Shipping confidence levels rise to 2015 high

Shipping confidence levels rise to 2015 high

Overall confidence levels in the shipping industry rose in the three months ended August 2015 to their highest level this year, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. Respondents to the survey were concerned predominantly about low freight rates and overtonnaging, with continuing doubts also expressed about private equity funding.

In August 2015, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1 (low) to 10 (high). This compares to the 5.3 recorded in May 2015, which equalled the lowest figure recorded in the life of the survey, launched in May 2008 with a confidence rating of 6.8.

All main categories of respondent recorded an increase in confidence this time, most notably charterers (up from 4.2 to 6.5) and owners (up from 5.1 to 5.8). The confidence of brokers, meanwhile, was up from 4.8 to 5.2, and that of managers from 6.1 to 6.4.

Geographically, confidence was up in Asia from 4.9 to 5.8, in Europe from 5.3 to 5.9, and in North America from 6.0 to 6.3.

While some respondents were confident that the shipping markets would improve in line with economic developments, others were more cautious. One said, “The shipping markets have been over-stocked, and there has been far too much interest from non-traditional shipping sources with no real clue how these intricate markets work. Once built, the ships are there! The low oil cost means the drive for alternative fuels and cheaper propulsion is not being followed as diligently as one might have expected.”

A number of respondents echoed the concern about the potentially harmful effect of the entry into the market of non-traditional shipping sources, while there was the usual level of concern about too many ships and too little scrapping. Increased regulation was another recurring topic, with one respondent complaining, “Regulations are going to kill us!”

Another respondent emphasised, “Current market conditions realistically reflect tonnage oversupply in all sectors. Until this corrects itself, global trade patterns will skew supply over demand. Shipping decisions are very often made on sentiment, but current confidence cannot be based on this.” Another still said, “Expect a static trend for the next few years. It might require a major conflagration to kick-start the industry. That may sound unpleasant, but without it we are in for a lengthy stay in the doldrums.”

“Everything seems to be operating on the two-steps-forward-and-one-back principle, alternating with the one-step-forward and two-back principle!” said one respondent, while another cautioned, “Today’s shipping market is really competitive and we need to be more careful in choosing good and reputable principals.”

The likelihood of respondents making a major investment or significant development over the next 12 months was up on the previous survey, on a scale of 1 to 10, from 5.0 to 5.3, equalling the highest figure over the past 12 months. All main categories of respondent were more confident in this regard than they were three months ago, most notably charterers (up from 4.5 to 6.1).

One respondent noted, “Although we look for a stable long-term charter, it is unlikely that charterers could commit themselves to a term longer than three years. We are trying to decrease our exposure to shipping assets.” Another remarked, “There is concern about over-investment in tonnage in the wet trades by private equity houses, which has the potential to create a significant drop in rates and a further long run of below-opex returns for owners.”

The number of respondents who expected finance costs to increase over the next 12 months was up by eight percentage points, from 40% to 48%. The shift in sentiment in this regard was most notable in the case of owners (up from 35% to 53%) and charterers (up from 33% to 50%).

One respondent said, “The global economic slowdown is a major cause for concern, especially in developing countries.”

Competition, demand trends and finance costs featured as the top three factors cited by respondents as those likely to influence performance most significantly over the coming 12 months. The numbers for competition were up 5 percentage points on last time to 25%. There was a one percentage-point drop (to 23%) in the numbers citing demand trends in this regard, and an increase of 4 percentage points (to 18%) for finance costs. Operating costs, unchanged at 11 %, featured in fourth place, ahead of tonnage supply, down 8 percentage points to 7%. Fuel costs, crew supply, regulation and port congestion occupied the remaining places.

One respondent said, “Many small competitors are entering the market without observing the necessary business ethics.”

There was a fall in the number of respondents anticipating higher freight rates in the tanker and container ship sectors, but expectations of improved rates in the dry bulk trades were up on the figures for May 2015. There was a positive overall net sentiment for all three tonnage categories: +12 for tankers, +21 for dry bulk, and +3 for container ships.

One respondent said, “We expect the tanker market to remain on a steady path over the next 12 months.” Respondents meanwhile expressed “significant concerns about continued oversupply in the dry bulk sector,” while elsewhere it was noted, “Less ordering in the container sector, as a result of mixed/weak results will help to balance supply/demand going forward.”

Richard Greiner, Moore Stephens Partner, Shipping Industry Group says: “It is always encouraging to see a graph moving in the right direction. Perversely, the main reason for the improved level of confidence revealed by our latest survey may be the same as that which saw the industry’s perceived fortunes equalling a seven-year low in May of this year. Volatility works both ways.

“One respondent highlighted a perceived trend towards the so-called bureaucratisation of shipping, with smaller players losing out to their bigger competitors. Few would argue that there has ever been a tougher time for the smaller operator than in today’s industry. Yet such businesses can, and do, survive. To do so, they need to identify a niche role in the market, one in which they can add value and provide a level of service superior to that offered by their competitors. Moreover, in common with even the biggest players, they need a sound business plan.

“Another observation concerned the way in which some traditional trades are in danger of disappearing as the EU increasingly becomes a destination for imports from the Far East and India, rather than a producer of goods. This is not a new phenomenon, but it does underline how important it is for shipping businesses to keep pace with and adapt to change, or even anticipate it where possible. Information, and the ability to disseminate it, together with the timely identification of risk, has never been more important.

“The respondents to our survey are asked to comment on their industry expectations over the coming 12 months. Many of them, however, are also interested in the longer-term view, and the portents here are generally encouraging.

“Firstly, world population is growing, and has been since the end of the Black Death. At the end of 1970, it stood at 3.7 billion. The United Nations predicts that the global population will reach between 8.3 billion and 10.9 billion by 2050. This creates and sustains demand for shipping services, and that is good news for the industry.

“In 1970, according to the IMF, annual world GDP was growing at the rate of 3.7%. By 2000, the figure was 4.8%. Today, world GDP growth is put at 3.5%, but is predicted to climb to almost 4.0% by 2020. In short, the world economy is predicted to grow which, again, is good news for shipping.

“The World Trade Organisation forecasts that growth in the volume of world trade will rise from 2.8% in 2014 to 4.0% in 2016. Again, that is good news for shipping. World trade carried by sea is also on the increase and, despite the current difficult economic climate, the longer-term outlook for the industry remains positive as emerging economies continue to increase their requirements for seaborne goods and raw materials.

“So the long-term outlook for shipping offers encouragement to existing and new investors alike. Those who are not attracted by the longer-term prospects, meanwhile, will doubtless exit the industry, and in the process may help solve some of its problems.”
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.

Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime 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 626 offices of independent member firms in 103 countries, employing 26,290 people and generating revenues in 2014 of $2.7 billion. www.moorestephens.co.uk

For more information:
Richard Greiner
Moore Stephens LLP
Tel: +44 (0)20 7334 9191
richard.greiner@moorestephens.com

RINA launches new services for yacht sector

Italy-based classification society RINA has launched a series of new services and standards aimed at helping the growing global yacht industry to grow efficiencies and reduce its environmental footprint.

The five new services being rolled out in the last quarter of 2015 are a Global Compliance certification for boats to show they meet both US and EU standards, a set of courses and certification for Marina Managers, Electromagnetic Interference & Hazard Evaluation, a new class notation for yachts that measures the environmental impact of the whole life cycle of the yachts and new rules for a more extensive use of glass on the hull and superstructure.

Paolo Moretti, General Manager Marine, RINA Services, says, “The global yacht industry is growing strongly and is very diverse. These new services are a demonstration of our intention to provide useful services and standards to every sector of the industry, wherever they are.”

GLOBAL COMPLIANCE certification

RINA is the first European class society with surveyors qualified to carry out NMMA inspection for boats built in Europe or other parts of the world which are to be sold or used in the USA. This will be grouped with CE compliance so boats can have a new RINA certification called GLOBAL COMPLIANCE. Italian inflatable boat builder Zar Formenti and the Italian Sea Group are the two first companies to benefit from this unified dual certification. Recognising the high added value of this service, many other companies are now going through the NMMA/GLOBAL COMPLIANCE certification process.

Use of glass

RINA is developing a new standard for dimensioning and designing glass to be used on pleasure craft based on alternative design concepts. The RINA standards are currently in the experimental phase and are intended to retain the safety provided by current ISO standards while opening the way for designers and builders to use glass in more extensive and innovative ways in yachts of all sizes.

The regulations will do away with the need to test full size mock-ups, which are very costly to produce and require a lot of preparation time. The formulas to be applied take into account the latest construction techniques and materials used in the industry without having to resort to costly destructive tests.

Electromagnetic Hazard Evaluation

Yacht owners are becoming more and more aware of environmental issues and they also want to be protected from electromagnetic emissions. Electromagnetic emissions are invisible but could impair the performance of electronic systems installed on board and affect the health of people who are subject to them for a long time. For this reason RINA will now deliver a set of services aimed at controlling and measuring the level of this type of emission.

RINA can intervene at the design phase with dedicated software which can assess possible interferences between equipment, find the optimal cable routing and mitigate total emission level. It is also possible to measure the electromagnetic emission level on board after construction. This sets a new quality standard for the shipyard and gives recognized evidence to the owner that these levels are below the ones stated by EU regulation 1999/519/CE.

Tankoa’s MY Suerte was the first yacht to be tested as a pilot project to assess its compliance with European standards.

Environmental footprint

RINA is developing a new class notation for yachts that measures the environmental impact of the whole life cycle of the yachts. It will provide a benchmark to measure the yacht’s environmental footprint against key indicators such as climate change (Global Warming Potential) and water acidification (Acidification Potential).

Life Cycle Assessment (LCA) analysis will be used to calculate impacts for the entire life cycle from raw material extraction to the final disposal of the yacht, evaluating all inputs including power consumption and materials and all outputs including emissions to the air, water and ground and waste production. RINA’s LCA notation verifies not only the environmental impacts, but also the social aspects in the shipyard and manufacturing process, such as safety at work, equal opportunities and child labour absence.

Improving Marina Management

RINA has built on its MaRINA EXCELLENCE certification scheme which rates the value of a marina in terms of offered services, security level and environmental protection. The scheme has now been extended by developing a certification programme and a series of courses for marina managers and senior staff. The growth in marinas and tourist harbours has led to the development of a new profession of managing marinas. As a leader in the process, product and personnel certification sector, RINA has developed a certification scheme for professionals in the tourist harbour sector, according to standards covered by ACCREDIA accreditation, and in conformity to the UNI CEI EN ISO/IEC 17024 standard. The MARINA MANAGER course leads to the certification of professionals tasked with managing tourist harbours. It helps ensure marinas are correctly run and helps marinas distinguish themselves from less professional or unqualified competitors.

New UK Yachting Manager

In a separate move intended to improve service to yacht builders RINA has strengthened its team in the UK and appointed a new Yachting Manager, Lewis Northcott. He knows the UK market well as during the last seven years Lewis has supervised over 120 newbuild superyacht projects in UK shipyards as RINA’s survey team leader.

RINA Services is the RINA group company which delivers ship classification, and testing, inspection and certification services. RINA is a multi-national group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards. www.rina.org

           
Contacts:

Giulia Faravelli

Head of Media & Internal Communication RINA

+39 010 5385505

giulia.faravelli@rina.org

Victoria Silvestri

Media Relations RINA

+39 010 5385555

victoria.silvestri@rina.org

Third award nomination for Liberian Registry Eco-Upgrade Programme

THE Liberian Registry’s Eco-Upgrade Finance Programme has been selected as a finalist in the Asia Lloyd’s List Awards in the Innovation - Systems, Business Processes and Models category. This is the third award for which the Liberian programme has been nominated in recent weeks, following its confirmation as a finalist in the Lloyd’s List 2015 Global Innovation Awards and the Ship Efficiency awards.

Liberia’s Eco-Upgrade Finance Programme is designed to help reduce global carbon emissions and to enhance fleet efficiency and competitiveness. It offers a complete energy-saving solution for ships on a global basis with an add-on specifically crafted for Emissions Control Areas (ECAs). The global programme includes an optimal mix of fuel efficiency retrofit solutions for each target vessel, based on its trading pattern, age, size, speed, and consumption. For ships trading within ECA zones, the programme can include the installation of exhaust scrubber systems or the conversion of engines to LNG dual-fuel, to comply with emissions requirements.

Scott Bergeron, chief executive officer of the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the registry, and a principal of global marine service provider, the YCF Group, says, “It is extremely gratifying to see that the Liberian Registry is being recognised for its efforts to help shipowners improve and maintain their green credentials.”

Meanwhile, US-based consultancy EfficientShip Finance (ESF), a partner with the Liberian Registry in the Eco-Upgrade Finance Programme, has confirmed that it is to act as project coordinator for a Carbon War Room (CWR) grant of up to $200,000 to cover the cost of installing continuous performance-monitoring equipment / software to a shipowner or charterer willing to retrofit a bundle of proven technologies. The goal of CWR’s grant is to verify the benefits of the multi-technology retrofit and provide a proof of concept for the entire maritime industry.

For additional information about the CWR grant or the Liberian Registry’s program, please contact Christian Mollitor, LISCR Vice President and Eco-Upgrade Finance Project Manager, at cmollitor@liscr.com or 703.251.2434.

The Liberian Registry is one of the world’s largest and most active shipping registers and has long been considered the world’s most technologically advanced maritime administration. It has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive service to owners. It is a subsidiary operation of the YCF Group which, through its complementary entities, has developed an exhaustive range of regulatory compliance and training services, providing shipowners with comprehensive flag administration options on a global scale.

www.liscr.com

RINA group adds engineering expertise

D’Appolonia, the independent engineering consulting company of RINA Group, headquartered in Italy, has strengthened its expertise in the marine offshore oil and gas sector by acquiring a majority stake in Fano-based SeaTech Srl.

 

SeaTech provides analysis and design services, manages projects for offshore pipelines, subsea systems and structures and met-ocean monitoring systems, and also provides engineering supervision services on site.

 

Roberto Carpaneto, CEO, D’Appolonia, says, “Having SeaTech as part of the group helps us to consolidate our engineering expertise in the oil & gas sector, especially in the growth area of subsea systems and deep-water exploration."

 

SeaTech provides specialised engineering services to main contractors and major engineering companies operating in the oil and gas industry.  Founded in 2000, today SeaTech has a turnover of Euro 2.8m. SeaTech will be 68 per cent owned by D’Appolonia with the remaining shares held by the founders. Examples of its work include: in 2000 SeaTech’s specialists worked for Saipem in the Blues Stream project that at the time held the record for installation water depth (2150 m), and was the first pipeline protected by polypropylene anticorrosion coating. In 2003 SeaTech performed its first design of subsea structures (FLETs and PLETs) on behalf of Saibos, for the Kizomba B project. From 2004 to 2012, SeaTech was involved in the Kashagan project that was at that time the largest reservoir discovered in the world and had particular technical peculiarities due to the hostile environment, both onshore and offshore. In 2013 SeaTech carried out the FEED of Bahr Essalam phase 2 project for Tecnomare. In 2015 Seatech delivered to Edison the met-marine and structural monitoring system for the Vega platform.

 

www.seatech.it/

 

D’Appolonia S.p.A provides integrated engineering services to the public and private markets in the areas of the environment, oil and gas, infrastructure and transport, electronics and telecommunications. D’Appolonia is part of the RINA Group, a leading international classification, verification and certification provider.

www.dappolonia.it

 

RINA is a multi-national group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards.      

           
Contacts:

Giulia Faravelli

Head of Media & Internal Communication RINA

+39 010 5385505

giulia.faravelli@rina.org

 

Victoria Silvestri

Media Relations RINA

+39 010 5385555

victoria.silvestri@rina.org

 

Chemical tanker owner fails in claim against agent for low-sulphur fuel costs

 

 

International Transport Intermediaries Club (ITIC) has reported a case in which the owner of a chemical tanker made an unsuccessful claim against a port agent for costs incurred in taking on additional low-sulphur fuel at a European port.   The port agent was appointed by the owners of the chemical tanker to attend the vessel in port. As the agent did not have an office at that particular port, it engaged its usual sub-agent to assist locally.   Prior to the vessel’s arrival, the master sent an email to the agent asking whether there were any restrictions on the type of fuel that could be used while the vessel was both alongside and at the port’s outer roads. The agent passed this request to its sub-agent, who in turn made inquiries of the local harbour-master, who was responsible for enforcing the EU directive relating to the use of low-sulphur fuel.   The harbour-master confirmed that the vessel was required to burn low-sulphur marine gas oil from the time of its arrival at the port’s outer roads. This advice was passed to the master, who duly followed these instructions.   As the vessel waited at anchorage it became clear to the master that he would not have sufficient low-sulphur fuel on board to complete operations and, as the vessel was unable to take on additional low-sulphur fuel at that port, the owners decided to divert to another port to replenish their supply. The vessel thereafter returned to its intended discharge port and operations proceeded without further disruption.   The agent subsequently received a claim from the owners of the vessel for approximately $150,000. The owners alleged that the information provided to them by their agent was incorrect, and that the local regulations only required vessels to burn low-sulphur fuel while alongside the berth, and not at anchorage. Because low-sulphur fuel was more expensive, the owners claimed for the additional costs incurred in burning this fuel when, they claimed, this was not necessary. They also claimed for the costs of diverting the vessel to take on the additional low-sulphur fuel.   It was established that the sub-agent had simply passed on the instructions received from the harbour-master, and that the agent had in turn passed this on, word for word, to the owners. Lawyers mounted a vigorous defence to the claim, which was subsequently withdrawn. ITIC covered the legal  costs of defending the agent.

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:                             

Charlotte Kirk                                              

ITIC                                                               

Tel. +44 (0)20 7338 0150                          

Fax. +44 (0)20 7338 0151                         

charlotte.kirk@thomasmiller.com           

Bureau Veritas classes first ethane-powered ships

Leading classification society Bureau Veritas is classing the first ethane-powered ship. JS Ineos Insight is the first of a series of eight 27,500 cu m multi-gas Dragon-class vessels being built at Sinopacific, China, for Denmark’s Evergas. The vessel was named on July 14^th and is configured for transport of ethane, LPG or LNG. It has options for ethane, LNG and conventional diesel power.

 

Martial Claudepierre, Business Development Manager, Bureau Veritas says, “The ability to burn ethane as well as LNG to power these unique vessels is a major step forward in the use of clean fuels. It means the vessels can use cargo gas during transits to provide a clean and clear commercial and environmental advantage. We have worked with Evergas and the Danish Maritime Authority to verify and ensure that the use of ethane is at least as safe as required by the IGC and will not impair the engine compliance with MARPOL Annex VI.” 

 

The Dragon vessels were originally designed with a dual-fuel LNG/diesel power utilising two 1,000 cu m LNG tanks on deck powering two Wärtsilä 6L20 DF main engines with a total of 2,112 kW power and two shaft generators with total 3.600 kW power. The ability to also burn ethane was added to allow use of the cargo gas as the vessels are destined initially for transport of ethane from the US to the UK Ineos refineries.

 

Says Claudepierre, “Using ethane required extra engine room ventilation and additional gas detection, plus modifications to the main engines including a lower compression ratio, different turbocharger nozzles and de-rating of the engine to cope with the lower knocking resistance of ethane. But the gains in not carrying an additional fuel and in environmental performance from being able to burn clean fuel throughout the voyage are significant.”

 

 

Evergas is a Danish operating company established in 1883, wholly owned by Greenship Gas and JACCAR Holdings. It is a world leader in seaborne transportation of petrochemical gas with a focus on ethane and ethylene, operating a modern fleet of highly advanced petrochemical gas carriers. It has a large new-building programme of ethylene, ethane and LNG multi-gas carriers. http://evergas.net/

 

 

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has more than 66,000 employees in around 1,400 offices and laboratories located all across the globe. 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. Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index.

Compartment A, ISIN code FR 0006174348, stock symbol: BVI.

Corporate website www.bureauveritas.com/marine-and-offshore

Marine client portal www.veristar.com  

 

For more information:

Martial Claudepierre

Product Manager LNG

Bureau Veritas

+33 (0)1 55 24 73 43

martial.claudepierre@bureauveritas.com

 

 

Philippe Boisson

Marine & Offshore Communication Director

Bureau Veritas

+33 (0)1 55 24 71 98 

philippe.boisson@bureauveritas.com

RINA wins Azerbaijan pipeline welding inspection contract

Italy’s RINA Services has been awarded a major contract to inspect the weld testing for the 487 km Baku-Tbilisi pipeline. The 48 inch pipeline is being built by the SAIPEM - AZFEN consortium on behalf of BP and it is part of the Tanap and TAP infrastructural project that will make it possible for gas from Azerbaijan to be supplied directly to Italy and the European gas pipeline system.

RINA’s Azerbaijan-based company has been chosen by SAIPEM-AZFEN as the third party body that is to check the welding testing on the Azerbaijan and Georgian parts of the gas pipeline over the next thirty months. The contract covers 424 km in Azerbaijan and 63 km in Georgia with installation of associated block valves, pigging facilities and tie-ins.

Two teams of technicians from RINA will be based in Azerbaijan and Georgia and will inspect Visual (VT), Radiography (RT), and/or Automatic and Manual Ultrasonic (AUT) and Magnetic Particle Tests (MT) covering all welding on the network.

RINA opened an office in Azerbaijan in 2014 and in Georgia this year to deliver a wide range of testing and certification services to these fast-growing markets.

RINA Services certifies around 20,000 welders and 1,100 welding procedures every year on behalf of major global engineering and construction companies.

RINA Services is the RINA group company which delivers ship classification, and testing, inspection and certification services. RINA is a multi-national group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards. www.rina.org

           
Contacts:

Giulia Faravelli

Head of Media & Internal Communication RINA

+39 010 5385505

giulia.faravelli@rina.org

Victoria Silvestri

Media Relations RINA

+39 010 5385555

victoria.silvestri@rina.org

Young professionals identify competitiveness as key to London shipping’s future

 

A NEW survey by The Shipping Professional Network in London (SPNL) has identified key ways in which London can remain competitive as a relevant maritime global centre, and revealed a broad consensus that London’s credentials in this respect would be strengthened by the UK remaining part of the EU.

 

The survey, organised in conjunction with international accountant and shipping adviser Moore Stephens, canvassed the opinions of young professionals working primarily in the shipowning, shipbroking, ship management, chartering, advisory and associated industries in London. Respondents were asked for their views of the current state of the market, and how they believed it would perform over the next 12 months.

 

Respondents recorded an overall confidence level of 6.2, out of a maximum possible score of 10, in the markets in which they operate. This compares with the rating of 6.4 recorded when the survey was run previously, in September 2013.  

 

On a scale of 1 to 10, respondents expressed an overall expectation of 5.8 when asked to gauge the likelihood of their business making a major investment or significant development over the next 12 months. This compares with the 6.4 recorded two years ago.

 

Demand trends, competition, and the cost and availability of finance were identified by respondents as the three leading factors most likely to affect their business performance over the next 12 months, as they were in 2013 too.

 

48% of respondents expected finance costs to increase over the coming year, compared to the 44% who thought likewise in 2013.

 

Respondents were also asked for their opinion of likely rate movements in the tanker, dry bulk and container ship markets over the course of the next year. 35% overall thought that tanker rates were likely to increase, as against 50% in the 2013 survey. In the dry bulk sector, 35% of respondents overall expected rates to increase, down on the 45% recorded in 2013. 29% of respondents overall expected rates to rise during the next 12 months in the container ship market, compared to 31% in 2013.

 

Respondents identified competitiveness, taxation and the ability to adapt to a fast-changing environment as the three leading challenges for London to remain a relevant global maritime centre, as they were in the 2013 survey. Some urged London to establish stronger partnerships with Asian maritime hubs such as Singapore and Hong Kong, and to use this as a springboard to the rest of Asia. At the same time, London was cautioned not to let its best, most experienced people migrate to Asian maritime centres, and to be aware of the effect on its competiveness of operating and employment costs. London was acknowledged as one of the few European centres not in decline.

 

The cost of office space, staff and services was identified by a number of respondents as the biggest challenge to London remaining competitive. It was also acknowledged that more needs to be done in respect of stimulating shipping investment and providing ship finance, as well as supporting smaller start-ups. Improvements in transport infrastructure were also deemed to be vital to maintaining London’s competitiveness.

 

No fewer than 80% of respondents felt that it was in the best interests of London’s standing as a global centre for maritime commerce for the UK to remain a member of the European Union.

 

Claudio Chistè, chairman of SPNL, says, “The past two years have been extremely difficult for the international shipping industry, with world economies generally struggling to climb out of recession. But shipping is a resilient and robust industry which has a history of finding solutions to problems. Today, those solutions are provided by a combination of vastly experienced professionals and by new, young talent coming into the industry.

 

“The level of confidence expressed by young shipping professionals working in the London market has declined over the past two years, since SPNL first canvassed their views. This is disappointing, although not surprising given the events of the past two years. But it is still a result which would please a lot of other industries.

 

“Shipping faces serious challenges on a wide variety of fronts – from overcapacity, competitive pressure and environmental concerns, to political unrest and strict regulatory oversight. The industry has responded well, with its traditional blend of practicality and entrepreneurialism, and will doubtless continue to do so. This is one of the things which continues to attract talented young professionals into the industry.

 

“There are reasons to be cheerful. The net sentiment gleaned from our survey in terms of the prospects for rate improvements over the next 12 months is positive in the three main tonnage categories. Over 45% of the young professionals who responded rated the prospect of their business making a major investment over the next 12 months at 7 out of 10, or higher. That is not an indicator of a moribund industry; rather it is a vote of confidence.

 

“Shipping needs confident, young professionals willing to learn their trade at the ‘coal-face’. The question remains of where the coal-face should be located; the answer is that the industry needs more than one coal-face! It needs a number, in strategic parts of the world, with the ability to act both independently and in concert with each other.

 

“London has always been a leading centre of maritime commerce and expertise. In recent years, with the growth in technological innovation and the determination of other regional centres of expertise to expand their remit, London has had to face challenges to its pre-eminence as a global maritime centre, and our survey has helped to identify what are the most important of those challenges.

 

“Costs, on a number of different levels, must be addressed, and a global view taken at all times. In identifying these issues, SPNL hopes to help the UK address them. London’s maritime community needs a group of young professionals, and those professionals testify by their very presence in London that they want to be here. But they need to be in a London which is properly connected to the rest of the world, able to compete on a global stage and, moreover, in a London which is part of the EU.”

 

The Shipping Professional Network in London (SPNL) was founded in 2007 as a meeting place for young shipping professionals in London. Its vision is to promote and enhance London as a maritime financial centre, and to be the 'voice' of young shipping professionals in London by engaging with the broader shipping community

 

Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime 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 626 offices of independent member firms in 103 countries, employing 26,290 people and generating revenues in 2014 of $2.7 billion.

 

For more information:     

Claudio Chistè

Chairman of SPNL

E: info@shippingnetwork.co.uk

W: www.spnl.co.uk

 

 

Bureau Veritas acquires HydrOcean, an innovative company in the maritime industry

Bureau Veritas has finalized the acquisition of HydrOcean, a French engineering company specialized in hydrodynamic digital simulation for the maritime industry.

                                                       

Established in 2007, HydrOcean provides design support for the construction of ships, offshore structures, racing yachts and marine energy systems. Its focus is on assessing and optimizing hydrodynamic performance. The company has co-developed advanced digital simulation tools in partnership with Ecole Centrale Nantes’ fluid dynamics laboratory.

HydrOcean’s services and simulation tools help reduce the risks, time and costs associated with ship design. It operates in a fast growing market driven by sustained demand from the shipping, offshore and yachting industries, and the emerging marine renewable energy sector.

Based in Nantes, France, HydrOcean employs 18 engineers and had revenue of EUR 2.7 million in 2014.

“The acquisition of HydrOcean enables Bureau Veritas to integrate an outstanding team of experts and highly innovative entrepreneurs. The Group is increasingly developing solutions combining its core testing, inspection and certification services with new technologies. HydrOcean fits perfectly into this strategy thanks to its simulation tools and its technical expertise. Its services will complement those offered by the Marine & Offshore business, especially in reducing ship fuel consumption” commented Didier Michaud-Daniel, CEO of Bureau Veritas.

“We have already achieved successful projects with Bureau Veritas, under the technical and commercial cooperation agreement we have had for over a year. Today, we are looking forward to becoming part of one of the world’s leading classification societies and expanding our business into the international market” said Erwan Jacquin, President and founder of HydrOcean.

About Bureau Veritas

Bureau Veritas is a world-leading provider in testing, inspection and certification. Created in 1828, the Group has more than 66,500 employees in around 1,400 offices and laboratories located all across the world. 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.

Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index.

Compartment A, ISIN code FR 0006174348, stock symbol: BVI.
For more information, visit www.bureauveritas.com

Contacts
Analysts/Investors: Claire Plais: +33 (0)1 55 24 76 09 Mark Reinhard: +33 (0)1 55 24 77 80 finance.investors@bureauveritas.com	Press: Véronique Gielec: +33 (0)1 55 24 76 01 veronique.gielec@bureauveritas.com

MatthewsDaniel launches Approved Vessel Archive

Specialist marine risk assessment company MatthewsDaniel has launched an enhanced Approved Vessel Archive (AVA) service for offshore support vessels and their operators. The AVA provides vessel owners with an accessible certificate that can be presented to prospective customers, serving as evidence that their vessel is held to a standard acceptable by a leading marine warranty survey company. 

Kevin Jarman, CEO, MatthewsDaniel, says, “For operators, the MatthewsDaniel Approved Vessel Archive provides a system for pre-emptively managing their fleet’s suitability status for a wide range of offshore activities and also helps provide a competitive edge when tendering for contracts. For charterers it provides a quick and reliable method of checking the suitability and status of vessels for particular tasks.”

MatthewsDaniel is now able to offer an expanded service portfolio to North Sea operators, which incorporates a full range of vessel surveys alongside marine warranty activities.  Surveys for vessel suitability, on hire/off hire, general condition and damage, together with CMID inspections are all available to North Sea sector clients, many of whom are already relying on MatthewsDaniel’s expertise in wet tows, dry transports and location approvals. 

MatthewsDaniel is part of the Bureau Veritas Group, a world leader in conformity assessment and certification services. Headquartered in London, with offices in Europe, the Middle East, Asia and the Americas, MatthewsDaniel is widely recognised for its expertise in marine warranty surveys and engineering reviews, risk assessment and valuation services and specialist loss adjusting, focussing on the energy and marine sectors. It also operates a dedicated weather forecasting, monitoring and forensic meteorology service.

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has more than 66,000 employees in around 1,400 offices and laboratories located all across the globe. 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. Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index.

Compartment A, ISIN code FR 0006174348, stock symbol: BVI.

Corporate website www.bureauveritas.com/marine-and-offshore

Marine client portal www.veristar.com  

For more information:

Simon Ward

MatthewsDaniel

+44 207 929 1300

simonward@matdan.com

CrewSEACURE launches MLC assistance card to help seafarers in need

Specialist marine insurance intermediary Seacurus has launched a Seafarer Assistance Card scheme to enable seafarers to check for cover and provide timely notification of claims under the Maritime Labour Convention (MLC 2006). The cards are personal to the seafarer and are issued by the crewing company when seafarers take up their first position at sea.

 

Seacurus managing director Thomas Brown says, “Under the soon-to-be implemented MLC 2006 amendments, each MLC-compliant vessel will be required to carry a certificate of financial responsibility which provides seafarers with details of the financial protection which the owners have put in place, as well as the details of who to call in the event of a claim. 

 

“The same is not true for crewing companies which, as policy holders, keep the master policy in their office, and evidence of cover is not readily available to the seafarers it serves to protect. In the interests of transparency, we felt it important that seafarers had their own evidence of cover, coupled with user-friendly direct access to the underlying security. 

 

“Time is often of the essence. This is where the Seafarer Assistance Cards perform a vital function. They provide the seafarer with access to the CrewSEACURE web portal to check for cover and help them provide timely notification of claims.”

 

Seacurus manages the financial security requirements for an ever-increasing number of seafarer recruitment & placement services and crew management companies. Thomas Brown says, “We are seeing a number of referrals from flag state inspectors when crewing companies apply for their MLC approvals.  Leading the way with respect to MLC compliance for crew companies are the UK MCA and Transport Canada, both flag state administrations which require crewing companies operating within their jurisdictions to demonstrate that they have in place a system of financial security to comply with MLC2006 Reg. 1.4 which safeguards the financial interests of the seafarers that such companies place at sea.

 

“Seacurus has evolved its CrewSEACURE product range and developed variant wordings to meet these requirements. If MLC 2006 is to fulfil its promise as a seafarers’ bill of rights, it needs the support of products and services which deliver on the intent of the convention.”

 

Full details of the newly developed web portal can be found at www.crewseacure.com

 

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

 

 

Formed in 2007, Barbican Insurance Group underwrites business predominantly through its Syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market and number of service companies including, Barbican Underwriting Limited, Castel Underwriting Agencies Limited, Professional Indemnity Protect Limited and Seacurus Limited.

Barbican Syndicates at Lloyd’s have a stamp capacity of £260m for the 2015 year of account and underwrite marine, aviation and transport re/insurance, property re/insurance, media and contingency, energy and specialty lines including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity. www.barbicaninsurance.com

 

 

 

For more information: Thomas Brown Seacurus Limited Tel: +44 191 4690859 email: tbrown@seacurus.com