Friday, June 1, 2012

World Ocean Forum 2012 next week!

World Ocean Forum 2012 next week!



World Ocean Forum 2012 is coming next Monday.
The 6th World Ocean Forum sill bring together policy-makers, private bodies and stakeholders to launch a special session and an exhibition to examine the future of rising marine bio-industry, 'the 1st Asia Marine Journalist Forum' and 'Korea-China Marine Econo-mist Round Table' to open up new opportunities and drive innovation on 'Asia Initiative' in global marine industry this year. 
WOF welcome you to join leading outcome-driven marine dialogue in the beautiful city in Busan.




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Chinese cut price to survive



Chinese shipyards are offering to sell vessels at discounts of up to 20 percent as builders look to protect market share from higher quality Asian rivals and stay afloat amid a wave of consolidation, industry sources said, Reuters report.

Rock bottom freight rates, slowing economic growth and an oversupply of ships have forced maritime firms to cancel or delay hundreds of new orders, leaving yards especially in China with unwanted vessels for sale.

As many as half of China's 1,600 shipbuilding companies are expected to go bankrupt or be acquired by larger rivals in the next two to three years and pressure is growing to move inventory, according to senior Chinese industry executives.

"We do routinely see a 5-10 percent discount for Chinese ships. So I'm not surprised if that gap widened to 20 percent," said Alex Adamou, analyst at London-based broker firm Seasure Shipping.

"The fact is that Japanese and South Korean yards are longer established and intend to have better technology, and therefore able to build higher quality vessels."

South Korea surpassed China last year as the industry's most sought after shipbuilder, as owners preferred more advanced and fuel-efficient vessels to the "cookie-cutter" dry bulk carriers and tankers that Chinese builders are known for.

China's Jinhai Heavy Industry resold a 79,000 deadweight-tonne panamax ship at around $23.5 million in the last week, brokers said, more than 20 percent lower than the $30-31 million Japanese shipyards are offering for similar vessels, and less than $26 million from South Korean builders.

"In general, the older designs of Chinese-built vessels use more steel and are deeper than Japanese vessels, leading to higher fuel consumption," said Frode Morkedal, analyst with broker firm RS Platou Markets.

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130,000-gt Carnival Breeze delivered


130,000-gt Carnival Breeze delivered

MIAMI, May 31, 2012 - At a traditional maritime handover ceremony held earlier Thursday at the Fincantieri shipyard in Monfalcone, Italy, Carnival Cruise Lines took delivery of the new 130,000-ton Carnival Breeze, the 24th vessel in the line's fleet.

Carnival Breeze will depart on its inaugural cruise from Venice this Sunday, June 3, operating a special 12-day Mediterranean cruise that ends in Barcelona June 15. Following a summer schedule of 12-day Mediterranean cruises from Barcelona that runs through October 25, Carnival Breeze will reposition to Miami for year-round six- and eight-day Caribbean cruises beginning November 24, becoming Carnival Cruise Lines' largest South Florida-based ship.

"Carnival Breeze represents the continued evolution of our product, offering a huge array of branded experiences for our guests and inviting public spaces each with its own personality and character, all enhanced by the spirited fun that makes a Carnival cruise so memorable," said Gerry Cahill, Carnival president and CEO.

Carnival Breeze is the line's first ship to feature the Thrill Theater, an immersive multi-dimensional special effects experience that makes viewers feel as if they're part of the movie.

Other highlights sure to provide fun for the whole family include WaterWorks offering splash-tastic water slides and a 300-gallon drenching bucket, and SportSquare, an expansive recreation area with a suspended ropes course, a miniature golf course, an outdoor fitness area and more.

New dining options on Carnival Breeze include Bonsai Sushi, the line's first full-service sushi restaurant, a free open-air barbecue venue called Fat Jimmy's C-Side BBQ, and The Comfort Kitchen, a casual poolside spot for American-style comfort food. Other choices range from Guy's Burger Joint, developed in tandem with Food Network personality Guy Fieri, to the Mexican-themed BlueIguana Cantina and Cucina del Capitano, a family-style Italian restaurant that brings the heritage of Carnival's captains to the table.

Carnival Breeze is also the first ship in the fleet to feature all of the entertainment elements of the line's groundbreaking "Fun Ship 2.0" enhancement initiative, including Hasbro, The Game Show, with larger than life adaptations of the brand's iconic games, and Playlist Productions, which combine captivating live performances with high-tech LED staging and special effects to set a new standard in seagoing entertainment.

With a nod to its upcoming Caribbean itineraries, the tropics-inspired Carnival Breeze also features vibrant interiors and inviting public spaces, from the poolside RedFrog Rum Bar and BlueIguana Tequila Bar to the sun-splashed Lido Marketplace restaurant and a palm tree-lined indoor/outdoor cafe and live entertainment venue called Ocean Plaza. Even the staterooms incorporate a palette of pastel hues and a striking new design inspired by the Caribbean's cool island breezes and warm sunsets.

Carnival Breeze joins Carnival Cruise Lines' 23 other ships which operate three- to 18-day voyages to The Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, Bermuda, South America, Tahiti, the Fiji Islands, New Zealand, Norway, the Baltic and the British Isles.


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USC approves $31bn backlog



Russia’s United Shipbuilding Corporation has approved a backlog of orders worth 1 trillion rubles (more than $31 billion), with 200 billion rubles ($6.2 billion) to be spent on civil-purpose ships, the corporation's representative Dmitry Sapov told the World Marine Technology Conference in Saint Petersburg which is attended by experts from 20 countries.

Mr. Sapov added that the corporation also deals with the construction of drilling platforms, one of them called ‘Prirazlomnaya’ scheduled to start drilling for oil in early 2013.

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"Shipping deteriorating", Moody's



Conditions in the shipping industry may deteriorate as Europe’s economy slows and amid tensions in the Persian Gulf, Moody’s Investors Service said.

“Uncertainty about the depth and duration of the recession in the euro area and resurfacing of geopolitical tensions in the Persian Gulf pose further downside risks to the industry,” Marco Vetulli, senior credit officer says.

The industry’s outlook is negative for the next 12 to 18 months, according to Vetulli.

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Green Initiatives for marine - MAN



With the recent trend of increased fuel prices and the introduction of strict environmental measures, and with even tougher legislation due in the near future, many ship owners have begun to show interest in improving the efficiency of the power systems aboard their ships.

While the rising fuel prices have negatively affected most supply chains through fuel surcharges or increased operating costs, there is still opportunity for larger companies – dealing directly with shipowners and brokers – and for businesses that depend on shipping for their trade to exploit the supply chain efficiencies latent in the maritime sector. As such, there is no doubt but that shipping will retain its importance in the future as the only efficient way of transporting most goods.

Green initiatives
Recent news reports have covered how Hapag-Lloyd, one of the world’s largest container shipping lines, became the first shipping company globally to have its fleet certified in accordance with the International Maritime Organisation’s (IMO) Energy Efficiency Design Index (EEDI).

Other news has included well-known industry names, such as the Port of Los Angeles, Maersk line, Teekay, ABB, Heidmar, Hanseatic Tankers, Starbulk and Wartsila that have taken things a step further and joined the Carbon War Room initiative, which has published the energy efficiency ratings of over 50,000 vessels online. Simultaneously, major companies such as Coca-Cola, Nike and Wal-Mart have created a container-specific index called the Clean Cargo Working Group (CCWG) index. Currently accessible by ship owners and shippers alone, it nonetheless represents a move in the right direction in terms of environmental consideration.

Technical initiatives
While a modern, two-stroke diesel engine has one of the highest thermal efficiencies of today’s power systems, even this can be improved by integrating the diesel engine with other power systems.
To this end, MAN Diesel & Turbo offers highly efficient steam and gas turbines as part of its innovative Waste Heat Recovery (WHR) system portfolio. The company is a package supplier that can integrate a WHR system – including economisers, steam/power turbine generator and condensing unit – into a vessel and guarantee the performance of the complete WHR system cycle. It can also deliver a package that includes the shaft generator/motor system, which provides substantial flexibility for a complete WHR cycle.

MAN Diesel & Turbo has clearly seen the possibilities offered by waste heat recovery, which generates power from energy that otherwise would be lost to the atmosphere. The WHR principle has been common knowledge for decades but was not widely exploited within the marine segment until recently. Today, environmental factors such as concern over carbon footprints, as well as general improvements to vessel efficiency, have aroused major interest among shipping companies in general. As such, MAN Diesel & Turbo has the knowledge and know-how to push shipping efficiency to the next level.

MAN Diesel & Turbo’s WHR systems consist of high quality and highly efficient machinery that significantly increases overall vessel efficiency, all in close cooperation with yards, designers and owners. The systems are also an effective way to reduce the EEDI index.

In today’s market, low-load operation of main engines has become the norm, one which seems destined to prevail for years to come. While low-load operation can potentially extend payback times, MAN Diesel & Turbo projects specific calculations for interested customers and frequently engages owners in direct dialogue regarding the operational profile of their vessel. The ultimate aim is to find the optimum specification and utilisation profile for installing WHR equipment.

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Golden Ocean cape BC resale



John Fredriksen led Golden Ocean Group Ltc (GOGL) has agreed to assign a newbuilding contract for one capesize bulker to an independent third party, it announced on May 30.

The newbuilding 'Golden Emerald' is to be completed at Pipavav Shipyard. GOGL will receive refund for the installments paid to date. It has taken impairment on the vessel of $2.2m in Q1, reflecting the loss that will arise from the assignment.

The net cash effect is positive with $5m.

Therefore, as of now, GOGL's newbuilding orderbook consists of one capesize, four kamsarmaxes and five ice-class panamaxes with optional two more, which are ordered at Jinhai Heavy Industry of China, Pipavav of India, etc.

However, with deliveries getting late, it is still undecided yet to take all of newbuilding deliveries.

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Greener Ship Recycling in China


The MOU was signed by CNAS President Xie and GL’s Mr. Koumoudhis and Mr. Aulbert (2nd to 4th from the left), under the observation of the IMO’s Mr. Mikelis (1st on the left).

Hamburg, Beijing, 31 May 2012 – Germanischer Lloyd (GL) and the China National Ship Recycling Association (CNSA) have signed a memorandum of understanding (MOU) to work together to promote green ship recycling in China.

GL and CNSA will collaborate to develop training programmes, pilot projects, and research practices that will allow the Chinese ship recycling industry to comply with incoming international regulations, in advance of their entry into force dates, and further green ship recycling in China.

The MOU was signed at the Workshop on the “Early Implementation of the Technical Standards of the Hong Kong Convention in China”, held in Beijing this week. In a ceremony, Mr. Xie Dehua, President of CNSA, and two Vice Presidents, Mr. Huang Zhaoli and Mr. Wu Jun joined Mr. Evgenios Koumoudhis, GL Vice President & Area Manager of Greater China and Gerhard Aulbert, Head of GL’s Ship Recycling Practice in making the agreement between the two partners official. The signing was witnessed by Mr. Nikos Mikelis, Head, Marine Pollution Prevention and Ship Recycling Section, The International Maritime Organization.

Speaking of the MOU, Mr Gerhard Aulbert said: “This agreement underlines the commitment of the Chinese ship recycling industry to reducing the environmental impact of a ship, through to the end of its useful lifecycle. This intensive and long term collaboration will help to bring a clearer focus on a sustainable approach to ship recycling.” Mr. Xie Dehua pointed out in his speech, “It is my belief that a good collaboration by both sides in training, pilot projects and funding is of important and immediate significance for exploring and attaining the goal of ‘greener’ ship recycling.”

Training will be one of the keys to preparing ship recycling yards to operate in a stricter environmental climate. Under the MOU GL and CNSA will work to develop a programme which familiarises both management and workers at the yards with the incoming regulations and the requirements they face to meet these standards.

The Hong Kong Convention will require that ship recycling facilities are authorised to deal with the material generated from recycling in a manner that is both environmentally responsible and protects the health of workers. This includes making sure that workers are trained to deal with hazardous materials appropriately and that they have access to and are trained in the use of the protective equipment required for its disposal. Hazardous material must be kept separate from recyclables and transferred to a disposal facility which itself meets the requirements of the Convention. Recycling facilities must prepare a Ship Recycling Facility Plan, a set of management systems and procedures which are designed, among other things, to protect workers and the environment, prevent accidents and spills, and monitor and report on recycling activities and adverse incidents.

Today China is one of the three largest ship recycling countries, with a rapidly growing share of the global market. In 2005 China implemented regulations to bring its industry into line with international regulations and promote environmentally responsive technology and practices in ‘greener’ ship recycling.

The Hong Kong Convention 2009 and European Commission Proposed Regulation

The “Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships, 2009” adopted by the International Maritime Organisation (IMO), is expected to come into force in 2015. Its aim is to minimise, in the most effective, efficient and sustainable way, the environmental and occupational health risks of ship recycling.

The European Commission has recently proposed new regulations based on the requirements of the Hong Kong Convention that would require European ships to be recycled in facilities deemed to be safe for workers and environmentally sound. Under the new rules ship recycling facilities would have to meet a set of environmental and safety requirements in order to be included on a list of authorised facilities world wide. European ships will be allowed to be recycled only in facilities on the list. Some of the requirements to be met by the ship recycling facilities are stricter than those of the Hong Kong Convention.

CNSA was founded in 1991. Since then CNSA has supported enterprises to develop green ship recycling and establish international cooperation to further enhance the stable and healthy development of China’s ship recycling industry on a large scale and high standard. During the last 20 years this work has been accumulated to a total number of 3,170 scrapped ships with 20.9 million light displacement tonnage (LDT), which contributes significantly to energy saving and emission reduction of the Chinese steel industry. In 2005 the Association released with approval of China Government the industry standard of green ship recycling general regulation.

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Wartsila DF now on 100 LNGCs


Wartsila DF now on 100 LNGCs

May 31, 2012 - Wärtsilä, the marine industry's leading solutions provider, has now been contracted to supply Wärtsilä 50DF dual-fuel propulsion engines to 100 Liquefied Natural Gas (LNG) Carrier vessels.

This notable milestone was recently passed with the supply of a LNG carrier in a South Korean shipyard. The 100 LNG Carriers represent approximately one quarter of the current global fleet.

Wärtsilä's advanced dual-fuel technology was first launched in the early 1990s for use in land-based power plant applications. The first marine installation of the 50DF engine came a decade later. The technology enables the engine to be operated on either natural gas, light fuel oil (LFO), or heavy fuel oil (HFO), and switching between fuels can take place seamlessly during operation, without loss of power or speed. This ensures safety and continuous installation operability. The Wärtsilä 50DF engine is designed to have the same output regardless of the fuel used.

The fitting of Wärtsilä 50DF engines onboard the first LNG Carriers in 2006 set a trend in the industry. Since that introduction, 65 percent of all new LNG Carriers have been fitted with Wärtsilä dual-fuel engines. One of the reasons for the strong success of this particular engine over the alternatives is its superior propulsion efficiency. The clear environmental advantages that operating on gas allows, is another factor in the success of this technology. When operating in gas mode, the nitrogen oxide (NOx) emissions are at least 85 percent below those specified in the current IMO regulations, and CO2 emissions are some 25 percent less than those of a conventional marine engine running on diesel fuel. Additionally, the sulphur oxide (SOx) and particle emissions are negligible at almost zero percent.

"This is indeed an important milestone for Wärtsilä, and for the shipping industry as a whole. It confirms not only our leading position in the LNG transportation sector, but also the viability of Wärtsilä dual-fuel engines. They have demonstrated that they are a solid and reliable choice for owners and operators, enabling easy adaptation to different sailing patterns, in both arctic and tropical conditions, and to various operational profiles," says Lars Anderson, Vice President, Wärtsilä Ship Power, Merchant.

Other marine sectors following the trend
In addition to its success in the LNG Carrier market, the Wärtsilä 50DF engine is increasingly being considered by owners and operators throughout the shipping industry. For example, in the cruise and ferry sector, where it is often necessary to operate in Emission Control Areas (ECAs), there is growing awareness of the advantages of operating on gas. The new Viking Line ferry to operate between Finland and Sweden will be the largest ferry in the world operating on gas.

Similarly, vessels serving the offshore oil and gas industry are increasingly being fitted with Wärtsilä dual-fuel engines. The need for flexibility, fuel efficiency, and compliance with stricter environmental regulations, are the drivers behind this trend.

To date Wärtsilä has sold some 720 DF engines, and has accumulated more than 5 million running hours of experience with this technology. This is far beyond anything offered by competitive engine manufacturers.

Expanded offering
With environmental issues and fuel economy likely to be the future market drivers, Wärtsilä has recently expanded its merchant fleet equipment range to include solutions that address process efficiency and environmental compliance. As a result, it is now positioned as the most suitable systems provider for extended ship power solutions.

Following its recent acquisition of Hamworthy, Wärtsilä is established as a market leader in the LPG and LNG carrier markets for the reliquefaction of boil-off gas, with solutions that offer both economic and environmental advantages.


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China-Germany join hands for hybrid



China's Jiangsu Hantong Ship Heavy Industry and Germany's Jade Werk, GL, TECHNOLOGY and MAN Diesel & Turbo have signed a contract for technical cooperation for the China's first 50,000-dwt hybrid LNG-fueled ship on May 16.

The newbuilding will meet the IMO's EEDI (Energy Efficiency Design Index) Attestation. Shipbuilding market is interested in cooperation between Chinese shipyard's shipbuilding capacity and German companies' technical skills.

TECHNOLOGY and Hantong are jointly in charge of research and development of hybrid LNG-fuelled technology, while Hantong is also into ship construction. GL is to classify and test the vessel and MAN is in charge of R&D and engineering of engines.

The hybrid vessel, scheduled to be delivered in April 2014, will reduce harmful substance by 33%, as well as cut CO2 emission by 5,500t every year, which is able to save over $3m of fuel cost.

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Tokyo help Brazil develop offshore


Tokyo help Brazil develop offshore

Japanese Minister of Land, Infrastructure, Transport and Tourism Takeshi Maeda and Brazilian minister of Development, Industry and Foreign Trade Fernando Pimentel signed an agreement for cooperation in offshore development and maritime sector on May 29.

The Brazilian government plans to depend on Japanese shipbuilding industry in regard of Brazil's subsea energy resource development.

During the signing ceremony, minister Pimentel said, "We have world-largest subsea resources. To develop it, we need support from Japanese shipbuilding industry."

Added, "About 500-some vessels, such as drilling rig, tanker, offshore supply vessel, etc., are expected to be needed for the next six years. Brazil looks forward to cooperating with Japan."


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Hoegh eyes more FSRUs


Hoegh eyes more FSRUs

Hoegh LNG, which owns LNG carriers and floating storage regasification units, is well-placed to win more FSRU contracts this year.

The company signed two long-term FSRU contracts during the first quarter. One is a final agreement with Perusahaan Gas Negara to provide an FSRU for a new LNG import terminal in North Sumatra, Indonesia while the other is a time charter with Klaipedos Nafta for a new floating LNG import terminal in Lithuania.

Hoegh LNG operates a fleet of three LNG carriers and a pair of combination LNG/regasification vessels in addition to three FSRU vessel newbuildings at Hyundai Heavy Industries.

“The company sees continued strong demand for LNG shipping with attractive charter rates,” the company said in a statement Thursday.

“The number of potential FSRU projects remains high and Hoegh LNG continues its efforts to win new tenders for the employment of its third FSRU and further options.”

“Several new awards are expected in the market during 2012. The activity level within floating liquefaction is increasing and additional orders for FLNG units are expected.”

Meanwhile, Hoegh LNG has reported a first quarter loss of $3.8m in what is a slight improvement of the losses of $4.3m seen a year ago.


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GSI delivers semi-sub vessel


GSI delivers semi-sub vessel

Fairstar Heavy Transport N.V. (FAIR) has taken delivery of the FORTE. The closing documentation has been completed to the satisfaction of Fairstar's bankers, classification society and the Dutch Flag State. Fairstar has drawn down on the USD 247 million facility led by ING Bank and effected all outstanding payments due to Guangzhou Shipbuilding International (GSI) for the FORTE.

The ship was delivered to Fairstar on the scheduled delivery date, at the contracted purchase price.

Willem Out, COO of Fairstar, attended to the closing in China and reported: "We are extremely pleased with the quality and performance of FORTE. Over the last two years the Fairstar Team has worked closely with their counterparts at GSI to maintain the highest standards of quality and compliance to our contract. We are grateful for the thousands of hours of hard work that went into FORTE by everyone involved. The commitment to our company by everyone involved in this project, not only GSI, but CSTC and CSSC has been of great value. We value the relationship and look forward to building more ships together."

Ingmar den Blanken, Fairstar's Treasurer, added: "The ING facility provided funding not only for the FORTE, but it has also facilitated the payments due to GSI for the FINESSE, as well as re-financing our current facilities with HSH Nordbank and ABN AMRO. ING did a marvellous job syndicating the credit and managing the closing documentation in a very difficult economic environment. The facility also provides for the issuance of the Performance Bonds required under our Gorgon, Ichthys and Golden Eagle contracts. ING provided a comprehensive solution to our financial needs at a critical time for Fairstar. We appreciate their confidence in our Team."

Philip Adkins, CEO of Fairstar, summed up the achievement: "Promises made, Promises kept, in other words, business as usual at Fairstar."


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