ship efficiency report

7/28/2019 Ship Efficiency Report

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lloydslist.com bringing you maritime news as it happens

CONTENTS INCLUDE...

As fuel bills rise, so will interestin technologyand software 2

Meet LL Hypothetical: a bulkerin need of optimisation 2

A goodpaintjobisagood start 3

A blueprint forshipoptimisation 4-5

MAXIMISING

SHIP EFFICIENCYA special reportfromLloydsList | lloydslist.com | Thursday22nd March, 2012Twenty options forenhancing your asset 6-7

Getting technicalgivesrewards 8


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ThursdayMarch 22, 2012 Lloyds List


As fuel billsrise, so will

interest intechnologyand software

THEREhasbeena lotwrittenaboutwhatthe shipownershouldbe doingwithhis prizedassets. Slowsteaming,trading itsemissions,installingmandatorypiecesof equipmenttomeetaraftofnewrules,thelistofdemandsis high.

Butthere isno doubtthatwhilemany of themultitudeof sometimesconfusing andoften wellmeaningrulesand lobbyistproposalsarepersistent,they arebeginning topaleunderthe biggerconcernof rising fuel

prices.Standardheavyfuel oil,of 380centistoke iscurrentlyaround$750pertonne, though varying betweenmajor bunkeringhubs.Economistsinmany shippingareaspoint topeak oilconcernsand theeventualswitchtodistillate fuelsfor somevessels asadditional driversthat willmakeowners lookclosely at howtheymanagetheir fleets.

While mostownersthat have todealwith huge fuelbillsare hedgingonthe price,bunkers canstill accountforupto 70% ofa fleets operatingcosts,a figurethatisset toincrease ascosts rocket. Forownersthat expect

charterers topickup thefuelbill,theindicationsare theyare alsobeginningto lookhardat thisrisingcost.

Stepforwardthe technologycompaniesand theconsultants.Seeing a market before themtheyhave roundedsquarelyon theshippingindustrywithnew productsandofferings.Some aretoo new, somearefresh looksat oldideas andothersaresimpleprocesses thatwill giveeasyreturns, theso called lowhangingfruit.

Theintroductionof theenergyefficiencydesignindexonnewbuildingswill eventually domuchto drive fuelefficiencyintotomorrows fleet.The problemis thiswillonlyhave aneffect asnew vessels

aredelivered withan EEDIvaluethatmeetsthe specificbenchmarklimitforthatyear it isdelivered. If fleet

renewalis slowbecause thereare veryfewdeliveries,then EEDIcouldhave alimited impact fora number of years.Somecriticssay itwill notimpactemissionsfromshippinguntil2035.

Thereare movesto tryandgettheEEDIappliedto existingships.This isgoing tobe difficultand according tosome irrelevant, althoughguidelineswritten by theInternationalMaritimeOrganizationhavegivenownersthepossibility of gettinga voluntaryEEDIvalue if theydesire.

Nonetheless,the IMO hasat leasttwoproposalsfor potentialmarketbased measuresthat willuse theEEDI

formulato helpdeterminea fiscalpenalty forpoor performingships.Theproposals areup against thoseforemissions trading schemesand afuel levy.

Technicaldepartmentsinshipowning companiesare takingfuel managementseriously.Manyreportthat theyhavebeen lookingatvarioustools andmeasures, someofwhich likethe flettner rotorand the

airlubricationsystemfall intothewaitand seecategory, otherssuchastrimoptimisation, engine deratingandthe oftunderestimatedroleofcrewawarenessare easyandaffordablegains.

Thedemandsto dampen theimpact ofrisingfuel prices withoperational and technologicalmeasureshas increased,but thereremains a lotof uncertainty overtheclaims madeby manufacturersandconsultants whohaveseen a growingcaptivemarketemergebefore them.

A number ofshipowners withtheirowntechnical departmentshave

investeda lotofmoneyandtimeinresearching theirin house solutionsforfuel management.

Onecompanythat hasdevelopedanin-housetrim optimisationandvoyageperformance tool, toldLloydsList howitfoundthemajority ofsoftwareprogrammes fromthirdparties lackingthe sophisticationtodeliverthe bestresultsfromitsvessels.

Ithad found thatthe softwareprovidershad developedthe softwaretobe themost optimum anda pricethatwouldmake theirproductssaleable,whereasthe realsavingscomewith a muchmore refinedproduct.

Otherownersare beginningto lookmorefavourably at moredramaticfuelsavingtechnologies.The decisionearlier inthe year byDanishownerDannebrogto agreeto have anaircavity system installedon a newlydeliveredvesselin thesummer isaboostfor DKGroup.The Dutchcompanythat haspatenteda novel

system it says candeliveraffordableresults by reducingfrictionbetweenhulland water by delivering a streamof airbubblesunderthe vessel.

MANand WrtsiltoldLloydsListthatwhileoverallservicing activityremains flatas owners shunall butthemost necessarymaintenance, fuelmanagement isfast becomingone oftheissueson that list.n

www.lloydslist.com/specialreports

Owners that ignore theneed for more efficient

vessels risk being leftout of the hunt for cargo

CRAIG EASON

Meet LL Hypothetical: a bulker in need of optimisation

ATLLOYDS Listwe undertookadesktop exercise tosee whatwe coulddo toimprovetheoperationalperformance ofan averageship type.

Weoptedfor an eight-year-oldpanamaxgearlessdry bulkcarrier.These areamongst themost common

vesselsin the globalfleet, but their age,whileyoung suggests theyarenot asoptimisedaswellastheycould beastheywerebuiltwhenshipyardshad theupperhand in thenewbuild market.

Thecurrentmarket forsecondhandvesselsis verygood. A mid-size

panamaxof about 68,000dwt sells forabout $20m, according tosome brokerreports.

Aswe werelookingfor ourvessel,expertsofferedadvice aboutwhatwecoulddotoupgradeit.

Weweretoldthat thekey issueiswhenthe vesselwill benextdrydocked. Thiswilldeterminewhethera hullblastand re-coating isundertaken, andif anymorestructuralmodificationswill bemade.

A number ofvesselshaverecentlybeenscrapped after only15yearsof

service,and wehavetakenthe averagecharterand secondhandratesforsimilarsized vesselsoverthe lastthreemonths.

Theassumptionswe have made,andused whentalking tomanufacturers,consultants andsoftwareproviders areshownin thebox.

Theobjective ofupgradingLLHypothetical isto ensureitremainsacompetitiveassetfor theremainingeight to15 years ofits life. Larger,newerkamsarmax vesselsare morefuelefficientand likelyto getbettercontracts,leaving older slightlysmallerpanamaxvesselsto acceptlowerrates.Theless profit thevesselmakesas itages, thehigherthe chance ofit beingresoldor scrapped.

Weasked systemsmakers, technicalmanagersat someof Europesshipowners,and class societiesfor

theiradvice about whatwe should do,theexpected costs andwhetheritmakes economicsensegiventheexpectedreturn of investment.

Theanswers wegot fromtheindustrywereas varied asthe shiptypes afloat,but there aresomecommonthemes.

Before undergoing anyworkon avessel,and preferablybefore buyingit ,a thoroughunderstanding ofthe

vesselscurrent performanceshould becarriedout. If there areanyseriouscausesof concernit is worth lookingfor

anothervesselas anyvessel withlessthan 10yearslifeleftwillneedtobeableto demonstrate a reasonablereturn oninvestmentevenwith anycosts associated withan upgrade.

Nearlyall themajorclassificationsocietieshavea consultancyarm thesedays.This divisionis a separateentityfromthe mainclassificationrole oftheorganisationand chargefeesaccordingly.

Weaskedfor basicconsultancyfeesfromthreeof theclasssocieties,butonlyone,Det Norske Veritasprovided arough estimateforLLHypothetical.Theothers,despitegivingas muchdetailaspossible, declined.

Theownerswespoketo allsaidgettingthird partyadvice is crucialinestimating whatcan andshouldbedoneaheadof modifyingour vessel.

Onetechnicalexpertfor a bulkvesselowner and operatorsaid that

hewould takesucha vesselandprobablyhaveits hullfullyblasted andrecoated.

Hisexperiencehas shownthatoftensuch vesselsaresoldjustprior toaclassdockingandit isbesttouse thatdockingand planas manyfuelsavingimprovementsas possible.A ownerofdeepsearo-rotonnagesaidthereweremore operationalmeasuresthatcan bedone, cheaplyand withgood results,ifa docking isnotavailable. n


Size: circa76,000 dwtBuild: 2005 in China,oneof aseriesofa standarddesignExpectancy:15years (2027. Verylarge crudecarriershavebeenscrappedat15yearsandthemarketmaysee othervesseltypesheadingforscrap ata youngerage)Drydock: Class surveysdue,ensuringdr ydockingslikely withinfirstyearof purchaseDesign speed:14knotsFuelconsumption: 30-35tonnesperdayFuelprice: $700 pertonne. Thisisalreadytoo lowand many ownersareusing$1,000in theircalculations.Workprofile: Anoptimistic 280days a year.

Fuel billat given parameters:$21,000a day, $5.9m/year($47m forremaining life.This equates toa$47,000reductionin theoverallremaining eight yearlife timefuelcostper percentage point offuelsavingat $700 a tonne, and

$672,000 savingif fuelcostsare$1,000a tonne)

Secondhand values:n 1995-built, 69,058 dwtFairWindsoldfor $10.5min January;n 2005-built, 76,256 dwtMineralStarsoldfor $21min March;n 2010-built,81,297dwtVathysoldfor$32.5m in November.

Timecharterratesreportedthisyearn 1990s-built, 69,000dwt panamaxesaveraged$7,185 per day;n 2002-built, 74,000-76,000 dwtaveraged$10,587per day;n 2010-built, 80,000-89,000dwtaveraged $11,932 per dayScrapvalue:($460/ldt ) = $5.5m.

Sources forthis report:Wrtsil, MANDiesel,Kittiwake,NAPA, Eniram, InternationalPaint,Jotun, Becker Marine Systems,ShipPropulsion SolutionsDet NorskeVeritas,Lloyds Register,FathomPublishingsShip efficiency:T heGuideand anumber ofmajorshipowners whoofferedinsight intothesensitiveworld ofgettingthemost outoftheirassetsin adownturn.n

To investigate whatmeasures will work, now

and in the future,Lloyds List took anaverage-priced shipand revamped it

LL Hypothetical: key assumptions

70%bunkers approximate share of

ship operating costs

A steadyeyeon bunkers:ownershavestartedto lookmorefavourablyat fuel-savingtechnologiesas thecostof bunkerscontinues torise.

Learn allaboutLLHypotheticalonPages4-5

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Lloyds List Thursday March 22, 2012 Maximising Ship Efficiency


THE fuelbillfor an average panamaxdrybulk carrierfor thefiveyearsbetweentwo drydockingsis morethanthepricefor a secondhand vesselat themoment,plus itsscrap value.

Takingthe figureswe areusingforLLHypothetical, wehave anannualfuelbillof $5.9m priorto itsrevamp,andthis doesnot accountfor fuelpricerises. Charterrates,again assuming

they remainunchanged, suggestrevenuesof $14.7m. Thevesselcouldbesold offfor about $21m.

Thefuel billwillrise thelongerthevesselsails with a less-than-optimalhullcoating,unpolished propellerordamageto anyof theunderwatersurfacesuch asrudder orthrusters.

Thedebateon levelsofimprovementsfor shippingsCOemissionsis based on datafromtheInternationalMaritime Organizations2009greenhousegas survey, a surveythatsomealreadysayis conservative initsfindings.

Ina recentpapertotheIMOsMarine EnvironmentProtectionCommittee,the Clean ShippingCoalition,thesame groupofenvironmental lobbyorganisationsbehind thecall formandatoryspeedlimits,claimsthat thecondition ofaships hullhas a biggerinfluence onfuelconsumptionthan many believe.

Itis urgingtheIMOto back callsfora transparent method ofmonitoringhullperformance anddetermine the

increasein emissionsthroughoutthedrydockinginterval.

Itsclaims arebackedby Norwegiancoatings group Jotun,a companysoconfident aboutthe qualityof itsproductsthatis offeringa money-backguaranteeassuming pre- and post-fuelconsumptiondata is madeavailabletoMarintek,an independentconsultancy,bywayof gainingverification.

TheCleanShippingCoalitionclaimsthat fora typicalvesselintypicaltrade thedeterioration in hullandpropeller performance is moredramaticthan owners believe,butthere areno transparent tools totakeaccuratemeasurements.

Jotun alsosaysthereis a severelackoftransparencyamongcoatings

companiesovertheirexpected fuelsavings.Theseoftenlackany commonbenchmarkand often basebest-casescenarioswiththe worst tosuggesthigher fuelsavings,it claims.

A hullcoating maynot justreducefrictionbetweenhulland water,butwillalsoslow hullfouling, thusreducingthe rateof deteriorationof thehulls performance.

LloydsList asked three majorcoatingsmanufacturers, Jotun,InternationalPaint andHempelto givequotes forcoatingLLHypothetical,settingout quitespecificcriteria.

Westated thatthe vesselhas anunderwater areaof 11,000sq m-12,000sq m,has an industrystandardcoatingandwill have a fullhullblastingandre-coating withwhicheverproduct thecompaniesrecommend.

Wealsoassumethe vesselwill beonworldwidetrade,has a design speedof14knots anda dailyfuelconsumptionof30 tonnes.

Jotun quoted $810,000fora seven-daystayin drydock(plus offshire

costs),a full hullblastand coatingofthecompanysSeaquantum X200system.This compareswith $240,000forthe cheapestsolution,which wouldinvolve touchingup thehull withastandardmarketsolution anda five-dayoffhire period.

During thefiveyears afterthedocking,Jotunclaimsits solutionwouldseea $1.03mdropinperformance comparedwith the$4.4mlossin performancefromthe marketaverage. Thisis a savingof $3.37mcomparedwith theincreased$570,00maintenancecosts.

Jotun says assuminga netpresentvalueof the vesselof $1.8m,paybackwill beachievedin 10monthsand asavingof 2,817 tonnes fuelbasedon the

needfor theperformanceloss tobecompensatedfor byincreased enginepower being needed.

InternationalPaint recommendsLLHypothetical is coatedwith itsIntersleek 700foul releasesystemoveritsIntershield 300abrasion resistantaluminiumpure epoxyanticorrosive.

Thesystems costs about $250,000,thoughthis doesnot includedockingcosts orlost revenuefromthe docking.Thecompany says thefuelsavingsamount to7.2%assuming thenextdockingis in five years,and comparedtocoatingthat usesa controlleddepletionpolymer.Its product,it says,producesa savingof $413,000 forLLHypothetical,a return oninvestmentof66%,

Hempelofferedto helpin thisexercise, butfinallydeclinedtodiscloseany figuresayingits pricesarebased on individualcontractsandpotentialbusiness volumesand wouldnotbeabletoprovidea quoteforLLHypothetical.Fordetailsof savings pages4-5

Shipownersmustmeasureperformancebefore theyoptimise

CLASS societiesare increasinglyoffering consultancyservices,particularly inthe fieldof fuelmanagementand environmentalcompliance.

They, andthe companyssellingmeasurement tools,repeatedly telltheshipowners thatif youcannotmeasure howyour vessel isperforming, thenyou have noway ofknowingwhere youcan successfullycutthe fuelcosts.

Thedriveto measure hasseenasurgeinthenumberofmeasurement tools appear onthemarket, butalso thenumber ofperformance comparisonbusinesses thataim tohighlight

poorly performing vessels.From keyperformanceindicators

fromInterManager and theworkoftheCarbonWar Roomsshipefficiencytoolsto the Clean CargoWorkingGroupand the CleanShippingProject,thereare anincreasing array of tools thatchartererscan access toevaluate aship.Thereare noindication thatasyetthese tools areimpactingchartererschoice of vessels therate isstill king buttheyarestarting tohave influenceasmanufacturers feelpressured bysocial normsto beable tohighlightemissionsand sustainabilitythroughouttheirlogistics chain.

Class societieswillhelpshipownersdevelop metrics to

establishthe fuelefficiency oftheirvessels as willotherthird-party dataproviders.

Theproblemiswheretostartandwhichonestochoose andeven forawhole exerciseon improvingavesselsperformance,where tostart

ForLLHypothetical, whichwouldbe approaching itssecondclasssurvey,Lloyds Registersaystheimportantfirst stepit wouldrecommendwouldbe tolookattheeasyquickwins thatgivea shorterpaybacktime.

Thefirst step wouldbetoestablishan energy managementsystem,such asISO 50001.

Thiswill helpidentifywhatthequickwinsmightbe forthatparticularship.This alsodemonstrates tocharterersthat thecompanyis committedto improvingoperational efficiency andmay,indeed, need tobe carried outwithchartererssupport toestablishoperating parameters, Lloyds

Registeradds. This,it says,is a

holisticapproachwhichwill includeeverythingfromplanningandtraining ofstaff tosettinggoals,voyageplanning, operational speed,monitoringsystems andtheestablishmentof animplementationsystem.

DetNorskeVeritassuggestssomething similar.

OlavRognebakke, headof shiphydrodynamics andstability inDNVs consultancydivision, saysplanningis important,as isthe needto understandthe performance ofthe vessel priorto makinganychanges.

Bothclasssocietiesadvocateconsidering a fullhull blast andapplication ofa newcoatingfor thevesselsnext docking,sayingthe

costsmaybe high, butthe benefitsmakeit worthwhile. Theyalsopointtothe useofthe docking formakingotherchanges tothe hullconfigurationand recommendadvancedplanning forthis.

LR believeswasteheat recoverywould notprobably be suitableforthe projectin question, possiblyfora containershipbut notfor, evenverylarge,tankersand bulkcarriers,saying onesneedslargeenginestoachievesuitable payback.

Propellersshouldalsobeoptimised,especiallyif thedecisionhasbeenmade toderate theengine.

Mr Rognebakke recommendsplanningthe vesselsoptimalspeedfor itsexpectedtradingrouteaheadof thedockingto allow

thederating tobe carried outefficiently,DNVrecommends thatowners

adopta cautiousapproachtoperformance software,saying theimprovement claims madeby thesystemsmanufacturersneed tobeindividuallyverified

Bothclasssocietiesrecommendan in-housesystemto ensure thatanylessonslearntaboutthe vesselsperformance arepassedfrom crewmember tocrew member. Therearea lotofthings that anexperiencedcrew membercanlearnandit isimportantto have themanagementsystem in place to ensure thesetipsarepassedon.

Putthisinto amoreformalmanner andboth societiesadviseLLHypothetical togetthe basicsforitsshipenergyefficiency managementplan,whichbecomesmandatorynext year,andmakeita usefulcostsavingtool. n

www.lloydslist.com/shipops

Underwater appendagesare gaining popularityDESPITE the downturnhittingmaritimeservice providersasshipowners abstain from investment,there aresignsthat someretrofittingsolutionsare becomingpopular.

Oneimpactof risingfuelbillsis thatmanyowners areusingannualsurveys

tohavehull appendages installed.German rudderand engineering

specialist BeckerMarine Systemssaysithasmorethan200ofits MewisDuctsnowonorder,with60% ofthemforretrofitinstallations. Theordersare fora wholerangeof vesseltypes andsizes.

US-basedShip PropulsionSystemshasseen interestin itsarrayofsolutionsincrease. SPS president RobWalsh mirrors thewordsof BeckerMarine Systemsmanaging directorDirkLehmannsaying thatthe bestbenefitscomewhen thesolutions are

tailor madearounda vesselshullform.Historicallythere havebeen technicalissues raised asto theeffectivenessofthesetypeof energysavingdevices,

even as recently asJuly2011 byanOcimfreporton greenhouse gasemission-mitigatingmeasures for oiltankers, saysMr Walsh.

However,more recentreports fromMarinin theNetherlandsindicatethatwithproperdesignapproachescost-beneficial resultscan beobtainedwhenESDsare customengineered.

Thecostsof thedesignmay appearhighfor an individualvessel,but couldbespreadacrosssisterships ifthe samedevicewereto beinstalled.

MrLehmannwarnsthat should a

MewisDuctbe chosen,for example,itmaynot beas effective,or could leadtoa negative impact if other devicesareincorporated.This viewis echoedbyclass societies, which advisecarefulselectionof hulldevices lesttheybecounter-productive.

Wrtsilvice-president for marinelifecycle solutions VesaMarttinen saysthere aretwo distinctwaysto lookatfuelsavings,eitherthrough engineenhancementsor through hullimprovements. Forhull appendages,hepointsto a designknownas theducktail,a stern extension,oftenusedonpassengershipsthatin effectlengthensthe shipand adjustsitsdynamicsand theinteractionbetweenthepropulsion andthe hull.A200,000($264,500)investmentcangive a 3%reduction on thefuelbill.

Heacknowledges theimportanceofmaking surethatnone ofvessels hullopeningsare damaged.Mesh grillsover thrustertunnelscan createsignificant dragif broken,he says.

Poorlymaintainedhulls willseefuelconsumption increaserapidly, aswill

anydamaged propellers orrudders.Oneshipownerciteda casewheretherewasan increasein fuelconsumptionof1%on a panamax bulkvessel despiteallfactorsbeingaccountedfor.Thefaultwasfoundtobeanickinapropellerblade.

Thesameowner saidthe companyhasa policy ofpolishingits vesselspropellers everysix months,andputting thevessels hulls through acompleterecoating everyfive years.

Fora middlerangepanamax bulkvesselsuch asLLHypothetical,SPS

recommends a range ofhull deviceoptions,all ranging of$250,000to$275,000 fordesign,manufactureandinstallation.

Theoptionsare a simplifiedcompensationnozzlewith either apropellercapturbineor a costa

propulsionbulk,or forrudderthrustfinsmountedon therudderwithacosta propulsionbulb.Energysavingclaims are 4%-8%.

BeckerMarineSystemspricestheMewisDuctat 180,000 with120,000forthe design.Installationinvolvesafour-daydrydocking, costing about40,000. Youcould expectfuelsavingsof approximately5%.Wewould give youa fuelsaving guarantee nocure,no payterms for4.5%savings,withverificationin modeltests,saysMr Lehmann.n

A good paint jobis a good start

Paint manufacturersclaims for fuel savingsmay be true, but theyneed verification

Marine coatings

Hull appendages

Efficiency tools

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4 Maximising Ship Efficiency Thursday March 22, 2012 Lloyds List Lloyds List Thursday March 22, 2012 Maximising Ship Efficiency 5

FLETTNER ROTORSSPOILERS

BATTERY FUEL CELLS

AND SOLAR PANELS

KITES & SAILS

HULL BLASTING AND COATING

CONDITION MONITORING

SOFTWARE AND SERVICES

VOYAGE OPTIMISATION

AND WEATHER ROUTING

HULL APPENDAGESTRIM OPTIMISATION

IN SUMMARY...

TURBOCHARGER

THE ENGINE ROOM

Improvements, or in the speedy

containershipsthe abilitytoswitch them oatlow loads, is

vitalto improving fuelconsumption

ENGINE TUNING

A nelytunedengine isanyboyracersdream, justastheoptimallytuned engine for a shipsspeedis a dream for theaccountantwatching the fuelbill.

WASTE HEAT

RECOVERYHotexhaustgasis the same as

throwing moneyaway. Capturingthe heatin a separate system and

using itto generate extra power isa clear bonus.

LUBE OIL AN ALYSIS

AND DELIVERYPoor application maylead to poorengine performance, butapplying too

much can be justas costly.Automatedsystems are available to

ensure optimisedapplication.

The right angle for the right speed gives signicantimprovements. The cost of the soware is hardlyprohibitive.

CREW AWARENESSKnowledge, experience and awareness ensuremodern technical tonnage works like clockwork.

AIR LUBRICATIONPushing air under the hull is beginning to makesense as a way of reducing friction and making theship hit those speeds with l ess engine power.

It is as much the speed that the hull coating degrades as the applicationin the drydock. Hull coating selection and then maintenance are seen as

two of the most important ways of getting as much out of the ship aspossible. Rough bottoms means more power for the same speed.

Mewis duct

These are the visual darlings of theeco-crowd, but they do make a dierence.

The problem will be whether they are toocomplicated to use.

The ability to use alternative power to cover

excessive power demands will see engines able torun for longer at optimal loads. A good source of

cold ironing as well.

A proven technology that looks like a

1950s sci- dream come true. But the

magnus eect could make the d ierencein the future.

EMISSIONS MONITORINGMeasuring it is the rst step in curbing it. The green lobbygroups see this as a vital tool in cutting CO2. For shipowners itis also the rst step in keeping their operating costs down.

The ultimate bit of pimping f or your ship.These underwater devices are becoming

more popular as owners begin to hear ofthe results on competitors ships.

RUDDER AND AUTOPILOT

IMPROVEMENTSSteady handling makes for a better ship. Owners see thebenets of taking corners more gently.

With crews over worked, having remote services is proving acost eective way of watching over the shipowners asset.

Maybe covering the front of theaccommodation with a canvas tarpaulin is

not suitable today, but tests on stream

lining the superstructure are showingpromising results.

Planning the journey has never been easier with moderntechnology. Companies will now oer continual guidanceto make sure the best route from A to B is made.

MAXIMISING SHIP EFFICIENCYDubbed operation pimp my ship within the Lloyds List newsroom, the exercise below represents a snapshot of the measures that can be taken to improve theefficiency of a secondhand dry bulker. When planning improvements to our latest purchase, LL Hypothetical, we opted to install a broad spectrum of innovative

measures that we calculate could offer real improvements. The objective of upgrading was to ensure that our vessel remains a competitive asset for the remaining15 years of its life.

Through this exercise, and trying to take conservative figures and assump-tions that would sway against any savings, the advice we have been givensuggests theLL Hypothetical, operating with a fuel consumption of 30tonnes a day when bought, would save 12.6 tonnes a day, that is nearly$9,000 on a fuel price that is increasingly lower than reality. If the vessel isoperational for 200 to 280 days a year, this looks like a big saving. Fordifferent ship types and different ship sizes the savings would clearly bedifferent.Even if the owner of the vessel does not pay the fuel bill, there is thegrowing certainty that charterers will begin to look at this cost and thepublic opinion of its CO2 emissions in the near future, making our shiplook unattractive unless we either give it a revamp or accept lower rates.

L APPENDAGES

ewis ucc

ate it of pimping for your s ip.erwater evices are ecomingi

u ar as owners egin to ear ofr t ron competitors s ips.

DER AND AUTOPILOT

OVEMENTS ing ma es for a etter s ip. Owners see t ei

a ing corners more genty. c .


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Twentyoptions for

enhancingyour asset

LETSforgetaboutthe environmentandCO emissions fromshipping fora

second. Letsalsoputto oneside theshipenergyefficiency managementplan andthedebateoverusing theenergy efficiencydesignindexonexistingtonnage, andfocusonfinancialmatters.

Thefactthatfuelbillsarehigherthansome charter ratesand arecontinuing a steady climb isperhapsallthe encouragementthat someowners needto implementas manyfuelcuttingmeasures asthey can.

Theoperating costsof oneofthemostexpensiveassetsbuilt byman isdwarfingthe capitalcosts of buyingitinthefirstplace,eating into netincomesto suchan extent thatrevenuesdisappear anddebtsescalateas fuelbillsbecomeunmanageable.

Yetdespitethis,manyownersplacetoolittle emphasison thisnegative contributionto thebottomlineand takea short-termview tomaintenance,performance andotheroperating costs.

Thereare many differentwaystoimprovevesselperformance, butalltheexperts weapproached pointedtotheneedtobe ableto monitor andmeasureperformance soas tounderstandwhatimprovementscanandshouldbe made.

Therewere differingviewson whatmeasuresare mostcosteffective, butthey canbebrokendownintotwogeneral categories;those thataremoreoperationaland those thataremore technical.

The 20 suggestionsfor improving

LL Hypothetical

THEcosts andsavings areroughestimatesgivenby a rangeofcompaniesto helphighlighttheviabilityof installing solutionsandtheirpaybacktime.

1. Trimoptimisation

THEmanufacturersclaim thatthesesolutions give theoptimaltrim thatavesselshouldbe setatfor agiven loaddraughtand voyagespeed. Savingsareestimatesandhardto verifyasseaconditionsand stabilityfactors willhave tobe takenintoaccount.Cost: $30,000Savings:1%

2. Voyage optimisation/weatherrouting

MANYdifferent solutions exist andmany moreare being developed. Mainconcernswith suchsystems isthattheyare softwareprogramswithalgorithmswritten tobe asprofitableaspossiblefor themanufacturers.Oneshipowner hasdeveloped itsownsoftwareand claimsthat theoff-the-shelfsolutionsare notas optimalastheycan be.One manufactureradmittedthatyes,there hastobe alinedrawnbetweenmakingthe

solutionaffordableand givingtheownera valuablereturnofinvestment.Costs: $20,000plus annual feeSavings:Up to10%

3. Performancemonitoring

THESEhelp determinehullperformance andother operating

parameters. Oneof thedifficulties,aswithother softwareis verifyingmanufacturersclaims. Thereis alsotheissue of being ableto siftthroughthedata todeterminewhereinefficienciesare located.

Jotun, theNorwegian hullcoatingmaker,is supportinga lobby groupsinitiative tocreate a moretransparentmethod ofcalculatinghullperformance using openandtransparent programming.Somesupplierswill beagainstthis astheirsoftwareis copyrightprotected, andsuchtransparencycouldmean thembeing opento claimsof inaccuracyanda lackof verification.Cost:up to$15,000-$30,000.Savings:5%.

4. Slowsteaming/engine derating

THEfuel savingsfromslow steaminghave become theeasy lowhangingfruitthatmoreandmoreownersaregrabbingand thedarlingemissionreductionmethodfor environmentallobbyists. Butwill owners be temptedtoreturn tohigherspeeds once themarketsrecover? Somegroupswanttoset mandatoryspeed limits.There isalsothe keycommercialproblemofhowthe savingsare shared, thisis anissue withall themeasureslistedhere.The ownermaybe expectedtoinvest inthesolutions,butit isthecharter whoreapsthe benefit.

However, asone expert points out,charterersare aware ofthe financialbenefitsof hiring morefuel-efficienttonnageas it reducestheir own

logisticcostsand emissions.If thedecisionis madeto deratethe enginethenthechartererwillneedtobeonboard,saysone shipowner,otherwisethe changein power andattainable speeds could breach long-term agreements.Costs:verylowpervesselbutwillresultin cargo delays.Savings:20%

5. Crewawareness

NOMATTERwhowe spoketo,crewwere seen asa vitalfactor inrunningavessel asefficiently aspossible. Whiletrainingand course workis allgoodandwell, a moreproactiveandengagingapproach iscritical.Competitionsto comeup withnewideas, withor without prizes, arehelpful in getting thecrew tothink

about theirrolein keepinga vessel asefficiently as possible.Costs: unknown.Saving: upto 10%.

6. Condition monitoringsoftware and services

WRTSIL extendedits remoteconditionmonitoringservicefor theland-powerindustry to offshoreanddeepsea assets andhas seeninterestslowlyincrease.Costsare hardto pindown,althoughthe benefitsofoptimalperforming assets areclearlyunderstood.Costs: $30,000per yearplus extras.Savings: reduced maintenancecostsand possibly5% (veryroughestimate)fuel.

7. Emissions monitoring

ONEschoolof thoughtis that you canmeasureperformance by monitoringwhatgoesinto theengine(fuelvolume)and whatcomesout, eitherinterms ofpower oremissionsthrough thefunnel.Monitoring kitswillalsohelp vesselskeep otheremissionsat bay, butcan be a realtimeindicatorof performance. Systemsfromcompanyssuch a Kittiwake arelighterand takemoredirect exhaustreadingsthan earlier systems.Costs: Upto $30,000.Savings:unknownbut helps inassessingother options.

8.Hullblastingand coating

WITHhundredsof hullcoatingsavailable, prices rangefrom$250,000to$800,000for a completeoutercoating.Proving theefficiency gainsofthe paintmakersis almostimpossible. Howeverthere isno doubtthatthe smootherthe hull,the lowerthefriction andthebetterthe fuelperformance.Averagecost:$450,000 plusdrydock labourcosts.Savings:7%.

9.Lube oilanalysisanddelivery

TRIBOLOGY, thestudy ofmetalerosionand lubrication,showsthatpoorperformingengineswill depositmetalshavingsinto thelube oil.Poorperformance willimpactfuelconsumption,but critically in the

future, NOxemissions.Ownersarealso lookingat lubeoil

application.One ownertold LloydsList itmanagedtohalve itslube oilusageby optimisingdelivery.Costs: sought butnot supplied.Savings: $500,000annually.

10.Hull appendages

BECKER MarinesMewisDuct hasbecome themost talked aboutretrofitted hullappendage.Thesimple construction ismodel tested

priorto being welded inplace duringdrydocking.The applicationeffectivelyensuresthe waterflowingoverthe propellerisin thebestdirectionto create additional biteandtherefore efficiency.

Otherappendageson themarketwillincrease theefficiency of thewater flowingover thehull thepropeller, andalso therudder,an oftforgottenimprovementmeasure. Theinteractionbetween hull,shaftlinesandpropellercan beadjustedto makebetter efficiencies.However notallappendages willwork,and somemayimpact eachother negativelyif anumber ofsolutions areinstalled.Costs: $500,000-$1mdepending onappendage.Fuelsaving: 5%.

11. Spoilers

THISmay sound likethe ultimatego-faster toolfor boyracerswantingtopimp theircars,butthisisa seriousconsiderationfor vesselswith highaccommodationblocks or ofa verysquare design thatoffershigh windresistancewhenunder way. In theoilcrisis of the1980s,some tankerssported huge canvasfunnelsthatwere fittedin frontof theaccommodationblock andpushedairupandoverthe superstructurein abidto cutresistance. Theview fromthe captainsforward-facing cabinwindows wasspoiledthough.Cost: low.Savings: unknown.

12. Rudder

ASOTHER changesare made,anownermayhave todecide whethertheexistingruddershouldremainorbe replaced.Manyvesselsbuiltforspeedin thelate1990smayhave aschillingrudder,whichcan causeexcessive drag.Cost: unknown.Savings: unknown.

13.Turbocharger changes

MODERNdevelopments inturbochargerscomes from Hercules,the ongoingEuropean-Union fundedsetof emissionsreductionprojectsinvolvinga large number ofEUinstitutions andengineeringfirms.Whenslow steamingbecamepopularwithmedium-sizedboxshipstherewasconcernthat theseoverpoweredvesselswouldnot perform wellatreduced engine loads. Theabilitytoswitch offone or moreturbochargers,or toadjustthe workof a turbochargerhelpsmeetairloadwiththeenginedemand toensure fuelcombustionatlower loads isoptimised.Savings:3%-5%

14. Air lubrication

AIRlubricationwas verymuch a

solutionfor tomorrow, untilNYKlaunchedtwo testvessels, Stenabuiltitsown modelvesseland morerecentlyDK Group hasannounced ithassigneda deal with ashipowner toinstall a systemon a newbuilding.Thereare a number ofdifferentideasforair lubrication,but theessenceisthat afilmof aircoversthehullundersidereducingthe frictionbetweensteel andsea water.Cost:$1.4m.Savings:10%.

15. Waste heatrecovery

WITHso muchof theenergy producedthrough engine combustion it makessenseto tryandremove some ofthisenergy using a waste heatrecoverysystem.But thesesolutionsare costly.Someowners,suchas Maersk, areinstallingWHR systemsonnewbuildings,but installing themonexistingvesselscan be problematicandexpensive.As butas fuelpricesrise,the paybacktimemay makethisoption a viable solution.Another toolisthewet steamturbine, asystem thatisa loteasierandcheapertoinstall.Costs: $4m.Saving: 10%.

16.Kitesandsails

THEultimategreensolutionticksalltheobviousboxesfromtheenvironmentallobby. Despite thehighprofile andoften unfoundedclaimsofa greensolution,there aresomeowners whobelievethatwind power

willbeatooltoreducetheneedforhighengineloads.Expertsinvolvedinmarine engineering believewindpowercan beusedto createasupplementary propulsion todieselpower,but willnot replace it.SkySailshasbecamethe talismanof thisgroupof solutions, justas itsfinancialtroublesrepresentthe struggles facedby many engineering firmsas ownersshunall butthe mostpressingengineering work. However, therearedifferentkindsof sails beingdeveloped,and manythinkthese willhave a betterfutureon deepseatonnagethan a windkite.Costs:$1.5m,plus possibleannual royalty.Saving: 10%.

17. Flettner rotors

LIKEsailsand kites,flettner rotors usethewind toprovideadditional powertoa vesselbyusinga phenomenonknown asthe magnuseffect. Thiseffectcreateslift, andinthe case oftheverticalrotorscreatesa forwardmomentum.Flettnersare notnew,butthere areissueswith theireffectivenessand reliability.

UK-based charity group Greenwaveisdeveloping a solutionit hopeswillbe morereadily acceptedthan

ThursdayMarch 22, 2012 Lloyds List


The list of measures,systems andtechnologies that can beused to pimp a ship islonger than many think

1

2

Seehowthesesystemsareused

Pages 4-5

LLHypothetical

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Lloyds List Thursday March 22, 2012 Maximising Ship Efficiency


previousmodels,telling LloydsListreaders towatch thisspace.Rumoursabound thata bulkcarrierownerhasshown aninterestin theidea.Cost:$10m(no practicalexamples)Savings 10%(estimateonly).

18.Gaspower

THISis probablynot a solutionforretrofitting ontoanylargedeepseavessel operatingon the charter or spotmarkets,but proponentsof gas-poweredshippingsaythe useof

natural gaswill become moreattractive in thefuture whengasprices aresignificantly lower thanheavy fueloil. Retrofitting ispossiblebutcostsare prohibitive.Gas prices intheUSarecheaperthanEuropeandowners likeHarveyGulfMarine havetaken theplungewith newbuildingorders, andsome stateferry operatorsarelookingto fundsto converttheirvessels.Cost:$5m.Savings:varieddependingon fuelprice differences.

19.Batteries andfuelcells

THESEare becominga littlemorepopular thanks tothe DNVprojectinconjunctionwith EidesvikandWrtsil. Aftertriallingfuel cells, thethreepartnersplan toinstalla batterypackon a gas-poweredoffshorevesseltodevelopa truemarinehybridsystem. This would helpvesselswithvariablepower loads meetexcessivedemand without having torunengines inefficiently. A worthwhiledemonstrationof a newpower

solution,but unlikelyto catch on justyetCost:500,000for 500kWh batterypack(fuelcell prices unknown)Savings:possible20%

20.Solar panels

HAVINGthe abilityto power internallightingonlyis probablymoreof anenvironmentalgimmickthana realfueland cashsaving tool. Clearlyavessel suchas a carcarrier withlargeopen deckspacetospareanda trade

in equatorial waters could gainmorebenefit fromsolarpanelsthan atanker,bulkcarrier or passengershiprunning in Northern Europe/Atlantic.However, one environmentalexpertdoesbelievethat solar panelswill havea role toplayinthe futurewhenphotovoltaic cellscan produceheatas wellas electricity. Thehotwatercanbe fedintoa wasteheatrecover boiler togeneratepower.Cost: unknown.Savings 0.5%.n


5

8 10

THINK BIG!

ere may be harbours that are bigger than we are but not in our part of the world.Port of Gothenburg is the largest one in Sca ndinavia, where 175 ships call in each week.

anks to our e cient and sustainable tra nsport network, we reach 70% of the indus-trial production in the Scandinavian markets in six hours. With our 24 daily railwayconnections to important logistics centres in Sweden and Norway, we play a vital rolein the development of Swedens commerce and trade. With direct departures to North

America as well as the Far East, we oer optimal conditions for the countrys internationalcompetitiveness. We have big plans for the future you should think big too!

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Getting technical gives rewards

WHENLloyds Listspoketo theindustrystwo leadingenginemakerstheyofferedsimilaradviceaboutwhatownersshoulddoto make themostoutof theirvessels.

Inthecaseofthe LLHypothetical,ourimaginary bulkcarrier, bothWrtsiland MANDieselsaid therewereplentyof optimisationtoolsattheownersdisposal, andthe simplerule ofthumb isthemoreyoupay, thebetter thereturns.

Apart fromthe potentialofderatingthe engines formore regularandefficientslowsteaming, thereare

arangeoftoolsthat canbeinstalled.Afterreviewing thespecificationof

LLHypothetical, MANDieselmanagerChristianLudwig says thatassumingthevesselwas built around 2005withaMANengine,itislikelytobethe6S60MC6,with aninstalledpowerof10,600kWh based ona service speedof14.5 knots.

Hisfirst recommendationis toderatethe engine andretrofita newpropellertomakethemostoutof thenewenginespeed. A speedreductionof1 knot wouldgivea 5%fuelsaving,Mr Ludwigsays.This means thataninvestment of about 1m($1.3m)willberecouped ina littleovertwoyears.

Additionalmodifications could

addtothe pricetagbut MANDieselhasdeveloped a fundingmechanismtohelp owners payfor the retrofits,withrepaymentsdue throughout thepaybacktime.

Wrtsilvice-president lifecycleservicesVesaMarttinenalsopointstoderating,but highlights theneed tolookat thewhole operatingfutureoftheship whendeciding toinvestinfuel-savingmeasures.

Retrofittingwaste heat recovery,

forexample,is expensive, at about4m, butwill giveoneof thelargestfuelsavinggainsat morethan 10%.Installinga WHRsystemshouldbedonein conjunction witha completeassessment ofthe vesselsoperationallifespanand balancingthe vesselspower requirements,Mr Marttinensays.

WHRretrofittingalso demands alengthyoffhireperiod.In anage whenthebottomlinecanshift from blackto

redwith uncomfortableease in themarketsuch aswe havetoday then thelostrevenueof a lengtheneddrydockmaybe a criticalfactor.Yetagain,withheavyfueloillikelytohit$1,000atonne, WHRsystemsmay begin tolookattractivein thenear future,especially asthey become moreregularly usedon newbuildings.

BothWrtsil andMAN havemadesignificantdevelopmentsinturbochargertechnology inrecent

years. MANDieselsMr Ludwigpointstoa 3%fuel saving frommodificationstoa turbochargerrotor.

Bothcompaniesoffer a formofturbochargersuitedfor periods whena vessel operatesmore slowly, notably

forthe overpowered containershipsbuilt withthree turbochargers.

MANDieselhas seenan increasedemandinupgradesina newslidevalve arrangement inmanualenginestogive moreaccurate valve timingleadingto cleaner,more efficientfuelcombustion.Similarly upgradingmanual engines forauto tuning ispossible,againwith theaim ofkeepingfuel combustion asefficientas possible.

Mr Marttinenalso suggeststhatsomevessels, maybenotLLHypothetical,couldbebettersuitedforincreased automation andpowermanagement. Thereare significantgainsto bemadein ensuringthatthepower generatedonboard isaseffectiveas possible.This is

particularly trueof diesel-electricinstallations.

Integratingautomation, systemsmonitoring,performance andconditionawarenesscan leadtosignificantimprovements in overallcostsas wellas reduce fuelbills,saysMr Marttinen.

A disregardfor proper vesselmaintenance hasbecomean issueduring thedownturnas owners trytocutcosts.This hasresulted inincreasedsafetyfears,leadingtoclaims thatvesselsare onthe verge oflosing charters,especiallyin thetough vetting climate ofthe tankermarket.n


Tried and testedtechnologies canhold key to innovationWHILEthereare obviouswaysofreducingfuelcosts,there isa fieldofmaritime technologydevelopmentthatmay offerretrofittingandnewbuildingpotentialin thefuture.Fuel cells, batteries, airlubrication,flettner rotors andeven wave powergenerationare technologiesthat arebeing assessed,in somecaseswithpilotor early commercialuptake.Many oftheideasstemfrompredecessorsfrom yesteryear.

UK-basedGreenwavehas beenrefiningits ideafor a flettner rotor. Itadmits therewere someissueswithitsfirstdesign.Ithasgonebacktothedrawingboard,sayinga newdesignwhich could berevealedlaterthis yearmaybe suitablefor a mid-sizepanamaxbulk vessel.The ideaofusing themagnuseffect stemsfromtheGerman inventorAntonFlettnerintheearly 20thcenturyand a handfulofexperimentalships have beenbuilt.

SkySailshas developedits kitesystem,but saleshaveobviouslynotbeenhighenoughto preventthecompanyhavingcashflow problems.Thehistoryof vesselsusingthe windishardlyworth repeatinghere otherthanto saythere aresignificant

efficiencygainsand mostsolutionsunderdevelopmentare intendedtoprovide additional thrust fordiesel-poweredvessels,not actas a solesource ofpropulsion.

WhileSkySailsuses kites,othersystems,suchas theWalleniusWilhelmsenLines-supported Seagateusea collapsabledelta sailsystemnotunlike a large windsurfsail.

MeanwhileDK Group hassecureditsfirst commercial orderfor anunderwaterair lubricationsystem,which it says is affordable and

guaranteedto work. Havingclinchedthecontractfrom Danish ownerDannebrog, it says othershipownershaveexpressed interest, particularlyowners oflarge tankersthat couldbepotentialinvestorsin thecompanyandbuyersof theproduct.

Airlubricationand surfaceskimmingcraft have beenindevelopment forabout 50years.Hovercraft and wing-in-ground craftusea similarprincipleof reducedfriction betweenhull andwater.

DNVand Norwegian offshoreownerEidesvikrecentlylaunched thenextphaseof the Fellowshipproject.Initiallytestingthe configurationof afuelcell installedinto the electricalconfigurationof a diesel/gas-electricdrive system,the vessel willhavea500kWh battery packinstalledtobecome thefirst hybridpoweredvessel.If anyonehas driven a ToyotaPriustheywill knowaboutelectrichybriddrivesand howsilentthey are.

Thetrialswill demonstratetheviabilityof using batterieson shipstoensure engineswork at maximumloadswiththe batteriesbeingused toprovide additional power.DNV saysthatfuel savingscouldamountto

20%.Asfuel prices climbabove $1,000a

tonnetheseideas andotherswill lookincreasinglyattractive for shipownersasthe paybacktimesbecomeshorter.Otherexpensivetechnologiesthat areavailable nowand becomingpopularonnewbuildings,mayalso becomefeasibleas fuelpricesrocket.Wasteheatrecovery systems,costingupwardsof $4mwill lookattractiveforvesselsthat have a reasonably longservice lifeaheadof them.n

www.lloydslist.com/environment

Maximising Ship Efficiency Thursday March 22, 2012 Lloyds List

lloydslist.com bringing youmaritimenewsasithappens

Plenty of engineoptimisation tools are

available but the moreowners pay, the morethey are likely to benefit

Greek Tanker

Fleet ALloyds ListSpecialReportMarch29

NigelLowrylooks atwhatliesaheadforGreekowners

Powerhouse: whileengines canbe derated forefficient slowsteaming, therearea range ofothertools thatcanoptimisea vesselsperformance.

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