Ship Characteristics and Operations

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Ship Characteristics and Operations

• Presented at Columbia University
• 14 October 2003
• Presented by Peter K. Wallace
• Knickerbocker Maritime
• Peter.wallace_at_knickerbocker-maritime.com
• www.knickerbocker-maritime.com

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Introduction

• Discuss ships and their operations.
• Description of operations
• Physical characteristics of ships
• Will NOT cover the trade patterns or the
  commercial/financial aspects of shipping.

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Strengths of Shipping

• Multinational
• Mature
• Physical
• World market with world real currency/trading
• When goods dont cross borders, armies do.

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Weaknesses of Shipping

• Perceived to be a Black Art
• Low Returns
• High Risk
• Large Liability
• The problem is that shipping is like the larger
  world in which it operatesan inherently
  disorderly affair, existing mostly beyond the
  reach of nations and their laws, beyond the dikes
  and coastal horizons, and out across the open
  seas. It is not exactly a criminal industry, but
  it is an amoral and stubbornly anarchic one. And
  it admits as much about itself

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Types of Ships

• Energy is transported on various types of
  specialized ships
• Tankers
• Crude
• Clean and Dirty Product
• There are other tanker types such as food grade
  and chemical
• LNGLiquefied Natural Gas
• LPGLiquefied Petroleum Gas
• Others include Bulkers (thermal coal) and Nuclear

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Ship Sizes (Tankers)
Source Poten Partners
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Various Ships
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Tanker industry Responsibility Chain
SHIPOWNER
CLASS SOCIETIES
CHARTERER
SHIPYARDS
CARGO OWNER
INSURERS
PORT AUTHORITIES TERMINALS
FLAG STATES
PILOTS
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Governing Bodies

• International Maritime Organization (IMO)
• Classification Societies (IACS, Class)
• Port State
• Flag State
• NGOs Intertanko, Intercargo, BIMCO

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Major Operating Codes

• ISM/ISOOperating Documentation and Compliance
• STCWCrew Qualifications
• MARPOLPollution Prevention
• SOLASSafety and Life Saving
• ISPSShip and Port Security

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Owners, Operators and Managers

• Shipowners
• Operators
• Commercial Managers
• Technical Managers
• Specialty Managers--Crew Managers
• All varieties of operating models are common.
  Many firms use a variety of models on a
  case-by-case basis.

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Commercial Chain
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Operation Chain
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Characteristics of Shipping--Flags

• Flags of Convenience (non-ITF)
• Open Registry (ITFno other restrictions)
• National Flag(tight citizenship/build/trade
  restrictions)
• Paris MOU List

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Paris MOU List
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Characteristics of Shipping--Insurance

• Insurance divided into several categories.
• Protection and Indemnity (PI)club arrangement
  (self insurance)
• Hull and Machinerymore traditional, but somewhat
  self insured
• Cargotraditional insurance.
• COFR and other large lines Disaster insurance.
  Large coverage on small asset base.

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Characteristics of Shipping--Crewing

• National/Multi-National
• ITF, non-ITF (International Transport Federation)

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Characteristics of Ships--General Arrangement

• General ArrangementThis is a picture of the ship
  which provides a good indication of the major
  systems, structures and general idea of the
  vessel. The details are subjects of other
  extensive manuals and drawings.

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GA--Pre-MARPOL VLCC
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Ship Systems--Basic Outline

• Compartmentalization
• Structures
• Cargo/Ballast Handling System
• Tank Cleaning
• Propulsion
• Navigation

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Ship Systems--Compartmentalization

• Pre-Marpol--Mixed Ballast and Cargo
• Marpol--Single Hulls with Segregated Ballast
• Double Hull--Protective Hull
• DH vessels have had problems with sloshing and
  stability
• Pre-Marpol Vessels have had pollution and
  corrosion problems
• Marpol vessels have had capacity problems

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Capacity Plan--VLCC
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Capacity Plan--Double Hull
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Ship Systems--Structures
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Ship Systems Cargo/Ballast Handling System
Single Hull VL
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Ship Systems Tank Cleaning
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Ship Systems Tank Cleaning
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Ship Systems Propulsion
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Ship Systems Propulsion
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Ship Systems Propulsion
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Ship Systems Navigation

• 100 years ago Sextants, chronometers and charts
• 30 years ago CASS Loran C and Omega
• 15 years ago GPS
• 5 years ago Electronic charts

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Safety Systems Basic Outline

• Structures and Compartmentalization
• Fire Fighting
• Inert Gas
• Miscellaneous

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Safety Systems Structures and
Compartmentalization

• SHOW GA of DH

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Safety Systems Fire Fighting

• Fires are among the most serious of shipboard
  problems. It is rivaled only by an incident
  which compromises the hull to the point of break
  up and sinking.
• Fire Fighting is divided into multiple systems
  with redundancy.
• Water
• Foam
• Halon or CO2

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Safety Systems Inert Gas
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Safety Systems Inert Gas
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Safety Systems Miscellaneous

• There are many miscellaneous safety and life
  saving systems and appliances.
• Emergency Towing Systems
• Safe Access to Bow
• Life Boats and Life Rafts
• Fire Wires

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Safety Systems Miscellaneous
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Classification

• PurposeIndependent Verification of vessel
  construction and operation
• OrganizationsClass Societies
• Basic Services--Plan Review, Surveys
• Enhanced ServicesISM/ISO, CAP/CAS
• Additional ServicesPM, Spill Response,
  Additional Analyses

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Other Indicators of Quality

• Class Societies and owner/operators have been
  under increasing attack in the past 15 years.
  Thus, charterers/oilcos use Vetting, CAP and open
  Questionnaires as commercial requirements.
  Tankers and LNG/LPG are leading the rest of the
  shipping industry in these areas.
• Vetting
• CAP
• Transparency

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Spill/Emergency Response

• Spill/Emergency Response is a result of OPA 90
  and other incidents.
• Basic Elements include
• Engineering
• Salvage
• Media Response
• Cleanup
• Commercial and Liability Response
• Some areas require escort tugs in sensitive areas

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Ports and Port Characteristics

• A wide variety of ports and port facilities
• LocationsAccessible and less than accessible
• OffshoreSPM or F(P)SOs
• OnshoreRivers, bays, harbors
• LighteringOffshore

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Ports--Offshore Bouy
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Ports--F(P)SO/FSU
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Ports--Shore Terminal
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Ports--Lightering
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Ports--Lightering
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Trends in Design and Operation

• Move towards LNG, LPG and Product
• Crude is moving towards Afra and Suez rather than
  VLCC/ULCC. There is still VLCC building, but not
  on the same scales. ULCCs, with the Hellespont
  exceptions, have not been built in a very long
  time.
• Why? Just in Time for refineries. Basic
  refinery work at production sites, shift toward
  gas for energy.
• Liability and Flexibility

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Recommended Reading

• The Prize
• Commanding Heights
• Maritime Economics
• The Invisible Billionaire
• The Shipbreakers (Atlantic Monthly, August 2000)