TANKEROperator

JUNE/JULY 2014 www.tankeroperator.com

BALPURE

BALLAST WATER MANAGEMENT

Severn Trent De Nora has over 35 years of leadership
and expertise in providing electrolytic disinfection
treatment solutions. Setting new standards with the
Type-Approved BALPURE

ballast water treatment

system, we have created a simple, reliable and
cost-effective solution for both retrofits and newbuilds.
Easy to install
Easy to operate
Non-corrosive
Operator safe
Suitable for hazardous cargo area installations
Surpasses IMO D-2 standards by ten-fold
To learn why BALPURE is the right ballast water treatment
solution for you, contact sales@severntrentdenora.com
or visit www.balpure.com
Visit us at SMM 2014, Hamburg, Germany,
0812 September, stand A1.306
Incrt Gas bascd Ballast Watcr Trcatmcnt for Tankcrs
Marinc & Offshorc Fluid Handling Solutions
No disruption to ballasting
or dc-ballasting
No changc to ballast pumps,
pipcs, or powcr gcncration
Idcal for ncw build or rctro fit
Email: salcsQcoldharbourmarinc.com
www.coldharbourmarinc.com
Tcl: +44 {0) 1629 888386
Thc only in-tank, in-voyagc BWT systcm
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June/July 2014

TANKEROperator 01
Contents
Markets
POOLCONB introduced
Profile
Concordia changes direction
EDCIS Ltds expansion
Law
STSdispute resolution
Denmark Report
Weathering the storm
Owners opt for chemical/products
Leading designers tanker portfolio
Anti-Piracy
West Africa on the agenda
Front cover - For more than eight years, Severn Trent De Noras patented BALPURE electrolytic disinfection ballast water treatment system has
undergone extensive testing and received third-party verification for meeting rigorous standards for performance, corrosion and safety.
The system is type-approved to meet IMO regulations for ballast water, which was achieved in July 2011 (BSH Germany). In addition, BV Type Approval
was received in May 2012, ABS Certificate of Design Assessment was received in June 2012, while the US Coast Guard Alternate Management System
(AMS) certification was received in April 2013.
Type approval applications are also ongoing with other class societies.
BALPURE

BALLAST WATER MANAGEMENT

Severn Trent De Nora has over 35 years of leadership
and expertise in providing electrolytic disinfection
treatment solutions. Setting new standards with the
Type-Approved BALPURE ballast water treatment
system, we have created a simple, reliable and
cost-effective solution for both retrofits and newbuilds.
Easy to install
Easy to operate
Non-corrosive
Operator safe
Suitable for hazardous cargo area installations
Surpasses IMO D-2 standards by ten-fold
To learn why BALPURE is the right ballast water treatment
solution for you, contact sales@severntrentdenora.com
or visit www.balpure.com
Visit us at SMM2014, Hamburg, Germany,
0812 September, stand A1.306
04
06
24
23
11
Technology
24 Ballast Water Treatment
Awaiting ratification
Ballast tank coatings effect
Emissions
Fuel quality addressed
MDTs new engines
Shiprepair/Maintenance
Improving vessel efficiency
Retrofitting arguments
Efficiency
Monitoring/performance software
Tank Servicing
Cargo overpressure contained
Tank equipment package offered
34
29
36
37
13
TANKEROperator

June/July 2014 02
COMMENT
All eyes on the Middle East- again
TANKEROperator
Vol 13 No 6
Tanker Operator Magazine Ltd
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Just as shipping analysts
predicted a possible turnaround
the in the large tanker market
later this year, along comes
another world event that could
completely undermine their
optimism.
We are talking of course of the rapid
deterioration in the situation in Iraq. Although
Iraqi oil is primarily produced and exported to
the south of the country, at the top of the
Arabian Gulf, there is a production area in the
North (Kirkuk), which is connected to the
South via a pipeline - and we all know how
vulnerable that is.
To gauge what could happen to the tanker
market, you only have to go back to the
Iraq/Iran war in the 1980s to see what
devastation any conflict in the Arabian Gulf
might cause.
That well known US commentator T Boone
Pickens said on Friday 13th June (note date)
that the crude oil price could hit $150-200 per
barrel, if Iraqi oil exports are hit. He said that
in the long term there was plenty of oil around
the world and one solution for US consumers
would be to form an energy alliance with
Canada and Mexico.
OPEC opted to maintain its crude oil output
ceiling at its Vienna meeting in June, despite
world tensions over Iran, Iraq and Libya, plus
to a lesser extent, the Ukraine. One analyst
reportedly said that the cartel was happy with
Brent trading at around $110 per barrel, which
benefited its member oil producers. However,
global supply was still outstripping demand.
Apart from Iraq, Libya remained in a state
of unrest with output slashed to less than
200,000 barrels per day from a possible 1.5
mill barrels per day by the middle of June.
Irans oil output could reach 4 mill barrels
per day in less than three months if Western
sanctions are lifted over its nuclear energy
programme, Oil Minister Bijan Zanganeh said
at the OPEC meeting. That compares with
Irans current production of about 2.7 mill
barrels per day, according to OPECs data.
At the same time as the Iraq crisis was
escalating, BP released its Statistical Review
of World Energy 2013 in which the oil major
said that global energy demand accelerated
last year but, reflecting the weakness of the
global economy, growth of 2.3% remained
slightly below the historical average.
Within this global picture, however, shifts in
energy consumption mirrored those in the
worlds economic patterns, BP said.
Strong US growth
Energy consumption in the emerging
economies grew below their long-term average
rate, rising by 3.1%, driven by slower growth
in China. However, consumption in the mature
OECD economies grew by a higher-than-
average rate of 1.2% - entirely as a result of
strong US growth. As a result, the gap
between growth in the OECD and non-OECD
narrowed to levels not seen since 2000, BP
said.
Nonetheless, the emerging economies
continued to dominate the growth in global
energy demand, accounting for 80% of growth
last year and nearly 100% of growth over the
past decade.
The review pointed out how geopolitical
events in a number of countries continued to
impact oil production in 2013, with Libya
suffering the largest single decline in the face
of renewed civil unrest.
However, the disruptions were offset by a
big increase in US oil production driven by
the massive investment in shale and other
tight formations production. As a net result,
average oil prices remained unusually stable
albeit at levels exceeding $100 per barrel for a
third consecutive year.
In other words, the disruptions seen last
year were by and large balanced by new
sources of oil and according to BP Group
CEO Bob Dudley: This underlines the
importance of continuing to secure these new
supplies through continued access to new
resources, policies to encourage markets and
investment and the application of new
technologies worldwide.
The developments also highlighted the
critical importance of both policy and market
forces in delivering new supplies. As BP Chief
Economist Christof Rhl noted: The huge
investments seen in the US have been
encouraged and enabled by a favourable
policy regime. And this has resulted in the US
delivering the worlds largest increase in oil
production last year. Indeed, the US increase
in 2013 up by 1.1 mill barrels per day - was
one of the biggest annual oil production
increases the world has ever seen.
If Iran is allowed to ramp up exports, if the
US is allowed to become an exporter of crude
oil, if Russian oil eventually flows from the
Arctic and to a lesser extent, if Kurdistan
ramps up oil exports via a pipeline to Turkeys
Ceyhan Terminal, then the worlds energy
demands could easily be met - but at what
price?
TO
INDUSTRY - MARKETS
TANKEROperator

June/July 2014 04
BIMCO introduces
POOLCON B
agreement form
POOLCON B, the second of two standard pooling agreements for use by tramp pools
operating in dry and liquid bulk trades, was recently published by BIMCO.
T
his form was developed to provide
a clearly worded basis for
establishing pool arrangements
with resulting economic benefits
and efficiencies for participants and their
customers, the organisation said.
In contrast to POOLCON A, where
participants timecharter vessels into the pool,
which operates as a self-standing entity,
POOLCON B is modelled on widely-used
agency agreements where pool managers act
as vessel operators and undertake commercial
management, BIMCO explained.
However, all contracts for the use, or
employment of a vessel, including charters
under a contract of affreightment (coa), are
fixed by the managers acting as agents on
behalf of pool participants who are, therefore,
principals in contracts with pool
counterparties.
Full account has been taken of competition
legislation, which is largely based on the same
underlying concepts in many jurisdictions.
Nevertheless, provisions, especially
prohibitions, vary between states and regional
economic groupings. Users should therefore
investigate applicable local requirements and
issues, such as market share, market
concentration, structure and turnover before
committing to a pooling agreement, the
organisation warned.
Background
As for the background, in October 2012,
BIMCO published POOLCON (since renamed
POOLCON A) as the first of two specialist
documents setting out the basis for contractual
arrangements between owners participating in
a pool and the pool managers.
Under POOLCON A, the pool is constituted
as a self-standing entity where owners
timecharter their vessel(s) to the pool and the
pool contracts in its own name with third
parties.
However, this is not the only model. Owners
commercial needs, together with
administrative and practical considerations,
have resulted in the widespread use of agency-
based arrangements where pool managers act
on behalf of participants with participants as
principal in any contract for the use of a
vessel, or carriage of goods.
In response to this need, work was
undertaken to develop a second document to
address the special requirements of agency-
based arrangements. The outcome, POOLCON
B, was adopted at BIMCOs documentary
committees meeting in Copenhagen in
November 2013.
BIMCO said that it was grateful to the
following members for their work in the
development process:
Francis Sarre (chairman), CMB
INDUSTRY - MARKETS
June/July 2014

TANKEROperator
(shipowner)
Stathes Kulukundis, R&K (shipowner)
Georg Scheel, Nordisk (club member)
Ms Marjorie Holmes (lawyer -Reed Smith) (adviser)
Competition law is often modelled on the European regime. As with
POOLCON A, the importance of avoiding creating restrictions on
trade has been at the forefront of the working groups consideration of
the issues. Full account has therefore been taken of EC guidelines on
horizontal co-operation agreements (2011/C11/01), together with
similar regulatory implications in jurisdictions around the world.
BIMCO has also published guidelines as to the provisions set out in
POOLCON B. Basically, it governs the relationship between owners
(participants) entering a vessel(s) into the pool and the pool managers
and regulates administrative and procedural matters covering pool
operations together with the allocation of respective party liabilities
and obligations.
As an agency agreement, there is no timecharter relationship
between participants and pool managers. Nevertheless, in order to
calculate the participants entitlement to any share of pool profits, the
Reference Charter listed must set out the basis for determining when
the vessel is deemed to be on hire and periods, such as breakdown,
maintenance, or repairs, when no notional hire accrues.
Pool managers undertake marketing and fixing arrangements, but all
contracts (including individual charters under coas) for employment
are concluded by the managers on behalf of and acting as agents for
participants. However, additional tonnage chartered in, or chartered
out to meet or supplement pool commitments, is fixed in the
managers own name.
As agents, managers should not be exposed to charterers claims.
However, to guard against the possible risk of a misdirected arrow,
participants are required to name the managers as co-assured on their
insurance policies, if possible without liability for calls in the event of
owners failure to make payments due.
POOLCON B follows BIMCOs traditional style, ie Part I contains a
box layout for variable information to be inserted by the parties, while
Part II sets out terms and conditions. Four supporting annexes are
included for pool specific arrangements and a fifth annex, an
Accession Agreement, is designed to facilitate procedures for bringing
new participants into the pool.
GUARDCON Guidelines
Following a period of close consultation with the International Group
of P&I Clubs concerning the practical application of the BIMCO
Guidelines on GUARDCON adopted in November 2013, a special
circular was published.
The Guidelines serve as a health warning to those owners
contemplating using the GUARDCON contract for the provision of
guard services in the Gulf of Guinea. National law in the affected
countries prohibit foreign security guards from carrying firearms on
board merchant vessels within their territorial waters.
Effectively, it means the owner is required to employ local security
personnel (commonly marine police, or naval personnel) under strict
agreements, BIMCO said.
The Guidelines set out the main issues concerned with the
recruitment of security guards in the Gulf of Guinea and highlights a
number of caveats of which owners should be aware.
Clubs in the International Group of P&I Clubs have issued circulars
to all their members giving further advice regarding approved
amendments to GUARDCON for West African trades.
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TO
TANKEROperator

June/July 2014 06
INDUSTRY - PROFILE - CONCORDIA MARITIME
Concordia Maritime
changes tack
Majority owned by the Stena Sphere grouping of companies, tanker owner Concordia
Maritime is changing its philosophy of locking in vessels on period charters to playing
the spot market.
P
rimarily set up to own units of the
Stena Groups tanker fleet 30 years
ago, the listed company has moved
most of its vessels into the spot
market, since coming off their respective
timecharter commitments.
CEO Kim Ullman, who took up office on
1st January this year, explained that with
future prospects looking positive for the
products tanker sector, now was the time to
start following the spot market and not lock
into long term deals at todays levels.
Today, Concordia Maritime owns 11
tankers. Included in the 11 are 10 P-MAX
types and one Suezmax. In addition there are
two IMO II type MRs under construction.
Thus far, nine of the 10 P-MAX tankers are
operating on the spot market with only one on
timecharter. The Suezmax is operated in the
Stena Sonangol Suezmax pool, also on the
spot market.
In 2010, all the P-MAXes were operating on
long term charters, but today that figure stands
at only one - Stena Paris - which is on charter
to Total.
The spot market P-MAX types are
commercially operated by Stena Bulk (three in
heavy products), Stena Weco (three in light
products/edible oils) and Shell Singapore (two
in light and heavy products). The entire fleet is
ice classed, either 1A, or 1B.
The rationale behind Concordia Maritimes
thinking on the charter market going forward
is that there will be around 4-5% net increase
in the fleet size per year, given the current
orderbook, but demand is likely to rise by 5-
6% primarily on the back of increased
tonne/miles, as refining capacity moves to the
Middle East and Asia and the worlds
economic recovery gains momentum.
Explaining the difference, Concordias open
market vessels generated an average income of
around $16,000 per day, compared with
$13,000 per day TCE for the whole of 2013.
However, the spot market tends to be very
fragile in nature. This led to Concordia
Maritime and other analysts to believe that
activity in the newbuilding market over the
past 12 months indicated a future trend of
lower peaks in the spot market, compared with
the strong years 20072008. At the same time,
underlying demand will make the markets
troughs shallower than those seen, for
example, in 20102012.
As well as in Europe, refineries have, or are
due to close in Australia, which gives the
products trades more opportunities for the
import of petrochemicals into areas where
refinery capacity has all but diminished.
Products will be exported from the newly built
refineries in the Middle East, Asia and India.
Vessel conversions
Three of the P-MAXes have been converted
into IMO III types, meaning that they can lift
edible and palm oils and two others have been
prepared for possible future conversions.
Ullman explained that the company would
keep a few P-MAXes in the DPP trades to
give greater flexibility in chartering options.
The P-MAXes were designed for a
deadweight of 65,200 tonnes on a relatively
shallow scantling draft of 13 m but have a
post-panamax beam of 40 m. They are
described as small Panamaxes, or large MRs,
having 30% more carrying capacity than an
average MR.
Ullman recently embarked on a road show
to explain the companys new chartering
strategy and said that the results of the change
in philosophy would be analysed at the end of
this year before the company embarks on any
more acquisitions.
Concordia is somewhat unique in that the
company operates with only six employees,
based in Gothenburg, Zug and Bermuda. All
of the commercial operations are handled by
Concordia Maritimes Kim Ullman.
Concordia Maritime and Stena Bulk have 10 IMO2MAX MRs on order at GSI.























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INDUSTRY - PROFILE - CONCORDIA MARITIME
TANKEROperator

June/July 2014 08
Stena Bulk, Stena Weco, Stena Sonangol
Suezmax pool and Shell. Handling the
newbuilding, conversion, R&D and
procurement is Stena Teknik, while Stenas
wholly-owned third party shipmanagement
concern Northern Marine Management looks
after the technical operations, management
and maintenance of the vessels.
Stena Bulk operates around 100 vessels
from offices in Gothenburg, Houston and
Singapore to give the company 24-hour world
coverage. The vessels include Suezmaxes,
MRs, Panamaxes, shuttle tankers and coastal
tankers.
Stena has set up a series of joint venture
commercial operating companies, including
Stena Weco, which will operate the MR
newbuilding series, of which Concordia has
two due for delivery later this year/beginning
of next from Guangzhou Shipyard
International (GSI).
At present, Stena Weco, a joint venture
between Stena and Dannebrog, has a fleet of
around 50 MRs and claims to be the worlds
largest operator of tonnage able to carry edible
and palm oils. Ullman explained that Stena
Weco was an expert at triangulation, thus
significantly reducing the tankers ballast legs,
by maximising cargo opportunities worldwide.
Stena Bulks and Concordia Maritimes 10
so called IMO2MAX MR newbuildings were
designed by Stena Teknik in conjunction with
the shipyard. They will be fitted with 18 cargo
tanks, able to handle 10 double valve grades
and adhering to the IMO Type II requirement
in that no tank is larger than 3,000 cu m in
capacity. Each tank will be able to carry a full
IMO II cargo.
Their cargo piping systems are constructed
of stainless steel in order to comply with
FOSFA recommendations and the chemical
trades. A Framo deep well hydraulic pumping
system will be fitted, which can be run and
controlled individually and simultaneously. A
nitrogen inert gas system will also be installed.
As for coming up to the charterers
expectations, Ullman pointed out that while
the number of vetting inspections was
growing, the number of observations per
inspection was falling.
Concordias first quarter 2014 results
showed a profit of SEK12.2 mill and Ullman
predicted a final profit for the full year,
buoyed by the sale of two jointly owned ice
class LR1s to a Canadian consortium, which
will be reflected in this years second quarter
results.
The decision to sell the LR1s Stena
Poseidon and Palva, owned in a joint venture
with Neste, was down to the Finnish energy
giants wish to sell certain shipping operations,
resulting in Neste asking to break the charter
agreements, which still had three years to run.
Concordia said that although the market for
secondhand tonnage was rising, the price for
the vessels and the charter contract settlement
terms with Neste were okay, so the decision
was taken to sell the vessels.
The company claimed that the sale was
something of a textbook example. The ships
were ordered on the basis of the customers
needs, they were placed on long-term contracts
and gave the company a decent return during
the charter. As a vessels value is written down
over the years, when a good opportunity arises,
it enables the company to sell at a profit.
By the end of March this year, Concordia
boasted $465 mill of assets by way of vessels
operating and under construction. Cash and
cash equivalents amounted to $29 mill and
other assets were valued at $30 mill.
Founded in 1984 by Stena Sphere.
Listed on NASDAQ OMX Stockholm.
Stena Sphere owns 52% of the shares and 72% of the voting rights.
Six onshore employees and 388 seagoing staff.
Fleet- 10 P-MAX, one Suezmax, two MR newbuildings.
Commercial partners - Stena Bulk, Stena Weco, Stena Sonangol
Suezmax pool, Shell.
Technical management- Northern Marine Management.
CEO- Kim Ullman, formerly CEO Stena LNG, executive vice president
Stena Bulk, managing director Stena Weco, among other posts within
the group.
Concordia Maritime fact file
The P-MAX Stena Perros seen leaving Gothenburg.
TO
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June/July 2014 10
INDUSTRY - PROFILE - ECDIS LTD
Six years of solid
growth
UK-based training establishment ECDIS Ltd has come a long way since
its formation in 2008.
A
bout 75% of the companys
turnover now emanates from
outside the UK and the companys
original service, generic and type
specific ECDIS training, today only makes up
a small percentage of around 2-3% the
turnover, managing director Mark Broster
said.
He explained that the company now has two
distinct offerings- the training courses and a
simulator construction arm, which includes the
integration of all the sensors needed.
Starting operations with generic and type
specific ECDIS training, the company has
since diversified into bespoke navigation
simulator design and construction for clients
with specific needs, such as tug owners and
ports, as well as shipping companies wishing
to set up their own training facilities.
Simulation and ECDIS/e-Navigation
consultancy and auditing is also undertaken
when requested. One example of bespoke
simulation undertaken was for bridge wing
operations, as distinct from the central bridge
navigation centre.
Also offered is training on board ship where
an instructor will join a vessel and undertake
bridge team management and/or navigation
equipment training, such as with a type
specific ECDIS, plus unofficial navigation
team auditing. Sometimes it proves cheaper
for a company to undertake training on board
a vessel than send their navigators away for a
week to a training centre, Broster said.
He also said that he was looking to diversify
into other training areas, such as for
engineering disciplines, however, he admitted
that recruiting experienced people was proving
to be difficult.
Thus far, the company has undertaken more
than 100 major shipments of simulation
equipment, all of which were manufactured in
the UK. A 360 deg bridge simulator can be
tested, flattened down for transportation and
reconstructed on site in four days. Obviously
this does not include the simulator design and
original construction.
A 3D design department has been set up,
which is responsible for building bespoke
simulation models in great detail by area
mapping, gathering reference points, client
testing and the delivery process.
At its UK training centre (The Enav
Centre), located near Fareham, Hampshire,
which has been significantly expanded
recently, the company offers STCW training
courses, ranging from bespoke bridge team
management, crew resource management,
human element and command assessment.
HELM covered
For example, MCA required bridge team
training courses at management level on
human element, leadership and management
(HELM) are offered. Other courses are also
offered, including bridge team management
and a bridge procedures and resource
management courses. A bespoke, company
specific bridge team management course is
also offered.
In addition, anti-piracy courses are available
in co-operation with Edson Tiger, which can
involve maritime security operatives
and simulation training packages.
Within the Enav centre are six mini-
simulators in cubicles for ECDIS
skills development, or interactive rule
of the road training, plus a full
mission bridge simulator and various
classrooms and instructor locations.
The reason for IMO mandated type
specific ECDIS training is that there
are around 36 manufacturers whose
equipment may vary considerably.
While one set of basic instructions
would be the ideal approach to
operating an ECDIS, the horse has already
bolted, so we are here to pick up the pieces,
the company said at its recent open day.
At the open day, speakers said that there
were up to 50% of Masters who did not
understand an ECDIS and tended to delegate
its use to a junior navigating officer. This is
more often than not an age situation, whereby
a younger person is more likely to be used to
electronic gadgets and not be phased when
faced with a digital navigation tool.
ECDIS benefits outlined by the company
included route planning, which should take
considerably less time when using a system
and the ability to define the safety contours,
that is setting limits on water depth, etc.
Richard North, the UKs Marine Accident
Investigation Branch (MAIB) technical
manager, said that the accident bureau had
noted recurring themes of inadequate training,
primarily on ECDIS, plus complacency.
There is an over reliance on aids to
navigation, he said, mentioning ECDIS, radar
and AIS overlay in particular.
He called for the ECDIS manufacturers
handbook to be simplified, as they all tended
to be totally different. The menu structures
should also be standardised, as the various
operating menus were very convoluted and
type specific training was absolutely critical.
There has to be a balance between
technology and looking out of the window,
he stressed.
The full mission bridge simulator.
The Enav centre includes a Transas ECDIS.
TO
INDUSTRY - LEGAL MATTERS - STS
June/July 2014

TANKEROperator 11
Withholding vessel
STS approval
rejected
A recent decision by the Court of Appeal will provide reassurance to the tanker
transhipment trade.
T
he Court of Appeal ([2014] EWCA
Civ 713) considered the issue of
whether owners had acted
unreasonably in withholding their
consent for the use of two nominated VLCCs
in a ship to ship (STS) transfer of crude oil
from another VLCC at the port of Pasir
Gudang.
At first instance ([2013] EWHC 3678
(COMM)), the judge had found in favour of
the charterers, Arcadia Energy Pte Ltd
(represented by Clyde & Co), ruling that the
owners, Falkonera Shipping Co, had acted
unreasonably in withholding their approval.
The owners obtained permission to appeal
this judgment, the hearing of which took place
on 27th and 28th January, this year. Judgment
was handed down on 5th June, 2014 in which
the Court of Appeal upheld the High Court
decision in favour of charterers.
The facts behind this case were that
Falkonera Shipping had chartered the 1991-
built VLCC Falkonera and the VLCC storage
vessels to Arcadia Energy to perform a
voyage, carrying crude oil from Yemen to the
Far East. Charterers nominated two VLCC
storage vessels to receive the cargo at the
discharge port by way of STS transfer.
Owners withheld their approval of the
proposed VLCCs and the cargo therefore had
to be discharged into smaller vessels, which
shuttled between the Falkonera and the VLCC
storage vessels, causing delay. The owners
brought a claim for demurrage. However, the
charterers denied liability for demurrage and
counter claimed for additional expenses
incurred.
The charterparty contained a specific clause
covering STS transfers: "if charterers require a
ship-to-ship transfer operation.... then all
tankers and/or lightering barges to be used in
the transhipment/lightening shall be subject to
the prior approval of owners, which not to be
unreasonably withheld...all ship-to-ship
transfer operations shall be conducted in
accordance with the recommendations set out
in the latest edition of the ICS/OCIMF ship-to-
ship transfer guide (petroleum)."
The charter also contained the standard
clause 8.1 of BPVoy4: Charterers shall have
the option of transferring the whole or part of
the cargo... to or from any other vessel
including, but not limited to, an ocean-going
vessel, barge and/or lighter... All transfers of
cargo to or from transfer vessels shall be
carried out in accordance with the
recommendations set out in the latest edition
of the ICS/OCIMF Ship to Ship Transfer
Guide (Petroleum).
Appeal
The owners submitted at first instance that
discharging a VLCC cargo by STS transfer
into another VLCC of materially identical size
is not a routine or standard operation and that
it therefore was not unreasonable for them to
refuse approval of the vessels nominated by
charterers, on the basis that they had concerns
about the STS operation itself.
The judge, however, found that their
withholding of approval was unreasonable.
The owners argued on appeal that their
submission was well founded and that the
judge had been wrong to reject it. The owners
also appealed on the grounds that the judge
had misconstrued the STS Lightering clause
by constraining owners' freedom beyond the
simple requirement that they should not
behave unreasonably.
The Court of Appeal agreed with the judge's
findings, in particular holding that:
While there might be some force in the
proposition that a VLCC/VLCC transfer
was in a sense 'non-standard', it did not
follow that the owners had acted
reasonably in withholding their approval of
the VLCCs. Rather, it was necessary to
consider what particular reasons, if any,
there might be for owners to withhold their
approval.
The right to transfer was a right to transfer
to any vessel, including a VLCC. The fact
that the proposed transfer could be
regarded as non-standard was not of itself a
reasonable ground for refusal. If that were
so, the charterers' right to perform such an
operation would be illusory. The owners
must be taken to have contractually
accepted such risks as are inevitably
attendant on any VLCC/VLCC transfer.
What owners were required to approve was
the vessel and not the STS operation itself.
However, owners were not required to
consider the nominated vessel's
characteristics in a vacuum, but in the
context of the operation contemplated.
The judge had been right to dismiss
owners' submission at first instance that the
OCIMF Guide, in its then form, made no
mention of VLCC/VLCC transfers, and that
such operations were therefore not
permitted by that publication. The owners
had (as the judge had found) "a settled
policy or at the lowest had reached a clear
position that they simply would not allow
such a transfer," supporting the inference
that owners' refusal was based on their
aversion to VLCC/VLCC transfers in
principle rather than any particular
characteristics of the transferee vessel.
The judge was also right to find that the
owners would not be justified in
withholding approval of the vessels simply
because there was uncertainty as to whether
a suitable plan of operation could be
devised, or indeed whether there was
TANKEROperator

June/July 2014 12
INDUSTRY - LEGAL MATTERS - STS
sufficient time in which to plan any STS
operation. The required approval, as stated
above, related to the vessel and it was not
the function of the STS Lightering clause
to allow owners to vet the plans for the
transfer operation before deciding whether
to approve that vessel.
The owners' specific criticisms of the
mooring plan did not make a withholding
of approval reasonable. The judge had
found that the proposed arrangement was
safe in principle and that the absence of
head lines and stern lines was not
something which gave any reason for
concern. Further, owners' concerns
regarding the vertical aspect of the mooring
lines were found to be without foundation.
The appeal was therefore dismissed. The
owners have indicated that they will be
applying to the Supreme Court for permission
to appeal.
Comment
It is worth noting that about a year after the
first instance trial, on 22nd November, 2013 a
new edition of the OCIMF Guide was
published containing a section dealing with
ship-to-ship transfers involving vessels of a
similar length. The Court of Appeal decided
not to admit the new edition in evidence, but it
was noted in a postscript to the judgment that
the Court of Appeal regarded it as
underscoring the judge's decision that the
previous version upon which owners had
relied, did not intend to outlaw VLCC/VLCC
transfers.
The following comment from the Clyde &
Co legal update of July 2013 following the
first instance decision remains applicable
following the Court of Appeal judgment:
The Court construed owners'
reasonableness by reference to both the charter
terms and the specific facts of the case.
Although each case will be fact-dependant,
this decision provides useful guidance as to
how the Court is likely to construe similar
contentions made by owners in the future. For
example, an argument that there is insufficient
time to plan the STS transfer as a basis for
refusal to permit a STS transfer is unlikely to
succeed as this is a factor relevant to the
operation itself rather than being relevant to
owners' right to approve the nominated
vessel.
Owners should be aware that if they do not
act reasonably when considering charterers'
requests to perform STS transfers, they risk
finding themselves in breach of charter. This
case will give comfort to charterers that the
industry practice of VLCC to VLCC STS
transfers is not to be regarded as inherently
suspect, but must be properly considered by
owners on a case by case basis.
It also gives some guidance to owners about
the basis upon which they can and cannot
exercise their right to withhold approval. It
may, therefore, have wider implications for
other situations involving the requirement that
owners act reasonably in relation to their right
to withhold approval for operations that are
apparently permitted (subject only to such
approval) by the charterparty.
*A referewnce to this article apeared in a
recent issue of Maritime Advocate and it also
available on Clyde & Co's website. It was
written by the law firm's Hatty Sumption and
Peter Ward.
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Jiangyin Xinjiang
Ishihara Dockyard
Zhenjiang Marine
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Fire Extinguishers
Breathing Apparatus & Escape Sets
Medical Oxygen Resuscitators
Inatable Lifejackets
Immersion suits and gas tight suits
Calibration Services:
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Gas detectors, portable
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Temperature Calibrators
Calibration Gas, rellable bottles
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TO
INDUSTRY - DENMARK REPORT
June/July 2014

TANKEROperator 13
Danish fleet expands
on the back of
political investment
The majority of Danish shipping companies appear to have weathered the
storm better than most.
A
sympathetic government, flexible
labour relations a very active
maritime cluster involving most
of the segment players are just
some of the driving forces behind Denmarks
success.
The development of new technology by
Danish equipment manufacturers and
designers has also helped to reduce vessel
operating costs at a time when impending new
regulations threaten to swamp the worlds
shipowners with debt.
The year 2009 was particularly bad for the
Danish shipping industry, however, by the
following year, most of the losses suffered had
been recouped. Record foreign exchange
earnings were posted in 2012 and 2013 of
DKK195 bill and DKK201 bill, respectively,
according to figures produced by the Danish
Shipowners Association (DSA).
Shipping industry figures amounted to just
shy of 20% of total Danish exports for those
years and more than 50% of Danish services
export. Thus, shipping continues to be the
largest export industry in Denmark by a large
margin, the DSA claimed.
The ability of Danish shipping companies to
sustain that position can be attributed to the
companies quickly reconfiguring their
business models for lower global growth and
increasing their cost effectiveness, even as the
economic growth did not pick up as forecast in
the second half of 2013 and rates remained at
historical lows across most segments.
This is proof that politics actually does work
and further underscores the need to ensure that
the conditions to conduct maritime business
for Danish shipping companies to maintain
their current position as some of the worlds
most effective shipping companies, the DSA
said.
The Danish merchant fleet has never been
larger. This also applies to the employment in
the industry, both at sea and onshore, in
Denmark, as well as abroad. Almost 80,000
people are working directly in the maritime
industry, nearly 30,000 of them within
shipping. With another 35,000 persons
working in related sectors, altogether 115,000
people are employed in the maritime cluster in
around 11,600 shipping related companies.
Companies relocating
Denmark has been reasonably successful in
attracting shipping companies to relocate to
the country, most notably Swedish tanker
concerns, especially in the chemical sector.
Third party shipmanagement concerns are also
being targeted worldwide and the Danes
recently welcomed Thome Ship Management,
who set up a subsidiary in Copenhagen and
has since signed up its first vessel- a Danish
owned LPG carrier newbuilding.
The establishment of a new business is
claimed to be quick, cost efficient and easy
with online incorporation available. In 2016,
the corporate tax rate will be lowered to 22%
and there are no residency requirements
needed for a companys management, main
board, or supervisory board.
According to figures produced by the DSA,
After 17 years with NORDEN, of which for almost 10 years he was the as CEO, Carsten
Mortensen has resigned to take up the position of Group CEO at BW Group.
NORDENs board said that it is in the process of finding a successor, however, Mortensen
will be available in the interim.
He was head of NORDEN during a period when the company has developed into one of the
largest and best operated drycargo and product tanker companies in the world.
Mortensen is also the chairman of the DSA.
TANKEROperator

June/July 2014 14
INDUSTRY - DENMARK REPORT
the size of the Danish flagged merchant fleet
increased from November 2013 to May 2014
in gt terms, however, in dwt, the total was
largely unchanged at 14.7 mill.
Denmark is ranked 16th in the worlds flag
state listing with 420 vessels. For direct
ownership, the country comes in at No 11 with
772 vessels and for vessel operating, Denmark
climbs to No 7 with 1,742 vessels.
The Danish newbuilding programme grew
significantly between November and May with
105 vessels on order in May, totalling 4.7 mill
dwt, compared to 83 in November. Danish
domiciled tanker owners accounted for 40
vessels of 1.44 mill dwt.
Some 25% of the Danish fleet is engaged in
the tanker trades. As of 1st May, 2014, Danish
companies controlled 168 tankers of 4.9 mill
dwt of which four were oil tankers, 93 product
tankers, 70 chemical tankers and one LPG
carrier, the DSA said.
SOx - major concern
However, there is one major concern on the
horizon for Danish shipping and that is the
question of the SOx regulations. Tanker
Operator highlighted the DSAs stance on the
matter in the May issue (see page 2), but since
then, the DSA chairman - NORDENs CEO
Carsten Mortensen - has added his weight to
the argument as the associations annual
general meeting in May.
He said that the authorities were gambling
with both the environment and Danish
competitiveness if they fail to enforce the
upcoming sulphur standards. The rules
governing the use of shipping fuel containing
sulphur will be significantly tightened for
ships in the North Sea and the Baltic Sea from
1st January next year.
Unfortunately, it cannot be taken for granted
that enforcement of the reduction will go hand
in hand with the stringent rules, which will
increase the price of a single trip across the
Baltic Sea by an estimated DKK1 mill in low-
sulphur fuel costs. Only very few ships are
currently subjected to port state controls,
almost none of which include checking the
ships fuel, he warned.
The Danish shipping industry supports
ambitious environmental legislation, even
when it is financially costly. However, if ships
can continue sailing on traditional, sulphur-
containing fuel at virtually no risk and if the
penalty for discovery is a fine that in no way
matches the savings, some shipowners will
find it hard to resist temptation.
This poses a huge competitive problem for
Danish shipping companies and eliminates
the environmental benefit that was the whole
point of the legislation, he said.
He thought that Danish shipowners were
already losing long-term contract customers
who were choosing cheaper solutions that
deliberately neglect to take the future sulphur
requirements into account.
The DSA has long been in dialogue with
national and international decision-makers and
authorities. In April, together with other
organisations, such as the Danish Maritime
and the Danish Ecological Council, the
association went to the Danish Minister of the
Environment, Kirsten Brosbl.
The Minister said that she understood the
industrys concern and is committed to
working to ensure that the rules are adequately
enforced not only in Denmark but also in the
EU, where many national authorities were
giving the upcoming rules scant attention.
We appreciate the governments
responsiveness when one of Denmarks biggest
industries raises the alert. However, 2015 is
right around the corner and we are still
seriously concerned that the authorities have
failed to understand the magnitude of the
problem and its tangible consequences in terms
of the environment and Danish shipowners
competitiveness, Mortensen concluded.
Trident Alliance, the shipping
industry initiative for robust
enforcement of maritime sulphur
regulations, is well on track for
launch.
At a full-day meeting in Copenhagen on
28th May, hosted by Maersk Maritime
Technology and Wallenius Wilhelmsen
Logistics (WWL), representatives from a
dozen shipping companies negotiated the
basis for the new Trident Alliance.
The companies agreed that the Trident
Alliance will be a coalition of shipowners
and operators who share a common interest
in robust enforcement of maritime sulphur
regulation and are willing to collaborate to
help bring it about. The Alliance will partner
with other groups who share its interest in
robust enforcement, collaborating on
initiatives that support this objective.
The Trident Alliance principles and terms
of reference were agreed. The
representatives also agreed to work towards
the vision of a shipping industry with
effective enforcement of sulphur regulations
to ensure their intended effect is reached and
to eliminate the risk of distortion to the
competitive landscape.
In advance of the meeting, the initiative
received encouragement and support from
the EU's Commissioner for Climate Action,
Connie Hedegaard, along with the Danish
Minister for the Environment, Kirsten
Brosbl.
"The meeting in Copenhagen was highly
constructive and we all agree that the Trident
Alliance is the right way to handle this
challenge. The public support and attention
we received really added urgency and
focused the discussion. None of us want to
see this evolve into a coffee club; this is an
initiative that will get the work done,
said Roger Strevens, VP Environment
of WWL.
Trident Alliance on track for
launch
A pubic/private partnership has
been set up between the DSA
and, the Danish Maritime
Authority and Danish Maritime.
Called Danish Maritime Days, it is an event
that is due to take place between October 6th
-10th. During the week, a series of
conferences, briefings, exhibitions, symposia,
company visits, receptions and dinners will be
held.
At the heart of the week will be the Danish
Maritime Forum, which is due to take place
on 8th and 9th of October, which will bring
together maritime leaders, policy makers and
experts.
The objective will be to focus on the major
global trends affecting the maritime industry,
both short and long term, such as the
changing economic and geopolitical
landscape, new technologies, shifting energy
outlook, environmental pressures and
demographic developments, the organisers
said.
Danish Maritime Days
TO
INDUSTRY - DENMARK REPORT
June/July 2014

TANKEROperator 15
Northern European
tanker capital
As mentioned many times in Tanker Operator Magazine, Denmark is the Northern
Hemisphere capital of tanker operations.
I
n Copenhagen alone, there are some of
the worlds most influential tanker
owners and operators, especially in the
products and chemical segments, while
LPG/Ethylene carrier operation is another
growing area.
Starting with Maersk Tankers', its fleet of
product tankers is managed under three
different brands: LR2s through the LR2 Pool
with TORM, Handys and MRs through 100%
managed Handytankers and intermediate
tankers through the Swedish tanker company,
Brostrm, which was acquired in 2009.
Despite selling 15 VLCCs to Euronav for
$980 mill en bloc, Maersk still operates
around 150 tankers through the various pools.
The APM Moller-Maersk subsidiary benefited
from improved market conditions during the
first quarter of this year and posted a profit of
$28 mill, compared with posting a loss of $15
mill in the same period of 2013. The tanker
concern also managed to slash administrative
costs by 17%.
During the quarter, Maersk Tankers firmed
up orders for two more MRs at Sungdong,
bringing the total up to six to be delivered in
2016-2017. The company said that its core
business from now on in the wet trades will
focus on the product tanker market, having
sold its LNG and LPG interests and now most
of the VLCCs.
Thus far, two VLCCs have been delivered
to Euronav and the remaining 13 are to be
handed over starting in the second quarter of
this year through December.
As reported in the May issue of Tanker
Operator (page 43), a couple of years ago,
Maersk Maritime Technology (MMT)
analysed every vessel owned, which resulted
in the VLCC Maersk Ingrid undergoing tests
to establish how to reduce the fuel bill.
The vessel was fitted with a combination of
so called fuel saving devices, including a VTI
turbocharger, propeller boss cap fins (PBCF)
and ducts. Following several months of trials,
both with and without the enhancements, a
Mewis Duct together with a PBCF was
calculated to give a 6.2% saving. With all the
enhancements fitted and various other
equipment re-configured, including the de-
rating of the main engine, an 8% fuel saving
was claimed.
With the VLCC sailing at an average of
12.5 knots, the return on investment was two
and a half years, MMT said. The in-house
consultancy also advised that it was more
efficient in fuel saving terms to operate a
VLCC at a steady 13 knots, rather than vary
the speed between say 12 and 14 knots.
Maersk Tankers has been incorporated into
a new APM division- Services and Other
Shipping - with a profit target of $500 mill by
2016. The new division is headed by Morten
Engelstoft who took up the reins as CEO on
1st January this year. He was also appointed
CEO of Maersk Tankers, replacing Hanne
Sorensen who was switched to CEO of
Damco, another APM group company.
Services & Other Shipping consists of
Damco, Maersk Tankers, Maersk Supply
Service and towage and salvage concern
Svitzer. Around 65-70% of the latters revenue
comes from harbour towage, although the
company said that the area of salvage
preparedness was growing along with pre-
aligned training, standby and response related
services.
Also promoting their core product tanker
businesses are NORDEN and TORM. Both
companies also have drybulk interests,
although TORMs exposure to the drybulk
TANKEROperator

June/July 2014 16
INDUSTRY - DENMARK REPORT
trades has been reduced down the years.
Both operate pools, TORM with Maersk and
others, while NORDEN operates the Norient
Product Pool (NPP) with Interorient of
Cyprus, which is commercially operated from
Copenhagen.
NORDEN owns and operates both Handys
and MRs in NPP and similar to other tanker
operators, NPP is switching its chartering
policy to the spot market, as rates rise, rather
than be locked into long term deals. For 2013,
the company reported that its tanker earnings
were 7% above 12-month timecharter rates.
As at the end of last year, NORDEN owned
24 tankers and operated 46 in the range of
37,000 - 53,000 dwt. The vessels employment
and commercial operations have been
outsourced to NPP, which at any one time,
could operate up to 75-80 product tankers, of
which 80% are IMO II/III types.
In addition, NORDEN has another six
tankers on order - four in China and two in
South Korea - as part of the companys $1 bill
plus investment programme, which consists of
37 vessels overall.
NPPs charterers are roughly split between
oil majors (28%) and traders (72%). By using
the pool method, Lars Christensen, executive
vice president of NORDENs tanker division,
said market presence could be increased with a
greater coverage strategy, economy of scale
reduces operating costs, higher vessel
utilisation reduces ballast legs, plus the ability
to cover several geographical markets. He
claimed that these advantages gave the fleet
around 80% laden legs by being able to
operate in all geographical markets.
He admitted that the earnings for first
quarter of this year had been slightly
disappointing due to the warm winter in
Europe. However, he was optimistic going
forward pointing to increased US exports
driven by the shale gas revolution, refinery
closures in Europe and OECD Asia, which is
leading to higher trading levels and the
continued 5% fleet growth, which he
described as under control.
Christensen gave an example of jet fuel
being cheaper to refine at Jamnagar, India and
ship to Europe, rather than refine in Europe,
which resulted in a significant increase in
tonne/miles. The Middle East is emerging as a
major exporting hub for refined products, he
said. He also pointed out that today, oil majors
tend to charter vessels of no older than 12-15
years and that vetting of older tankers is
becoming much more stringent.
Supply code
In 2009, NORDEN and J Lauritzen
collaborated to start a a uniform responsible
supply chain management (RSCM) process.
This move was brought about by complying
with the UN Global Compact and UN Guiding
Principles (UNGP). The aim was to create a
Supplier Code of Conduct (SCoC), which
would become an industry standard.
Two years later, the partners sold the
concept to IMPA and it is now called IMPA
ACT. It offers a collaborative programme
between buyer and supplier and is a six step
process. In essence, it is aimed at collaborating
with suppliers to identify impacts on human
rights and to assist the suppliers in addressing
any failures. A database is currently under
development. Thus far, some five to six
suppliers have signed up to the idea,
NORDEN said.
SCoC is aimed at human rights,
environmental protection and anti-corruption
and is claimed to be the first of its kind. It
represents best practice and is aligned to the
UNGPs.
Last year, NORDEN contracted five
TANKERS - TRANSPORT PATTERNS
Gasoline/gas oil
from the USA to
Latin America and
Mexico
Gas oil/diesel
from the USA
to Europe
Gasoline from Europe
to the USA
Gas oil/diesel from the
Black Sea to Europe
Gas oil/diesel from the Baltic
States to Europe
Soybean oil from the East
Coast of South America to
India and the Far East
Palm oil from Indonesia to
Europe
Gasoline from Singapore
to Australia
Jet fuel from the Arabian
Gulf to Europe
Gasoline from India and
the Arabian Gulf to East
Africa
Gasoline from
Europe to West
Africa
Naphtha from the
Arabian Gulf and
India to Japan
Source: NORDEN.
INDUSTRY - DENMARK REPORT
June/July 2014

TANKEROperator 17








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suppliers under the scheme and said it had
received a positive response. The company
intends to engage with five suppliers per year
and a new clause will be inserted in a
suppliers contract with the company.
Also in 2013, tanker, drybulk and gas
carrier owner J Lauritzen made a strategic
decision to exit the tanker market and
concentrate on its drybulk and gas carrier
operations.
As a result, by the end of the first quarter of
this year, Copenhagen-based newcomer
Hafnia Tankers had taken over the 10 former
J Lauritzen owned MRs, which were sold to
Hafnia in October last year for $305 mill en
bloc.
Following this, the three shuttle tankers
were committed to Knutsen NYK Offshore
Tankers (KNOT) for $191 mill en bloc. They
were due to be handed over between April and
May of this year, once the various approvals
were given.
The Lauritzen MR fleet, both owned and
chartered in, were already operating in Hafnia
Tankers sister company Hafnia
Managements MR pool. Hafnia Management
was set up over three and a half years ago as a
commercial operation concentrating on MRs
and LR1s.
Thus far, Hafnia Management commercially
operates 25 MRs and 28 LR1s. The LR1s are
in a the Straits Tankers pool, which is a 50:50
joint venture operating concern with MOL. It
is the worlds largest LR1 pool, according to
Hafnia Management CEO Anders Engholm.
Members of the MR pool include
Gotlandsbolaget, LGR di Navigazione, Kirk
Shipping and Hafnia Tankers, which now
owns 40% of Hafnia Management. The LR1
pool members include MOL, Marinvest,
Nordic Shipholding, Hafnia Tankers, Tailwind,
Oldendorff Overseas Operations and Reederei
NORDENs Handysize Nord Mermaid.
TANKEROperator

June/July 2014 18
INDUSTRY - DENMARK REPORT
Nord. Marenave is due to join the MR pool
soon and Hafnia USA will be formed based in
Houston by 1st October this year.
Engholm explained that last year, the MR
pool earned $15,000 per day gross to the
owners of the vessels. He calculated that ECO
types commanded an extra $2,200 per day in
2013.
The management operates on a unique net
commission system, which is based on net
earnings (gross freight minus brokers
commissions, port expenses, bunker cost, etc)
whereas other existing pools base their
commisison/fee structure on the actual gross
freight.
This means - based on $15,000 per day
Hafnia Managements commission is (2.25%
of net earnings + $250 per day per vessel)
$588 per day per vessel, compared to just
under $1,000 per day per vessel charged by
other pools, Engholm said. The pools ballast
ratio for last year was 19%.
The first quarter of this year proved to be
disappointing with MRs averaging $13,461
per day and LR1s averaging $15,369 per day,
primarily due to a mild winter in Europe.
However, the operating expenses for the MRs
averaged only $6,500 per day.
He explained that the pools net commission
structure gives the manager the incentive to
minimise voyage related costs, whereas other
models focus only on the top line freight.
Engholm also said the the MR pools critical
mass is in the region of 50 vessels and the
LR1 pools critical mass would be in the
region of 35-40 vessels.
Hafnia Tankers was formed last year out of
Tankers Inc and CEO Mikael Skov emabarked
on a US road show to raise funds for vessel
acquisitions. Since then, nearly $500 mill was
raised, including $235 mill private placement
and funds managed by Blackstone and Tufton
Oceanic, as well as the Hartmann group.
This private placement enabled Hafnia
Tankers to fund the acquisition of J
Lauritzens 10 MRs and complete the order for
eight Eco MRs at Guangzhou Shipyard
International (GSI).
In January of this year, Hafnia Tankers
announced the finalisation of the purchase of
the BTS fleet of seven Handysize and two
LR1s in return for shares in the company. This
gave the fledgling company 19 vessels - seven
Handysize, 10 MRs and two LR1s, plus 14
newbuildings - eight MRs at GSI and six
Handysize product tankers at Hyundai Mipo.
The current fleet is technically managed by
Donnelly and Wallems Hamburg office.
Hafnia has yet to decide where to place the
technical management for the newbuildings.
Engholm was bullish for the future of
product tankers, due to refineries switching to
the Middle East and closing in Europe and
certain parts of Asia, which will increase
tonne/miles.
For example, the capacity from refinery
closures in Japan, Taiwan and Australia is
expected to be replaced by new capacity in the
Middle East and Asia. The new capacity will
also crowd-out old capacity, resulting in an
increase of refined products transported over
longer distances, hence more tonne/miles of
demand.
The number of newbuilding MRs peaked in
2008-2009, while there is little, or no yard
capacity left before the end 2016. Vessels
coming up to their third (15 year) or fourth (20
year) special surveys will probably be
scrapped, as ballast water equipment will cost
at least $2 mill to retrofit and drydocking costs
will be high, he said.
Each of the pools has a performance
department and each vessel is being tracked by
satellite. The information on vessel
performance is shared with the pool members
through a technical committee.
Gas carriers
As already mentioned, J Lauritzen had decided
to concentrate on the drybulk and LPG
markets. The latter comes under the banner of
Lauritzen Kosan (LK), which operated a fleet
of 13 fully pressurised, 18 semi-pressurised
and 11 ethylene carriers at the end of last year.
There were no newbuildings on order,
although another gas carrier joined the fleet
this year, bringing the total up to 43, of which
29 are owned, or bareboat chartered.
The fleet ranges between 3,000 cu m and
10,000 cu m in capacity. Going forward, LK
said that it will concentrate on fully pressurised
and ethylene markets. Last years earnings were
mainly derived from shipping petrochemical
cargoes, such as ethylene, propylene and
butadiene, plus LPG cargoes, including propane
and butane.
Technical management for 39 vessels is
conducted by LK fleet management, while
another four are looked after by Tokyo-based
Star Management. These activities are
maintained at a high level due to the various
regulatory and vetting requirements, including
adhering to TMSA and the CDI regulations.
A performance management department was
formed this year and a LK fuel saving project-
REJUICE is being implemented across the fleet
(see Tanker Operator, May, page 44).
REJUICE was started at the beginning of 2012
in co-operation with DNV.
LK is also co-operating with new Danish
ballast water treatment provider Bawat, by
which the 8,000 cu m ethylene carrier Henrietta
Kosan is being used to test a BWT system for
IMO approval. LK said that the Bawat
technology was one of several suitable for its
vessels.
Drybulk and tanker concern TORMhas
appeared to have weathered the storm that
nearly brought the company to its knees
recently.
It had to take drastic measures just to survive
following the loss of most of its top
management. These included offering its
stakeholders a share in the company to reduce
its exposure.
Although posting a loss before tax of $222
In November 2013, Claus Winter Graugaard joined Lauritzen Kosan as vice president and
head of fleet management.
INDUSTRY - DENMARK REPORT
June/July 2014

TANKEROperator 19
mill for the first quarter of this year, this figure
included an impairment charge of $195 mill,
which is a non-cash item. This compares with a
loss of $16 mill reported for the same period in
2013 when no impairment charge was
registered.
The tanker divisions operating result (EBIT)
was a loss of $203 mill, which also included
the $195 mill impairment charge.
For this year, TORM has adjusted the
forecasts to a positive EBITDA of $70-100 mill
and a loss before tax of $260-290 mill. The
forecasts were made before any possible further
vessel sales, or impairment charges. In addition,
TORM said that it expected to be operating
cash flow positive after full interest payments.
As at 31st March, 2014, TORM had covered
12% of the remaining tanker earning days in
2014 at $15,337 per day and 60% of the bulk
earning days in the same period at $11,466 per
day.
TORMs tanker division achieved LR2 spot
rates of $12,415 per day in the first quarter of
2014, which was 13% lower than in the same
period last year. The LR1 spot rates were
$15,579 per day, down by 7% year-on-year and
the spot rates in TORMs largest segment, MRs,
were at $15,207, which was a decrease of 14%
year-on-year. The one bright spot was the
Handysize spot rates, which were at $15,633
per day- up by 3% year-on-year.
During the first quarter of 2014, TORM
delivered two MRs that were sold in 2013 to
entities controlled by Oaktree Capital
Management. Oaktree has placed these vessels
under TORMs commercial management in a
revenue sharing scheme and under the
companys technical management.
Subsequently, TORM sold three LR2 and 10
MRs product tankers to Oaktree with deliveries
scheduled in the second quarter of 2014. Again
Oaktree will place the 13 vessels under
TORMs commercial control and technical
management.
As of 31st March, 2014, TORMs owned
fleet consists of 58 product tankers and two
drybulk vessels. Of these, 15 vessels were
classified as assets held for sale.
In addition to the 60 owned vessels, TORM
had chartered-in four product tankers and six
bulk carriers on longer timecharter contracts
(minimum one year) and one drybulk vessel on
a shorter timecharter contract of less than one
year. Another 28 product tankers were either in
a pool, or under TORMs commercial
management.
Nordic Shipholding Group is another
company to have thus far survived despite
having to deal with mounting debt.
For the first quarter of this year, the group
narrowed its loss before tax to $1.1 mill,
compared to a loss of $2.5 mill before tax in the
same quarter last year.
This was due to lower interest expenses of
$1.3 mill and no contribution in 1Q13 from
Nordic Ruth as she underwent repair and as a
result, was off-hire. Coupled with improved
freight rates, TCE earnings rose 27.9% to $7.3
mill in 1Q14, compared with $5.7 mill in 1Q13.
Nordic Shipholding managed to successfully
refinance its loans, which resulted in its net
finance expenses being lower at $0.8 mill in
1Q14, compared with $2.2 mill in 1Q13.
As at 31st March, 2014, two vessels -Nordic
Hanne and Nordic Agnetha- had been
transferred to two separate wholly-owned legal
entities in Singapore. A month later, Nordic
Amy, Nordic Pia and Nordic Anne were
transferred to another three wholly-owned legal
entities in Singapore.
Save for Nordic Ruth, a change of technical
managers for five vessels was completed with
Columbia Shipmanagement managing two
vessels and Thome Ship Management
managing three vessels.
On 19th May, 2014, the companys main
shareholder announced that it had established a
joint venture with BW Group in the product
tanker segment. Nordic Shipholding stressed
that it was not a party to this venture and it was
too early to say whether the company will be
impacted to any extent.
The board said in its report that it was
continually seeking suitable investment
opportunities in the product tanker segment to
grow the company.
Skangass is to undertake the LNG bunkering of the Temtank vessels using STS transfers from an LNG bunker tanker.
TANKEROperator

June/July 2014 20
INDUSTRY - DENMARK REPORT
One of the original Swedish Dons based
chemical carrier owners Trntank Rederi
celebrated its 50-year anniversary in 2008.
However, in order to be able to compete in a
global market, a year later, the company decided
to move to Denmark.
This move enabled the company to compete
at the same conditions as most of the shipping
companies around worldwide. Owner Olle
Kristensson and his family moved to Denmark
and in June 2009, Trntank was established in
Skagen. In June 2012, a cross border merger
was completed and Trntank Rederi became
Terntank Rederi.
In April of this year, Terntank acquired the
product tanker Sakarya, which was renamed
Ternvind. She was built 2008 in Daersan
Shipyard, Turkey, is of 11,258 dwt and is a
sister vessel to the Tarnbris. She will be re-
flagged to Denmark and will be chartered in-
house. The fleet now consists of nine product
tankers.
Late last year, the company hit the headlines
by ordering two LNG-powered 15,000 dwt
tankers with delivery in February and May
2016. The order also includes an option for two
more vessels.
With a newly developed Wrtsil dual-fuel
main engine and an advanced hull design from
Rolls Royce, the new vessels will be able to
meet all future regulations upon their delivery.
The vessels particulate matter emission will be
reduced by more than 90%, NOx by 80% and
CO2 by 35% and the vessels will be built in
accordance with IMO Tier III regulations, the
company said.
We will be using a large propeller together
with a large main engine that only needs 65% of
the maximum effect to reach a service speed of
14.5 knots. With LNG having a 10 to 15%
better energy value compared to marine gasoil
and with an optimised underwater hull design,
the vessels will have a fuel consumption of
between 13.5 and 14 tonnes per day, compared
to todays 22 tonnes for existing vessels of
similar size, said Jens Buchhave, Terntank
Rederis managing director at the time of the
announcement.
In order to cope with the higher building cost
for these vessels Terntank is, together with other
parties, working with ports and governmental to
gain a 90% reduction in port costs and fairway
dues.
The two tankers will be powered by a 2-
stroke, low pressure dual-fuel Wrtsil RT-
flex50DF engine and will mark the first
installations of this new engine (see Tanker
Operator, November/December 2013, page 24).
The selection of the Wrtsil RT-flex50DF
engine is a central feature of Terntanks Into the
future - Baltic SO2lution project, which is in
response to the European Commissions TEN-T
2013 initiative whereby Motorways of the sea
actions are identified to promote the
sustainability and safety of transport and to
improve either existing, or new maritime links.
This project supports the development of
more environmentally sustainable and energy
efficient shipping in the Baltic Sea region and
the building of an LNG infrastructure, as this
area has been designated an Emissions Control
Area (ECA).
These newbuild tankers will be among the
worlds most environmentally sustainable ships
and we are very proud of this. With the Wrtsil
engine technology they are Tier III compliant in
gas mode, which of course means that we can
operate in the Baltic Sea ECA without
restrictions. Moreover, we expect considerable
fuel cost savings. Conventional product tankers
of this size have an average bunker consumption
of 22 to 25 tonnes per day. With these
newbuildings we expect daily bunker
consumption of just 14 tonnes, said Tryggve
Mller, Terntank board member.
LNG bunkering
The Norwegian gas distributor Skangass will
deliver LNG to Terntank. The bunker
operation will conducted by ship-to-ship
transfer using the hybrid gas carrier Coral
Anthelia, which will start to operate for
Skangass this autumn, said Roger Gthberg,
sales and marketing manager at Skangass.
Finally, Nordic Tankers operates around 100
double-hull chemical tankers of between 1,500
dwt and 25,000 dwt transporting chemicals,
feedstock, vegetable oil, mineral oil, etc.
Following recent acquisitions, 33 tankers are
fully owned.
Headquartered in Copenhagen, Denmark,
Nordic Tankers has offices in Herning
(Denmark), Riga (Latvia), Golfe-Juan (France),
Stamford (Connecticut, US), Houston (Texas,
US), Bogota (Colombia), Mumbai (India) and
Singapore, the latter two through its pool
partnership with Womar Nordic.
Nordic Tankers was formed by amalgamating
a number of tanker operators, including herning
shipping, Clipper, Wonsild and Copenhagen
Tankers. herning was formed in 1963 and
acquired by the investment fund Triton in 2011.
A year later, Triton also purchased all the
chemical tanker activities from Nordic
Shipholding Group and amalgamated them with
herning shipping under the Nordic Tankers
brand.
As part of the consolidation strategy, some of
the vessels are operated in pools - the Nordic
Tankers 19,000 dwt stainless steel pool and the
Nordic Womar pool operating coated vessels in
the 10-25,000 dwt range. Nordic Tankers
claimed to have a relatively high contract
coverage in the chemical tanker market, thus
balancing the risks in a cyclical and volatile
tanker market.
The company operates stainless steel vessels,
plus MarineLine and epoxy coated vessels.
Technical management of the owned and long
term chartered vessels is handled by Nordic
Tankers and herning. Also some of vessels
operated are technically managed by third party
concerns and commercially managed by Nordic
Tankers.
Nordic Tankers is continuing its policy of
adding to the fleet and on 23rd May took over
the 14,732 dwt chemical tanker Clipper Ann.
She is fitted with 28 stainless steel tanks and has
been renamed Nordic Ann. The 2010-built
tanker was taken over in Houston and will
remain operating in the area under Nordic
Tankers technical and commercial management.
Earlier in the same month, Nordic Tankers
took delivery of the Turkish 5,606 dwt chemical
tanker Ayse S. She is an Ice Class 1A tanker
fitted with 12 stainless steel cargo tanks. To be
renamed Nordic Henriette. the vessel has been
registered under Maltese flag. She will undergo
upgrading work at FA Yard in Munkebo,
Denmark and was due to enter service in early
June.
In June, Nordic Tankers announced that it had
just completed the transactions for the
acquisition of the Clipper Mari and the Clipper
Aki.
The Clipper Mari was taken over in
Brunsbttel on 4th June, 2014 and has been re-
named Nordic Mari.
She is a 2010 Fukuoka-built, 19,355 dwt
stainless steel chemical tanker, ice class 1B,
with 20 cargo tanks.
Clipper Aki was taken over in Houston 10th
June, 2014 and was renamed Nordic Aki. She is
a 2011 Fukuoka-built,14,701 dwt stainless steel
chemical tanker, with 28 cargo tanks.
Both vessels will continue under technical
and commercial management of Nordic
Tankers.
"This completes our acquisition of four
stainless steel chemical tankers in less than three
weeks, strengthening our strong presence in the
higher end of the marked for sophisticated
chemical tankers," the company said in a
statement.
In February of this year, Per Sylvester Jensen
was appointed President & CEO. He replaced
Claus Thornberg who left the company. Jensen
has held senior executive positions with Eitzen
Chemical, Clarkson Shipping Services and
Odfjell.
TO
INDUSTRY - DENMARK REPORT
June/July 2014

TANKEROperator 21
Tanker designs
tailored for specific
requirements
Leading Danish independent naval architects, designers and marine engineers Knud E.
Hansen (KEH) has down the years put together a portfolio of tanker designs.
T
hese include 6,300 dwt (internal
project) 14,250 dwt, 16.000 dwt
(being re-designed and optimised),
19,999 dwt (pending) and 24,000
dwt IMO II types. The company also offers
designs for IMO I tankers and product tankers,
for example the basic design package for the
Stolt-Nielsen parcel tankers now being built at
Hudong Zhonghua. In addition, the company
can offer tanker designs, either with coated, or
stainless steel tanks.
The KEH design knowhow is based on
many years of experience mixed with very
experienced senior engineers, who were
heading up the design work for the Stolt-
Nielsen tankers. The companys senior
engineers have been managing chemical and
product tanker projects through their previous
work at Maersk Ship Design, KEH head of
machinery and systems Brian Bender Madsen
explained.
KEH is also working on the design of a
medium size LNG carrier for undisclosed
European interests and has also designed a
14,000 dwt asphalt/black oil/IMO II chemical
tanker powered by LNG for operations in
Canadian waters (St Lawrence River and the
Great Lakes).
The Canadian owner and KEH are currently
awaiting quotes from various shipyards to
build the vessel. This is a continuation of
KEHs strong market position in Canada, as
the company has been involved in specialised
designs for operating in the St Lawrence and
the Great Lakes. For example, in early 1965,
Ralph Misener commissioned KEH to design
the largest vessel in the fleet and the
companys first self-unloader. At that time, the
deck mounted self-unloading system was
unique on the Great Lakes, Madsen said.
Taking the 24,000 dwt IMO II type design
as an example, KEH said that the design
method is based on long term experience on
ship design and is undertaken in in co-
operation with leading tanker operators.
Using advanced software tools for
predicting optimum propulsion power, hull
lines, stability, energy efficiency, cargo
capacity, segregations and hull structural
scantlings, KEH claimed to be able to
guarantee a low EEDI.
As an example, the new ultra long stroke 2-
stroke engines have to some extent changed
the way of designing vessels/hulls, as today
the aft part of the vessel is more, or less
designed around the main engine with the
focus on the interaction of propeller geometry
to maintain overall propulsion efficiency.
This design is in compliance with IACS
Common Structural Rules, IBC code and
OCIMF. The vessel is optimised at the lowest
energy consumption for a number of different
drafts/cargo capacities considering optimal
cargo volume, hull structural mass and ballast
tank layout.
An example of a KEH designed tanker in
service is the 6,300 dwt IMO II type chemical
tanker Inge Wonsild, since renamed Nordic
Inge, which was completed in 2005.
The vessel was designed by KEH for
Wonsild & Sn (now part of Nordic Tankers)
as a stainless steel chemical carrier, IMO II
and III, and for oil products, capable of trading
worldwide.
KEH undertook the conceptual and basic
design, including general arrangement, outline
and building specications, lines plan, speed
and power prediction and verication,
stability, midship section and other structural
drawings.
For optimisation projects, Madsen explained
at Tanker Operators recent Copenhagen
conference that for old and bad designs there
are many solutions, as there are for larger
tankers. But for smaller and newer tankers,
there are only a few enhancements that can be
undertaken.
He said that the general characteristics of a
full-form/high block coefficient vessel such as
a tanker are;
60-80% of the hull resistance is in the form
of viscous resistance.
10-20% can be attributed to wave
resistance.
5-10% to hull roughness.
Up to 5% to air resistance.
The largest areas for improvement here lie in
optimising the hull form (optimising carrying
capacity), applying smooth coatings and
keeping the hull and propeller clean. For
tankers already in operation, hull form
optimisation has very limited applicability.
However, for newbuildings it has a high value,
he added.
Madsen advised owners to quantify the
operating costs of a vessel before embarking
on an optimisation programme. He listed the
operating parameters and approximate costs
for a 300,000 dwt VLCC, plus the savings that
could be accrued -
Specific fuel consumption at sea = 175
g/kWh
Specific fuel consumption in harbour = 200
g/kWh
Power consumption at sea = 22,050 kW/h
Power consumption in harbour = 500 kW/h
Days at sea = 295
Days in harbour = 70
HFO fuel cost= $650 per tonne
LSFO cost = $950 per tonne
Average daily consumption = 92.61 tonnes
Overall annual cost at sea = $17,757,967
Overall annual cost in harbour = $159,600
Total overall annual cost = $17,917,567
A 2% design optimisation annual saving =
$355,159
A 6% design optimisation annual saving =
$1,065,478
A 10% design optimisation annual saving
=$1,775,797
For a 110,000 dwt Aframax, the 2% design
optimisation annual saving would amount to
TANKEROperator

June/July 2014 22
INDUSTRY - DENMARK REPORT
$224,693; 6% =$674,078 and at 10%=
$1,123,463.
A 50,000 dwt MR at 2% = $115,970; 6% =
$347,911; 10% =$579,852.
A 30,000 dwt Handysize at 2% = $86,978;
6% = $217,445; 10% = $434,889.
A 19,999 dwt Handysize, at 2% = $50,737;
6% = $152,211; 10% = $253,685.
A small 6,500 dwt design at 2% = $36,241;
6% = $108,722; 10% = $181,204.
Madsen outlined a case study of retrofitting
ducts on six VLCCs. The client needed a
simplified approach with a minimum saving of
5% per vessel with a maximum return on
investment of 12 months. In addition, the
vessels had to remain in service. The
quantified savings equal to 5% was calculated
at $900,000 per year. Other energy saving
devices were considered, but didnt comply
with the ROI request.
Breaking down the costs involved-
Duct manufacturers design fee =
$175,000.
Ducts materials = $500,000 per vessel.
Project handling = $25,000.
Finance costs = $20,000 per vessel.
Total cost per vessel = $555,000.
Model test results had shown an annual saving
of 6-10%, depending on speed and trim.
Fitting a duct on newbuildings would also
be applicable, as could a waste heat recovery
system with a ROI of 12 months.
Another case study looked at a duct retrofit
on a 24,000-30,000 dwt chemical tanker. The
client required retrofits on six vessels with a
minimum saving of 5% per vessel and an ROI
of one year and again, the vessels must remain
in operation.
The amount of saving quantified for a 5%
saving was around $215,000 per year. The
total cost similar to that outlined above would
be $242,000 per vessel. The estimated results
showed a 3-6% saving, depending on speed
and trim and the ROI would fall within the
one year time frame.
Answering the question- why should tanker
owners involve a design house- Madsen said
that KEHs business model is that it does not
believe in standard vessels, as owners
demands are different even though they are
competing in the same world. Therefore, the
company tailors each vessel design to fit each
specific owners requirements.
Historically (before fuel prices became a
game changer), cargo vessels were optimised
for quite a high design speed. For example, for
tankers it was not unusual that they were
optimised for 14 - 16 knots. The selected
speed was for some time only based on
traditions and nice to have .
When KEH starts to tailor a vessel for a
specific owner, the company strongly
recommends that the owner collects actual
operational data. This data is a very important
input to find the optimum design speed for a
vessel. Experience shows that in many cases,
the optimum design speed is much less than
the design speed of an owners existing
vessels, Madsen said.
With the vessels operational profile,
KEH is able to run its unique iterative design
spiral.
The output files define design criteria, such
as :
General arrangement.
Cargo layout.
Cargo tank configuration
Structural configuration and integrity.
Machinery configuration analysis.
Optimum main dimension analysis.
Initial stability check.
Vessel overall efficiency.
Future legislation.
Given the forthcoming SOx and NOx
limitations, owners can gain a big advantage
by renewing their fleet now, Madsen warned,
as many of KEHs projects show that
retrofitting for compliance for future SOx
limits is very costly compared to fitting same
equipment on a newbuild.
Length, oa.............................................................................163.50 m
Length, bp.............................................................................159.00 m
Breadth, moulded...................................................................27.00 m
Depth to main deck................................................................14.00 m
Displacement..........................................................................31,650 t
Draught......................................................................................9.20 m
Service speed, loaded................................................................15 kn
Delivered power (85% MCR, sea margin 15%)..................6,910 kW
Tank capacities
Cargo................................................................................30,500 cu m
Heavy fuel oil.....................................................................1,000 cu m
Diesel oil................................................................................150 cu m
Luboil.......................................................................................50 cu m
Fresh water............................................................................200 cu m
Ballast water.....................................................................11,900 cu m
Principal Particulars - KEH 24,000
dwt IMO II Chemical Tanker
KEHs 24,000 dwt IMO II chemical tanker design.
TO
INDUSTRY - ANTI-PIRACY
June/July 2014

TANKEROperator 23
T
he shipping industry and coastal
countries in West Africa should
increase levels of training and co-
operation to prevent maritime
crime from spreading in the region, warned a
maritime security company.
Nick Davis, CEO of GoAGT, said: When
there was instability of this type in East
Africa, piracy began spreading rapidly in the
waters off Somalia. Simply put, piracy offered
a viable economic alternative. In West Africa,
the persistent threat to shipping and
infrastructure is widespread, costly, and
dangerously under reported, and with few
barriers to entry other than speedboats,
weapons and desperation, it could spread to
the north.
The situation demands a co-ordinated
response like the UKMTO and MSC-HOA for
the whole of West Africa. This idea has been
floated for a while, however, the multilateral
naval co-operation that exists between coastal
nations around the world, which has helped
enormously in Somalia, seems to be far from
reality off the West coast of Africa. Countries
in the region dont seem to be willing to co-
operate, or even agree on a structure for a
reporting system, and this is essential to tackle
maritime crime at source before it becomes a
major problem., he said.
GoAGT has also called for maritime security
to be regulated through an EU wide policy to
avoid a costly plethora of national standards.
Gerry Northwood OBE, GoAGT, COO said:
At the moment EU member states are
legislating independently and creating an
incoherent patch work of regulations across
Europe for private maritime security services.
Collectively, these are expensive to implement
and this additional cost is inevitably passed
onto the shipping companies.
His comment follows the recent decision by
a political faction in the Netherlands House of
Parliament to block the cabinets plan to allow
security on Dutch vessels sailing in the waters
off Somalia, where piracy is still a latent threat.
Northwood said: Just as the EU has
provided a clear and transparent policy for
managing aviation matters across the region,
there is a good case for it becoming more
involved in member states maritime transport
policy. The reputable maritime security
companies have good training standards and
flag states therefore have less to fear than they
did when this industry started out back in
2008/09.
With ISO/PAS 28007, we have an
international standard that distinguishes those
private maritime security companies that are
capable of delivering a professional service.
However, ISO/PAS 28007 still needs to be
broadly adopted as the international
regulatory standard, and flag states should start
to recognise this so that there is a uniform
criteria, he said.
Videotel has unveiled a new programme
Working with Maritime Security Guards
which was developed in conjunction with
the Security Association for the Maritime
Industry (SAMI) and BIMCO and was
produced in association with Steamship
Mutual.
There are legal and safety risks associated
with the use of armed guards and so it is vital
to choose a PMSC that offers highly competent
and professionally trained guards who have
demonstrable experience in protecting ships
against pirate attacks, explained Nigel Cleave,
CEO of Videotel.
Once the guards are on board they must be
successfully integrated with the crew on both a
personal and a professional level. To reinforce
this message we have used first-hand accounts
from a company security officer (CSO), a
PMSC operations manager and a guards team
leader, he said.
The course provides shipping companies and
personnel on board ship with useful guidance
on how to engage and work successfully with
armed guards, from selecting the PMSC
through to the guards disembarkation at the
end of their deployment.
Voices raised in
condemnation of
West African
situation
In the wake of yet another tanker hijacking off West Africa, momentum is
gaining to try to sort this problem out.
TO
Guards are difficult to place around the Gulf of Guinea.
TANKEROperator

June/July 2014 24
TECHNOLOGY - BALLAST WATER TREATMENT
Owners fearful of
BWTS installations
before ratification
Although the number of countries needed to ratify the IMOs Ballast Water Convention
has been exceeded, the total tonnage needed remains short of the target.
T
hus far, 38 flag states (30 required)
have signed up to the convention
aggregating 30.38% of the worlds
tonnage. The percentage required
is 35%.
It is now 10 years since the convention was
passed at the IMO. However, there has been
strong resistance to signing up to the
convention due to -
1) An unrealistic implementation schedule.
2) The type approval procedure for a ballast
water treatment system (BWTS) is not deemed
robust enough with shipowners saying that
they cannot reply on type approved equipment
to undertake the task needed.
According to Danish pump and BWT
technology concern Desmi, the
implementation problem was largely covered
by an IMO resolution in December last year.
However, the problem with robust type
approvals still persists, but could be easily
solved, Desmi said. The company said that all
the systems on the market have their
limitations, which mainly concerns salinity, or
temperatures, or UV transmissions, while
some type approved systems will fail under
fairly normal conditions, which could cause
shipowners to suffer expensive detentions and
heavy fines.
Desmi proposed what the company claimed
was a simple, yet effective, solution - IMO
should create and maintain a simple overview
of each type approved systems limitations and
then based on the operational profile of the
vessel, a shipowner can select a system to suit
and which will meet the D2 discharge
standard.
If the problem is not resolved quickly, then
the industry faces the nightmare scenario of a
patchwork of regional legislation, Desmi
warned.
According to Goltens Green Technologies,
once the convention enters into force, some 12
months after it is ratified, a $30 bill retrofit
market will be created, which includes some
13,722 tankers out of a total of 77,768 vessels.
At a presentation in Copenhagen recently,
Desmi explained that in 2009, the company
formed a joint venture to design and
manufacture BWTS with AP Moller-Maersk
and water resource technology concern
Ultraqua. As a result, Desmi Ocean Guard was
formed.
To date, two patented systems have been
developed - OxyClean and RayClean. The
former, designed for extremely challenging
water conditions, received various type
approvals last year, including the first system
to gain a USCGs alternate management
system (AMS) acceptance in October 2013 for
all salinities.
As for RayClean, IMO and DNV type
approvals were expected in June of this year.
It has also been tested under USCG
requirements and has been designed for use in
fresh, brackish and seawater, the company
said.
Global sales and a service network is
conducted in close collaboration with Desmi
Pumping Technology and though agents in
Greece, Turkey, Singapore, US and Japan.
Despite a slow take up, mainly due to the
convention not being ratified, by the second
quarter of this year business had picked up,
with 16 systems on order and quotes out
valued at more than 35 mill, the company
said.
Desmi CEO Rasmus Folso told Tanker
Operator that the company was currently
working with a German concern to develop an
X-proof version by the end of this year. The
company has a manufacturing facility at its
base in Aalborg, but could move to China in
the future, he said.
Contamination test
Goltens has signed an exclusive
distribution agreement with Cambridge UK
based BACTEST to sell its portable
contamination test Speedy Breedy into the
ballast water testing market.
Under the agreement Goltens will sell
Speedy Breedy through its global network of
stations to shipowners, BWTS manufacturers,
port state authorities and ultimately the US
Coast Guard.
In anticipation of ratification of the IMO
convention, over 2,000 ships have installed
BWTS and Speedy Breedy is claimed to be
the only instrument on the market that can be
used on ships, or in port, to test for
compliance with the IMO standard for the
three bacteria as set out - Vibrio Cholera, E
Coli and Enterococci.
Commenting on the new relationship,
Goltens Rotterdam managing director Maarten
Jeronimus said We have been looking for a
product like Speedy Breedy for some time to
complement our BWTS business. Speedy
Breedy is quite unique. We will be actively
promoting Speedy Breedy to both our
customers and colleagues in the maritime
industry.
BACTEST is a Cambridge UK based
venture backed company, which launched
Speedy Breedy last year. It is claimed to be
the worlds most versatile portable microbial
contamination test kit and weighs only 3 kilos
and is about the size of a bread loaf. It does
not require laboratory conditions, or experts,
to interpret test results, the company said.
Legal minefield
At the recent Dubai BIMCO annual
conference, ballast water management (BWM)
was one of the main topics on the agenda.
As well as case studies from Wrtsil, Alfa
Laval and ClassNK, Ince & Co also warned
about crucial contractual issues that owners
should be aware of.
The technical speakers highlighted that the
critical decisions for shipowners were not just
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TANKEROperator

June/July 2014 26
TECHNOLOGY - BALLAST WATER TREATMENT
which type of system they should choose, but
when to invest and implement the system.
Its clear that during the last 10 years since
the adoption of the convention, development
of the management systems has been rapid
and that flexibility was a byword flexibility
both in terms of the capacity that can be
provided and in terms of the space the system
can fit into, which is crucial for retrofits. The
choice of system depends on the type of ship,
its operation and the route of its voyages, the
speakers said.
However, the question of USCG type-
approval remained a clear reason for
shipowners to wait a little longer before
investing. No BWTS has yet been type-
approved by the USCG as it has only
approved products to the level of an AMS.
As one speaker pointed out, any AMS
installed now might have to be removed, if it
does not obtain final USCG type-approval
when the convention comes into force.
Speakers expected that most owners will
therefore wait to benefit from further
development and invest in a fully approved
system.
Fionna Gavin from Ince & Co gave a
warning to shipowners about the contractual
issues that may arise with upcoming
regulatory requirements. Mrs Gavin said that
many shipbuilding contracts were not detailed
enough in this area, requiring only that a
BWM system compliant with current
regulations is installed not considering the
differences in the system that might be
required depending on the proposed usage and
route of the new ship.
She also identified an important issue for
the trading limits of timecharters for
example the decision of when to invest in a
BWTS to do so before being certain of its
efficiency and USCG approval, or to wait and
take the risk that trade will then be limited
when the ship is no longer in compliance with
regulations?
The example of the past case of the Elli
and the Frixos (The "Elli" and The "Frixos")
[2008] EWCA Civ 584: 23 May 2008) was
shared with delegates, which illustrated this
problem very clearly.
A timecharter stated that the ships were to
be in every way fit to carry crude and/or dirty
petroleum products and to be in every way
fit for service when the vessels were delivered.
These stipulations were met, but the charter
was still running with 18 months left when
MARPOL was amended, leaving the ships no
longer in compliance for carrying that type of
cargo and not eligible for an extension.
The charterers then found it difficult to
obtain contracts and were forced to do less
lucrative work and in time withheld from the
owners part of the hire that would have been
calculated based on the profits from their
intended type of contracts.
The owners then claimed that part of the
hire, arguing that the charterers were
contractually obliged to restore the vessels,
taking any steps necessary to carry dirty crude
under the new regulations.
The charterers won the case, claiming that
the change in regulation meant that a major
refit was required to carry dirty crude and
therefore it was not a case of restoring the
vessel to that condition. Despite an appeal
from the owners, the High Court held that the
vessel should be physically and legally fit
when returned to charter, leaving the owner
liable.
Significantly, no judgement has yet
overruled this and so the session concluded
with a warning that shipowners should not
assume that if a ship has been delivered under
timecharter, they will not need to invest to
move it into future compliance, she stressed.
Mobile BWTS
Damen Shipyards Group unveiled its new
mobile BWTS at Posidonia.
The new in-house technology bolsters
Damens so called ballast water centre of
excellence, which advises fleet managers on
total BWT solutions for retrofits and
newbuilds worldwide.
The fully containerised, mobile Damen
InvaSave BWT unit provides shipowners with
a cost-effective alternative to retrofitting fixed
BWTS. In addition, Damen has developed the
worlds first mobile treatment vessel to operate
in ports and support ship de-ballasting
operations.
The first of these customised Damen barges,
fitted with the InvaSave units, is now under
construction for service in the Dutch ports of
Eemshaven and Delfzijl.
Gert Jan Oude Egberink, Damen manager
BWT, said: We have been looking into what
we can do to help our customers regarding
BWT and finding alternatives for those owners
that may not want to retrofit a BWTS, perhaps
because their ships operate on fixed routes, or
their ships are too old and make the
investment in a system prohibitively
expensive. Ports may also need to provide
back-up, in case a ships on board treatment
systems fail.
As well as avoiding considerable retrofit
investments, the mobile solution means ballast
water only needs treating at the point of
discharge, in contrast to fixed on board BWTS
that also need to treat ballast water at intake.
Damen said that it is able to deliver the
system as a separate mobile container, which
can be put on board, or moved around the port
on a truck. Each InvaSave container unit
handles 300 cu m per hour and is claimed to
be easy to scale up if required by using
multiple container units.
The system has been tested in the
challenging waters of the Wadden Sea and the
IJsselmeer in the Netherlands and is currently
being certified by the Dutch flag state.
This is all in-house technology and is very
simple to use essentially it is a plug & play
system in one container, Oude Egberink
continued. Vessels only need to have a deck
connection. Using this mobile treatment unit,
owners and operators will be fully compliant
with both the IMO and US regulations.
He told Tanker Operator; Our InvaSave
mobile ballast water discharge technology is
aimed at all vessel types that need to comply
with Ballast Water Management regulations.
We can scale up the capacity to match the
need of tankers.
Retrofit solution
In addition to its own mobile BWTS, Damen
can also advise on type-approved BWTS for on
board retrofitting, as well as retrofit
engineering and installation. Damen Shiprepair
& Conversion has 16 repair and conversion
yard facilities with 40 drydocks worldwide.
Damen can undertake the on board survey,
3D scans, onsite surveying and pre-
engineering, the integration plan, purchasing,
manufacture the piping, make all the
preparations, do the installation and
commissioning, carry out the trials, plus
provide training and supply the BW
management plan.
If vessels are coming in for their special
survey when the system has to be installed, we
can do both things at once, providing a turnkey
solution, Oude Egberink said. We can install
Damen selected technology, or our customers
choice of unit at a Damen, or a non-Damen
yard, or afloat. I think there is no other
company that has this one-stop-shop, with both
the yard and engineering capacity and a vast
knowledge of shipbuilding. We can be the
BWT total solution provider and our customers
have a trusted partner and peace of mind.
Our One Stop Retrofit Service is also aimed
at tankers. Pending IMO BWMC ratification,
there have not been so many BWT refits in the
market yet. But with the deadlines of USCG
approaching in 2016, many operators are
starting to make their reparations, he told
Tanker Operator.
TO
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Suitable for hazardous cargo area installations
Surpasses IMO D-2 standards by ten-fold
To learn why BALPURE is the right ballast water treatment solution for you,
contact sales@severntrentdenora.com or visit www.balpure.com
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USCG CERTIFIED
ALTERNATE
MANAGEMENT
SYSTEM (AMS)
TANKEROperator

June/July 2014 28
TECHNOLOGY - BALLAST WATER TREATMENT
BWTS potential
effect on ballast tank
coatings
Hempel has circulated an open letter on the possible effect of ballast water management
systems (BWMS) on ballast tank coatings.
N
umerous BWMS are being
developed and marketed to meet
the future demands for such
systems according to the BWM
Convention.
Today more than 70 different systems are
commercially available, or under development.
Every BWMS must be type approved by the
flag state (G8 approval process) and further, in
case the system makes use of an active
substance, an additional approval procedure
(G9 approval process) is to be followed,
whereby the approval is granted by IMO.
The methods for achieving the required
quality of the treatment of the ballast water
differ among the systems and often a
combination of methods is used.
It is virtually impossible for paint
manufacturers to readily assess the possible
influence of all such systems particularly
those involving chemicals on the ballast tank
coating systems without detailed information
and maybe testing of each individual BWMS.
The general anticipation, however, is:
BWMS relying solely on mechanical
treatment (physical separation)
technologies will not adversely affect the
installed ballast tank coating.
BWMS relying on physical treatment
technologies should not adversely affect the
ballast tank coating.
BWMS using UV light might produce, eg,
ozone, which rapidly reacts with seawater
compounds, or other organic matter. Such
systems may require testing to fully assess
their eventual influence on ballast tank
coating systems.
BWMS using (generation and) addition of
chemicals to the ballast tank water in
general should be tested for assessing the
compatibility with the ballast tank coating
system.
It is the responsibility of the BWMS
manufacturer to assess the compatibility
between the system and the ballast tank
coating.
Information assisting such assessment is
available in the public domain, but until
recently there was no commonly accepted way
of assessing the potential influence of BWMS
on ballast tank coatings by testing.
Standard test
This changed after MEPC 66 (31st March-4th
Apr 2014), where a standardised test
procedure was agreed with a view to be
employed for BWMS type approvals.
Hempel has carried out such testing of its
ballast tank coatings especially against the
most commonly used active chemical in G9
systems - hypochlorite.
During this testing,
which comprised constant
immersion in hypochlorite
treated seawater at 30 deg
C with weekly addition of
freshly prepared
hypochlorite, damage to
the coating in way of rust,
blister formation,
bleaching, or decrease in
hardness, was not
observed at concentrations
up to 10 ppm of free
chlorine.
Hempel therefore
recognises that BWMS
working solely with
chlorine as an active
ingredient with maximum
concentration of 10 ppm of
free chlorine can be
accepted without further
need for testing of
potential effect on ballast
tank coatings.
This is also in
accordance with IMO
MEPC 64/INF.21
submitted by the
International Paint and
Printing Ink Council
(IPPIC).
Further information about the effect in
ballast tank coating of BWMS using other
active ingredients than chlorine and/or using
chlorine in higher concentrations than 10 ppm
must be provided by the BWMS supplier and
may require further testing according to the
above mentioned agreed test procedures for
proper assessment of the compatibility
between the BWMS and the ballast tank
coating system.
Hempel is available for advising and/or
assisting in carrying out such testing, the paint
manufacturer said.
TO
International Registries (U.K.) Limited
,('tc .t te /s'' |s'!s /te 8 Cc,cte !sttcs
tel: +44 20 7638 4748 | london@register-iri.com | www.register-iri.com
THE MARSHALL
ISLANDS REGISTRY
service and quality are within your reach
TECHNOLOGY - EMISSIONS - FUEL QUALITY
June/July 2014

TANKEROperator 29
Managing fuel
quality - meeting
regulatory
requirements
For shipowners and operators, maintaining fuel quality at a time of tightening regulation
requires a clear understanding of the challenges.*
I
ts a hard but inescapable fact that the
quality of marine fuel used across the
worlds shipping fleet has been
deteriorating over many years. This has
largely come about as a result of changes to
the refining process, which have had a serious
impact on fuel quality and consistency.
At the same time, environmental legislation
designed to reduce sulphur emissions is
presenting technical challenges to bunker
suppliers and owners, since both low sulphur
residual fuels and ultra-low sulphur distillates
can exhibit specific problems, which can
potentially cause problems in operation.
Taken together, these changes will have a
profound impact over the next 10 to 15 years
as refinery output shifts towards new fuels and
the next wave of pollution regulations begins
to bite.
Across the maritime industry, the pressure to
increase efficiency, reduce operating costs and
limit environmental impact is bringing vessel
speeds down. The effect of increased costs for
the low sulphur fuels needed to operate in the
ECAs is being felt at the same time as freight
rates remain low for many operators, forcing
the requirement to adopt slow steaming
procedures.
It is now widely understood that slow
steaming can reduce the amount of fuel
consumed during a voyage and at the same
time reduce carbon emissions significantly. A
speed reduction of 20% can lead to more than
30% cost saving on the fuel used and bring a
similar reduction in the amount of CO
2
emitted.
Yet against these positives, the primary
disadvantage associated with slow steaming is
that ships engines were not always designed to
operate under these conditions for long
periods. The result can be poor combustion in
the engine at low loads, which can reduce
efficiency through a build-up of soot deposits
in the engine and exhaust gas economiser.
Such problems are exacerbated by the
overall decline in fuel quality. When shipping
companies buy fuel from bunker suppliers, the
product they receive is generally a blend of
residual fuels and various cutter stocks. The
suppliers must meet the owners specification
and ISO standards for bunker fuel and as long
as the product meets the agreed specifications,
their contractual obligation has been met.
These specifications, however, are not a good
guide to the real quality of the fuel when
presented to the engine or boiler for
combustion.
An unstable blend
Because low sulphur residual fuels are today
mostly blended to specification from a residual
source that has gone through a secondary
conversion in a refinery, the fuels stability is
in many cases very poor.
A particular problem is the increased
severity of the viscosity-breaking process used
by petroleum refiners to meet the increasing
demand for automotive and aviation fuels. The
blending process can cause severe instability
problems in the fuel, which may not be
apparent immediately, but which can cause
severe problems with asphaltenic sludge in
tanks, filters and from the purifier.
The accepted, mechanical means of treating
fuels on board ship are by settling, separation
and filtration, all of which have a limited
physical effect on fuel combustibility. Fuel
problems that begin in the refining process can
be aggravated during shipping and blending.
For owners who want to protect their
investments, many of these issues can be
solved by chemical treatment, which has
proven to be an economic solution to
improving the quality of the fuel and improve
its properties to a reliable level.
Fuel treatment chemicals can be divided into
three categories, pre-combustion, combustion
and post-combustion additives. The types of
additives available today are sometimes
combinations of these categories, designed to
solve the different problems end users are
experiencing.
The issues discussed above relating to
residual fuel will continue to apply on a global
basis, even after the global sulphur limit drops
to 0.5% in either 2020, or 2025. However,
inside the ECAs, where the sulphur content of
the fuel used can be no more than 0.1% after
1st January, 2015, a more radical change will
take place. Owners face the choice of
WSS Jonas stlund.
TANKEROperator

June/July 2014 30
TECHNOLOGY - EMISSIONS - FUEL QUALITY
complying with the ECA rules through the use
of distillate fuels, or alternative abatement
methods, such as sulphur scrubbers.
Quality problems when using distillate fuels
are fundamentally different from those of
residual fuels and focus around lubricity,
storage stability and microbial contamination.
Lubricity problems are most likely to happen
in the fuels with a lower sulphur content than
0.1%.
The reduction of sulphur is often blamed for
the problems of lubricity with modern fuels.
But this is not entirely true, as the same
refining process during which sulphur is
removed also removes other natural lubrication
components. This means that fuels with similar
sulphur levels can have different lubrication
properties and sulphur level is not always a
safe indicator for lubricity properties of a fuel.
Most distillate fuels are vulnerable to
degradation through a range of reactions. The
results of this degradation can include colour
change, as well as gum and sediment
formation. These can have a severe effect on
quality during long term storage and can also
induce corrosion of the fuel system.
What is not widely known is that distillate
fuel is treated by the refinery with a stabiliser
to protect it against deterioration for six
months. When the six months have elapsed, the
fuel is more or less unprotected from further
deterioration. Owners should consider carefully
the addition of a multi-function fuel stabiliser
during bunkering, which will add protection
against oxidation, sedimentation, colour change
and corrosion.
Practical solutions
Understanding marine fuels at a time when
their regulation and performance are subject to
so much change is an additional challenge to
shipowners already facing higher costs and
pressure to slow steam in order to maximise
earnings.
Given the variable quality of residual fuels
today and the lubricity and storage issues
around low sulphur distillate fuels, there is a
clear need for regular testing and treatment to
ensure that maximum value can be extracted
from the fuel. And it is critical to understand
that many of the problems encountered on
board ship are not related to operation of the
engines, but to the fuels used. This clearly
underlines the need for fuel treatment to be
integrated into the vessels maintenance
schedules.
Building on 30 years of experience
delivering fuel treatments to the maritime
industry, Wilhelmsen Ships Services (WSS)
Unitor FuelPower range applies the most
advanced technologies to make certain todays
fuels can be used with confidence, regardless
of fuel stability, or slow steaming.
The range for use with residual fuels
includes FuelPower Demulsifier, an updated
demulsifier designed to cope with high water
levels in oil emulsions; FuelPower Conditioner,
a new treatment for unstable and incompatible
fuels, which improves fuel reliability and
FuelPower SlowSteam, a low dosage
combustion enhancer and stabiliser.
To help manage the unique challenges of
distillates effectively, WSS has also developed
a new product range, Unitor
DieselPower, specifically for
this fuel type. A series of
advanced formulations helps to
keep fuels bright, stable and
trouble-free, with fewer
problems resulting in lower
costs in operation.
Summing up, stlund said
that distillates behaved
completely differently to HFO
and the latters quality was
changing for the worse. He
thought that there were four
markets drivers -
Price, which is increasing
and will
continue to do so.
Quality, which is declining.
Regulations, which have
added extra
pressure on
shipowners/operators.
Market rates - owners and
operators are
earning less money.
And then there is the question
of uncertainty of supply of
distillates and low sulphur
fuels. In total only about 1.8%
of the worlds refined products is used for the
marine industry. Will the refiners be interested
in producing a commodity in low demand,
compared with other products? This could lead
to more use of biofuels, which bring there own
problems to the table.
*This article was taken from a paper written
by Jonas stlund, product marketing manager
fuel, product management, WSS and from a
recent presentation he gave in London.
As well as introducing its fuel
treatment offering, WSS also
unveiled its new integrated
welding safety products and
services at this years
Posidonia exhibition.
Combining the latest Unitor welding
equipment with professional support from
product specialists and on board welding
safety inspections, WSS enhanced
welding solutions are perfectly in tune
with the current challenges customers face
while maintaining their vessels, the
company claimed.
Danny Ingemann, business director for
marine products outlined the benefits.
Maintenance and repair welding on board
ships represents a huge challenge for crew,
as they may have little preparation time,
lack suitable modern equipment and work
in confined, often dangerous spaces.
As a provider of welding solutions we
can build closer relationships with
customers by offering our equipment as
packages and becoming more involved
with safety inspections,he concluded.
Welding safety products
TO
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F
or example - How can we improve
efficiency? Shall we use fuels not
containing sulphur, or remove the
SOx? Shall we meet Tier III by
using selective catalyst reduction (SCR) for
NOx reduction, or exhaust gas recirculation
(EGR) for NOx prevention technology? How
about cold corrosion? Can the new
technologies be retrofitted?
These are just a few of the questions being
addressed to MAN Diesel & Turbo (MDT).
MDTs Ole Groene explained that the G
engine series reduces CO
2
and the fuel bill by
offering a larger stroke, lower rev/min, the
fitting of a larger propeller, which combined
give a higher efficiency. Thus far, some 600 G
type engines have been ordered, he said.
As for cold corrosion, Groene said that this
had occurred primarily at low speed operations
in combination with high fuel efficiency
optimising methods.
For NOx reduction, the EGR technology was
recommended for vessels spending some time
trading in ECA areas, while the SCR
technology was considered to be more
advantageous for vessels spending only a short
time within an ECA area. One reference for the
EGR technology was for two 6G70ME-C9.2
engines fitted on board a pair of Chevron
Suezmaxes built by Samsung.
Turning to MDTs ME-GI type 2-stroke
engine, Groene described this engine as the
only diesel cycle high efficiency 2-stroke dual-
fuel engine. He said that it negates the need to
de-rate the engine, while the engineers do not
have to worry about load ramps, low efficiency,
methane slip, fuel gas quality, ambient
temperature variations, rough seas, or engine
detonations.
Groene also said that all of MDTs ME
engines could be easily converted to ME-GI
types without loosing power, or efficiency. In
the future, owners will probably use low
sulphur, or flash point fuels, or scrubbers, to
meet forthcoming SOx limits. For example,
engines, such as MDTs ME-GI, or ME-LGI
types, or SOx scrubbers will be used.
The ME-GI and LGI engines were described
as high pressure dual-fuel diesel engines, which
can run on gas as a fuel. With an EGR, the
engines will be Tier III compliant and will
deliver high efficiency running on gas and/or
fuel.
Low pressure dual fuel engines are gas
engines that can run on fuel. However, they are
not Tier III compliant when operating with fuel
alone but will be when running on gas, or both
fuel and gas, but with low efficiency.
The main difference between the ME-GI and
the ME-LGI engine types is the gas injection
TECHNOLOGY - EMISSIONS - ENGINES
June/July 2014

TANKEROperator 31
MDT addresses the
forthcoming
emissions limits with
new engines
With the countdown to SOx and NOx limits well and truly on, there are
many questions that shipowners are constantly asking.
GAS FUELS USED
Source: MAN Diesel & Turbo.
Gas fuel Supply conditions Supply pressure Supply temperature
LNG NG Gas 300 bar 45 +/- 10 deg C
Methane
LEG ethane Gas 600 bar 45 +/- 10 deg C
LPG Liquid 30-40 bar 35 +/- 25 deg C
Ethanol Liquid 8-10 bar 35 +/- 25 deg C
Methanol Liquid 8-10 bar 35+/- 25 deg C
TANKEROperator

June/July 2014 32
TECHNOLOGY - EMISSIONS - ENGINES
and supply system. Basically, the ME-GI
engine has a high pressure supply system, a
common rail type injection system, a
necessary injection pressure of 300 bar
(methane) and 600 bar (ethane), both ethane
and methane can be used as fuel.
As for the ME-LGI types, these act on low
pressure supply systems, an ME type
injection, necessary injection pressure of 500-
600 bar and they are suitable for methanol,
ethanol, LPG, or DME, as fuel.
ME-LGI fuel properties need to be of a
low viscosity, hence the need to lubricate the
moving parts, the flash point must be below
60 deg C, at atmospheric conditions, LPG
and DME is in the gas phase, while the
injected volume is 60% higher with LPG
when compared to diesel fuel.
Finally, Groene said that even with SOx
and NOx limitations, heavy fuel will not go
away. Diesel engines will prevail, he
stressed.
New engines developed
This year, MDT will continue its engine
programme evolution with the new ME-C
engines - the G45ME-C9 and G40ME-C9
types. The liquid gas injection (LGI) engine
type will also be introduced. A new
designation .5 will be given to all of the
engine types.
As for monitoring engine performance,
MDT has introduced standardised technical
initiatives, which at times are ignored, but are
included in the technical specifications given
to the shipyard. These include:
PMI autotuning.
Bearing wear monitoring.
Main bearing temperature monitoring.
Water in oil monitoring.
Liner wall temperature monitoring.
Addressing the problem of cold corrosion,
Groene said that this had occurred primarily
at low speed operations in combination with
high fuel efficiency optimising methods. As
the piston moves down during, or after
combustion, the acid is exposed and attacks
the liner surface. As a result, the cylinder
liner can become worn out after a few
thousand hours.
Not sufficient
BN 100 luboils were recommended for newer
engines, as the mid-range luboils were
deemed not sufficient to cope with this threat.
One of the procedures for early detection of
cold corrosion is by establishing the
correlation between the cylinder luboil feed
rate, the residual BN in the drain oil and wear
particles, ie iron, ferrous, etc, in the drain oil.
Diesel engines
will prevail.

Ole Groene, MDT

TO
TECHNOLOGY - EMISSIONS - ENGINES
June/July 2014

TANKEROperator 33
Last year, Vancouver-based
Waterfront Shipping confirmed
that its methanol carrier project
involving a series of 50,000 dwt
methanol carriers, will each be
powered by an MAN B&W ME-LGI
main engine running on
methanol.
A Letter of Intent between the two parties
was signed in July last year. MDT officially
designated the ME-LGI engine as ME-B9.3-
LGI.
At the time, Waterfront reported that it was
behind the 2+1 6G50ME-LGI engines
ordered by Westfal-Larsen, the 2+1
7S50ME-B9.3-LGI by Mitsui OSK Lines
(MOL), and the 1+1+1 6G50ME-LGI
engines with Marinvest/Skagerack Invest.
Hyundai Mipo Dockyard (HMD) will
build the Westfal-Larsen and
Marinvest/Skagerack Invest vessels, while
HHI-EMD, Hyundai Heavy Industries
engine and machinery division, will construct
the engines. For the MOL contract, Minami
Nippon Shipbuilding will construct the
newbuildings, while Mitsui Engineering &
Shipbuilding (MES) will build the engines.
MDT announced the development of a new
MAN B&W ME-LGI dual fuel engine on 1st
July, 2013. The engine manufacturer
subsequently signed a Letter of Intent less
than two weeks later with Vancouver-based
Waterfront Shipping for the use of ME-LGI
engines on board its methanol carriers. The
engines will eventually run on 95%
methanol, ignited by 5% pilot oil.
Methanol is a sulphur-free fuel and
provides many environmental and clean-
burning benefits. In using methanol-based
marine fuel, we can reduce emissions and
fuel costs at the same time, said Jone
Hognestad, president, Waterfront Shipping, at
the time of the signing of the Letter of Intent.
A Mitsui 4-cylinder engines was on test in
April of this year at the manufacturers
facility in Japan and a field test of one
cylinder on an S50ME-B8/9 engine was
successfully completed the same month.
MDT said that the new engine would be
launched early next year.
The first ME-GI engines ordered will be
fitted on board US shipping company,
TOTEs two containerships ordered at
NASSCO. The company also has three more
options at the San Diego yard. The vessels
will each be powered by 8L70ME-GI dual-
fuel gas-powered engines.
Gas engine orders confirmed
Tank ManagemenI 5ysIems
Phohe: +46 31 338 7530
L-mail: salesscah|eI.se
Web: www.scah|eI.se
Radar ahd Pressure
sehsor Level
Caugihg SysIems
LlecIro PheumaIic
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SysIems
Fixed ihsIalled Iahk
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Cas!reeihg !ahs
Scah|eI is Ihe experiehced
supplier o! Iahk mahage-
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well khowh !or beihg Ihe
worlds leadihg producer
o! Iahk cleahihg equimehI
ahd ahIi-piraIe waIer
cahhohs.
TANKEROperator

June/July 2014 34
TECHNOLOGY - SHIPREPAIR / MAINTENANCE
Improving ship
operating efficiency
Quantifying true ship performance is a very complex, if not impossible task.*
S
hips are designed, built and
operated to carry cargo as
efficiently as possible. However,
the desired level of efficiency is
often difficult to achieve during a ships
operating life.
The exact causes of the efficiency losses
that occur may be difficult to pinpoint, as there
are numerous contributing factors interacting
with each other.
Traditional methods of monitoring
performance largely rely on data entered in the
ships deck and engine logs by officers on
watch. However, these recordings of ship
speed, horsepower, propeller rev/min, slip and
fuel consumption only indicate significant
efficiency losses due to hull and propeller
fouling when there is a significant increase in
propeller slip, or daily fuel consumption.
Since vessel resistance from bad weather, or
deeper drafts can also cause increased power
and fuel consumption, it can be difficult to
isolate the cause of reduced efficiency and to
correct it through hull cleaning, propeller
polishing, or engine tuning.
Today, a performance monitoring system
has to identify the degradation in ship
efficiency and translate this trend or
performance metrics into recommendations for
improving overall fuel efficiency. This paper
attempts to explain some of the issues
involved in developing such a system.
A ship is subjected to wind, waves and
current while in transit. The engine converts
the fuel into propeller torque, which produces
thrust to overcome the resistances and
maintain desired speed. The resistance can
come from the environment as well as rudder
movements and hull and propeller fouling.
The condition of the engine, hull and propeller
can deteriorate over time, thereby requiring
increased power to maintain the same speed.
All these factors, plus the effects of
changing environmental and loading
conditions (draft and trim) are interrelated,
making it difficult to isolate the causes.
Before addressing the question of how to
improve ship efficiency, we need to properly
define efficiency and establish a reasonable
benchmark as the basis for comparison.
Efficiency can be loosely defined as useful
work done per energy unit consumed. In
naval architecture, we have:
Engine efficiency = delivered
HP/fuel consumed.
Propeller efficiency = thrust HP/delivered
HP.
Hull Efficiency = effective HP/ thrust HP.
Propulsive efficiency = engine x propeller
x hull.
During the ship design phase, these
efficiencies are estimated and optimised for a
specific size, service speed and vessel type in
order to configure the size and design of both
engine and propeller. The performance of the
entire ship system is then confirmed during
sea trials and accepted by the shipowner.
SFOC unchanged
During actual ship operation and loading, the
weather can differ significantly from the calm
and controlled conditions of the sea trials.
However, the specific fuel consumption at
various power outputs should not change
compared to the test results, unless the engine
is out of tune, or the quality and calorific
value of the fuel are in question. As such,
specific fuel consumption is a good metric to
use in detecting degradations in engine
efficiency.
On the other hand, trying to separate the
effects of hull fouling, propeller roughness,
wind, waves, and draft/trim on ship
performance requires extensive
instrumentation. A more cost-effective
approach is to take an aggregate measurement
and compare it with a series of established
benchmarks based on model tests, theoretical
calculations or past records taken at the time
when the hull was clean.
In this case it becomes more interesting to
detect the trends over time rather than the
quantitative values. We now introduce the
following operational efficiency benchmark:
Operational efficiency = actual tonnes per
mile/baseline tonnes per mile
Operational efficiency is an aggregate
measure of ship performance at a certain speed
and draft/trim, corrected for wind, waves, and
current. Plotting the same metric across the
entire speed range and loading conditions over
time would show the trend in performance
degradation since hull fouling would affect the
ship performance under all these conditions.
To evaluate the effectiveness of weather
routing and speed management in minimising
fuel consumption, we introduce the voyage
efficiency benchmark:
Voyage efficiency = actual
consumed/optimal consumed for the same
loading and schedule.
Voyage efficiency is another aggregate
measure of ship performance for a particular
passage. Since weather, current, ship loading
conditions and schedule requirements are
different for each passage, it is necessary to
normalise the performance to the best scenario
one could achieve for the same departure and
arrival times, as well as loading and
environmental conditions during the same
period.
Combining customised ship performance
models with optimisation software, such as
Jeppesens Voyage and Vessel Optimization
Solution (VVOS), can help achieve optimised
voyage performance.
*This article was written by Dr Henry Chen
who is a Boeing Associate Technology Fellow,
currently employed as chief naval architect at
Jeppesen Marine. He was formerly the
founder and CEO of Ocean System. which
Boeing/Jeppesen acquired in 2008.
TO
TECHNOLOGY - SHIPREPAIR / MAINTENANCE
June/July 2014

TANKEROperator 35
During the past few months, MAN
Diesel & Turbos (MDT) PrimeServ
head of retrofits and upgrades
Christian Ludwig and Jan Jensen,
head of retrofit sales, have given
presentations at different times on
the upgrading possibilities on MDT
diesel engines to save fuel.
For example, fuel savings of between 10-
15% can be made by de-rating the engine, 6%
by refitting a more efficient propeller, 4% by
load load tuning and 2% by using a pressure
mean indicator (PMI) auto tuning device. The
alpha lubricator could also be upgraded. A one
bar drop in pressure could equal between 0.2
and 0.25 g/kWh fuel loss.
PrimeServ has developed what it calls the
EcoCam, which is a low load tuning method for
engines fitted with one turbocharger, aimed at
achieving flexible exhaust valve timing. It is
claimed to be easy to install and easy to
operate. Its operating range is between 10% and
60% of the load.
It is available for MDTs S50MC-C and
S60MC-C engines and the intention is to roll
the EcoCam out for other engine types at a later
date, MDT said. Testing on an 6S50MC-C8.1
engine at Mitsuis engine test bed showed that a
payback time of between 6,000 and 12,000
running hours can be expected and savings of
more than 6 g/kWh SFOC for 10% and around
1.75 g/kWh at 60% load
can be achieved.
Another fuel saving
device tested on an
S50MC-C type engine in
Japan in May was a fuel
atomiser optimisation
programme for MDT
engine designs. This is
claimed to be NOx
compliant by class and is
compatible with the
combustion chamber and
the atomisers can be
delivered for the full load
range.
It is scheduled to be
ready for delivery for
selected S50MC/MC-C
engines by the third
quarter of this year.
Following this roll out, it
is expected to be ready
for other engine types by
the fourth quarter of
2014.
The savings claimed
are around 3-4 g/kWh,
while low load atomisers
can deliver savings of
between 2-3 g/kWh. An
atomiser is claimed to be a simple and low cost
retrofit product enabling the crew to undertake
the work involved.
Engine de-rating
As mentioned on page 45 of the May issue of
Tanker Operator, de-rating the engine can offer
significant savings, but at a cost of 1.3 mill
and once accomplished, the conversion is very
difficult to reverse. The savings can be
increased by the fitting of a Kappel type
propeller, which comes in all sizes and in both
fixed and controllable pitch mode, MDT said.
Various ship type specific studies have been
undertaken, both for optimised and low speed
solutions.
ME engines can also be retrofitted to ME-GI
types. MDT has evaluated indicative costs for
ME-C and MC- C engines ranging from 50
bore to 98 bore (see table above) and has given
examples of the cost breakdown in percentage
terms. By far the largest cost component is the
shipyard work, including the installation, which
will total around 40% of the overall cost
involved.
Making up 25% each are the project
management and the fuel gas supply system,
while the engine retrofit will take up the
remaining 10%.
A major project currently underway is the
retrofitting QatarGas STASCO-managed Q-
MAX LNGCs twin 7S70ME-C type engines.
The engines are being replaced by ME-GI
types. The project started around three years
ago as a pilot ABS/MDT scheme.
Retrofitting and upgrading to save fuel
Engine type Components Installation
6S50ME/ME-C 0.83 0.30
6S50MC/MC-C 1.80 0.50
6S60ME/ME-C 0.83 0.30
6S60MC/MC-C 1.90 0.50
6S70ME/ME-C 0.87 0.30
6S70MC/MC-C 1.96 0.50
6K80ME/ME-C 1.12 0.30
6K80MC/MC-C 1.63 0.50
6S90ME/ME-C 1.06 0.30
6S90MC/MC-C 1.75 0.50
12K98ME/ME-C 2.00 0.60
12K98MC/MC-C 3.60 1.00
Indicative prices for engine modifications (Eur mill)
Source:MDT.
TO
Source: MDT.
TANKEROperator

June/July 2014 36
TECHNOLOGY - EFFICIENCY
S
eaEngine will join SeaTrim,
SeaPlanner, SeaTrend and
SeaLogger later this year.
SeaEngines performance
monitoring trials are currently underway, the
company said.
At present, each of the modules are being
marketed as an independent system, however,
from this summer, the suite will be offered as
one integrated unit, as well as standalone
software.
SeaEngine is a tool for monitoring and
improving the performance of 2 - and 4 -
stroke engines on board vessels. It includes an
on board data collection software guiding the
engineers through an effective performance test
protocol, taking all the relevant parameters for
engine performance into account.
After submitting the relevant parameters,
data is checked and analysed automatically and
then the performance test results are made
available from a web reporting portal from
where the those ashore can monitor the
performance of each vessels engines in detail,
eg a slowly deteriorating performance like
turbocharger efficiency can be traced
In addition to the web reports, a full review
of the engine condition with suggestions for
additional adjustments, or improvements, is
provided quarterly by FORCE Technologys
team of engine experts.
SeaEngine is currently being tested on board
12 vessels representing different vessel types.
It was developed within a project called EEOS
(Energy Efficient Operation of Ships), which is
partially funded by The Danish Maritime Fund.
This project combines FORCE Technologys
experience of on board system software
development, theoretical research from the
Technical University of Denmark (DTU) and
operational experience from a group of the
leading Danish shipowners, including
Lauritzen Bulkers, Evergas and Uni-Tankers.
The EEOS project is still ongoing and as an
end product, an integrated, holistic ship
performance monitoring and optimisation
decision support tool -SeaSuite - will be
launched later this year.
SeaSuite will include modules for voyage
optimisation (SeaPlanner), trim optimisation
(SeaTrim), hull and propeller performance
(SeaTrend), the engine performance
(SeaEngine) and a performance data logging
system (SeaLogger).
FORCE
Technology said
that only the latest
engine types are
fitted with
monitoring
systems, so the
majority are not
fitted with
technology, such
as SeaEngine,
thus far.
Today, more
than 500 ships are
sailing with, or
have ordered one,
or more of the
ship performance
systems, the company claimed.
The company is a firm believer that
standalone systems will soon be a thing of the
past. The trend going forward is for increased
data sharing and the utilisation of knowledge
gained from other applications, due to
increasing fuel prices and the technical
advances now becoming available.
The most obvious advantage of data
integration is that the customers is the
enhanced and automated use of cross-platform
data exchange. Officers will avoid having to
note, evaluate ad transfer data manually
between separate systems, as with integration,
this will happen automatically.
Data capturing will have a flexible, but most
often higher, degree of automation built in,
thus making the data feed more consistent,
more frequent and less dependent on the
quality of interpretation by individuals, the
company said in a recent article.
Some 65-70% of the companys business
now involves retrofitting and optimisation. One
example is FORCE Technologys co-operative
venture with Becker Marine for the Mewis
Duct development. The company is now the
major test bed for the system. Thus far, about
15 projects have been tested.
The scope of the test incorporates two
phases -
Optimisation of the pre-swirl fin system
(definition of the final setting angle).
Subsequent full speed range comparison of
the propulsive performance against the base
case - vessel without a duct fitted.
Thus the results serve as a basis for
confirmation of the predicted power saving
effect.
Based on the above, FORCE Technology
documented the predicted power savings of an
average of 5-6%. A few projects were also
tested in full scale sea conditions both with
and without a duct fitted to verify the power
savings.
On board monitoring
and performance
tools
Copenhagen-based FORCE Technologys suite of fuel saving on board systems is soon to
be increased to five. These modules were designed to maximise fuel efficiency and thus
reduce CO
2
emissions.
TO
Turbocharger efficiency graph. Source: FORCE Technology.
TECHNOLOGY - TANK SERVICING
June/July 2014

TANKEROperator 37
U
nder the terms of this new
legislation, which came into force
in July 2013, all vessels carrying
hazardous cargoes are required to
be fitted with a secondary pressure valve
system to provide backup in the event of a
failure in primary valves to avoid cargo
overpressure.
The consequences of cargo overpressure are
serious. Changes in air pressures during
loading, or unloading, or variations in the
temperature of gases, or vapours, while at sea
can compromise the integrity of the tank,
causing extensive and costly damage. In
addition, there is a risk of fire, or pollution,
where breaches lead to dangerous gases, or
liquids, being released.
The recognition of pressure sensor and alarm
systems, such as PSMs VentSafe solution, as
an alternative means of protecting cargo tanks
from overpressure offers a fast and cost-
effective alternative for shipowners who need
to modify their vessels to comply with the new
legislation.
Meeting the requirements of both the latest
guidance and the original Solas II regulations
(SOLAS II-2/59.1 1998), PSMs ict 1000
pressure transmitters offer an economical
retrofit solution as part of the end to end
VentSafe pressure measurement system.
In the UAE, PSM has already assisted one
shipowner to conform with the new
regulations, working in partnership with its
locally-based accredited sales and engineering
partner Tile Marine. Following an initial
survey carried out on an Aframax locally by
Tile Marine, PSM was asked to design and
supply a complete system. An end-to-end
project, including installation, commissioning
and testing, the work was completed in
February of this year.
An initial survey was carried out to establish
the precise mechanical and electrical
requirements for monitoring cargo tank
overpressure in the vessel, providing input as
part of the system specification process.
Individual ict 1000 pressure transmitters
were installed for each of the 12 cargo tanks
and the two slop tanks. These were connected
to a PC in the cargo control room that runs the
VentSafe specific monitoring, display and
alarm software using the transmitters integral
Modbus communication system. Providing a
central monitoring station, the PC display
indicates the status of each tank, as well as the
actual pressure in a single co-ordinated source.
Pre-configured
The PC was pre-configured with the tank
details and descriptions, as well as the four
alarm setpoints required by the regulations. In
the event of a pressure hazard, the system
alerts the crew by issuing local audible and
visual warnings. Where required, optional relay
outputs can be provided for remote alarm
control.
For fully protected submersion, the ict 1000
transmitters are available with a choice of
flanged, or threaded, fittings for installation
direct to the tank top, or piping, into the
Cargo overpressure
solution - a case
study
One of the latest environmental regulations introduced to affect
tankers is the IACS UI SC 140.*
Pressure transmitter and protective conduit
for the signal cable.
Man overboard safety and rescue is our concern and speciality
Hvaleyrarbraut 3
Hafnarfjordur, IS-220
Iceland
Tel: +354 5651375

Main partners:

UK: Energy Marine Ltd.
Tel: +44 (0)1525 851234

USA: Marine Rescue Technologies Inc.
Tel: +1 772 388 1326
Markusnet Type MS is designed for man overboard recovery
on all types of ships, offshore installations and dams with less
than 40 metre height from water level upto rescue deck or
platform.

Markus Scramble net Type SCN6 is a mobile light weight
scramble-net / cradle recovery system for deck vessels and
offshore installations with either rail or special fastenings inside
bulwark where they are to be used. Less than 1/6 of the weight
of traditional scramble-nets.

Markus MOB boat rescue-net is light, quick fastening, takes
little space, provides easy and fast method to place the
casualty in the net, is soft but firm around the casualty,
provides easy lift by one or two persons and is easy to repack
after use.
Markus MOB boat rescue-net
Markus Scramble-net
Markusnet Type: MS
sales@markusnet.com - www.MarkusLifenet.com
TANKEROperator

June/July 2014 38
TECHNOLOGY - TANK SERVICING
TV screen shot of VentSafe.
venting system. The system can accommodate
multiple individual transmitters, with
connection via one data bus to simplify the
installation and reduce cable costs. The sensor
design ensures protection against overload and
shock pressure conditions, while a stainless
steel body provides protection against the
toughest operating conditions.
Providing real-time monitoring, the system
allows seafarers to monitor tank conditions
continuously and make a timely interventions,
unlike secondary pressure systems where
problems are only apparent when the system is
triggered by failure of the primary valve.
Crews are able to observe and acknowledge, or
reset alarm conditions via the PC unit.
The ict 1000 transmitters are designed to be
flexible. Specific changes to setpoints, delays
and hysteresis settings can also be made prior
to installation during factory configuration
where pro-indicated by the initial survey of
requirements and detailed specification
process.
The installation process is simple and fast. as
the connection of the ict 1000 transmitters
requires only one small diameter pressure
connection and electrical cable per tank.
For vessel owners, the appeal of systems
such as the ict 1000 is that it offers a complete
package based on proven and fully approved
equipment designed to conform with the
requirements of many different marine
societies. Their robust design is highly suited
to hazardous areas when installed with the
appropriate RFM safety barriers with
certification to ATEX regulations, PSM said.
Costing up to 80% less than a secondary
pressure relief valve, pressure management
systems offer a practical alternative for fleet
owners struggling with the mounting challenge
of compliance.
This case study was based on the
installation on board the Bangladesh-
controlled 1997-built Aframax Omera
Queen.
*This article was written by Mark Jones, sales
director, PSM.
Deck area of the Aframax Omera Queen.
TO
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FURUNO ELECTRIC CO., LTD.
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Hall B6, stand no. 100
TANKEROperator

June/July 2014 40
TECHNOLOGY - TANK SERVICING
Tank equipment product ranges combine
Scanjet Marine and Scanvent are
combining their product range to
create what is claimed to be the
most comprehensive internal tank
equipment package available for
tankers and FPSOs.
Scanjets current product range consists of
tank cleaning equipment, tank management
solutions, including monitoring, control and
alarm system for cargo and service tanks,
while Scanvent offers a range of VOC
efficient dual nozzle high velocity valves,
suitable for barges up to VLCCs and FPSOs,
plus MSC/Circ. 1324 flame screen upgrade
spares for most existing p/v valves.
The combined product ranges cover all in-
tank equipment bar cargo pumps. The two
companies are already supplying numerous
projects individually to shipowners, such as
JO Tankers and Stolt-Nielsen.
By combining their efforts, they will boost
efficiency and customer services by offering a
single point of contact for the combined
product range, the companies said.
Scanjets factory in Sweden will assume
manufacturing of Scanvent p/v valves next to
its tank cleaning machine production line.
The two sales and R&D organisations will
integrate with Scanjets sales network
becoming a single point of contact for
customers over the course of the next few
months.
Scanjet has also introduced the latest
addition to its range of tank cleaning
equipment.
It is a water driven portable gas freeing fan,
the SC F150W, which means that the whole
tank cleaning package - fixed, portable and
fans - is available from one manufacturer.
The SC F150W is designed as a high
performance (up to 15,000 cu m per hour),
deep penetration unit suitable for use on all
types and sizes of vessels. It is portable, as it
weighs under 20 Kgs and by using layflat
hoses, this means that it can beset up by one
person.
Fans are presently available from stock in
Sweden, Rotterdam and Singapore and
enquiries should be sent to Scanjet direct, or
via the local agent.
Scanjets portable gas freeing fan.

































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