Benefits of World Maritime Day…

The United Nations (UN), via the International Maritime Organization (IMO), created World Maritime Day (WMD) to celebrate the international maritime industry’s contribution towards the world’s economy, especially in shipping.

The event’s date varies by year and country but is generally in the last week of September. For example in 2015, it was celebrated on Thursday the 24^th of September, and next year (2016) it will be celebrated on Thursday, 22^nd September.

World Maritime Day focuses attention on the importance of shipping safety, maritime security and the marine environment and to emphasize a particular aspect of IMO's work.  The day also features a special message from the IMO’s secretary-general, which is backed up by a discussion paper on the selected subject in more detail. The theme for 2015 was "Maritime education and training", focusing attention on the importance of adequate education and training to ensure a safe, secure and sustainable shipping industry.

World Maritime Day is celebrated in many countries worldwide, including India. Special events and activities are held to celebrate the day, including a symposium/seminar on the theme of the event as conveyed by IMO.

Since 2005, in addition to the official IMO celebrations held at IMO Headquarters in London, there has been a parallel event hosted by a Member State. This year’s parallel event was held in Japan on the 20^th and 21^st July 2015.

The WMD theme for this year was “Maritime Education and Training”. The Theme was adopted to focus attention on the wider spectrum of maritime education and training, in particular its adequacy and quality, as the bedrock of a safe and secure shipping industry, which needs to preserve the quality, practical skills and competence of qualified human resources, in order to ensure its sustainability.

The 1978 STCW Convention and Code, as amended (STCW 2010), set the international benchmark for the training and education of seafarers. While compliance with its standards is essential for serving on board ships, the skills and competence of seafarers, and indeed the human element ashore can only be adequately underpinned, updated and maintained through effective maritime education and training.

The IMO symposium held on the 24^th of September on the topic: Shipping’s future needs people: Is global maritime education and training on course?” The IMO symposium provided an opportunity for a discussion on the future of maritime education and training.

All speakers at the symposium stressed the need to raise the profile and the image of shipping in general, in order to attract young people into the maritime professions. Other speakers brought in the paucity of training berths and some speakers raised the important issue of ongoing quality assessment of seafarer training courses as required by STCW 2010.

This year the parallel event was held in Japan on the 20^th and 21^st of July, 2015. Maritime education and training needs- now and in the future – were the focus of a high-level international symposium. Delegates also visited maritime heritage sites in Yokohama and witnessed seafarer training demonstrations on the sail training ships Kaiwo Maru and the training ship Taisei Maru. This was followed by a special session addressing the future needs of the industry, which aimed to discuss how educational organizations could go about educating and training high quality maritime human resources, which are necessary for quality shipping and how they could attract the interest of future generations towards the seas and the oceans.

IMO has recently decided on the theme for World Maritime Day 2016, namely, “Shipping indispensable to the world”. Next year the Parallel Event will be held in Turkey.

“Today, around 90 percent of world trade is carried by the international shipping industry. Without shipping the import and export of goods on the scale necessary to sustain the modern world would not be possible. And seaborne trade continuous to expand, bringing benefits for consumers across the world through competitive freight costs. Yet the fact remains that most of the world’s population is not aware of the vital role shipping plays in their everyday lives”, said IMO Secretary General.

There are more than 50,000 merchant ships trading internationally, transporting every kind of cargo. The world fleet is registered in over 150 nations and manned by more than a million seafarers of virtually every nationality.

In India, we benefit from the symposium/seminar, the theme and message from IMO which keeps us abreast of international developments.

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Liquefaction – A major hazard on BULK CARRIERS

Liquefaction is a chemical process that turns a previously safe commodity into a cargo with a dangerously high moisture content that can destabilize a vessel. Liquefaction means that a cargo becomes fluid (liquefies). On ships, this happens when the cargo is compacted by the ship’s motion. Cargoes which are prone to liquefaction contain a certain quantity of moisture and small particles, although they may look relatively dry and granular when loaded. Liquefaction can lead to cargo shift and even to capsize and total loss of the ship.

Certain cargoes, particularly nickel ore and iron ore fines, initially look dry and their characteristics are solid during loading on the ship. But during the voyage, concentrate cargoes as afore-mentioned are exposed to agitation under certain conditions including ship’s rolling, wave impact and engine vibration which results in compaction of the cargo.

IMO’s International Maritime Solid Bulk Cargoes (IMSBC) code which is mandatory under the provisions of SOLAS has placed cargoes with a liquefaction hazard in Group ‘A’. Liquefaction can result in cargo shift. This phenomenon may be described as follows:

1)  The volume of the spaces between the particles reduces as the cargo is compacted due to the ship’s motion, etc.;

2)  The reduction in space between cargo particles causes an increase in water pressure in the space;

3)  The increase in water pressure reduces the friction between cargo particles, resulting in a reduction in the shear strength of the cargo; and

4)  Then the cargo begins to flow as a viscous liquid

Liquefaction does not occur when one of the following conditions is satisfied:

a) The cargo consists of large particles or lumps. Water passes through the spaces between the particles and there is no increase in the water pressure. Cargoes which consist entirely of large particles will not liquefy; and

b) The cargo contains a high percentage of air and low moisture content.  Any increase in water pressure is inhibited. Dry cargoes do not liquefy.

Group ‘A’ cargoes with high moisture content (above TML) are prone to sliding, particularly if the cargo is shallow and subject to large heel angles. In the resulting viscous fluid state cargo may flow to one side of the ship with a roll but not completely return with a roll the other way. Consequently, the ship may progressively reach a dangerous heel and capsize quite suddenly.

A number of major liquefaction incidents resulting in capsizing and sinking have taken place over the years. Some of them are given below:

-  On the 27th of October, 2010, ‘Jian Fu Star’ laden with nickel ore from Indonesia sank in South China Sea with loss of 12 lives.

-  On the 10th of November, 2010, ‘Nasco Diamond’ laden with nickel ore from Indonesia sank in the Pacific Ocean with a loss of 20 lives.

-   On the 3rd December, 2010, ‘Hong Wei’ laden with nickel ore sank in the south China Sea with a loss of 10 lives.

-   On the 25th of December, 2011, ‘Vinalines Queen’ laden with nickel ore from Sulawesi sank in the Philippine Sea with the loss of 22 lives.

The ‘Asian Forest’ and the ‘Black Rose’ sank in July 2009 (off Mangalore) and September 2009 (Off Paradip) respectively, while carrying a cargo of iron ore fines during the monsoon season. The Directorate General of Shipping investigated the sinking and concluded that the reason was liquefaction as a consequence of excessive moisture in the cargo. Thereafter, as a preventive measure, DG Shipping issued an MS Notice banning the loading of Iron Ore fines during monsoon months on the Indian coast.

More recently, on the 30th of December, 2014, ‘Bulk Jupiter’ laden with bauxite from Malaysia sank off Vietnam with a loss of 18 lives.

The IMSBC Code requires that concentrates or other cargoes which may liquefy shall only be accepted for loading when the actual moisture content of the cargo is less than its Transportable Moisture Limit (TML).  Considering that if Liquefaction takes place whilst the vessel is rolling in rough weather, it would be very difficult to control the vessel; hence, the major precaution that actual moisture content should be less than its TML should never be compromised.

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How to cut Paperwork? - IMO study underway…

The development of a number of IMO and other Conventions, Codes, Resolutions and Circulars and more particularly the development of the ISM code, has led to an increasing burden of paperwork for ship’s officers. Further, with the voluntary implementation of an integrated ship management system in many companies together with commercial, trade and industry requirements, the burden of paper work has increased exponentially.

Documentary evidence for most of the requirements, hard copies and originals have become pre-requisites for surveys, inspections and audits which have also increased substantially. In the earlier years a dedicated officer (Purser) was available to assist with the paper work. Later, to reduce manning cost, the Purser was withdrawn and then the Radio Officer shared this burden.

Further, with the advent of GMDSS and satellite communications, the radio officer has also been withdrawn, so now the full burden and that too an increased burden is fully on the ship’s officers.

On account of the foregoing, ship’s officers are spending far too much time on paper work. This is having a negative impact on ship operations and maintenance, increasing work load, fatigue, tension and stress. One would have imagined that with the advent of automation, computerization and technological advancements, life on board would have enhanced self- satisfaction for ship’s officers; but it seems that earlier times were better with less paper work.

The increased paper work load has already reached alarming proportions and time is not far when an incident may happen as the ship’s officer was busy with paper work!

It is heartening to know that an IMO study is underway and that some data has already been collated to consider the possibility of reducing paper work. Further, in order to take a holistic view, it would be necessary to also consider reducing paper work in commercial, trade, industry, company and non-mandatory areas.

We are looking forward to a positive outcome and hope that paperwork reduces substantially for the overall benefit of the shipping industry and in particular for the benefit of ship’s officers.

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Make in India- A fine example from the Indian Automobile Industry

The Leading global automobile manufacturers; Suzuki- Maruti, Hyundai, Honda, Toyota, Volkswagen, Ford, General Motors, Nissan etc. have set up production facilities in India and are catering to both the Indian market and the export markets. Cars are now being exported to diverse markets in Africa, South- East Asia and Europe.

Leading Indian manufacturers; Tata Motors, Mahindra & Mahindra etc. are similarly catering to both the Indian market and the export markets.

The Indian automobile industry is thus amongst the top manufacturers in the world catering to the growing Indian and export markets.

Automobile exports (passenger vehicles) from India have grown from 4.5lakhs in 2009/2010 to 6.2lakhs in 2014/2015 an average annual growth rate of about 8% and the trend is continuing.

Transportation of automobiles for the export market is done by Pure Car and Truck Carriers (PCTC’s) of over 5000 cars (CEUs) capacity. This is the most economic and efficient way for sea transportation of automobiles.

Large PCTC’s of various leading international shipping lines, such as, Hoegh Autoliners, NYK, MOL, Wallenius Wilhelmsen, etc. make regular calls at Indian ports to load and transport automobiles by Ro-Ro concept.

It would be observed from the foregoing that the manufacture of automobiles in India by leading international and Indian manufacturers is one of the best examples of the “Make in India”, concept. Taking a lead from here, perhaps it can be replicated in a number of other industries too.

Then, what about the shipbuilding industry, will it be possible? Perhaps yes, at a later date, when we are able to overcome the constraints and numerous problems. The demand for RoRo PCTC’s is likely to increase with the increase in exports and this would provide a good opportunity to Indian shipping lines to consider diversifying and acquiring a few PCTC’s.

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US Ethane Exports – a welcome development

Ethane is a chemical compound with chemical formula C2H6. At standard temperature and pressure, ethane is a colourless, odourless gas. It is an alkane (single-bond hydrocarbon), second in the series with two carbon atoms, after methane and before propane and butane. Ethane is produced on an industrial scale from natural gas, and as a by-product of petroleum refining.

Ethane is typically transported in gaseous form by pipeline, but can be liquefied by cooling to minus 89°C (boiling point temperature at atmospheric pressure).

The primary use of ethane is in the chemical industry in the production of ethylene by steam cracking; alternative feed stocks are naphtha and liquefied petroleum gases (propane and butane). Ethylene is arguably the most important organic chemical. It is converted to polyethylene; to PVC (via ethylene dichloride and vinyl chloride monomer); to ethylene glycol (via ethylene oxide); and styrene (via ethyl benzene). Ethane is also used as an energy fuel.

The recent rise in US shale gas and oil output has been one of the most significant developments in the oil and gas sectors, transforming the global landscape in terms of production economics and trade.

Shale gas includes methane and higher hydrocarbons collectively known as natural gas liquids (or NGLs). The US Energy Information Administration (EIA), a widely recognized source of data on US energy production, defines NGLs as pentanes and LPG (ethane, propane and butane). According to the American Chemistry Council, “Growth in domestic shale gas production is helping to reduce US natural gas prices and create a more stable supply of natural gas for fuel and power. In addition, it is also leading to more affordable supplies of ethane”

Difficulties in storing ethane have created a glut, resulting in a ‘use it or lose it’ situation. Currently, 200,000 barrels per day are being ‘rejected’ – that is, left in the natural gas stream. Rejected ethane represents a potential surplus to drive increased domestic demand or exports. When domestic demand is insufficient there currently is no mechanism to export the surplus to balance the market. Ethane has historically accounted for more than 40% of the raw unfractionated NGL mix.

The prospects for US ethane exports reflect three key factors: infrastructure, price dynamics and timing

Over all, US ethane production capability is under-used, with approximately 0.2 Mn barrels per day (or 4 MnT per year) rejected in 2013. This under-used capacity to produce ethane will grow in the short term as potential production will rise faster than near-term domestic US demand.

The ‘surplus’ could rise to as much as 6 MnT per year in 2017 and perhaps 12 MnT by 2020.

Annual shipments of 1 MnT of ethane could provide employment for 0.18 Mn CuM of shipping capacity, assuming it is shipped to North Europe, 0.32 Mn CuM if shipped to South Asia and a similar amount to China if the Panama Canal is used.

The window of opportunity to tie up ethane exports and secure tonnage to serve this trade is now open to feed potential markets in Europe and Asia.

The Sheer volumes of US Ethane becoming available and economy of scale considerations have prompted a number of new liquefied gas carrier ship building designs. Contracts have been placed for semi- pressurized refrigerated ethane carriers of 27,500 – 36000 m3 capacity and fully refrigerated large ethane carriers of 80000 m3. The former are for transatlantic service and the latter for shipments to East and South West Asia.

Reliance Industries has signed a long-term agreement with Japan's biggest shipping company Mitsui OSK Lines for transportation of liquefied ethane from North America to India.

Mitsui will manage six very large ethane carriers (ships) that the Indian conglomerate is building at Samsung Heavy Industries. It will supervise the construction of 87,000 cubic meter ships and upon vessel delivery, manage the ships. The vessels are expected to be delivered in the last quarter of 2016. Each ship is priced at around $120 Million.

RIL plans to ship 1.5 million tonnes a year of ethane from its US shale joint ventures to its chemical complex in Gujarat.

India is also geared up for import of Ethane from US. This would benefit the energy and shipping sectors and provide one more source of energy import in the much needed oil and gas sectors.

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Development of Chabahar Port

The Port of Chabahar (or Chah Bahar) is a seaport in Chah Bahar in southeastern Iran. Its location lies in the Gulf of Oman. It is the only Iranian port with direct access to the ocean. The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia.

It is located in the south of Sistan and Baluchistan Province. Because of its establishments and ease of access to Oman Sea and Persian Gulf, long ago it was the center of business, trade and navigation.

The Iranian government has signed a MOU with the government of India to develop Chabahar port. India will get direct access to Afghanistan through this sea route after the completion of the project.  In Sept 2015, India announced development of an Urea production plant and Iran's associated infrastructure. Indian minister of transport pledged to invest around $1 billion for the development.  The port will be used to ship crude oil and urea.

India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest USD 85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.

The cargo terminals at Chabahar Port would provide Afghanistan’s garland road network system alternate access to a sea port, significantly enhancing Afghanistan’s overall connectivity to regional and global markets.

Touching upon Iran and India's ancient and historical relations, Iranian President in his meeting with Indian minister of transport, underscored that undoubtedly the level of mutual cooperation could be expanded day by day.

Pointing to Iran's transit position for connecting east to west and north to south, he stressed that the Islamic Republic could play a pivotal role in connecting India to Central Asia, the Caucasus and Eastern Europe via railway.

Noting the importance of North-South Transport Corridor and development of Iranian ports, the Iranian president stressed that Iran fully welcomes the Indian investors to make investment in construction of roads, railways and development of Chabahar port and other southern ports in Iran. Referring to the cordial relations between the two countries, the Indian minister of transport said New Delhi is fully ready to cooperate with Tehran on development of Chabahar port.

From Chahbahar port using the existing Iranian road network, a link up to Zaranj in Afghanistan and then using the Zaranj-Delaram road constructed by India in 2009, access to Afghanistan's Garland Highway can be made. This would establish road access to four of the major cities of Afghanistan - Herat, Kandahar, Kabul and Mazar-e-Sharif.

The port would open up new routes to Central Asia and the Gulf.

We are looking forward to the development of Chabahar port as it would provide an interface between sea and land routes between Iran, Afghanistan and India, and further north to the central Asian countries for trade and commerce, and mutual benefits.

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SEAFARERS - Providing a yeoman’s service

The shipping industry handles over 90% of world trade. This has led to a high growth in demand for the world fleet which currently stands at over 85,000 ships of nearly 1.2billion gross tonnage. Seafarers play the most important role in the manning and operations of the world fleet. They brave the seas, encounter the harsh elements, rough weather, long durations away from home and family, put in long hours of hard work and thus provide a yeoman’s service.

A key highlight of the STCW Conference 2010 was the IMO designated, “Year of the Seafarer,” which aimed at providing the maritime community with an opportunity to pay tribute to seafarers from all over the world for their unique contribution to society and in recognition of the facilitation of global trade in a hazardous environment.

The conference further designated 25th June as the “Day of the Seafarer” Thereafter, this day is being observed every year. This year whilst observing the day of the seafarer, IMO has also encouraged young people to consider a career at sea as a viable, attractive and enticing career option. A central plank of the campaign message was that seafaring offers unique opportunities to navigate the seas of the globe and encounter the wonders of the ocean, as well as the opportunity to experience a world of real adventure and interact with people from all over the world.

IMO Secretary General Sekimizu called on active and past seafarers to inspire the next generation by sharing their experience on social media. He encouraged officials who are already engaged in this vital professional world to reach out to the new generation; share their life and work experiences; inspire and encourage them to explore for themselves a career at sea or elsewhere in the maritime industries.

Seafaring opens the door to decent work and unique and enriching experiences.  Moreover, in running today’s modern, high-tech vessels, seafarers acquire skills and technical expertise that make them very well qualified for work in many shore based industries once their sea-going days are over.

The BIMCO/ISF Manpower Update provides the most comprehensive assessment of the global supply and demand for seafarers that are currently available. In accordance with their study of 2010, they have estimated a total global supply of 1371 thousand seafarers (624,000 officers and 747,000 ratings).

The 2010 Manpower Update suggested that while the supply and demand for ratings are more or less balanced there are still some shortages for officers, particularly for certain grades and for ship types such as tankers and offshore support vessels. We are now waiting for the 2015 Manpower Update.

The current situation in India is that there is enough encouragement and a large number of educated youth are eager to take up seafaring as a career. Unfortunately, although there are enough training berths in pre-sea institutions, but not enough berths are available for on-board training thus leading to a mismatch between training and placements. We can draw a parallel with medical professionals as a candidate training to become a doctor needs to complete an internship program in a hospital in order to attain an MBBS degree. Similarly, a cadet training to become a sea going officer has to complete the requisite on board training prior to certificate of competency course and examination.

Further, there is a surplus of ratings and junior officers, and a shortage of senior officers. Thus, some mechanism needs to be developed to balance the situation.

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