The Sea Asia conference and exhibition, Asia’s iconic show for the maritime sector taking place in Singapore this week, continued at a pace this morning with sessions on finance and an Offshore Marine Forum.
While visitors to the exhibition at the Marina Bay Sands Expo & Convention Centre continued to click through the gates this morning, delegates in the Ship Finance session were hearing a discussion on the current state of the global market.
Chaired by Harald Serck-Hanssen, Group Executive Vice President, Head of Large Corporates & International, DNB Bank ASA, the session heard a senior panel of speakers discuss the supply and demand equation in the sector.
More than 200 delegates attended the morning session which addressed the central questions: does the current shipping cycle differ from the past and is there a paradigm shift in shipping finance?
A leading owner, Coco Vroon of Vroon B.V. called on banks to stop supporting what he called “weak companies” and for a rationalization among shipping banks.
He said the problem banks had was they refused to accept losses and "take their medicine". This had led to an oversupply and low rates prevalent in the market now with bad companies being kept afloat, which had depressed the market, he said.
In defence of banks, BNP Paribas Asia Head of Shipping and Offshore Finance Arnold Wu said the lending institutions were “naturally averse” to foreclosures on ships because they were much harder to do. Unlike in the housing market, foreclosing on a ship was "a painful and difficult exercise", he said.
Also speaking at the finance session this morning were Mario Béhé, Managing Director, Global Co-Head Ship Finance, Credit Suisse AG, Chen Bin, Deputy General Manager, Transport Finance department, the Export-Import Bank of China, Khalid Hashim, Managing Director, Precious Shipping Ltd, and Hong Kong and Yang Chang-kun, Managing Director, Shipping, ICBC Leasing.
Sea Asia 2013 has so far been an enticing combination of top-level discussions in the conference, dealing and networking in the exhibition, and exciting social receptions. There is something for every sector of the diverse global industry.
The event, which articulates the voice of the Asian maritime communities, has captured the imagination of the global shipping community. It was officially opened yesterday (April 9) by Singapore’s Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam.
Co-organisers Seatrade said this morning that Day Two of Sea Asia 2013 continues to exceed expectations in terms of the number of participants and feedback received. More than 14,000 people are expected to attend the conference and exhibition across its three days.
Sea Asia 2013 occupies almost 17,000 sqm of gross space at Marina Bay Sands Expo & Convention Centre in an exhibition of 385 maritime businesses from 36 countries. There are country pavilions from China, Holland, Japan, Korea, Norway, Panama, Qatar, Singapore and the UK.
The 3rd (2013) Chian Shipbuilding and International Ship-trading Summit is to be held in Ningbo city of Zhejiang province this June. The summit is jointly organized by the Association of Shipbuilding Industry of Shanghai, Zhejiang and Jiangsu, also supported by many industrial organizations and institutes. Jointed hands with China Maritime Tech & Security Expo 2013, our summit is to explore the ways and strategies for shipyards and ship traders in current ship market as well as to promote the matching of new ship-relate projects.
Global shipping industry has kept depressed due to the financial crisis and European debt crisis. Growing overcapacity, intensifying competitiveness and industry integration stares us in the face. How to cope with the delivery delay, weak financing support and low ordering activities? How to control the increasing cost? Where is the way out for current ship industry and ship enterprises?..... All these are the stumbling blocks on ship enterprises’ march on growth. How to turn the stumbling blocks to stepping stones. We will try to find the answer together on the summit.
The summit will invited well-known seniors from companies of successful cases at home and abroad to share their experience. Many representatives from S.Korea, Indonesia, Singapore and other countries and areas has registered for the summit. More ship-related projects and businesses has been collected for matching. The summit is supposed to bring the participants more experience, more ideas, more connections......
The open Yangzi River Delta has bred numerous shipyard and ship-related enterprises, attracted plenty ship industry talents. The summit si to provided you a unique platform for shipbuilding and ship-trading based on the fertile earth - to share growth experiences and realize productivity upgrading as well as to exchange ship-trading strategies and keep shipbuilding vitality.
Welcome to join us!
The Busan Development Institute of Korea has recently revealed a result that the first Offshore Korea 2012 (OK 2012) has KRW 52bn ($46m) worth of economic impacts.
The exhibition showed a remarkable outcome with a participation of 777 booths of 400 companies from 27 countries and 16,956 visitors. Moreover, 931 people registered in charged conferences and $15.38m worth of consultations went on.
The OK 2012 held from November 14 to 16, 2012, for three days at BEXCO’s new building was marked as the Korea’s first exhibition specializing in offshore plants and equipment.
The exhibition is evaluated as a successful event, since it showed current state of Korean offshore plant industry and led a way to an opportunity to enter into offshore market.
Four companies supervising the event, including Busan Marine Equipment Association, etc., officially settled the second exhibition’s period as November 12~14, 2014.
Particularly, the next exhibition will be at BEXCO’s main building, scaled up to 1,400 booths. Those associated with OK2014 plan to work on invitations ahead of time, by planning Northeast Asian oil & gas symposiums and etc., in order to attract even more foreign buyers, such as oil majors and EPC companies.
Name: Marintec China 2013
Dates: 3-6 December 2013
Venue: Shanghai New International Expo Center
Address: 2345 Longyand Road, Pudong New Area, Shanghai, PRC
Madam Wang Ling Zhi
Room 6322, Jin Jiang Hotel, 59 Maomingnan Road, Shanghai 200020 China
Tel: (86) 21 6258 2582 Ext 6322
Fax: (86) 21 6472 1270
The Largest and Most Authoritative Maritime Trade Fair in Asia
Regarded as the only gateway to the Asian maritime market, Marintec China has grown to the largest than ever! Being the most recognized maritime trade show in Asia, Marintec China is definitely an international marketplace for buyers to source from international sellers showcasing their latest marine, ship design, offshore engineering and port technology.
Marintec China offers an ideal interactive platform over the 4-day show in Shanghai, providing a holistic business experience for the maritime industry professionals by a combination of a comprehensive exhibition, authoritative conferences and seminars, and high-powered networking activities.
Marintec China Grows Stronger Than Ever
Size of the exhibition
Over 50,000 sqm
Over 70,000 sqm
No. of exhibiting companies
No. of visitors
In terms of size, the exhibition was 40% larger than in 2009, and took up six exhibition halls (W1 - W5 and N1) in Shanghai New International Expo Centre (SNIEC). With 18 national and regional pavilions, and more than 1,650 exhibiting companies from 31 countries and regions, occupying over 70,000sqm, the show has broken all previous records.
The Rising Importance of the Offshore Engineering Market
The offshore market has proved to be a lot more robust than the other sectors with outstanding perspectives. And it is predicted that there will be continuous growth in offshore technology, operations and maintenance. And this is the first year of the “12th Five-Year Plan” during which “Ocean Engineering and Equipment” will be targeted for development by the Chinese government which will undoubtedly speed up the development of related industries. With tremendous support from the appropriate ministries of the Chinese government, Marintec China has enhanced its uniqueness in the industry.
Shippers and shipping lines both need to raise their game if global container supply chains are not to be habitually subject to wildly fluctuating service levels. This was a key take-away from Day 1 of the TOC Container Supply Chain Asia conference being held in Hong Kong, on 12-14 March.
Addressing the conference session ‘Carriers Close Up’, Mark Holloway, Head of Supply Chain Asia for global beverage group Diageo, explained that his company’s supply chain is focused on “cost, service and quality”. However, he added that in his experience container shipping lines have little or no engagement with their customers either to discuss issues that arise or plans to improve service levels. He argued that the focus was almost exclusively on price, which in times of highly volatile rate movements often leads to unreliable lead times impacting service levels for end customers and unreliable updates on where particular shipments are at any moment along the logistics chain.
These factors have a negative impact on business often resulting in increased inventory and service risks. However, Holloway emphasised that the current poor state of relationships between shippers and carriers was as much the result of shippers allowing that to happen as also being the fault of the carriers. His principal message was that both partners need to improve their communications with each other in order to achieve more collaborative supply chain management.
“It is now the responsibility of shippers to elevate the quality of the conversations we have with carriers and focus on cost, service and quality, and therefore allow us to have an on-going relationship with our supply chain colleagues just I have an on-going relationship with the customers I serve,” he concluded.
From a carrier perspective, Stanley Smulders, Senior Vice-President Asia - Europe & West Africa Trade Management, for MOL Liner, accepted that various strategies recently adopted by carriers do impact supply chains. However, he also pointed out that the response of many carriers has simply been as a result of the lack of sustainable financial returns. The creation of wider alliances, for example, is an obvious response to the need to phase in larger vessels economically in order to ensure that the ships are fully utilised. But this will likely result in fewer sailings, which has a direct effect on supply chains.
Following the success of Shiptec China, the 10th International Shipbuilding, Marine Equipment and Offshore Engineering Exhibition for China, planning is now underway for the 12th holding of this increasingly important event which takes place between the 21st and 24th October in 2014 at the Dalian World Expo Center..
The 10th holding of Shiptec took place at the World Expo Center towards the end of 2012 and exceeded all previous events. In total 438 companies from 21 countries took part, showcasing their latest innovations on a gross exhibition area of 23,000 square meters. The four‐day exhibition attracted over 15,000 professional trade visitors and conference delegates from 28 countries and regions and, despite the ongoing global economic downturn, Shiptec China saw an increase of 15% in terms of exhibition size, making it the most valued international maritime exhibition of the year in China.
The exhibition featured six international pavilions, from Denmark, Germany, Japan, Norway, South Korea and the Netherlands while overall international companies accounted for some 30% of the total number of exhibitors and exhibition space.
Amongst the international exhibitors were many leading companies such as ABB, Wärtsilä, MAN, Panasia, Carterpillar, DSM and most of the classification society members of IACS including ABS, CCS, ClassNK, DNV, GL, KR and RINA.
The Chinese shipbuilding industry was also strongly represented with 34 individual shipyards from the six groups CSIC, CSSC, Rongsheng, CSC Shipbuilding, China Shipping, and COSCO Shipbuilding. State shipbuilding group CSSC, with its member shipyards mainly located in the southern part of China, participated in Shiptec China for very first time.
Supporting the exhibition were a number of conferences. Offshore Forum China, jointly hosted by China Association of the National Shipbuilding Industry(CANSI), Innovation Norway and the Danish Marine Group China, was a full day senior summit followed by a half day technical seminar. It attracted over 200 delegates who heard presentations by speakers invited from the oil and gas administration of the Chinese central government and many other international organisations and companies.
For the very first time, ship financing was covered at Shiptec China with the Ship Financing Forum. This was well attended by ship owners, brokers and shipyards
A technical seminar on LNG as a fuel and green ship technologies etc, was also held in conjunction with the main exhibition with experts from the participating classification societies, including ABS, CCS, DNV, GL and RINA.
The biennial event is sponsored by the China Association of the National Shipbuilding Industry, China Shipowners’ Association, Chinese Society of Naval Architects & Marine Engineers, and the Dalian Municipal People’s Government. It is organised and managed by Dalian Xinghai Exhibitions Co Ltd and now the focus moves to next year and an exhibition that is expected to be even larger.
In the last week of November 2012 the 91st session of the Maritime Safety Committee (MSC) was held at the IMO in London. The topics for this session were amendments to the SOLAS convention covering new requirements for passenger vessels, the Code for noise levels on board ships, procedures for recovery of persons from the water, requirements for on board drills related to fire fighting and furthermore piracy, goal-based standards and the approval of circulars from other subcommittees.
SOLAS II-1/3-12 NOISE
One of the major developments which took place during the MSC 91 committee meeting was the introduction of the new SOLAS II-1/3-12 regulation covering reduction of noise on board.
New ships will have to be constructed in a noise reducing manner and personnel must be protected from noise. The maximum noise level limits for control rooms, machinery spaces workshops, accommodation and other areas are laid down in the new “Code on noise levels on board ships”. It will enter into force on July, 1st 2014.
It will be applicable to new ships of 1600 GT or above for which the building contract is placed on 1st of July 2014, or, if there is no contract, construction (keel laid) is 1st of January 2015 or the delivery is on or after the 1st of July 2018. The code includes both mandatory and non-mandatory parts.
SOLAS II-2 Fire Fighting
With regard to the topic of fire fighting some new requirements were discussed during the meeting. Most of them will be reflected in SOLAS II-2. They are expected to enter into force on 1st of July 2014.
To ensure good communication between different fire fighter teams a minimum number of explosion proof portable radio telephones is required to be available on board of tankers (II-2/10).
As regards training, the fire fighting regulation II-2/15 will require on-board means of recharging breathing apparatus cylinders, or at least a suitable number of spare cylinders.
In accordance with the FSS code Ch 3, 184.108.40.206 an audible and visual alarm of low level of air must be available. Regular drills and training on board are essential elements of the operational safety of a vessel.
As well as adding new fire fighting requirements to SOLAS, the FSS Code (Code for Fire Safety Systems) was also amended. The main changes are new requirements for a fixed pressure water-spraying fire extinguishing system to be installed in ro-ro spaces (chapter 7), the designation of a cargo control room to be equipped with a fixed fire detection system (chapter 9) and revised requirements for a fixed deck foam system to be installed on vessels carrying liquid substances according to the IBC Code (chapter 14). These and other amendments to the FSS Code are expected to enter into force on 1st July 2014.
SOLAS II/17 Recovery of persons from the water
“One hand on deck, one hand for the vessel” - This is an old seaman’s saying. Nonetheless, there is always the possibility that passengers or crew fall or are swept overboard, either from one’s own, or another vessel. Consequently every ship must be ready and able to assist in this situation. This requirement is reflected in the new SOLAS III/17, which mandates that ships have a plan and procedure on board to recover persons from the water. In addition there are guidelines for the development of such plans and procedures. The requirement will apply to all ships from 1st July 2014. The guidelines incorporate the plans and procedures into paragraph 8 of the ISM Code (Part A: Emergency Preparedness).
Ships which are exempted from SOLAS III will also be covered by a resolution.
Covering the issue from another point of view, the revised MSC circular for cold water survival was also approved.
SOLAS III/19 Enclosed space entry
Entering into enclosed spaces is always a risk. Good training is one of the preparations to minimise the risk of accidents. So MSC 91 approved, for final adoption at MSC 92, amendments to SOLAS Reg III/19 on emergency training and drills. Crew members with enclosed space entry or even rescue responsibilities will be required to participate in an enclosed space entry and rescue drill at least once every two months.
Goal Based Standards
The MSC continued its work on goal-based standards. They developed draft guidelines for the approval of equivalents and alternatives. The work on the guidelines will continue in a correspondence group. Member States and interested organisations were invited to submit comments on the safety level approach elements at the next session.
With regard to other issues arising from reports of IMO subcommittees, the MSC adopted amendments to update the performance standard for protective coatings for dedicated seawater ballast tanks in all types of ships and double skin spaces of bulk carriers. Furthermore the performance standard for protective coatings for cargo oil tankers was adopted. Reference is made to MSC.215(82) and MSC.288(87). Both are mandatory under SOLAS.
The Code for Construction and Equipment of Ships carrying Dangerous Chemicals in Bulk (IBC Code) was also amended. Changes were made to chapters 17 (liquid substances), 18 (hazardous liquids) and chapter 19 (products), with new substances being added.
Covering the operational safety of vessels the International Safety Management Code (ISM) is well known. The MSC has now approved amendments to improve their user friendliness and efficiency. There will be changes to the foreword clarifying some of the Code’s intentions and some further amendments. The changes will be circulated to all contracting governments with a view to adoption by MSC 92.
The issue of Formal Safety Assessment (FSA) was discussed during the committee meeting. They approved a circular on the Revised Guidelines for Formal Safety Assessment (FSA) and a circular on Guidelines for the application of Human Element Analysing Process (HEAP) for use in the IMO rule making process.
Forms of certificates
The amendments to the appendix of the annex to SOLAS are expected enter into force on 1 July 2014. Several forms of certificates and records of equipment were revised and will be amended, including the forms for the Cargo Ship Safety Construction Certificate and the Cargo Ship Safety Equipment Certificate.
Passenger Ship Safety
Responding to the Costa Concordia incident in January 2012 the issue of passenger ship safety is an ongoing topic. The committee agreed on a revised circular on recommended operational measures. Voluntary measures are already in place, such as:
(1) carrying additional lifejackets at places other than cabins
(2) the adequacy of the dissemination and communication of the emergency instructions for passengers
(3) carrying out the muster for passengers prior to departure if passengers are scheduled to be on board for more than 24 hours
(4) limiting access to the bridge
(5) ensuring that the voyage is in accordance with the voyage plan
(6) enhancement of emergency instructions to passengers (adding the instructions on the timing to put on a life jacket and confirmation of escape routes)
(7) recording the nationalities of passengers and crews <newly added>
(8) carrying out the drills for crews to be prepared for the rescue boat embarkation of passengers.
The MSC approved a draft amendment to SOLAS regulation III/19 to require musters of newly embarked passengers prior to or immediately upon departure, instead of “within 24 hours”, as stated in the current regulations. The draft amendment will now be circulated with a view to adoption, at the next session, MSC 92, in June 2013.
With regard to training for seafarers, the MSC 91 approved revised Guidelines on the Medical Examination of Seafarers (STCW.7/Circ.19) and approved a STCW.7 circular providing Guidance on Electronic Chart Display and Information System (ECDIS) Training. Both were discussed in detail at the last STW committee meeting in May 2012. If you want to learn more about specific training requirements, please feel free to contact your GL Academy.
Piracy is still an ongoing subject of concern in the maritime world, although the MSC 91 reviewed the latest statistics and observed a downward trend in the incidences of piracy and armed robbery. However, many seafarers are still being held hostage in Somalia, some of them for more than two years. The committee also noted the increasing number of incidents in the Gulf of Guinea.
Many shipping companies are now hiring armed security guards for the protection of their vessels. Consequently the International Organisation for Standardization has developed a new ISO PAS 28007 for Private Maritime Security Companies. One quality criteria that should be checked before working with one of these companies is whether the guards have adequate maritime knowledge in addition to their military knowledge.
GL Academy has the experience of undertaking a number of tailor-made programs supplying the necessary shipping knowledge to armed guards; making them aware of on board routines, procedures and requirements. Please contact us for details.
The Marine Environmental Protection Committee (MEPC) in its 64th session approved interim guidelines for determining the minimum propulsion power required to maintain the manoeuvrability of ships in adverse conditions. The interim guidelines, which were disseminated as MSC-MEPC.2/Circ.11, can be used from the entry into force of the EEDI regulations on 1 January 2013 until the finalised guidelines are available.
Are you interested in regular technical updates? Do you have further detailed questions? Please get in touch with our technical experts at email@example.com.
You can also register to receive ‘GL Rules Pilot – Online Tool to Keep You Informed’. To get an overview of the latest technical and regulatory updates, please go to http://www.gl-group.com/en/gl-focus-regulatory-technical-update.php.
A summary of all amendments from the latest IMO meeting will be available soon in our seminar “Latest Amendments”. Look out for new dates from January 2013 onward.
The Korea Marine Equipment Association (KOMEA) held KOMEA FORUM 2012 on December 21 and revealed that as IMO tightening offshore environment regulation, Korean equipment makers should prepare for green ship, eco ship, etc.
An official from the Ministry of Knowledge Economy main industries policy division said domestic shipbuilding and offshore industries should take an action in preparation for changing global shipbuilding and offshore markets.
The first speaker analyst Lee Sok-Je of JP Morgan said under a topic 'shipbuilding & offshore Industries' market forecast and future equipment industry', transition in global shipbuilding and offshore industries would come earlier. He added that Korea should add value in shipbuilding, which we could do the best.
KOMEA Chairman Park Yoon-So said using IT-based high-value marine equipment would be one of ways to overcome depressed shipbuilding market and we should create products that global shipowners had to buy those regardless of prices.
On December 18th, WWW.ESHIPTRADING.COM successfully held its third Member Salon in this year – “Ship-related Projects Cooperation Exchange Salon”. Totally over 30 members attended the salon and carrier out heated discussion about the projects on hands and the situations and prospects for ship market.
Despite the current overall depression in global shipping and shipbuilding industry, the participants all offered multiple ship-related projects to look for cooperation partners. Eshiptrading.com introduced a Yongxing Island Expansion project which is looking for 3,000dwt bulker or barges for hauling stones to the Island. Some participants showed interests in the cooperation. Another member from Shanghai wants to purchase a five year 30,000dwt to 40,000dwt MPP, which is a hot ship type in the market. Besides, there are buyers for 10,000dwt MPPS and sellers of 2,000CBM split hopper barges. All the participants came to the salon with urgent or important ship-related projects and willing to exchange their information with any potential partners.
Obviously, the participants on this salon are more active and willing to join in discussion and information exchange. The lasting market slack seems not hit their confidence in their products and the market prospects, on the contrary, insiders seem to be more confident in the market after long term frustration.
Representative from Eshiptrading.com pointed out that firm purchase offer are more than firm sale offer in the market at present. More exchange is needed to eliminate invalid information and reach final conclusion.
Eshiptrading.com and the Member Salon as the professional platform for ship trading and related projects, has been widely recognized by our members and the participants. All the participants hope that more such salon would be held for insiders to exchange information and look for partners face to face.
Much more ship S&P information and other ship-related projects were introduced on the salon, most of which are for foreign trade. For more detailed information, you can visit WWW.ESHIPTRADNIG.COMor contact with us at any time.
With traditional shipping and shipbuilding industry in the doldrums, many financial institutions are giving shipping a wide berth. However, Diao Gang, director of ship finance at International Far Eastern Leasing Co, suggested some niche opportunities at Marine Money’s conference in Tianjin earlier this week.
“With global warming, the Arctic ice areas are shrinking, the Arctic route is expected to open for navigation in the years ahead, and the development of Arctic routes will lead to a growth in demand for ice breakers,” Diao said.
Another reason for optimism was closer to home, according to Diao. China’s ongoing ‘Yangtze River Gasification’ project which is to develop LNG fuelled vessels along the river, will bring innovation. “It could be a new hot spot for investment and bring new opportunities for the depressed market,” Diao reckoned.
Diao also suggested financing institutions should strengthen their capabilities in risk forecasting and analysis and provide more patient support to shipowners.