Thursday, September 24, 2009


For some time now we have held a conviction that like lawyers and doctors success in the marine field also requires a professional approach to a maritime career. Today we see that investment in training and development of marine professionals has lagged demand enormously and there is now consensus that there will be a worldwide shortage of qualified sea going personnel and downstream shortage of suitably experienced candidates for related industry jobs from pilotage through to surveying . Ultimately an attractive and rewarding sea career should see individuals who want to make their career at sea prepared to fund ( to some extent) their own training,

We have moved to use the maritime network to set-up a self-supporting system for young professionals .

The key in supporting young professionals from all over the world is setting-up new training concepts in cooperation with training facilities on shore and berths for practical training on board commercial ships.

We believe in the empowerment of young talents to take responsibility for their own training . Essentially the Student Empowerment Facility is a financial back-up system for young professionals. The young professional is able to choose and finance his personalized education program.

From an educators point of view you know too well that increasing enrolment at the shore based end is only half the solution- obtaining end to end training and sea time for professional is critical to a the individuals success in the industry.

The facts are that the following factors exist:

· Global shortage in qualified personal.

· A pool of young people who would like to work in the maritime

· Existing high quality shore-based training-facilities for
theoretical and practical training ( Such as AMU)

>From an Australian perspective with 35 vessels flying the Australian
flag and very little representation in Ship Ownership Australian students access to sea going berths is drastically reduced , At the same time internationally the bottlenecks to satisfying the demand are :-

· Funding system for young students without collateral.

· Preselecting process standard for students ( Reducing Wastage
Rate )

· Lack of training berth for practical training on board ships (
Access to timely training berths)

· Trainer access for students during their practical training on
board ships ( Ensuring Training Standards and reducing lead time to

We look to Industry , institutions and individuals who share a common interest in the development of personnel for the Marine Industry .

IMSBC CODE expected to enter into force on 1 January 2011.

The aim of the mandatory IMSBC Code is to facilitate the safe stowage and shipment of solid bulk cargoes by providing information on the dangers associated with the shipment of certain types of cargo and instructions on the appropriate procedures to be adopted.

The IMSBC Code may be applied now on a voluntary basis, and the new edition is recommended reading for all concerned with the standards to be applied in the safe stowage and shipment of solid bulk cargoes, excluding grain.

The IMSBC Code includes:

  • Fully updated individual schedules for solid bulk cargoes
  • New individual schedules for such cargoes as direct reduced iron fines, spent cathodes and granulated tyre rubber
  • New provisions about sulphur
  • References to the most recent SOLAS amendments
  • Relevant updated information from the 2008 edition of the International Maritime Dangerous Goods (IMDG) Code

This publication presents additional information that supplements the IMSBC Code, including the Code of Practice for the Safe Loading and Unloading of Bulk Carriers (BLU Code) and Recommendations on the safe use of pesticides in ships applicable to the fumigation of cargo holds.




Wednesday, September 23, 2009

FAIRPLAY : Long Term Asset Value

22 Sep 2009

GERMAN shipping banks and shipowners may be able to avoid crippling asset writedowns following approval of the new Hamburg Ship Evaluation Standard by PricewaterhouseCoopers. The formula for the calculation of a ship’s long-term asset value (LTAV), which takes into account charter employment, market prospects and historical asset prices, represents an alternative approach to value assessments. As a discounted cash flow method, it arrives at more conservative values than the extreme highs and lows recorded in the sale & purchase markets during booms and slumps. The deviation from traditional spot value assessments tends to be within a 15% corridor, the Hamburg Shipbrokers Association said. Banks and owners can use the scheme to back up higher ship value estimates than seen in recent ‘fire sales’ concluded under abnormal market conditions. Loan-to-value ratios on well-performing vessels can be kept under control under, averting covenant breaches. A survey by PricewaterhouseCoopers presented in Hamburg today found that the LTAV formula is a plausible and appropriate tool. Details of the standard, including forward interest rate curves and forecast periods, have been revised since its first introduction in February, to comply with German accounting standards. Both HSH Nordbank and Deutsche Schiffsbank have declared their intent to apply the formula for fleet valuations.



Tuesday, September 22, 2009


THE KG model has long looked to be the weakest link in the newbuilding financing fiasco. Up until recently, bankers have been afraid to add pressure, for fear of making the situation worse.

That may be changing. Klaus Stoltenberg, head of shipping and aviation at German bank NordLB, speaking at a conference in Hamburg last week, enunciated the banks' dilemma in stark terms: "Basically, we want to keep projects alive but we need adequate rewards," he said.

The KG financing scheme now seems like the kind of daft idea that could only be invented in the easy money atmosphere of a market bubble. KG houses collect money from small investors to finance a newbuilding via equity, covering about a third of the cost of construction, with the remainder financed via a mortgage underwritten by a bank. But because of a mismatch in timing common in financing new ships, the vessels are usually ordered before the KG houses collect the money. Banks make up for the gap by offering bridge loans.

Those loans are becoming very hard to justify, as the value of ships has declined in the crisis. Mr Stoltenberg offered an example of a loan for a fictional 5,300 teu container ship ordered in 2006 to be delivered in 2009. Capital required to be regulated under the Basel II regime would amount to about €481,000 ($710,000) in 2006. But if the vessel is delivered this year and cannot find employment, the capital required on a bank's books would be 25 times that much.

The reckoning due is not unlike the collapse last year in derivatives contracts based on underlying mortgage values, although the overall value, of course, of the KG market is much smaller. But similar to the situation with banks and CDOs, unsupported leverage was extracted out of an underlying deal involving private investors. And the ultimate outcome, when the dam breaks, may require a political solution.

Banks are as guilty in this cycle of virtue-less finance as the KG houses, and arguably, the small investors themselves. Yet, they are not villains for stating the reality that the business has become untenable. It's a relief that, via Mr Stoltenberg's comments, they are asserting common sense.

Certainly, drawing the line will be painful, but without the pain, a solution can never emerge. A zombie KG market is more damaging to the industry than one in which the parties begin to address their wounds


Wednesday, September 16, 2009


Business | Latest Business News | The Australian

Business | Latest Business News | The Australian: "ALL ORDS
S&P/ASX 200
4638.1097.80+2.15%S&P 500

Tuesday, September 15, 2009


Today , on the one year anniversary of the Lehman Brothers collapse in 2008 - and as a result of the tunmultuous roller coaster that is world liner shipping - Swire Group announced that the head offices of Swire Shipping at Sydney as well as the Parent CNCo in Hong Kong would move to Singapore- preserving in Singapore a core of 120 shipping professionals - better prepared for tommorrows tune- while for the 100 + individulas who will not make the cut -theres a very long silence.

Shipping - without the protection of regulation and capacity control and with no ability to attract govenment or other subsidies - has had to bear the burden of volatilty and risk ridden investments

If ,it doesnt kill you they said- It would make you stronger-

We wish all our colleagues well

Saturday, September 12, 2009

Ice. Navigation

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Japan's Mitsui O.S.K. Lines, Ltd.(MOL) says it has formed the concept for its next-generation vessels, which will be technically practical in the near future, by building on and refining technologies it has already developed and adopted.

The first is a next-generation, environment-friendly car carrier. MOL continues to work on concepts for other next-generation vessels such as ferries, bulkships, tankers, and containerships. MOL has named the concept car carrier "ISHIN-I (ishin one)," which stands for "Innovations in Sustainability backed by Historically proven, INtegrated technologies."

Main features are:

While in port, and during loading and unloading: Achieve zero CO2 emissions

Further develops the use of renewable energy for conventional car carriers. Realizes zero emission goal by adopting large-capacity solar-power panels and rechargeable batteries.

Under way: Reduce CO2 emissions by 50%

Adopts multiple new technologies to greatly reduce the vessel's burden on the environment. The ship achieves a 41% reduction in comparison (per unit) to conventional vessels with a capacity of 6,400 cars. CO2 emissions can be reduced by 50% on the larger capacity vessels envisaged for the future.

MOL has a special dedicated site explaining the concept in more detail. It's in Japanese only, but there's neat animation that's worth a look.


Thursday, September 10, 2009



The BSI has been pushing upwards since last week amid continued firm conditions in the Atl. The Supra/Handy markets should remain stable and firm. Pacific Basin was reported to have taken the MV EFFY N, 55,800 dwt, at USD 32,500 dely 10/15 Sep Morocco to New Zealand. Handymaxes open in USG are achieving in the low 30's for trips to the Med and the market there is volatile with more enquiry. Bl.Sea...
With still lack of tonnage in the N.Cont, rates climbed usd 4000 from last week with TA’s fixing arnd usd 25,000, even with less activity in the Atlantic this week. Fronthauls fixed usd 32,000 via St.Lawrence, and usd 31,000 via S.America, up USD 2000 from last week. Little activity in the period market though, 7/9 months fixed usd 26,500 end last week. Steady improvement of rates in the Pacific. ...
As the market was developing, it seems the big question being raised was when the freight rate for an Australia to China round would break USD ten. That was done earlier this week, at USD 9.75 on an overaged vessel. For Baltic type vessels, market has however stabilized at low tens. In the Atlantic tonnage has been tighter, and yesterday charters had to pay higher than last done for a transatlantic round, with Puerto Drummond to Rotterdam at USD 15.25 pmt. Last week and beginning of this week th...


Wednesday, September 9, 2009

Timor Sea Oil Rig Leak : PTT Exploration & Production Pcl said it may take 50 days to stop an oil and gas leak off northwest Australia as marine authorities fight to prevent the slick harming migratory whales and breeding turtles. (News)•
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Wednesday, September 2, 2009


· The Shipping Markets experience continued volatility
· A system to reduce coal ship queues off Newcastle has been thrown into disarray with approval for an interim agreement between coal companies being revoked by Australia's competition watchdog ACCC
· Global steel production was down 19.9% to 652.9 million tons for the first 7 months of 2009 compared with the same period a year ago. North America posted a 41.6% fall in year-to-date steel production while European production reduced of 42.1% during the same period
· The time charter rates for cape size ships, are expected to reduce about 50 per cent from the current price of $38K USD a day to low 20K. OECD predicts a 16 per cent drop in world trade for all of 2009.