Merchant Navy
Monday 1 June 2009
Cicek Delivers First of Four 3100 DWT Tankers
The Turkish shipbuilder Çiçek Shipyard has delivered the 3,087dwt double-hull tanker Frecciamare to the Italian shipowner Ciane Anapo Spa. Based in one of Italy's major ports, Augusta, on the east coast of Sicily, Ciane Anapo is part of the Novella Group, headed by Marco Novella, and specializes in coastal tanker and bunker operations.Frecciamare was completed as Chem Flower, the first of four identical vessels now being built by Çiçek Shipyard for its associated shipowning company White Tulip Shipping, based in Malta. White Tulip then sold Chem Flower to Ciane Anapo shortly after completion, leaving Çiçek to make some minor modifications to meet the new owner's requirements.Although Ciane Anapo intends to use this first vessel for bunkering duties, the four ships are flexible, all being capable of worldwide trading, transporting oil products, chemicals (IMO type II) and vegetable, animal and fish oils.MarineLine coatings were selected by Çiçek to give the ability to carry a wide range of cargoes while high manoeuvrability is guaranteed by the choice of twin azimuthing propellers and a bow thruster. They are classed by Bureau Veritas and constructed to meet Ice B standards.According to Berke Çiçek, Vice President of Cicek Shipyard, interest from European owners for such vessels is strong, despite the overall weak state of the shipping market. "New double-hulled vessels such as Frecciamare and her three sisters now under construction are in great demand to replace older tonnage and because we took the initiative to start construction to our own account, the new owners have benefited from an extremely short delivery period. We are talking to a number of other potential owners and charterers and are confident of finding buyers who can secure immediate and profitable employment for these vessels."We were interested to see that Frecciamare's owner Ciane Anapo envisages employing its new vessel in the bunker trades as we had identified this market as particularly attractive. Many bunker tankers are still single-hull and quite elderly. There is a replacement market and there is also a requirement for larger vessels like ours since average ship sizes continue to grow. Large containerships, for example, take on board substantial amounts of bunkers and they also expect a fast rate of delivery.""For the next three vessels, we are able to offer late changes in specification, for example in the choice of tank coatings, thus providing great flexibility when discussing potential charterers' precise requirements. We are, with due notice, able to make more radical changes, as might be requested by owners with specific employment in mind."The shipowner Ciane Anapo Spa was formed in 1967 by the merger of two shipping companies, Ciane and Anapo, named after two small rivers in the Syracuse area. Its full name, Ciane-Anapo, Compagnia di Navigazione e Bunkeraggi Spa, reflects its two lines of business: bunkering (transport of fuel oil, diesel and lube oil for vessels in port) and mainstream shipping, principally coastal.Anapo was set up in 1958 in Augusta, just north of Syracuse, and Ciane in 1959, and the merged company has had a branch office in Genoa since 1967. It carries out bunkering in these two ports under special licenses, which require the use of small tankers that load from coastal installations.Augusta is one of Italy's largest ports, a major centre for oil refining and a popular bunkering centre, being on the main east-west trade route through the Mediterranean. The shipbuilder Çiçek Shipyard is located on Tuzla Bay, near Istanbul, and in addition to the small tankers, its current orderbook includes 58,000dwt and 25,000dwt bulk carriers. It has a long track record of constructing chemical tankers from 8,000dwt up to 40,000dwt in size.The largest vessels are constructed in a 37m wide building dock while ships of up to 25,000dwt can be built on an adjacent slipway. The 3,100dwt tankers are being constructed on a second slipway, capable of building ships of up to 3,500dwt.
Mumbai port repositioned as Project hub
In a bid to overcome the stiff competition, Mumbai port (MbPT) is being repositioned as India’s project cargo hub port taking advantage of the many distinguishing features and advantages native to the region. Its enclosed dock system, its sheltered harbour water with deep draft make it an ideal port for handling heavy lift and project cargo.
Though it has become strictly a break bulk port, it has been losing much of the cargo as break bulk, it is found to be easily containerised to ensure shorter ship stay in port, lesser cargo handling and has made it easier to ensure cargo security.
However, break bulk cargo such as over dimensional type or heavy lift project cargo calls for specialisation in handling. ‘Out of gauge’ cargo of 100 tons to 750 tons and more can be handled by a ship’s own gear vessels provided they have jumbo-sized cranes or two cranes of 450 ton capacity each working in tandem to load and unload such heavy cargo of up 900 tons.
Featuring the assets of the port for handling heavy lift cargo, Mr. V.S. Kulkarni, Dy Docks Manager of Mumbai Port Trust (MbPT) emphasized, “Our existing dock system provides ideal berthing for vessels at corner berths thus permitting suitable double banking facilities alongside a vessel. The port has been able to regularly handle ‘out of gauge’ cargo and heavy project consignments of more than 700 tons. Our docks can even accommodate extra-ordinarily long vessels with overall length exceeding 900 feet. Good connectivity permitting quick evacuation of cargo via the sea through barges and by land through the rail network or by road gives Mumbai Port a distinctive advantage.”
Project cargo manufactured at minor and intermediate ports located in Gujarat are moved to MbPT by barges for onward shipment by the mother vessels. Construction machinery, road rollers, machinery of turnkey projects, boilers, transformers, dredgers, over dimensional power equipment, etc are regularly transported through the MbPT either as exports or as imports. OEMs and heavy engineering industrial units located in the hinterland find Mumbai port to be the preferred port for shipment of goods such as windmill parts, transformers, etc.
“Our regular customers include Larsen & Toubro, Bharat Heavy Electricals Ltd., National Thermal Power Corporation Ltd., Crompton Greaves Ltd, Suzlon Energy Ltd., Godrej & Boyce, etc.,” says Mr Kulkarni. “Heavy cargo such as transformers and reactors are brought in by barges from Hazira, Kandla or Mangalore and loaded directly onto the mother vessels. Godrej get in their cargo from their Vikhroli factory via Mankhurd from where they are transported by barges through the P & V channel to the Harbour Wall berths in the Indira Docks (18 to 21). Here the barges are double banked with the mother vessels whose cranes lift them off from the barges and load them onto the vessel.
“Heavy cargoes are also brought in by rail or road and we offer various facilities including 7 free days on export cargo and 6 on import, if the goods have to be warehoused in the dock area. Offering ro-ro facilities, heavy cargo can either be rolled on or rolled off by trailers. Besides, the advantage of MbPT is that it is an enclosed dock and the sheltered conditions allow ships to be safely berthed. The loading and unloading operation requires a certain amount of precision when the cargo is over-dimensional. This is made possible if the ship is stationary and berthed in calm waters. Such enclosed dock conditions exist only in Mumbai port. If the size of the dock gates restricts the passage of over-sized cargo then we even have the gates demolished along with part of the wall to permit its passage.”
A case in point of MbPT being a preferred port is that JNPT has had to have their imported cranes unloaded at Mumbai port a few years’ back and then moved over to JNPT for erection at their port. ABG Shipyard, the largest private sector shipbuilding yard in India, also have their big import packages weighing over 250 tons each, unloaded onto barges and taken to the shipyard in Magdalla, Gujarat from Mumbai.
“Because of the sheltered condition of the Mumbai Port, users prefer MbPT,” points out a port official. “We have better connectivity not only to the Western countries but also globally. With several Indian companies participating in global tendering for infrastructure projects in Africa, the USA and Europe, there is an increasing tendency to move heavy cargo or ‘super capital goods’ through MbPT. So also when it comes to bringing in heavy equipment for projects, Mumbai port is found advantageous as it offers excellent road, rail and coastal connectivity permitting easy transport of equipment to the erection sites. Pune based Suzlon Energy Ltd. is a regular shipper for their windmill equipment involving giant size blades and electrical equipment through our port,” he said.
Heavy Lift specialist director, Mr. Hemant Bhatia informs that though the port is well geared with their own shore-based cranes with the magnitude of heavy cargo passing through the MbPT, three private operators are offering their floating cranes of between 60 ton to 250 ton capacity. Nord Scan lines also have their heavy lift vessel operating on the Indian coast ready to provide service to interested customers.
Though it has become strictly a break bulk port, it has been losing much of the cargo as break bulk, it is found to be easily containerised to ensure shorter ship stay in port, lesser cargo handling and has made it easier to ensure cargo security.
However, break bulk cargo such as over dimensional type or heavy lift project cargo calls for specialisation in handling. ‘Out of gauge’ cargo of 100 tons to 750 tons and more can be handled by a ship’s own gear vessels provided they have jumbo-sized cranes or two cranes of 450 ton capacity each working in tandem to load and unload such heavy cargo of up 900 tons.
Featuring the assets of the port for handling heavy lift cargo, Mr. V.S. Kulkarni, Dy Docks Manager of Mumbai Port Trust (MbPT) emphasized, “Our existing dock system provides ideal berthing for vessels at corner berths thus permitting suitable double banking facilities alongside a vessel. The port has been able to regularly handle ‘out of gauge’ cargo and heavy project consignments of more than 700 tons. Our docks can even accommodate extra-ordinarily long vessels with overall length exceeding 900 feet. Good connectivity permitting quick evacuation of cargo via the sea through barges and by land through the rail network or by road gives Mumbai Port a distinctive advantage.”
Project cargo manufactured at minor and intermediate ports located in Gujarat are moved to MbPT by barges for onward shipment by the mother vessels. Construction machinery, road rollers, machinery of turnkey projects, boilers, transformers, dredgers, over dimensional power equipment, etc are regularly transported through the MbPT either as exports or as imports. OEMs and heavy engineering industrial units located in the hinterland find Mumbai port to be the preferred port for shipment of goods such as windmill parts, transformers, etc.
“Our regular customers include Larsen & Toubro, Bharat Heavy Electricals Ltd., National Thermal Power Corporation Ltd., Crompton Greaves Ltd, Suzlon Energy Ltd., Godrej & Boyce, etc.,” says Mr Kulkarni. “Heavy cargo such as transformers and reactors are brought in by barges from Hazira, Kandla or Mangalore and loaded directly onto the mother vessels. Godrej get in their cargo from their Vikhroli factory via Mankhurd from where they are transported by barges through the P & V channel to the Harbour Wall berths in the Indira Docks (18 to 21). Here the barges are double banked with the mother vessels whose cranes lift them off from the barges and load them onto the vessel.
“Heavy cargoes are also brought in by rail or road and we offer various facilities including 7 free days on export cargo and 6 on import, if the goods have to be warehoused in the dock area. Offering ro-ro facilities, heavy cargo can either be rolled on or rolled off by trailers. Besides, the advantage of MbPT is that it is an enclosed dock and the sheltered conditions allow ships to be safely berthed. The loading and unloading operation requires a certain amount of precision when the cargo is over-dimensional. This is made possible if the ship is stationary and berthed in calm waters. Such enclosed dock conditions exist only in Mumbai port. If the size of the dock gates restricts the passage of over-sized cargo then we even have the gates demolished along with part of the wall to permit its passage.”
A case in point of MbPT being a preferred port is that JNPT has had to have their imported cranes unloaded at Mumbai port a few years’ back and then moved over to JNPT for erection at their port. ABG Shipyard, the largest private sector shipbuilding yard in India, also have their big import packages weighing over 250 tons each, unloaded onto barges and taken to the shipyard in Magdalla, Gujarat from Mumbai.
“Because of the sheltered condition of the Mumbai Port, users prefer MbPT,” points out a port official. “We have better connectivity not only to the Western countries but also globally. With several Indian companies participating in global tendering for infrastructure projects in Africa, the USA and Europe, there is an increasing tendency to move heavy cargo or ‘super capital goods’ through MbPT. So also when it comes to bringing in heavy equipment for projects, Mumbai port is found advantageous as it offers excellent road, rail and coastal connectivity permitting easy transport of equipment to the erection sites. Pune based Suzlon Energy Ltd. is a regular shipper for their windmill equipment involving giant size blades and electrical equipment through our port,” he said.
Heavy Lift specialist director, Mr. Hemant Bhatia informs that though the port is well geared with their own shore-based cranes with the magnitude of heavy cargo passing through the MbPT, three private operators are offering their floating cranes of between 60 ton to 250 ton capacity. Nord Scan lines also have their heavy lift vessel operating on the Indian coast ready to provide service to interested customers.
Monday 6 April 2009
ASF calls for asian governmental body
Owners representatives meeting in Hong Kong for the Asian Shipowners Forum (ASF) Ship Insurance and Liability Committee have called for Asian governments tyo forma regional body to consider and respond to regional proposal for regulating shipping. A statement notes that, in the past, ASF has commented widely on the various EU Draft Directives, but “has not seen an equivalent level of contribution from Asian governments”.
ASF adds: “Taking note of the reports of recent comments made by Mr Shigeru Ito, Director General of the Maritime Bureau of Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Mr Oh Konggyun, Chief Executive of the Korea Register and Chairman of the International Association of Classification Societies, both of whom support a more active ‘Asian Voice’ on maritime issues at the governmental level, the Committee urges Asian governments to form a regional body in order to consider and comment on legislation proposed at the regional level, particularly that being proposed by Europe and the United States.”
The ASF also expressed its “continued deep concern at the treatment of seafarers who are unfortunately involved in maritime accidents”. It said: “While recognising that local legal procedures must be followed, the Committee is concerned that seafarers who are involved in accidents are being treated as criminals as a response to and to satisfy public concern about the effects of the incident, even when it is clear that there has been no criminal intent or obvious fault. There would seem to be many such incidents, where the only fault of the seafarer would appear to be in the wrong place at the wrong time. The Committee urges all Governments, particularly those in the developed world, to reconsider the harm they are doing both to the recruitment of future seafarers as well as to the reputation of their legal systems by politicising such incidents and treating seafarers with little regard for their human rights and as being guilty until proven innocent.”
ASF adds: “Taking note of the reports of recent comments made by Mr Shigeru Ito, Director General of the Maritime Bureau of Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Mr Oh Konggyun, Chief Executive of the Korea Register and Chairman of the International Association of Classification Societies, both of whom support a more active ‘Asian Voice’ on maritime issues at the governmental level, the Committee urges Asian governments to form a regional body in order to consider and comment on legislation proposed at the regional level, particularly that being proposed by Europe and the United States.”
The ASF also expressed its “continued deep concern at the treatment of seafarers who are unfortunately involved in maritime accidents”. It said: “While recognising that local legal procedures must be followed, the Committee is concerned that seafarers who are involved in accidents are being treated as criminals as a response to and to satisfy public concern about the effects of the incident, even when it is clear that there has been no criminal intent or obvious fault. There would seem to be many such incidents, where the only fault of the seafarer would appear to be in the wrong place at the wrong time. The Committee urges all Governments, particularly those in the developed world, to reconsider the harm they are doing both to the recruitment of future seafarers as well as to the reputation of their legal systems by politicising such incidents and treating seafarers with little regard for their human rights and as being guilty until proven innocent.”
Celebrating Piracy and Criminalisation of seafarer
For seafarers who turned up for the National Maritime week celebrations seminar at the auditorium of the Shipping Corporation of India (SCI), Mumbai on 1st April, 2009 their hope of finding some solution to the heart-wrenching problems of piracy and criminalisation of seafarers turned out to be a hoax. The deliberations did not give the slightest hope of the threat abating nor any promise being extended by the government as if signifying what the day April 01,09 was meant to be. No one could fathom what further relevance these two issues had for the celebration week besides a number of events that had already taken place focusing on the same issues including the one conducted by the Directorate and graced by the union shipping secretary, A. P. V. N. Sarma.
More appalling still was the moderator of the two panels, the Lloyd Lists’ correspondent Shirish Nadkarni making a surprise announcement, “We will now welcome into our midst Capt. Jasprit Chawla and Chief Officer Syam Chetan,” he said, (referring to the two Indian officers of the tanker ship “Hebei Spirit” detained in South Korea). As no one stepped in he blatantly stated that it was ‘April Fool’. Heart broken was Commodore D. R. Syam VSM, father of Syam Chetan who had come as a special invitee. He sighed, “For a moment I thought the administration had a happy surprise for me. But it was not to be.”
Although ‘Piracy and Criminalisation –Threat to the Seafaring profession’, was the theme of the seminar, one of the cadets Amit Sharma when asked to voice his opinion lamented, “It is obvious that people who are lawmakers, framing the rules are sitting in air-conditioned offices while drafting the rules and regulations. How do we face the pirates and criminals? We are not trained to tackle these problems when we go into the deep sea.” The directorate humbly responded stating that ‘there were no answers to these problems.’
Umesh C. Grover, Director (Technical & Offshore Services), SCI observed, “As it is seafaring had lost its charm with shorter port stay and longer voyages at sea. Now to add to it is criminalisation and piracy rearing its ugly head?”
S. Hajara, cmd of SCI stated that the treatment being meted out to the two Indian officers of V. Ships in Korea has got the whole world to take another look at the IMO guidelines.
In his presentation, Jim Mainstone, Head of Special Projects at Gray Page, contended, “The world media has not properly highlighted what the hijacked crew faces under the control of the pirates.” He gave details of the modus operandi of the Somalian pirates, their style of functioning and their mind-set. “We have to make a coordinated effort, put an agenda to work together. Unfortunately, every country has a different policy. With the result if pirates are actually captured then how do we try them and to whom should they be handed over – certainly not to the Somalian authorities.”
The other facet which was serving as a deterrent to attracting more youth to the seafaring profession was tactfully handled by Brian Martis, Group Business Services Director of V. Ships. He gave an account of the trauma which Capt. Kanwar Sunder Mathur who commanded the beleaguered Erika underwent for no fault of his. Also the unjust treatment meted out to Capt. Apostolos Mangouras of the tanker Prestige, where without Mens Rea and without being proved guilty seafarers were subjected to punishment.
He cautioned about the disproportionate response to accidents and the reaction being indicative of the treatment seafarers will receive. He quoted the former French President Jacques Chirac’s response to accidents at sea saying, “This is not inevitable. It is the result of human actions. France and Europe must not leave these shady men, these gangsters of the sea, to profit cynically from the lack of transparency in the current system.”
Mr. Martis explained that substandard operators, substandard ships and substandard manning agents who are a serious threat must be reported upon. They are responsible in part for the kind of legislation we are confronted with today. We have come a long way and the industry has made great strides in improving its image. “We have a choice to make,” he said. “We can accept the status quo and do nothing about it. Or we can organise ourselves well enough to fight the scourge of criminalisation.”
The two panel discussions were inconclusive and had nothing to offer accepting clarifications on some of the points raised.
Reacting to the spent-out trend the seminar was taking and the listless efforts of the government machinery rising up to the occasion, Mr. Abdulgani Y. Serang, General Secretary–cum–Treasurer of the National Union of Seafarers of India (NUSI) likened the progress to ‘waiting for the cows to come back’ development, “If there happened to be a minister’s son or a prince from some country on a passenger ship that gets attacked only then will there be a wakeup call like the 9/11 situation evoked. But when we talk about offering more bonuses or money to seafarers whose ships traverse through pirate infested areas, Indian ship owners quickly say an unequivocal ‘NO’.”
The Chief Guest, Justice Dr. A.S. Anand ruled that piracy and criminalisation of seafarers will continue to exist. “Piracy on the high seas is a form of terrorism whose objective is not so much to harm but to disturb the equilibrium in exchange of money,” he pointed out. “Unfortunately, there is no definition of ‘terrorism’, thus the selective approach of the governments and their double standards are evident … Countries will keep asking how does it matter to me what happens in your backyard.”
He went on to point out that the response of media to show the ugly face of piracy and criminalisation is not as evident as it was after 9/11, or even the recent attack on a cricket team on foreign soil. “However,” he appealed to the cadets, “Don’t go by these aberrations. Seafaring is still a good profession!”
More appalling still was the moderator of the two panels, the Lloyd Lists’ correspondent Shirish Nadkarni making a surprise announcement, “We will now welcome into our midst Capt. Jasprit Chawla and Chief Officer Syam Chetan,” he said, (referring to the two Indian officers of the tanker ship “Hebei Spirit” detained in South Korea). As no one stepped in he blatantly stated that it was ‘April Fool’. Heart broken was Commodore D. R. Syam VSM, father of Syam Chetan who had come as a special invitee. He sighed, “For a moment I thought the administration had a happy surprise for me. But it was not to be.”
Although ‘Piracy and Criminalisation –Threat to the Seafaring profession’, was the theme of the seminar, one of the cadets Amit Sharma when asked to voice his opinion lamented, “It is obvious that people who are lawmakers, framing the rules are sitting in air-conditioned offices while drafting the rules and regulations. How do we face the pirates and criminals? We are not trained to tackle these problems when we go into the deep sea.” The directorate humbly responded stating that ‘there were no answers to these problems.’
Umesh C. Grover, Director (Technical & Offshore Services), SCI observed, “As it is seafaring had lost its charm with shorter port stay and longer voyages at sea. Now to add to it is criminalisation and piracy rearing its ugly head?”
S. Hajara, cmd of SCI stated that the treatment being meted out to the two Indian officers of V. Ships in Korea has got the whole world to take another look at the IMO guidelines.
In his presentation, Jim Mainstone, Head of Special Projects at Gray Page, contended, “The world media has not properly highlighted what the hijacked crew faces under the control of the pirates.” He gave details of the modus operandi of the Somalian pirates, their style of functioning and their mind-set. “We have to make a coordinated effort, put an agenda to work together. Unfortunately, every country has a different policy. With the result if pirates are actually captured then how do we try them and to whom should they be handed over – certainly not to the Somalian authorities.”
The other facet which was serving as a deterrent to attracting more youth to the seafaring profession was tactfully handled by Brian Martis, Group Business Services Director of V. Ships. He gave an account of the trauma which Capt. Kanwar Sunder Mathur who commanded the beleaguered Erika underwent for no fault of his. Also the unjust treatment meted out to Capt. Apostolos Mangouras of the tanker Prestige, where without Mens Rea and without being proved guilty seafarers were subjected to punishment.
He cautioned about the disproportionate response to accidents and the reaction being indicative of the treatment seafarers will receive. He quoted the former French President Jacques Chirac’s response to accidents at sea saying, “This is not inevitable. It is the result of human actions. France and Europe must not leave these shady men, these gangsters of the sea, to profit cynically from the lack of transparency in the current system.”
Mr. Martis explained that substandard operators, substandard ships and substandard manning agents who are a serious threat must be reported upon. They are responsible in part for the kind of legislation we are confronted with today. We have come a long way and the industry has made great strides in improving its image. “We have a choice to make,” he said. “We can accept the status quo and do nothing about it. Or we can organise ourselves well enough to fight the scourge of criminalisation.”
The two panel discussions were inconclusive and had nothing to offer accepting clarifications on some of the points raised.
Reacting to the spent-out trend the seminar was taking and the listless efforts of the government machinery rising up to the occasion, Mr. Abdulgani Y. Serang, General Secretary–cum–Treasurer of the National Union of Seafarers of India (NUSI) likened the progress to ‘waiting for the cows to come back’ development, “If there happened to be a minister’s son or a prince from some country on a passenger ship that gets attacked only then will there be a wakeup call like the 9/11 situation evoked. But when we talk about offering more bonuses or money to seafarers whose ships traverse through pirate infested areas, Indian ship owners quickly say an unequivocal ‘NO’.”
The Chief Guest, Justice Dr. A.S. Anand ruled that piracy and criminalisation of seafarers will continue to exist. “Piracy on the high seas is a form of terrorism whose objective is not so much to harm but to disturb the equilibrium in exchange of money,” he pointed out. “Unfortunately, there is no definition of ‘terrorism’, thus the selective approach of the governments and their double standards are evident … Countries will keep asking how does it matter to me what happens in your backyard.”
He went on to point out that the response of media to show the ugly face of piracy and criminalisation is not as evident as it was after 9/11, or even the recent attack on a cricket team on foreign soil. “However,” he appealed to the cadets, “Don’t go by these aberrations. Seafaring is still a good profession!”
Monday 23 March 2009
LNG tanker rates fall on increase in vessels
Charter rates for liquefied natural gas tankers on short-term hauls declined 17 per cent last year because of an increase in new vessels, Poten & Partners said.
Rates to rent LNG tankers fell to about US$46,600 a day for steam turbine vessels of 138,000 to 150,000 cubic metres in capacity, Poten, a US energy consultant, said in a report.
'With a record number of new builds entering the fleet, market needs were easily accommodated and except for a few instances, prompt ships were always available,' the report said.
'Despite a robust cargo market with record numbers of spot shipments being diverted from the Atlantic Basin to destinations east of Suez, chartering activity remained muted through July.'
The number of LNG ships worldwide will increase by more than 50 per cent in 2010 after shipyards delivered a record 58 vessels last year, David Fuller, the London-based head of LNG for RWE AG, said at the Gas Asia conference in Kuala Lumpur on Wednesday.
Daily charter rates in 2008 were in a range of US$40,000 to US$50,000 about 60 per cent of the time, according to the report.
Charter rates for ships transporting spot cargoes have declined to about US$35,000 to US$40,000 a day currently, Gunaseharan Ganapathy, vice-president of LNG at MISC Bhd, said on Wednesday. Charterers may have paid as much as US$75,000 a day during winter 2007, according to Drewry Maritime Services Ltd.
MISC, the world's largest owner of liquefied natural gas tankers, expects a surplus of vessels this year and next as ship deliveries precede the start up of projects and the global recession cuts Asia's demand for the fuel, Mr Ganapathy said.
LNG is natural gas that has been reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius for transportation by ship to destinations not connected by pipeline. On arrival, it is turned back into gas for distribution to power plants, factories and households. -- Bloomberg
Rates to rent LNG tankers fell to about US$46,600 a day for steam turbine vessels of 138,000 to 150,000 cubic metres in capacity, Poten, a US energy consultant, said in a report.
'With a record number of new builds entering the fleet, market needs were easily accommodated and except for a few instances, prompt ships were always available,' the report said.
'Despite a robust cargo market with record numbers of spot shipments being diverted from the Atlantic Basin to destinations east of Suez, chartering activity remained muted through July.'
The number of LNG ships worldwide will increase by more than 50 per cent in 2010 after shipyards delivered a record 58 vessels last year, David Fuller, the London-based head of LNG for RWE AG, said at the Gas Asia conference in Kuala Lumpur on Wednesday.
Daily charter rates in 2008 were in a range of US$40,000 to US$50,000 about 60 per cent of the time, according to the report.
Charter rates for ships transporting spot cargoes have declined to about US$35,000 to US$40,000 a day currently, Gunaseharan Ganapathy, vice-president of LNG at MISC Bhd, said on Wednesday. Charterers may have paid as much as US$75,000 a day during winter 2007, according to Drewry Maritime Services Ltd.
MISC, the world's largest owner of liquefied natural gas tankers, expects a surplus of vessels this year and next as ship deliveries precede the start up of projects and the global recession cuts Asia's demand for the fuel, Mr Ganapathy said.
LNG is natural gas that has been reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius for transportation by ship to destinations not connected by pipeline. On arrival, it is turned back into gas for distribution to power plants, factories and households. -- Bloomberg
Maersk tankers “Ready for CO2 transport market”
AP Moller – Maersk Group subsidiary Maersk Tankers says it is ready to enter the CO2 transportation market to help promote Carbon Capture and Storage (CCS), one of the technologies identified as key to mitigate the effects of climate change.
“With this initiative we want to show industrial leadership by demonstrating we can act on the global challenge that is carbon emissions,” says Martin Fruergaard, senior vice president, Maersk Tankers in a paper presented at the International Scientific Congress on Climate Change in Copenhagen last week.
“Our decision reflects the AP Moller – Maersk Group’s approach to the global challenge on climate change, which is to develop innovative and creative ways to limit carbon emissions,” says Mr Fruergaard.
Maersk Tankers says it has examined the business case for entering into the CO2 transportation market for either offshore storage or enhanced oil recovery (EOR), using CO2 to increase oil recovery rates in maturing fields. “By utilizing our experience in transporting liquefied petrochemical and natural gasses, we have developed a large scale case for transport of CO2 for storage or EOR,” says Martin Fruergaard.
According to Maersk Tanker studies, more than 750 million tonnes of CO2 are emitted from large stationary power plants close to the sea in the North Sea region alone. Fifteen handysize (20,000 cu m) gas carriers could transport more than half of Denmark’s annual CO2 emissions for storage in the North Sea, the equivalent of all CO2 from large Danish stationary emission sources. CO2 fraction retained in selected reservoirs is likely to exceed 99 percent over 1,000 years, according to the Intergovernmental Panel on Climate Change.
Furthermore, according to Maersk, transporting CO2 by sea is cost-competitive and more flexible than pipelines on longer distances or in smaller quantities.
“With this initiative we want to show industrial leadership by demonstrating we can act on the global challenge that is carbon emissions,” says Martin Fruergaard, senior vice president, Maersk Tankers in a paper presented at the International Scientific Congress on Climate Change in Copenhagen last week.
“Our decision reflects the AP Moller – Maersk Group’s approach to the global challenge on climate change, which is to develop innovative and creative ways to limit carbon emissions,” says Mr Fruergaard.
Maersk Tankers says it has examined the business case for entering into the CO2 transportation market for either offshore storage or enhanced oil recovery (EOR), using CO2 to increase oil recovery rates in maturing fields. “By utilizing our experience in transporting liquefied petrochemical and natural gasses, we have developed a large scale case for transport of CO2 for storage or EOR,” says Martin Fruergaard.
According to Maersk Tanker studies, more than 750 million tonnes of CO2 are emitted from large stationary power plants close to the sea in the North Sea region alone. Fifteen handysize (20,000 cu m) gas carriers could transport more than half of Denmark’s annual CO2 emissions for storage in the North Sea, the equivalent of all CO2 from large Danish stationary emission sources. CO2 fraction retained in selected reservoirs is likely to exceed 99 percent over 1,000 years, according to the Intergovernmental Panel on Climate Change.
Furthermore, according to Maersk, transporting CO2 by sea is cost-competitive and more flexible than pipelines on longer distances or in smaller quantities.
Looking to get out of the economic morass
The 6th edition of the Indian Ports & Shipping International conference was held on March March17th & 18th, 2009 at Hotel Taj President, Mumbai. It served to focus on issues that could put the maritime industry on the path to recovery.
Held by India’s premier organisation - the Bombay Chamber of Commerce & Industry - the deliberations centred round the theme The Maritime Industry - Catalyst for Economic Growth. The event drew several players from the logistic and maritime sector in the hope of finding some ready solutions to help wriggle out of the recessionary conduit.
There was a consensus that now was the time to build capacity and bring in efficiency. Infrastructure development would ensure better connectivity and help reduce cost. As ship building, ship breaking, dredging, offshore, inland and coastal water tourism and transport, manpower development, etc., was seeing a significant growth there was plenty of scope for investors.
“China has been able to sustain a 9% economic growth because it gave importance to this sector,” pointed out S. Hajara, chairman and managing director of Shipping Corporation of India (SCI) and president of the Indian National Shipowners’ Association (INSA). “In the present stage of economic development, India’s liner trade will see a high growth area. The average terminal capacity utilization at the country’s premier container terminal viz. JNPT was 90% vis-à-vis global average of 70% to 75%. We need to create more capacity.”
“We need to develop capacity so that we can operate at an acceptable level of 70%,” concurred Dr Anup Chanda, chairman of the Indian Ports Association. “We must go in for vertical expansion and not just horizontal. Unless we develop the coastal and inland waterways connectivity we will have to continue falling back on road and rail transport which besides being costly, cause pollution and congestion.”
Capt Sandeep Mehta, CEO, Mundra Port & SEZ Ltd, said, “The downturn should be considered as a time which is offering a breathing space to bring in to place the required infrastructure so that when the next spurt comes in we should not be caught napping.”
“The multiplier effect of growth in shipbuilding can create a total investment of Rs 37,000 crores in the Indian economy by 2012 and around Rs 2,22,000 crore by 2017,” stated Vijay Kumar, managing director of Bharati Shipyard Ltd. and president of the Shipyards Association of India. “This can enhance the overall economic output to around Rs 3,42,000 crore by 2017. Because of the shortage of shipyards capacity in India, the Indian Navy will get a large number of vessels constructed from outside India. The Navy also plans to take over the Hindustan Shipyard Ltd. The coast guard too is looking to having a large number of vessels constructed which may happen in foreign shipyards. Considering the massive employment opportunity and the benefit to the economy the government should restore the subsidy to make the shipyards competitive.”
Considering the importance of connectivity S. S. Hussain, chairman of JNPT did not want financial outlays made for developing connectivity to be considered as expenditure but as an investment. He welcomed the government plans for going ahead with the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 Crore.
“Most of the Indian Containers are trans-shipped at Colombo, Singapore and Dubai because Indian ports do not have sufficient draft and lack supporting infrastructure to handle fifth and sixth generation vessels,” observed Maya Sinha, Deputy Chairman JNPT. “With the increase in container traffic, shipping lines are in a position to provide their customers in India direct sailing, especially to destinations in Europe and North America which will lead to an increase in percentage of larger vessels coming to India subject to increase in available draft and other infrastructure.”
Competitive ports need a deeper draft as a pre-requisite in order to cater to increased traffic, accommodate main line vessels operating in the shipping trade, enhance capacity of the ports through construction of new ports or expansion and development of the existing ones and create hub port services for the trans-shipment of containers.
Rakesh Srivastava, Jt. Secretary, Ministry of Shipping, Government of India, outlined some of the present projects. Capital dredging for major ports with a target to increase the draught to between 14m to 17m is underway at JNPT, Paradip, Mumbai, Visakhapatnam, Tuticorin, Cochin and Ennore Ports at a total cost of Rs. 2382 Crore. “With the deepening and widening of the entrance channel at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore it would facilitate larger size vessels to call at these ports,” he said.
He also informed that 9 projects were under implantation at each of the major ports to provide a minimum of 4-lane connectivity at a total cost of Rs. 1859 Crores. Besides, each Major Port would have double line rail connectivity and in this regard eight projects totalling 961.56 km were under implementation at a total cost of Rs. 2118.84 Crore. Besides, two dedicated high axle load freight corridor each on Western and Eastern routes is underway.
Bhavesh Gandhi, Executive Vice Chairman, Pipavav Shipyard Ltd., too projected the immense opportunities that existed in ship building. He pointed out that INSA has projected that about 50% of the Indian fleet (about 37 vessels) have to be scrapped within the next five years to comply with the International Maritime Organisation’s regulations. Besides, the Association has projected an expansion of the Indian fleet to 830 vessels or 12 million Dwt by 2012.
Making a comparison he stated that the fuel consumption for every tonne/km of cargo carried through waterways is only 15% of that consumed by road and 54% of that by rail. Studies have shown that diverting 5% of road cargo to coastal shipping shall result in a saving of Rs 15-20 billion annually. In order to be competitive more cargo would be seen getting transported by the coast and inland waterways. Hence, there would be further demand for ship building.
Mr A. P. V. N. Sarma, Union Shipping Secretary the chief guest at the function in his theme address informed that the Ministry of Finance has been asked to consider a stimulus package for the ports and shipping sector. He emphasised that he was working towards facilitating all-round growth in the shipping, ports and associated sectors, with focus on increasing the national tonnage, identifying and implementing public-private partnership (PPP) projects, improving connectivity, innovating in dredging and other areas, and enhancing training standards.
Held by India’s premier organisation - the Bombay Chamber of Commerce & Industry - the deliberations centred round the theme The Maritime Industry - Catalyst for Economic Growth. The event drew several players from the logistic and maritime sector in the hope of finding some ready solutions to help wriggle out of the recessionary conduit.
There was a consensus that now was the time to build capacity and bring in efficiency. Infrastructure development would ensure better connectivity and help reduce cost. As ship building, ship breaking, dredging, offshore, inland and coastal water tourism and transport, manpower development, etc., was seeing a significant growth there was plenty of scope for investors.
“China has been able to sustain a 9% economic growth because it gave importance to this sector,” pointed out S. Hajara, chairman and managing director of Shipping Corporation of India (SCI) and president of the Indian National Shipowners’ Association (INSA). “In the present stage of economic development, India’s liner trade will see a high growth area. The average terminal capacity utilization at the country’s premier container terminal viz. JNPT was 90% vis-à-vis global average of 70% to 75%. We need to create more capacity.”
“We need to develop capacity so that we can operate at an acceptable level of 70%,” concurred Dr Anup Chanda, chairman of the Indian Ports Association. “We must go in for vertical expansion and not just horizontal. Unless we develop the coastal and inland waterways connectivity we will have to continue falling back on road and rail transport which besides being costly, cause pollution and congestion.”
Capt Sandeep Mehta, CEO, Mundra Port & SEZ Ltd, said, “The downturn should be considered as a time which is offering a breathing space to bring in to place the required infrastructure so that when the next spurt comes in we should not be caught napping.”
“The multiplier effect of growth in shipbuilding can create a total investment of Rs 37,000 crores in the Indian economy by 2012 and around Rs 2,22,000 crore by 2017,” stated Vijay Kumar, managing director of Bharati Shipyard Ltd. and president of the Shipyards Association of India. “This can enhance the overall economic output to around Rs 3,42,000 crore by 2017. Because of the shortage of shipyards capacity in India, the Indian Navy will get a large number of vessels constructed from outside India. The Navy also plans to take over the Hindustan Shipyard Ltd. The coast guard too is looking to having a large number of vessels constructed which may happen in foreign shipyards. Considering the massive employment opportunity and the benefit to the economy the government should restore the subsidy to make the shipyards competitive.”
Considering the importance of connectivity S. S. Hussain, chairman of JNPT did not want financial outlays made for developing connectivity to be considered as expenditure but as an investment. He welcomed the government plans for going ahead with the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 Crore.
“Most of the Indian Containers are trans-shipped at Colombo, Singapore and Dubai because Indian ports do not have sufficient draft and lack supporting infrastructure to handle fifth and sixth generation vessels,” observed Maya Sinha, Deputy Chairman JNPT. “With the increase in container traffic, shipping lines are in a position to provide their customers in India direct sailing, especially to destinations in Europe and North America which will lead to an increase in percentage of larger vessels coming to India subject to increase in available draft and other infrastructure.”
Competitive ports need a deeper draft as a pre-requisite in order to cater to increased traffic, accommodate main line vessels operating in the shipping trade, enhance capacity of the ports through construction of new ports or expansion and development of the existing ones and create hub port services for the trans-shipment of containers.
Rakesh Srivastava, Jt. Secretary, Ministry of Shipping, Government of India, outlined some of the present projects. Capital dredging for major ports with a target to increase the draught to between 14m to 17m is underway at JNPT, Paradip, Mumbai, Visakhapatnam, Tuticorin, Cochin and Ennore Ports at a total cost of Rs. 2382 Crore. “With the deepening and widening of the entrance channel at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore it would facilitate larger size vessels to call at these ports,” he said.
He also informed that 9 projects were under implantation at each of the major ports to provide a minimum of 4-lane connectivity at a total cost of Rs. 1859 Crores. Besides, each Major Port would have double line rail connectivity and in this regard eight projects totalling 961.56 km were under implementation at a total cost of Rs. 2118.84 Crore. Besides, two dedicated high axle load freight corridor each on Western and Eastern routes is underway.
Bhavesh Gandhi, Executive Vice Chairman, Pipavav Shipyard Ltd., too projected the immense opportunities that existed in ship building. He pointed out that INSA has projected that about 50% of the Indian fleet (about 37 vessels) have to be scrapped within the next five years to comply with the International Maritime Organisation’s regulations. Besides, the Association has projected an expansion of the Indian fleet to 830 vessels or 12 million Dwt by 2012.
Making a comparison he stated that the fuel consumption for every tonne/km of cargo carried through waterways is only 15% of that consumed by road and 54% of that by rail. Studies have shown that diverting 5% of road cargo to coastal shipping shall result in a saving of Rs 15-20 billion annually. In order to be competitive more cargo would be seen getting transported by the coast and inland waterways. Hence, there would be further demand for ship building.
Mr A. P. V. N. Sarma, Union Shipping Secretary the chief guest at the function in his theme address informed that the Ministry of Finance has been asked to consider a stimulus package for the ports and shipping sector. He emphasised that he was working towards facilitating all-round growth in the shipping, ports and associated sectors, with focus on increasing the national tonnage, identifying and implementing public-private partnership (PPP) projects, improving connectivity, innovating in dredging and other areas, and enhancing training standards.
