Tel:
Wingbury Courtyard Business Village Upper Wingbury Farm, Wingrave Aylesbury, Bucks, HP22 4LW
Tel: +44 (0) 1296 682051
Fax: +44 (0) 1296 682156
Publisher Sean Moloney
Editor Samantha Giltrow
Advertising Sales Exec Julian Berry
Accounts Sarah Jones
Production & Design Diptesh Chohan, Hannah Black The Ship Supplier is
©
Dear ISSA Members and Maritime Colleagues
t this mid-point of the year and six months into my Presidency I feel it is a good moment to pause and take stock of where we are with the various projects your Board has under way.
So here goes!
Our much trumpeted Project Watchdog is now on the launch pad and very soon Bruce Hailey (the ISSA Lawyer) will be introducing the service in detail to the global membership.
Work on updating the ISSA Articles of Association continues and I expect the final draft to be presented to ISSA Assembly at their Meeting in November. A review period has been scheduled in the run-up to November’s Assembly Meeting so that the new Articles can be voted upon.
Succession planning for both our ISSA Secretary and our ISSA Vice-President (Quality) is well under way with new team members scheduled to be in post and under-studying the incumbents in the next few months.
The ISSA website refreshment is also scheduled to come online during the next few weeks. To comply with card processing payments procedures designed to thwart fraudsters, all card payments to ISSA will be made on a new dedicated section of the website presently under design.
Work is progressing well with arrangements for this year’s 63rd ISSA Convention & Trade Exhibition in Istanbul. You can find full information, register and participate on the dedicated website: http://www.issa2018istanbul.com/
One of our young ISSA Members has come up with the idea of celebrating ‘The Day of the Shipsupplier’ each year. We are looking at how this can be done and setting aside 5th October (the day ISSA was founded in 1955) as the dedicated day. Nominations will be invited for Shipsupplier of the Year award to be announced on the celebration day with the award being presented at Convention thereafter. I would like to recognise publicly how much we appreciate this great idea.
The dedicated team is busy preparing the new edition of the ISSA Ship Stores Catalogue. Further news of a publication date will be forthcoming shortly. Meanwhile anyone interested in having their products reviewed for inclusion or any other editorial and content suggestions is asked to forward details to secretariat@ shipsupply.org
We have continued with our representative role at the International Maritime Organization (IMO) and attended the recent Facilitation Committee Meeting. IMO Council is coming up very soon and I hope to attend myself with our Secretary on this occasion.
The work ISSA does for members ‘behind the scenes’ at IMO and via OCEAN at the European Commission is continuous and pays real dividends, benefiting all members in their daily work.
As you can see your Association is busy on your behalf but if any member has any other subject they would like to suggest we are always eager to hear from you.
You can keep up to date with the latest news on the ISSA website at www.shipsupply.org and send in your comments and views to the ISSA Secretariat either by phone on +44 (0)20 7626 6236; Fax +44 (0)20 7626 6234 or alternatively email secretariat@shipsupply.org
In addition, I would ask all Members to let us know of any news-worthy activities they are involved in so we can increase the amount of Association News within the magazine in the forthcoming editions.
With that, I wish everyone well for the coming period in the always exciting world of ship supply.
Saeed al Malik ISSA President
The ship supply sector continues to remain competitive and challenging in Singapore, according to Danny Lien, President of the Singapore Association of Ship Suppliers.
He said companies in the region were still facing global competition as ship owners and managers will now purchase from the most competitive ports of given the opportunity.
“Singapore companies are faced with escalating operating costs as well as a tight labour market,” he told The Ship Supplier
“In view of these challenges, the Singapore government has recently launched the Industry Transformation Map (ITM) for the Sea Transport industry, which is spearheaded by the Maritime & Port Authority (MPA).”
“
” Singapore companies are faced with escalating operating costs as well as a tight labour market
Danny Lien, President of the Singapore Association of Ship Suppliers
He said that plugging into the ITM, SASS had aligned its focus on the following three drivers – Adoption of Technology; Upskilling through Training; and Securing the Future through Education.
“Through these three key drivers, SASS would want to position its members and Singapore as the global leader in the digital transformation of the industry,” said Mr Lien.
Mr Lien said there were currently numerous challenges faced by ship suppliers in Singapore. Most pressing was the lack of new talent. The majority of the competition is also competing solely on lowering margins, he said, and though it is a strategy adopted by many to gain wallet share, it is not a sustainable strategy.
“The inability to generate sufficient margins to fund growth will create vicious cycle. Infrastructure and processes cannot be improved or upgraded. Staff cannot be better trained or better incentivised. All these effects are certainly more detrimental to the future of the industry,” he said.
Mr Lien said the next 12 to 18 months would be critical for businesses to develop a digital transformation roadmap.
“As the marine industry transforms and adopts technology to enhance its processes, companies that lack this capability will be greatly disadvantaged or made irrelevant in the new economy,” he said. “Companies that continue to rely heavily on labour to perform jobs that can be done through automation and robotics will eventually suffer from high labour costs and process inefficiencies. The future will be for the companies that have made the effort to future-proof themselves and not be disrupted by their competitors.”
SASS has been continuing to work hard with various government agencies to promote the ship supplies industry in Singapore.
In 2017 it launched the SASS Academy and curated three industry specific courses for its members. The courses continue to be co-funded by the Employment and Employability Institute (E21) which also opened the courses to
people outside the industry who are interested in joining the ship supply industry.
SASS is also collaborating with Enterprise Singapore (ESG) to help Singapore companies in the ship supply industry to upskill and upgrade their people and processes.
With regard to technology, SASS is partnering Agency for Science, Technology and Research (A*Star) to develop technologies applicable to the industry. SASS is also currently working with the two port operators in Singapore, PSA and Jurong Port, to develop mobile capabilities and processes to increase productivity and connectivity between the port and port users.
“With all these initiatives in place, SASS has experienced a renewed interest in its membership,” said Mr Lien.
Total membership currently stands at 108, which includes Ordinary, Associate and Honorary membership.
Mr Lien added: “Moving forward, SASS expects to play a major role in transforming the Singapore ship supplies landscape. From adoption of technology, to training and education, SASS will continue to work with government agencies, institutes of higher learning as well as various stakeholders to shape Singapore as the global leader in the ship supplies industry.” u
Ship suppliers in Australia have been warned to be increasingly careful with credit by the Australian Ship Suppliers & Services Association.
It was one of the points raised by Chairman Jim Costalos at the Association’s Annual General Meeting in Brisbane at the end of last year.
Mr Costalos said like 2016, 2017 had again proved to be a difficult year for the industry worldwide “which unfortunately impacts on us all”. He added: “General word is that the industry will see some relief and an upturn by the end of 2018. In the meantime, numerous ship owners have gone into receivership or lost their vessels to their banks. I believe we will see more such action over the next 12 months.”
Other topics discussed at the AGM included the success of the 62nd Issa Covention & Trade Exhibition held in Athens last November and the ISSA Quality certification. He stated that 539 companies were certified worldwide and as ISSA itself was now ISO-certified, this gave the ISSA Quality Certification increased value.
The meeting also discussed the point of re-looking at membership
of Shipping Australia and Mr Costalos, who was elected onto the ISSA Executive Board in 2016 for a three-year term, updated members on the Executive covering topics of national and international interest. One of these was ISSA’s major achievement at the International Maritime Organization (IMO) regarding abandoned ships which has led to ship suppliers now being guaranteed payment for provision supplies as a ranking creditor of the ship.
Mr Costalos thanked the Association’s Secretary and Treasurer, Paul Begg, for his great effort and efficiency again in 2017 and “keeping the Association rolling nicely” and wound up the meeting saying: “I wish you all a profitable year ahead with minimal bad debt situations.”
He added that he looked forward to seeing members for the 2018 AGM which will be held in Melbourne or Hobart (on rotation) later this year. u
The importance of safety and traceability is becoming stronger and stronger in the food and beverage supply sector, according to Cor van Esch, Managing Director of Netherlands-based suppliers B&S Bosman Global.
“Authorities are creating more legislation to ensure these aspects are dealt with accordingly,” he said.
“B&S realised many years ago that it is very important to follow the legislation and to be compliant with the relevant EU laws and guidelines. Being an important supplier and distributor to ship suppliers worldwide, we consider this to be an important part of our role in the supply chain.”
He said to fulfil legislative requirements, B&S has
representatives on the main EU Boards in Brussels dealing with customs and veterinary legislation.
“In this way we can inform the EU decision makers about the specific nature of ship supply in order to protect the interests of the ship supply industry in general.”
The ever-increasing importance of legislation has also led to more attention being placed on the provenance of products. Customers want to know where the products have come from and are demanding more traceability.
“Most customers are aware of countries where, for example, the veterinary control is not as adequate as it should be, and because of that they do not want products originating from such countries.”
B&S says there has been a “tentative” demand for so-called environmentally friendly produced products, with no big change in the type of products being ordered.
“We hear our clients are still being faced with the fact that their customers continue with a strong focus on price,” said Mr van Esch. “They tell us that for that reason they do not have the opportunity to innovate and to replace food products by more healthy products.”
Technology is also changing the way suppliers deal with their customers and Mr van Esch says this is vital if suppliers are to move forward in such a competitive sector.
“Digitalisation is the key to optimise the cooperation between all parties in the ship supply chain. Paperless procedures and operations become more and more the standard and improve the cost effectiveness of companies. All parties need to invest in digitalisation in order to remain in business.”
Digitalisation is one of the recent big developments at B&S as it is currently implementing a corporate digitalisation programme. The system includes software systems for procurement, sales and marketing and warehousing to streamline internal operations.
“The system enables us to track and manage inventory levels across our platforms. Integration into the systems of our customers and suppliers offers them the possibility to track our inventory, supporting them in optimising their own inventory management by making their order placements more organised and cost-efficient.”
There have also been other big developments for B&S recently. After many successful years of private ownership, B&S Group took the next step in its development by becoming a listed company.
“Being a listed company increases the public awareness of B&S Group and provides us with financial flexibility through access to a wider range of capital-raising options to continue to realise our growth ambition,” said Mr van Esch.
It has also opened a new state-of-the-art semi-automatic warehouse which Mr van Esch says will enable and facilitate growth of the business.
Situated next to B&S’ existing facilities, it increases capacity
from 27,000 to 63,000 pallet locations, and is equipped with the most up-to-date storage systems and latest equipment, reducing warehouse space requirements and allowing faster order packing and delivery compared to conventional warehousing systems.
It will enable B&S to grow further in what has become a very tough market with more and more consolidation. Just recently big suppliers Wrist Ship Supply, based in Denmark, and Netherlandsbased Klevenberg agreed to consolidate their global operations.
Can Mr van Esch see more consolidation?
“Cost effectiveness remains a basic requirement within the ship supply industry. Companies have to make considerable investments, not only to meet the requirements of their clients and suppliers but also to comply with the increasing requirements of the various authorities,” said Mr van Esch.
“We expect that consolidation within the ship supply industry will be one of the consequences for companies to be able to support these investments financially.”
Another company which expects more consolidation is Garrets International, part of Denmark-headquartered Wrist Ship Supply.
Jointly commenting, Christopher Little, Head of Operations Support Services and Mogens Thyssen, Head of Commercial, said: “The industry is steering through tough times and this means that in order to survive, you need to grow, and this will only be possible for those with strong financial owners and therefore will mainly happen through mergers and acquisitions. The big players will be getting bigger and the local ‘mom and pop shop’ will be struggling.”
Garrets offers a wide range of bespoke business models with the aim of taking away the additional workload from the Master. These include managing provision sourcing and supply at an agreed budget and ensuring food quality standards are the best available, in addition to other services such as menu planning, access to food specialists to help manage the galley department, focusing on healthy eating, food safety, waste reduction and budget optimisation.
Like B&S, it too is investing heavily in digitalisation in order to maximise business efficiency and to ensure customers have access to the latest data to help them manage their vessel budgets. The supply network ranges from its own in-house supply network operated by Wrist to local suppliers in remote parts of the world.
“While there are less challenges internally, the systems we use enable the most remote suppliers to work in perfect harmony,” said Mr Thyssen.
“It is not all smooth sailing though. A high percentage of commercial ships have very limited push/pull data and this is something we are actively innovating within our systems.”
The move towards new technology has also resulted in the development of an electronic cookbook and Garrets has also launched the concept of bundled service together with Wrist Ship Supply, and developed a new digital Stores Shopper among others.
“We are currently on a digital journey and through that, a number of new value adds for the customers has become available in 2018 and will be launched in 2019,” said Mr Little and Mr Thyssen.
Garrets says there are many challenges facing the food and beverage supply sector at the moment including price fluctuations. Global food prices are seeing unexpected spikes as supply and demand increases and this places additional pressures on suppliers to source good quality food at reasonable prices.
“The increase in food price is a real challenge for supply management companies like Garrets who have to ensure the vessels operate within their victualing budget,” said Mr Little.
Like B&S, it says provenance is still an important factor for food supplies, and national products are a requirement under the Maritime and Labour Convention (MLC) 2006.
“They are an essential part of our supply challenge, especially for a vessel that operates thousands of miles from their Flag State and has a diverse crew nationality.”
Mr Little and Mr Thyssen said that as the global supply network was efficient at export and import, provenance of food was less challenging in some areas.
They added: “Provenance is also important to Garrets as we use this to advantage the vessels’ purchasing volume. For example, our global price index allows us to see where vessels should store their provisions to ensure budget optimisation.”
As with B&S, healthy eating plays an important focus within Garrets’ services, as it says most customers and their crew already know how it can impact positively on their lives.
“The link between healthy eating and crew wellness and wellbeing is a hot topic and is often a key discussion point from vessel Masters, something Garrets takes very seriously and is mission focused on,” said Mr Little and Mr Thyssen.
Garrets’ Superintendents go onboard vessels to conduct training, nutritional guidance, menu planning and provision management with the aim of ensuring crew have access to nutritionally-balanced, quality food.
The company also produces monthly newsletters, social media posts and remote menu planning assistance.
“All this, combined with certified global supply, ensures the vessels are receiving the best level of service and food at every port,” concluded Mr Little. u
Aduty free wholesale supplier has diversified into ship supply to help the business grow in what he has described as a “mind-boggling” economic situation in South Africa.
Julian Munsamy, owner of Durban-based SAI Duty Free, says the market is the quietest it has been for over 10 years.
“The economy is just generally down in South Africa and this is one of the main issues. It is not just for shipping – it is across the board. We didn’t see it coming,” he told The Ship Supplier
He also said the change in leadership of the country had caused political uncertainty which had also added to the downturn in the economy.
“We have found that a lot of ship suppliers who were importing stores or bringing in major stocks
to warehouses have cut back on stocking a lot of products because they are a little bit scared of how the market will go. In saying that, there are indications that maybe going into July people are expecting or hoping the market will change. We are starting to actually grow the volume again but we don’t know what will happen.”
He added: “There are so many different scenarios that are affecting this economy and it’s a mind-boggling situation to be in.”
For the last 12 years, SAI Duty Free has been supplying ship chandlers but in February it diversified the business and set up S.A. International Ship Supply to supply directly to vessels. It now supplies everything from provisions to cabin and deck and engine and medical, as well as continuing to operate SAI Duty Free.
“We had to look at other options to grow the business,” said Mr Munsamy. “We had to take a chance. If we work directly with the vessels maybe we can also be more beneficial to the vessels because if they are looking for pricing and so on, cutting out the middle man is a win-win situation.”
The duty free sector of the SAI Group of Companies still forms a large part and the company supplies many cruise ships in the port.
However, the main cruise liner in South Africa, MSC, is planning a big expansion of the passenger line terminal to
facilitate more port calls and Mr Munsamy is worried the company will bring its own stores in.
“The only way we actually stand to benefit is from the growth of locally produced products,” he said.
Fortunately, sales of the ‘big five’ – beers, ciders, wines, sparking wines and ciders – are still doing well on the duty free side, as are sales of some fresh and frozen products.
“It could be better though,” said Mr Munsamy, “but the South African Rand has taken quite a dive against the Dollar.”
He did say more ships now seemed to be coming in and this could increase the volume. The larger cruise ships were wanting more of the iconic brands such as Heineken beer and Johnnie Walker whisky.
“They want a premium name but they want a value for money product,” he said. u
The only way we actually stand to benefit is from the growth of locally produced products
“ ”
Julian Munsamy, owner of SAI Duty Free
Erol Sarikaya, CEO Newport Shipping
How important is it to build relationships with your suppliers and what are you looking for in your ship suppliers?
Logistics play a large role in providing top quality ship repair services, hence strong supplier relationships are a basic component for any ship repair yard just to warrant drydocking consideration. Simply put, technical departments are under pressure to do more with less. Our strong supplier network allows us to streamline the repair process ensuring quick response times and benefits from aggregation where possible.
What are some of the issues you have with suppliers and how can they help you with these?
The typical cost-quality-time triangle affects all supplier relationships. We eliminate cost issues by maintaining healthy payment terms with our suppliers. Furthermore, our centralised procurement system places a premium on quality as our spares and equipment orders are assured by third party class societies through our partners. With a strong network in place we naturally gain time efficiencies and are well positioned to address timely issues that invariably arise during short repair durations, such as emergency spare needs being discovered at a late juncture.
How has procurement at your company changed in recent times?
Technology is helping to improve procurement and reduce lead times, enabling us to meet ship owner demands under increasingly shortened time tables. These benefits really pay off during emergency dockings, where having a nearby slot readily available and the ability to solve procurement needs within a few days makes all the difference.
Do you stick with the same suppliers or are you always looking for potential new sources of products and services?
Our operating team in Turkey and Singapore has spent significant efforts in establishing cooperation with anchor suppliers. Similarly, we are always on the lookout for suitable partners whom can add value to our ecosystem sharing the same objective in better servicing ship owners together.
Is cost still a major factor in who you use or do you place higher importance on other factors such as quality and business relationships and what do you look for when buying supplies?
Cost and quality are the two most important factors we focus on. Specifically, this means bringing the highest level of quality for our services within our customer’s budget. Since we guarantee the delivery of ordered spares and owners extras, we are on the hook for any delays from the time a vessel enters to when it leaves one of our yards. This liability we undertake wholly and becomes our guarantee to the ship owner.
How has technology changed your procurement process?
In short, technology is helping increase and improve our service offering to include works not traditionally taken on by shiprepair yards from procurement to quality control. We at Newport Shipping are developing plans for technology integration into our services and streamlining our supply chain, towards achieving further cost efficiencies, visibility of our operations and business insights. Plans are expected to be announced before the end of the year. At the end of the day, shipping is a small network and one is only as good as your least satisfied customer. For us, this represents a great opportunity as we continue to demonstrate the advantage of our comprehensive service one vessel at a time.
ChartCo, the global supplier of maritime digital data and compliance services, has announced the appointment of Peter McNaney as the company’s Chief Technical Officer (CTO).
This new executive role has been created following a highly successful period for London-based ChartCo, which has seen rapid growth following the introduction of a range of new products and services as well as new acquisitions.
With a strong technical background spanning over 30 years, Mr McNaney has extensive experience at director and board level and brings a wealth of experience in product innovation and digitalisation gained in industries such as pharmaceutical and IT. In conveying these skills to his new position, Mr McNaney will be instrumental in progressing the marine industry’s digital journey. His main responsibilities will be to expand ChartCo’s research and development team, integrating future product acquisitions and continuing to develop the ChartCo product suite. Easy access to ChartCo’s maritime platforms is a major factor in enhancing customer experience alongside dedicated technical support. This will also be an important part of McNaney’s remit.
Commenting, Mr McNaney said: “ChartCo is synonymous with innovation in navigation, regulation, safety and environmental compliance. By leading the field in software
development for these specialist areas, the company is dedicated to delivering solutions that outperform in a constantly changing marine industry. I am eager to be taking on the many challenges that this new role brings, particularly during such an exciting period of the company’s growth.”
ChartCo’s CEO Martin Taylor said: “We are committed to driving forward our acquisition strategy and the development of our market leading range of products and services, so it is vital to have onboard someone who has the necessary experience to help us deliver this. We are delighted to welcome Peter, who has a wealth of experience in these fields. His appointment places us in an even stronger position to meet the changing demands of our customers.” u
Friends, family and colleagues have been mourning the passing of Dick Peterse, a familiar figure in the Dutch Association of Ship Suppliers.
Mr Peterse, who died in March, was a member of OCEAN – the European Ship Suppliers Organization ¬– and was one of the founding members of the OCEAN Veterinary Working Group in 1995.
OCEAN German Board Member Wolfgang Sump, who is also Chairman of the OCEAN Veterinary Working Group, said he had known Mr Peterse for nearly 25 years and they had become personal friends despite the fact their companies were competitors in a hard market.
“For both of us, the interests of the European ship supply industry were always top priority and so we jointly fought to safeguard the specific veterinary rules for our industry in Europe,” he said.
They succeeded in completing the Council Directive 97/78 in 1997, which has been the main legal from up until now.
“For more than 20 years we cooperated very closely to monitor the developments in Brussels and together we visited the EU-Commission numerous times,” said Mr Sump.
“One of our industry’s assets was the trust Dick had built up with the EU-Officials and the superb relation to the official bodies. We are now in a very good way to bring the European veterinary legislation to the next generation and our success is, to a great deal, the result of Dick’s dedication to the industry.”
Mr Sump said that even when Mr Peterse has stepped back from the stage in 2015, he always had good advice when he called him on a regular basis.
In a touching tribute, Mr Sump went on:“Our industry and myself have lost a fabulous expert and a superb personality. Dick Peterse has rendered outstanding services to the European ship supply industry. We will never forget him. Rest in Peace, my friend.” u
NBS Maritime, a second time exhibitor at Posidonia, welcomed a number of ship owners, shipmanagement companies, partners and other maritime professionals to its stand at the 2018 exhibition at the Metropolitan Expo Center in Athens.
Alexander Alexandrov, Managing Director of NBS Maritime, which supplies in Bulgaria, Romania and Turkey, commented: “We were glad to take part at Posidonia 2018 and to highlight some of the major steps for NBS in the past two years. NBS Ship supply network has continued to expand with the opening of NBS Maritime in the Netherlands in 2017. NBS Communications has introduced NBS cloud-based network management solution –SeaDirect. We were delighted to share this news with the audience at one of the biggest shipping events – Posidonia. It is truly a meeting point and a forum for the global maritime industry.” u
Asea change in marine signage comes into force on 1st January 2019 when all new vessels will be fitted with signage conforming to IMO resolution A.1116(30), which brings the design of IMO signs inline with that of ISO safety signage.
Furthermore, after this date all existing vessels will need to update their signage when they undergo repairs, alterations, modifications and outfitting.
UK-based signage manufacturer and supplier Maritime Progress Ltd is presently providing both the ISO and
older IMO signs, however where the difference between the two is minimal, it is moving over to the ISO signs solely, so if the older IMO and ISO signage is used on the same vessel, there can be no confusion to the crew or passengers.
Perhaps the most common use of the seagoing sign on today’s vessels is the escape route. While the traditional version shows a ‘running man’ in white and the escape door in green, this making the man the focal point, the ISO version shows the door in white and the man in green so moving the focus from the man to the door.
Robert Tremlett, Head of Marine Technical Sales at Maritime Progress said the company was well prepared for the transformation from old to new signage as indeed it was regarding other regulatory changes affecting their products. “We try to inform our customers of any changes of regulations and to have the products available several months ahead of when the regulations come into force”.
It is not just in the area of signage that Maritime Progress has to keep ahead of regulatory changes. The company also produces educational material and record books.
One of its latest releases is the Water Ballast Record Book, which is required by the 2004 Ballast Water Convention, which came into force last September. It requires vessels to keep records of all ballast operations including loading and discharging as well as whether the ballast is loaded into cleaned or dirty tanks. The tanks used and quantities must also be identified.
More recently, Maritime Progress also brought out a Garbage Record Book (GRB) to comply with amendments to
MARPOL Annex V adopted at MEPC 70, which entered into force on 1st March 2018. The changes included a new GRB format with a new garbage category for e-waste. The GRB is divided into two parts: Part I for all garbage other than cargo residues, applicable to all ships and Part II for cargo residues only applicable to ships carrying solid bulk cargo.
The GRB garbage categories have also been amended to include e-waste, and the category for cargo residues has been split into HME (harmful to the marine environment) and non-HME.
Maritime Progress Ltd also produce other record books required for ISPS, Oil record keeping and Bio Fouling.
“To minimize transfer of invasive aquatic species, ships are encouraged to implement biofouling management practices that include use of anti-fouling systems, and other operational management practices to reduce the development of fouling. Traceability is needed as some treatments can themselves leach toxic chemicals that can have an adverse effect on local fauna, and as such the Bio Fouling record book provides important information for some authorities.” u
The German Shipsuppliers Association held its AGM in Hamburg in April, led by Chairman Jens Pfeiffer. It was attended by 41 representatives from 33 member companies and the Board and Secretary were unanimously re-elected.
Looking back on 2017, the Association work was successful. At European level, ship suppliers were successfully represented in customs and tax matters by OCEAN, at international level by ISSA.
On the German market in 2017 Mr Pfeiffer stated in his report that the messages from the annual internal Association survey were again “challenging and difficult”.
Financial difficulties of ship owners would have had negative consequences as bad debt losses but consolidations would also have positive effects. Charter and freight rates would have reached cost-covering or adequate levels in many areas and new customers could also be won. The cruise sector continues to boom and Offshore is slowly starting to move again. Negative effects were the loss of customers and bad debts due to ship insolvency, the decline in margins due to customer concentrations, increased administrative effort and partly overburdened authorities, especially in intra-Community traffic.
The product areas of Service & Repair and Spare Parts, as well as F & B, Catering and Equipment in the hotel sector, were all mentioned positively. The “traditional” goods delivery would increasingly be replaced by total service offers.
With regard to the competitive situation there would still be a consolidation trend, and there would be a trend that demand would be less for pure goods delivery, but more services, including goods deliveries. For example, specified supply areas for seagoing vessels would be awarded as a package, including budget monitoring.
Business development in tax-free trading was described as “positive” compared to the previous year.
During his speech, Mr Pfeiffer emphasised that despite a lot of ongoing changes, also in fields like digitisation, operations of ships or new approaches in the whole supply chain, ship supply is an essential part in the shipping industry and fundamentals of successful ship supply today and onwards do and will include good quality service, flexible solutions and customer orientation.
The 2017 elected board will remain in office until 2020. It is composed of: Jens Pfeiffer, Chairman; Wolfgang Sump, Deputy Chairman; Mathias Overhaus, Treasurer; and five other members from Bremen, Hamburg, Kiel and Rostock.
Guest speaker Alfred Hartmann, Hartmann Group, Leer and President of the Association of German Shipowners spoke on “Climate protection, digitisation and intensified competition - current challenges for German maritime shipping”.
At the end of 2017, the German Shipsuppliers Association had 127 members. u
Wrist Ship Supply and Rotterdam-based Klevenberg have entered into an agreement on a consolidation of the two companies, subject to approval by the relevant competition authorities.
It is said that by joining forces with Wrist, Klevenberg will benefit from Wrist Group’s global network and extensive sourcing capacity, while Wrist will benefit from Klevenberg’s customer service.
Both companies provide bundled services, increasingly demanded by customers in their pursuit of efficiency.
Klevenberg’s experienced management team will take a lead in the future joint operations out of Rotterdam, where the company has large and modern warehouse and storage facilities at Bunschotenweg, centrally located in the port area. The consolidation also includes the ground transportation company of C. Maat Transport, Rotterdam.
In 2014, Klevenberg established operations in Houston, US, catering for the Atlantic and Mexican Gulf markets. These operations are to be consolidated with Wrist’s operations in Houston and the region.
The Wrist Group is continuously examining various growth opportunities, including acquisitions as well as start-ups. More recent expansions include the acquisition of Garrets International in 2016 and the starting up of new branches in Hamburg and Las Palmas. Last year it added an office in Shanghai, targeting newbuildings needing a broad spectrum of provisions and stores before delivery from shipyards to the ship owners.
The two parties have agreed not to disclose financial details and Wrist Ship Supply will be the continuing legal entity. u
By Felicity Landon
‘United we stand’, said the members of the new Ballast Water Equipment Manufacturers’ Association when they launched BEMA earlier this year. In a world of confusion, contradiction, conflicting standards and delays, and an understandable reluctance by many ship owners to commit to investment, the creation of such an association would seem well overdue.
In fact, the idea had dated back many years, said Mark Riggio of Hyde Marine, President of the new association. What made it different this time was ‘the realisation that we needed to have a unified voice in the conversation’.
Andrew Marshall, CEO at Coldharbour Marine and secretary of BEMA, told TSS: “There were repeated efforts over time to get a group together to represent the industry and they had always fallen down.” This was mainly down to issues of conflict and competition, he said, but now manufacturers were ‘older and, hopefully, wiser’.
“With the Ballast Water Management (BWM) Convention, its ratification and its entry into force, we have seen what appear to be continuously moving goalposts in approvals and certification – and that has not been adequately addressed by manufacturers, because they have had no unified voice.”
That lack of a unified voice allowed some ship owners to take advantage, lobbying flag states to resist ratification, lobbying the IMO and other regulators with demands of clarity on technology, and pushing for what they classed as tighter testing standards, said Mr Marshall.
“That put more delay in. There was no voice pushing back from the industry saying – hang on a second, that is not strictly accurate, or what you have asked for isn’t scientifically possible. This new organisation is a case of ‘better late than never’.”
As well as feeding into the IMO and other regulatory bodies, BEMA will provide a point of reference for owners seeking clear technical and policy information from an organisation which is representing various technology types and around 30 members so far, he said.
“One of the points I have been making since the beginning is that no one technology – be it UV, chlorine, chemical, inert gas, ozone or any variation on those themes –is suitable for all types of vessels in all operating conditions,” said Mr Marshall.
“Owners should do their homework and not just take the attitude that ‘it’s certificated, it’s cheap, I will have it’. They should look at the vessel, where it is going, the type of ballast operations, and compare the performance of each technology against that. One size doesn’t fit all.”
For example, UK-based Coldharbour’s solution based on inert gas technology is aimed at the very largest vessels – tankers, bulkers, LNG carriers. “There are ships that our technology is absolutely perfect for, but it wouldn’t be suitable for cruise ships or box ships.”
Mr Marshall doesn’t shy away from controversy – and he related conversations with ship owners’ technical managers who were quite open in their ambition to delay as much as possible. “It was a case of ‘the more obfuscation and confusion I can generate, the more likely I am to get my way’. But you have to be careful what you wish for sometimes – my personal view is that what we have ended up with is an un unholy mess with owners having to find solutions to ballast water requirements and the sulphur cap around the same time.”
Such delays also discourage investment by technology companies, he added.
“There is no credibility in terms of environmental regulation and the timetable for implementation and that is a major dissuader for people making significant investments. Ballast water manufacturers have invested millions of pounds in development and technology, and the goalposts move all the time – making it just about as difficult as possible for people to do this.”
BEMA should be a strong voice to be heard when proposals for change come up, said Mr Marshall. “All of these challenges represent barriers to actually getting what everybody wants, which is a cleaner, greener environment and suitable and sensible technology properly applied and rigorously monitored to help deliver it.”
In contrast, the ‘evangelists’ who took the lead and installed systems five or six years ago may have to rip out those systems because of changes in standards and certifications: “This is a salutary lesson in how not to go through environmental legislation.”
While most ballast water treatment systems work by treating the ballast water at the point it is taken onboard and usually incorporate a filtration process and chemical dosing, Coldharbour’s system is an in-voyage process which addresses organism regrowth, a significant issue on long-haul routes and lengthy ballast voyages. Incorporating gas lift diffusion (GLD) units to ensure that the contents are stirred and treated, the system removes oxygen and temporarily lowers the pH of the ballast water, a combination fatal for most marine organisms, while the rest are dealt with by gasinduced ultrasonic cellular disruption. u
‘Start
Norwegian ballast water treatment specialist Optimarin has reported a recent surge in new orders; it says it has now sold about 600 of its US Coast Guard approved systems, and orders are up 50% year on year.
CEO Tore Andersen (pictured) said inquiries are largely from ship owners trading in US waters, as USCG tightens up on the implementation timetable. “When it comes to IMO-sailing ships, they still have a year to do it but they still need to start moving,” he said.
“I don’t foresee any challenge with supply. But what could be a challenge is if the owner is still dragging it out and waiting or hoping for whatever, then I can see the engineering capacity starting to tighten up. That could be the bottleneck – if you don’t start moving, you could end up struggling to get the engineering people on board. My message is – don’t sit there and wait until the last moment because you could run into a lot of extra cost because you have to rush the engineering company.”
Mr Andersen said that the formation of BEMA was needed. “We need to be shown as one industry, not a bunch of single suppliers – because it is a big industry and we really want to stick together and see what can be learned from each other.
“What can we help each other with? How can we tell the market that this is what you have to look at, this is what it’s about? We can make sure the rules are as they are, and that everybody is following them. We want to be looked at as a serious industry.”
Optimarin, the first company to install a commercial system 18 years ago and the first to receive USCG approval, offers experience and flexibility in its system, said Mr Andersen. “We are doing ballast water treatment only and we are extremely dedicated to it.
“This isn’t only about price. It is about getting equipment on board which should be working for the next 20 years or more. We say to owners – prepare yourselves, don’t wait, plan what you are going to do.” u
Advice issued by class society ABS emphasises that now is the time to fit a system – the USCG won’t be tolerating any more delays in compliance without good reason.
“After many years of delays, ballast water discharge regulations globally and in the US are finally becoming real for ship owners,” said ABS Senior Engineer Evon Li. “While the IMO has agreed to some limited delays in entry into force of the BWM Convention, USCG policy is evolving from implementation of its discharge requirements to enforcement.”
Ship owners trading in US waters were until recently able to defer installation of a BWM system on existing vessels by obtaining a USCG extension. Vessels with dry docking
in 2016 or 2017 were able to get an extension to the next scheduled drydocking in five years’ time due to insufficient availability of USCG approved systems, he said.
However, based on a recently published circular, “ship owners can no longer rely on this system of extensions to delay implementation”; the USCG has said that the six systems already approved should be able to cover nearly all classes of vessels and operational requirements, and timescales have been limited.
These changes could introduce new challenges for owners and operators trying, for commercial reasons, to align USCG compliance with the later IMO compliance date, warned Mr Li. u
Copenhagen-based BAWAT has used the pasteurisation-based technology in its ship solution to develop a mobile ballast water treatment system for use in ports and shipyards. Built within a container, this system can be loaded on to a flatbed truck or barge, taking ballast water treatment to vessels alongside or at anchor.
“What you see here is a spin-off of what we are using on ships,” said CEO Kim Diederichsen.
“Our technology is based on pasteurisation; we finalised the mobile system a year ago and following lab tests and R&D we built our first unit. Now it is being launched to the market.”
BAWAT is having ‘active discussions’ with a number of port operators, including Singapore’s MPA, and ports in the UAE,
Denmark, Sweden, Norway and Finland. The first unit will be operational by the end of this year, said Mr Diederichsen.
A 200cu m capacity system would fit into a 30ft container, while a 40ft container would provide 300 to 400 cu m capacity, depending on configuration. Going smaller, 50cu m would fit into a high-cube 10ft box. If a much higher capacity is needed, it would be a case of doubling up, running two systems in parallel. The system is delivered fully self-contained, ready to plug and play.
“Singapore are looking at having this system as a type of contingency to serve vessels at anchor. If we look worldwide, there is a big demand for this sort of solution,” said Mr Diederichsen.
“Port operators want effective port operations. Neither the port nor the vessel owner wants to have cargo operations stopped abruptly or not completed due to a malfunction of the ballast water system on board. So having an opportunity to offer such a service – typically through a service provider, as with potable water or waste water services – would be very valuable.
“Vessel owners would have the comfort when approaching port that there is a back-up solution available should they get into a situation where they can’t discharge untreated ballast water. And service providers can look at treated ballast water as a commodity. With our system, it doesn’t matter which way the water goes. And our systems offer flexibility – they can be scaled up and down and offered to the world market.
“The beauty of the system is it is completely self-sufficient and independent. It can be taken to different types of vessels and berth lengths – mobility is the key to its success.” u
Piraeus-based engineering and manufacturing firm Maritech has signed a sales and distribution agreement with French water microbiology company aqua-tools to meet ‘significant interest’ in onboard ballast water testing from Greek ship owners. The agreement covers the training and supply of aqua-tools’ B-QUA test kit.
“Greek ship owners are looking at the use of indicative-based monitoring as a means of assessing the
efficiency of their ships’ ballast water treatment systems,” said Maritech Business Development Manager Dimitris Nikoleris.
“We have talked to a number of high-profile owners and many are concerned that they could face financial penalties if they are found to be inadvertently operating systems incompatible with the rules or if these systems are under performing. It is difficult to verify the treatment efficiency of these closed loop systems” u
Responding to the needs of ship owners and operators, Cargo Care Solutions has developed an integrated, total service programme for cargo pumps, providing costeffective peace of mind for vessel operators.
Engineers working for the company, which already services and repairs cargo and hatch equipment, devised the new service after recognising the need for more third-party support in the planned maintenance of cargo pumps.
The new service was officially launched during the recent Posidonia exhibition in Athens where experts from Cargo Care Solutions were available on the company’s trade stand to discuss clients’ requirements.
Peter Peltenburg, CEO, said: “As an independent and all round supplier for all types and brands of maritime cargo access equipment, we are ideally placed to extend our firstclass service to cargo and ballast pumps. In addition, our engineers have an extensive experience in cargo and ballast pump servicing and maintenance.
“Our complete maintenance service will provide peace of mind for ship operators by offering a cost-effective and highquality solution which enhances safety and ensures compliance with port state control requirements.”
The new service is based at the company’s headquarters in Rotterdam and can be delivered throughout the international shipping world. In addition to planned maintenance programmes for cargo and ballast pumps of all major brands, Cargo Care Solutions is able to provide drydock maintenance and ad-hoc or emergency servicing.
As part of its new service, Cargo Care Solutions is able to supply its customers with free remote assistancemeaning troubleshooting and advice is free of charge. Mr Peltenburg explained: “We can keep track of the status of your pumps by having all documentation readily available for our engineers on our servers. Depending on your needs we can make a custom-made package for condition-based maintenance.”
The new cargo and ballast service includes: Annual surveys: the best way to ensure your pumping system stays in optimal condition with lowest costs during lifetime. Can be combined with oil monitoring; Predocking inspection: prepare for your docking and ensure a clear scope of work with all parts available. Including pump evaluation test, oil sampling if required; Docking services: having a CCS engineer to assist during docking ensures major maintenance is done with an expert onsite; Troubleshooting: Cargo Care Solutions is available 24/7 to minimize your downtime; Training: both onsite and offsite.
Already several major vessel operators have expressed an interest in Cargo Care Solution’s new service.
Mr Peltenburg explained: “In providing this service we are able to demonstrate how our knowledge and experience can produce practical solutions for our customers. Fast and reliable service is the key for us to meet our client’s cargo equipment needs. Cargo Care Solutions puts continuous effort into exploring future ways of doing business.” u
The British Association of Ship Suppliers held its annual General Meeting and lunch on 12th June onboard HQS Wellington on the River Thames in London.
Among matters discussed was the possible return of duty free to the UK ship supply market when the country leaves the European Union next year. Chairman Bob Blake told members that the BASS Council had made a donation to the UK Travel Retail Forum which is looking at and trying to get duty free back into ship supply following Brexit.
Andrew Hunter, General Manager of C G Hibbert and the Council’s Duty Free Specialist, told the AGM: “It is there and it is important for us as an industry that we see a full and complete return.”
Membership was reported as being stable at 50 members, however the Association agreed it was always thinking of ways to attract new members. It was also discussed whether there was a need to change the format for the AGM and lunch and possibly hold it at a different venue, even elsewhere in the UK. This will be considered by the BASS Council.
As ISSA Executive Vice President and BASS’s ISSA Representative, John Davey gave an account of what has been happening within ISSA and spoke about the ISSA Convention to be held in Istanbul in November saying it was shaping up to be a great event.
He attended an Executive Board meeting earlier this year under the guidance of ISSA’s new President Saeed al Malik and he spoke about the many initiatives that are now in place and a detailed work-plan which includes a revamp of the ISSA Catalogue including a new food and beverage section.
Project Watchdog is also being launched and ISSA’s legal expert Bruce Hailey outlined what the credit report and debt recovery service provides and how it can benefit mkembers.
Mr Davey also reported that he and ISSA Secretary Spencer Eade had been working on a phone app and also an updated website and he told members about a possible training initiative, put forward to the ISSA Executive Board by the BASS Council. He also talked about ISSA’s e-commerce platform saying the ship supply sector needed to keep abreast on what was going on within the industry.
Mr Davey brought BASS members up to date on the work of OCEAN (European Ship Suppliers Organization) and reported on the OCEAN Board meeting and OCEAN Customs and Taxations Working Group hosted by the Bulgarian Ship Suppliers Association (BSSA) in Sofia in April.
Due to retire at the end of this year, John Davey and Bruce Hailey both put themselves forward to be elected for another term.
C G Hibbert donated beers to the luncheon that followed and there was an intriguing performance from a close-up magician. u
Istanbul is gearing up to host ISSA’s 63rd Convention and Trade Exhibition, and it is set to be a fantastic event so make sure you save the date!
The event, to be held on 23rd and 24th November, 2018 at the Wyndham Grand Levent Hotel, is being organised by TURSSA, the Turkish Ship Suppliers Association, in conjunction with ISSA.
It is a must-attend event for all maritime industry professionals, where they can take advantage of the excellent networking opportunities and plenary sessions and listen to a series of conference speakers. This year’s theme is ‘Global Ship Supply: Are You Ready for Tomorrow’s Maritime World?’
Turkey is one of the biggest supply hubs in the Mediterannean and Black Sea with 40,000 deliveries each year and the first day of the programme will be staged by TURSSA with the second by ISSA.
The event will be preceded on 22nd November by the ISSA General Assembly meeting and will be rounded off on the evening of the 24th with a Gala Dinner.
Trade stands are still available as are sponsorship opportunities. Sponsors so far include (Gold) AVS, Middle East Fuji and Simsekler; (Silver) United Arab Emirates National Ship Suppliers Association and Singapore Association of Shipsuppliers & Services; (Bronze) Australian Shipsuppliers & Services Association; and others include Atlas Ship Supply and Black Sea Marine.
For more information about reserving delegate places, trade stands, or sponsorship opportunities, please email turssa@turssa.org or visit the Convention website at www.issa2018istanbul.com u
Digital navigation service suppliers are looking to help users navigate the regulatory as well as the geographical world – but first they must overcome a reluctance by many ship owners to invest. Felicity Landon reports
Sharing data and optimising vessel performance is a logical way to create a ‘roadmap which leads to smarter shipping’, says Penny Haire, Managing Director of Tidetech Commercial Marine, the Tasmania-based provider of metocean data to the maritime industry.
However, she understands why ship owners are often reluctant to invest in technology.
“In the past decade, ship owners have battled a combination of low earnings, unpredictable costs and an increasing burden of regulation, all of which have made them wary of investing in technology without rapid and measurable payback,” she said.
“However, with the costs of compliance rising and the price of bunker fuel set to rise dramatically when the 2020 global sulphur cap takes effect, they are looking for tools that can make a positive contribution to operating margins.”
The tide and current data that Tidetech delivers is high enough resolution to enable operators to optimise the coastal and regional legs of a voyage and gain more benefit than in ocean waters, where conditions are more predictable, says Ms Haire.
“Navigation using weather routeing to help operators maintain more consistent vessel speed and schedule-keeping has more than (just) the potential to save money and reduce fuel consumption and therefore SOx, PM and Carbon emissions – it is proven to do so,” she said.
“For owners and operators, better data and information can feed directly into enhanced fleet and voyage management, whether this is driven by compliance or commercial reasons.
Leveraging the cloud to share that data and optimise vessel performance is a logical way to create the roadmap which leads to smarter shipping.”
Tidetech, which offers a wide range of wind, weather, tidal, wave, current, ice and sea temperature data for shipowners and third party software vendors, recently announced the launch of its new ‘Data Cube’, which enables users to query weather data in three dimensions: longitude, latitude and time. The Data Cube stores information in a single, consistent format, in constituent parts at the highest resolution, and data can be reorganised, reformatted and manipulated to individual customer requirements, says Tidetech.
“Previously it could take time to access historical data or make predictions about future sailing conditions because of how data was stored,” said Ms Haire. “Using a relational database makes the data more available and accessible because the cube is itself made up of data cubes, which can comprise some or all of the weather elements, that can be interrogated either as historical, current or forecast data.” u
Ship owners may want to keep their wallets firmly shut, but there is a warning from GNS that some shipping companies are actually wasting money on charts they don’t need.
Captain Mike Bailey, GNS Head of Navigation Products, said ship owners are spending millions of dollars on navigational supplies they may not use and crews are wasting hundreds of hours needlessly correcting paper navigation charts and publications because owners have not fully invested in the potential of digital navigation.
In many cases, purchasing of navigational products is habitual and based on what has always been bought in the past, rather than what is actually needed – leading to inefficiencies equivalent to many thousands of wasted dollars every year, said GNS.
In one example, a large Singapore-based shipping company was found to have overspent by more than $9,000 a year on navigational supplies for just one vessel.
“Our research and analysis has shown that some shipping companies are routinely spending more money per vessel per year
than they need to on navigation charts and publications that they don’t need and many do not use,” said Paul
Stanley, Chief Executive of GNS.
We attribute this to two factors. First, a persistent ‘just in case’ mindset, where vessels carry large numbers of digital charts and publications on the off-chance they will need them, and second, the need to download ENCs in order to plan routes that the vessel never actually ends up sailing.”
The GNS Pay as You Sail (PAYS) solution is a much more cost-effective means of navigation even though the vessel will be charged for all charts it sails through at all scale bands, he says.
Annual fees for PAYS are calculated using GNS’s unique pricing algorithms that use vessel tracking data and other factors to generate accurate prices tailored to each vessel in a fleet. “The result is a very simple and cost-effective way to buy, manage and use ENCs. The system even lets users tailor the updates they receive to specific routes or trading areas to keep download costs to a minimum.” u
The tug and OSV market is doing its bit to become smarter and some larger operators are steadily moving away from more traditional navigation towards a more digital approach, said digital navigation specialist ChartCo.
However, weakening oil prices and rig utilisation have put pressure on operators to make some difficult decisions, cutting operating expenses and capital expenditure to turn a profit, said ChartCo’s Head of Sales for EMEA Robert Corden.
This has undoubtedly had an impact on them investing in new technology.
“Much of our customer base derives from big ship and tanker operators who currently have a greater requirement for our services both on a statutory level and by choice, so most of our product development is naturally driven by these requirements,” said Mr Corden.
“For now, in the tug and OSV market, we see a continuation of success with larger offshore operators, where the main goal is to standardise supply across the fleet, obtain global pricing and provide an integrated and harmonised solution for all navigational requirements.
“Having said that, an oil price rise should allow offshore operators to return to profit and therefore change their focus from cost saving to efficiency of operations. When this happens, we will certainly see further growth in this sector.”
The electronic navigation requirements of offshore and towing vessels differ greatly from merchant ships as they typically don not travel as far and have easier access to more established methods of updating their charts as they return to port more frequently, said ChartCo.
However, many larger operators with big fleets are choosing integrated navigation software platforms such as ChartCo’s, PassageManager system, for more efficiency and consolidation, says the company. “Systems like this manage a vast data library of both paper and electronic products, allow quick passage planning and help operate bridges that use ECDIS as well as more traditional methods of navigational data.”
Among the users in this sector of ChartCo’s systems are Vroon Offshore Services, ALP, Swire Pacific Offshore, Siem Offshore, Tschudi, Hartmann Offshore and V Ships Offshore. u
Hailed as a landmark decision for both the environment and human health, the IMO’s global sulphur cap for ships is set to come into force on 1st January 2020, but there is still great uncertainty about the implementation.
When it comes in, all vessels trading outside of sulphur Emission Control Areas (ECAs) will be required to use fuel with a sulphur content of no more than 0.5%, instead of the currently permitted maximum of 3.5%.
There will be various options to ensure compliance including switching to low sulphur fuels, converting to LNG and the fitting of exhaust gas cleaning systems, known as scrubbers.
The topic of the sulphur cap was brought up at the Annual General Meeting of the International Chamber of Shipping (ICS) in May when its Chairman, Esben Poulsson, generally welcomed the cap but warned there could be chaos if compliant fuels are not widely available.
He said: “The shipping industry fully supports the IMO global sulphur cap and the positive environmental benefits it will bring, and is ready to accept the significant increases in fuel costs that will result. But unless a number of serious issues are satisfactorily addressed by governments within the next few months, the smooth flow of maritime trade could be dangerously impeded. It is still far from certain that sufficient quantities of compliant fuels will be available in every port worldwide by 1st January 2020.
And in the absence of global standards for many of the new blended fuels that oil refiners have promised, there are some potentially serious safety issues due to the use of incompatible bunkers.”
He said governments, oil refiners and charterers of ships responsible for meeting the cost of bunkers all need to understand that ships will need to start purchasing compliant fuels several months in advance of the implementation date.
“Unless everyone gets to grip with this quickly we could be faced with an unholy mess with ships and cargo being stuck in port,” he warned.
There is the option to install scrubbers so Higher Sulphur Heavy Fuel Oil (HSHFO) can still be used but this could be too expensive for some owners.
“With newbuildings there are more options as you can obviously get scrubbers, which can be somehow justified – not retrofitted as that is too expensive,” said Basil Mavroleon, Managing Director of Greek ship broker WeberSeas (Hellas).
“There’s never going to be a lot of ships with scrubbers. Many Greeks are saying ‘I’m just going to wait it out and I’m going to get the low sulphur fuel. You are not going to convert to LNG. It’s hugely expensive to make the conversion.”
He added: “I think the industry will make the leap and I think the scrubber thing is important in the newbuilding arena but it won’t get support from anywhere else.” u
The need to enhance safety and save fuel combined with documenting relevant historical data of a ship’s voyage are on-going requirements in the modern marine industry and business.
Improved and new methods and instruments are constantly trying to address these ever increasing demands. The so-called Electronic Inclinometer can be used as a tool to pursue these goals.
The principle of an Inclinometer is basically to measure angles of slope (or tilt), elevation or depression of the object with respect to the gravity. Different technologies can be used within an inclinometer and these include electronic, gas, and pendulum designs.
The Electronic Inclinometer is minimum capable of reading angles to very precise degrees. These systems use as one element an internal gyroscope to measure the direction of gravity’s pull. The gyroscope stays in one position, no matter the orientation. Further an accelerometer can be incorporated to measure the acceleration parameters in addition to the rotations. The results of these measurements are typically displayed on an electronic readout.
The Maritime Safety Committee (MSC) of the International Maritime Organization (IMO) adopted a Performance Standard for Electronic Inclinometers in its session on 14th June, 2013 – Resolution MSC.363(92). It is recommended that Electronic Inclinometers installed on or after 1st July, 2015 must conform to this performance standard.
An international ISO standard provides the testing methods for electronic inclinometers to confirm that a given electronic inclinometer meets the performance standard.
In addition, the new and revised performance standard for the Voyage Data Recorders (VDR) in effect from 1st July, 2014 stipulates that data from the type approved Electronic Inclinometer if installed onboard a vessel must be duly recorded.
Danish company Daniamant Electronics launched its own Electronic Inclinometer - DanEI-300. It conforms fully to the new performance standard and is being type approved by BSH - Bundesamt für Seeschifffahrt und Hydrographie (Federal Maritime and Hydrographic Agency) in Germany.
Daniamant Electronics company has a long history in the marine industry developing and manufacturing advanced and type approved products and systems such as lights for life vests, buoys and rafts in addition to BNWAS (Bridge Navigational Watch Alarm System) and salinometers for fresh water generators, boilers and BWTS (Ballast Water Treatment Systems).
The new DanEI-300 (pictured) consists of a sensor unit including very sophisticated ‘scale-down’ gyroscopes and accelerometers – so-called
MEMS devices – which, combined with complex and advanced mathematical algorithms being performed in the electronic computer and shown on a display unit, can measure the 6 D-o-F (6 Degrees of Freedom) i.e. rotation parameters heel, pitch and rate of turn and acceleration parameters sway, surge and yaw. The sensor and its integrated and self-learning software provide the flexibility that the sensor can be placed basically at any practical and convenient location on or near the bridge / wheelhouse.
According to Anders Rasmussen, Sales Director at Daniamant, there is very good interest for the DanEI-300 to be used both for general safety; possible optimisation of the ship’s trim to save fuel and gathering of additional information and documentation during and after the voyage.
He adds that the aim of the DanEI-300 was to bring to market a type approved instrument with following important characteristics and features: Easy installation on the bridge / wheelhouse with no requirement for the sensor to be aligned exactly at the centreline or amidships; Logical MMI (Man Machine Interface) with clear symbols and icons on the display and ability to set ‘Heel Angle Warning’ alert individual for port and starboard; Ability to show a trend-plot of the heel angle of the last three minutes and 30 minutes of the roll amplitude; Easy communication interface either serial or via Ethernet to VDR (Voyage Data Recorder) and BAMS (Bridge Alarm Management System) and/or into INS (Integrated Navigation System); No requirement for any annual inspection or calibration; A very cost-effective solution to be used as a stand-alone instrument; Sensor as stand-alone unit to be incorporated into bridge consoles and ECDIS if user wants to show data on own displays.
“We work with the owners, superintendents and technical management of the many different vessel types e.g. workboats (tug, anchor handlers, crew, OSV), cargo, dry bulk, passenger and cruise ships to utilise the potential in the DanEI-300 to enhance safety, document data from the voyage and potentially reduce fuel consumption. As we get more experience with actual installations and daily use of the DanEI-300 the next step will be to transmit data on shore to the ship owners’ offices for analysis of e.g. trim and roll versus fuel consumption“, concluded Mr Rasmussen. u
As a consequence of the decision by President Trump to withdraw the US from the JCPOA for Iran, US sanctions against Iran and companies connected to Iran will be re-imposed, following a wind-down period ending not later than 4th November 2018. Anyone with business relations with Iran would be well advised to consider the impact of the re-imposition of sanctions, and to consider
By ISSA’s legal expert Bruce Hailey
whether business ties should be cut prior to this date. Collecting monies from Iranian shipping companies (or their overseas affiliates) may become difficult after this date. The EU continues to support the JCPOA and will not be reimposing sanctions, but businesses with ties to the US may find that continuing trade with Iran puts them in breach of the stringent US sanctions regime. u
In a previous edition of The Ship Supplier a warning was issued about a New York-based debt collection company named Control Risk Management Inc. run by a gentleman known as Robert Kelly. Since that warning was issued several further cases have come to light where Control Risk Management has made collections from the debtors, but failed to pay the monies
It is now commonplace for ISSA members to handle “third party” goods for their customers, typically undertaking storage and delivery to a vessel. ISSA members are reminded that when undertaking such tasks they effectively act as a logistics provider, and take on different risks to those involved with the sale and delivery of their own goods. Your Insurance provisions should be reviewed to ensure that insurance is in place to cover the risks that
The catering model is increasing in popularity, and a number of ISSA members offer a catering service to their clients.
Catering companies are themselves an important customer base for ISSA members, and the network of suppliers established by the caterers are typically dominated by ISSA members. However, experience seems to show that for many the catering model has proved difficult to run profitably, with numerous insolvencies occurring. The most recent being Seaserv Gmbh of Germany. There are of course some long-standing participants in the market, who have had success in establishing a sustainable business.
When things do go wrong then the physical supplier to the vessel who is unpaid by the bankrupt caterer will naturally look for
collected over to their clients. Monies are still outstanding to several of their clients, and complaints to Control Risk Management have gone unanswered.
Control Risk Management is active in marketing its services to ISSA members. It appears that ISSA members deal with Control Risk Management at their considerable peril. u
arise (for example loss or damage to third party goods whilst in the ISSA members possession), because policies in place for typical ship supplier activity may not include cover for third party goods. Liabilities could be significant if a critical part cannot be delivered in time because it had been lost or damaged, or because necessary clearances cannot be obtained. u
an alternative route to payment. Typically, this will be the owner of the vessel who received the goods. Often the owner has already paid the bankrupt caterer, and is reluctant to pay again to the physical supplier. Whether or not they can be compelled to do so will vary from country to country, but suppliers to caterers should certainly not rely upon this as a route to payment.
Care must be taken in the decision to supply a caterer. The risks of doing so are different to the risks of dealing with an owner/manager direct. The quality of the underlying owner can be a reasonable guide to the likely performance of the caterer, in particular where the caterer has a relatively small number of vessels within its operation. u
Paints and coatings company Jotun has launched an innovative solution that is said to bring simplicity, predictability and optimal quality to the process of marine onboard maintenance.
SeaStock Management Solution will see Jotun effectively assuming full management of its customers’ onboard maintenance. This encompasses condition surveys, full ordering and logistics, direct communication with vessels, business and technical reviews, optimising products for individual requirements, and crew education. It is the first offer of its kind on the market.
Commenting on the service launch, Habibe Escobar Meléndez, DryDock & SeaStock Concept Manager at Jotun explained: “Onboard maintenance is an essential but specialised area that requires time, understanding and commitment. Often conducted in difficult conditions, by crew that may lack sufficient training, there is a risk of poor quality application – leading to premature corrosion – and excessive paint consumption. Then, of course, there is the commitment from management required to order, monitor and optimise the process to achieve the best efficiency, costs and results.
“With SeaStock Management Solution, Jotun effectively takes onboard all this responsibility and professionalises the process to achieve optimal results. This reduces hassle, frees up time and resources and, importantly, improves the condition of the assets. The solution gives complete predictability in terms of costs and allows our customers to focus on what they do best, running maritime businesses, while we focus on what we do best –protecting people and property with world leading solutions. It is a simple way to tackle what can be a complex and costly process.”
The revolutionary solution is tailored to meet individual customer needs. For a set lump sum, Jotun takes full control of a company’s ‘paint locker’ and ensures a mix of the best products, while educating relevant crew members, to achieve the best quality finishes, prolong maintenance intervals and achieve significant cost savings.
Speaking about the new arrangement, a major shipmanagement company in Singapore, which has been piloting the concept, said: “We value Jotun’s effort to further strengthen their partnership with us through their SeaStock Management Solution. This program is helping us optimise the onboard maintenance of our fleet, have better budget control and improve the condition of our vessels.
“We have reduced consumption by 15% compared to 2016, minimised the number of deliveries and simplified the product assortment resulting in smoother handling from the office and by the crew. Thanks to the quarterly business and technical reviews provided, and the close follow up from Jotun, we are always informed and in control”.
A spokesperson from DS Tankers in Germany added: “We have tried SeaStock Management Solution with some of our tanker vessels. So far, paint consumption has been reduced by 17% compared to the previous year and by 11% compared to vessels on a conventional SeaStock contract. We have more control on our yearly spend and we get much closer follow up. We have therefore decided to continue and add more vessels to the program.”
Jotun, which provides coatings for some 25% of the world fleet, also assigns a professional in-house team to manage each customer and monitor coating condition and quality.
“This gives peace of mind in the harshest of environments, both operationally and commercially,” said Mr Meléndez. “It provides a full picture of costs and ensures predictability, while slashing management and administration duties. There is a clear market demand for this kind of innovative solution, and we’re proud to be the first paint company to provide it.” u
Bernhard Schulte Shipmanagement and Columbia Shipmanagement have combined their global buying power to create an independent procurement company to deliver greater value in ship supply costs for ship owners.
The move guarantees principals lower costs in the procurement of a wide range of consumables while guaranteeing product quality and service.
GP General Procurement Company Limited (GenPro) will negotiate framework supply agreements with international ship suppliers on behalf of its members’ clients with a view to securing the lowest prices achievable on all consumables. This new agreement allows a pool of 800 vessels managed by BSM and Columbia the access to a wider, superior range of consumables at the best prices available globally.
He says it will capitalise on the best practices and strengths of its members by driving efficiencies into the whole procurement process to help reduce clients’ vessel OpEx costs and return real value to the client by way of volumerelated discounts in a fully transparent and auditable way.
Ian Beveridge, CEO of Bernhard Schulte Shipmanagement said: “We are pleased to be working with Columbia Shipmanagement to set up GenPro, a new company designed to deliver maximum value to our ship owner clients in a new and innovative way.
“We believe GenPro will change the way global procurement is delivered to ship owners on an international scale and will in time become a compelling new force in the industry. Both companies are leveraging their industry links and relationships to owners and
we believe this is something owners will welcome.”
Mark O’Neil, CEO and President of Columbia Shipmanagement stated: “GenPro represents optimisation of the procurement process in its purest form – a veritable ‘win-win’ for owners and suppliers alike.”
The scope and reach of the procurement effort will not be limited to maritime products and consumables but will include all products and consumables associated with the operation of the maritime business, onshore and offshore.
GenPro will derive its income from a brokerage fee agreed with, and paid to it, by the ship supplier. It will also negotiate and agree volume-related discounts with the suppliers which shall be returned to GenPro members’ clients in full.
GenPro has pledged to build the most relevant, competitive, comprehensive quality repository of supply contracts within the maritime industry while ensuring honest and transparent dealing at all times, and fair competition amongst its suppliers and service partners. A commitment to strengthening and sustaining partnerships for mutual benefit is at the core of its operation, as is the concept of engendering and upholding a relationship of complete trust between all partners. u
Southampton-based Ocean Safety, specialists in the worldwide supply of marine safety equipment, has appointed Alistair Hackett as Managing Director.
Mr Hackett has been with Ocean Safety, part of the 3Si Group, for 12 years and was formerly General Manager. He has been instrumental in the expansion of the business and the development of new products as well as managing some of the company’s key leisure business accounts including the Volvo Ocean Race along with safety management for other global and grand prix projects.
3Si Group’s CEO Andrew Richards comments: “We are delighted that Alistair is stepping up to this post. He has a wealth of expertise in the products, the business and our customer base both current and in development.” u
Pairing Wilhelmsen’s extensive ships agency expertise and robust safety standards, with Airbus’ expertise in aeronautical vertical lift solutions, the Agency by Air project brings shore-to-ship drone delivery to one of the busiest ports in the world, Singapore.
Launching at Singapore port’s Marina South Pier in quarter three 2018, Wilhelmsen Ships Service and Airbus will be piloting the delivery of spare parts, documents, water test kits and 3D printed consumables via Airbus’ Skyways unmanned air system (UAS) to vessels at anchorage.
With the signing of an MOU at maritime trade show Posidonia, the Maritime UAS project agreement covers a joint ambition to establish a framework for cooperation between the Parties, with the aim of investigating the potential deployment and commercialisation of UAS for maritime deliveries use cases.
Marking the very first time, the viability of autonomous drone delivery to vessels has been put to the test in hectic, realworld port conditions, Marius Johansen, VP Commercial, Ships Agency at Wilhelmsen Ships Service is confident with Airbus now onboard, his agency team’s long-term drone delivery aspirations will be fulfilled.
“We are absolutely thrilled to be working with a forward thinking, industry leader like Airbus. When we announced last year that we were pursuing drone delivery, we were greeted with a fair amount of scepticism, but our collaboration with Airbus, shows we really do mean business”.
Confident drones will become a game changer in the agency and logistics business in the not too distant future, he added: “As an outward looking company, eager to utilise technology to help improve our customers’ experiences, drone delivery is a perfect fit for our agency business. Part of our standard husbandry
services, we organise the delivery of essential spares, medical supplies and cash to master via launch boat day in and day out all over the world. However, delivery by drone is much more cost effective, quicker, and frankly safer for all involved. Costing on average ninety per cent less than launch boats, they importantly remove the risks inherently involved with making launch deliveries and also have negligible environmental impact”.
With Wilhelmsen Ships Service tasked with setting up the necessary maritime and port operations, gaining the relevant approvals from port authorities and Athens, securing maritime customers, Airbus will take care of all the corresponding aviation approvals, and the running and maintenance of the UAS and its control systems.
Commenting on their partnership, Airbus’ Skyways lead Leo Jeoh said: “This collaboration with Wilhelmsen, the first of its kind in the region, gives us a unique test bed where we can trial, refine and shape the future of shore-to-ship drone technologies. This also serves as an exciting opportunity to bring together the strong domain expertise of both Airbus and Wilhelmsen, to pioneer the future of UAS in the maritime industry.”
Culminating over a year of planning and close collaboration between Wilhelmsen Ships Service and Airbus, involving the Singapore Maritime Port Authority and the Civil Aviation Authority of Singapore, the partnership will first see an initial two-week pilot trial with deliveries to ships anchored in Singapore’s eastern anchorage.
A command centre and a delivery centre will be set up at the pier to facilitate the deliveries, with an initial delivery range of up to 3km from the shoreline. A second delivery station will be positioned at an open space in Marina South to extend delivery coverage to more anchorage vessels. u
Safety solutions provider Survitec has launched a new concept aimed at improving overall safety levels through offering the products and services in a holistic and consistent manner, available through one supplier.
SOLAS 360 includes lifeboats, liferafts, personal lifesaving appliances, first aid and medical equipment, emergency communication devices, as well as fire detection, protection and extinction systems.
The company says vessel compliance guarantee is achieved through due data monitoring, dedicated technical support, one point of contact and a customer portal, giving operators access to their compliance status and safety certificates. It also offers detailed servicing costs and a fixed product cost schedule with dedicated global support for all requests, logistics and invoice details means less coordination, administration and less risk of error.
Survitec has a long history across the marine, offshore, defence and aviation sectors and SOLAS 360 represents the first time it has offered products from across its entire range together in one complete package agreement.
Survitec presented the new offering at its stand at Seawork International in Southampton recently, a year after winning the Spirit of Innovation award at last year’s event.
It had a team on hand to explain the benefits of the lifeboat inspection programme it enhanced at the end of 2017. Adding extra engineers at various sites worldwide improved the scheme’s local reach, offering customers added convenience and meaning Survitec has qualified technicians on the ground in five continents.
In addition to exhibiting at the event, Survitec also supported Seawork through a number of patronage and sponsorship initiatives and ensured the safety of Seawork’s Harbour Managers
by providing them with Crewfit 150N HF lifejackets.
Mark Hart, Survitec Sales Director, said: “After some time in the making, we look forward to talking to potential customers through the benefits of our all-encompassing SOLAS 360 proposition and how it can benefit them in terms of time and cost savings, making for far more efficient processes from start to finish.”
The company also recently exhibited at Posidonia in Greece, having attended previously as a delegate. u
By Roger Symes, Director, Marine Debt Management
This article appears shortly before the 10th anniversary of the global economic downturn of 2008. For many the focal point was September 15th that year, when the 150-yearold merchant bank, Lehman Brothers, filed for bankruptcy. Many more bankruptcies have followed and the effects of the “crash” are still being felt around the world. The shipping industry has had its fair share of bankruptcies and many of these have left ship suppliers unpaid.
That is not always the case. Some large ship owners have used bankruptcy laws to their advantage, forcing lenders to write-off and reschedule loans whilst continuing to pay suppliers in full. However, more often than not, the reverse is true. Bankruptcy results in a partial loss for lenders but a total loss for suppliers. This is because secured loans from lenders take priority over unsecured debts due to suppliers.
Against this background, it is essential that ship suppliers properly assess risk before supply and follow-up closely after presentation of invoices to ensure their timely payment.
It is very rare for a company to be in good health one day and bankrupt the next. There is almost always a period of months when a company in severe financial difficulty continues to trade before bankruptcy. Managers may have the honest belief that the company can recover. Alternatively, they may have no intention of paying suppliers and already be setting-up their next business. In either case, it is suppliers who will lose out when bankruptcy occurs. Therefore, it makes sense to be alert to potential bankruptcies.
In formal bankruptcy proceedings, creditors are paid according to their ranking in a pre-determined order of priorities. Creditors in each rank are treated equally. Ship suppliers often
tell us, “But we really need the money!” They suggest that they should receive priority over other, perhaps larger, creditors. Such special pleading is pointless. Following a bankruptcy, the hardship of an individual creditor counts for nothing. If you, “really need the money”, it is your responsibility to exercise due care and attention when granting credit.
Over the past year several ISSA members have contacted us regarding monies owed to them by SeaServ GmbH of Hamburg. That company was established in 2015 and quickly grew into a substantial business. It secured contracts with several large shipping companies to supply their vessels overseas. In all cases referred to us, the company then contracted local ship suppliers to make the necessary deliveries for its account. In effect, SeaServ GmbH purchased from local ship suppliers and re-sold the goods to its customers. This is the same model as used by many marine contract catering and catering management companies.
All such business relies upon good cash flow management. It is essential that payments be collected from customers before suppliers are due to be paid. That didn’t happen! As a result, SeaServ GmbH became increasingly dependent upon the goodwill of its suppliers in extending payment terms. Remarkably, some suppliers continued supplying the company for one year or more without payment. This enabled the company to continue trading long after it should have closed down.
SeaServ GmbH commenced bankruptcy proceedings in March this year. Creditors must submit their claims to the Court appointed liquidator before 25th September 2018. It is likely to be several years before the bankruptcy is finalised. The case provides a good opportunity to learn from the mistakes of others. u
Sega is preparing to join the market for retro games consoles with a mini version of its most successful console to mark the 30th anniversary of the Sega Mega Drive.
Details about the Sega Genesis Mini (aka Mega Drive Mini) are limited at the moment and it is not yet known which games will feature or whether it will feature a cartridge slot. The console will be on sale later this year.
Sega Genesis Mini
Price tba
www.sega.com
GPS rangefinders are par for the course these days in helping with shot distances and club selection but often the golfer has to keep pulling out their phone or handheld device.
With the GoGolf GPS, there are just two buttons to press – one to announce the distance to the centre of the green and another which announces the distance the ball travelled on the last shot.
The device, which is so small it can clip onto your shirt collar or cap, pairs over Bluetooth with a companion app which performs the actual distance calculations. It also supports up to 35 different languages.
GoGolf GPS
$89.99
www.gogolfgps.com
Sheffield’s finest indie rock band are back with their eagerly anticipated new album which fans have been waiting five long years for.
Released ahead of a tour and a string of festival dates, it is the sixth studio album from the group who have given us such past hits as I Bet You Look Good on the Dancefloor, When the Sun Goes Down and Brianstorm. Many of the songs were said to have been written by Frontman Alex Turner at a Steinway Vertegrand piano gifted to him as a birthday present, and it is described as a bold and brilliant album.
Tranquility Base Hotel & Casino Domino
This, the English singer/songwriter’s fourth studio album, delves deeply into her person life with songs about the breakdown of her marriage, her children and substance abuse and was recorded over the past three years.
Grime artist Giggs features on the lead single, Trigger Bang, which focuses on the dark British drugs culture, while Three is the perfect antedote to this - a beautifully written piano-laden ballad written through the eyes of her young children. Allen will be promoting the album with an international tour.
No Shame Parlophone
The Museum of Modern Art in New York is presenting Being: New Photography 2018, the latest presentation in MoMA’s celebrated New Photography exhibition series. Since its inception in 1985, New Photography has introduced more than 100 artists from around the globe and, every two years, presents urgent and compelling ideas in recent photography and photo-based art. This year’s edition, Being, asks how photography can capture what it means to be human.
The exhibition includes over 80 new and recent works by 17 artists from 10 countries including Ethiopian-born Aida Muluneh, who constructs characters through colourful make-up and costume and by doubling figures or limbs.
MoMA, 11 W 53rd St, New York, NY 10019, US www.moma.org
This stylish Athens restaurant, set in a beautiful neoclassical villa and courtyard, offers cuisine combining modern cooking techniques with traditional Greek food. There is an à la carte menu which features such dishes as hand dived scallops, pork cheeks and roasted lamb and two tasting menus – a five-course and seven-course - offering such temptations as red pumpkin mousse, couscous ‘Bordeto’ with scorpion fish, mussels and squid, and, for dessert, ‘apples with crisps’ – apples with walnuts and Kirsch ice-cream. There is also an extensive wine list containing wines from around Greece and the rest of the world Aleria, Megalou Alexandrou 57, Metaxourgio - Athens, 104 35 aleria.gr
The world’s sea levels are rising at an alarming rate, too quickly to be caused by glacier melt. A risk so big it sends Kurt Austin, Zoe Zavala and the NUMA teams rocketing around the world in search for answers.
Their hunt takes them from the shark-filled waters of Asia to the high-tech streets of Tokyo to a forbidden secret island, but it’s in the East China Sea that a mysterious underwater mining operation is discovered.
Kurt uncovers a plot more dangerous than they could have imagined – a plan to upset the Pacific balance of power, threatening the lives of millions. It falls to the NUMA team to risk everything to stop it and save the world from the coming catastrophe.
The Rising Sea
By Clive Cussler and Graham Brown
£18.99
Royal Octavo
