For a number of years now, the shipping industry has sounded warnings about the shortage of qualified crew. Also in this issue: Intercargo, Zela Shipping, Genco, Pacific Basin, Tolani and Thoresen
All text and photographs: Magne A. Røe, except where otherwise statedDate: 03 June 2008
The dry bulk market reached unprecedented levels in 2007. A combination of insatiable demand, mainly from China, and severe congestion problems produced a market with soaring freight rates and unprecedented newbuilding ordering.
The challenge For a number of years now, the shipping industry has sounded warnings about the shortage of qualified crew. With numbers of newbuildings at an all-time high in a variety of segments, this problem will continue to grow in the years to come.
The challenge Port congestion has been high on the agenda over the past few years and 2008 is no exception. In an attempt to counteract this problem, a number of ports have warned that some ships may be blocked from trading or else made subject to pressure to ensure faster loading.
The challenge Both safety and environmental performance are high on the agenda at the UN’s International Maritime Organization (IMO), and several new Conventions have been or are currently being developed in this area, all with an impact on future ship design and how ships are operated.
The challenge Maintenance and operational requirements for bulk carriers are becoming a hot topic, with more than 1,700 bulk carriers above 10k dwt in service that are 21 to 40 years old, and a historically low scrapping rate.
The challenge Although shipping is seen as a fuel efficient and hence ‘environmentally friendly’ mode of transportation, it will in the near future be focused on and made subject to regulations to further improve its environmental performance.
The challenge Maritime transportation in Arctic areas has already started to increase in the past decade and will continue to do so in the future.
“At the top of our agenda now is the controversy concerning loading rates at terminals. Another issue which will require our attention in the years to come is how to deal with the shortage of competent seafarers,” says Rob Lomas, the Intercargo Manager. In this interview, both Mr Lomas and Intercargo Secretary-General, Roger Holt, share their views on the future of the dry bulk shipping industry.
Due to the record number of newbuilding contracts and high level of activity in the maritime industry in general, DNV Maritime is pursuing new and more efficient ways of training new employees.
Zela Shipping, founded and controlled by the Mouskas family, has been a successful operator in the bulk carrier business for over 40 years and has a reputation as a “solid” player, with a clear overall strategy of “no compromise” when addressing safety issues. This strategy has led the company to implement an impressive modernisation programme for its Capesize fleet and to focus on forging close ties with chartering majors.
Updated figures for 2007 show that the losses from navigational accidents within the shipping industry are continuing to increase. This trend is also confirmed by the insurance industry.
Speaking with Gerry Buchanan, the President of Genco Shipping and Trading Ltd, in his Park Avenue office in New York recently, we talked about the spectacular growth and consolidation of the company in all bulk carrier segments. Buchanan also shared his views on what has made Genco such a successful operator and on the outlook for the bulk carrier market.
Pacific Basin operates one of the largest Handysize fleets in the world - 64 vessels. Its total fleet is approaching 100 vessels, about half of which are owned by the company while the rest are chartered. It has a network of offices around the world and can provide fully integrated services to all customers in the major time zones.
“We are very conservative about how we finance our growth, but grow we will,” says the Managing Director of Thoresen Thai Agencies (TTA), M.L. Chandchutha Chandratat. His background is in banking and now he is very much at the helm of Bangkok-based Thoresen. The fact that the dynamic Chandratat has taken Thoresen to a new level can be illustrated by the publication Asiamoney (Dec 2007/Jan 2008 issue), which has Thoresen at the top of its list of Thailand’s best managed mid-cap companies.
“Five years ago, the average age of our fleet was 14 years and the typical vessel size was 35,000 dwt. Today, the average age is less than 5 years and the average size is more than 60,000 dwt. On the crewing side, there is an increasing challenge to get the right people, so we’ve created the Tolani Education Foundation to combat this,” says Rohet N. Tolani, the Managing Director of Tolani Shipping Singapore Ltd.
If samples taken from a bunker delivery are tested and found to meet the required quality specification, it does not mean the crew can relax other precautionary measures. Improper fuel sampling, poor machinery maintenance, negligence on the part of the crew and a lack of technical knowledge can still result in engine problems.
The very strong dry bulk market has led to an unprecedented order boom for dry bulk carriers. This has been topped by the conversion of a significant number of vintage oil tankers into bulk carriers, as well as the conversion of some newbuilding orders for different vessel types into orders for bulk carriers. After rising strongly from about 20 million dwt in 2005 to 50 mdwt in 2006, newbuilding orders for bulk carriers almost tripled to 148 mdwt in 2007. Recently, the ordering frenzy seems to have tapered off and registered newbuilding orders fell from 9.5 mdwt in January to 3.5 mdwt in February and 3.8 mdwt in March.
For a number of years now, the shipping industry has sounded warnings about the shortage of qualified crew. Also in this issue: Intercargo, Zela Shipping, Genco, Pacific Basin, Tolani and Thoresen
