Damen delivers fast cats to three Korean ferry operators

The first vessel, the SeaStar 5, was delivered earlier this year to existing Damen customer Seaspovill,

Built at Damen Shipyards Singapore, the SeaStar 5 is a DFF 4212 ferry, 42.2 m in length with a beam of 11.6 m built to carry 450 people between Gangneung on the east coast of South Korea and the island of Ulleung-Do.

High levels of comfort characterize the passenger spaces, which are distributed over the main deck, which can accommodate 306 persons, and the upper deck, which caters for 144.

Powered by four MTU main engines (16V2000 M72), Sea Star 5 can reach speeds exceeding 40 knots.

The second delivery this year came in May, when operator Daezer Shipping took delivery of a DFFe 4212 named Sunrise. Delivered within three months of ordering, the vessel has the same powering arrangement and same speed capability as the SeaStar 5.

Sunrise is currently operating a route of very popular tourist destinations on Koreas East-coast from the island of Ulleung to Dokdo.

As a relatively new ferry operator and new customer to Damen, this recent acquisition has seen Daezer increase service offering in the region.

The third delivery of the year took place in late August when  the Queen Star 2 was delivered to established operator Seaworld Express Ferry Co. for operation on a three-hour route from Usuyoung Port to the popular tourist destination of Jeju Island via Chujado Island.

This is the first delivery of Damen’s newly designed DFFe 4010 with a controllable pitch propeller (CPP), providing increased fuel efficiency at different speeds and loading conditions.

Although slightly smaller than the DFFe 4212, the DFFe 4010 can accommodate to the same amount of 450 maximum passengers and with two engines instead of four; the vessel can still reach a top speed of 35 knots.

USCG searches for TOTE ship caught by Hurricane Joaquin

 

The El Faro, a 735-foot TOTE Maritime RO/RO cargo ship, was en route to San Juan, Puerto Rico, from Jacksonville, FL. At about 7:30 a.m. Thursday, watchstanders at the Coast Guard Atlantic Area command center in Portsmouth, VA, received an Inmarsat satellite notification stating the El Faro was beset by Hurricane Joaquin, had lost propulsion, and had a 15-degree list.

The crew reported the ship had previously taken on water, but that all flooding had been contained.

Watchstanders at the Coast Guard 7th District command center in Miami launched an HC-130 aircrew out of Clearwater, FL, to search for the El Faro.

As of this afternoon, Coast Guard watchstanders and rescue crews had still been been unable to reestablish communications with the El Faro crew.

Two Air Force C-130 Hurricane Hunter aircrews attempted to locate and reestablish communications with the El Faro unsuccessfully Thursday. Coast Guard crews remained on scene and continue search efforts today by both air and sea.

At a press conference today Coast Guard Captain Mark Fedor said the Coast Guard was pushing its assets to their operational limits in the search for the vessel and the 33 people on board.

Tim Nolan, President of TOTE Maritime Puerto Rico issued the following statement on the incident:

On September 29, the El Faro, one of TOTE Maritime Puerto Rico’s two ships departed Jacksonville en-route to San Juan Puerto Rico.

At the time of the El Faro’s departure, the vessel’s officers and crew were monitoring what was then Tropical Storm Joaquin. As of 720am EST on Thursday October 1, TOTE Maritime Puerto Rico lost all communication with the El Faro. The US Coast Guard was immediately notified and since then we have been unable to reestablish communication.

There are a number of possible reasons for the loss of communications among them the increasing severity of Hurricane Joaquin.

TOTE Maritime Puerto Rico’s primary concern is for the safety and well-being of the 33 individuals on board.

We are working to ensure clear and frequent communications with their families and loved ones as we learn more.We have reached out to the families of those impacted and have established open lines of communication to provide them with timely updates. Our thoughts and prayers are with the individuals and their families.

TOTE Maritime Puerto Rico is working closely with the US Coast Guard and all available resources to establish communication by whatever means possible.

MARAD funding for TOTE LNG conversion study

OCTOBER 2, 2015 — The U.S. Maritime Administration (MARAD) has announced a $900,000 cooperative agreement with TOTE Maritime to further develop knowledge regarding the costs and benefits of vessel conversions to liquefied

ME-GI for first Crowley ConRo passes milestone test

The engine is the first of two 8S70ME-C8.2-GI units for delivery to VT Halter Marine, Pascagoula, MS, for installation in the two 2,400 TEU ConRo ships it is building for Crowley Maritime Corporation.

The vessels will be two of the world’s first LNG-powered ConRo ships, with container Lift-on/Lift-off (LO/LO) and vehicle Roll-on/Roll-off (RO/RO) loading. Designed to travel at speeds up to 22 knots, they will be 219.5 m long, 32.3 m wide and have a deep draft of 10 m. In addition to carrying 2,400 TEU of containers they will be able to carry nearly 400 vehicles in an enclosed Roll-on/Roll-off garage.

Crowley ordered the ME-GI engines, along with three MAN 9L28/32DF auxiliary engines for each vessel, in early-2014. The company selected the high-pressure, Diesel-cycle ME-GI engines because of their high efficiency and power concentration. The ME-GI’s ability to avoid derating, and its negligible methane slip, also contributed to its selection.

Crowley reports that the newbuildings will reduce the amount of CO2 emissions attributable to each container by approximately 38%.

The ships will meet or exceed all regulatory requirements and will have the CLEAN notation, which requires limitation of operational emissions and discharges, as well as the Green Passport, both issued by DNV GL.

The ME-GI engine

The ME-GI engine is the culmination of many years’ work, and gives shipowners and operators the option of utilizing fuel or gas depending on relative price and availability, as well as environmental considerations.

The ME-GI uses high-pressure gas injection that allows it to maintain the numerous positive attributes of MAN B&W low-speed engines that have made them the default choice of the maritime community. The ME-GI is not affected by the multiple de-ratings, fuel-quality adjustments or large methane-slip issues that have been seen with other dual-fuel solutions.

MAN Diesel & Turbo sees significant opportunities ahead for gas-fueled tonnage as fuel prices rise and exhaust emission limits tighten. Research indicates that the ME-GI engine delivers significant reductions in CO2, NOx and SOx emissions. Its negligible methane slip makes it even more environmentally friendly

An ME-LGI counterpart that uses LPG, methanol and other liquid gases is also available, and has already been ordered.
Factory Acceptance Test attendees pictured in front of the ME-GI engine at MES’s Tamano Works

American Club sets up Cyprus based hull insurer

The American Club says the investment will allow further expansion into the global hull & machinery segment, enabling it to offer high quality insurance services and innovative customer solutions.

American Hellenic will be a Cyprus-based and licensed, Solvency II compliant, wholly-owned American Club subsidiary. It will be managed from Piraeus, Cyprus and New York, utilizing the expertise of long-standing professionals in the marine insurance market and will be serviced through specialists in offices located in seven global shipping hubs with the ability to provide local market know-how and service to its customers, and to communicate in eleven languages.

The American Club will now be able to continue offering first class marine protection and indemnity cover while also, through American Hellenic, offering an expanded product line of marine insurance including hull & machinery, war risk, and mortgagee interest insurance.

The American Club’s Board voted unanimously for the initiative, which Chairman of the Board, Arnold Witte, called “an historic moment in the club’s long history.”

He noted that it was “sparked by the idea of Board member Angelos Kostakos” and was a unique opportunity to prudently expand the club’s market footprint.”

“American Hellenic is an investment in the American Club’s future and is yet a further step in expanding and diversifying the club’s product line,” said Vincent Solarino, President and COO of Shipowners Claims Bureau, Inc., managers of the American Club. “It is part of the club’s overarching plan to significantly increase its revenue across a growing range of product lines, its tonnage across all lines, andexpand its market presence, while increasing its S&P rating.”

Joe Hughes, Chairman and CEO of the American Club’s Managers, said: “This is one of the most significant developments in the American Club’s recent history. The transaction proceeded with the close and active cooperation of the Board of Directors of the American Club. I am certain that American Hellenic will prove to be a powerful force of growing energy within the international marine insurance industry.”

 

Maersk 19,600 TEU giants to have waste heat recovery

 

DSME has placed an order with Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd. (MHI-MME) to supply the ships with its proprietary system for generating electric power by maximizing recovery and utilization of exhaust gas waste energy from marine diesel engines.

The systems ordered for the Maersk newbuildings takes the total number of MHI-MME’s WHRS units ordered to 87 since the system’s market introduction in 2010. Maersk has thus far been the biggest customer the system, with 69 units ordered for installation in four series of ships, including its 18,300 TEU Triple-E vessels.

The WHRS is MHI-MME’s best-selling product and the company holds a greater than 90% share of the WHRS global market.

The schematic below shows the principles of the system.

Image of WHRS

 

Singapore takes another step toward LNG bunkering

This week the MPA took another step toward the planned early 2017 launch of the LNG Bunkering Pilot Program (LBPP) which is aimed at developing Singapore as a key LNG bunkering hub in Asia.

The Port of Singapore is inviting interested companies to tap into Singapore $12 million available from the MPA’s Maritime Innovation & Technology Fund for the building of LNG-fueled vessels. The MPA will provide up to Singapore $2 million (about US$ 1.4 million) per vessel, capped at two successful funding applications per company.

Companies must be incorporated in Singapore, and the funded vessels must be flagged under the Singapore Registry or licensed for activity in Port of Singapore for a period of at least five years.

MPA has been collaborating closely with partner agencies, industry stakeholders and technical experts, to develop LNG bunkering standards, procedures and infrastructures.  On July 28 it announced its Request for Proposal (RFP) for interested parties to apply for an LNG bunker supplier license allowing the them to supply LNG bunkers to vessels in the Port of Singapore.

Survey shows shipowners still watching the purse strings

Though there were variations in different sizes and types of ships, industry wide all categories of expenditure were down on those for the previous 12-month period.

“This is the third successive year-on-year reduction in overall operating cost,” says Moore Stephens partner Richard Greiner. “This comes as something of a surprise, and is contrary to earlier forecasts. Shipping is clearly watching the pennies, and it may also be the case that more competitive pricing for goods and services has had a part to play in holding down expenditure. Beyond that, as always, the impact of exchange rate changes cannot be determined readily.

“By far the biggest reduction in operating costs, for example, was seen this time in the Stores category. This can be largely explained by the knock-on effect which the fall in oil prices has had on lube oil costs. Such ‘benefits’ do not come often to any industry, and are usually not without a downside, as has been the case in shipping.

“Crew costs were down, albeit marginally, for the first time in recent memory. This could be an indication of a higher level of idle tonnage during the period under review, but is nevertheless welcome news for an industry which has seen crew cost increases of more than 20% at their peak.

“Expenditure on repairs and maintenance was also marginally down on 2013, possibly attributable in part to weak steel prices and in part to the fact that poor freight rates arguably do not encourage owners and operators to engage in anything but the most essential repairs and maintenance. It is to be hoped that there is not a future price to be paid in this respect in terms of either safety or performance.

“The bill for insurance coverage was also down, which will come as little or no surprise in view of the high level of competition in the insurance market, which is arguably even fiercer than that in the shipping industry.

“A third successive annual fall in operating costs must be good news for an industry already facing serious financial challenges and preparing to meet still more. But a bigger-picture view provides an insight into just how much operating costs have increased in recent years. OpCost is now in its fifteenth year of publication. At year-end 2001, the average daily operating cost for a Panamax Bulk Carrier was $3,565. In 2014, it was $6,046. For a Handysize Product Tanker, the comparable figures were $4,164 and $7,931

.”The challenge for shipping is how to build the cost of operation into freight rates in a way which allows for a reasonable profit margin in an industry which is driven by competition and characterized by overtonnaging. Given that, over the next few years, annual seaborne trade is projected to grow at a reasonable rate, and that the cost of regulatory compliance is likely to increase significantly, one would expect operating costs to rise over the same period. Two things are certain. Firstly, the business of operating ships will remain a costly undertaking. Secondly, the impetus for higher freight rates will not come from the shipping industry’s customers.”

The 2015 edition of OpCost is available online. 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 2015 is available free to owners who submit their data for inclusion. Alternately, it can be purchased.

MORE

Aker Philadelphia cuts steel for Matson 3,600 TEU box ships

In 2013, Matson subsidiary Matson Navigation Company, Inc. signed a contract with Aker Philadelphia Shipyard Inc. (APSI) to build the two new ships for a price of $418 million for the pair (see earlier story). Since signing the contracts, engineering, planning and procurement work have been underway.

The shipbuilder is expected to deliver the ships in the third and fourth quarters of 2018.

The 850-foot long, 3,600 TEU vessels will be Matson’s largest ships and the largest Jones Act containerships ever constructed. Despite their size, they are designed to accommodate future needs by being able to navigate safely into some of Hawaii’s smaller ports.

They will also be faster, designed to operate at speeds in excess of 23 knots, helping ensure timely delivery of goods in Hawaii.

The new vessels will incorporate a number of “green ship technology” features including a more fuel efficient hull design, dual fuel engines that can be adapted to use liquefied natural gas (LNG), environmentally safe double hull fuel tanks and fresh water ballast systems.

“These new ships are the future for Hawaii shipping and will bring a new level of efficiency and effectiveness to our service,” said Matt Cox, president and CEO, Matson. “The substantial investment in new technology underscores Matson’s long-term commitment to Hawaii and our desire to serve the islands in the best, most environmentally friendly way into the future.”

The first ships to be delivered by Aker Philadelphia were four Jones Act containerships for Matson delivered between 2003 and 2006.

“We are excited to partner with Matson again and return to our construction roots building containerships,” said Aker Philadelphia President and CEO Steinar Nerbovik. “It’s an exciting time to be a shipbuilder as we embark on simultaneously building containerships and product tankers, fulfilling our commitments to customers and shareholders.”

BAE San Diego books Navy awards worth $104.25 million

The awards are for work on the USS Milius (DDG 69) and USS Cape St. George (CG 71).

The Milius award is a $53,633,494 modification to previously awarded, cost-plus-award-fee, cost-plus-incentive-fee contract (N00024-11-C-4408) for the ship’s fiscal 2015 extended selected restricted availability.

An extended selected restricted availability includes the planning and execution of depot-level maintenance, alterations, modernizations, and modifications that will update and improve the ship’s military and technical capabilities.

Work will be performed in San Diego, and is expected to be completed by December 2016.

Fiscal 2015 other procurement (Navy) funding in the amount of $33,527,206; and fiscal 2015 operations and maintenance (Navy) funding in the amount of $20,106,288 will be obligated at time of award. Contract funds in the amount of $20,106,288 will expire at the end of the current fiscal year.

The shipyard’s award for the Cape St. George is a $50,625,133 modification to previously awarded cost-plus-award-fee, incentive-fee contract (N00024-11-C-4400) for the ship’s fiscal 2015 extended drydocking selected restricted availability.

An extended drydocking selected restricted availability includes the planning and execution of depot-level maintenance, alterations and modifications that will update and improve the ship’s military and technical capabilities.

This modification includes options which, if exercised, would bring the cumulative value to $51,016,432.

Work will be performed in San Diego, and is expected to be completed by September 2016.

Fiscal 2015 operations and maintenance (Navy) funding in the amount of $48,059,799; working capital funding in the amount of $2,392,527; and fiscal 2015 other procurement (Navy) funding in the amount of $172,807 will be obligated at time of award.

Contract funds in the amount of $48,059,799 will expire at the end of the current fiscal year.
The Southwest Regional Maintenance Center, San Diego, is the contracting activity for both awards.

LOAD MORE