Additional cost for ULSFO compliance

Slide1We cannot put price on nature and saving environment is never too expensive.  Saving the environment, the planet, the eco system is not only government’s job; private partnership is always required where private fitments are there contributing to damage of nature. It is either through self initiative or through forced national or international regulations.

With New regulations for ULSFO compliance into force from 1st January 2015, ULSFO cost is 50-55% more expensive than normal IFO 380; as of September 2017@Rotterdam , ULSFO price is $490/m ton, where as IFO 380 is costing $320/mtons.

ULSFO cost of compliance 2015-2016;

  • A big container vessel is consuming approximately 150 m tons of fuel /day,
  • 2-3 days transit to ECA area on one way, so total transit days – 5-6 days in one call to EU area.
  • Vessel calling from China to Europe or USA will occur extra cost every time in the tune of USD170X5daysX150 tons = USD127000.
  • Assuming 6 calls to EU each year, additional cost of fuel will be approximately USD 700,000-1,000,000 per vessel.

Besides this there are one time cost of installation of separate ULSFO system, chiller plant etc  for older vessels, costing approximately USD100,000.

If we consider only sea going vessels arriving port of Rotterdam in year 2015 & 2016  , 56000vessels alone called port of Rotterdam in 2015 and 2016.  Considering all other ports in EU and USA (ECA), total number of seagoing vessels arriving these ports will not be less than 200,000 in 2 years. Estimating average additional ULSFO fuel cost of USD500,000 / vessel, in last 2 years 500,000X200,000 = USD10,000,000,000 = USD 10Bn has been spent for ECA compliance.

Above calculation is estimated, however close approximation, and total additional cost of fuel consumed to comply with ECA regulation is enormous and will have definitely a great impact on freight and profitability of ship owners.

However, it will be  good for environment and our coming generation in long run.

 

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Ship demolition -2016

Opposite to shipbuilding where development of ship passes through many processes, ship recycling is rather quick, however again it has to follow some guidelines. Few years back, there was no guidelines for shipbreaking, accidents in shipyard were usual, some accidents were immediate and some were effecting in long term, like fumes and asbestos exposer to which causes cancer risk.

As per Shipbrakingplatform.org,  20,4 million Gross Tonnage recycled in 2015, which consisted of ; Bangladesh 33%, India 22%, Pakistan 18%, China 21%, Turkey 5% and Rest of the world 1%. Different sources shows different figure of ship recycling in Bangladesh, Pakistan, China and India but it is true that approximately 80% of ship recycling takes place in these countries.

EU Ship Recycling regulation – Adopted on 20th November 2017 , objective is to reduce the negative impact of recycling of ships flying European member state flag ( Top 3 are Malta, Cyprus & Greece).   Under this regulation all large seagoing vessels will be recycled only in safe and sound recycling facility approved under EU guidelines. Not only the European flagged ships but European ship-owners are also joining this list to support this regulation and in turn 2009 HK convention.

Recent development in Hong Kong convention to make the industry safer and more environmental friendly.

2011 Guidelines for the Development of the Inventory of Hazardous Materials

2011 Guidelines for the Development of the Ship Recycling Plan

2012 Guidelines for Safe and Environmentally Sound Ship Recycling

2012 Guidelines for the Authorization of Ship Recycling Facilities

2012 Guidelines for the survey and certification of ships under the Hong Kong Convention

2012 Guidelines for the inspection of ships under the Hong Kong Convention

2013 Adoption of Ship Recycling code

20160314_16514820160314_16145720160314_152016

 

 

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Golden Stripes – Leadership on the High Seas

Leadership on the high seas?
A professional leadership approach is required to motivate & improve the ability of each individual, and propel the motivation of the ship as an organization.
Captain VS Parani, FNI, FICS, CMarTech has taken the initiative to fill this gap and has written a book Golden Stripes- Leadership on the High Seas,  which is the world’s first book on leadership for mariners, by a mariner.
 
What the book is about?
How to run a tight ship? How to keep yourself, your crew, and your ship safe? How to be an expert professional? How to make the right decisions, every time? How to act appropriately in the face of danger? Communicate with confidence. Be inspired by legendary sailors. There are stories and cutting edge insights which have received international acclaim. It is for navigators and marine engineers, whether early in their career, or experienced and want to take their leadership to the next level. 
 
Be part of a social cause.
Part of the proceeds from the book are donated to the Mission to Seafarers. 
 
Take action
Read Golden Stripes and take it with you to your ship. Share the news with your shipmates. Gift it to a friend. Discuss the book with your team. Invest in your own copy of the book through http://www.whittlespublishing.com/Golden_Stripes
It is also available through major retailers worldwide such as Amazon, Ebay and eventually at selected bookstores.
Connect with the author
You’re most welcome to visit his website www.parani.org to read his blogs & discuss ideas
Feel free to connect with him on Facebook: https://www. facebook.com/vs.parani,  https://www.facebook.com/Lead ership.on.the.high.seas/
LinkedIn: https://www. linkedin.com/in/parani-vs- a5ab6363/ or Twitter: Parani VS@GoldenStripesLS.
 
 
 

Golden Stripes- Leadership on the High Seas

The world’s first leadership book by a merchant-mariner
 
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Bunkering at Singapore- 2017

Bunkering at Singapore often ends up in a dispute and finally ship owner, charterer and ship staff remains at receiving end of the loss. Under pressure of vessel departure, and lack of much support from anywhere, ship staff settles the dispute hurriedly and accepts the loss. In the case of Cappuccino bunkering, bunker shortage is discovered after few hours or days of sailing. To prevent malpractice, MPA is regularly monitoring and taking action against suppliers, barge or tanker operators.

2016, yearly sale of HFO, MDO, LSFO bunker was 49000,000 Metric ton in Singapore port (as per statistics from MPA Singapore, Bunker sales data Singapore port). Considering just 1 per cent short supply of bunker, total loss to receiving end is approximately 4900000MT. If calculated at an average bunker rate of 300USD/ton, bunker lost by charterers or ship owners is approximately 1470million USD per year. In this calculation we have not considered MDO or LSMDO price, otherwise the loss would be higher.

In Singapore there are  about 15 bunker brokers, 60 suppliers and approximately same number of traders. Out of these 60 suppliers, 20 suppliers are main and wins most of the supply.

Recently MPA Singapore has taken measures to improve the bunker malpractice;

  1. New bunker survey licence to have better regulatory control over bunkering company and bunker surveyors, in tern it will have help the interest of all bunkering stake holders.
  1. From January 1st 2017, MPA will require to use Mass Flow Meter for all marine fuel supply in Singapore port for accurate measurements and to avoid any malpractice or dispute.

These measures will help bunker receiver to get accurate amount of fuel, no unwanted pressure, no dispute and eventually no financial loss to charterers or owners.

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Collecting ships’ fuel consumption data

The Marine Environment Protection Committee (MEPC) of IMO in the 69th session meeting at IMO Headquarters in London (18 to 22 April) has approved draft amendments to the MARPOL, it is mandatory fuel consumption data collection system,  intended to be the first in a three-step process in which analysis of the data collected. It  would provide the basis for an objective, transparent and inclusive policy debate in the MEPC. Key features of this policy is as below;

  • To date, IMO is the only Organization to have adopted energy-efficiency measures that are legally binding across an entire global industry.
  • Due to new measures by 2025 all new ships built will be 30% more energy efficient than those built in 2013.
  • IMO would be required to produce an annual report to the MEPC, summarizing the data collected. Data would be anonymized so individual ship data would not be recognized.
  • This would allow a decision to be made on whether any further measures are needed to enhance energy efficiency and address greenhouse gas emissions from international shipping.

“Under the system, ships of 5,000 gross tonnage and above will be required to collect consumption data for each type of fuel they use, as well as other, additional, specified data including proxies for transport work. The aggregated data will be reported to the flag State after the end of each calendar year and the flag State, having determined that the data has been reported in accordance with the requirements, will issue a Statement of Compliance to the ship.   Flag States will be required to subsequently transfer this data to the IMO Ship Fuel Consumption Database.”

Source – International Maritime organization

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Pls help to find lost baggage

From leighann.housum@united.com

For – Mr sergi varfolomyeyev

Can you check with your staffing office. we have a suitcase in united airlines central warehouse with the name Mr sergi varfolomyeyev he traveled jan 24 KBP/FRA/EWR ON LH AND UA I cannot find a delayed bag report and there is no phone number in his flight pnr only work number 351-25-844709 for your company the onhand file number for bag is miaua12095. our baggage resolution center number for lost baggage is 1-800-335-2247. sergi is a seaman but flight pnr does not say what ship. thanks Leigh Ann/united airlines baggage tracing agent

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Shipping & safety review by Allianz

Annual shipping and safety data by Allianz has been published, it shows improved safety and lesser losses because of robust safety environment and self-regulation. Below are key points of the report;
•85 large ships lost worldwide in 2015, down by 45 percent over a decade. Saturday is the safest day and Thursday is the most frequent day for shipping incidents.
•Losses has increased in top global hotspot, i.e. South China and South East Asian waters.
•safety concerns are rising due to pressurising cost caused by Economic and market conditions.
•There were 2,687 reported shipping incidents (casualties including total losses) globally during 2015, down 4 per cent.
•For the first time in five years, piracy attacks failed to decline in 2015 (source International Maritime Bureau). South East Asian attacks rose, accounting for 60 per cent of all incidents. Attacks in Vietnam surged year-on-year.
•Lower emissions safety threat: There have been unexpected safety implications from the shipping industry’s drive to reduce emissions, resulting in power issues related to rising use of ultra-low sulfur fuel. AGCS has seen an increase in machinery claims related to fuel.
•Cyber risk exposure is growing beyond data loss. Pirates are already abusing holes in cyber security to target the theft of specific cargoes.

Read Allianz review report

Source – AGCS safety and shipping Review 2016

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Technologygy insight in shipping

Global economy is slowing but technological revolution has increased many folds and future is it. DNV GL 5 yearly Technology Outlook 2025 has been published, it gives insight into selected industry for next 10 years.

Data generation, digitalization and low cost satellite communication has made ships  floating computers. Data generated from ships are being analysed to improve safety and environmental performance of the ship from building to operation stage. Use of sensors,  low cost and faster  information flow will encourage existing processes and functions onboard to be automated further.

In next 10 years, additive manufacturing and 3-D printing should enter in shipping too, it will help in producing spare parts when and where required. Presently generation of energy is through large rotating and passive components; hybrid power, renewal energy and micro grid will be key change in energy production and transmission.

Read more full report.

 

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Shipping up or down?

Baltic index inching high, company making profit but shipping confidence is low.

When we receive contradictory reports, it becomes difficult to infer what is right and whether these news are giving a direction of shipping industry. In March 2016, we have received below 4 news, all stand alone are correct however when we combine these reports it looks something wrong, companies have reported profit or turn around, Baltic index is inching high, never the less shipping confidence is low.

  1. Seaspan net profit up 52.9pc to US$199.3 million (2015 YoY)
  2. Baltic sea freight index up on firmer Panamax rates (March 2016)
  3. Hapag-Lloyd back in black with 30pc more sales and US$127 million profit (2015 YoY)
  4. New low in shipping confidence;
    Charterers (down from 5.5 to 3.9), which is the lowest confidence rating by any category of respondent in the history of the survey. Confidence on the part of owners and managers was also down, from 5.7 to 4.8 and from 5.8 to 5.5 respectively. Geographically, confidence was down in all major areas covered by the survey – in Asia from 6.0 to 4.4, in Europe from 5.4 to 5.1, and in North America from 5.7 to 4.7.
    source – shipping confidence data – Moore Stephens
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eWAVE piston rings

2 stroke engine, with conventional flat piston rings, cylinder oil distribution is uneven; only 10% cylinder lubricating oil makes it to the rubbing surface between liner and rings, 30-40% oil goes to exhaust and 30-40% oil is scrapped down. As pressure in the cyliner rises the piston ring presses hard to the liner surface, therefore to prevent high wear of rings, more lubricant is required between liner and piston rings at higher pressure or load.

One of the leading piston ring manufacturer, Federal-Mogul  has developed and tested eWAVE piston ring which is able to save approximately 20% lubricating oil, thus saving in operating expanses and reducing pollution too. This is acheived by designing the ring circumference in such a way that it allows more oil to disperse circumferentially, creating a homogenious layer an preventing hydrodynamic breakdown. It has been already tested for more than 20000hours and confirmed reduction in lub oil consumption and wear of liner and ring packs.

Read more-

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