overseas in

promoting and maintaining Singapores

position as a leading international maritime

centre.

I feel our hard working secretariat, ably led

by executive director Michael Phoon, stands

ready to help drive current initiatives forward,

and to implement new initiatives introduced

by the Council,he said.

At the 19th SSA AGM, it was announced

that the seven ordinary members nominated

for the 2015/2017 Council, most of whichserved on the previous Council, were returned

unopposed. The seven Members are:

Rene Piil Pedersen, managing director, AP

Moller Singapore.

Esben Poulsson, chairman, Enesel Pte.

Caroline Yang, executive director, Hong

Lam Pte.

Lim Sim Keat, managing director, dry

transport logistics, IMC Industrial Group.

Katie Men, managing director, Isenco

Holdings Pte.

Tan Chin Hee, executive director, PacificCarriers.

Lisa Teo, executive director, Pacific

International Lines.

To mark the SSAs 30 years of service to the

maritime industry this year, as an active voice

representing 475 corporate members and

growing, it has rebranded itself with a new

logo and embraced the tagline Navigating the

Future.

Poulsson explained: The tagline

Navigating the Future, was chosen to show

the direction that the association will be

heading towards strengthening Singapores

status as a leading international maritime

centre, which will benefit all of us in the

maritime community. This brandtransformation represents where the

association is today and our vision for the

future.

The SSA also warned that it is important to

distinguish between armed robbery and piracy

when reporting incidents in Southeast Asia

waters.

A little while ago, the SSA commissioned a

study to determine the scale of threat posed to

seafarers in the area.

The findings revealed that in the first

quarter of this year the vast majority ofincidents in this region fell under the category

of armed robbery (which is within the

territorial waters and under the jurisdiction of

the sovereign state) not piracy (which is on the

high seas).

This distinction determines whether a

merchant vessel can seek protection from the

navy/coast guard of the littoral state or from

the navy/coastguard of the vessels flag of

registry, the SSA explained.

The association said that seafarers should be

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11/52


12/52



ALWAYS TO BE TRUSTED

We take pride in the relationswe build with our customers,and we take pride in theproducts we deliver. This givesus the confidence to state thatwe are always to be trusted.

www.jetsgroup.com

Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway Tel.: +47 70 03 91 00 E-mail: [email protected]

aware that recent reports of pirate attacks are

in fact more likely to have been armed robbery

and targeted at specific vessel types,

particularly when in port or at anchor.

SSA calculated that, with an estimated

50,000 -90,000 vessels transiting the Straits of

Malacca and Singapore (SOMS)) each year

and further numbers sailing around the

Southeast Asia and South China seas, the

likelihood of a merchant vessel, which

exercises high vigilance and conducts anti-

boarding watch, being attacked is between

0.012 and 0.07%.

The situation in the South China Sea is

vastly different to the situation in the Gulf of

Aden where heavily armed pirates board

vessels in open seas with the intention of

taking the ship and its crew hostage for

ransom payments.

To fully understand the real scale of the

problem, the SSA commissioned the technical

report to examine incidents of armed robbery

and piracy in Southeast Asia waters and the

South China Sea.

The report undertook a detailed analysis of

the quarterly reports issued by the

International Maritime Bureau (IMB) and the

Regional Co-operation Agreement on

Combating Piracy and Armed Robbery against

Ships in Asia (ReCAAP) for the first quarter

The tripartite maritime task

forces for seafaring and shore-

based sectors formed by theMaritime and Port Authority of

Singapore (MPA) will be stepping

up efforts to encourage more

Singaporeans to join the maritime

industry.

These include increasing publicity and

outreach efforts to profile the diverse job

opportunities available, improving workplace

learning and training, and facilitating

upgrading opportunities.

This was revealed by Andrew Tan, MPA

CEO, in a speech at the 8th MaritimeManpower Singapore (MMS) 2015

Conference organised by the Singapore

Maritime Officers' Union and Wavelink

Maritime Institute.

In his speech, Tan spoke on the growth of

Maritime Singapore and the diverse

opportunities for Singaporeans, as well as

how tripartite efforts are needed to develop a

quality maritime workforce to support the

industry's future growth.

He also outlined several challenges. These

include the perception of poor living

conditions and being 'disconnected' from the

world, as well as lack of awareness of

remuneration and progression opportunities.In addition, rapid transformation in the

industry also poses new challenges.

To tackle some of these challenges and to

better support the growth of Maritime

Singapore, the two task forces will be

exploring more structured on-the-job training,

develop multiple progression pathways, as

well as facilitate transitioning of local

seafarers from sea-going to shore-based jobs.

These initiatives are in line with the

national-level SkillsFuture project aimed at

providing Singaporeans with the opportunitiesto develop their fullest potential throughout

life, regardless of their starting point. MPA

said that it will be announcing more details on

these initiatives in the months ahead.

To begin with, the task force for seafaring

will be implementing cadet allowance

reimbursement in September to support the

training of about 180 Singaporeans to

graduate with the Certificate of Competencies

(CoCs) Class 3 or 5. To recognise the

perseverance of the students to reach their

first professional CoC certification,

Singaporean cadets will also be eligible for

Achievement Awards once they completed the

rigorous training and gained practicalexperience at sea.

Under the enhanced Tripartite Maritime

Scholarships (TMSS), 20 students will also be

receiving their scholarships in August, the

highest number of recipients since TMSS was

launched in 2002.

Two new sponsors - NYK

Shipmanagement and X-Press Feeders - have

joined the TMSS programme, bringing the

total number up to five. The other three

companies are APL, PIL and PACC Ship

Managers.Besides the initiatives by the task forces,

MPA will continue to utilise the Maritime

Cluster Fund - Manpower Development

(MCF-MD) as a strategic tool to support

manpower development initiatives. Earlier

this year, MPA injected another S$65 mill to

the MCF-MD programme to attract and

groom local talent for the maritime sector

Today, Maritime Singapore comprises over

5,000 establishments employing more than

170,000 people, and contributing about 7% to

the Republic's GDP.

Singaporeans urged to join the marineindustry by the MPA


13/52

SINGAPORE REPORT


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Petty theft

The findings revealed that only 14% of attacks on merchant vessels

were classified as piracy. Of the remaining incidents, 85% were cases

of armed robbery with almost half of these (46%) occurring while in

port or at anchorage. The vast majority of incidents (68%) involved

petty theft by unarmed perpetrators where crew members were

unharmed and economic loss was low.

SSA said it was encouraging Masters and seafarers to ensure that

they comply with recognised methods to counter possible boarding

when traversing Southeast Asian waters and advised that, if boarded,

Masters should put the well-being of their crew first while, at the same

time, fully complying with the standing instructions of their respective

companies.

The association also pointed out that the Best Management Practices

for Protection against Somalia Based Piracy (BMP4) can be

successfully adapted for use in Southeast Asia.

Case increases

In its half yearly report, ReCAAP said that the number of piracy and

armed robbery cases against ships in Asia increased 18% year on year

SSAs new president - Esben Poulsson.


14/52



to 106 during the six months ended June 2015.

This compares with 90 cases during the first

half of 2014.

"Already 106 incidents were reported at the

half-way mark of 2015. This signals the

urgency and importance of more [that needs]to be done by [the] authorities, shipping

industry and the ReCAAP Information Sharing

Centre towards improvements in the coming

second half of 2015," it said in its report.

The bulk of these cases or 62 incidents were

of petty theft.

Last year, the number of piracy and armed

robbery cases against ships in Asia increased

22% year on year to hit a 10-year high of 183.

It was the highest number recorded by

ReCAAP since it was formed in 2006 and was

formally recognised as an international

organisation in January, 2007.

Of the total 106 incidents reported during

the first half of this year, 56% were in the

Straits of Malacca and Singapore, ReCAAP

said.

Ten of the incidents were described as very

severe involving ship fuel or oil siphoning and

hijacking.

At least one incident was reported each

month during the January-June period. A total

of 11 incidents involved siphoning and

hijacking.

These incidents involved seven producttankers, two chemical tankers, one other

tanker and one supply vessel.

The key target for the perpetrators was the

oil or fuel, which the ship was carrying and

they left the vessel once the siphoning

operation was complete.

In its six month report released last month,

the IMB also highlighted the continuing trend

in Southeast Asia in the hijacking of small

coastal tankers by maritime pirates, averaging

one attack every two weeks.

According to the report, five small tankers

were hijacked in Southeast Asian waters in the

second quarter of 2015 alone, bringing the

total number of vessels hijacked globally in

2015 to 13.

IMB stressed, however, that enhanced co-operation between regional authorities is

paying off and that early detection of

approaching skiffs has resulted in attacks

being aborted.

Also highlighted was the tracking and arrest

off Vietnam of an eight-man Indonesian gang

responsible for the hijacking of the Malaysian

tanker Orkim Harmony in June. IMB also

praised the Malaysian authorities for the

conviction of nine Indonesian pirates the same

month, apprehended after the January

hijacking of an anchored product tanker off

Johor.

Pottengal Mukundan, Director of IMB said:

Information sharing and co-ordinated action

between concerned coastal states is crucial in

responding to this threat. We commend theeffort that caught one gang and also the hefty

custodial sentences imposed on another which

will help deter further incidents.

Singapore is home to many tanker owners or their subsidiaries.

I am honoured and humbled to be

appointed president of this active andvibrant organisation, consisting in excess

of 470 member companies.

Esben Poulssen, president, SSA

TO


15/52

Maritime Solutionspowered by people

www.bs-shipmanagement.com

An ocean of expertise dedicated to safe, reliable and efcient ship management


16/52



Within this feature, we look at

two - one in each category -

Bernhard Schulte

Shipmanagement (BSM) and

Norstar.

BSMs office in Singapore was establishedin 2000 and is one of nine Ship Management

Centres around the world.

The Singapore centre is ideally placed to

serve customers throughout Asia and the rest

of the world, with a stable location that is

strategically situated at the heart of the Asian

shipping industry and provides ready access to

the rest of the region.

In conversation with Tanker Operator, BSM

Singapore managing director, Bob Maxwell

said that the centre manages over 40 tankers,

from chemical tonnage, through producttankers to crude carriers, the company also

manages a fleet of gas carriers.

In total, the nine centres manage over 150

vessels in the chemical, product and oil tanker

segments worldwide through highly

experienced superintendents, who are

extremely competent in tanker operations,

Maxwell said.

Chemical tankers and high value product

tankers have always been a core part of our

expertise going back 15 years to when the

office was established in Singapore. Their

specialist nature, and the in-depth experience

required to effectively manage these vessels, is

key to BSMs success within the market of

Singapore.

We are committed to ensuring that we

deliver the highest standard of crew and

technical management with an emphasis on

safety, environmental protection and smooth

vessel operations within this industry, he said.

He explained that in particular, the Asian

and Singaporean tanker market was moving in

a positive but cautious upward direction,

driven by changes in local demand andrefinery capacity.

New business comes from both established

players and start up ventures. Whilst BSM

sees established companies growing steadily,

there are also some new players in the market

and some local trading companies who now

want to branch out into the international

market.

BSM is particularly well placed to help allof these companies using our long standing

experience and international reputation in the

tanker business, Maxwell said.

He explained that being focused on enabling

business partners to achieve their objectives

through the application of knowledge,

experience and innovation, the companys

commitment to every customer is:

Maximum vessel availability, safety,

reliability and efficiency to achieve higher

income at the lowest possible operating

cost. Protection of customer reputation through

integrity, full compliance and a top quality

safety and performance record.

Responsive global support provided

through an infrastructure of wholly owned

ship management, crew supply and

maritime training centres in over 30

locations worldwide.

He said that in line with the increasing tanker

interest in Singapore, BSM Singapore was

expanding and would continue to do so in a

controlled and co-ordinated manner.

We dont over promise or take on business

that we cant handle. All new business has to

be properly managed to the benefit and

requirement of our customers and for BSM to

maintain the long standing reputation that we

have established in the tanker industry with

vessel owners and charterers, he stressed.

Petrochemical fleet

Over half of the Singapore-managed fleet

comes from the petrochemical market and

BSMs policy is to recruit shore staff for these

vessels from the same sector to ensure thatthey have an in-depth understanding of the

industry.

It is not an option for us to quickly swap

staff from dry ships to oil or vice versa. The

same goes for our crew, as senior officers in

particular have all been properly trained

through the petrochemical environment to

ensure that this type of operating style is

second nature to them.Our specialised fleet teams of highly

trained on board and shore-based functional

specialists are in the best position to offer

responsive support, he explained.

As for training, Maxwell said that the

company concentrates on value added training

for the crews above and beyond STCW

requirements to ensure that they are properly

prepared for the high pressure working

environment on modern vessels.

Committed to recruiting, developing and

retaining exceptionally skilled personnel, BSMoperates five Maritime Training Centres

located in China, Cyprus, India, Poland and

the Philippines in addition to 23 Crew Service

Centres worldwide. Training scope includes a

mix of internal and external seminars,

workshops and on board training.

Land-based training replicates the on board

environment that seafarers will encounter in

their line of duty, including gas and safety

management courses and practical sessions on

advanced bridge, cargo handling and engine

simulators delivered at BSMs wholly- owned

facilities. BSM strongly believes that

continuous investment in training is vital to

developing capable and professional BSM

people, Maxwell explained.

As for the working conditions in Singapore,

Maxwell said that the island is probably the

most shipping friendly environment that the

company could work in. The Government

works closely with the Singapore Shipping

Association (SSA), of which BSM is a

member, with rules and bureaucracy kept to

the minimum. That is one of the reasons that

the industry continues to thrive in Singaporeand why BSM is committed to being part of

it, he concluded.

Shipmanagement is

thriving on the islandSingapore is a major centre for third party shipmanagement concerns, either

subsidiaries of major groups or standalone companies.


17/52



Norstar set for growthNews that Norstar Ship Management (NSM) had officially opened a crewing office in

Yangon, Myanmar recently - Norstar Crew Management Co - prompted Tanker Operatorto talk with managing director Tom Bonehill.

At the opening of the new office,

Bonehill said: The opening of

our crewing office in Myanmar is

a very significant step for Norstar.

We have been using Myanmar seafarers on our

vessels for many years now and the move to

establish our own office where we can invest

further in training and welfare is consistent

with our long term commitment to our

seafarers and Myanmar as a whole.The Yangon crewing office now undertakes

all crew manning and departure arrangements

on behalf of NSM in Singapore.

Norstar currently operates a fleet of 19

mainly oil product and chemical carriers. The

vessels are predominately manned by

Myanmar officers and crew.

Bonehill told Tanker Operatorthat the NSM

platform had been built up to manage tonnage

in all shipping sectors and the company has

the in-house expertise to undertake this. Our

focus over the last few years has been onchemical and product tankers, however, we are

able to manage other types and have crew in

our pool with experience on drybulk, container

and other sectors.

The new office in Yangon commenced

operations in February 2015 and is an

extension of the Norstar Ship Management

office in Singapore. Norstar has a pool of

around 1,000 Myanmar seafarers, which

makes it one of the largest crewing companies

in Myanmar. The company claimed high

retention rates, which are expected to grow

with the increased training and benefits now

being offered to the seafarers and their

families.

Norstar Crew Management is also active

recruiting local cadets from the MyanmarMaritime University and the Myanmar

Maritime Mercantile College.

Bonehill added: We are investing in

Myanmar for the long term and wish to play

an active role in the development of the

maritime sector in the country. We are keen to

explore the idea of setting up our own

dedicated training centre here one day and this

is something which is high on our agenda as

our fleet grows and our operations expand.

We intend to increase the recruitment of

Myanmar seafarers to become one of theleading and preferred employers in Myanmar.

Our focus will be on training crew and officers

to the highest standards supplying seafarers to

all sectors in the maritime industry, he said.

To mark the official opening in June,

Norstar held a three day officers conference

in Yangon, which was attended by around 200

clients, friends, staff and seafarers.

Bonehill explained the attraction of

Singapore by saying that it is a major shipping

hub, which caters to all of the shippingsectors. We are seeing it grow from strength

to strength, he said.

Vetting teams

Many of the oil majors have vetting teams on

the island, which he claimed worked well

being in the same time zone, as well as the

same city. Commercially, many of the main

charterers, including the traders, oil majors

and operators also have offices in Singapore.

People are happy to live and work in

Singapore with its thriving shipping

community and high standard of living. Its is

a good place to manage tankers from and the

Singapore Government has been very

proactive in thinking of ways to attract

companies, so yes we see more owners and

operators managing their tonnage from

Singapore. We definitely plan to increase the

size of our fleet managed from Singapore.

Ultimately, Singapore does need to remain

cost competitive and the margins are tight in

honest management so the Government will

need to keep a close eye on this, as no doubt

they are. Ultimately the shipowners will lookat the bottom line and if the managers costs

are too high people will look to more

competitive solutions, he explained.

Norstars Tom Bonehill.

At present, Norstars fleet consists of primarily product and chemical tankers.


18/52



As for the potential new business, he said

that in tanker shipmanagement, its all about

performance to the highest standards and

having the oil major approvals. The fact is,

its expensive to switch managers when there

is a period of the vessel being unapproved,

which makes it very hard for an owner to trade

the ship commercially. Ships therefore usually

stay with one manager unless something goes

drastically wrong, and there is no cost control

or external forces insisting on the management

changing.

We have grown organically working with

trusted partners and by referrals. In such

turbulent markets as a manager its hugely

important to work with well-established and

financially secure clients. We are also

managing ships for a number of private equity

backed funds who look to outsource their

shipmanagement, and we have strategicallypositioned ourselves for this market

development. Our systems have been set up to

be transparent and meet strict reporting

requirements, which is necessary when dealing

with private equity investors.

We expect to be managing up to 40 ships

within the next two to three years. This will be

a healthy mix of third party and tonnage in

which we have an ownership interest, he said.

He added that NSM believes that the

company is recognised as a cost-competitive,

high-quality shipmanagement company with

integrity. NSM offers both commercial and

technical management services and there are

clear advantages in carrying out both for our

clients. NSM also technically manages a

number of vessels where there is no

commercial management carried out by us,

he added.

Another advantage is that ship finance is

available in Singapore, as it is in other cities

around the world. Almost all the main

shipping banks have a presence in Singapore,however, ship finance is cross-border and

NSM works with banks from all over the

world. Norstar has close relationships with

many shipping banks and they are

multinational relationships. Setting up a

shipowning business is not easy wherever you

are located in the world. Norstar arranges debt

with banks for the tonnage has invested in, he

said.

As mentioned, today NSM carries out

constant training from the new Yangon office

where the majority of the seafarers emanate

from. Forums are organised at least twice per

year in Yangon and officers and crew

frequently pass through the Singapore office

for training. In addition, a great deal of

training on board is carried out, which is often

the most effective place to conduct certain

types of practical training.

Echoing the view that Singapore is a good

place in which to conduct business, Bonehill

said that the Maritime & Port Authority

(MPA) and the Singapore ShippingAssociation (SSA) are relentless in working

with the community to make Singapore an

efficient place from which to run a business.

Norstar was founded in 1998 in

London initially as a ship

brokerage firm. In 2001, the

company relocated to Monaco tofocus on shipowning, investment

and management.

Norstar Shipping (Asia) was formed in

Singapore in 2005, which is now the

company headquarters covering all areas of

commercial and technical management.

In 2009, technical shipmanagement was

brought in-house and in 2010, Norstar Ship

Management was formed by the merger of

Ship Management Associates and Luna,

Norstars in-house technical team. Norstar

Shipping USA was established in

Connecticut, US in 2012.With over 40 years combined experience

Norstars principals, Chris and Tom Bonehill

have been actively involved in the shipping

industry since 1989. The Bonehill brothers

worked for major shipbroking companies

(Clarksons London/Hong Kong, Arrow

London, Island Shipbrokers Singapore) until

Norstar UK was established in 1998. Norstar

ceased competitive shipbroking in 2007 to

concentrate on its own shipowning and

shipmanagement activities.

Norstar Ship Managements team is

largely made up of the ex-in-house technicaldepartment for a well-known US

product/chemical tanker owner. Many of the

present staff worked with this company for

17 years managing a fleet of about 20

vessels, most of which were built in

Japanese shipyards. In 2010, Norstars in-

house shipmanagement company integrated

the team into its existing technical platform

and NSM was formed.

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19/52



The 2007-built AframaxFSL

Shanghai and the 2005 and 2006-

built MRsFSL HamburgandFSL

Singapore were fixed to a leading

global commodities trader, believed to be

Trafigura, for a fixed period of two years withoptions to extend the agreements at a higher

rate for the MRs for a further six months and

the Aframax for a further 12 months.

The charters are due to commence during

the second half of this year and are anticipated

to generate up to $61 mill in revenue during

the next three years, the Trust said.

During the two-year base period under the

new employment,FSL Shanghais net daily

rate represents a 54% increase, whileFSL

HamburgandFSL Singapores net daily rate

represents a 31% increase for each vessel,compared with the previous timecharter

agreements.

The Trust said that the increased rates

reflected the continued tanker market

improvement and demonstrate FSLTMs

ability to achieve strong charter rates with

good counterparties ensuring stable cash

flows.

FSL Trust CEO, Alan Hatton, commented at

the time: "The new rates are significantly

above the current employment rates for the

three vessels and the projected revenue will

generate significant cash flow for the Trust.

These new contract agreements are another

positive step forward for the business,

providing stable and improved cash flows for

the Trust.

Hatton told Tanker Operatorthat the Trust

has no immediate plans to expand the fleet.

We do want to grow the Trust and start

renewing the fleet in due course. We would

continue to be sector agnostic, driven by

originating and executing deals in markets

where we believe the fundamentals support

investment, focusing on working with firstclass counterparties, minimising residual risk

and achieving strong returns on equity.

When asked if it is company policy to

continue down the share route, or look at other

forms of financing, Hatton said; We continue

to keep our options open at this stage. Wehave delivered an approximately 80% return

for our unit holders in the last 12 months and

the focus is on continuing to demonstrate

strong performance.

We continue to work on various initiatives

to improve our capital structure. This has been

helped by becoming compliant with our loan

terms at the start of the year and being listed

gives us a variety of sources of capital to

target. Getting the balance of sources of

capital right will be a significant determinant

in the success of the Trust, as it is for any

shipping business, he stressed.

Gearing reduced

He also said that the Trusts gearing ratio has

moved from 59% to 49% since the end of

2013, thus managing the relationship between

debt and equity in the business is an important

strategic driver.

The Trust has a variety of deals in place for

both technical and commercial management of

the fleet. Hatton explained that vessels that

remain leased out on long-term bareboat

charters are technically managed by therespective lessees, except in the case of the

TORM bareboat charters, where a third party

manager was engaged by TORM.

For the vessels employed on timecharters or

in a pool and revenue-sharing arrangements,

the Trust works with best-in-class technicaland commercial managers. The technical

managers include Columbia Ship Management

(Singapore) and Thome Ship Management

both of whom had helped the Trust drive

operational efficiencies across the fleet

without compromising on quality and safety.

Commercial managers, Teekay, Nordic

Tankers and HANSE Bereederung have helped

ensure improved rates on the redelivered

vessels, he explained.

Since 2013, we have adopted a new

approach to managing the commercial and

technical requirements of our business, which

has meant having to more carefully weigh the

value of spending more on shipmanagement

costs against achieving improving operating

results.

Our goal is to bring shipowner efficiency

by introducing the right kind of best practices

and standards so that the commercial and

technical sides of our business work together.

In terms of managing our operating expenses,

weve found that paying more attention to how

managers are operating the vessels allows us

to contain the unbudgeted side of costs but weare not merely saving, but saving wisely. In

some instances we might decide to spend a

little to save much more, Hatton said.

FSL Trust reaps the

benefits of strongmarketIn July, FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust

announced new period timecharter contracts for an Aframax and two MRs.

FSL Trust CEO Alan Hatton.

TO


20/52


INDUSTRY - SHIPMANAGEMENT

Starting at the top, last May, David

Price joined the Wallem Group as

managing director of Wallem Ship

Management.

Price has worked in all senior levels of

shipmanagement and has a high degree of

experience in technical management, manning,

procurement and quality and safety. He beganhis career in shipping as a deck officer,

leaving as a Master.

Wallem Group CEO Simon Doughty said at

the time of the appointment; Shipping is a

constantly changing world, and a very

competitive one, so to continue to deliver what

our clients and stakeholders want today and

predict their future needs, we have combined

the right people and expertise.

Wallem Groups growth plans include

increasing the commercial, technical and crew

managed fleets, introducing progressive toolsand systems to both the Group and clients,

building a strong logistics network in Asia,

and escalating commercial focus and activity.

In Europe, late last year, Wiebke Schuett

was promoted to managing director, Wallem

Europe. She is well known with Wallems

clients in her previous role in leading the fleet

personnel team in Europe.

Capt Deepak Honawar, a veteran of Wallem

Ship Management and former Wallem

seafarer, is leading the Wallem Singapore hub,

while Mingfa Liu joined Wallem Ship

Management in January 2015 as managing

director, Wallem Ship Management China - a

newly established role within the Wallem

Group.

Based in Wallems Shanghai office, he is

concentrating on the Groups relationships

with shipyards and drydocks in China, and

represents Wallems shipmanagement services

in the region.

Vijay Soman, who started his career as a

Wallem cadet, now leads the safety, quality

and insurance teams. He is an example of how

a seafaring career can grow into so much morewithin the same company, given the right

opportunities and development, Wallem said.

Capt Fared Khan is leading the fleet

personnel teams, which encompasses

recruitment, retention, crew welfare and

training, to deliver future-ready seafarers who

are professional, safety conscious and

dedicated to their jobs.

Ioannis Stefanou was appointed in 2014 to

lead the technical management business of

Wallem, delivering clients a reliable, qualityservice from the shipmanagement service hubs

in Hong Kong, Singapore and Europe.

A long-term Wallem procurement expert,

Mark Haslett continues to deliver Wallem

clients a reliable and value for money service

with Marine Buying Services (MBS), which

he offers to non-Wallem clients seeking

similar cost savings and quality.

Three new positions in the technical

management team were also recently

established to capture the expertise of senior

staff and focus them on the needs of clients -head of Dry Fleet Operations, head of Tanker

Fleet Operations and head of Car Carrier

Operations. The tanker head is Akhileshwar

Roy.

Wallem Ship Management now technically

manages around 122 tankers of which 18 are

VLCCs.

AMCL fleet

An example was the 10th and final VLCC,

which entered into the Groups management

from Associated Maritime Co (HK) (AMCL),

a member of the China Merchants Group, in

mid-February this year. The AMCL vessels

were taken under management under

BIMCOs Shipman contract commencing in

October, 2014.

Speaking at the time, Doughty said: We are

proud to be partnering with another strong

Hong Kong-based shipmanager. AMCL was

looking for a company which could offer a

good record in VLCC experience and had the

crewing pool to quickly take over the vessels.

In conversation with Price and director of

sales & marketing, Nigel Moore, TankerOperatorwas told that Wallem has

specifically developed the three

shipmanagement hubs - Hamburg, Singapore

and Hong Kong- and tankers can be managed

from any of these locations.

We aim to provide services either close to

the clients time zone or where the ships mostly

trade - it is our clients' choice, Moore said.

Price confirmed that there was a lot of

opportunity in Asia.

Price cited the case of Chinese owners

wishing to break into the tanker market where

Wallem could add value as a third party

manager by adding oil major approval to the

vessels.

It is not easy to set up a new venture, as oil

majors want a track record before giving the

vessels their approval, he said.

Another factor for oil majors is TMSA,

which once set up is a lot easier to

continuously improve. Price said he thought

there was a TMSA III in the offing next year.

The shipmanagement concern has created the

post of oil major relationship manager, who is

an ex BP employee.

Wallem has been managing tankers since

1971. The first third party managementcontract was for a brand new fleet of 10

product tankers for Gotaas-Larsen. We have

since developed a specialist team that focuses

Wallem sets its

stool outSince the end of last year, it has been the case of all change within the Wallem Groupwith various senior appointments announced.

Wallem Shipmanagements new MD David

Price.


21/52



not only on our owner's requirements but the

needs and demands of their charterers whom

must also be kept happy, Moore said.

As for training, Wallem runs tanker specific

courses at the groups main training centres in

Mumbai, Manila and also Qingdao, at which

the next generation of Chinese tanker crews

are being prepared.

With finance appearing to be easy to come

by today, Wallem is marketing its services to

the financial sector. Moore explained that

Wallem was among the first to manage

distressed assets from the banks by which the

group took over both the technical and

commercial management until vessels could

be upgraded, traded and eventually sold. The

vessels included product and Aframax tankers.

We continue to do this business along with

managing vessels for many of the traditional

tanker owners. In more recent times, we haveseen the advent of huge private equity

investment in shipping, which has been the

bigger game changer. This new category of

owner will, we believe, gravitate more to

independent shipmanagers like Wallem in the

future and away from related-party

shipmanagement companies, Moore said.

Critical mass, ie vessel numbers, has

always been quoted down the years as an

essential element in third party

shipmanagement. Moore agreed saying;

Critical mass is essential, even more so today

than in the past. With the ever increasing

legislative and compliance requirements, a

shipmanager must develop and maintain a

wide range of highly skilled staff along with a

huge knowledge bank and the systems to run it

all.

With a sufficient fleet size, we can deliver

what is required and at a reasonable cost to

our clients. At the same time, whilst Wallem is

big enough to provide economies of scale we

are not too big that we cannot provide a

tailored service to our valued clients, Moore

stressed.Price said that management fees had not

changed in 20 years and due to the raft of new

rules and regulations, shipmanagement

companies have had to bring in resources to

cope, leaving very little margin left.

He confirmed that he was looking to expand

Wallems shipmanagement sector organically,

but not at any cost. Only quality vessels and

managers would be considered.

Wallem also operates SeaSafe Marine, a life

boat maintenance service company, which

recently won its first fleet maintenance

contract to look after 20 drybulk carriers.

SeaSafe Marines current client list includes

companies from across the maritime sector,

including those operating tankers.

SeaSafe is described as an independent

lifeboat servicing and testing organisation

(ILSTO). It is an authorised representative of

major lifeboat and davit manufacturers, with

class and flag approvals.

Wallem Groups other third party services

includes marine buying services (MBS), which

delivers procurement services to third party

shipowners and other maritime businesses.MBS lowers operational costs by using

economies of scale derived from planned

project purchasing while allowing shipowners

to remain in control of all decision making,

Wallem claimed.

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22/52



Tanker Operatorspoke with Matt

Dunlop, Director Marine

Operations for the group about

managing a portfolio of vessels

and services in todays market.

V Group delivers a wide range of marineservices, including technical management,

seafarer management, technical support,

procurement and ship supply chain

management, including shipmanagement

specialists - V Ships.

It employs 2,500 people in 60 locations

worldwide and manages the recruitment of

around 38,000 seafarers. The group delivers

ship and crew management services to a

diverse fleet of about 1,100 vessels, including

crude, products, chemical and gas carriers,

plus many other types of vessels.

Specifically related to tankers, V Ships

manages 300 vessels (see table for tanker type

breakdown).

Dunlop explained that the group has a

global network of 18 shipmanagement offices,

located close to the clients and their clients, egcharterers and oil majors. By setting up this

system, V Ships can offer a bespoke service in

dedicated fleet cells, supported by back office

operations.

Not all of the offices manage tankers, as this

requires a different type of capability and

experience, as well as a good relationship with

the oil majors. V Ships has thus far set up

tanker operating centres in Singapore,

Glasgow, Limassol, Dubai, Montreal, Chennai,

Fort Lauderdale, Hamburg, Oslo, Nantes and

Rio de Janeiro.

We have a superintendent near to our

vessels wherever they trade providing ongoing

support, he explained. V Groups integrated

software package links everyone ashore and

afloat in a transparent and real time manner,

including the owners of the ships, the officesand vessels. It controls everything from the

vessel log and crew management to

provisioning, maintenance, cargo and financial

accounting.

Dunlop said that V Groups only assets are

its people. Our focus is to retain our

competent experienced shore and sea staff in

order to build a team, which delivers

performance assured. This reflects our

passion and commitment for delivering the

best possible service and generating the

highest possible return on assets 24 hours a

V. Group to keep

momentum goingToday, the V Group claims to be the worlds leading provider of maritime services to thecommercial shipping industry and has become an increasingly important

player in the energy sector.

Source - V Ships.


23/52

SHIPMANAGEMENT


day, 365 days per year.

Todays role requires absolute focus on safety and

compliance with the latest legislation and protection of the

environment. We must understand the owners needs and

priorities in a difficult trading environment. In todays world,

we see an increasing emphasis on transparency and the need

to operate under the highest ethical standards. This applies to

any vessel type.

One of the biggest challenges is the development of the

next generation seafarer and shipmanager, instilling traditional

standards in a modern electronic world. V Groups risk

management, regulatory compliance and IT capabilities are

key competitive differentiators in the industry supporting the

team ashore and afloat, he said.

Training centres

Training is undertaken through a variety of methods. Dunlop

explained that today, the safety culture of the ship and shore

operation drives safe tanker performance. With this in mind, V

Group has four training centres delivering Crew ResourceManagement courses to the IMO Course Model 1.39 -

Leadership and Teamwork standards. This investment will

quadruple our throughput of CRM trained officers in 2015.

We have our knowledge-based training course matrices,

which support TMSA compliance to the highest levels of

industry best practice; and we are excited about our new

liquid cargo training simulator, which has opened in our start-

of-the-art training centre in Manila, he said.

Dunlop continued by saying that this was a considerable

investment in the staff but the group doesnt stop with training

ashore, as every tanker is attended annually for 10-14 days of

on board training and independent safety inspections arecarried out by Seatec Safety Services. We do this to ensure a

strong and healthy safety culture is embedded as part of our

performance assurance to our clients and their stakeholders,

he explained.

He also claimed that the groups high standards for safety

and corporate governance also makes it attractive to financial

institutions. We maintain a dialogue with all the major

players in the market, he explained. In recent years, the

group has worked directly with banks to manage and dispose

of distressed assets. The groups global reach was essential to

them in some cases in order to respond to fluid situations in

different parts of the world.

We were also a safe pair of hands to take oversight of what

were often challenging vessels.We maintain those

relationships now and work to be recommended as a preferred

manager for mortgagees, he said.

The more recent rise in private equity involvement in the

market is something that Dunlop has identified and actively

targeted as an area for growth. These concerns are looking to

grow and need a partner who can support those plans with

adequate capacity and reliable service delivery, he said.

Critical mass

Down the years,critical mass coupled with a large portfolio of

vessels was said to reap benefits when purchasing goods andservices. Dunlop thought that this was still very important in

bargaining power. However, it is not about volume but how

you use that volume, he said. Proper planning of procurement


24/52



around key ports and ordering early where

feasible, are essential. He said that systems

and processes were also fundamental to

executing this strategy properly.

He explained that economies of scale can be

seen in warehousing, distribution, connectivity

with primary suppliers and quality of supplies

and services, including responsiveness to any

issues, which is of equal importance as cost.

With respect to crewing, the size of the

companys pool of over 26,000 positions on

board ship, allows it to absorb capacity

shocks, ie large numbers of vessels entering

management, which those having smaller

networks would be unable to manage.

He said that going forward, understanding

why shipowners and private investors

outsource is key to the future. These include -

Increased access to global labour market,

especially technical specialists. Allows shipowners to concentrate on their

core business.

Easier to benchmark operating costs.

Increased purchasing power through

economies of scale.

More flexible asset investment options -

easier to divest/invest.

Easy access to specialty services, eg

maintenance and repair.

Improved risk management.

A key characteristic of successful asset (ship)

management is consistently making sound

decisions and good compromises. It involves

carrying out appropriate tasks at the right time

and at the optimum level of expenditure.

Successful management requires the

commitment of top management and a

motivated workforce. Constant monitoring is

required with the recording of appropriate

asset information and management

measurement activity,Dunlop stressed. This

international standard relating to asset

management is the day job in V.Group!

If we can continue to focus and achieve the

above, third party shipmanagement does have

a future. Shipmanagement is a highly

competitive, tight margin business but it is

also a relationship business, built on trust andtransparency.

We will see greater consolidation amongst

marine service providers as the economics of

running a small to medium-sized operation

become less attractive and the bar to entry is

raised, he added.

The group offers a wide range of marine

services, which is another way to add value to

the groups clients when managing the vessel

running costs. They can also ensure that the

required quality standards are met. For

example, the group has a large and rapidlygrowing crew victualing business - Oceanic

Catering - which not only ensures seafarers are

fed at very competitive rates per person per

day, but also the huge investment in training

and systems, such as the new culinary centre

in Manila, means that the standard of food on

board is improved and the crew are kept

happy, as well as the owner. TO

Matt Dunlop, V.Group, director marine

operations.


25/52

INDUSTRY - COMMERCIAL OPERATIONS


CR Shipping & Logistics has alsoopened an office in Fujairah in a

co-operative venture with an

Omani concern, which has a

license to undertake agency services in the

area.

Risso explained that this move was part of

the companys global expansion programme,

which recently saw offices opened in both

Singapore and Hong Kong.

He said that it was the companys policy to

expand into areas, rather than go down the

acquisition trail, although there were severalstrategic joint venture agreements in place

worldwide. Further expansion plans are in the

pipeline.

Dubai joins Genoa, Singapore and Hong

Kong as a hub for their respective areas. For

example, the UAE office will market CRs

services to Qatar, Oman, Bahrain, Saudi

Arabia and Kuwait, plus India.

At present the Group operates in all

Mediterranean ports, Singapore, Hong Kong

and has further expansion plans in Asia,

Europe and the Americas.

CR was founded in 1946 in Genoa by the

current presidents father, but is now

headquartered in Monaco and has offices

throughout Italy, France, Spain, Slovenia,

Panama, Singapore and Hong Kong and now

Dubai. North Africa is also covered through

co-operative agreements.

The agency currently handles more than

4,000 ship calls worldwide. Almost any port in

the world can be served through the hubs or

by the joint ventures, as more and more

companies are demanding a worldwide agency

agreement with just one provider.Risso described the company as a boutique

ships agency/port logistics concern rather

than a conglomerate similar to the larger

service providers, thus providingtailor-made services to its

clientele.

After the considerable growth

achieved over the last 20 years,

starting in November 2013, the

company doubled its presence in

the Far East by launching the

Hong Kong branch, following the

strengthening of its Singapore

office, which provides full port

logistic services to vessels,

including cruise ships. Forexample, the Singapore branch

was started by just three people

but now boasts a staff of 15.

Tankers have formed a

significant part of the companys

service offering since the 1960s

and 1970s. The company started a

tanker broking arm in Genoa, but

has since decided to concentrate

on agency and port logistics.

Since the 1980s, CR has been

marketing its agency services to

traders, operators and charterers,

which have increasingly become

the tanker operator of today, rather

than the oil companies. Swiss-

based Vitol became one of CRs

first clients and is now a major user of the

companys services worldwide, having

become one of the worlds largest trading

houses.

Risso explained that many employees are

trained at a school in Genoa before being sent

out to work in CRs various offices

worldwide, including Singapore, Hong Kongand now Dubai.

Today, CR handles all types of tankers from

gas, fuel oil, through to crude oil carriers. The

company started with chemical tankers some

40 plus years ago as Italy was and to a certain

extent still is, a centre for chemical tanker

activity.

Full commercial management is offered,

including the provision of vessel disbursement

accounts, as CR operates an accounting

department.Next year, the family owned concern,

started by Giovannis father, will celebrate is

70th anniversary.

Boutique agency on

global expansionprogrammeNews that Monaco-based agency and logistics concern Cambiaso & Risso International

(CR) had opened new offices in Dubai on 1st July prompted Tanker Operatorto look into

the agency with the help of president and CEO Giovanni Paolo Risso.

CRs president and CEO Giovanni Paolo Risso.

TO


26/52


INDUSTRY - COMMERCIAL OPERATIONS

We have added All Supply to our

original name Mombasa Ship

Chandlers Ltd because we always

manage to find exactly what is needed whether it is pre-ordered or an emergency

supply, explained All Supply Mombasa Ship

Chandlers managing director, Mohammed

Muses.

The company is a second generation family

business headquartered in Mombasa, Kenya,

which has been a member of the International

Ship Suppliers and Services Association

(ISSA) for many years and is claimed to be

the only dedicated ship supplier in Kenya with

the ISSA quality mark.

The company sources foodstuffs bothlocally and abroad to ensure quality and highly

competitive prices. It works closely with a

strategic partner in the Nairobi fruit and

vegetable market to be able to guarantee the

highest quality fresh produce, processed and

packed in strict hygiene conditions, and it

imports a wide range of internationally-

recognised dry goods brands.

This ensures we can cater for the food

requirements of everyone, including all the

ethnic groups, on board all of the international

ships calling in East African ports, said

Muses. Our range is the most extensive in the

region and our facilities include a storage area

for 300 tonnes of temperature controlled and

100 tonnes of ambient goods just a kilometre

away from the port of Mombasa.

All Supply Mombasa Shipchandlers can

also handle everything from chemicals, gases

and fire and other safety items to any spare or

replacement deck and engine parts, which a

ship may require.

It is a key contact for vessels and shipping

agents for the supply of navigational

requirements, especially from the BritishAdmiralty Catalogue.

Its team of 40 will also organise any other

service requested including pest control,

diving and cleaning,

forwarding and

customs clearance, and

any medical orchauffeuring services

needed.

We are the local

agent for Merichem

Merigases and we are

able to offer refilling

services for all required

gases in under 24

hours. In addition, we

also have a stock of

exchangeable cylinders

which we can offer formore urgent orders,

said Muses.

The company has

also built a strong reputation in the petroleum

and lubricants sector enabling it to supply a

wide variety of these products very quickly.

Clearing & forwarding

The company supplies all deck, engine,

electrical and fire and safety items that are

required and has an international supplier base

for products that are not available locally. This

is backed up by an in-house clearing and

forwarding department, which ensures that all

shipments, including urgent deliveries, arrive

at the vessels in time.

We have always had a reputation for

quality service and highest business ethics,

and now our name also reflects the extensive

range of

Documents

Tnker Operator magazine 09-2015.pdf