Merlin's Magic Media
Wednesday, 26 September 2012
International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry increased by an average 2.1 per cent in 2011. This compares with the 2.2 per cent average rise in costs recorded for the previous year. Crew costs were the main reason for the overall increase in 2011, while the cost of insurance fell for the second year in succession.
The findings are set out in OpCost 2012, Moore Stephens’ unique ship operating costs benchmarking tool, which reveals that total operating costs for the three main tonnage sectors covered – bulkers, tankers and container ships – were all up in 2011, the financial year covered by the survey. Both the bulker and tanker indices increased by 3 index points (or 1.7 per cent) on a year-on-year basis, while the container ship index (with a 2002 base year, as opposed to 2000 for the other two vessel classes) was up 5 index points, or 3.1 per cent. The corresponding figures in last year’s OpCost report showed increases in the bulker, tanker and container ship indices of 5, 2 and 3 points respectively.
There was a 3.3 per cent overall increase in 2011 crew costs compared to the 2010 figure. (By way of comparison, the 2008 report revealed a 21 per cent increase in this category). Tankers overall experienced increases in crew costs of 2.2 per cent on average, compared to 2.7 per cent in 2010. Within the tanker sector, Suezmaxes reported an overall increase of 3.4 per cent, while for operators of LPG carriers of between 3,000 and 8,000 cbm the crew bill was up by 6.7 per cent. For bulkers, meanwhile, the overall increase in crew costs was 2.8 per cent, compared to 4.0 per cent the previous year, with the operators of Panamax bulkers paying 5.4 per cent more than in 2010. For container ships, the increased spend on crew averaged 3.4 per cent (as opposed to 2.9 per cent in 2010), with smaller vessels (up to 1,000 teu) paying 3.9 per cent more than last year. Operators of larger dry cargo ships (above 25,000 dwt) and of smaller LPG carriers (between 3,000 and 8,000 cbm), however, experienced the biggest increase in crew expenditure – 6.7 per cent in each case.
For repairs and maintenance, there was an overall fall in costs of 1.1 per cent, compared to the 4.5 per cent increase recorded for 2010. The only category of tonnage to show an increase here was container ships, where repairs and maintenance costs were up by 3.7 per cent. There was no overall increase in these costs in the tanker sector, and a 1.9 per cent fall in such expenditure for bulkers. Handysize and Handymax were the only bulker types to spend more on repairs and maintenance in 2011, and Handysize product tankers were alone among tankers in this respect. But in the container ship sector the bigger vessels (between 2,000 and 6,000 teu) spent 4.4 per cent more on repairs and maintenance. Container ships up to 1,000 teu, meanwhile, spent 3.2 per cent more, and the increased repairs and maintenance expenditure for box ships between 1,000 and 2,000 teu was 1.5 per cent.
After two successive years of declining expenditure on stores, OpCost this time revealed a 2.7 per cent increase in the level of such spending. Some of the biggest increases in this regard were witnessed in the tanker sector where Suezmaxes, for example, spent 5.5 per cent more on stores than in the previous year, and Aframaxes 5.4 per cent more. Panamaxes, where the stores spend was down by 2.4 per cent, were the only category of tanker to show black ink in this regard. And there was no black ink at all for stores in the gas market, with operators of LPG carriers of between 70,000 and 85,000 cbm paying 6.5 per cent more compared to 2010.
Expenditure on insurance dipped overall by 1.5 per cent, this following a 4.7 per cent fall in 2010. The insurance spend was down for bulkers and tankers overall by 4.5 and 3.4 per cent respectively. Indeed, all categories of bulkers and tankers paid less for their insurance than they did in 2010. For container ships, though, it was more of a mixed picture. Whereas the larger box ships paid 0.7 per cent less for their insurance in 2011, operators of smaller container ships paid 3.5 per cent more.
Moore Stephens partner Richard Greiner says: “OpCost 2012 contains both good and bad news for the shipping industry. The bad news is that costs continue to rise. The good news is that costs are not rising as fast, or as steeply, as they were three or four years ago, and are in fact pretty much in line with predictions.
“Once again, it was an increase in crew costs which was the headline figure for the industry in 2011. The average overall increase in crew costs was in fact marginally down on the figure for 2010. This may be a reflection of the economic climate, and a consequence of more companies going out of business and more ships going into lay-up. But while crew costs remain the single biggest contributor to higher operating costs, they are still modest in comparison to some of the hefty increases posted in earlier years. Investing in good people is a must for the shipping industry, and will justify the price tag in the long term.
“There was a fall of just over one per cent in repairs and maintenance expenditure, this despite continuing increases in the cost of labour and raw materials. Again, this may be a direct result of the economic downturn, which shipping has weathered better than many other industries. But nevertheless there has been reduced activity, a number of victims, and significant pressure on spending in many of those companies that have survived.
“Spending on stores was up in 2011. This is no surprise since the category includes the likes of lube oils, the price of which continued to rise throughout 2011 along with the price of crude oil. New technology in lube manufacture promises to make ships more environmentally friendly, and more efficient, but that will come at greater financial cost.
“Insurance costs were down again, which is not a surprise but an anomaly, given the economic climate and the pure underwriting figures for recent years. In a classic underwriting market undistorted by rampant competition, rates would be going up. As it is, with very few exceptions, they are going down. One of those exceptions can be found in the container ship sector, where a 3.5 per cent increase in insurance costs for smaller box ships compares to an 0.7 per cent fall in costs for the biggest vessels. This would suggest that the age of the ship remains a greater concern for underwriters than its size, which is nothing new.
“The global economic outlook remains uncertain. Confidence in the shipping industry, while fragile, has held up remarkably well given the financial and political difficulties of recent years. Shipping will not welcome an increase in operating costs. But there should be some solace to be had from confirmation that the increases are more or less in line with predictions. In shipping, as elsewhere, it is easier in difficult times to plan for a probability than for an unexpected contingency. And better analysis and risk management makes an unexpected contingency less likely.”
The latest report marks the twelfth year of publication for OpCost, which this time includes data from more than 2,700 ships, a record number. Running cost information is obtained on a confidential basis from clients of Moore Stephens, and from other shipowners and ship managers who submit data for inclusion. OpCost is widely used for benchmarking running costs, the preparation and ongoing monitoring of business plans and in forensic accounting. Copies of the OpCost 2012 report are available free to owners who submit their data for inclusion, or can be purchased by contacting Richard Greiner at Moore Stephens London. www.moorestephens.co.uk
Bone fide journalists can request an electronic copy of OpCost 2012 by emailing email@example.com
Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping and insurance adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 636 offices of independent member firms in 100 countries, employing 21,197 people and generating revenues in 2011 of $2.3 billion.
For more information:
Moore Stephens LLP
Tel: +44 1903 50 20 50
Lubmarine launches three new barges in Singapore
LEADING international marine lubricant supplier TOTAL Lubmarine has further strengthened its global service offering to the shipping industry with the introduction of three brand-new barges at the port of Singapore.
The 700 dwt double-hulled barges – Marine Champion, Marine Prospect, and Marine Talent - have a cargo load capacity of 860 cu m for bulk and packaged lubricants, and are fitted with state-of-the-art firefighting equipment. They will be operated by Lubmarine’s logistics partner, Singapore-based Ocean Tankers, which operates a diverse fleet of support vessels and is a specialist in ship-to-ship transfers.
Serge DAL FARRA, Head of Marketing at Lubmarine, says, “The investment made in these barges confirms Lubmarine’s commitment to the very highest standards of safety and excellence in the best interests of its customers. It also underlines our determination to provide the highest level of responsive service, and access to our innovative range of products, in one of the world’s busiest and most strategically located ports.
“We are delighted to be working in Singapore with Ocean Tankers, which shares our commitment to safety and excellence. Lubmarine has a very strong presence in Asia through its network of supply and service centres. This will become even stronger following the introduction of the new barges in Singapore.”
For photos of the Marine Champion and Marine Prospect, go to: http://picasaweb.google.com/Merlinclients/Lubmarine, or email firstname.lastname@example.org
l Lubmarine is the worldwide marine lubricants network of oil major Total. As a key industry player, Total is committed to achieving a level of excellence which meets its customers’ needs by providing the right product, in the right place, at the right time, backed by first-class support and expertise.
For more information:
Total Marketing and Analysis Department
+ 33(0)1 41 35 95 55
Tuesday, 25 September 2012
Schat-Harding strengthens North Sea support
The world’s leading lifeboat and davit manufacturer Schat-Harding has strengthened its support for North Sea operators by opening new offices and service centres in Bergen and Stavanger. Both bases will focus on delivering in-service support and maintenance for lifeboats and davits in the North Sea.
“Our clients are the major North Sea oil and gas operators and they don’t just want to buy boats and davits,” says Petter Hernaes, Vice President, Nordic region, Schat-Harding Services. “They want to buy a lifetime of safe and trouble-free operation. Our Product life Cycle Management scheme and fleet and frame service agreements ensure that the major investments made by operators in lifesaving equipment are always maintained in ready to go condition. These new bases in Bergen and Stavanger will put our managers and service personnel closer to the offshore operators and the units they maintain.”
The Bergen office will initially be manned by Sales Manager Morten Holm and Norway’s Offshore Account Manager Johan H.Lyse.
The Stavanger office will be headed up by Project Manager Ivar B.Arnesen Jr, who will oversee a team of engineers and service personnel.
The two new bases will deliver a service and maintenance capability close to the main operating bases of the major North Sea operators. High quality servicing and spares will be quickly available for specialised offshore support vessels and offshore rigs and units. The local bases allow for swift mobilisation of resources which is very important for maintaining operations in the North Sea area.
Umoe Schat-Harding is the global market leader in marine life-saving systems and offers the largest worldwide service network in the industry. When designing, manufacturing and servicing, it provides lifetime support for a wide range of innovative lifeboats, davits, winches and rescue boats which all have one purpose: the safe evacuation of crews, passengers and offshore workers.
Download a photo of Petter Hernaes at:
For more information:
VP Nordic and Baltics
Schat-Harding Services AS
+47 90 57 15 75
+47 45 86 74 47
Monday, 24 September 2012
ITIC continues to reward loyalty with renewal credit payments to members
FOR the seventeenth year in succession, International Transport Intermediaries Club (ITIC) has paid a renewal credit to its members. For the year ended 31 May, 2012, members received a total of $5.2m. In the past seventeen years, ITIC has returned more than $67.3m to members in credits.
ITIC Chairman Peter French says, “One of the unique strengths of a mutual is the absence of shareholders, allowing its members to benefit from any financial surplus. Solvency II, the new regulatory regime with which all insurers within the EU will have to comply by 1 January, 2014, will have an impact on the future capital requirements of the business. This will necessitate our maintaining strong reserves not only to ensure compliance, but also to sustain continuity credits at renewals in the future.”
From 1 June 2012, ITIC has reduced the level of the continuity credit for renewing members to either 2.5 per cent or 5.0 per cent of their expiring premium. This reflects both the tougher investment environment and the challenging claims market, whilst also preserving the strength of its reserves. ITIC’s combined reserves, at $78.4m, continue to remain comfortably higher than current and anticipated future regulatory requirements.
Professional indemnity insurers tend to see a sharp increase in both the number and the value of claims during an economic downturn and ITIC is experiencing claims inflation of ten per cent each year. French says, “It is often easier for a client to sue or counter-sue its service provider than to settle an invoice or a claim. Claims increased significantly in 2009, levelled off a little in 2010 and initially showed an increase again in 2011. However, there are now signs that this higher claims activity may be starting to reduce.”
At renewal, ITIC introduced special deductibles for those types of claims that occur most frequently, such as demurrage claims for ship brokers, refrigerated cargo claims for ship agents and legal costs in
litigation for ship managers. In this way, the club has increased its premium income while continuing to retain approximately 95 per cent of its members at renewal each year. US
ITIC emphasises that this is an excellent result in the prevailing economic climate.
l ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com
For more information:
Tel: +44 (0)20 7204 2928
Fax: +44 (0)20 7338 0151
Tuesday, 18 September 2012
Shipping confidence falls to four-year low
Overall confidence levels in the shipping industry fell in the three months ended August 2012 to their lowest level for a year, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. The fall, to the lowest figure recorded since the survey was launched in May 2008, comes after three successive quarters of improved confidence. Chief among the concerns raised by respondents to the survey were the glut of newbuildings coming onto the market and continuing uncertainty about the global economy.
In August 2012, the average confidence level expressed by respondents in the markets in which they operate was 5.3 on a scale of 1 (low) to 10 (high), compared to the figure of 5.7 recorded in the previous survey in May 2012, and identical to the figure posted one year previously, in August 2011. The survey was launched in May 2008 with a confidence rating of 6.8.
Charterers were the only category of respondent to report an increase in confidence over the three-month period. Having been the least confident of all categories of respondent in the previous survey, their confidence rating this time of 5.7 (compared to 5.0 in May 2012) was second only to the 5.9 recorded by managers, which itself was down from 6.0 last time. Owners’ confidence was down from 5.6 to 5.1, the lowest rating in the life of the survey for this category of respondent. Brokers also plumbed their all-time low in the survey ratings, with confidence levels down from 5.2 to 5.0 this time. Geographically, confidence in Asia hit a new survey low of 5.4 (down from 5.7 last time), while in Europe it was down from 5.6 to 5.2.
The feelings of large numbers of respondents were succinctly captured by the comments of one in particular, who said, “It is hard to be confident at the moment. Companies are burning up cash reserves at a frightening rate, given the appalling earnings currently on offer. Supply trends are still very negative. Banks are increasingly reluctant to put out any money, let alone new money, except in very specific sectors. The economic outlook, particularly in Europe, is dismal, while China looks increasingly likely to suffer a hard landing. Let’s hope that the darkest hour really is just before the dawn.” Another said, “It is astonishing that a whole industry has been misreading the markets, which has led to the prospect of excess building capacity for years and years to come, based on wrong assumptions by analysts.”
Overtonnaging was uppermost in the minds of many respondents, typified by the comment that, “The shipping market will remain difficult for the next few years. More owners are now tempted to order new ships as building prices will be at their lowest level for many years. Shipyards and governments will do everything they can to prevent the closure of yards, which will create very interesting special financing packages aimed at getting owners to order new ships. So the market will be flooded with more new vessels, extending the time it will take for the industry to recover.”
Another respondent said, “The only glimmer of hope is that we are approaching the limit of shipyards’ comfort zones. Yard overcapacity will become evident in the next twelve months and there will be fierce competition, even between established yards, to win new orders, which should drive prices to new lows and possibly force yards to come up with new designs.”
Elsewhere it was noted that, “The expectation of a reduction in tonnage by 2015/2016, as a result of twenty per cent of the world fleet being more than fifteen years old and therefore finding it difficult to pick up cargoes in many ports, was expected to have a positive effect on charter rates. But, with Greek owners reported to have booked over 400 vessels in Korean yards, excess tonnage is likely to keep the pressure on freight rates, and we shouldn’t expect to see any improvement for the next five years.”
The combination of political and economic uncertainty and depressed shipping markets was a dominant theme in many responses to the survey. “The recovery of the shipping industry,” said one respondent, “will depend on the recovery of European economies from financial crises, on the amount of new tonnage coming onto the market, and on the development of China’s import and export markets. The current stagnant situation is unlikely to change within the next twelve months.”
Other respondents, however, saw potential advantages in the current situation, with one predicting, “Security held in long-term contracts, together with opportunities to benefit from lower newbuilding costs and the exploitation of new government regulations, makes for a healthy outlook.”
The banks also featured in a number of responses to the survey. “The accelerating withdrawal of banks from the shipping finance market is effectively depressing ship values,” said one respondent. “This is not a short-term cycle, and we anticipate that bank finance for medium-size owners and fleets will be largely unavailable for some years yet. This is another example of banking problems penalising a vital industrial sector.”
The likelihood of respondents making a major investment or significant development over the next twelve months remained stable, on a scale of 1 to 10, at 5.3, which is the highest figure since the 5.6 recorded in May 2011. Owners (down from 5.6 to 5.3) were less confident in this regard than in our previous survey, while the expectations of managers and charterers remained unchanged at 5.5 and 5.8 respectively. 45 per cent of charterers (unchanged from the previous survey), 36 per cent of owners (down from 40 per cent last time) and 45 per cent of managers (up from 40 per cent), assessed the likelihood of their making an investment at 7.0 out of 10.0 or higher. Geographically, expectation levels of major investments were up in Asia, from 5.2 to 5.3, but down in Europe, from 5.3 to 5.2. The biggest increase was in North America, up from 4.5 to 5.7.
Demand trends, competition and finance costs once again featured as the top three factors cited by respondents overall as those likely to influence performance most significantly over the coming twelve months. The numbers were up for demand trends (from 21 per cent to 22 per cent) and for finance costs (16 to 17 per cent), but down in the case of competition, from 18 per cent to 17 per cent. Tonnage supply, up by 3 percentage points to 14 per cent, featured in fourth place, overtaking fuel costs, down from 14 per cent to 12 per cent. Operating costs were down, too, from 12 per cent to 10 per cent.
Demand trends remained the number one performance-affecting factor for owners, up from 21 per cent to 24 per cent. Tonnage supply featured in second place at 19 per cent, followed by finance costs, down one percentage point to 17 per cent. For managers, too, demand trends featured in first place (up from 18 per cent to 20 per cent), followed by finance costs (up from 17 per cent to 18 per cent), with competition (down 3 percentage points to 15 per cent) in third place. For charterers, demand trends (up 6 percentage points to 27 per cent) supplanted fuel costs (down to second place from 26 per cent to 19 per cent) as the number one performance-affecting factor, with tonnage supply in third place at 14 per cent.
Geographically, demand trends remained the most significant factor for respondents in both Europe (up from 21 per cent to 23 per cent) and in Asia (down from 24 per cent to 21 per cent). In Europe, finance costs (unchanged at 19 per cent) featured in second place, ahead of competition (down 2 percentage points to 16 per cent). In Asia, meanwhile, it was competition which featured in second place, despite being down 2 percentage points to 16 per cent, ahead of fuel costs, static at 16 per cent.
Demand trends were a dominant feature of the responses to the survey. One respondent quipped, “Low dry bulk rates and very low tanker rates, more ships to come into a relatively modern fleet, cheap newbuildings, poor demand outlook - what's to like?”
There was a 7 percentage point fall (from 51 per cent to 44 per cent) in the number of respondents overall who expected finance costs to increase over the next twelve months. This is the lowest level since the same figure was recorded in November 2010, and the second-lowest figure in the life of the survey to date, behind the 42 per cent recorded in August 2010. While the number of charterers who thought that finance costs would increase rose by 18 percentage points to 52 per cent, owners and managers were thinking along different lines. 39 per cent of owners (the second-lowest since the survey was launched, behind only the 37 per cent recorded in August 2010) were expecting costlier finance, as opposed to 54 per cent in May this year, while the 46 per cent of managers who thought likewise (again, the second lowest figure returned in the life of the survey to date) was 6 percentage points down on last time.
Once again, charterers, unsurprisingly, differed from owners and managers generally in their views about rates in the three main categories of tonnage covered by the survey. In the tanker sector, the number of respondents overall who thought that rates would increase over the next twelve months was down by 6 percentage points on the last survey, to 34 per cent. There was a reversal of the situation recorded in the previous survey, when there was an increased expectation of higher rates in the tanker sector by owners and managers, but not by charterers. This time, owners and managers (down from 41 per cent to 33 per cent, and from 41 per cent to 27 per cent, respectively) were much less confident of rate increases. For managers, this is the lowest figure recorded since the 18 per cent returned in October 2008. But, in the case of charterers, the number expecting improved rates was up to 47 per cent from 18 per cent last time. Geographically, the prospects for higher tanker rates were deemed lower by respondents in Asia (down from 36 per cent to 34 per cent), Europe (down from 41 per cent to 33 per cent) and North America (down from 52 per cent to 44 per cent).
In the dry bulk sector, meanwhile, there was a one percentage point fall, to 34 per cent, in the overall numbers of those anticipating rate increases. Again, owners (down 3 percentage points to 33 per cent) and managers (down to 35 per cent from 38 per cent) were less confident of rate increases than they were in the previous survey. But 35 per cent of charterers anticipated improved rates, compared to just 15 per cent last time. In Europe, there was a 2 percentage point increase, to 36 per cent, in expectations of higher dry bulk rates, which meanwhile remained unchanged in Asia at 33 per cent.
In the container ship market, there was a 2 percentage point fall overall, to 32 per cent, in the numbers expecting rates to go up. In the previous survey, the number of respondents anticipating higher rates over the coming year was up in all categories of respondent. This time, it was down in all categories, with the exception of owners and charterers. The number of charterers predicting higher rates was up to 47 per cent (from 41 per cent previously) to its highest level since the survey was launched in May 2008 with a corresponding figure of 50 per cent. In the case of owners, there was a 2 percentage point increase to 37 per cent, but the number of managers expecting improved rates was down by 5 percentage points to 26 per cent. Expectations of improved rates were up in Asia (from 28 per cent to 30 per cent) and in North America (from 39 per cent to 41 per cent) but down in Europe by 4 percentage points to 34 per cent.
Moore Stephens shipping partner, Richard Greiner, says, “The fall in confidence recorded in our latest survey is clearly a disappointment. But it cannot really be termed a surprise. In some respects, shipping has been bucking the trend for the past twelve months, exhibiting increased confidence despite the political and financial woes in Europe and elsewhere, and the problems of overtonnaging and falling rates.
“Unless you are a charterer, it is difficult to find too many operators who believe that rates in the main trades are likely to move upwards over the coming twelve months. Given that it is unlikely that charterers know anything that the rest of the market does not, it will, as always, be market forces which ultimately dictate the winners and losers. Clearly, tonnage supply - both actual and incipient - currently exceeds demand in most trades. Increased scrapping will help, but it will still be necessary to renegotiate commercial arrangements.
“Meanwhile, good, long-term contracts with reliable business partners are as good as money in the bank, and better in many respects. Shipping has always been a mixture of long-term and short-term business, the lading and the tramp! That does not change even in a depressed market such as the one we are currently operating in. Lower newbuilding costs do nothing to address the current tonnage overhang, but they do provide an opportunity for those with access to cash, a viable business plan and a secure level of demand to fill. Furthermore, the leaner market left in the wake of the disappearance of those operators unable to survive the economic downturn does at least offer up the prospect of a more viable industry for the future.
“Among other, isolated pieces of good news to emerge from the survey was the fact that respondents overall expected expenditure on fuel to be a less significant influence on their overall performance than they did previously. This may be no more than a temporary reprieve, but it will be welcome nonetheless. Fuel and crew costs will continue to be a major expenditure for owners and operators for the foreseeable future. They are costs which will not go down in real terms, like all other costs facing the industry. In truth, the only costs which ever seem to go down are the costs of shipping itself. Shipping is an industry which is often accused of undervaluing and underselling itself. There is a lot of empirical evidence to back this up, not least the over-simplistic but nonetheless powerful anecdote about the enormous gap between the cost of shipping brand-name trainers from the Far East, and the retail price of those trainers in western markets.
“The problem for today’s shipping industry is having the nerve, the wherewithal and the financial backing to sell its expertise and service at a self-supporting price. You don’t have to be John Kenneth Galbraith to work this one out. But while the prospects for recovery in the shipping markets depend to a large extent on a resolution of the debt crisis in Europe and elsewhere, there are issues closer to home which shipping can address, and which will both carry it over the current crisis and position it properly in the more stable market which will hopefully emerge. Quite when that will be is a question which might have defeated Galbraith himself.”
The Moore Stephens Shipping Confidence Survey includes responses from key players worldwide in the international shipping industry to a targeted, web-based survey by the Moore Stephens Shipping Industry Group. Responses were received from owners, charterers, brokers, advisers, managers and others. Editors can apply for a copy of the survey by emailing email@example.com
Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping and insurance adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 636 offices of independent member firms in 100 countries, employing 21,197 people and generating revenues in 2011 of $2.3 billion. www.moorestephens.co.uk
For more information:
Richard Greiner, Moore Stephens LLP
Tel: +44 (0)20 7334 9191
Tuesday, 4 September 2012
Bureau Veritas classed fleet passes 10,000 vessels
THE classed fleet of international classification society Bureau Veritas has grown to 10,055 vessels totalling 93.4m gt. In addition, 1,790 inland water vessels are classed with BV. The growth is attributed to strong deliveries of newbuildings and also to a significant inflow of vessels in service attracted by BV’s range of services.
Bernard Anne, managing director, Marine Division, Bureau Veritas, says, “Today we class a very significant share of the world fleet and, importantly, a significant share of the vessels in every sector. That gives us very wide experience and the ability to deliver services in every field for every ship type. That means we can provide the most practical services for shipowners and yards, based on real and extensive experience with ships in service of every type.”
Bureau Veritas is the second largest classification society in the world by number of vessels classified and has around 20 per cent of the world newbuilding order book by vessel numbers. Its fleet is made up of 38.1 per cent bulk carriers, 18.7 per cent tankers, 12.8 per cent containerships, 7.9 per cent cargo ships, 7.4 per cent gas carriers, 4.5 per cent passenger vessels, 2.6 per cent offshore units and 8 per cent other ships.
Significant new services launched by Bureau Veritas in the recent past include a suite of environmental tools and a simplified online certification system.
Bureau Veritas is a world leader in conformity assessment and certification services. Created in 1828, the Group has 58,000 employees in 940 offices and 340 laboratories located in 140 countries. Bureau Veritas helps its clients to improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.
www.bureauveritas.com for corporate information
www.veristar.com for marine information
For more information:
Bureau Veritas Marine Division
+33 1 55 24 71 98
Graig and GMI to deliver safe havens for Chinese yard problem deliveries
Cardiff-based Graig Group and Global Maritime Investments are extending their co-operation to provide Chinese shipyards with safe havens and tailor-made solutions for problematic deliveries. Working together, the two groups will provide yards with employment and management for vessels which have been built but which cannot be delivered to the owner. The joint approach builds on Graig’s extensive knowledge of Chinese shipyards and shipping and the outstanding freight market expertise and access to capital investors of GMI.
Hugh Williams, CEO, Graig Group, says, “There are many shipyards in China which are facing problems delivering ships or which are effectively building for their own account because owners cannot meet their commitments. They need good commercial and technical management for the ships to get them into operation and an exit route for the future. GMI has access to investors and employment opportunities and Graig knows the yards and ships and has the technical and crewing management expertise to get the ships into operation economically. Together we can help yards ride out this crisis of delays and cancelled deliveries.”
Steve Rodley, Managing Partner of GMI says, “In a prolonged poor market complicated by a deluge of new tonnage there are real opportunities for people with access to capital and employment. We have that, and with Graig we have the Chinese connections and technical competence to take up these opportunities. Ships which have been built but which would otherwise end up as fire resales or stuck in the yard can be put into service by us and later sold on when the market improves. Our large physical portfolio and robust freight management systems provide a low-risk pool for tonnage, which is why we are the charterer of choice for risk-savvy counterparties. Extending this expertise into taking on distressed deliveries is straightforward and offers an optimal solution to current market challenges.”
Graig has active ship management divisions in Shanghai and Cardiff and has unrivalled experience working with Chinese shipyards and leasing companies. It has built for its own account or advised on and supervised over 120 ships in Chinese yards and currently manages a number of vessels built in China for different investors. GMI is one of the largest freight trading groups in the world and consistently provides an outstanding risk-adjusted return to its institutional shareholders.
The Graig Group is a broad-based international shipping services, ship owning, and offshore group delivering technical ship management and commercial ship management, newbuilding supervision, offshore support services, expert consultancy, dry-dock management, ship inspections, lay-up services, ship design, ship owning joint ventures and ship finance to global clients who appreciate personal service.
Graig has been building, managing and owning ships since 1919. Today it provides technical and commercial management and crewing for a mixed fleet of vessels on behalf of a number of owners and banks and has supervised over 120 newbuildings for itself and major shipowners. Graig provides technical consultancy and management support services to two major banks with a financed fleet of over 100 vessels and also to a number of flag states. It develops innovative designs such as the Diamond bulk carriers and the Marlin fuel efficient container ships. It can source yards and finance for all vessel types and provide newbuilding supervision and follow up with in service management.
Graig employs a global maritime workforce drawn from the UK, China, the Philippines, Vietnam, India and Russia and has offices in Cardiff, London, Oslo Shanghai and Hong Kong. Graig Group staff bridge the gap between sea and shore, between east and west to bring the best in innovation, service and partnership to the global shipping industry. www.graig.com
The Global Maritime Investments Group is one of the largest privately-owned freight trading groups in the world in terms of both size of fleet operated and turnover, typically operating 60 to 80 dry bulk vessels. GMI is financed by major institutional shareholders.
GMI employs around 30 professionals based in
Athens, Cayman Islands, Cyprus, London, Monaco and with expertise in physical freight trading and chartering, freight futures hedging and trading, fund management and commodity and shipping finance. www.gmilimited.com Singapore
For further information contact:
+44 2920 440 200
+44 207 842 4990