Liberian Registry selected as finalist for Lloyd’s List innovation award

An environmental initiative launched by the Liberian Registry to help reduce global carbon emissions and to enhance fleet efficiency and competitiveness has been selected as a finalist for the Lloyd’s List 2015 Global Innovation Award.

The award recognises innovative projects which have demonstrated, or have verified potential, to move shipping forward. 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, “We are delighted to have been nominated for this prestigious award. The Liberian Registry is an environmentally aware and responsible operator, always looking to help shipowners improve their green credentials and meet other corporate social responsibilities. This nomination confirms that Liberia is committed to remaining the greenest fleet afloat.”

The LISCR environmental initiative 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.

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

Moore Stephens emphasises high cost to shipping of environmental regulatory compliance

International accountant and shipping adviser Moore Stephens says that finding enough money to remain compliant with environmental regulation is going to be a challenge for shipowners and operators over the next few years.

Moore Stephens shipping partner Michael Simms says, “The Ballast Water Management (BWM) Convention, for example, has not yet entered into force, although some countries, including the United States, have already implemented BWM regulations independently of the IMO. But it is known that BWM systems can cost between $500,000 and $5m per vessel, depending on the system as well as on the size and design of the ship. That cost may increase as a result of demand requirements and shipyard capacity. There are also operational costs to consider of between $10,000 and $50,000 per annum per vessel.

“Meanwhile, the regulation of emissions from shipping continues apace. Emissions Control Areas (ECAs) are currently in force in the North Sea/Baltic Region and in North America, and new IMO regulations mean that, by 1 January 2015, all vessels operating within these areas will be required to meet an 0.1 percent SOx emissions limit. In addition, there are more complex calculations for 2016, when IMO NOx limits based on the vessel’s age and engine’s rated speed enter into force.”

Simms acknowledges that the true cost of regulatory compliance is still unclear. He says, “Think of a number. Any number will do, so long as it is very big. Then double it. The answer is likely to be as accurate as any supposedly informed estimates currently circulating in the shipping sector about the likely size of the industry’s bill for achieving compliance with incipient environmentally-inspired regulations governing the operation of ships.

“Individual owners and operators may plot their own path through the regulations. For some, configuring new ships for easy installation of BWM systems when the convention enters force may be a viable option. Scrubbers, meanwhile, may be the most cost-effective solution for some when addressing the SOx/NOx dilemma.

“One thing is certain, however. Shipping is going to have to find a great deal of money over the next few years simply to stay within the rules. From an accounting perspective, the challenge will be how businesses should account for the expenditure and any associated costs to determine which items should be capitalised or expensed. In practice, whist additional operational costs should be expensed, certain expenditure should be recorded as an asset. But, of course, it is only an asset if you are able to recover it. “

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 667 offices of independent member firms in 105 countries, employing 27,081 people and generating revenues in 2013 of $2.7 billion. www.moorestephens.co.uk

For more information:
Michael Simms
Moore Stephens LLP
Tel: +44 (0)20 7334 9191
michael.simms@moorestephens.com

MARINE LUBRICANTS UNDER THE SPOTLIGHT

As shipping turns to slow steaming to reduce costs and faces increased emissions control measures, the process and challenge of procuring marine
lubricants has taken on greater complexity and significance, according to Total Lubmarine, one of the world’s leading global supplier of marine lubricants and greases.

The North American Emissions Control Area (ECA), which will be effective from 2012, will impact 50% of maritime traffic, forcing ship owners and operators not typically operating in ECAs to begin use of lower basicity cylinder lubricants required for lower sulphur fuels.

This increasing trend is likely to create issues for ship owners and operators when leaving ECAs, as lower BN lubricants are not best suited to operation with higher sulphur fuels outside ECA boundaries.

Moreover, the use of lower basicity cylinder lubricants within ECAs runs directly counter to the lubrication requirements for slow steaming or other conditions outside ECAs, which conversely require owners and operators to run specific lubricants.

With rising bunker prices and growing charterer pressure to reduce costs, slow steaming looks set to stay. Most container vessels have cut cruising speeds from 22-25 knots to 18-20 knots, but in the case of extra slow steaming, to as low as 8-12 knots, which significantly increases stresses and strains on a two or four stroke marine engine.

Patrick Havil, Global Marketing Manager, Total Lubmarine, said: “We know that ship operators are under pressure to deliver against current and impending Sulphur Oxide (SOx) and Nitrogen Oxide (NOx) regulations, reduce bunker fuel costs through
slow steaming and meet safety standards to protect both their workforce and the environment.

"At the same time they need to maintain a clear competitive advantage through
reliable, consistent operations and ensuring profitability. Faced with this, the industry needs a new generation of marine lubricants that not only offer significant cost savings and better performance, but are also compatible with different levels of sulphur, and the great demand for slow steaming.”

Total Lubmarine has been addressing these issues for some time now and has developed the complete solution to this two-fold challenge. Talusia Universal has been tested more extensively than any other lubricant on the market today, against both high and low levels of sulphur heavy fuel oil (HFO), and has been validated by customers using distillates and slow steaming.

Havil continued, “We’re confident this product will effectively future-proof all vessels and is a significant step forward for the industry. Talusia Universal is the only lubricant compatible with fuel at all sulphur levels, meaning that the need to switch lubricants when moving in and out of an ECA is completely removed. Based on this, we are already developing the perfect lubricant for the 2015 market that will give optimal performance with the highest sulphur content HFO right down to lower sulphur content fuels.”

Total Lubmarine provides the shipping industry with leading marine lubricants and greases, associated with first-class service. To earn the confidence of its customers, it commits itself to meeting their expectations. It offers a complete range of marine lubricants to meet the needs of the international shipping industry, based on technologies developed by the Total Research Centre at Solaize, tested and approved by all the major marine engine manufacturers.

Dedicated and motivated local logistics teams are able to deliver lubricants in more than 1,000 ports. A highly qualified technical service team is ready to assist customers throughout major ports worldwide.


www.lubmarine.com