Horizons

News and information for the marine industry

June 2010 Issue 29

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Horizons

News digest

An insightful look at the environmental issues facing the marine industry

In March, Lloyd's Register launched Shipping and the environment, a publication outlining the environmental challenges affecting shipping today and the ways in which Lloyds Register is responding to them through research, involvement in emerging legislation and standards, and the development of services.

To assist owner and operators in understanding their regulatory commitments, it features a pull-out roadmap which presents the key forthcoming environmental legislation from the IMO and highlights compliance and entry into force dates. Meanwhile, a more in-depth section takes a closer look at six key areas fuels and

exhaust emissions, ballast water management, ship recycling, energy, volatile organic compounds and hull coatings and the issues and legislation surrounding them. Shipping and the environment also presents the wide range of environmental services we offer to help owners and operators operate in a more safe and sustainable fashion.

Surveyor training in China

The Marine Surveyor Training Institute (MSTI) in Shanghai completed its second surveyor training programme in April, with16 students coming from 8 offices in China and Greece. The course is aimed at helping new surveyors to apply consistent standards in surveys and reporting through structured theory in the classroom and intensive field training under the guidance of MSTI mentors. All 16 surveyors successfully graduated, with authorisation experience in new construction, existing ship and marine components.
Front cover: Adrianos Zaphiropoulos, Senior Surveyor in Charge, Marine Operations, Piraeus

Maersk and Lloyds Register team up for marine engine bio-fuel tests
Lloyd's Register is to play a major role in a two year programme to test the suitability of bio-diesel for use in powering marine engines. The feasibility study will take place on board the Maersk Line container ship, Maersk Kalmar. Collaborators in the biodiesel project are Maersk Line, Maersk Tankers, Maersk Supply Service, Maersk Drilling, Maersk Ship Management, Lloyds Registers Strategic Research Group, and a consortium of Dutch subcontractors. The project is being part funded by the Dutch government and co-ordinated by Maersk Maritime Technology. Initially, the scope of the tests will begin using a blend of between 5% and 7% biodiesel, with the blend percentage being steadily increased. One of the aims of the tests is to establish the degree to which issues experienced by the automotive industry in the use of the bio diesel FAME (fatty acid methyl esters) will be duplicated on board ship, in particular the impact on storage stability, handling and its subsequent use in the engine. Where adverse effects are arising it is hoped to find solutions to overcome them. says Kim Tanneberger, Specialist of Lloyds Registers Strategic Research Group (SRG).

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Lloyd's Register wins two major MLC contracts

In the latest deal, Lloyd's Register Middle East Area negotiated a contract with Dubai based tanker operator Gulf Energy Maritime (GEM) to provide Maritime Labour Convention (2006) gap analysis and certification services to GEM, prior to the International Labour Organisations (ILO) new maritime labour convention, MLC, 2006 which is expected to come into force in early 2012. The deal for GEMs fleet of 17 tankers, demonstrates GEM's intention to ensure compliance well ahead of implementation. Its signing follows the announcement of a similar deal with V.Ships. Lloyd's Register was approached by V.Ships Shipmanagement Division to complete an ILO gap analysis, identifying any areas for development, as well as training and certification services for all V.Ship Shipmanagement entities, providing a unified and global approach to managing MLC, 2006 compliance. Lloyds Register has now completed more than 100 MLC, 2006 trial inspections worldwide and has more than 45 trained ILO qualified inspectors able to provide MLC, 2006 services a number that will grow as further inspectors are trained.

LNG 16 in Oran
We recently exhibited at LNG 16 in Oran, Algeria in April, at the height of the disruption caused by the volcanic ash cloud. Over half the delegates scheduled to attend were unable to travel, including several from Lloyd's Register. However, we maintained a presence through Salah Boudemala, our Training Manager from Dubai. More than 70 delegates from around the world did manage to make it to what is the largest event in the world dedicated to the liquefied natural gas industry, and teams from Sonatrach, Medias, members of the Algerian senate and parliament attended the Lloyd's Register stand.
Algerias Minister of Energy and Mines, Mr Chakib Khalil visits the Lloyds Register stand.

LR classes accommodation ship for relief workers

The International Shipping Partners ship Sea Voyager was accepted into Lloyds Register class following two weeks of sea trials in Jacksonville, Florida, prior to taking up a new role providing accommodation for World Food Programme staff engaged in relief efforts in earthquake-stricken Haiti. Sea Voyager had been in lay-up since 2002, however Lloyd's Register North America, Inc. surveyors worked closely with the management company, and the US Coast Guard to verify the vessel was in compliance with all necessary rules and regulations before its departure for Haiti.

Latest Ballast Water Treatment Technology guide published

The third version of Lloyd's Register guide to Ballast Water Treatment Technology is now available. First launched in 2007, this latest version of the guide provides further independent and impartial information on commercially available and developing technologies for ballast water treatment. The global requirement for ballast water treatment arises from the International Convention for The Control of Ships' Ballast Water and Sediments. This requires certain ship types to use treatment systems which makes the treatment of ballast water one of the most significant environmental and operational challenges facing the marine industry today. 3

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Lloyds Register Technical papers 2009

Statutory approval
From March, Lloyds Register was authorised by the Netherlands Shipping Inspectorate to perform all statutory work on their behalf for inland waterway vessels. Lloyds Register is the first classification society which has gained this authorisation. Lloyd's Register has trained 30 surveyors in the Western European area on the statutory legislation. Pilot projects have been set up during the last six months in preparation. NSI has also asked Lloyds Register to take over the statutory work on dozens of new building projects which are in an early stage of construction. For more information please contact the WEA Inland Waterway product manager, Bas Joormann at: bas.joormann@lr.org

Lloyds Register showcases latest technology research

Lloyd's Register hosted the third in its series of Technology Days at the National Maritime Museum in Greenwich earlier this year. A total of eighteen papers on subjects ranging from what the Marine industry requires from Classification societies, to the future of nuclear energy in ship propulsion, formed the basis of what is now becoming a regular event in the Marine industry calendar. John Carlton, Global Head of Maritime Technology at Lloyds Register said: 2010 marks Lloyds Registers 250th anniversary. In recognition of this landmark, the introduction to the 2010 Technology Days took a look back over the technical changes that have shaped shipbuilding in the last 250 years, as well as our responses to them. We also used the event to present just some of the ways in which we are applying research and technology today to help make ships safer and more sustainable, both through our own global network and through co-operation with others. All the papers presented in the course of Lloyd's Registers Technology Days can be accessed on the Lloyd's Register website at: www.lr.org/technologyday

Lloyds Register - proud to be first foreign class society authorised by the Japanese Government
Lloyd's Register has been confirmed as the first foreign classification society to be formally authorised by the Japanese Government to carry out surveys on ships flying the Japanese flag. Under Japanese legislation, Lloyd's Register has been designated as a Recognised Organisation by the Japanese Government and is granted delegated responsibility for statutory surveys and permission to issue statutory certificates. Prior to the authorisation of Lloyds Register, only the domestic classification society and fellow IACS member, ClassNK, has held such recognition. At a ceremony held at the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in Tokyo, Mr Yoshikiyo Ono, the Director-General of the Maritime Bureau of MLIT presented the official certificate of registration to Chris Walters, Lloyd's Registers Marine Operations Director.

Kastos is latest addition to Eletson fleet

MV Kastos was delivered to Eletson Corporation of Greece and christened by Laura Poulovassilis at a naming ceremony on March 16. The tanker was built by Hyundai Mipo Dockyard (HMD), Ulsan, in South Korea, to Lloyds Register class. Following the Eletson tradition of naming ships after Greek islands, it was named after Kastos, a small island in the Ionian archipelago Apostolos Poulovassilis, Regional Marine Manager EMEA, travelled to Ulsan to attend the ceremony with his daughter Sofia and his wife Laura Poulovassilis, who had the honour of becoming sponsor and godmother of the vessel. 4 Among the Eletson Corporation, HMD and Lloyds Register representatives attending the ceremony, were Costis Kertsikoff, CEO, Eletson Corporation, WG Choe, HMD President and CEO, and Luis Benito, Country Manager for Korea.

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Contents

Driving Lloyd's Registers commitment to Greece

Tom Boardley, Richard Sadler, and Apostolos Poulovassilis are the team responsible for keeping Lloyd's Registers historic bonds to Greek shipping alive, and for driving that relationship into a prosperous future.

Lloyd's Register asks him for his assessment of the state of the shipping industry today.

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Lloyd's Register's highest authority on classing matters

Lloyd's Register's Classification Committee and its Executives offer a consistent, fair and uncompromised approach that ensures that when it comes to Fleet Quality Management, correct decisions are reached irrespective of any commercial implications.

... for Greece, shipping means international premiership and reputation...

Thinking local, with a global view

Lloyds Register in Greece has been close to the Hellenic maritime tradition since 1888 and Hellenic Lloyds recognises that history and the leading role that Greece continues to play in shipping today, writes Apostolos Poulovassilis, EMEA Regional Manager.

Theodore E. Veniamis is the President of the Union of Greek Ship-owners and founder, Chairman and Managing Director of the Golden Union Group, the Piraeus-based shipping company. Here, Lloyd's Register asks him for his assessment of the state of the shipping industry today.

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Devolved Classification Executive Committee (DCE) in Greece
Hellenic Lloyds Marine Operations is responsible for 26% of the worldwide Lloyds Register Classed Fleet and is in daily contact with our clients, always ready to cover clients needs and expectations.

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The wisdom of maintaining a war chest

7 Captain Panagiotis Tsakos is the founder of the

Tsakos Group of Companies which has operations around the world, and including the NYSE-listed Tsakos Energy Navigation Ltd. Here, Lloyd's Register asks him for his assessment of the state of the shipping industry today.

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Extended Dry Dockings provide flexibility to qualifying operators
Recent interest has been shown in Lloyds Registers pioneering work in piloting a 7.5 year Extended Dry Docking survey.

Victoria type double-skin bulk carrier

Greek owners have always been world-leaders in the dry bulk market, and one of the most successful new designs, pioneered by Greek owners in the last decade, is the Victoria type double skin bulk carrier, writes Spiros Contopoulos, Victoria Steamship Companys Technical Director.

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Lloyd's Register in Greece
Lloyds Register has been working to serve the needs of Greek clients for over 180 years a relationship that began with the appointment of D. Graham as Lloyds Registers first surveyor to Piraeus in 1888.

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Cleaner air and more oil in the tank Teekay is helping an industry under pressure
Reducing VOC emissions from crude oil tankers helps cut the environmental impact of ship operations and saves on hard won resources, writes Teekays Vice President, Technology Development, Dr Hans Richard Hansen.

Victoria Steamships commitment to a clean, efficient future for shipping is demonstrated by its support for the environmental R&D charity, Greenwave.

20 12 Engaging with people and community

The interests of the community and of the environment have been at the heart of our business since our foundation in 1760.

The sea is always alive for the legendary Greek traders and operators of ships
We have reproduced material from a 1978 100 A1 written to coincide with Posidonia, 32 years ago. Many of the concerns expressed by shipowners then remain the same today.

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environmentally sound operation of our vessels
Almi Tankers S.A. has become the first company worldwide to sign up their fleet to FOBAS Engine, Lloyds Registers recently launched performance monitoring service.

22 the safe, reliable, efficient and

Promoting matters Marine
As part of its Corporate Social Responsibility initiative, Lloyds Registers independent charity foundation, Lloyds Register Educational Trust (LRET), is very active in Greece, funding pre-university and university education.

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Reflections from a troubled past

In the Spring of 1978, Lloyd's Register gathered together a group of the leading Greek shipowners to talk about the then crisis facing Greek shipping. Their views formed the basis of a lengthy article in Lloyd's Registers magazine of the day, 100 A1.

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Strategic Research initiatives in Greece
The Lloyds Register Strategic Research initiatives in Greece cover the complete spectrum of methodologies and technologies of interest to the Greek marine customer base, writes Spyros Hirdaris, of Lloyd's Registers Strategic Research Group.

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Whats on the radar
Our environmental roadmap outlines the key existing and forthcoming legislation from the IMO up to the end of 2016, identifying future compliance dates and emerging regulations.

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its in the owners hands, how were going to handle this...

Harry N. Vafias is President and Chief Executive Officer of StealthGas Inc. and has been actively involved in the tanker and gas shipping industry since 1999. Here,

44 25 Classification News highlights 46

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Driving Lloyd's Registers commitment to Greece

Photo: Mat Curtis

Tom Boardley, Richard Sadler, and Apostolos Poulovassilis are the team responsible for keeping Lloyd's Registers historic bonds to Greek shipping alive, and for driving that relationship into a prosperous future
Lloyds Registers Piraeus office at 87 Akti Miaouli is at the heart of our marine activities with Greek owners representing over a quarter of our classed fleet. Greece has been a vital client base for more than a century with LR playing its part in the growth of Greek shipping. We have 140 staff in our Piraeus office and in our other offices across Greece. On ships and in shipyards world-wide you will also find our Greek nationality surveyors, engineers, naval architects and technology leaders supporting our classification mission. Effective engagement with the people running ships is essential. As well as our day to day interaction with owners and managers, the Hellenic Advisory Committee is one of our leading shipowner committees enabling communication, providing guidance and a sounding board for our policy and service delivery. Recent meetings have set the agenda for many of our global meetings and policy development. Shipping, as we all know, is a volatile business. This edition of Horizons includes a look back at a past period of crisis - in the 1970s. Greek shipping has grown and thrived since then. But through all shippings highs and lows, Lloyds Register has remained constant in supporting safety and environmental protection in Greek shipping. You can be sure we will be doing our utmost to support the industry today and tomorrow as we focus on the future. Tom Boardley, Marine Director, Lloyd's Register With the decline of the UK as home for shipowners and operators, we now think of Greece as our home market away from home. With such a large share of the Greek classification market and with so many Hellenic nationals working for us world-wide, our business and our people are the perfect reflection of the fact that we feel at home in Greece. In an ever more competitive world, the relationships that are supported by Apostolos Poulovassilis and his team, and the levels of service they provide, reflect our commitment to the Hellenic maritime industry. We will continue to invest in the Greek maritime industry and we will support the efforts towards safer and greener shipping. We will assist and contribute our experience towards better regulation of Hellenic and global shipping. As the industry evolves we will continue to adapt our services as we have done over the past 250 years of history with technology, safety and independence being at the heart of our activities. Piraeus and greater Athens is a vibrant centre for ship owners and managers. The connection between ships, their managers and their crews giving real vertical management and understanding. This is the strength of Greek shipping which we consider to be as strong as ever. We have never stopped investing in our Greek staff and operations as we need to continue to expand and improve our service delivery. Our aim is always to remain the leading name in providing marine services to Greek owners and operators. Richard Sadler, CEO Lloyds Register

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Thinking local, with a global view

Lloyds Register in Greece has been close to the Hellenic maritime tradition since 1888 and Hellenic Lloyds recognises that history and the leading role that Greece continues to play in shipping today, writes Apostolos Poulovassilis, EMEA Regional Manager
We have more Greek people working for us today than ever before and we are constantly looking to enhance our services and service delivery capability and capacity in Piraeus to meet the ever increasing and more sophisticated needs of our clients, especially in the current challenging circumstances. Piraeus has been, is, and will clearly continue to be a key business centre for us. As we invest and expand in this market we also need to demonstrate that although we are an integrated global business, we are in tune with the issues and trends of the Greek local maritime community and are in a position to develop and continuously improve our services. We offer a broad portfolio of environmental services providing environmental guidance and support to our stakeholders going far beyond compliance with mandatory rules and regulations. Lloyds Registers Guide to the Inventory of Hazardous Materials (Green Passport) was published in May and is another example of the leadership approach we are taking in preparing the industry for new regulations for recycling, as scrapping is now known. It is the first such guide available to reflect the requirements of the Diplomatic Convention on ship recycling held in May in Hong Kong. Ceres LNG Services, OSG Shipmanagement (GR Ltd), Dorian Hellas, Delta Tankers and Eletson Corporation are all leading Greek clients who have sought our help in their wish to move ahead of regulatory requirments by providing Green Passports for the ships. Further to climate change and carbon management there are of course a lot of other environmental challenges to be met, one of the most critical being the Ballast Water regulations, mandating the retrospective installation of treatment systems on vessels with a keel laying date of 2010 onwards, when the respective International Convention becomes effective. Lloyds Register is assisting its clients through its Ballast Water Management Services. Providing tailored solutions, we help shipowners to develop a safe, practical strategy to reduce the risks associated with ballast waste management, meet environmental responsibilities and comply with the relevant IMO guidelines.

Towards a safer and more sustainable marine industry Shipping is under increasing pressure to comply with evolving regulations and become cleaner and greener. Our clients face continued pressure for transparency, environmental stewardship, corporate responsibility, profitability and all of the above under the common denominator of safe operations. In other words, the command for sustainable business is now more intense than ever before. Our clients are urgently looking for expertise, experience and services in support of managing compliance with new environmental regulations. We believe it is crucial that these are provided with the assumption that our industry needs to be sustainable balancing economic, social and environmental issues. We are increasingly focusing on new services ensuring safe and responsible supply chains.

Apostolos Poulovassilis was appointed Regional Manager for Lloyds Register Europe, Middle East and Africa (EMEA) in 2009 and is based until today at the Piraeus office. Apostolos Poulovassilis first joined Lloyds Register in the UK in 1989, worked as a marine surveyor in a number of key locations until 1996, and then took up a number of managerial positions before being appointed in his current role. Milestones of his career with Lloyds Register has been his appointment as Area Manager for Greece, Eastern Mediterranean and Adriatic in 2003 and as Managing Director of Hellenic Lloyds S.A. in 2007.

Continued >

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MV Kastos on sea trials

Further, Lloyds Register has recently published the third edition of its Guide to Ballast Water Treatment Technology which provides independent and impartial information on commercially available and developing technologies for ballast water treatment. We aim to the continuous development of our services towards supporting our clients with ensuring high levels of performance and safety within their operations. Lloyd's Register has recently launched its new service FOBAS Engine which offers a significant increase in day-to-day knowledge of operational engine performance. FOBAS Engine provides a clear indication of performance, lubrication and wear conditions for slow-speed two-stroke marine diesel engines. This is achieved through detailed analysis of engine performance variables combined with advanced dilution analysis of used cylinder, fuel and system lubricating oils. Adopting the best practices is very important to the benefit of the shipowners, in order to ensure the structural integrity of their fleet, minimize the maintenance and repair costs, and protect

the environment. Its through best practice that business sustainability as well as sustainability of the shipping industry in general can be attained. Managing the human element Lloyds Register is in a unique position to have deep insight into the fact that performance and safety crucially depend on skilled human behaviour and is a world leader in human factors integration. In order to deliver and maintain even higher levels of performance and safety, it is important that human factors issues are considered in relation to asset operations and maintenance. Through our acquisition of Human Engineering, Lloyds Register is supporting organizations within the marine sector to ensure that human factors requirements are reflected in the way vessels are designed, constructed, operated, maintained and managed through their life-cycle. We are able to provide input into a variety of areas including: specification and assessment of manning levels, identifying skill requirements and training needs, incident investigation, developing a positive safety culture as well as integrating human factors into safety management systems.

Following the adoption of the Maritime Labour Convention 2006 (MLC 2006) by the International Labour Organization (ILO), setting minimum standards in specific areas relating to the health, safety and welfare of seafarers, Lloyds Register has played a leading role in developing in the Hellenic Lloyds S.A. offices in Piraeus as a dedicated consultancy service proposing to owners and managers a complete action plan. We provide all the general information needed to get a shipping company started on the road to compliance in a complimentary CD. Once a shipping company has reviewed all of this information including the details on the MLC 2006 checklists then Hellenic Lloyds has the expertise to provide a wide range of training courses, advice, gap analysis tailored to the needs of each individual company. Hellenic Lloyds will be authorised by the majority of Flag Administrations to carry out the ILO MLC, 2006 Inspections and issue the required certification. In Greece, our strategic aim is to cover the complete spectrum of subjects and areas of interest to the Greek maritime community.

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Victoria type double skin bulk carrier

Greek owners have always been world-leaders in the dry bulk market, and one of the most successful new designs, pioneered by Greek owners in the last decade, is the Victoria type double skin bulk carrier, writes Spiros Contopoulos, Victoria Steamship Companys Technical Director.

In 1999, on behalf of Greek principals, the London-based Victoria Steamship Co. ordered the construction of the first of a series of six of a new design of 54,000 dwt Supramax self discharging bulk carriers to be built at the New Century, shipyard in China. Supramax is defined by its dwt of between 40,000 60,000 dwt, with a maximum

length of 190m and maximum Panama canal beam of 32.25m Today, more than 80 of these Victoria type are still trading world-wide. The first of class, the Apollon, was delivered in 2002, with the last, the Avra, sailing from the shipyard in January 2004. Continued >

Victoria-type MV Aris, open hatch double skin bulk carrier in heavy weather, in the Indian Ocean

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With broad hatches, high cubic for a doubleskinned ship and four high-capacity MacGregor Hagglund cranes with 18.5m3 electro-hydraulic grabs, the Victoria design has proved itself in the world-wide bulk trades, and the design has proved a major improvement performancewise on single-skinned designs. In single hull ships the shell plate all that separates the cargo in the holds from the sea the temperature differential between the sea and the cargo hold creates condensation inside the hold. As a result of this cargo adheres to the shell plating between the shell frames making it difficult to clear during discharging operations, without the use of mechanical means like bulldozers or by employing costly workforce. Both contribute to substantial time delay and damage to vessels steel structure and coating in the holds. by an order, on behalf of clients, for another 43,000 dwt vessel in Japan and orders for the purchase and modernisation of a number of Brazilian vessels. In 1999, under client instructions, the Company ordered the construction of the first of a series of the eight Victoria double skinned Supramax, selfdischarging bulk carriers of 53,806 dwt in China. In 2006 the Company moved from their original London-based premises near Liverpool Street Station, where they had been since 1953, to larger offices at International House overlooking the Tower of London and the River Thames.

Loading coal at anchorage in Indonesia.

History of Victoria Steamship

The Victoria Steamship Co. Ltd., formed in 1946 by the late Mr. N. A.Apodiacos as a ship and insurance brokers and London agents, was named after his mother Victoria, but lay dormant until 1953. When the late Mr. P. A. Palios became a partner and Director, the Company commenced operations with four war-built Liberty and Empire class World War Two-vintage cargo ships and one pre-war vessel. By the 1970s the Company had expanded to represent 10 clients and over 30 ships. During the 1970s the Company placed, on behalf of clients, orders for four newbuildings in Japan. This was followed

Victoria Steamship in the 21st Century

When Victoria first went to China to build their ships in late 1999, they were pioneers. Much has changed since then. The New Century Shipyard in Jing Jiang City, on the Yangtze River in Jiangsu province, has grown as the Chinese shipbuilding industry has emerged as a world leader. In 1999 the yard covered an area of about 150,000 m but now the New Century Shipbuilding Corporation (NCS), comprising New Century Shipbuilding Co Ltd ( NCS ) and New Times Shipbuilding Co, has grown to about 1,620,000 m2, including a marine design and research institute and a technology centre.

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Victoria-type MV Afros

In the double skin hulls the hold is separated from the sea by the double skin, which has a width spacing of 1m and therefore no condensation from sea temperature differential develops in the hold. Double skin ships are not popular with the shipyards as they are not friendly in their construction, since during block erection one has to align two skins instead of one, which is the case on single hull ships. However the benefits in maintenance of the holds and avoidance of hold damage are immense. The smooth holds, with no visible steel frames, allow for rapid loading and discharging, avoiding additional labour costs and delays in clearing any cargo solidly stuck between shell frames, whilst at the same time avoiding any mechanical damage to ships shell frames or structure

when using bulldozers for removing any cargo held between shell frames. The saving time in discharge averages between 1.5 and 2 days. In addition the cleaning and maintenance of the holds are far easier and quicker than the framed holds. At the time of ordering the ships it seemed likely that double-skinned bulk carriers would be mandated by IMO. However, by the end of 2003 it was clear that this would not happen, although the IMO did require that any new orders for such ships would require a width of 1.8m between shell plating in all double-sided ships. This has substantially affected the cubic capacity of subsequent double-skinned designs but with a space between plates of 1.0m, the

Victoria types retained a high cubic measurement with the benefits of smooth holds. Their large crane and grab capacity is almost unrivalled at 40 tons S.W.L and 18.5m3 respectively. This ensures that loading times can be cut by between 3050% when, as they commonly do, the ships load and discharge using the ships own gear. The vessels mostly trade in carrying coal from Indonesia to India and iron ore from India to China. Before the Piracy incidents in the India Ocean and Red Sea the vessels would carry steel products from the Black Sea to China or China to Europe. Continued >

Victoria-type bulk carriers large crane and grab capacity is almost unrivalled at 40 tons S.W.L and 18.5 m3 respectively.

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Victoria Steamships commitment to a clean, efficient future for shipping is demonstrated by its support for the environmental R&D charity, Greenwave.

Harnessing the wind

Greenwave is a UK registered charity that exists to remind the shipping industry of its environmental obligations and to find practical, meaningful and affordable ways to meet them.
It achieves its objectives by funding research and development of emission reduction technologies to a fully developed and sea-trial stage, independently verified and type approved by leading classification society, Lloyds Register. The charitys R&D team is made up of aerodynamics and hydrodynamics experts and based both in New Zealand and the UK, and their work is focused on developing systems that will deliver substantial reductions on harmful emissions. Wind Engines are one of their projects, and the charity has been looking at a concept based on the Flettner Rotor, a spinning rotor that successfully sailed the Atlantic back in 1926. Wind tunnel tests carried out by Greenwave have established that thrust developed by a Flettner rotor is 8 to 10 times more than the thrust developed by sails of equal surface area, and its team have since carried out a series of performance, handling and stability tests on a scaled wind engine aboard a 25:1 scale model at Warsash Maritime Academy in Southampton.

Under the supervision of Lloyds Register, the model test results showed that wind assisted ship propulsion can produce significant fuel and emissions savings in favourable winds. The wind engines were also tested successfully in manoeuvring and crash-stopping of the vessel when counter rotated. The results shown by the model ship, lead to a decision to build a full scale rotor.

A full scale prototype, 17m high and 2.3m diameter, was fabricated and raised at the Port of Blyth in the North East of England, on a site close to the sea where strong winds are often experienced. The entire procedure with all the required testing equipment for the evaluation of the results was monitored by a Lloyd's Register surveyor and the tests were witnessed by Lloyd's Registers Technical Investigation & Analysis department who verified the results. The process of manufacturing and assembling the wind engine has proved an important learning curve for future development, and the next stage will be to develop and construct two improved type wind engines, which are to be installed on a sea going ship, for sea trial tests in actual sea conditions. The Wind Engines, once implemented, can reduce Greenhouse gas emissions and other exhaust harmful emission like NOx and SOx by an average of about 13% per ship per year which will make it the technology that delivers the most savings within this industry.

Top: Demonstration model at Warsash, showing positions of Flettner rotors, Right: Flettner rotor prototype at the Port of Blyth

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The sea is always alive for the legendary Greek traders and operators of ships

We have reproduced material from a 1978 100 A1 written to coincide with Posidonia, 32 years ago. Many of the concerns expressed by shipowners then remain the same today.
In this cyclical business, some things seem to remain unchanged although the world looks a very different place today. We have also interviewed some of the luminaries of todays shipping scene asking them for the view from Greece more than 30 years on. When Lloyds Registers house magazine 100 A1 gave coverage to the shipping crisis in 1978 times had been tough for a number of years. The situation did improve somewhat before asset prices entered a massive trough in the mid 1980s, before recovering substantially at the end of the 80s. If the nineties were a time of mixed fortunes the dry bulk boom of 1996 was short-lived the next decade proved to be spectacular and relived some of the glorious times of the golden freight markets enjoyed by the likes of Niarchos and Onnassis seen in the 50s, 60s and early 70s but on a massive scale. 2002-2008 provided ample returns for those who had invested in ships on a scale that the Greek market took in its stride and capitalised on. Fortunes have been made at a time when the Greek market has been following a considerable shift in emphasis from acquiring secondhand tonnage to secure ships to a strategy of ordering new ships. The orderbook now is heavily weighted towards Greek owners. Some Greek owners have always ordered new ships and pioneered new designs. But the scale of new tonnage ordered was astounding as Chinese capacity expansion fuelled the growth of the orderbook. We now have the biggest

orderbook in history although the collapse in freight rates, sentiment and confidence in the immediate future by Q3 in 2008 ensured we all knew that time had run out for the boom. Since that 1978 100 A1 article, Greek shipping has obviously prospered and evolved. New names have appeared, some traditional names have been less active, investing in different industries but the Greek market has retained its share of the market. Although Piraeus itself is less the centre than it was, the Greek Family-owned shipping businesses continue as strong as ever, as the most recent investment in new building opportunities has demonstrated. Management companies have relocated to, or new shipping companies have chosen to be based in, the seaside suburbs of Glyfada and Vouliagmenis or more central locations such as Syngrou, Maroussi as well as the Northern suburb of Kiffissia. Much of the Greek shipping diaspora has also returned from New York and London. As communications improved and insurance, broking and banking services evolved in Greece so the relative benefits of being located in the United States or United Kingdom declined. Today Greek owners are active in new sectors beyond the traditional dry bulk and tanker trades. Container shipping, LNG, LPG, bunkering operations have all attracted investors. Tapping the capital markets mainly in New York is a significant trend of

recent years but the market capitalisation of public shipping companies remains marginal in comparison to the more traditional sources of finance. A blend of more corporate governance coupled with the family entrepreneurial spirit of Greek owners is increasingly becoming more common within the Hellenic Maritime Community. What happens now is uncertain. Some Greek owners have been active in recent months, leading the most recent mini-new building spree, others are looking for lower prices yet many have plenty of cash and are ready, as ever, to pounce when the opportunity is right.

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Lloyd's Register talks to Greek shipowners, past and present

Reflections from a troubled past

In the Spring of 1978, Lloyd's Register gathered together a group of the leading Greek shipowners to talk about the then crisis facing Greek shipping. Their views formed the basis of a lengthy article in Lloyd's Registers magazine of the day, 100A1.
The meeting was held on the fifth floor of an unpretentious building overlooking the Port of Piraeus, in one of the most exclusive clubs in the shipping world, the Marine Club of Greece, and according to the April edition of 100A1, the conversation was sombre from the outset. It was also a conversation that must sound many familiar echoes amongst the ranks of Greek shipowners today, and their comments then, make interesting reading now. In 1978, the Greek shipping industry had just emerged from 40 years of continuous growth into a much grimmer reality. The rise of the Greek merchant fleet since the war, noted 100A1 in its April 1978 article, is one of the most amazing commercial stories of modern times. In 1945 there were only 18 Greek ships left afloat, and most of those were long past their best. Today, it is the fourth largest fleet in the world in terms of gross tonnage, with 4,800 ships and employing 123,000 seafarers. But after 1974, the price of oil had caused a trade recession, there were too many ships, and that, plus a then global trend for some sovereign states to subsidise their shipping, was holding freight rates down. Running costs were rising and the previous

family relationship between Greek owners and their seafarers was breaking down, with crew becoming ever more vocal in their demands for better wages and conditions. Achilles Halcoussis, President of Halcoussis Shipping, and then Vice Chairman of the Lloyd's Register Greek Committee told 100A1 that, 1973 was a profitable year for shipping and because the opportunity was there we extended our order book.

That is what is making it difficult now, the obligations for newbuildings. To meet these we must now suffer. Nick Soutos, President of Soutas (Hellas) Maritime Corporation on the other hand found his fortunes had not turned quite as sour as his fellow owners a turn of events he put down to his wariness of the banks. He told 100A1 that his company was now operating in a very different

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world than the one hed grown up in. He said: This is a new game. Before this the market was sometimes good, sometimes bad. Now it is a complete catastrophe. In preceding crises, which lasted shorter times, our obligations were smaller and when there was trouble, the banks could stand it. They would say to us; Mr Shipowner, we know this is not your fault. It is the result of world conditions. We stand with you. But today even the good banks with good clients cannot afford to set it that way any more.

And he had some pithy words for the banks, who had been so free with their loans. He said: If a lovely blonde comes into the room and starts to make love to me, what do I think? I wonder what is going on. I had the same feeling when the banks started coming to me with suitcases full of money to give me as much as I wanted. When I asked do I have to pay it back, they said, dont worry about that. Then I began to worry thus I was not involved in newbuildings or the purchase of second hand vessels at sky-high prices.

George Vardinoyannis, of the Varnima Corporation looked elsewhere for the some of the root causes of the then crisis. He told 100A1, We owe a lot of our success to our crews, but I believe we have abandoned them. Not economically, but personally. Nowadays there is not so much concern to understand the crews. Some companies have no health care system; no social officer. I believe a lot has been lost. We are also trying to increase automation, but we are failing to see that we must automatically increase the quality of the crew. And Mr Vardinoyannis also had some advice for future generations of owners. He said: I think in the future the shipowner should not be pressured by the shipbuilder into taking excess tonnage. If the shipbuilder has too much capacity he should diversify into some other industrial work or into repair. And shipowners must diversify too. The people who will survive are those who have not put all their eggs into one basket.

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its in the owners hands, how were going to handle this...

Harry N. Vafias is President and Chief Executive Officer of StealthGas Inc. and has been actively involved in the tanker and gas shipping industry since 1999. His Greecebased company currently owns 40 LPG carriers, and ranks number one worldwide in owned vessels in the 3,000 to 8,000 cbm LPG carrier segment. Here, Lloyd's Register asks him for his assessment of the state of the shipping industry today.
Lloyd's Register: Having experienced the previous difficult period of shipping the crisis of 1978-1985 which are in your opinion the similarities and differences with the current situation? Harry Vafias: I was only a kid back then but hearing the stories from my family I can tell you that the rates for tankers/ bulkers were much lower plus it was a very prolonged crisis till now it seems that this crisis is milder. But only time will tell LR: For the past 2 years, Shipping - after 5 years of great output - is in a situation where freights have fallen considerably. Can it be characterised as a crisis? HV: Depends in which segment of shipping you operate in, in dry I wouldnt call it a crisis, for tankers its a soft crisis and for containers its a really severe crisis! Moreover the problem lies if an owner has a significant orderbook and no finance, particularly for private non-listed owners, with the banks being absent this may be a very difficult problem to overcome. Moreover, its too early to say. In early 2011 we will be able to say if the crisis is behind us or not. LR: Many analysts say that the number of new ships which will hit the water from 2010 and 2012 will intensify the problem of excessive tonnage. What is your opinion on this? HV: Till now thats true but for how long can China and other developing nations absorb so many ships I am really worried especially on the dry side in addition I am surprised that so many owners despite the already gigantic orderbook are still ordering bulkers for 2012 or even 2013. Sooner or later the crash will come and it will be messy LR: One could say that this unprecedented economic crisis combined with the excess of new tonnage will create a stifling environment and further problems to shipping companies? HV: Thats true and we have seen that, albeit only for a few months between November 08 and February 09. The economy is slowly stabilizing and optimism is gradually creeping back... its in the owners hands how we are going to handle this, we must be conservative; and for people that want to invest, its better to buy re-sales or second hand ships instead of ordering more Newbuildings! As you know our fate is in the hands of the banks, if the banks are healthy and willing to do business then all is fine. If not, then the problems start. LR: How do you explain the development of freights in the dry and in the wet sectors? What are the factors influencing these two markets today? HV: As discussed before on the dry side the situation is very worrying. Dont forget there are tens of single hull VLCC tankers being converted or already converted into dry! On the wet side I am more optimistic due to the smaller orderbook, single hull phasing out, increased regulations. LR: We observe that despite the extensive orderbook at shipyards, many shipping companies have recently been placing new orders. Where do you think their courage' comes from? Can this be considered as evidence that we are coming out of the crisis? HV: They must be very brave especially if these new orders are in the dry or the container side. Its too early to celebrate the end of the crisis. LR: Are you optimistic for the future? What is in your opinion the timeline for exiting the crisis? HV: Greek shipping has been affected, but not too much. Only a handful of companies have closed down and there are still 821 shipping companies operating! Chinese companies have a competitive advantage over us; financially stronger, cheaper labour, backed by the state and lots of locally required cargoes. Greek shipping will always be in the forefront, its more flexible and adaptable, but my fear is that sooner or later Chinese companies will be come bigger in total dwt and number of ships. LR: A period of crisis is often a period of opportunities too. What are, in your opinion, the opportunities that have come along during the past two years for Greek Shipping? HV: Over the last 2 years we have seen great opportunities in shipping, in real estate, in the stock and bond markets in the art market. The point is who is brave enough to invest further when he has already lots of investments that are under the water. If you look at end 2008 till end 2009, who bought ships you will see that it was the smaller less affected companies, not the normal buyers you would expect to be the top 50 largest companies. Nowadays this has changed and we see the top owners hunting for bargains again despite the fact that vessel prices are on average up at least 10%!

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... for Greece, shipping means international premiership and reputation...

It is willing to do more, provided that all modes of transport and other land based activities will also bear the burden of their respective responsibilities. The increasing scarcity of ship officers and their qualitative improvement should be given the utmost attention without undue delay. This is the biggest challenge for traditional maritime developed countries. They have to win the bet in order to maintain their maritime strength in a constantly changing and imponderable environment. For Greece, shipping means international premiership and reputation. This support will reinforce the sectors well known dynamism, adaptability and resilience, qualities inexorably combined with its successful model of private entrepreneurs.

Theodore E. Veniamis is the President of the Union of Greek Ship-owners and founder, Chairman and Managing Director of the Golden Union Group, the Piraeus-based shipping company which operates a fleet of dry bulk carriers totalling more than 2 million dwt.
The shipping sector, like other sectors of production and services, due to the drastic reduction of demand and trade, faced a crisis of unpredictable duration and intensity. In particular, shipping had to face massive cancellations of newbuilding orders, and rescheduling of deliveries as well as a steep reduction of ship values, resulting in a deep change of the psychological climate of the market, which also had to face over the same period the resurgence of the medieval scourge of piracy. Despite these unfavourable circumstances which were added to an unprecedented recession, the Greek-owned fleet has managed to maintain its leading position in the world league that it has held for three decades. The contribution from Greek shipping to the national economy remains of the utmost importance.

Looking toward the immediate future, I believe that Greek shippings response to the current crisis should be governed by fundamental and sustainable objectives. We need to find an equilibrium between demand and supply in the world shipping market. This is not always easy, as the rules of free competition sometimes distort precisely this balance. However, even under those adverse circumstances a responsible entrepreneur can anticipate or cope with the challenges emanating from technology or from other sectors (banks, shipyards), which are currently heavily affected by the world financial crisis. Expansion at an irrational pace has once more proved to be unwise. Whilst it is true that the present shipping crisis is mainly imported the massive ordering of newbuildings and the vast amount of new deliveries over previous years played their own negative role and will delay the recovery of the freight market. It is also of the utmost importance to safeguard free and fair competition, which is the oxygen of shipping and trade. The shipping market should be protected from regional policies which may service expediencies irrelevant to the supply of shipping services on a world basis. The market should be safeguarded from short-sighted protectionist measures which are the easy solution in times of crisis, yet lead to closed markets and obstruct their recovery. Shipping should redefine its role concerning protection of the environment, although admittedly it has the smaller share of responsibility in the escalation of climate change. It has already taken the first step with the building of safe, environmentally friendlier vessels.

For Greece, shipping means international premiership and reputation.

Shipping should redefine its role concerning protection of the environment.

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The wisdom of maintaining a war chest

Captain Panagiotis Tsakos was born on the island of Chios. He founded Tsakos Shipping and Trading in 1970. Today, the Tsakos Group of Companies has operations around the world, and includes the NYSE-listed Tsakos Energy Navigation Ltd.
LR: Having experienced the shipping crisis of 1978-1985, what are the similarities and differences to today? PT: There are no similarities with the crisis of 1978-1985. The current crisis has been brought upon the shipping industry solely by the failure of the banking system to monitor its own regulatory procedures and regrettably the crisis will not be over until the banking system

can put their house in order, through legislative and international common procedures. LR: How would you account for the fall in freights over the past two years, after five great years? PT: The fall of freight/hire and consequently the values of vessels is solely due to the supply and demand factors in our industry. One should remember that shipping is one of the unique industries applying unrestricted free market competitive rules, based on supply and demand, serving the global transportat LR: Analysts say the number of new ships due to hit the water over the next two years will exacerbate the problem of excessive tonnage. Do you agree?

PT: There is no magic in making prognosis on how the market would move either in the wet or dry industry and whether values of ships will fall or go up. This is a simple game of supply and demand. What its really difficult to foresee is the factors affecting supply and demand. Despite the current financial crisis, which thankfully does not affect all the countries - China, India, Brazil are still registering extremely high annual growth rates, still allowing the shipping industry to take advantage of the free market conditions and maintain, especially in the case of the dry bulk sector, reasonable rates. However, the container sector is suffering from lack of cargoes, but they are currently seeing a small, but gradual, increase in rates. The Tanker sector is seeing great up and downs affected by factors not common to the other shipping sectors, such as weather conditions.

Tsakos Sapporo Princess during sea trials.

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Captain Panagiotis Tsakos

LR: DO you have any predictions on how the dry and wet cargo sectors will develop? PT: In the dry cargo sector, due to the economic crisis and the over supply of tonnage, freight rates in the dry cargo markets have become very sensitive and can be described as being extremely volatile and hard to predict. Economic and seasonal factors, paper trading and certainly sentiment are playing a very important role on how the rates are behaving day by day. In general dry cargo freight rates have been healthy for all sizes, Capes, Panamaxes, Supramaxes, the demand has been quite strong in 2009 and in 2010 thus far, port congestion has kept many vessels occupied thus helping freight rates considerably, so it is a question of how many newbuilding vessels will be delivered. Thus far deliveries are a lot less than scheduled due to cancellations and slippage. If this pace is kept we believe that demand will be enough to absorb all the newbuildings that will enter the water. As for tankers, the development of freight can be influenced - and therefore market can fluctuate up or down - by many factors, however in the short term - apart from the most fundamental reason of supply and demand at any specific time reasons such Increased ton-miles; political actions i.e. Venezuela/China loan for oil; OPEC announced oil production quota cuts; FFA Markets; weather such as hurricanes, canals/straits delays, such as congestion in the Bosporus, and oil prices, these do influence the freight market. Also, owners resistance to accept lower rates than their breakeven due to increased financial operating expenses.

LR: Shipping companies are placing more newbuild orders where is their courage coming from? PT: Despite negative rumours about prospects of 30-40% cancellation of newbuildings there have not been as many cancellations as originally feared. There have been renegotiations of price and delivery time and we are now seeing delivery of vessels coming forward to cope with increased demand especially in the dry bulk sector. Major first class yards are now taking orders for 2012 and later which indicates an increased demand for newbuilding slots, given the current competitive pricing. I would like to believe that we are already out of the crisis and it is simply a matter of time for the shipping industry to fully recover. This however, also depends on the international financial environment and the ability of the developed countries to achieve positive annual growth rates. The current newbuilding prices are attractive to cash-rich owners who can afford either to self-finance the building of vessels or obtain financing from major banks at reasonable equity/loan ratios and interest rating. This would allow them to place orders with first class yards for prompt delivery at reasonable prices on the expectation that the shipping industry is on a recovery course over the next 3-5 years. The courage mentioned in your question is the key for the future. The investments will bring growth and the soonest exit from the crisis.

LR: What would be your timeline for Greek shipping to emerge from the crisis? PT: Greek Shipping represents about 18% of the world fleet. It is therefore unavoidable that any crisis will affect the Greek Shipping right from the start. Greek shipping is traditionally very conservative and for those who have been through at least two shipping crisis, have long since learnt that the shipping industry operates in cycles and you must always be prepared to face a crisis from your own resources. Indeed, the last financial crisis has very much reaffirmed the wisdom of maintaining a "war chest". Those prudent ship owners who have done so, are now in a position to not only ride the crisis but take advantage of opportunities to inadvertently generated by the crisis. The opportunities created by each shipping crisis are relatively the same and mainly comprise the acquisition of good quality vessels at a discounted price and the ability of cash-rich owners to place orders for newbuildings at very low prices. Ordering new vessels at low prices reproduces the cycle of oversupply against demand thus forcing readjustment of levelsin freights as well as in value of vessels. It is a cycle that shipping has been operating in for the last 100 years and it is likely to be the same over the next 100 years. I still believe that, and I have said this may times, there would be a time, hopefully in the near future, that shipping would be a joint venture industry between all the major players from the ship designers to ship builders, to ship owners, to ship operators, ship's crew, charterers, cargo owners and cargo receivers that would produce a stable environment allowing each party to operate under controlled and reasonable business ethics and guidelines for the benefit of all.

Despite negative rumours about prospects of 30-40% cancellation of newbuildings there have not been as many cancellations as originally feared.

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Lloyd's Register in Greece

Lloyds Register has been working to serve the needs of Greek clients for over 180 years a relationship that began with the appointment of D. Graham as Lloyds Registers first surveyor to Piraeus in 1888. From there he also covered survey work at Syra, or Port Syros.
Before his arrival, all surveys undertaken in Greece were completed by surveyors based at Constantinople, todays Istanbul, and it was not until W. W. Barnes commenced duties in Piraeus on June 20 1907, that Greece had its first exclusive surveyor, Lloyds Registers expertise has helped clients operating the thriving passenger ship and ferry services between the Greek islands for many years. Semiramis, the first passenger ship to cruise the Greek islands, was completed to Lloyds Register class in 1954 for Epirotiki Steamship Navigation Co.

The 1950s saw rapid expansion to make the Greek-owned fleet one of the largest in the world by 1960; a position it still holds today. A new Lloyds Register office was opened in Piraeus in 1967, where employee numbers doubled in eight years. Ships belonging to Greek interests have featured particularly strongly in the Lloyds Register classed fleet. In 1988, a survey revealed that Greece controlled more shipping than any other country, a massive total of over 47 million gross tonnes representing 12 per cent of the worlds fleet. In the same year 32% of the Greek-owned fleet was classed by Lloyds Register, more than any other classification society. In 1960s, as Greek shipbuilding became better established, Lloyds Register formed a Greek Committee; its work continues as the Hellenic Advisory Committee, established in 1996. Ship repair and conversion have become Greek specialities, with some spectacular conversions of tankers, cargo ships and passenger ships into ferries and car carriers. In March, 2004 Lloyds Register signed an agreement with the Hellenic Republic for delegation of statutory services including certification for passenger ships, and the International Ship and Port Facility Security Code. This was the first time that the Greek maritime authorities had entrusted statutory certification of the countrys domestic ferry fleet to an international Recognised Organization.

From a small base, industrial work has also grown to include the inspection of pressure vessels, boilers for desalination plants, pipework, fabrication and erection of oil storage tanks, and glass-reinforced plastic (GRP) hulls for lifeboats and yachts. In 1994, Greek surveyors worked closely with specialists from the UK to assess the reconditioning of Petrola Hellas Refinery near Piraeus. In 2007, Lloyds Registers Greek operations came under the name Hellenic Lloyds S.A. to reflect increasing activity and the importance of the Greek shipping communitys contribution to the organisation. Globally, the Lloyds Register Group employs more Greek people today than ever before. The Piraeus office provides classification, design support, marine training, asset management and quality assurance services, both to Greece and for much of the Eastern Mediterranean, Adriatic and states bordering the Black Sea. Its coverage also includes Albania, Fyrom (Macedonia), Montenegro, Armenia, Azerbaijan, Georgia, Kyrgyzstan, Tajikstan, Turkmenistan, Uzbekistan and Moldova. In 2008 the Piraeus office became the base of Europe Middle East and Africa (EMEA) region of Lloyds Register. Apostolos Poulovassilis was appointed EMEA Regional Marine Manager and took overall responsibility for Lloyds Registers Marine operational performance in the region. Apostolos Poulovassilis is based in Piraeus and many of the Piraeus staff have now undertaken EMEA roles as his support team.

Greek-owned ships were being classed by Lloyds Register as early as the 1830s. One example is the 292 tons gross brig Aslan built on the island of Rhodes in 1826, which appeared in the Register Book for 1835. The first steamer under the Greek flag was the Perseverance, a 233 tons gross, 85 hp (7 knots) paddle steamer built in 1825 and purchased by the Greek state in 1826. It is not known if she was classed, though the vessel does appear in the Register Book and was later renamed Karteria.

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The Second World War severely disrupted activities in Greece. Local office records were maintained by surveyor Dimitrios Parissis and clerk John Balaskas. A loan from the shipowners Yannoulatos Brothers covered salaries and kept some Lloyds Register services going. After the war, the organisation won inspection contracts from the government of Greece and during the 1950s it was invited to act as the load line authority for the country.

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Lloyds Registers expertise has helped clients operating the thriving passenger ship and ferry services between the Greek islands since the end of the Second World War. Semiramis, the first passenger ship to cruise the Greek islands, was completed to Lloyds Register class in 1954 for Epirotiki Steamship Navigation Co.

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Engaging with people and community

Robert Parsons, Lloyd's Registers General Manager, Shared Support Services GEMA in Piraeus.

The interests of the community and of the environment have been at the heart of our business since our foundation in 1760. We are ideally placed through our mission and purpose as well as our position as a leading classification society to do something that matters, ultimately protecting life and livelihoods at sea, and protecting the environment, working to enhance safety by approving assets and systems so that people and communities around the world can get on with everyday life.
Lloyd's Register is an independent organisation operating for the benefit of the global community and therefore committed to ensuring that economic, environmental and social issues and the requirements of the communities where we serve are integrated in our business strategy. In Greece, we have a top priority agenda for Corporate Social Responsibility actions and initiatives, with the main emphasis on Health & Safety, Education, Environment and Culture. Theodosis Stamatellos, Lloyd's Registers Greek Country Manager says: People are our most valuable assets, as it is their collective effort that leads the organisations technical excellence and innovation. Our peoples wellbeing is of foremost importance to us, therefore a lot of focus is placed on health and safety issues. Our objective is not only to manage job-related risks but also inspire employees to implement a risk-based safety approach to every aspect of their life inside and outside the office.

Education is another priority we have set. Employees are placed on a continuous learning curve, which consists of job specific training courses and other awareness initiatives on issues of general concern. Our mission would be incomplete if it were to foster education only internally. Through Lloyds Register Educational Trust (LRET), an independent charity foundation, Lloyds Register is working with Greek institutions and foundations like the National Technical University of Athens (NTUA) and the Union of Greek Shipowners (UGS) to provide undergraduate and postgraduate scholarships for studies in maritime related sectors. We should also refer to our long standing relations with HELMEPA. LRET is financially supporting HELMEPA for the expansion of HELMEPA Junior and HELMEPA Cadets. Through a 3 year financing program that started in April 2008 the aim is that HELMEPA approaches children up to 13 years old and young people between 13 and 30 years old in Greece. Further, under the auspices of HELMEPA, in the form of an educational partner, Lloyds Registers experts deliver training and knowledge sharing to seafarers on a number of subjects that are of interest to the industry relating to safety, security, environment etc.

Our global and local business plans involve Environmental initiatives including: assessing and reducing our own carbon footprint achieving employee engagement in reducing personal carbon emissions raising awareness on sustainability and environmental protection. Specific local initiatives relating to paper and batteries recycling complement our efforts for a healthy environment for us and future generations. The organisations contribution to the society extends to Culture as well. Coupled with the maritime historical tradition of Greece described elsewhere, Lloyds Register sponsors the Yacht Racing Cup at Posidonia since 2004, the biggest and most prominent exhibition in shipping that takes place every two years, as well as an ongoing annual support of the Hellenic Offshore Racing programme all over Greece through an exclusive sponsorship of a participating boat. As part of our Corporate Social Responsibility initiatives going forwards, we will look to support events that bring forward the cultural characteristics of Greece, especially those that incorporate the elements of a noble contest ( ) and cooperation amongst the participating groups of society. In the occasion of the 250th anniversary of Lloyds Register the employees around the Organisation have been encouraged to look to the future throughout 2010 and to give something back to their local communities with a special commemorative campaign. The LR250 initiative gives everyone in the organisation the opportunity to work on a project that will benefit their local community, and will run throughout 2010.

People are our most valuable assets, as it is their collective effort that leads the organisations technical excellence and innovation.

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Piraeus Office supported the LR 250 Campaign participating with its Hellenic Sustainability Matters project. The project enrolled in two phases, the reforestation of Drafi area in Pikermi that has been adversely affected by the recent fire wave the past summer in Attica and the organisation of an activities day on the subject Environmental Protection and Safety at Home for the kids of Chatzikiriakeio Foundation and the kids of Piraeus staff.
Theodosis Stamatellos, Lloyd's Registers Greek Country Manager and Giota Gavrili, Piraeus office.

For the purposes of the first part of the project the area of Drafi in Pikermi has been chosen. According to advice received by the Community, 350.000 m2 have been destroyed in Drafi, degrading the physical environment and the standard of living of the surrounding populations. Within this context, reforestation would help local communities raise their standard of living and also assist the flora recover from the natural damages. We chose to focus on reforestation, as the issue with the fires and the adverse consequences arising thereof (environmental economical - societal) heavily affects us. Greece has faced an increasing number of fires during the last decade, with the most severe one being the one in Peloponnese a couple of years ago. Thats actually when the initial idea was born. Following the fires in Peloponnese in 2007, representatives from LR Piraeus visited a number of the affected villages distributing gifts to children that lived around the devastated areas. We believe that our current project is an all encompassing endeavour that brings together environment and children as the next generation, in order to cooperate and give something back to the local community, as in the case of 2007.

The second part of the project aimed to reinforce the message of environmental protection not only among LR employees but to children in general, exposing the later to such forward thinking initiatives and raise awareness for future generations on issues that will affect life on planet in the years to come. In this cadre, Piraeus office has organised an all day event for the children of the Chatzikiriakeio Foundation and the kids of Piraeus staff which involved interactive games and team activities on life on planet, environmental protection and safety at home. The dedicated LR Piraeus team worked towards ensuring strong levels of engagement and participation as much from the side of LR staff as of the local community, encouraging people to support the above endeavour, as this was an initiative that would contribute the most in upgrading the environment they live in. The Piraeus project was directly aligned with the Life Matters ethos, as it is built upon the principles of sustainability, societal justice and protection of the environment. As a global non-profitable organisation, we have the obligation of making the society sensitive to environmental problems especially for the next generations to help them have a better environment to live in, in the future.

In more practical terms, Lloyds Register ethos states Life Matters and to the childrens eyes oxygen produced by trees is seen as one of the basic sources of life. Children at an early age will get the chance of learning not only in words but in practice to respect and protect the forests and their physical environment in general. As Lloyds Register is a prominent organisation we hope we can lead by example to sensitize other parties to contribute to the community in similar ways. Robert Parsons, who headed the Piraeus campaign, commented: Overall, we feel members of the LR Community. We strongly believe in our values and principles as a group and we would therefore like to convey the firm message of LIFE MATTERS to the community around us. We find this is an excellent opportunity to come together and with joined efforts to give back something really valuable to the children and the environment.

For further information contact: Robert Parsons, General Manager, Shared Support Services GEMA, Piraeus T: +30 210 4580842 E: robert.parsons@lr.org

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The LRET promotes matters Marine

The Lloyd's Register Educational Trust is extending its support throughout the world in a number of important areas.

As part of its Corporate Social Responsibility initiative, Lloyds Registers independent charity foundation, The Lloyds Register Educational Trust (The LRET), which was set up in 2004, is very active in Greece, funding pre-university education, university education and a major marine research programme.
Working with the National Technical University of Athens (NTUA), The LRET provides undergraduate and postgraduate scholarships in naval architecture and/ or marine engineering over the next six years to assist exceptional students to further their maritime studies before taking up a career in shipping. The total support is going to be more than 170,000. The LRET has also very recently agreed to fund a research programme into shipping emissions at NTUA over the next five years this programme is worth over 1,500,000. The LRET has also worked with the Union of Greek Shipowners (UGS) since 2004 to grant
Piraeus-based Lloyd's Register surveyors at work

an annual postgraduate scholarship at Masters level for studies in maritime related sectors worth 12,600. The scholarship is awarded to Greek nationals for studies in internationally recognised universities anywhere in the world. The LRET is also financially supporting HELMEPA (Hellenic Marine Environment Protection Association) for the expansion of HELMEPA Junior designed to promote marine environmental awareness in children up to 13 years old in Greece through a three year financing program that started in April 2008. HELMEPA Junior, with support from The LRET, has been extended to the support of HELMEPA Cadets, a scheme aimed at young people between 13 and 30 years old. The total economic support is going to be more than 155,000. Michael Franklin, The LRET Director, said: "The Lloyd's Register Educational Trust is extending its support throughout the world in a number of important areas. We want to encourage the study and development of

science, engineering and technology to help solve the many challenges the world faces, such as climate change and the huge increase in energy demand. Our work in Greece is part of this effort for wide public benefit.
For further information contact: Michael Franklin, Director LRET E michael.franklin@lr.org T +44 (0)20 7423 2713

The stamp of the National Technical University of Athens NTUA - the oldest and most prestigious educational institution of Greece in the field of technology, since its foundation in 1836.

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Strategic Research initiatives in Greece

The Lloyds Register Strategic Research initiatives in Greece cover the complete spectrum of methodologies and technologies of interest to the Greek marine customer base, writes Spyros Hirdaris, of Lloyd's Registers Strategic Research Group.
Lloyds Registers strategic research agenda is aimed at helping the shipping community to respond to the regulatorydriven environmental challenges facing the industry, and working through our subsidiary, Hellenic Lloyds S.A., we are able to better respond to the local needs of Greek ship owners and operators. There are the market demands for ecofriendly and fuel efficient ship designs that will not compromise the communitys commitment towards its people and asset safety. There are the new technologies to be assessed, and ways designed to apply them in reducing operating and manufacturing costs without compromising the efficient working of a ship and its engineering components as a system. That is why, in Greece, our strategic research efforts are being focused on the future of risk assessment methodologies, green shipping initiatives, intelligent ship operations and emerging technologies. Ongoing Initiatives Current Lloyds Register strategic research initiatives in Greece are largely facilitated within the context of the EU FP7 WATERBORNE agenda. The Hellenic Strategic Research Group (SRG) is involved with the EU projects MINOAS and GOAL DS.

Project MINOAS involves collaboration with the Greek companies HORAMA and GLAFCOS. MINOAS, aims to facilitate the hull inspection process through the deployment of a robots that can more easily access all parts of a ship. The primary objectives are to reduce downtime for the ship operators, achieve more consistent and accurate results, while reducing risks. Lloyds Registers initial involvement is to review and test existing technologies and develop a baseline to benchmark further technological developments. The research programme assesses the need for robots and then develops equipment that most appropriately satisfies these requirements. Design parameters for the robots their mobility, sensors, and data recording/ management as well as already integrated robot systems, are currently being studied.

Project GOAL DS (Goal Based Standards for Damage Stability) involves collaboration with the NTUA Ship Design Laboratory. The project has been driven by the recent rapid changes in technological developments as well as the demands by the International Maritime Organization (IMO) for ever improved goal-based driven standards. Present damage stability regulations account only for collision damages, despite the fact that accident statistics, particularly of passenger ships, indicate the importance of grounding accidents. The project addresses some of the new challenges related to Design for Safety and Risk and involves research probabilistic damaged stability formulations for large passenger vessels. Upon completion, the GOAL DS consortium will submit key results to IMO for consideration in the future SOLAS Rule making process. Continued >

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These initiatives are example of our current efforts to encourage global collaboration for innovation. It also demonstrates the commitment of Lloyds Register towards building up in intellectual infrastructure and leading marine classification at technology level.
Fai Cheng, Head of LRSRG.

Forthcoming Initiatives Green Ship Design Medium term Research In the short term, environmental impact considerations are expected to increasingly influence the design of ships, their operation and their eventual disposal. Lloyds Register has undertaken in-house preliminary studies classifying the range of design improvements that could be utilised towards increasing the energy efficiency and reducing the environmental impact of ocean going vessels. It has been concluded that optimisation of the aft and forward parts of ship hull forms may lead to 3-5% energy efficiency improvement. It is expected that further efficiency gains of up to 13% can be achieved by improved propeller design, engine selection and the incorporation of energy saving appendages. Design efficiency can be enhanced further by optimisation solutions that may offer new lightweight structures. Many of these technologies are available now. However, it has yet to be established that they can be applied in real situations and that there is no impact on ship safety. Lloyd's Register is working with our clients, state of art shipyards and design houses to build a knowledge base that will help us to develop appropriate rules and regulations.

Long term Research Alternative sources of energy, such as biofuels, solar and wind, are currently being researched, but more recently, the application of nuclear technology is now also on the agenda. Nuclear energy presents the opportunity of implementing a technology which is both technologically conservative and alarmingly radical. Naval nuclear propulsion is a well established technology which is cleaner in many ways over existing power plants. There is a long naval experience of its use in driving aircraft carriers and submarines, and there are nuclear propulsion systems already available of more than ample power capacity to comfortably drive even the largest bulk carrier, container ship or tanker. Also, Small Modular Reactor (SMR) technology is now available, with a thermal power output of over 68 megawatt that can be treated as a plug-in nuclear battery. The use for SMR for ship propulsion is an exciting prospect and the aim of this research is to understand the implication of SMR for ship design, construction, operation, maintenance and eventually disposal. Lloyds Register Strategic Research Group and Greek ship owners in association with a shipyard and a design house are to launch Joint Industry Projects that will look into the implementation of low carbon state of the art and niche emerging technologies on green ship designs. They will also investigate the practical application of SMR and will develop commercially viable concept designs for passenger ships as well as bulk carriers and tankers.

This strategic research approach is a process of open innovation. The partners in this ground braking project represent the vertical chain from basic research into implementing technologies, developing ship designs and rules, enforcing safety at sea and operating sustainable vessels.

For further information contact: Spyros Hirdaris, Senior Specialist, Strategic Research Group, London E spyros.hirdaris@lr.org T +44 (0)20 7423 1430

Lloyds Register has wideranging expertises in technologies and is here to lead the technical front of maritime Classification in providing guidance, knowledge and experience to our clients and the wider maritime industry stakeholders.
Tim Kent, Technical Director, Lloyds Register.

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Lloyd's Register's highest authority on classing matters

Lloyd's Register's Classification Committee and its Executives offer a consistent, fair and uncompromised approach that ensures that when it comes to Fleet Quality Management, correct decisions are reached irrespective of any commercial implications.
In April 2009, Lloyd's Register introduced the Fleet Quality Management Process, aimed at streamlining the way we class ships. It is a fact of the Marine industry that some ships are not satisfactorily maintained between surveys, and in the worst case that can lead to a ship failing a Port State Control inspection and ending up with an expensive and embarrassing detention.

To meet this challenge, Lloyd's Register set out to draw up a defined process to identify ships liable to fall below required standards between classification surveys, and then work with the client to improve their onboard maintenance regimes, and back up that work with further re-verification surveys where necessary. Since its launch, Lloyds Registers Classification Committee has been processing reports on ships from Lloyds Register surveyors, as well as third parties expressing concerns such as Port State Control bodies, ISM issuer audit reports and client fleet reviews. The Classification Committee chaired by the Marine Director Tom Boardley, comprises 12 voting members representing a cross section of the shipping industry from P&I clubs, to

ship owners and flag experts. Secretary to the Classification Committee is John Meins, Lloyd's Registers Fleet Services Business Improvements Manager. The Committee, and its nine Devolved Classification Executives (DCE) across the globe, is linked to the Marine Business and the Classification Executive via the Fleet Services Department, managed by Iain Wilson, Fleet Services Manager. It is Lloyd's Register's highest authority on classing matters and is responsible for assignment, withdrawal or suspension of class. It meets once a month to review Lloyd's Registers fleet statistics and the decisions of the Classification Executive, and to consider any appeals and make precedent decisions. Continued >

Class people: Back, l to r - Jim Barclay; Arun Jha; Alok Gupta; John Meins; Henriette Weijs Nikos Benetis; Brian Purtle Front, l to r - James Henton; Alan Owen; Joanna Townsend; Sam James; Iain Wilson; Udi Bar-Lev

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Photo: Mat Curtis

Classification Group Joanna Townsend is Chair of the Classification Executive and the Manager of Classification Group, which provides support to Lloyds Register offices around the world as well as direct to our clients to ensure that Lloyds Register has a consistent interpretation of the regulations and rules. The Groups multinational staff has worldwide experience of new construction, existing ships, materials, equipment surveys and Safety Management Audits and it has overall responsibility for the global classification processes, including entry into class, class suspension, class withdrawal and classification status in the interim period. The London Classification Executive, chaired by the Classification Manager, meet most days to consider all those vessels that enter or leave class, together with any

postponement requests which cannot be approved by one of the DCEs, debt cases and those ships that have been made subject to the Fleet Quality Management Process. There are nine DCEs worldwide who have been authorised to consider surveys postponement requests on behalf of the Classification Committee. Their work is supported and monitored by the London Classification Executive. Classification Group is also the official Lloyds Register contact with the UK Marine Accident Investigation Board. Lloyds Register assists the MAIB in investigations in respect of classification requirements and occasionally attends recommendation meetings providing classification advice. For further information, please email: classificationgroup@lr.org

Nikos Benetis is the Entry into Class Manager, with overall responsibility for managing and coordinating the entry into marine classification for all new buildings and existing ships. For new buildings the global process is driven and managed from the Entry into Class department in order to collect all the required technical information during the construction of the vessel in order to prepare the classification endorsement upon completion, which is presented to both the Classification Executive and the Classification Committee for formal classification of the vessel. In order to successfully deliver the endorsement close cooperation is managed between the Entry into Class department and the Lloyds Register site team, design appraisal and client facing offices.

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Close cooperation is managed between the Entry into Class department and the Lloyds Register site team, design appraisal and client facing offices.

The department also applies for the unique IMO identification number of all vessels. Thus we christen and observe from afar as the vessel is built and successfully delivered to her owners, before handing her over to the Classification department which remains in charge for the ships lifetime. For existing ships we manage both the Transfer of Class and Acceptance into Class processes. Transfer of Class process is in accordance with the IACS Procedural Requirement 1A, and the department oversees the whole process from original contract/agreement with owners/ managers, to successful completion of surveys required. Once the contract is received, specific instructions are prepared and sent to on site surveyors, communications are initiated with the local Flag administration. Compliance requirements are overseen through our continuous support. As per the New Building process, once the vessels have completed the TOC or AIC survey requirements, the endorsement for formal Classification through the appropriate Lloyd's Register Committees is prepared and presented. The Entry into Class department is also responsible for ensuring Lloyd's Register compliance with IACS procedures, IMO requirements and EU Directives, with regards to entering vessels (new or existing) into marine classification. For further information, please email: FirstEntry@lr.org or toc@lr.org

Alok Gupta is Senior Principal Surveyor for the Dry Cargo Group. The Dry Cargo Group Section provides technical classification support globally for Bulk Carriers, General Cargo, Reefer Vessels, Containers, and Tugs etc, comprising some 60% of the in-service Lloyd's Register fleet. Arun Jha is Senior Principal Surveyor for the Tanker & Gas Carrier and the Passenger Ship & Special Service Craft Groups. The Tanker and Gas Carrier Group Section provide technical classification support globally for Oil Tankers, Product Tankers, Chemical Tankers, LNG & LPG Gas Carriers and Tankers. The Passenger Ship & Special Service Craft Group Section provides technical classification support globally for Passenger Ships, Ro-ro ships, Ferries, Vehicle Carriers, and all vessels classed by the Rules and Regulations for the Classification of Special Service Craft, such as yachts, patrol vessels, pilot boats and workboats. The Dry Cargo, Tanker & Gas Carrier and the Passenger Ship & Special Service Craft provide the following support collectively. Central co-ordination, technical support for classification and interpretation of regulations globally for surveyors, ship operators and flag administrations on specific vessels, by working together with Account managers, LR Client facing offices, field surveyors, owners and managers to ensure their classification related technical queries are attended quickly and all requirements for maintenance of class are timely dealt with. Monitor and vet survey reports issued on completion of surveys to verify the quality and consistency of application of the regulations.

Authorise and issue Confirmation of Classification certificates for sale & purchase, insurance and chartering purposes. Review issues arising from casualties and incidents including the issue of survey guidance where appropriate. Recommend to the Classification Executive actions for unusual circumstances not covered by the LR regulations and recommend/monitoring Unscheduled Surveys for the FQMP Review and agree ESP survey programmes and following review of survey reports issue ESP executive summaries for ESP vessels As part of London Devolved Class Executive agree to postponement of surveys for local vessels, and carry out Condition Assessment Scheme (CAS) approval for oil tankers Coordinate the TOC-out process in accordance with the IACS Procedural Requirement 1A For further information, please email: dcg-class@lr.org or tgg-class@lr.org or psg-class@lr.org depending on the applicable ship type or specified query James Henton is the Manager of Survey Procedures Section, which ensures that Lloyd Registers classification guidance can be easily understood by internal and external clients alike. Any new or revised requirements from IACS, IMO and Flag Authorities are assessed and requirements that affect Classification are incorporated into the Lloyds Register Regulations and/or internal guidance to surveyors where applicable as well as the classification survey checklists. Continued >

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Survey Procedures Section provides support and clarity to the rest of Classification Group and the local DCEs.

The section provides support and clarity to the rest of Classification Group and the local DCEs, particularly in matters related to Classification Regulations and surveyor guidance. The section additionally coordinates the approvals of Machinery Planned Maintenance Schemes . James Henton also represents Lloyds Register on the IACS Survey Panel, where we work with other IACS members to agree upon new or amended periodical

survey requirements. This provides the opportunity to ensure Lloyd's Register's interpretations and concerns can be properly addressed, and to work closely with the other Societies to ensure the uniform application of survey requirements as well as to develop and build good working relationships with the other IACS members. For further information, please email: sps-class@lr.org

Sam James is manager of the Statutory Support Group, which provides technical leadership for the statutory work within the Classification Department this covers a wide range of regulations, including SOLAS, MARPOL and the Load Line Convention. The Group also assists in the development of training courses and workshops relevant to statutory surveys and reporting, and provide statutory technical support to personnel in Classification Services and Lloyds Register Marine Business.

Externally, the Statutory Support Group is in regular communication with IACS through the IACS Statutory Panel.

Internally they work with the Lloyds Register Design Support offices and London-based External Affairs department to identify what actions are required to implement emerging legislation, and new and amended statutory requirements. They also assist in setting common standards and procedures relating to statutory matters and are represented on the Classification Executive. Externally the Statutory Support Group is in regular communication with IACS through the IACS Statutory Panel, through which common interpretations on statutory matters are agreed. They also liaise closely with Flag Administrations, and assist Owners and Managers with their statutory enquiries. Classification news articles that relate to statutory matters are authored by the Statutory Support Group. An important new area of work is ship recycling and the Green Passport. As this legislation develops it is necessary for Lloyd's Register to introduce procedures and a product which will be of value to shipowners. A member of the Statutory Support Group dedicates most of his time to this activity, which will gain in importance as the Convention moves towards ratification and mandatory compliance is required. For further information, please email: dcg-class@lr.org or tgg-class@lr.org or psg-class@lr.org depending on the applicable ship type

Jim Barclay is Manager of the Target Ship Section. Port State Control (PSC) is a check on visiting foreign ships to see that they comply with international conventions on safety, pollution prevention and seafarers living and working conditions. It is a means of enforcing compliance where the Owner and Flag State have failed in their responsibility to implement or ensure compliance. The Port State can require defects to be put right, and detain the ship for this purpose if necessary a major defence against visiting substandard shipping. The Target Ship Section (TSS) within the Classification Group records all known global PSC detentions to the Lloyds Register fleet on a central database maintained in Class Direct Live. Information from this is readily available to all surveyors. In line with our policy of openness and transparency we also show all PSC information on our web site www.lr.org. This is readily accessible to any interested party. From the database of detaining deficiencies, analysis can show the following: main detaining deficiencies found by PSC main ship types being detained ship ages being detained flags being detained countries detaining vessels

PSC data is used by the marine industry to benchmark the performance of Flag and Classification Societies. Poor performance can lead to punitive measures. The data is the main source for identifying items which continually produce deficiencies that are hazardous to operations or vital in safety and pollution management. PSC figures are a major Key Performance Indicator (KPI) for the marine industry and as such Lloyds Register is proactively seeking to further improve its PSC record by working with Owners, Operators and Flag State Administrations. In a bid to help Owners and Operators reduce their potential for PSC detentions Lloyds Register has produced a series of Pocket Checklists. This has been done in collaboration with an Industry partner the U.K. P&I Club. The first Pocket Checklist was published in 2005 and this looked at the top detaining deficiency areas. A library of Checklists has subsequently been produced and includes Marine Pollution Prevention; Life Saving Appliances and Fire Safety. It is intended that we will produce further editions on other main areas being identified by PSC. As part of our commitment to our mission statement.....of enhancing the safety of life and property at sea..these are provided free of charge with the only costs incurred being that of courier charges. Copies can be ordered from our web site www.lr.org. To date we have provided over 250,000 copies to the marine industry. Continued >

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It is equally important that our surveyor's give practical advice to clients to help minimise risks. To assist in this surveyors receive training on PSC issues and we regularly provide workshops/seminars to Owners and Operators either through TSS or via our Area Technical Performance Managers who are located in strategic areas in the regions. PSC information is also one of the main triggers for instigating the Fleet Quality Management Process. For further information, please email: tss-class@lr.org

Marine Management Systems Henriette Weijs is the global Marine Management Systems Manager and a member of the Classification Executive. The Marine Management Systems (MMS) section of Fleet Services Department is the global centre for Lloyds Registers certification activities for the International Safety Management (ISM) Code and the International Ship and Port Facility Security (ISPS) Code. The section focuses on ensuring global consistency of our service delivery. Our activities are coordinated through seven Marine Management System Offices world wide, in Dubai, Hong Kong, Houston, Piraeus, Rotterdam, Singapore and Southampton. This structure enables us to provide a quick response to our clients and a good understanding of the local issues our client face. These offices are also involved in coordinating certification to other management system certification for the Marine industry, including ISO9001, ISO14001 and OHSAS18001. Implementation of the requirements of the ISM Code helps companies to ensure safety and quality, and manage business risks while offering opportunity for continuous improvement.

The ISPS Code forms a framework through which ships and port facilities can co-operate to detect and deter acts which pose a threat to maritime security. Implementation of the requirements of the ISPS code helps companies to assess the security of their ships and to put in place adequate security measures. Our certification provides our clients with evidence of compliance with the requirements of the Codes on behalf of the Flag administrations. In addition we use the experience and training of our global network of auditors together with the support provided by our experts, to work with our clients in the development of mature and effective management systems. For further information, please email: mms@lr.org Technical Performance Group Brian Purtle is the Technical Performance Group Manager and a member of the Classification Executive. The prime function of the Technical Performance Group is to monitor and identify performance issues which could effect the quality of service delivery for New Construction surveys, Periodical Ship surveys and Materials and Component surveys.

Our activities are coordinated through seven Marine Management System Offices world wide, in Dubai, Hong Kong, Houston, Piraeus, Rotterdam, Singapore and Southampton.

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Such data is essential to marine safety and needs to be available on a continuous basis.

The London-based Technical Performance Group liaises closely with the well established network of Area Technical Performance Managers who are based throughout the Americas, Asia, Europe, Middle East and Africa. The results of this performance monitoring are fed back to the business via technical reports, recommendations and discussions which can ultimately bring about changes, or amendments, to the Rules and Regulations and the survey procedures and to apply a consistent approach during surveys. A further function of the Technical Performance Group comes via the Marine Data Systems section, also based in the London office. This section maintains a comprehensive database of information related to Hull and Machinery damages, defects, fires, explosions and groundings. The data has been gathered continuously from our surveyor survey reports from some 30,000 ships over a period of almost 50 years. During a typical year over 18,000 survey reports are processed. The information in the database is recorded, interrogated and analysed by technical specialists and used to produce a variety of reports for use by internal and external clients and more than 130 investigations are carried out each year. Reports covering a variety of technical issues are regularly requested by internal and external clients to assist in the early identification, or prevention of potential defects or failures in ship structure, machinery and equipment. For further information, please email: tpg@lr.org or database@lr.org

Survey systems Alan Owen is the manager of the Survey Systems department, with the principal objective of managing survey-related data for all Lloyds Register classed vessels throughout their in-service lifecycle. Such data is essential to marine safety and needs to be available on a continuous basis to our marine surveyors, ship operators and regulators. Survey Systems is responsible for performing the following main functions: Maintaining the survey control and reporting systems used to manage survey data, including the supply of survey status information to our ClassDirect LIVE web application for the benefit of our clients. The systems also benefit our surveyors each time a Survey Preparation Package is requested prior to the conduct of surveys, using the Surveyor Support System (SSS). All client requests for the postponement of surveys as agreed by Classification Devolved Class Executives (DCEs) are recorded in the database. Administration of ClassDirect LIVE giving access to up-to-the-minute information from our databases to thousands of users worldwide from ship operators and surveyors to shipbuilders and flag administrations. For further information please contact cdlive@lr.org Production and distribution of the Quarterly Listings. As the name suggests, this document detailing the survey status of every Lloyd's Register-classed vessel is produced every three months at the beginning of March, June, September and December and mailed to each client,

resulting in over 30,000 listings per annum, distributed to around 2,500 clients world-wide. For further information please contact Tony Barnham T: +44 (0)20 7423 2235 E: tony.barnham@lr.org Exhibition of Records, typically, to prospective buyers of Lloyd's Registerclassed ships (or agents authorised to act on their behalf) who have gained the written consent of the current owner, to access survey reports and Thickness Measurement records in order to make an assessment of the vessels condition. For further information please contact Joe Elliott T: +44 (0)20 7423 2270 E: eor@lr.org Co-ordinating sales and order-processing of LR Rules products (with the exception of RuleFinder which is distributed by External Affairs). Purchase of rules products is now performed via our on-line Web Store ( HYPERLINK "http://www.webstore.lr.org" www.webstore.lr.org). Details of all products are available through the on-line catalogue and the ordering process is the same as for any on-line retailer. The extra advantage of the Web Store for our clients is that they can manage their own accounts, subscribe to Rules Notices (which will be E-Mailed automatically upon publication) and browse the catalogue which is continually updated. For further information please contact Helen Brailey, Rules Distribution Co-ordinator T: +44 (0)20 7423 1745 E: rules@lr.org Continued >

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In preparation for a successful CAP process and to assist clients during surveys we inspect a ship and assess its condition to a defined standard which is above class minimum requirements.

Ship Inspection & Assessment Services Udi Bar-Lev is the Ship Inspection and Assessment (SIA) global manager, in charge of four regional SIA centres based in Singapore, Piraeus, Southampton and Houston. The SIA products are all considered as consultancy for Lloyd's Registers marine clients and complement Class services, however almost 30% of SIA services are delivered to non-LR classed ships. The followings are the main SIA products:

Condition Assessment Programme (CAP): Starting in the early 90s, oil majors required any oil tanker above 20,000 dwt, aged 15 years or more, to go through condition assessment survey. The requirement was extended to all tankers (Chemical, Gas) and recently to capesize Bulk Carriers. To the client, acceptable CAP rating with a supportive report means better position to get his ship trading with preferred charterers.

In preparation for a successful CAP process and to assist clients during surveys we inspect a ship and assess its condition to a defined standard which is above class minimum requirements. The level of compliance to this standard is known as the CAP rating. There are four levels: 1 - Good, 2 - Satisfactory, 3 Unsatisfactory and 4 Poor.

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Sale and Purchase support aims to help address the risks associated with secondhand purchase/charter and provide standard reports for clients.

Class minimum requirements are at level 3, which means unsatisfactory for CAP although acceptable to class. The rating achieved is stated on a certificate issued to the client. Separate CAP ratings are given to the condition of the Hull, Machinery and Cargo systems of the ship. We also provide assistance and support when they need to comply with end-users requirements. Hull Renovation Scheme (HRS): Starting in 1989, we were marketing a service to allow owners to renovate their hull structure to a defined standard. The scope of the service: Examination of Records Survey of the hull structure with thickness measurements Surveyor reports Analysis of the TMs A report with recommendations When recommendations have been dealt with, a second visit is paid to the ship for surveyors to report/confirm results. A final report is then issued to owners who have maintained or upgraded the structure of their ship to a closely defined level above the classification levels for renewal. Advantages and benefits are objective evidence of ships hull quality; enhanced re-sale value (asset maintenance); extended ship-life (revenue) and possible avoidance of port restrictions on aged ships (revenue) Hull Integrity: Hull Integrity is a software based service. It is a tool for ship operators aimed to assist them in maintaining structural integrity across their fleets.

The scope of the service: Ship software pack Web based program Ships specific Hull structural guide Training courses (web based, CD and frontal) The service is based on the recording of tank inspections by suitably trained senior ship's officers or superintendents, aided by hardcopy inspection guides written specifically for each ship. The inspection results are recorded using a ship-based software package and transmitted electronically to a secure web site. This approach enables worldwide access by authorised users to the inspection database via the internet. Functions available include the ability to review inspection reports transmitted from ships, to generate repair lists and to perform defect analysis across the fleet. Key benefits: Effective inspection and recording Improving preparation for repairs, surveys and down-time Can help to identify defects and deterioration early on, allowing timely preventative action and safer ship operation Compliance with charterers and financiers by enabling demonstration that ships are maintained to high standards Sales & Purchase (S&P): Sale and Purchase support aims to help address the risks associated with secondhand purchase/charter and provide standard reports for clients. It is comprised of two main activities:

Examination of Records Independent examination of ship classification records on behalf of potential ship-owners or other interested parties. Service includes confidential report on the vessel, indicating present classification status, any conditions of class and detailing any noteworthy damages or defects. Condition Surveys Pre-purchase condition survey rapid examination afloat of all areas readily accessible to ascertain the vessels general condition at the time of survey. Specialised condition survey more extensive survey suitable, for example, for assessing the viability of extending a vessels useful life or carrying out conversions. On-hire/Off-hire condition surveys highlight defects and deficiencies to structure/coatings and equipment onboard, which is usually in dry-dock at the commencement of a charter and at the end of a charter When a CFO receives a request for S&P from a client, the CFO is responsible to co-ordinate surveyors with the SDO and provide the instructions to the surveyor/s as per clients request.

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Devolved Classification Executive Committee (DCE) in Greece

Hellenic Lloyds Marine Operations is responsible for 26% of the worldwide Lloyds Register classed fleet and is in daily contact with our clients, always ready to cover clients needs and expectations. The Greek shipping community is a very demanding arena; therefore it is our primary aim to provide our services in the most efficient way, through technical excellence, continuous support and quick response.
To this effect the decentralisation of Lloyd's Registers decision making centres is crucial in order to be closer to our clients, to maximize responsiveness and to provide individual and personalized responses to clients requests and queries with enhanced efficiency and local technical excellence. In line with the above philosophy, the Piraeus Devolved Classification Executive Committee (DCE) directly handles requests from Greece, Cyprus, Bosnia & Herzegovina, Croatia, Israel, Italy, Malta, Monaco, Slovenia, Turkey. It acts under the authority of the London Classification Committee for considering and agreeing postponements of classification and statutory surveys, co-ordinating issues with Flag Administrations, making contacts with other Lloyd's Register offices when necessary, making sure the processes followed are client-focused, and that Lloyds Register procedural requirements are met. Mr. Spyros Anastassovitis, Chairman of Piraeus DCE says: Piraeus Devolved Classification Executive has as a first priority to offer sound technical advice and meet Clients expectations in the

highest effective way. This is of crucial importance for the Service delivery to the Greek Shipping Community, and the successful outcome is driven by efficiently co-ordinated technical guidance and high level support functions.

Mr. Spyros Anastassovitis, Marine Technical Manager, DCE, Piraeus

Piraeus Devolved Classification Executive has as a first priority to offer sound Technical Advice and meet Clients expectations in the highest effective way.

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Extended Dry Dockings provide flexibility to qualifying operators

Recent interest has been shown in Lloyds Registers pioneering work in piloting a 7.5 year Extended Dry Docking survey.
Lloyds Register has been carrying out a first of its kind pilot scheme for Extended Dry Dockings (EDD) with a major containership operator for five years now. The procedures agreed with the operator and with the Danish Maritime Authority, as well as other flags, have been carefully thought through and are in no way a reduction of the controls provided by the special survey regime. The scheme is predicated on a number of factors to secure class and flag state approval.

Under the scheme certain dry dockings are replaced by in-water surveys (IWS) carried out by approved diving companies. The benefits to operators are increased flexibility in choosing a dry docking window and, with proper maintenance programmes in place, the potential for the hull to stay in water for up to 7.5 years. Some operators may be able to realise benefits and, potentially, cost savings but those considering the scheme need to carefully consider the implications on operating costs and maintenance planning of pushing the docking cycle out to 7.5 years. Safety is always the paramount concern. To date, the combination of our procedures, the involvement of a first-class operator

and experienced flag states, is providing appropriate oversight with respect to safety. The operators of ships involved must take a demonstrable and sophisticated approach to the maintenance and management of ship operations. Requirements for survey while in-water include arrangements for testing and maintenance of seawater valves and that measurement of rudder and tail shaft clearances are undertaken as would be required during a dry-docking. Coatings must be of a high quality suitable for extended docking cycles and in line with manufacturer's guidelines. Continued >

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Lloyds Register will work closely with the Owners who wish to apply the scheme. Operators should fully investigate the requirements and the realities of extended docking cycles the scheme is not a simple cost-cutting exercise but a potential element of a sophisticated approach to operational maintenance.
Iain Wilson, Lloyd's Register Fleet Services Manager

Ships should normally have been operated by the Company from new and operated by a company with a proven track record as well as having a good record of inspection (combined history of Flag and PSC). Impressed Current Cathodic protection is required together with regular monitoring and all Survey Planning Documentation is to be submitted to Class and Flag well in advance of survey. Extended docking survey cycles will not be appropriate or possible for all types of ship nor all operators. The pilot scheme is currently restricted to larger container ships but smaller container and general cargo ships may qualify. Bulk carriers and tankers are excluded from consideration due to the Enhanced Survey requirements under which a docking survey is required at each Special Survey.

The future use of EDD currently looks promising on the evidence of performance to date. It requires a pro-active approach by management to move beyond the current mainstream prescriptive requirements and it is in the operator's best interests to avoid unscheduled, and probably costly, dockings by prioritising well documented maintenance and inspections in support of safety. EDDs may be appropriate for prudent owners, offering them a greater degree of flexibility for their Dry Docking Schedules allowing them to carry out continuous surveys and use in-water surveys (IWS) to monitor underwater areas.

Contact: classificationgroup@lr.org

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There are a number of issues relating to 7.5 year EDD that must be considered prior to acceptance into the scheme, summarised below: Qualifying Ship Types In accordance with IMO resolution A744 (18), the scheme cannot be applied to Enhanced Survey Programme vessels most bulk carriers and tankers and, by SOLAS, cannot be applied to passenger vessels. Due to the trading pattern, current owner planned maintenance and original design it is currently only being considered applicable to internationally trading Container ships however other ship types (including short sea trade container ship and LNG) could possibly be considered on a case by case basis, but will need to address the issues below. Flag Administration acceptance As the option of the method of the inspection of the outside of the ships bottom is a statutory requirement, the flag administration will need to agree to the inclusion of a specified vessel and Owner on the scheme. In the past the UK, Danish and Singapore flags have agreed to consider the scheme for individual vessels. Liberia and Marshall Islands are currently initiating the scheme, and it is understood that Germany and Antigua & Bermuda flag administrations have agreed schemes Age For ships less than 10 years of age (except Enhanced Survey Programme ships), they are required to be inspected in dry dock at intervals not exceeding 7.5 years. Ships over 15 years of age will need to be inspected in dry dock unless specially considered and agreed otherwise. The ideal age for commencement of EDD is for ships between 0-5 years of age. Other Requirements These include: Quality of coatings; corrosion protection (anodes); the need for the ship to have been classified from construction with an IACS society and have appropriate assigned class notations; submission of detailed in-water (IWS) survey plans: cables ranged as per special survey requirements at 10 years, thereafter 5 years; ships should avoid operations in ice.

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Cleaner air and more oil in the tank Teekay is helping an industry under pressure

Reducing VOC emissions from crude oil tankers helps cut the environmental impact of ship operations and saves on hard won resources, writes Teekays Vice President, Technology Development, Dr Hans Richard Hansen.
Volatile Organic Compounds (VOCs) are the hydrocarbon gases emitted during the crude oil transportation process. They represent a proportion of the cargo lost as fumes. The main constituent gases of

VOCs are methane, propane and butane the latter two are both heavier than air and the main concern to date has been their potential negative impact on human health in loading zones. Since 2002 Norway has regulated VOC emissions from tanker operations on its continental shelf mainly related to North Sea shuttle tanker activity. Another significant component of VOCs is methane (the same gas that, cooled and liquefied, is known as LNG) this lighter gas rises immediately to the upper atmosphere where it poses no immediate risk to health.

VOCs are greenhouse gases and contribute to shipping and the oil industrys carbon emissions: the methane immediately on release, while the propane and butane components, when broken down by environmental exposure, eventually form CO2 in the atmosphere. If VOC emissions could be either mitigated or prevented, shippings contributions to global warming could be reduced and additionally, as VOC represent lost cargo, delivered crude oil stems would be increased providing more oil and financial benefit to cargo owners and reduced wastage of resource.

Schematic of VECS system

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VOC emissions from the crude trade can be reduced by some 1-2 million tonnes annually. reducing the carbon footprint of the crude transport industry by about 5%.

Dr Hans Richard Hansen

Hans Richard described Teekays extensive experience in operating ships in compliance with the Norwegian VOC Emission Regulation. Along with other Norwegian sector tanker operators, Teekay has employed VOC emission reduction systems to reduce the venting of the gaseous compounds that make up the VOCs from oil cargoes. Mr. Hansen described a range of technical solutions that have been employed in the North Sea including absorption, condensation and KVOC technologies. The total investment by operators to date has been in the region of US$ 250M. The annual operating expenses for these systems are around US$ 20M. These systems are all

installed on a retro-fit basis on board ship to reduce VOC emissions during loading. Reductions in VOC emissions have been considerable Norwegian shelf shuttle tanker emissions have fallen from 160,000 tons in 2002 to 25,000 in 2009. But this is a relatively small fleet and reduces emissions of total crude oil shipments by a tiny percentage. The world-wide seaborne imports of crude oil are around 20 million barrels daily. Crude oil is mostly a long haul cargo; the tonne/mile proportion of world seaborne trade is high. VOC emissions from the crude trade can be reduced by some 1-2 million tonnes annually, reducing the carbon footprint of the

crude transport industry by about 5%. An additional benefit would be a reduced contribution from the crude trade to ground-level ozone. Two major changes need to be implemented to capture such savings. Firstly, tanker design would need to be modified to enable carriage of oil under pressure, at the modest level of 1.2 to 1.7 bar. Teekay have already raised the tank pressure on one of their tankers, Navion Hispania, to 1.2 bar, a pressure level that most tankers can accommodate with minor modifications. Continued >

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The MARPOL Convention introduces requirements to VOC emissions for the first time this year.

The increased pressure in the Navion Hispanias tanks provided 15-20% reduction in VOC emissions during loading. Also re-absorption of VOC during the voyage using a GBA Swirl Absorber eliminated emissions during transit and eliminated the need to vent if tank pressure needs to be reduced before discharge. Four Amundsen class shuttle tankers due to be delivered to Teekay in 2010 and 2011 are designed to load and carry crude oil under a pressure of 1.7 bar. In addition to the capability to load at increased pressure, other systems being installed on the Amundsen class ships are: A GBA Swirl Absorber, or CVOC for re-absorption of VOC gas into the crude oil, integrated with automatic control of cargo tank pressure. KVOC which is an increased diameter drop line system developed by Knutsen OAS. The system reduces the underpressure (siphon effect) that occurs in a conventional drop line, thereby reducing the flashing of gas from the crude oil during loading. Increased cargo tank pressure together with KVOC is expected to reduce VOC emission during loading with 60-70%, and by employing the GBA Swirl Absorber, the laden voyage can be accomplished without venting of VOC to air.

Key VOC Facts Breakdown of the VOC column The Propane and Butane, at low altitudes, break down in sun light into Ozone, which in high concentrations can impair human health and damage vegetation and materials. The Methane component rises immediately to the upper atmosphere where it acts as a greenhouse gas.

VOC Management Plan In the revised MARPOL Annex VI, coming into force on 1 July 2010, there is a requirement for an Approved VOC Management Plan; Lloyd's Register has provided relevant supporting information in Classification News No. 41/2009 dated December 11, 2009. Lloyd's Register has also produced a template and checklist to assist managers in producing their plans.

The additional investment for design changes and the installation of the required systems as employed on the Amundsen newbuildings is less than $3 million. But retrofitting a Swirl Absorber and operating at 1.2 bar can be achieved at a cost of less than $1 million. If implemented on the crude fleet, this would be equivalent to reducing its carbon footprint by 2 to 3 %. Additional benefits would include an improved working environment on board and in the locality of tankers terminals by reducing VOC related health risks. Ships need help from the shore The next big step to further reduce VOC emissions would involve effective use of the Vapour Return system. Most tankers have Vapour Return systems but few terminals are prepared to use this capability to fully close the vapour emission loop.

If the tanker and terminal industry cooperated in the transfer of tank atmosphere between ship and shore during loading and discharge this would probably be equivalent to an additional 5% reduction of the carbon footprint of crude oil transportation by sea. The MARPOL Convention introduces requirements to VOC emissions for the first time this year. These regulations are limited to requiring owners to develop and operate according to a VOC plan. In the future this can be made more effective by operating at somewhat higher pressure, with the aid of installations such as the GBA Swirl Absorber, on all crude tankers.

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the safe, reliable, efficient and environmentally sound operation of our vessels

Almi Tankers S.A. has become the first company worldwide to sign up their fleet to FOBAS Engine Lloyds Registers recently launched performance monitoring service. FOBAS Engine delivers extended fuel and lubricant telemetry regarding engine performance to ships crews and operators, giving ships in its programme a detailed indication of what is happening within large marine diesel twostroke engines.
The service also provides practical guidance when any deteriorating engine conditions are encountered enabling action to be taken before damage is caused. The benefits of FOBAS Engine include reduced maintenance costs, diminished potential engine downtime and reductions in cylinder oil feed rate. As the shipping industry continues to seek improved engine performance, this new service helps enhance operators ability to operate efficiently reducing both costs and emissions. Panayiotis Drossos, CEO of Almi Tankers S.A. says: In times of high environmental pressure and cost demands imposed on shipping, we are confident that we have made a step forward to practically demonstrate our ongoing commitment to the safe, reliable, efficient and environmentally sound operation of our vessels.

The FOBAS Engine service is delivered using eight points of performance analysis via a thorough assessment of the key condition variables that affect the efficient operation of engines. It offers a significant increase in day-to-day knowledge of operational engine performance, and provides a clear indication of combustion, performance, lubrication and wear conditions for slow-speed two-stroke marine diesel engines. This is achieved through detailed analysis of engine performance variables combined with advanced dilution analysis of used cylinder, fuel and system lubricating oils.The crew are thus able to make any necessary adjustments to achieve optimised engine operation.

Commenting on the deal, Efthymios Louridas, Lloyd's Registers Client Manager for Almi Tankers S.A. says: Our scope as Classification Society is to serve the clients needs but providing at the same time innovative and sustainable solutions. We are proud to acknowledge that Almi Tankers S.A. has engaged with Lloyd's Register in a holistic and solid solution that will definitely prove its technical and financial merits on one of the youngest fleets of the Greek shipping industry. For further information contact: Tim Wilson, FOBAS Product Manager, London T: +44 (0)20 7423 1870 E: timothy.wilson@lr.org

Our scope as Classification Society is to serve the clients needs but providing at the same time innovative and sustainable solutions.
Efthymios Louridas, Lloyd's Registers Client Manager for Almi Tankers S.A

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Whats on the radar

Since the 1970s, the answers to the environmental questions facing the maritime world have been spearheaded by the International Maritime Organization (IMO), the body which regulates shipping through international consensus.
Our environmental roadmap outlines the key existing and forthcoming legislation from the IMO up to the end of 2016, identifying future compliance dates and emerging regulations.

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Classification News Digest

The following Classification News bulletins were released by Lloyd's Register over the past four months:

No. 17/2010
STATUTORY ALERT Entry into force of the Revised MARPOL Annex VI a reminder APPLICABILITY All shipowners, operators and charterers INFORMATION Classification News 31/2008 gave details of revisions to MARPOL Annex VI which will enter into force on July 1, 2010. This Classification News is a reminder that certain aspects of the revised MARPOL Annex VI will have immediate effect. In particular: the maximum permitted sulphur content of fuels used in the two emission Control Areas for sulphur (the Baltic and North Sea area) will reduce from 1.50% to 1.00% all ships will be required to maintain a list of equipment containing ozone-depleting substances (ODS) and an ODS record book tankers carrying crude oil are required to have on board an approved VOC Management Plan (see Classification News 41/2009 and 03/2010). In addition to the above, the Revised Annex VI includes amendments to the International Air Pollution Prevention Certificate and its supplement; as a result, all certificates and supplements will be required to be reissued. This will be carried out as follows. For ships which currently hold an International Air Pollution Prevention Certificate or a Certificate of Compliance, the certificate and its supplement will be reissued at the next renewal survey after July 1, 2010, or on any other occasion (such as change of flag or name) which would necessitate the reissue of the certificate and its supplement, whichever comes first. Where applicable it will be confirmed that an approved VOC Management Plan is on board. Ships flying the flags of countries which are not signatories to the Convention should be issued with a Certificate of Compliance with Annex VI. 46

No. 13/2010
STATUTORY ALERT Means for fully recharging breathing apparatus air cylinders new SOLAS regulation II-2/10.2.6 APPLICABILITY Shipbuilders, owners and managers INFORMATION Under new SOLAS regulation II-2/10.2.6 (adopted by Resolution MSC.269(85)), passenger ships carrying more than 36 passengers, constructed (having their keel laid) on or after July 1, 2010, must be fitted with a suitably located means for fully recharging breathing apparatus air cylinders, free from contamination. The means for recharging must be either: breathing air compressors supplied from the main and emergency switchboard, or independently driven, with a minimum capacity of 60 litres per minute (l/min) per required breathing apparatus, not to exceed 420 l/min, or self-contained high-pressure storage systems of suitable pressure to recharge the breathing apparatus used on board, with a capacity of at least 1,200 litres per required breathing apparatus, not to exceed 50,000 litres of free air. The means for recharging must be installed by a competent person in accordance with the manufacturers instructions. Compressors should be installed in accordance with BS EN 529: Respiratory protective devices Recommendations for selection, use, care and maintenance Guidance document or an equivalent national standard.

INFORMATION Changes to the International Safety Management (ISM) Code, introduced by IMO Resolution MSC.273(85), will come into effect on July 1, 2010. While some of the changes are editorial, others introduce new requirements or make explicit some of the previously implicit requirements of the ISM Code. What has been amended? Guidance on implementation of the changes is attached to this Classification News, along with a copy of Resolution MSC.273(85). The following is a summary of the changes: Clause 1.1.10 the definition of a major nonconformity now makes clear that this can be either a lack of effective and systematic implementation of a requirement of this Code or an identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action. Clause 1.2.2. the objectives now explicitly require assessment of all identified risks to the Companys ships, personnel and the environment; the requirement to establish appropriate safeguards remains. Clause 5.1.5. the Masters responsibility to review the Safety Management System (SMS) and report its deficiencies to the shore based management now needs to be periodic. Clause 7 the requirement to establish procedures for key shipboard operations has now been rephrased to concern the safety of the ship and protection of the environment and now also includes the safety of personnel. Clause 9.2 the requirement for implementation of corrective action now specifically includes measures intended to prevent recurrence. Clause 12.1 internal safety audits are now required to be carried out on board and ashore at intervals not exceeding twelve months; in exceptional circumstances this can be exceeded by three months.

No. 12/2010
STATUTORY ALERT Changes to the International Safety Management (ISM) Code effective July 1, 2010 APPLICABILITY All Companies as defined in the ISM code

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Clause 12.2 the Company evaluation of the safety management system is now required to address the effectiveness of the system. Clause 13 new paragraphs have been introduced to bring International Safety Management Certificates into line with the provisions in SOLAS relating to the extension of statutory certificates. Clause 14.4.3 now clearly states it is an internal audit which must be held within three months of the interim audit. Clauses 8.1 and 10.3 editorial changes only.

No. 06/2010
STATUTORY ALERT Ratification of the AFS Convention by Singapore APPLICABILITY All shipowners and operators INFORMATION The International Convention on the Control of Harmful Anti-fouling Systems on Ships (the AFS Convention) enters into force for Singapore on March 31, 2010. With effect from this date, all ships (excluding fixed or floating platforms, floating storage units (FSUs) and floating production storage and offshore loading units (FPSOs)) entering Singapore waters, including all harbour craft and pleasure craft, are prohibited from applying or using harmful anti-fouling systems. Vessels entering Singapore waters that are not flagged with Singapore. From March 31, 2010, these vessels must comply as follows: Vessels of 400 gt and above that are flagged with an AFS Convention state are required to carry on board an International Anti-fouling System Certificate. Vessels of less than 400 gt but 24 metres or more in length that are flagged with an AFS Convention state are required to carry a Declaration on Anti-fouling System. Vessels of less than 400 gt and below 24 metres in length that are flagged with an AFS Convention state may be subject to PSC inspections carried out in accordance with the IMO Guidelines for Inspection of Anti-Fouling Systems on Ships. Vessels not flagged with an AFS Convention State may be subject to PSC inspections carried out in accordance with the IMO Guidelines for Inspection of Anti-Fouling Systems on Ships.

No. 07/2010
STATUTORY ALERT Guidelines for ships operating in Polar waters APPLICABILITY Shipbuilders, owners, operators and managers INFORMATION The IMO has developed voluntary Guidelines for ships operating in Polar Waters, adopted at the 26th session of the Assembly. The IMO Resolution A.1024(26) updates MSC/Circ.1056 and MEPC/Circ. 399 Guidelines for ships operating in Arctic ice-covered waters. The Guidelines are intended to be applicable to new ships with a keel laying date on or after January 1, 2011, operating in Polar regions (the Arctic and the Antarctic). They contain provisions that recognise the additional challenges in Polar waters other than icecoverage and emphasise the need to consider the nature of the operations that are anticipated and provisions for environmental protection. The Guidelines also identify requirements for all ships operating in Polar ice-covered waters to carry at least one Ice Navigator who, in addition to being qualified under the STCW Convention, is specially trained and qualified to navigate a ship in ice-covered waters. These requirements are currently being developed by the IMO STW sub committee.

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