Business

Argus Media: Emission rules to curb product tanker fleet growth – DIS

There is an industry trend of focusing on debt reduction instead of fleet growth in the absence of any dominant technology to meet IMO regulations, it said.

Published

4 years ago

August 4, 2020

Admin

Nicolas Kyriakoglou of global energy and commodity price reporting agency Argus Media on Monday (3 August) published an article outlining how strategies that shipping companies have adopted to navigate emission regulations are hindering fleet growth:

The product tanker market should get some support from a low newbuild order book in the medium- to long-term, Italy-listed d'Amico International Shipping (DIS) chief financial officer Carlos Balestra di Mottola told Argus.

He said that there is a general industry trend of focusing on debt reduction rather than ordering new tankers, with the absence of a dominant technology that will allow shipowners to meet the International Maritime Organisation (IMO) 2050 emissions-reduction regulations providing perhaps the biggest obstacle to fleet growth.

"For vessels which navigate on more predictable routes, [shipowners] can make some sort of choice, to go for LNG or for dual-fuel ships," di Mottola said. But for shipowners who go to many different, unpredictable ports — such as in Medium Range (MR) tanker segment — vessels "need a lot of flexibility".

"It is very hard today, to know what solution will prevail. There are so many out there. So we are in a wait-and-see mode, also because we have recently completed an important newbuilding program," he said.

DIS has invested more than $750mn in 22 newbuild tankers since 2012, di Mottola said. But further investment is "not a priority" and the focus is now on reducing debt, even after it reported the highest operating profit since the second quarter of 2015 in the March-June period.

He said that other tanker companies seem to be following the same strategy, even though the first half of the year produced strong industry cash flows. This is because of a combination of the uncertainty around Covid-19 and an attempt by traditional banks to reduce their exposure to shipping, particularly in Germany and Scandinavia.

The lack of new orders are a counterbalance to the severe shortfall in demand that has led to a sharp downward correction in freight rates since late May, di Mottola said, although he said that the long-term fundamentals of the product tanker market are still favourable for DIS. He pointed to the low orderbook, the expansion of global refining capacity in the next few years — which will occur largely in regions which are export-oriented such as the Middle East — and government stimulus packages, all of which will help freight rates recover, he said. Also, tanker scrapping could pick up later this year and next year if Covid-19 restrictions that closed many of the shipbreaking yards are lifted.

DIS has a target of 40-60% coverage in the time charter market, which provides "safety, visibility on our earnings", di Mottola said. It has focused on reducing operating costs since 2018.

The company has adopted "condition-based maintenance" on all its eco-design vessels delivered from yards since 2014, entailing use of technologies such as tribology analysis, sensory monitoring of vibrations, video endoscopy and thermal imaging to increase the average lifespan of spare parts and reduce breakdowns. This allowed DIS to reduce its average daily operating costs by more than 11% from the first half of 2018, to $6,679/d in the first half of this year, di Mottola said.

Photo credit and source: Argus Media
Published: 4 August, 2020

Winding up

Singapore: Liquidator of Vanda Marine Services issues notice of dividend

First and final dividend of company is payable from 23 January at Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977, according to Government Gazette notice.

Published

1 hour ago

January 23, 2025

Admin

A notice was published in the Government Gazette on Thursday (22 January) regarding the first and final dividend to creditors of Vanda Marine Services Pte Ltd.

The following are details of the notice of dividend of the company:

Name of Company : Vanda Marine Services Pte Ltd(In Creditors’ Voluntary Liquidation)

Unique Entity No. / Registration No. : 201209660C

Address of Registered Office : 8 Burn Road, Trivex #16-12, Singapore 369977

Amount per centum : 23 per centum of all admitted ordinary claims

First and Final or otherwise : First and Final

When payable : 23 January 2025 onwards

Where payable : c/o Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977

Manifold Times previously reported several resolutions for Vanda Marine Services, including winding up the company voluntarily, were passed during an extraordinary meeting in March last year.

Photo credit: steve pb from Pixabay
Published: 23 January, 2025

Methanol

China launches first simulation training platform for methanol bunkering operations

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

Published

2 hours ago

January 23, 2025

Admin

China launched its first training platform to simulate methanol bunkering operations at Putuo District, Zhoushan on 15 January.

The Methanol Bunkering System Simulation Training Platform V1.0 was created to fill technical gaps in domestic methanol bunkering training and exercises, in light of the growing demand and popularity for methanol in the shipping industry.

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

The platform was jointly developed by Zhejiang Ocean-U New Energy System Engineering and Zhejiang Ocean University.

At the press conference , Zhejiang Ocean-U New Energy System Engineering successfully signed its first purchase agreement with Seacon Ships Management (Zhejiang), making Seacon the first customer to purchase the platform service.

Wang Guofeng, chairman of Seacon, said that the platform has great potential in improving crew operating efficiency and safety, and he looks forward to deeper cooperation with Zhejiang Ocean-U New Energy System Engineering in the future.

Professor Lu Jinshu, Vice President of Zhejiang Ocean University, said they will continuously improve the platform to contribute more in the field of green shipping solutions to the industry.

Photo credit: Manifold Times
Published: 23 January, 2025

Hydrogen

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Tanker’s power system, which will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system, will enable it to operate for up to 36 hours without additional power charging.

Published

2 hours ago

January 23, 2025

Admin

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Klaipėda State Seaport Authority on Wednesday (22 January) said the first ever green hydrogen and electricity-powered ship in Lithuania has been moved from shipyard into water.

Leaving no trace on the environment, it will clean other vessels entering the port, accepting waste from them.

According to the current rules, vessels are obliged to hand over the waste they produce when they arrive and before they leave Klaipėda Port. The Seaport Authority was entrusted with the collection of the waste, and the company decided to use modern and environmentally friendly equipment to further improve the quality of the ship waste collection service.

The tanker’s main function is to collect storm water, sewage, sludge and garbage, as well as to ensure efficient waste management. The ship will be equipped with special tanks and a modern rainwater treatment plant that will allow the treated water to be transferred to the city’s sewage treatment plants. The tanker will be ready to work around the clock and collect up to 400 cubic metres of liquid waste.

The tanker is 42 metres long and 10 metres wide. The ship’s power system will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system. Depending on the intensity of the work, the tanker will be able to operate in the port of Klaipėda for up to 36 hours without additional power charging.

This ship building project with a total value of EUR 12 million (USD 12.5 million) has been commissioned by the Port Authority and is being built by West Baltic Shipyard together with Baltic Workboats under a joint operating agreement.

“We have not only launched a tanker, but also a new approach to port operations – cleaner, smarter and more environmentally friendly. This first ever hydrogen and electricity-powered ship is not only an innovative technological solution, but also an important step in strengthening Lithuania’s image as a modern maritime nation,” said Algis Latakas, Director General of Klaipėda State Seaport Authority.

“At the moment, the tanker is getting used to the seaport water, so to speak, and at the end of the year we expect it to start its important mission of taking care of the clean seaport environment. Such a decision will not leave a footprint on nature, but it will certainly leave a strong mark on our path to a greener future.”

In June last year, a symbolic keel-laying ceremony at the West Baltic Shipyard of the West Baltic Shipyard Group marked the start of the ship’s construction. To date, the hull has been fabricated and painted, with piping, valves, coolers, shaft lines, rudder feathers, heat and fire insulation installed.

Once the tanker is moved into the water, the engine room equipment will be installed, the interior of the wheelhouse will be redecorated, the electrical wiring and the main electrical engines will be installed, the hydrogen system will be installed and other work necessary for the operation of the ship will be carried out.

Photo credit: Klaipėda State Seaport Authority
Published: 23 January, 2025