1. CSO, Gulf Energy Maritime
Diversity of Shipping
Capt. Robert Buckham
CSO, Gulf Energy Maritime
MIEVOM 22nd April 2018
11/8/2018

2. Overview of GEM Began trading operations in 2004.
4 shareholders - 3 major shareholders from GCC
Currently have 19 vessels in fleet - Chemical and Product Tankers ranging from 37,000 to 115,000 dwt.
Worldwide trading – Loading Arabian Gulf proceeding Europe, Far East, Africa, Australia and the Americas
Employ approximately 750 officers and ratings, own manning agency in India and 50 office staff in Dubai
Officers are predominately Indian with Filipino crew, also use Romanian, Croatian and Russian officers and 4 vessels have Indian crew
Vessels on TC with several oil majors as well as spot fixing vessels on the open market using in house chartering
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3. Diversity of Shipping
All companies conduct their business differently. End goal is the same – differing strategies - but!!!
Purpose of every business – “Earn Money”
Ships earn “Freight” by carrying and discharging a cargo
Industry demands shipping business is conducted safely, for the respective charters, the crew and safeguarding the environment
Discuss:
Commercial Market
What cargo – oil, chemical, gas?
How do we get the cargo?
How do we prepare a ship for the cargo – Its Importance, Issues
Legislative, Industry and Company safety
Security – Not just piracy
Industry Issues
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4. The “Commercial Market”
Tanker “rates” the amount shipowner is paid per day, is driven by the balance between demand and supply.
Tanker demand market has two main drivers:
Oil demand from the Consumer
Oil supply from OPEC, Oil Trading Companies or Storage
Tanker supply market is driven by three main factors and influenced by one-off factors – ships used as storage or sudden price changes
Ships currently in service – Total 4913
New build order book – On Order 513 by 2021
Scrapping and removals - New Regulation, Old Age, Market changes
Ships in service Today VLCC=723;Suez=508;Afra=979;Panamax=434;MR=1417;
Handy=852 = Total 4913.
Cost USD of VLCC 80-87m; Suez 50-52m; Afra 41-46m; MR 34-36m
130 VLCC cargoes from AG per month – therefore “fierce” competition
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5. Cargo - Type of Ship
Oil Tanker (Dirty – crude oil) Generally large ships such as Suezmax - 160k Aframax - 110k, VLCC - >180 to 320k and ULCC - >320 Dwt
Product Tanker (CPP or DPP) Generally 55,000 to 120k Dwt
VLCC 300 to 330 metres, 58 metres beam, depth 31 metres (draft >21 metres)
ULCC up to 470 metres beam 60 metres
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6. Cargo - Type of Ship
Chemical ( Type 1, 2 or 3 dependent upon environment and safety hazard of cargo) Most are type 2 and 3 as type 1 very specialized. Ships generally 5 – 35K. Tanks of stainless steel or protective coating such as epoxy or zinc
Specific liner trade use K
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7. Other - Type of Ship
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8. 11/8/2018

9. How do we get a Cargo
Oil majors and energy trading companies have access to refineries
Brokers working on behalf of a client will offer a cargo for transportation
Brokers approach owners and if cargo is of interest voyage estimate is conducted - factors considered, vessels readiness, location of vessel, tank cleaning preparation, cargo quantity, bunker consumption and Charterers
Broker will relay indication to the Charterer and if interested the Charterer will request a firm offer.
Firm offer will include the main terms of a CP with a reply time – Counters - ‘on subjects’ once main terms are agreed
Approvals – load port, discharge port, vessel certificates
Voyage orders received
11/8/2018

10. Vessel and Tank Preparation – Importance
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11. Considerations
Owner is responsible for preparing the tanks – independent inspection by surveyors
Owners is responsible for the safe carriage of the cargo and delivery of the cargo - Bill of Lading
Require competent, experienced persons for operations especially on chemical or gas ships – Cargo endorsements
Time frame for cleaning can be several days to many weeks depending upon the last cargo carried and the next cargo loading
Commercial pressure upon the Masters and crew to complete the job
Work load upon the crew – 18 to 24 persons onboard
Work and rest hours, fatigue
Health issues – last cargo, dangers of explosion, inert gas, enclosed space entry and PTW - Safety
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12. Legislative Safety
Safety First - taken very seriously – Number 1 element
SOLAS – Introduced in 2014 after Titanic
Marpol – Introduced in 1973 and Mandatory 2nd October 1983
ISM Code – Mandatory 1st July 1998
MLC - Seafarers bill of rights Mandatory 20th August 2013
These are regarded as “4 Pillars of Safety and Security” for the Quality Shipping Industry
Seafarers are 27.8 times more likely to suffer work related fatal injuries than shore workers
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13. Industry Requirements for Safety
International Safety Management Code (ISM) DOC - Safety Management System – Policy and procedures for safe operation, safe working environment - assess all identified risks to its ships and personnel - scope for continual Improvement - Achieved by:
Internal Audits – 1st Party by Company on its vessels
External Audits - 3rd Party – Class Certification
Commercial Assessments – 2nd and 3rd Parties – TC TMSA
Flag State Inspections – Compliance Convention and Legislation
SIRE Inspections – Oil Major Inspections
Port State Control – Compliance and Standard of Shipping within its territorial waters
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14. Company Requirements for Safety
Develop a “Safety Culture” – Onshore and Onboard – Promote company values - Shared perception – every body doing it right
Leadership – Office Involvement from the top
Motivation – Happy seafarers?
Well Trained – Shipboard and onshore
Training days onboard – Familiar with equipment
Training drills – Mandatory and Regulatory
Safety Trainers visit – 10 day each year
Officer and Crew seminars – Jollyboys outing and Family days
Every job is Risk Assessed – hazards mitigated, toolbox meeting, BBS and stop work cards
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15. Company Requirements for Security “Documented Procedures” to Identify Threats of
Petty Theft
Vandalism
Stowaways
Cargo theft
Inadequate port security
Trafficking of people, arms or drugs
Smuggling
Piracy
Sabotage and arson
Terrorism
Cyber security
Travel policy
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16. Issues Safety and Security
Shipping High Risk Business – Reputations!
Shortage of competent seafarers – The Human Element
Long periods away from home, social isolation, long work hours, fatigue and quality rest
Commercial and regulatory pressures – more frequent inspections and admin tasks – more scrutiny from everyone
Stress – Compounded when transiting HRA areas – Why?
Social Media – Facebook, whatsapp, twitter; Social Media Policy to ensure ‘Rest”. Social media groups
Mental Health – ITF study 600 seafarers, 14% often depressed, 50% sometimes depressed, 52% know onboard persons depressed and 23% know persons considered suicide - Australia issued Maritime Safety Awareness Bulletin in March 2018 and studies are being further conducted in UK
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17. Shipping of Diversity
Thank you
11/8/2018