Liberia’s electronic oil record book scoops up two more innovation awards

The innovative electronic oil record book (ε-ORB) produced by LISCR, the US-based manager of the Liberian Registry, in co-operation with Cyprus-based maritime technology company, Prevention at Sea, has received two more prestigious industry awards.

At the Lloyd’s List Asia Pacific Awards ceremony in Singapore on 26 October, the ε-ORB won the Lloyd’s List Intelligence Innovation Award, organized in association with Lloyd’s List Intelligence. This award seeks to set a benchmark for excellence while rewarding boundary-challenging innovative ideas and concepts.

Meanwhile, the ε-ORB secured the Innovation Marine Environment Protection Award from the North American Marine Environment Protection Association (NAMEPA) at its 10th Anniversary celebrations in New York, which also took place on October 26. NAMEPA’s mission is to preserve the marine environment by promoting sustainable marine industry best practice.

Earlier this year, the ε-ORB won the 2017 Lloyd’s List North America Maritime Services Award.

The ε-ORB is a Lloyd’s Register-certified maritime software application designed to replace the traditional paper oil record book and to establish software transparency, credibility and traceability. Following highly productive and encouraging meetings with leading international shipping organisations, including the IMO’s Marine Environment Protection Committee, US Coast Guard, AMSA, Paris MoU, EMSA, Intertanko, Intercargo, OCIMF and numerous port and flag states, the Liberian Registry is pushing ahead with moves to expedite the smooth introduction of ε-ORB throughout the fleet registered under its flag.

LISCR CEO Scott Bergeron says, “Daily paper record-keeping is a heavy administrative burden that leads to an inefficient use of time for engineers. Liberia is well ahead of the game in producing user-friendly technology that curtails man-hours, reduces overtime costs and eliminates vague entries and mistakes. We are grateful that our innovative leadership has been recognised by these three leading industry awards.”

The Liberian Registry is 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 and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment.

www.liscr.com

Moore Stephens says ship operating costs are set to increase for 2017 and 2018

Vessel operating costs are expected to rise in both 2017 and 2018, according to the latest survey by international account and shipping consultant Moore Stephens. Repairs & maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years.

The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are likely to rise by 2.1% in 2017 and by 2.4% in 2018.

The cost of repairs & maintenance is expected to increase by 2.0% in both 2017 and 2018, while expenditure on spares is predicted to rise by 2.0% in 2017 and by 1.9% in 2018. Drydocking expenditure, meanwhile, is expected to increase by 1.7% and 1.8% in 2017 and 2018 respectively.

The survey revealed that the outlay on crew wages is expected to increase by 1.7% in each of the years under review, with other crew costs thought likely to go up by 1.6% in 2017 and 1.5% in 2018.

The increase in expenditure for lubricants is expected to be 1.6% in both 2017 and 2018. Meanwhile, projected increases in stores are 1.5% and 1.7% in the two years under review, while management fees are expected to rise by 0.7% and 1.0% in 2017 and 2018 respectively.

The cost of hull and machinery insurance is predicted to rise by 0.5% and 1.0% in 2017 and 2018 respectively, while for P&I insurance the projected increases are 0.7% and 1.1% respectively.

The predicted overall cost increases were highest in the offshore sector, where they averaged 4.8% and 3.8% respectively for 2017 and 2018. By way of contrast, predicted cost increases in the container ship sector were just 1.1% and 0.8% for the corresponding years.

Operating costs for bulk carriers, meanwhile, are expected to rise by 1.9% in 2017, and by 2.4% the following year, while the corresponding figures for tankers are 2.1% and 2.7%.

Respondents to the survey highlighted various areas of concern likely to result in increased operating costs over the next two years. Crew costs were high on the list, with one respondent noting, “Crew costs are 60% of our operating expenditure, and weigh heavily when there is high demand for – but a limited supply of – manpower and when employers are required to meet increasingly onerous requirements.” Another noted, “Crew and insurance related expenses are the two major factors in our operating expenses but, while we expect insurance costs to fall over the next two years, we anticipate that crew costs will remain the same.” Another still said, “Most shipping companies, but especially those operating tankers and chemical and gas carries, are facing the prospect of increases in costs through 2018 for hiring qualified crew.”

The increasing cost of regulatory compliance was referenced by a number of respondents, one of whom said, “New regulations are certainly going to have a major impact on our operating costs.” Elsewhere it was noted, “Retrofitting vessels with technology which has not been fully vetted for compliance with existing and new regulation can destroy cashflow.”

One respondent in the offshore sector, meanwhile, emphasised, “There is a constant trend in terms of charter hire, whereby earnings are gradually going down while expenses under different heads are following an upward trend.”

Another respondent commented, “We do not expect income to increase significantly over the next 12 months, which in turn will limit the available budget for operating expenses.” Other respondents, too, expressed doubts about factors which are likely to constrain their earning capacity at a time when operating costs are increasing. Areas of concern included such familiar items as continued tonnage overcapacity in some trades and the cost of finance.

One respondent said, “Excess capacity, and the amalgamation and acquisition of existing operators and assets, could lead to a market which is shared by a small number of operators.” Another complained, “Over-supply of tonnage, most notably that built in China, has caused a significant fall in charter hire.” Other, more general, comments, included, “Markets across the board will be nervous, with sharp ups and downs,” and: “Prospects look gloomy, with no clear horizon in sight.”

Respondents were asked to identify the three factors that would most affect operating costs over the next 12 months., Overall, 21% of respondents (similar to last year’s survey) identified finance costs as the most significant factor, followed by crew supply, which stood at 19% and displaced competition in second place. Competition itself was down from 19% to 15% and from second to equal third place, which it shared with the cost of new regulations, which was included in the survey for the first time. Demand trends and raw material costs, meanwhile, shared fourth place at 10%, with labour costs fifth at 9%, all significantly down on the figures in last year’s survey, which were respectively 17%, 11% and 13%.

Richard Greiner, Moore Stephens Partner, Shipping & Transport, says, “The predicted 2.1% and 2.4% increases in operating costs for 2017 and 2018 respectively compare to an average fall in actual operating costs in 2016 of 1.1% across all main ship types recorded in the recent Moore Stephens OpCost study.

“One year ago, expectations of operating cost increases in 2017 averaged 2.5%, so the fall now in that expectation to 2.1% must be regarded as good news. Predicted increases in operating expenditure are a matter of concern for any industry, and particularly one such as shipping in which a range of factors have conjoined in recent years to inhibit (and, in some cases, eradicate) profit margins. But shipping has seen a lot worse. If it does transpire that operating costs rise by 2.4% in 2018, for example, that will still be less than one-sixth of the actual operating cost increases absorbed by the industry ten years previously.

“It is significant that, for the first time, new regulations were included in the list of factors which respondents could cite as most likely to influence the level of operating costs over the next 12 months. It was even more significant, perhaps, that 15% of respondents did indeed identify the cost of regulatory compliance as a major consideration when weighing future operating cost increases. The Ballast Water Management convention, now with an extended implementation window, is still potentially the most expensive item on the menu, but by no means the only one. Tellingly, one respondent referred to new regulations which ‘most of the time are unclear and indefinite.’

“The fact that repairs & maintenance and spares emerged as the items with the largest projected cost increases in both 2017 and 2018 was perhaps unsurprising in that they are two items of expenditure on which owners and operators might conceivably have economised or delayed in previous years, and such economies cannot be sustained over longer periods without impacting safety.

“Elsewhere, there were some interesting predicted cost increases in the individual market sectors. The offshore industry, for example, is predicted to be facing increases of 3.5% in crew wages for 2018, compared to the 1.4% predicted for bulkers and the 0.7% for container ships. Indeed, the offshore sector is facing the biggest increases in operating costs in the next two years in every category of expenditure covered by the survey.

“Offshore is going to be a challenging sector for operators and investors alike for some time to come, and the survey reveals exactly why a year can be a long time in shipping. In last year’s Future Operating Costs report, the container ship sector led the way in terms of the highest predicted overall cost increases for 2016 and 2017, with the offshore sector returning the lowest figures. Now, the position is completely reversed, with container ships expected to have to bear increased costs in 2017 which are little more than one-fifth of those expected to be encountered by offshore operators.

“It was evident from the responses to our survey that the shipping sector is concerned about the conflation of higher operating costs and the potential reduction in revenue earning opportunities which it faces over the next two years. As one respondent succinctly observed: “The problem with shipping is not so much costs, but income.” There is certainly some truth in that. Shipping has gone through – and is still navigating – a prolonged downturn. It is a cyclical industry, but cycles imply movement both up and down, and there has not been enough of the former in recent years. The cyclical nature of the industry also increases volatility in the likes of charter rates and vessel values which may adversely affect earnings.

“There is however, evidence to support the view that an appetite still exists for ongoing investment from both traditional and external investors, supported by a number of recent indicators of positive sentiment. This is in an industry whose attractions currently include low prices and comparatively limited ordering of new tonnage. That is good news, because it is such investment that shipping will need if it is to meet the rising cost of operating in the industry.”

Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and transport & logistics 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 108 countries, employing 27,997 people and generating revenues in 2016 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

Liberia’s WayPoint takes client interface standards to new levels

Liberia has further strengthened its reputation as the world’s most technologically advanced and sophisticated ship register with a major upgrade of WayPoint, its state-of-the-art web-based client interface system.

When WayPoint was launched in late-2016, it provided the owners and operators of Liberian-flag ships with secure, real-time, user-friendly access to their fleet details and allowed them to apply for International Convention certification such as Civil Liability, Bunker Civil Liability, Wreck Convention and Ballast Water Management Convention certificates. Now, the effectiveness of WayPoint has been significantly expanded by the addition of a number of enhanced features.

WayPoint is on a different level to any other client interface system currently available to the users of ship registry services. Owners and operators are now better able to manage their fleet-wide regulatory compliance. WayPoint provides easy and intuitive access to information about vessels’ last Annual Safety Inspection data, when inspections are due for renewal, and indication of scheduled inspections. The range of certificates which can be viewed and obtained has been expanded to include those relating to the Maritime Labour Convention, including DMLC Parts 1 and 11, SMC, and ISSC, and documents of compliance (DOC). The facility also exists to transmit certificates and related information directly from the registry.

Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the Liberian Registry, says, “Liberia is way ahead of any other ship registry in the world in terms of its technological proficiency and efficiency. Now, it is further ahead still, with the launch of its upgraded WayPoint system.

“In today’s hi-tech world, ship owners and operators need instant access to a vast range of information, including their fleet details, their certificates, and their inspection schedules. WayPoint not only provides this access, but it is reinventing the way that shipowners will interact with their flag state and offering efficiencies that will facilitate regulatory compliance in meaningful ways. The end result is less focus on bureaucracy and tedious co-ordination, and greater emphasis on meeting regulatory objectives.

“Shipping is a round-the-clock business. It never sleeps, and neither should ship registers, which must be able to provide information whenever it is needed, wherever it is needed, at any time of the day or night. Liberia is ahead of the game in this respect, and the owners and operators of Liberian-flag ships are the beneficiaries, with guaranteed access to the information they need to keep their fleets moving safely and efficiently.”

The Liberian Registry is already working on a complete suite of further upgrades that will expand the portfolio of online services which Liberia is able to offer.

WayPoint is accessible to clients through https://waypoint.liscr.com. Clients of the registry may apply for user access via the WayPoint homepage.

The Liberian Registry is 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 and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment. www.liscr.com

allison.wilson@liscr.com

Liberian Registry launches cyber and ship security computer-based training programme

The Liberian Registry has launched a Cyber and Ship Security Computer-Based Training (CBT) programme that provides a comprehensive overview of cyber-security issues, including concepts such as malware, network security, identity theft, risk management, and other common threats to maritime security.

Jorgen Palmbak, Director of Maritime Security for the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the Liberian Registry, says, “Cyber-attacks have been identified as among the most serious emerging threats to the security of today’s shipping industry. Over 40% of crew members have reportedly sailed on a vessel that has become infected with a virus or malware - and only 1 in 8 crew members have received cyber-security training.

“In recent years, it has become apparent that maritime companies, ships, and ports are not adequately protected against what is clearly a rapidly evolving threat. Furthermore, IMO has issued a resolution giving shipowners and managers until 2021 to incorporate cyber-risk management into their ship safety plans. The Liberian Registry believes that there is an immediate need for both crew and shore-based staff to receive cyber security training as part of an overall security skill-set update and has accordingly taken a proactive approach to the issue.

“The CBT program also provides a comprehensive overview of common maritime security threats, including the risk of criminal activity, threats to ship security, port-based drug-trafficking risks, security roles and responsibilities on board, and an introduction to the ISPS code. It further covers issues relating to stowaways, about 2,000 of whom are discovered each year hiding on ships, and piracy attacks, of which there have been an average of more than 300 per year since 2009.”

The two-hour computer-based training program is divided into four modules, with ongoing evaluation through a series of questions. On successful completion, a certificate is awarded.

The Cyber and Ship Security Computer-Based Training fulfills the requirements of STCW security awareness training. Additionally, the Liberian Registry’s Seafarer Certification and Documentation Department will accept completion of the training for its security awareness special qualification.

The training is recommended for all individuals, at all levels of seniority, who require enhanced training to deal with the threats faced by all companies, vessels, and crew.

For more information contact: publications@liscr.com or visit: www.liscr.com/CBT.

The Liberian Registry is 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 and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment. www.liscr.com

Ark Shipping takes delivery of OSD-designed AHTS for Caspian operations

A new shallow-draft anchor-handling tug supply (AHTS) vessel designed by Offshore Ship Designers (OSD) has been delivered to Russian inland waterways operator and offshore logistics service provider, Ark Shipping.

The AHTS Antarctic, designed in close co-operation with the owner, is partly based on the design of another OSD-designed ship, the Arctic, which was delivered to Ark Shipping in 2012. The DP1 vessel has a Bureau Veritas Ice Class Notation, and is fully equipped to operate in the challenging and extreme conditions of the Caspian Sea, where ice formation of around 80 cm during the winter period is not exceptional. Construction of the hull from special-grade steel will enable the Antarctic to endure minimum temperatures of -25 to -30 C°. Hull construction, meanwhile, has been optimized to create a relatively low-weight hull for an ice-class 1A vessel.

Antarctic’s large breadth forms a stable platform for stand-by rescue, supply and anchor-handling operations under extreme conditions. The vessel can supply and load different cargoes such as cement, liquid mud, fuel oil, fresh water and black water. The minimum draft in a light operating condition of approximately 2.5 m facilitates access to the shallower parts of the Caspian Sea.

The Antarctic has a Standby Rescue Vessel class notation for 100 survivors. An innovative accommodation design offers sufficient room for survivors and ensures proper sanitary facilities. The vessel, which is fully equipped with all equipment needed to ensure safe and efficient anchor-handling operations, has a total propulsion power of 4923 kW and 6600 hp. It has six rudders with a triple steering gear and double-cylinder set-up. Three Cummins QSK60 Engines drive three high-thrust propellers. a configuration which ensures a high bollard pull and excellent manoeuvrability, even in icy and shallow waters.

OSD managing director Michiel Wijsmuller says, “Ark Shipping has been operating vessels in the Caspian Sea for almost 30 years, establishing a reputation for excellence and innovation. It must meet the requirements of the major oil and gas companies in the area, so it is always looking to push the boundaries of orthodox technology to provide high-quality vessels which operate in an efficient and safe manner in difficult environments. We are delighted that Ark returned to OSD for its latest vessel, which adds to our continually expanding design portfolio.”


Offshore Ship Designers specializes in newbuild design and basic engineering for a wide range of ship types, including tugs, workboats and vessels for the offshore, renewable energy, passenger transport, fishing and general cargo markets. Strategically located in Europe and Asia, its experienced teams provide a full range of consultancy, naval architecture and marine engineering services, including concept FEED studies, vessel refit and conversion, and structural and stability investigations.

www.offshoreshipdesigners.com

For more information:
Merijn Brusselers
Offshore Ship Designers
+31 (0)255 54 50 70
mb@offshoreshipdesigners.com

ITIC settles dispute after Turkey bars entry to vessel with Cyprus connections

International Transport Intermediaries Club (ITIC) recently settled a dispute between a shipowner and its Turkish agent for losses arising from the refusal of Turkish port authorities to allow a vessel to berth because of its connection to Cyprus.

Turkish regulations prohibit any vessel directly or indirectly related to the Republic of Cyprus from calling at Turkish ports. The owner was an existing customer of the agency group appointed to handle the ship’s call in Turkey, but had not called at this particular Turkish port before.

In the agent’s pre-arrival messages to both owners and charterers, it mentioned that anything linking the vessel to Cyprus could lead to the ship not being allowed to berth. In spite of the agent’s express warning to its principal, a document was sent to the agent showing the address of the Panamanian-registered owning company as being ‘care-of’ a company in Cyprus. The agent failed to notice the address and the documentation was forwarded to the authorities.

After the vessel was refused permission to berth, the agent maintained that the owner had been warned about the embargo of all things Cypriot, and had failed to take the necessary action. The owner, meanwhile, claimed that the agent should have carefully reviewed the document. Accordingly, it deducted its alleged losses from other sums due to the agency group.

Although the owner ultimately agreed to accept 50 percent responsibility for the incident, this still left the agency group with a shortfall of $50,000, which was reimbursed by ITIC.


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