The results of a 32-month research project into fatigue at sea were published. The project used simulators to assess the impact of fatigue on watch patterns for a tanker crew. It found that certain watch patterns carry an increased risk of sleepiness, which maritime unions say the shipping industry must address. The findings provide a scientific basis to demonstrate concerns about fatigue from work schedules that allow crews to work up to 91 hours per week. The research involved 11 partners and was partly EU funded. It provides a benchmark for understanding how watch systems influence fatigue levels.

1. TANKEROperator
MARCH 2012 www.tankeroperator.com
Incorporating the TANKEROperator Annual Shipping Review

3. Contents
Markets
04 Demand heading for a slowdown
News Profile
06 Shipboard fatigue - fact
US Report
10 Arntzen spells it out
Pipeline, or tanker?
30 STS Transfer
GAC enters Sri Lanka
LOI warning
32 Tank Services
IMO’s PSPC COT
Scanjet expands
ANNUAL REVIEW
Shipmanagement
14 InterManager gains
Inmarsat’s service bundle
AWT upgrades
Wallem goes for DNV
Chemical/Product Tankers
19 Low contracting a good sign
What’s in your tank?
Piracy
24 ISS’ solution
I We’ve been here before
CCTV protection
III How did it go wrong?
Technology X Top 30 Listing
26 26 Latest LPGC delivered XVIII Noboru Ueda Profile
XX Witherby changes tack
Front cover
Thomas Gunn is to supply an additional 43 Unicom-managed vessels with its outfit management service, bringing the total up
to 78 vessels, the bulk of the company’s fleet. The vessels will be supplied with both customised Russian Hydrographic Office
and UK Hydrographic Office charts and publications, in both digital and paper format.
March 2012 TANKEROperator 01

4. COMMENT
Fishermen shot dead- an accident just
waiting to happen
The alleged shooting dead of two Indian fishermen at least notes taken - to compare with the AIS.
off the Indian coast last month has thrown up a An Italian report issued in mid-February called for a ballistics
plethora of theories and counter theories as to what comparison. Unfortunately, the Indians who were shot and killed are
did actually happen. not to be given autopsies, as the Indian authorities refused.
The upshot was that the D’Amato managed Aframax Enrica Lexie was To help create a level playing field, C-Level Maritime Risks called
taken to Kochi where the armed guards on board were arrested and for armed guard regulations to have teeth. ‘If it is found that an armed
could be charged with murder. guard team has fired in error, that’s bad enough - but for it to remain
Although at the time of writing, it was early days following this quiet, that’s really much more condemnable. And self-regulation really
incident, the facts as stated by both the Italians and Indians do not add is not the way to go - it’s a necessary but not sufficient condition’, the
up, according to one US-based security concern. security company’s report said.
At the beginning, the Italians insisted that they were approached by a In conclusion, the report said that the IMO has to step in and start
boat that didn’t answer to warnings, including flares and radio calls (It adopting regulations with teeth - this is the wake-up call that has to be
has since been established that both were attempted, quoting a report noticed - otherwise more will die - and countries will again find
from Washington, DC-based C-Level Maritime Risks). themselves shoved into confrontations that no one wants, while pirates
Conflicting reports of the incident have been received from both profit from the confusion and the new reticence of guards to use their
sides. For example, the Italians insisted that the event occurred 30 miles weapons.
off the Kerala coast - at 12.30 hours Rome time - or 14,30 hours local Another US-based security concern told Tanker Operator a couple of
Indian time. And the Italian Navy reported the encounter first - before months before this incident occurred that there were many fishing
anyone else, including the Indians. vessels in the Gulf of Aden/Red Sea areas. The fishermen are mostly
For their part, the Indians insisted that the attack occurred at only 14 armed for their own protection, as they live by the gun in almost
miles off the Kerala coast - which they insisted was inside territorial lawless states. However, they pose virtually no threat to passing
waters. However, even if the distance was correct, the conclusion was shipping.
wrong. Territorial waters extend only 12 miles, while 14 miles is in UK-based marine safety concern, BCB International has called on
international waters. world leaders to rethink the self-protection measures used by
What was really confusing, said C-Level, was that the Indians claim commercial ships to ward off pirate attacks. The company said that it
that the attack occurred at 17.00 hours locally - a full 2.5 hours later had been warning for some time about the dangers linked with the used
than when the Italians said it occurred. of armed guards on commercial vessels.
Another anomaly was, if the Italian marine infantry are to be While accepting that the vast majority of armed guards protecting
believed, the description of the fishing boat from the Indians did not commercial vessels are extremely well trained and highly professional;
match the description of the boat they encountered. There were also the company said that there can be no room for human error when
conflicting reports on the number of fishermen seen on board the vessel lethal force is used.
and the number of bullets actually fired. We have also seen reports of naval units attacking innocent fishing
The official Indian story was that there are no pirates in the waters craft with fatal results. After all, in the Indian Ocean, pirate mother
off Kerala, which the security company said is ‘simply not true’. ships are often captured dhows, or large fishing vessels. How do you
Fishermen often approach a large vessel underway, as its wash churns tell the difference when put in a position where a decision has to be
up the surrounding sea and with it the fish. taken almost in a split second?
Following the reported incident, someone should have accessed the Was this particular incident caused by trigger happy marines, a shear
AIS tracks of the Enrica Lexie and the other ships in the vicinity and panic reaction, or a calculated attempt to ward off an attack? Both sides
compared them with the time and location of the Indian fishing boat. differ on this.
TO
The coastal radar of the Kerala Coast Guard should be recorded - or The P&I clubs must be tearing their hair out.
TANKEROperator
Vol 11 No 4 EDITOR SUBSCRIPTION PRODUCTION
Tanker Operator Magazine Ltd Ian Cochran 1 year (8 issues) Wai Cheung
2nd Floor, 8 Baltic Street East Tel: +44 (0)20 8150 5295 £195 / US$320 / €220 Tel: +44 (0)20 8150 5291
London EC1Y 0UP, UK cochran@tankeroperator.com 2 years (16 issues) wai@tankeroperator.com
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2 TANKEROperator March 2012

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6. INDUSTRY – MARKETS
Tanker demand
heading for a
slowdown?
During the middle of January, BP released its long term view
of energy markets to 2030.
lthough the outlook covers all would increase by a massive 23 mill barrels the Libyan pre-crisis total. Spain and Italy
A energy sources, for tanker
markets the emphasis obviously
is on oil. Gibson Research
highlighted several points from the BP
forecast that are closely related to the tanker
per day.”
This huge difference illustrates the
importance of technology combined with
government/consumer policies and the bearing
it will have on the tanker business, Gibson
have been the biggest European importers
from Iran in recent times.
It was also notable that France has gone
from zero imports in the fourth quarter of
2010 to average 76,000 barrels per day during
sector. said. the second and third quarters of 2011.
Most importantly, BP expects growth in On the supply side, growth in global liquids With Libyan crude exports now nearing pre-
global liquids demand of 16 mill barrels per demand is expected to be met primarily by crisis levels, by the time the ban is
day (oil, biofuels and other liquids) over the increasing OPEC production, which would implemented, Europe will be well placed to
next two decades, rising to 103 mill barrels rise by 12 mill barrels per day, with the largest switch supplies away from Iran.
per day by 2030. This compares with growth gains in NGLs and crude output from Iraq and Europe’s economic growth (or lack of it) is
of 19 mill barrels per day over the past 20 Saudi Arabia. also a major factor as demand is unlikely to
years, resulting in a slowing down, from an Perhaps worryingly for the tanker market, rise significantly during 2012, Gibson said.
average of around 1.2% per annum to 0.8% BP anticipates that the Americas will largely Should Europe require to source alternative
per annum. become energy self-sufficient by 2030, due to crude supply, Saudi Arabia is the obvious
However, a critical part of the outlook is strong growth in Canadian oil sands, Brazilian candidate to make up any shortfall. Saudi
that only 9 mill barrels per day is expected to deepwater projects and US shale oil, as well Arabia could supply any shortfall through the
come from crude oil, with the rest coming as US and Brazilian biofuels. Sumed pipeline taking up the capacity vacated
from biofuels, NGLs and other fuels Overall, these trends will have major by the loss of Iranian crude.
(including processing gains), Gibson said. implications for the tanker markets. Although Currently, Iranian exports to the Far East
China and India would account for more than at present the immediate threat for the currently represent about 60% of its crude
70% of demand growth, with consumption industry is tonnage oversupply, in the long run exports. Tougher sanctions on Europe will
rising by 8 mill barrels per day and 3.5 mill factors such as slowing demand, simply mean more crude will go east. India
barrels per day, respectively. Demand in environmental concerns, fuel efficiency and and China will cite economic reasons for their
OECD countries is likely to fall by 6 mill technological advances will be among the reliance on a continuous supply, as their
barrels per day. main drivers that will shape the future of the economies continue to grow. As a further
Faced with a difficult task of projecting so oil markets and with it, demand for tanker inducement, Iran may offer crude at
far ahead, BP’s outlook is based on the transportation, Gibson concluded. discounted prices in order to ensure that
assumption of accelerating current trends in exports continue to their largest customers in
the energy sector, such as a drive for cleaner Iranian exports Asia.
energy and greater fuel efficiency. Turning to Iran, the recently announced After 1st July, the political focus will turn
For example, in the transport sector, European ban on imports of Iranian crude oil east as the US and Europe attempt to ramp up
“…..efficiency of the internal combustion due to come into force on 1st July could mean more pressure on India, Japan and South
engine is likely to double over the next 20 a significant shift in crude oil movements. Korea to join the ban. Turkey will also come
years,” BP said. This incorporates that Exports of Iranian crude into Europe under pressure as it is the fifth largest
“…sales of conventional passenger vehicles, increased during second and third quarters of importer of Iranian crude. In the US, tougher
accounting for nearly 100% today…” will 2011, partly as a direct result of the loss of 1.3 financial sanctions are already on the agenda,
decline to a third of total car sales by 2030 mill barrels per day of Libyan crude during Gibson said.
and that sales of hybrid cars will dominate. the civil war. Several tanker operators have already stated
However, BP cautions that if there are no Gibson calculated that Iran currently their intention of not loading at Iranian
changes to fuel efficiency, car usage and use exports around 0.7 mill barrels per day into terminals, including Tankers International
TO
of alternatives, “oil demand in road transport the European refinery system, almost half of and Frontline.
04 TANKEROperator March 2012

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8. NEWS FOCUS - PROJECT HORIZON
Shipboard fatigue now scientifically
recognised
The results of a 32-month, part
EU funded, 11 - partner research
project into fatigue at sea have
been published.The project clearly
demonstrated that certain ship watch patterns
carry an increased risk of sleepiness, which
should serve as a wake-up call to the industry,
a leading maritime union official said at the
recent launch of its findings.
One of the project’s partners, Anglo-Dutch
maritime union Nautilus’ senior national
secretary Allan Graveson said the union
welcomed the results and urged the shipping
industry and those who regulate it to act on
the findings.
”Nautilus welcomes this research, which
provides detailed scientific support to
demonstrate the validity of our concerns about
fatigue at sea. No other safety-critical industry
would allow key personnel to regularly work
up to 91 hours a week and this study offers The participants were wired up to monitor fatigue levels.
the opportunity to move to methods of
working that are based on science rather than
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06 TANKEROperator March 2012

9. INDUSTRY – PROJECT HORIZON
socio-economic grounds.
“The shipping industry and those who regulate it cannot afford to
closed gauging
ignore these findings,” he said.
He was speaking of ‘Project Horizon’, the findings of which have
provided a first benchmark for understanding and predicting how
different watch systems influence the level of fatigue, or sleepiness of
ship’s officers.
The research project brought together academic institutions and
shipping industry organisations (see table), with specialist input from
some world-leading transport and stress research experts.
It made pioneering use of bridge, engine room and cargo simulators
simultaneously to assess scientifically the impact of fatigue in realistic
seagoing scenarios that would be encountered on board a 40,000 dwt
products tanker undertaken two return voyages between Fawley in the
UK and Rotterdam - a total trip of seven days.
During the simulated vessel’s laden leg, two grades of cargo were
carried in order to test the shipboard personnel in the simulated cargo
loading and discharge operations room. The cargo tanks were ‘fitted’
with an inert gas system.
In total, 90 experienced deck and engineer officer volunteers
participated in rigorous tests at Chalmers University of Technology in
Gothenburg (50 persons) and Warsash Maritime Academy at
Southampton Solent University (40 persons) to measure their levels of
sleepiness and performance during the most common watch keeping
patterns – four hours on/eight hours off (4/8) and six hours on/six hours
off (6/6).
Some of the Gothenburg-based volunteers were also exposed to a
‘disturbed’ off-watch period, reflecting the way in which seafarers may
experience additional workloads, as a result of port visits, bad weather,
or emergencies.
The HERMetic UTImeter
Basically, Chalmers simulated the standard three bridge
Gtex is a portable electronic
watchkeeping scenario of four hours on and eight hours off and a
‘disturbed’ 6/6 watch whereby deck officers were in a state of 18 hours level gauge for closed gas
continuous wakefulness. tight operation.
Professor Mike Barnett, associate director (research) at Warsash
Maritime Academy, Southampton Solent University, explained that The unit is used for custody
Warsash simulated both deck and engine room undisturbed 6/6 routine transfer, inventory control measurement and
linking the simulators. The cargo control room simulator was used
free water detection on marine vessels.
while the ‘vessel’ was in port. Both voyages between Fawley and
Rotterdam were simulated to be as realistic as possible, including a Connected to a HERMetic vapour control
pilot coming on board. The intake of caffeine was regulated by only valve, the UTImeter Gtex avoids any gas
allowing four cups of coffee per day and no alcohol was allowed release during operation and enables 3
during the experiment. The two round trips were then compared. measurements in one single operation:
Participants came from many countries and were taken from all age ullage, temperature and oil-water interface
groups and both male and female junior officers were used, all acting
level measurement.
as 2nd or 3rd Mates, as solo watchkeepers, or 2nd or 3rd Engineers for
engine room duties. Those in the cargo control room simulator had By increasing safety and efficiency,
some tanker experience and from which communications traffic was Honeywell Tanksystem helps customers
simulated, such as when undertaking bunkering operations in port. improve business performance.
In addition, there was a Chief Officer and an AB on call, but they
were not present on the bridge during the watches. The deck officers
were not allowed to use an ECDIS and had no alarm systems to help
them. A chair was placed on the bridge to see if the watchkeepers
would use it with mixed results.
Key findings showed the most marked sleepiness detected was in the
6/6 team where at least one occurrence of falling asleep on watch was
detected among 45% of officers on the midnight to 6 am watch and
there was also one occurrence for about 40% of those on the midnight
to 4 am watch in the 4/8 group.
For more information visit our website
Watchkeepers were found to be most tired both at night and the
(continued on p9) www.tanksystem.com or call +41 26 919 15 00
© 2012 Honeywell International, Inc. All rights reserved
March 2012 TANKEROperator

10. INDUSTRY – PROJECT HORIZON
The two simulated voyages with the different watches.
Project ‘Horizon’ Key findings
At least one occurrence of sleep was observed between the watch systems and at night and in the afternoon and sleepiness
detected among 45% of officers in the 6/6 depending on whether off-watch periods were levels were found to peak towards the end of
team working the 0000-0600 hrs watch at disturbed or not. Overall sleep duration for night watches.
Chalmers and one occurrence for about 40% those on the 4/8 pattern was found to be The 6/6 regime was found to be more
of those on the 0000-0400 watch in the 4/8 relatively normal, with around 7.5 hours per tiring than the 4/8 rotas and ‘disturbed’ off-
pattern. day for those in Team 1 at Chalmers and watch periods were found to produce
At Warsash, where the watchkeepers about 6 hours for Team 2 at Warsash. significantly high levels of tiredness.
remained undisturbed in their off-watch rest Participants working 6/6 watches were In both watch systems, the disturbed off-
periods, the number of occurrences of found to get markedly less sleep than those watch period was found to have a profound
sleeping on watch for officers on the 6/6 on 4/8, and data showed a clear ‘split’ effect upon levels of sleepiness.
pattern varied and was up to more than 20% sleeping pattern in which daily sleep on the There was evidence that routine and
on the 1800-0000 watch. 6/6 pattern was divided into two periods — procedural tasks could be carried out with
Such incidents of sleeping on watch were one of between three to four hours and the little or no degradation, while participants
found within both watchkeeping patterns, and other averaging between two to three hours. appeared to find it harder to deal with novel
they mainly occurred during night and early Reaction time tests, carried out at the start ‘events’, such as collision avoidance or fault
morning watches. and end of each watch, showed clear diagnosis, as the ‘voyages’ progressed.
Participants in all the groups reported evidence of performance deterioration – and Researchers also noted a decline in the
relatively high levels of subjective sleepiness the slowest reaction times were found at the quality of the information being given by
on the KSS scale, which got higher towards end of night watches and among those on the participants at watch handovers as the week
the end of a watch and the end of the week. 6/6 patterns. progressed.
Varying degrees of sleep loss were Watchkeepers were found to be most tired
08 TANKEROperator March 2012

11. INDUSTRY – PROJECT HORIZON
afternoon while sleepiness levels were found to peak towards the end
of night watches.
Participants were performance tested using a hand held computer
(PVT) when they came on watch and then again when they went off
watch.
Performance deterioration
Reaction tests carried out at the start and end of each watch also
showed clear evidence of performance deterioration – the slowest
reactions were found at the end of night watches and among those on
the 6/6 patterns. Routine and procedural tasks were able to be carried
out with little or no degradation, but participants appeared to find it KROHNE Skarpenord
harder to deal with novel ‘events’, such as collision avoidance, or fault offers complete solutions
diagnosis, as the ‘voyages’ progressed.
It was found, however, that the deck and engineering teams for monitoring of liquids
developed a good working relationship. Social interaction was onboard all kinds of ships
encouraged as was deemed very significant. It was thought that fatigue
would reduce peoples’ interaction with each other.
Researchers have used the data to develop a new fatigue
management toolkit – Fatigue Risk Management Systems - for use by
shipowners and managers, seafarers, regulators and others, to help
arrange working schedules to mitigate risks to ships and their cargoes,
seafarers, passengers and the marine environment. It is hoped that
these can be used as part of the Safety Management System (SMS)
within the ISM, Professor Barnett said.
It is hoped to develop a crisis management project, which will look
at how to manage fatigue in difficult circumstances. For this project,
senior officers, such as Masters, Chief Officers and Chief Engineers,
will take part.
Project Horizon partners
Warsash Maritime Academy, Southampton
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Solent University – co-ordinator.
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European Transport Workers’ Federation,
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March 2012 TANKEROperator

12. INDUSTRY - US REPORT
US tax- Arntzen
spells it out
On 21st February this year, Morten Arntzen president and CEO of the Overseas
Shipholding Group (OSG) gave a testimony to the US House Ways and Means
Committee Subcommittee on Oversight and the House Ways and Means Committee
Subcommittee on Select Revenue Measures Hearing on Maritime Tax Issues.
n a speech championing the ‘American capital, have greatly improved the flow of fleet of merchant vessels, registered in certain
I Shipping Reinvestment Act of 2011’, he
said that the US maritime industry was
critical to the country’s economic well-
being its homeland and national security.
A recent PricewaterhouseCoopers (PwC)
cargo, resulting in virtually seamless
movement of goods from origin to destination
anywhere in the world.
The US-flag industry also continues to
invest in the expansion and modernisation of
foreign nations, that are available for
requisition, use or charter by the US
Government in the event of war or national
emergency.
study for the Transportation Institute about the the fleet. For example, during the past year US fleet depletion
US domestic maritime industry found that the OSG took delivery of the last of 12 Jones Act However, a 2002 study commissioned by the
industry overall contributed more than $100 ships constructed by Aker Philadelphia Department of Defense and performed by
bill in economic output to the domestic Shipyard, a huge investment that created professors at the Massachusetts Institute of
economy and employed nearly 500,000 thousands of US shipbuilding jobs and will Technology found that the EUSC fleet
workers. create thousands more relating to the vessels’ dropped by 38% in terms of numbers of ships
Today, there are more than 40,000 vessels operation, maintenance, and commercial use. and nearly 55% in terms of deadweight
These newbuildings tonnage between 1986 and 2000. Today,
represented the largest OSG’s ships constitute a critical component of
commercial shipbuilding the EUSC fleet.
order since World War II. Despite the successes of the US maritime
OSG also has made industry and notwithstanding the critical role
substantial investments in US shipping companies play in the US
its US-flag international economy and national defence, they face
fleet, which has been severe competition and challenging market
described by the conditions. Moreover, as a highly capital-
Department of Defense’s intensive industry, the companies have very
US Transportation substantial funding needs.
Command as “a vital “US shipping companies simply cannot
element of our military’s thrive if we are burdened with tax code
strategic sealift and global provisions, which do not apply to other US
response capability.” corporations, or if access to capital,
These investments help to particularly our own earnings, is impeded,”
sustain a US shipbuilding he warned.
industrial base, a pool of A recent Lexington Institute study on the
American seafarers and a contributions of the domestic maritime
fleet of US-flag vessels industry to US security found that ‘the
for time of war, or greatest danger to the role and function of the
national emergency. US as a seafaring nation is the decline of its
OSG and the US maritime industry and merchant marine.’
maritime sector also play
a key role in maintaining a Antiquated provision
OSG’s Morten Arntzen.
vibrant US-owned He explained that his testimony focused HR
in the domestic maritime fleet, comprised of international shipping fleet, which may be 1031, the ‘American Shipping Reinvestment
some of the most technologically advanced called into service for our nation’s defence. Act of 2011’, which would correct an
vessels and other assets in the world. American-owned companies’ international antiquated provision in current law that
The technological advances, which have ships are part of what is thus the ‘Effective singles out US shipping companies for less
resulted from that massive commitment of US Controlled Fleet (EUSCF)’ that is, the favourable treatment than other US businesses
10 TANKEROperator March 2012

13. INDUSTRY - US REPORT
and impedes access to their own earnings. As (ASRA) would repeal Section 955 and allow shipbuilding, seagoing and related trades.
a result, that flaw in the tax code has impeded US shipping companies to bring home pre- More generally, by freeing up needed capital
shipping companies like OSG from having 1987 earnings that are stranded overseas by for the maritime sector, the legislation will
access to their own capital, funds that affording US shipping companies the same tax provide an immediate economic boost in the
otherwise could be used in the US. treatment on those earnings as the 2004 Act short-term, while creating lasting benefits for
By way of background, as a general rule, already extended to all other US corporations the economy in the long-term.
US corporations are allowed to defer US with foreign subsidiaries. For all those reasons, ASRA has earned
taxation on their foreign subsidiaries’ income. Enactment of ASRA will allow US shipping broad, bipartisan support in the House and the
Over 30 years’ ago, in 1975, Section 955 was companies to be treated the same as all other Senate.
added to the Internal Revenue Code. This companies were treated in the JOBS Act, It is also supported by US maritime labour,
provided that US shipping companies could giving them the ability to redeploy funds US shipyards, state maritime academies and
defer immediate taxation on their foreign currently stranded abroad for use here at US shipping companies.
subsidiaries’ earnings from shipping home. “We in the maritime sector look forward to
operations only if those earnings were ASRA will help US shipping companies working closely with the chairmen and
reinvested abroad in qualified foreign shipping make investments in the US-flag fleet, as well members of the Oversight and Select Revenue
assets. as vessels that support homeland security and Measures Subcommittees to ensure prompt
The Tax Reform Act of 1986 made matters the military. ASRA also will help create and passage of this important legislation,” Arntzen
even worse by ending deferral altogether for sustain thousands of American jobs in the concluded. TO
shipping income earned by foreign
subsidiaries of US shipping companies, even
if reinvested in foreign shipping assets. This
loss devastated US shipping over the next two
decades.
Over time, Congress recognised the extent
of that damage. To help revive US shipping, for Chemical/Product Tankers
the American Jobs Creation Act of 2004
(JOBS Act) restored deferral for shipping
income. This change strengthened OSG’s
THE tank coating system for carrying
balance sheet and allowed the company to
embark on the largest US shipbuilding effort
CPPs, PFADs, Methanol, and Bio-Fuels.
since World War II.
That 2004 law also lowered the tax barriers
Rely on MarineLine® 784
that prevented US companies, which did tank coating to handle a
business internationally from bringing foreign
earnings earned prior to 2004 back for
wide range of cargoes carried
investment in the US. However, because the by chemical and product
JOBS Act failed to address the problems tankers. MarineLine® 784
created by enactment of Section 955 30 years’
earlier, shipping companies could not benefit offers enhanced corrosion
from those lowered tax barriers. resistance compared to
As a result, US shipping companies were
denied an opportunity that the JOBS Act phenolic epoxies or zinc
afforded all other US corporations and the silicates, at a similar cost. It
foreign earnings reinvested in foreign shipping
assets before 1987 remained stranded abroad.
is faster and easier to clean,
Because Section 955 remains law, US with higher cargo purity.
shipping companies still must maintain
investments in foreign shipping assets made Advanced Polymer Coatings
decades ago, pre-1987. Any net decrease in Avon, Ohio 44011 U.S.A.
those investments results in an immediate tax.
This vestigial quirk in the tax law has
caused capital of US shipping companies to be
left offshore, effectively preventing those
companies from investing their earnings back
into the US economy.
Legislation is needed to fix this problem for
US shipping companies and allow those
companies to redeploy their pre-1987 earnings
in the US. +01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com
The American Shipping Reinvestment Act
March 2012 TANKEROperator 11

14. INDUSTRY - US REPORT
A long arm for
shipping’s ‘invisible
hand’
On 7th February, 2012, business journalist Joe Nocera published in the Op-Ed pages of
The New York Times an opinion piece entitled ‘Poisoned Politics of KeystoneXL’*.
his article argued that given the with international flag market interest, any assumptions for building economic models
T Obama administration’s decision
not to approve the Keystone XL
pipeline (a politically and
environmentally charged decision in an
election year), the Canadian government has
prospects over this border trade were until
now fully indifferent: oil from Alberta could
be transported via continental pipeline, very
economically once the pipeline was installed,
to the Gulf of Mexico without ever touching a
and market projects. Selling (and
transporting) Canadian oil across the ocean to
China instead of to the US, and having the US
import oil from countries located further apart
than next door Canada clearly is not the most
actively been seeking alternative buyers for tanker; it will never pop the cork off of a efficient trade. As it turns out, in the market
the oil extracted from their tar sands; namely, champagne bottle! (for owners active in the place there might be considerations that
they have been cultivating buyers in China Great Lakes shipping, of course, the supersede economic efficiencies; in this
through a recent trade mission headed by the commodity trade between Canada and the US instance, environmental and political concerns,
Canadian Prime Minister. is still a viable market). whether for good or bad reasons, guide the
The Keystone XL pipeline was supposed to If Chinese prove to be substantial buyers for market place toward a certain direction and
pour oil from Alberta, Canada, to the US Gulf the oil from the Canadian tar sands, logically toward the benefit of shipping.
refineries where it could be processed and tankers will be involved in transporting oil There is little doubt that shipping is an
consumed in the US. The pipeline project was from the west coast of the North American industry driven by a multitude of variables and
rejected partially on concerns about its impact continent to China. Obviously, this is inputs, including financial, fiscal, monetary,
per se on the environment and partially on an inspiring news for shipping, and the tanker geo-political, sovereign, social, environmental,
orchestrated effort by environmental groups owners in particular. Almost like a deus ex regulatory and technological factors. In turn,
that perceive oil production from tar sands to machina intervention, a new trading route each of these factors is the product of several
be highly energy-demanding and effortlessly appears on the globe map and the additional sub-variables and minor nuisances;
environmentally dirty as to deserve a boycott tonne/mile demand automatically perks up. and, some of these variables may be correlated
at any point of the chain from investment in It’s still premature to figure out what type of to some extent or possibly be fully
tar sand projects to production, transportation tankers will benefit most from such trade, but independent. Any decent economic model of
and consumption. an educated guess may be that oil will be the industry about future projections has to
Of course, the counter-argument will be transported from Middle East to west coast deal with most, if not all, of such inputs.
about the overall carbon footprint if the US/Far East in VLCCs or Suezmaxes, which The $60,000 question becomes, however,
Chinese end up buying Canadian oil and the then would proceed in ballast condition to how one treats the ‘long tail’ of all these
US sources oil from countries more remote Canada to load tar sands oil for China variables? There is a small probability that
than Canada (like Venezuela, West Africa, or discharge and then proceed in ballast to each of these variables can vary widely.
Middle East). Middle East to load again. Whether some of the approximately 120
The economic benefit and the potential VLCCs still on order will be delivered later
environmental impact of the pipeline aside, a Triangulation than scheduled, or cancelled altogether may be
shipping executive’s mind has to focus on the Clearly such triangulating schedule reduces a small aberration that an economic model can
economic benefit from the disproving decision the ‘ballast leg’ of the overall trip, as tankers tolerate.
of the pipeline on the maritime industry alone. crossing westbound the Pacific Ocean are in On the other hand, if Canada finds in China
Canada is an extremely stable country and a laden condition. It’s still very premature to buyers for all the oil supposed to be
staunch US ally, and traditionally, most of the determine that the above scenario will transported to the US by the Keystone XL
Canadian oil and mineral commodities find a eventually play out as such, or if it will serve pipeline (830,000 barrels per day), then
big market in the US. No doubt, it makes as a catalyst for a market recovery from the potentially a VLCC will be required to load
great economic sense: a bankable and current slump in the tanker freight rates. For almost every two days; the impact on the
insatiable consumer market located close to instance, the pipeline may still be approved market, the low likelihood of such scenario
the producer country along a peaceful border next year once presidential elections in the US notwithstanding, can be much more
sharing same institutional principles (unlike are out of the picture after November 2012. meaningful, as 25 VLCCs (about 4% of the
‘buying oil from people who hate us’). Economic efficiencies and rational decision entire world VLCC fleet) will be required to
But, from a shipping executive’s perspective, making in the market place are the major service such trade.
12 TANKEROperator March 2012

15. INDUSTRY - US REPORT
High probability events sustain the
direction of the market, but it’s usually low
probability events that act as catalysts and
‘game changers’. It’s the events that seem
Transas supplies MMA with
initially infinitesimally improbable that
change the markets and can be a blessing, or a
a full mission simulator
boon to market participants. As the CEO of Massachusetts Maritime Modern navigation systems installed on
Goldman Sachs mentioned once, ‘I spent 98% Academy (MMA) recently hosted the bridge, include an integrated navigation
of my time worrying about 2% probabilities’. an opening ceremony for the system (INS), dynamic positioning systems
Shipping, an industry well known for its American Bureau of Shipping (DP2), ARPA/Radar multifunction displays,
volatility has, time and again, shown that low Information commons building. and ECDIS, all meeting the latest
probability factors outside the industry can The 42,000 sq ft building houses the international maritime regulations.
very well create or destroy value in shipping. Academy’s new full mission ship simulator, The full mission simulator is in addition
It seems that the cancellation of the Keystone supplied by Transas USA. to the Transas Navi-Trainer Professional
XL pipeline may be poised to create such It combines maritime tradition with the 5000 simulator systems already installed at
value for the shipping industry. TO latest technology in maritime training, MMA. It can operate either independently,
including the campus library, museum, or in joint exercises across campus for
archives, model ship collection, plus hi-tech multi-vessel scenarios, with the existing tug
* This article was written by Basil M simulation facilities, multimedia ‘smart’ bridge and electronic navigation laboratory.
Karatzas, chief executive of Karatzas classroom, and resource centres. As one of the US’ six state maritime
Marine Advisors & Co, a shipping The new simulator and its support areas academies, Cape Cod located MMA claimed
finance advisory, vessel appraisal and include a full mission, 360 deg bridge to balance a unique regimental lifestyle with
vessel brokerage firm based in simulator, debriefing room, instructors a typical four-year college academic study
Manhattan. Karatzas may be contacted control room and an ante room. course.
at info@BMKaratzas.com, or at +1 713
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March 2012 TANKEROperator 13

16. INDUSTRY - SHIP MANAGEMENT
Industry association
goes from strength to
strength
InterManager, the international trade association for the shipmanagement
industry, has started 2012 with a bang.
n the first month of this year,
I
cargo, freight and logistics. Certificate of Fellowship at the annual general
InterManager welcomed two full Each of the marine teams works closely meeting of the North West England & North
members – shipmanagement companies with an international network of maritime Wales Branch of The Nautical Institute in
Histria and Green Wave – and two lawyers, marine surveyors, investigators and Liverpool on 16th February.
associate members – international law firm loss adjusters to provide the complete marine Rear Admiral JS Lang FNI, chairman of the
Hill Dickinson and crew communications legal service 24/7. council’s fellowship committee, said:
provider SMART Link. Hill Dickinson’s enrolment enables “Fellowship of The Nautical Institute is
Histria Shipmanagement manages a fleet InterManager to reacquaint itself with former only awarded to those who have made a
comprising nine modern fuel efficient 41,000 member Ian Maclean who has now moved to significant contribution to nautical science,
dwt oil/chemical tankers, including two Hill Dickinson having previously been with the nautical profession and/or the objectives
newbuildings under construction at Constanta Ince & Co. of the Institute.”
Shipyard. Future plans include the building of Philippines-based SMART Link provides
two 50,000 dwt shallow draft, high cubic, fuel satellite communication for the maritime KPI seminars
efficient eco-design oil/chemical tankers industry with an estimated 120,000 active A series of workshops is being held to
scheduled for delivery in 2013. subscribers. Backed by telecommunication promote the InterManager-led KPI
Formed in 1992, the shipmanagement company SMART Communications Inc, Association’s system of measurable standards
concern is part of the Histria Group, which SMART Link serves seafarers in the for the shipping industry.
encompasses a network of companies engaged Asia/Pacific region, Indian Ocean, Middle InterManager is using the workshops as a
in shipmanagement, chartering, operation, East and parts of Europe and America and is means of communicating a better
crewing, repairs and upgrading, technical installed on some 7,500 vessels. understanding of how the measurement system
maintenance and safety at sea for a growing works, including explanations of the
fleet of tankers, bulk carriers and general IMO representative performance indicators being used and the
cargo vessels ranging from 3,000 dwt to Building on this momentum, InterManager has process of collecting data.
164,000 dwt and totalling an aggregate of appointed Capt Paddy McKnight to the role of For example last month in Singapore,
more than 650,000 dwt. its IMO permanent representative. InterManager secretary general Kuba
The Romanian-based concern was among The organisation was previously represented Szymanski, together with vice president
the first European shipping companies at the IMO by Svein Sorlie of Wilh George Hoyt and Markus Schmitz, managing
awarded the International Safety Management Wilhelmsen Holding, who has now retired director of SoftImpact, led the first full day
Certificate IMO A 741(18) by Germanischer from shipping. workshop which was held at the offices of V
Lloyd in October 1997. The company has On leaving the RN, he spent 15 years as the Ships - courtesy of V Ships Singapore
recently updated and restructured its integrated UK representative at The Japanese managing director, Capt Satnam Kumar.
management system to give added value to its Shipowners’ Association (JSA), which entailed Szymanski said: “This is a good opportunity
capabilities to manage a modern fleet. interaction with all the leading shipping trade for us to talk to current and potential users of
Green Wave Shipping is a Singapore- organizations, as well as the IMO. the KPI system and explain the benefits first
registered company managing a small fleet of In particular, he was a member of the hand as well as addressing common
modern stainless steel chemical tankers. The shipowners’ delegation throughout the genesis misconceptions. It is also good to hear actual
company is a subsidiary of Koyo Kaiun Co. and development of the Maritime Labour users of the system explaining how they are
Hill Dickinson’s international marine, trade Convention at the ILO in Geneva. benefiting from it and have them share their
and energy practice comprises more than 100 In another move this year, InterManager experiences with the wider industry.”
dedicated marine legal experts based in president Alastair Evitt, has been made a In addition, InterManager has established an
London, Piraeus, Singapore, Liverpool and Fellow of The Nautical Institute (FNI). Asia-based KPI support network to enable
Manchester. The practice comprises four Evitt, managing director of Meridian Marine users to share best practice and other
TO
teams – yacht, shipping, commodities and Management, was formally presented with his information.
14 TANKEROperator March 2012

17. INDUSTRY – SHIPMANAGEMENT - COMMUNICATIONS
Frontline opts for
Inmarsat’s new
service bundle
A major tanker company has claimed to have overcome the increasing complexity and
cost of communications by opting for a complete switching system.
rontline, the world’s largest tanker XpressLink system. VSAT is used when inside “Most shipowners are not at the point where
F owner in terms of tonnage, is to
enhance its ship/shore
communications network by
installing Inmarsat’s new offering XpressLink
on more than 100 vessels in its fleet, including
the coverage, however, when outside the
coverage area, or the VSAT signal is lost,
communication is automatically switched to
FleetBroadband and back again when the
VSAT returns online.
they are taking ‘all singing all dancing’
complete solutions. Like in all markets, there
are the leading edge adopters, as well as the
more standard shipowner who is content with
the basic product,” Coles said.
the newbuildings. Coles said that shipowners were Langva said that with fixed annual costs, he
“We evaluated the providers and made a increasingly looking for redundancy and saw the possibility of savings with a large
purely commercial decision about XpressLink communications reliability. “In the past they fleet, especially with the increased need for
from Inmarsat,” said Kjell Langva of Frontline have been happy with one service, but today communications. He explained that Frontline
Management in Norway. “The choice was they can’t take the risk,” he said. “We Management also looks after vessels in the
made after a year of positive experience with (Inmarsat) are in charge of the service Knightsbridge, Golden Ocean, Ship Finance
VSAT from Ship Equip”. reliability to deliver a cost-effective service.” and Sea Tankers’ fleets, among others.
“The cost-benefit profile and the unmatched For a fixed low cost, XpressLink provides The installation of XpressLink on
failover capability, which offers unlimited vessels worldwide with access to both Ku- Frontline’s vessels will commence
usage on Inmarsat FleetBroadband, were key band VSAT and L-band FleetBroadband immediately and continue throughout 2012.
to the decision. Also Inmarsat’s ability to services in a bundled package – with a Langva explained that most of the
deliver made up the additional element in guaranteed free upgrade to the 50 Mbps installations/upgrades will take place while the
making the choice,” he said. capability of Inmarsat’s Ka-band Global vessels were in port, such as Singapore, which
“With XpressLink’s internet and voice Xpress when the service becomes operational is a favoured destination. “Satcoms installation
services, communications on board the vessel in 2013. is not a big job, as the crew can prepare the
will be greatly enhanced, supporting “Ka-band is a game changer from a speed vessel before an Inmarsat technician comes on
operations and improving overall efficiency. It perspective, introducing truly high speed board for a few hours,” he said.
also allows the crew to stay in touch with broadband over satellite. It is a VSAT service In a recent presentation, Coles said that in
family and friends and handle their personal and will replace slower KU services currently the future, companies will be able to use the
affairs, at a very low cost, which has been an being offered,” Coles explained. communications available to transfer more
important issue for Frontline,” said Langva. data for much the same cost.
Service choice For a tanker using anywhere between 10 GB
Driving force Turning to FleetBroadband as a standalone and 40 GB per month, a bundled solution was
Langva explained to Tanker Operator that product, Coles said that Inmarsat continued to more cost effective that a ‘pay as you go’
Frontline uses the ‘always on’ option as the see high take up of FleetBroadband from new solution, he said.
crew’s recreation was the main driver of the customers, as well as those migrating from With the new Global Xpress ka-band
whole project. “The crew is the most older generation technology and competitor service due to be launched in 2013, tiered
important element of success when competing products that are not as reliable. pricing will be offered for the amount of
with other shipowners,” he explained. He also explained that some of Inmarsat’s bandwidth used per month allowing operators
Frank Coles, president, Inmarsat Maritime, customers go straight for an ‘always on’ a choice. Coles said; “It will depend on how
said. “The contract with Frontline is a service, while others opt for a choice of much data needs to be transmitted and how
landmark agreement for XpressLink. This is a services. “The need for ‘always on’ is not much the vessel operator is willing to pay.
significant endorsement by the world leader in always there from a (shipowner) business There will be a certainty of costs at each
crude oil shipping. It confirms that we have a perspective,” he said. level.”
highly-competitive product, offering excellent Coles said that there was some cost synergy The average plans will be between 10 MB
value for money and with the right focus on for larger fleets, but it was also true to say up to 5 GB, but an operator can negotiate
delivering reliable high-speed broadband costs depend on the type of service required. more if he or she needs it, he explained.
through a combination of L-band and VSAT “If a customer wants fast internet broadband Global Xpress will offer downlink speeds of
services.” of course it will be more expensive than up to 50 Mbps, and up to 5 Mbps over the
Switching is an integral part to the simple email. uplink, from compact user terminals. TO
March 2012 TANKEROperator . 15

18. INDUSTRY – SHIPMANAGEMENT - MANAGEMENT SYSTEMS
AWT upgrades fleet
management system
Standfirst—-Applied Weather Technology (AWT) has released GlobalView 2.0, a new
version of the company’s fleet management system.
his features port forecasts, tide days out. on a subscription basis. This is provided in
T data, tools for easy customisation
and direct access to bunker
pricing. According to Erik
Hjortland, advisor, ship performance and
bunker management, Odfjell Tankers, “With
Tide data: High and low tide data for over
7,500 locations help plan arrivals or
departures based on high tides.
Global ice concentrations: Global ice
concentration imagery is available to help
partnership with LQM Petroleum Services.
Easy customisation: GlobalView 2.0 allows
fleet managers to send a message to
multiple ships at once. Adding customised
links to additional websites and data
the addition of port forecasts, spot forecasts ships make the safest voyage possible. ensures that essential information is easily
and bunker pricing, GlobalView is an even Colour-coded global ice concentration accessible, all in one place.
more valuable fleet management platform. imagery, based on satellite data, shows Eco-Speed calculator: Using this tool, fleet
Ultimately, it helps us to be more efficient in dangerous ice concentrations. managers can calculate the estimated cost
managing our fleet.” Spot forecasts: GlobalView 2.0 provides of voyages at different speeds. Fleet
The new features of GlobalView 2.0 include detailed weather data for specific ocean managers’ plug in parameters and the eco-
the following: areas. Spot forecasts are available with speed calculator will show a comparison.
Port forecasts: Fleet managers can plan and hourly updates three days out and three and Monitor vessels with BVS on board: Fleet
schedule the best time for loading/unloading to six hourly updates five days out. managers can now see voyage tracks from
avoid periods of precipitation, or strong winds. Fuel pricing: Real-time bunker pricing is AWT’s BVS on board system to monitor
Port forecasts are available for more than available for more than 70 locations their entire fleet. TO
2,500 locations with hourly updates three days globally. Information is updated throughout
out and three and six hourly updates five the day and includes barging rates, offered
Fleet Reports
CDI
Near Miss Reports
SIRE
Management Reports
Port State Control Repetitive Questions
Flag State Inspections Most frequent Deficiencies
Class Inspections Marine Injury Report
Ship Visit Reports Overdue Items Report
Internal Audits Ship Reports
Navi Audits Oil Major Reports
Marine Injury Reports
Vessel/Cargo damages
Machinery damages Vetting Status Report
Environmental incidents Internal vs. External Deficiencies
Near Misses Key Performance Indicators
Non Conformities
info chemserve-marine.com
www.chemserve-marine.com
16 TANKEROperator March 2012

19. INDUSTRY – SHIPMANAGEMENT - DATA MANAGEMENT
Wallem opts for DNV
Navigator
Hong Kong-based Wallem Ship Management has ordered DNV Navigator for its
managed fleet of more than 190 ships.
he contract also includes the Work of information about most of the world’s ports taking this next strategic step.
T
seafarers.
and Rest Hours module allowing
for compliance with international
legislation on rest hours for
This is the largest contract signed for DNV
and terminals including publications and data
from UKHO, IHS Fairplay and other sources.
Arrival and departure procedures for all the
major ports are available as well as a
comprehensive nautical library providing up-to
As part of the system’s implementation,
Wallem will make use of the Work and Rest
Hours module. This module demonstrates
compliance with the Maritime Labour
Convention 2006 (MLC) and the Standard of
Navigator thus far. Basically, it is a dedicated date maritime-specific information. Training, Certification and Watchkeeping for
decisions support tool for assisting the Master Seafarers (STCW).
in handling the administrative and regulatory Master’s notes Any violation of regulations is clearly
complexity of port operations, the class The system is arranged for easy creation of identified and the system allows user-defined
society explained. Master’s Notes, which are used for sharing reports to be generated. Crew timesheets can
DNV Navigator facilitates compliance with port specific knowledge within the fleet and be generated in MS Excel and the power of
requirements from charterers and port information can be shared with other systems the system can be increased by adding
authorities and is often referred to as the such as gangway control systems and ECDIS. company-specific forms and by sharing data
‘Captain’s best friend’. “Wallem is striving continuously to manage with other company-specific or third party
More than 1,200 port clearance forms are their fleet in safer and more cost effective systems.
automatically filled in with ship data so that ways”, said Captain Deepak Honawar, DNV Navigator was introduced in 2002 and
the required paper work can be prepared in a Wallem’s director of safety and quality. The is already in use on over 2,000 ships
few minutes. The system includes a database company tested the system thoroughly before worldwide. TO
March 2012 TANKEROperator . 17

21. INDUSTRY – CHEMICAL/PRODUCTS TANKERS
Low contracting
bodes well for the
future
Most operators have more faith in the chemical and products tanker markets’ future
than any other at present.
owever, not all is rosy In 2012, the expectations are for an even the Mediterranean region where the activity
H underlined by a Gibson Research
report issued in the middle of
February, which said that the
product tanker market in the East has been
severely depressed over the past few months.
smaller increase in fleet numbers, not least
due to anticipated delays and cancellations, as
well as strong interest in scrapping amid the
current weak returns.
The biggest gain is likely to be in the LR2
increased by 49% over the quarter followed
by the Northwest Europe (26%) and
Singapore (17%).
TCEs for LR2s trading on the benchmark fleet, with net increase of 6% this year.
route from the Middle East Gulf to Japan Importantly, LR1 supply is forecast to rise by
(TC1) have averaged only $6,000 per day (on only 2% and MRs by just 1.5%. This will lead
a round voyage basis at design speed) since to an overall growth of only 2%. Beyond
November. 2012, even slower expansion is projected in
TCE returns dropped to even lower levels in the product tanker fleet.
early February, to around $2,000-$3,000 per Thus, the current market is still feeling the
day at design speed. The conditions for effects of rapid fleet expansion over the past
smaller product carriers in the East were few years, but the more limited growth in
similar, with LR1 and MR TCE earnings also supply in the future will alleviate the Source - Drewry Maritime Research.
sinking well below fixed operating costs in oversupply of product tankers.
recent months. At the same time, on the demand side, the Of the product fleet, Drewry said that MRs
This weakness in the region across all size prospects are for robust growth. More than 2.8 stand out as having the greatest earnings
ranges has been primarily due to an mill barrels per day of new refining capacity potential in the long term. The consultancy
abundance of available spot tonnage, with in the Middle East and India is expected to said that it expected that the fleet growth is
slow steaming becoming a common feature of come on stream by 2016. This will offer likely to be restricted on account of low
this particular market sector. strong support both to long haul and short ordering in this sector.
Since 2005, the product tanker fleet has haul products trade out of the region.
increased by 1,005 vessels (+65%). This is Combined, these improvements in the Short term
equivalent to close to an 8% per annum supply and demand conditions could provide a In the short term, a marginal improvement in
increase. However, the pace of growth has solid base for a substantial gain in product the Atlantic trade is anticipated, although
slowed over the past 12 months and, as a tanker rates in the East in the medium term, downside risks include the closure of several
result, the total gain in supply was only 3.5% but for now product tankers will have a few refineries in the US Gulf, due to a lack of cash
last year. more ‘rough waves’ ahead of them, Gibson flow and the Eurozone debt crisis. However,
concluded. the demand for MRs is likely to grow steadily
in Asia and Middle East regions with
MRs positive upcoming refinery capacity additions.
Drewry Maritime Research’s latest Tanker But the key for this potential rise in rates is
Forecaster tends to agree, saying that while the demand/supply gap, which will work in
crude oil tankers will continue to suffer, favour of owners to a considerable extent. The
product tankers, especially MRs, are expected supply of MRs declined marginally by the end
to perform better in the coming years. of 2011 to 23.5 mill dwt.
Freight rates for MRs improved in the last Further, with the MR orderbook equating to
quarter of 2011 owing to an increase in 8.5% of the fleet, Drewry forecasted a supply
chartering activity across major trade routes in demand balance of 2.3 mill dwt (or 9.8% of
this segment. Overall, reported spot chartering supply) for 2012. However, it is the reduction
activity increased by 18% in 4Q11. of this balance to 0.5 mill dwt (or 2.1% of
Source - Gibson Research.
Considerable improvement was observed on supply) come 2016 that will push rates up. TO
March 2012 TANKEROperator 19

22. INDUSTRY – CHEMICAL/PRODUCTS TANKERS
What’s in your tank?
Last January, the MARPOL 73/78 Annex II and MEPC 2/ Circ. 15 Annex 10 tank
cleaning regulations that came into force in August 2010 came into full effect,
leaving many ship operators facing a new challenge.
t is now up to vessel owners and global network and service centres are factory just outside Tønsberg in Norway with
I
sea.
operators to not only meet these
regulations fully, but also to continue to
improve shipmanagement efficiency,
reduce operational costs and promote safety at
confronted with a huge range of situations on
a daily basis.”
So how can marine chemical providers help
owners and operators to meet regulatory
demands while remaining efficient? Hunter
manufacturing regulated by ISO 9001 and ISO
14001.
Hunter explained that production and
quality control is standardised for both product
lines to ensure consistency and high quality
Wilhelmsen Ships Service’s (WSS) director said that experience is key: “We have decades products: “Throughout the production process
marine chemicals, Graham Hunter, believed of experience and can provide a we are committed to reducing waste, transport
that although these new regulations could comprehensive range of products designed volumes, hazardous substances and recycling
cause headaches for some, they are entirely specifically to meet regulations through our materials. Our aim is to keep increasing the
necessary. eight global tank cleaning centres in Houston, effectiveness of our chemical portfolio while,
Hunter said: “Tank cleaning is a vital factor Rotterdam, Singapore, Fujairah, Durban, at the same time, improving safety and
in governing the success of ship operations Busan, Santos and Algeciras.” reducing environmental impact.”
and the majority of shipowners and traders Hunter went on to explain that last year’s
recognise the importance of efficient tank acquisition of Nalfleet has positioned WSS as New technology
cleaning products and adequate procedures. a world-leader in the provision of As part of the acquisition agreement with
We know that the basis of successful tank environmentally-friendly marine chemicals. Nalfleet’s previous parent company Nalco,
cleaning operations is a fundamental All chemicals are now being produced at the WSS has access to suitable technology
knowledge of all aspects and at WSS our same location, the Wilhelmsen Chemicals developed by the Nalco R&D team, in
20 TANKEROperator March 2012

23. Your Preferred Ship Repair Yard
in the Arabian Gulf
th
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ISO 18001
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ISO 9001 & 14001
ISO 27001 & ISPS Code
P.O. Box 50110, Hidd, Kingdom of Bahrain,
Tel: +973 17 67 1111, Fax: +973 17 67 0236,
E: info@asry.net, www.asry.net

24. INDUSTRY – CHEMICAL/PRODUCTS TANKERS
addition to a skilled team of Wilhelmsen any perfume or colouring agents.
Chemicals scientists based at the R&D Components (chemicals) with
laboratory outside Tønsberg. Both teams meet Pollution Category X shall not
on a regular basis to review the latest exceed 10% of the total weight of
technologies. the cleaning additive.
And although WSS is the largest producer If a component (chemical) falls
of marine chemicals in the world, innovation within Pollution Category X, it shall
is still the prime goal. “It’s not only about be readily biodegradable.
size,” says Hunter. “We realise that customers All chemical tank cleaning suppliers
have a choice. We need to keep innovating to need to adopt their existing product
lead the market.” range to these changes to comply
with the new circular.
WSS guidelines on tank cleaning Products approved and evaluated through
chemicals: MEPC/Circ.363 ceased to be valid on 1st
MARPOL Annex II regulations for the August, 2010. To maintain a listing beyond
discharge of noxious liquid substances this date, a re-evaluation of the cleaning
include restrictions on the types of cleaning additives concerned, in accordance with the WSS marine chemicals director Graham
additives allowed to be used in tank revised guidelines given in MEPC.1/Circ.590, Hunter.
washing operations. and regulation 13.5.2.of Annex10 of
WSS offered to market 20 separate IMO- MARPOL 73/78 is required. WSS chemicals solution:
approved tank cleaning products under the The new circular of Annex10 of MARPOL All WSS tank cleaning chemicals are;
old MEPC/Circ.363. 73/78, (MEPC.2 / Circ.15, Annex 10) came Free from nonyl phenol ethoxylates or
Of these 20 approved chemicals, five were into force on 1st August 2010. other estrogenic compounds.
pure tank cleaning products. The remainder WSS has 10 products approved according Non-flammables.
general and multipurpose cleaners. to this circular. High concentrates.
Changes in IMO legislation MEPC/Circ All products previously holding an IMO Economical in use.
380: approval can still be used for general cleaning Tested and passed paragraph 13.5.2 of
New rules superseded MEPC/Circ purposes around the vessels. Annex II of MARPOL 73/78.
380 from 1st August, 2010. Products used for spot cleaning in tanks IMO approved to MEPC 2/Circ. 15 annex
Future products must not contain can be used as previously. 10. TO
A TANKEROperator conference
Produced in association with
Making money in a tough tanker market:
how to cut costs and increase operating standards
Supported by
Sponsors include
Martin Shaw Dimitris Lyras Emmanuel Vordonis
Speakers:
Martin Shaw, managing director, Marine Operations and Assurance Management Solutions Ltd,
ex-VP technical, fleet manager and vetting service manager, BP Shipping
Dimitris Lyras, director, Lyras Shipping and founder, Ulysses Systems (chair)
Emmanuel Vordonis, ex executive director, Thenamaris Ships Management Contact
Mads Friis Sørensen, branch manager, FURUNO European Branch Office Mary-Ellen Kontogeorgou
Takis Koutris, managing director, Roxana Shipping and chairman, Marine Technical Managers Delegates Manager
Association (MARTECMA) events@tankeroperator.com
Captain Andreas Xapolytos, CEO, Tsakos Columbia Shipmanagement
George Vassiliades, commercial manager, Tsakos Columbia Shipmanagement Mel Skinner
Sponsorship Manager
mskinner@tankeroperator.com
Metropolitan Hotel, Athens, April 3 2012 Tel +44 777 252272
22 TANKEROperator March 2012