The year 2010 of the classification societies summarized by Günter Full (Part 1)
Global threats and disasters of biblical proportions have stricken the world since the last HANSA report about the status of[ds_preview] the members of the International Association of Classification Societies (IACS) twelve months ago. It ranged from the exorbitant oil pollution in the Mexican Gulf a year ago to another most tragic and horrifying recent accident on the Northern Japanese archipelago subsequent a record earthquake that was followed by a tsunami. According to the Japanese government this caused a nuclear catastrophe exceeding the scale of Chernobyl 25 years ago. The problem has not been solved to date. Although so far the shipping industry has not yet been vastly affected – apart from North East Asian environments – this, under certain circumstances uncontrollable technology, has now cast its shadows over Europe, where discussions started about the bail out from this kind of energy-technology as soon as possible.
Today the industry – and consequently also the classification societies – are facing growing challenges as vessels are getting ever larger while environmental requirements and regulations are getting steadily tighter. And the societies are responding accordingly. DNV e.g. introduced its »Quantum Project« indicating a possible direction of technical developments in the future. New regulations have been adopted by almost all societies covering the relatively young offshore industry.
The market is still expecting to receive a considerable number of all types of newbuildings during 2011 and 2012. This may absorb a part of the positive forecast if/when China resumes to its previous strong activities. And it could mean an even longer way of recovery for the shipowners. Some pundits are even warning about the possibility of a double-dip-recession. Anyway, oil prices seem to be climbing to the record marks of the pre-slump times in 2008.
Prepared for the challenges of the next decade
When looking at the class societies’ different scope of service activities from the shipowners’ point of view it plays an important role of how they are positioned and represented, or what their key aspects are. Whether they are commercially operated or working under the hood of a foundation their clients do anticipate the most effective attendance from keel laying until their tonnage is being scrapped. The class always rides on a knife’s edge while having to cope with prevailing regulations on one hand and on the other hand to serve the owners demands and the shipyards positions simultaneously. Apart from new environmental regulations forcing naval architects and motor engineers to always improve hull and machinery shape and performance new horizons must be envisaged and technical borders have to be crossed to its possible limits. The growing size of container ships meanwhile aiming the 18,000 TEU mark generation, deep water drilling projects in depth of over 3,000 m, and the rapid increase of installing offshore wind parks permanently require new ideas and technical solutions. The important role of the societies is to monitor this development in order to assist the industry to avoid danger to men, ships and its equipment as well as to the environment.
Nevertheless still a great number of conventional vessels are subject to the attendance of the classes. According to the IACS about 4,500 bulk carriers transport 30 % of the world ocean cargo. Operated under tough market conditions with high density cargoes like coal or mineral commodities ships are exposed to heavy physical structural stresses. Improper handling of a laden ship at sea, during loading and discharging operations or when ballasting between ports may result in accidents and must be reduced to a minimum.
The same applies to the tanker industry with its permanent threat of oil pollutions or other possible scenarios that may be caused by its product or gas tankers.
Recommendations regularly published by the IACS are closely coordinated with other maritime organizations like the International Maritime Organization (IMO), Intercargo, the International Chamber of Shipping (ICS), the Baltic and International Maritime Council (BIMCO) and the International Association of Ports and Harbors (IAPH).
American Bureau of Shipping (ABS)
Since its foundation in 1862, the core mission of ABS has been to promote safety. Originally established as »American Shipmasters’ Association« it has followed four principles:
• to promote the security of life and property on the seas;
• to provide shipowners, shipbuilders, underwriters and industry with an accurate classification and registry of merchant shipping;
• to disseminate information; and
• to establish qualifications for ships’ officers.
Although times (and also its name meantime) changed, the society’s responsibilities in modern shipping and offshore industries today remain unchanged. Current developments and inventions demanded to adjust rules and regulations. In 1890 e.g. »Rules for Steel Vessels and Electric Power« were adopted in order cover new methods and techniques of the industry. In 1898 the Association changed its name to American Bureau of Shipping after it had acquired the »American Lloyd’s Universal Register«, a listing of ships at the time in 1894. About 100 years later ABS inaugurated the TQM (Total Quality Management) process. A significant achievement for ABS was its certification to the ISO 9001 standard in 1994, being the first classification society and one of the first global organizations to do so.
The Association also played a leading role in the 1990s in an IACS investigation about older bulk carriers disappearing without trace. A program establishing enhanced survey requirements was introduced thereafter. From time to time the international maritime industry is being confronted with major safety issues that demands appropriate response from classification societies, legislators and owners’ associations. When in the 1970s several large tankers suffered horrifying blasts during gas freeing operations a wide ranged investigation led to the introduction of the inert gas system. In 1998 the Association set another mile stone when among the earliest organizations it developed a companion ISO 14000 environmental systems certification program for the marine industry.
In 1999, ABS relocated its corporate headquarters with all but two departments to Houston, Texas from its traditional home in downtown New York City where, for nearly 140 years, it had been a prominent member of the maritime community. In late 1991, the corporate office had moved to 106th floor, Tower II of New York City’s World Trade Center. By end of the last century ABS accounted for 16 % of the world fleet, comprising over 100 million gt of tonnage. With its market share of even 23 % in new vessels construction the Association held the leadership for all tonnage on order. Also in the segment of FPSOs and drillships, mobile offshore drilling units (MODUs), semisubmersibles and offshore support vessels ABS took over a leading role. The society also pioneered the classification of such developing production technologies as tension leg platforms and spars.
In his introduction of the 2010 Annual Report chairman, R. D. Sommerville pointed out, that despite a continued weakness of the global economy, ABS and its affiliates recorded operational and financial results that exceed expectations. Attractive shipyard pricing led to a surprisingly robust flow of new orders to ABS class during the first half of the year, particularly for bulk carriers. The new order trend weakened in the latter part of the year as market rates softened in the principal dry and wet trades. However, there was a resurgence of interest in tonnage by containership operators based on their projections of trade growth. This holds promise for the future, although there are many questions associated with these designs given the current slow-steaming practices and greater emphasis on environmental concerns, particularly emissions. As the class society for the largest containerships currently in service, the designs of which include many technical innovations, ABS seems to be well-positioned to participate in the orders for the new generation of 18,000–20,000 TEU containership vessels that are currently under discussion. The most significant development in the society’s organizational structure during the past year was the decision to establish a fourth geographical administrative and operational division, the Greater China Division. This new division will allow ABS to continue to improve its service delivery in the People’s Republic of China, the Hong Kong SAR and Taiwan. The decision preceded the statistical confirmation that China has become the largest shipbuilding nation in the world in tonnage terms, nudging South Korea from its long-held position of preeminence. The establishment of the new division was also in recognition of the greater role China has in the production of marine machinery, equipment and systems requiring certification, along with the fact that it has become one of the world’s major ship repair centers. From the new division headquarters in Shanghai the society administers more than 500 employees across the region and is able to respond more efficiently to the needs of its clients.
The offshore sector, a traditional area of strength for ABS, experienced some hesitation in the period after the Macondo Field incident as the US Government suspended deepwater exploration activities and reviewed overall safety policies. However, underlying fundamentals of the global energy demand quickly reasserted themselves and ABS had a strong finish with increased activity in Brazil a particular highlight. Contracts for 43 MODUs, including options, to ABS class were placed in the last few months of the year confirming the opportunities that this sector continues to offer.
The Macondo incident also provided an opportunity for ABS to provide technical support to the legislators and regulators in Washington, DC as they wrestled with the question of how best to improve existing safety standards for the offshore industry. As a result, ABS reviewed its own offshore Rule requirements to identify proactive measures that could be taken to strengthen the self-regulating safety mechanism that would support the overarching regulatory framework. Through its outreach efforts, it is believed that the increased understanding of the role of classification within Washington, DC will benefit industry. In addition, ABS established a proactive program to maintain and, where possible, expand the lines of communication that have been opened with government officials. The lessons learned are equally as applicable within other areas of the world where governments have an active role in marine and offshore safety standards. The degree of media coverage and legislative activity that follows every high profile pollution incident only serves to reemphasize the relationship that exists between all sectors of the marine industry, the government, the environment and society-at-large. While oil-in-the water has been the traditional source of activists’ interest, the question of marine industry-sourced emissions is rapidly gaining attention. ABS supports reasonable efforts to raise environmental awareness and reduce the industry’s air emissions. As with other regulatory initiatives, particularly at an inter-governmental level, ABS’ emphasis is on the development of practical approaches that are effective, enhance safety and minimize unnecessary burdens on those that will implement and enforce the standards.
Bureau Veritas Group (BV)
Founded in 1828, Bureau Veritas is an international group specialized in the inspection, analysis, audit, and certification of products, infrastructure (buildings, industrial sites, equipment, ships, etc.) and management systems (ISO standards etc.) in relation to regulatory or voluntary frameworks.
Bureau Veritas ranks as the world’s second largest group in conformity assessment and certification services in the fields of quality, health and safety, environment, and social responsibility (»QHSE«). It is recognized and accredited by major national and international organizations.
Group Key Figures
• 48,000 employees, 930 offices and 330 laboratories in 140 countries
• 400,000 clients
• 8 global businesses with leadership positions
• 2010 revenue: € 2.9 billion
• Bureau Veritas is a listed company on the Euronext Paris stock exchange.
In the past few years, Bureau Veritas has streamlined its organization to enable a better market focus and keep a strong growth momentum. The Group is now structured along 8 global businesses:
• marine
• industry
• inspection and In-Service Verification
• health, Safety and Environment (HSE)
• construction
• certification
• consumer product services
• government Services and International Trade
BV has achieved a strong competitive edge in its eight global businesses, with:
• all eight global businesses positioned on markets with high potential and significant growth
• worldwide leadership positions in each one of these businesses
• the ability to leverage an efficient and dense international network
• an in-depth technical expertise recognized by relevant authorities and accreditation bodies
• a solid track record of growth through acquisitions.
BV Fleet
At end of 2010, Bureau Veritas classed fleet reached 9.500 seagoing ships and offshore units totalling 76.5 million gross tonnes, and 1.830 inland navigation vessels totalling 1.4 million GT. Bureau Veritas also certifies approximately 4.300 ships for conformity with the ISM Code and 3.800 ships for conformity with the ISPS Code.
Within the framework of ISM Certification, Bureau Veritas also certifies more than 800 Ship Management Companies.
In the attempt to cope with future demands of the industry the society has issued guidelines for the Risk-Based Qualification of New Technology. Qualification is a process by which a new technology or an existing technology used in a new context is validated. The qualification process is intended to prove with an acceptable level of confidence and in a cost effective manner that a technology is fit for purpose, that it complies with the specifications that the designer developed and that it is sufficiently reliable and is safe for the people and the environment.
According to the Offshore Equipment and Safety Technical Manager of the Association, Jean-Claude Astrugue, the pace of change in offshore energy is now so fast that industry is pushed to use new technologies to cope with new challenges and we can no longer only extrapolate from experience to check that things are going to be safe and effective. A new methodology is required that can assess new technologies quickly and safely. And it is most important that everyone involved understands the strengths and limitations of the assessments is made, and how it is done. That is what these guidelines are about – how to make sure that new ideas are safe while getting new systems and projects into service quickly.
Natural gas for cruise industry
Two major industry events took place in March, 2011: The Cruise Shipping Conference in Miami and the Gastech Conference in Amsterdam. Both industries – Cruise Shipping and the development of Gas techniques – are being taken care by the society’s classification and QHSE services.
The maritime industry – and especially cruise shipping – is looking at new ways of reducing its environmental impact. Today, passenger ships are considered with no marine emissions and very low emissions in air. Water pollution is already quite under control however, air emissions are rather complex to handle although regulated quite clearly by the International Maritime Organisation (IMO) and the rules of Port State Control. The use of LNG is an efficient way to cut emissions. SOx and particulates are eliminiated while NOx and CO2 emissions are reduced by about 80 % and 20 % respectively. And LNG is not only an environmentally sound solution, but also an economic one. Passenger ship projects are now on designers’ desks with different approach: Ferries, operating in dedicated areas and frequently calling ports, could use almost exclusively LNG as fuel, possibly using simple solutions like LNG containers of trucks on board, while cruise vessels could use LNG fuel when cruising in emission control areas or when berthed. Technologies for design, installation and use of gas-fuelled engines on ship are proven. Engine manufacturers and shipyards have developed and validated
China Classification Society (CCS)
CCS is an internationalized technical body registered according to the revelant decrees of the government of the People‘s Republic of China to provide services for the public interest. CCS is one of full member of IACS from 1988. From 1994, CCS’s highest class notation has been included in the classification clause of ILU. The society is represented with offices worldwide. Apart from its Hong Kong dependence it operates branches in Osaka, Japan; Pusan, Korea; Singapore; Sydney, Australia, Port Said and Dubai. The CCS Europe Center is located in the Hamburg branch with two other offices in Germany: CCS is represented in Stuttgart and Düsseldorf. Further European offices are being run in London, Rotterdam, Milano, Espoo (Finland), Barcelona, Athens and Piraeus. In North America: New York, New Orleans, Los Angeles and Vancouver. In South America: Caracas (Venezuela), Sao Paulo (Brazil). The services offered by CCS comprise
• Ship Survey
• ISM Service
• Works and Products Approval
• Offshore Engineering Service
• ISPS Service
China Classification Society (CCS), founded in 1956, is the only specialized organization in China to provide classification services. CCS aims to provide services for the shipping, shipbuilding, offshore exploitation and related manufacturing industries and marine insurance by furnishing reasonable and reliable classification requirements and providing independent, impartial and integral classification and statutory services to ships and offshore installations, for the promotion and safeguarding of the safety of life and property at sea and for the prevention of pollution to the marine environment. CCS is one of the ten full members of the International Association of Classification Societies (IACS), and chaired IACS Council respectively in 1996–1997 and 2006–2007. Its highest class notation has been included in the Classification Clauses of the Institute of London Underwriters (ILU).
Up to the end of 2010, CCS had been authorized by governments of 28 countries or regions to perform statutory surveys for the ships flying their flags. CCS is also the associate members to the International Association of Dry Cargo Shipowners (Intercargo) and the International Association of Independent Tankers Owners (Intertanko). CCS has established 58 branches/offices both at home and abroad, forming a global service network. By the end of 2010,CCS classed fleet is 2485 ships totaling 42.72 million gross tonnage.
CCS defines its business nature as »Risk Management« and focuses on »four major business lines and two supporting systems«, featuring ship classification, domestic ship inspection, Offshore Engineering service and industrial services the four major business lines, and the rules & research and the information technology services, the two supporting systems. By sticking to the policy of building a first-rate international classification society with unique characteristics upon technology and trust, CCS is striving to forge a quality brand and has made remarkable achievements.
Det Norske Veritas (DNV)
The Norwegian society is an independent foundation with its history reaching back to 1864. It had been established to inspect and evaluate Norwegian merchant vessels from a technical point of view. One of its key points is to be a provider for managing risk. Over 9,000 employees with 300 offices worldwide in 100 different countries take care of the clients’ needs. Since beginning 2011 the Society has reorganized its key points from technical to geographical areas. While many of its services, such as management system certification and corporate responsibility, can be applied successfully in any industry, its main focus industries are:
• maritime
• oil, gas and energy
• food and beverage
• health care
The society considers one of its most important and competitive advantages are the investment in research and innovation in order to safeguard life, property and the environment.
Since 1954 DNV has had a dedicated research department that has enhanced and developed services, rules and industry standards in multiple fields. Many of the technology solutions developed by DNV have been so precise that they have helped define internationally recognized standards. At present, the most important research programs in DNV are:
• arctic
• biorisk management
• future energy solutions
• information processes and technology
• maritime transport
• multifunctional materials and surfaces
IT risk management and software products today are an integral of business. DNV offers not only methods for managing the risk of operating complex IT systems, but has also developed specialized software systems for design, strength assessment, risk analysis, asset life cycle management and knowledge based engineering.
Together with MAN DNV has developed the economical and environment friendly »Quantum 9000« project as an outlook for the containership of the future. The 9,000 TEU vessel has a design speed of 22 knots and is designed for the Asia / US East Coast trade after the Panama Canal expansion. The 40,590 kW (at 78 rpm) two-stroke LNG (MAN B&W 9S80ME-C9.2-GI) dual fuel engine will considerably reduce CO2, NOx and SOx emissions. Under best circumstances with ME-GI plus Exhaust Gas Recirculation emissions would come down by over 30 % for CO2 while NOx and SOx would be reduced by 80 resp. 95 %.
Construction of the vessel’s hull as twin island ship would increase the cargo capacity by 10–13 % due to a better space utilization. Also sufficient LNG capacity would be provided without any loss of cargo space. An improved cargo distribution would give a reduced the aft trim and bending moment. In addition the more aft positioned engine allows installing a shorter shaft. Last not least due to the more forward bridge a better sight reduces the risk of collisions.
The construction of a wider hull eliminates the need of ballast water and provides a shallower draft. Further features are a CFD optimized ship’s hull, reduced block coefficient and a four-blade propeller with an increased diameter.
The Quantum 9000 project brings gas-fuelled containerships closer to reality. With its optimized hull and arrangement it combines enhanced environmental performance and realistic and cost-efficient solutions.
Another project for the purpose of improving the construction of VLCC is DNV’s »Triality«. This is an innovative concept VLCC that fulfills three main goals:
1. It is environmentally superior to conventional VLCCs
2. It has technically feasible solutions
3. It is more economical than conventional VLCCs
The name Triality reflects these three main elements. Triality is defined as three united, »the state of being three«. Triality is a VLCC that has the same operational range and capacities as other VLCCs. Three most likely trading routes have been selected for the DNVs study, all starting in the Gulf. One is to the US, one is to Europe and one is to China. The Triality concept consists of different elements. Each has been compared environmentally and economically with a base case which represents a conventional VLCC. The first step was the introduction of LNG as fuel in a conventional VLCC. The main engine is a high pressure dual fuel (gas or oil fuel) two-stroke engine, while the generator engines are low pressure dual fuel engines and the boilers are also multi fuel versions. The next step was to introduce a ballast-free more V-shaped hull design in addition to the LNG propulsion. The limited draft leads to some changes to the machinery configuration, and a two-propeller arrangement has been chosen. Finally a VOC re-condensation system and the cooling of the main engine scavenging air were added. Each step makes the concept better from both an economic and environmental point of view.
Despite all efforts for greener and more environmental techniques Tor Egil Svensen, COO of DNV, Norway, in a recent interview expressed his concern about the time schedule of CO2 reduction for the maritime industry. He is of the opinion that a 20 % reduction since 2005 until 2010 is absolutely unrealistic when taking into account the growth of the worldwide merchant fleet. However he admits that on today’s possibilities a 15 % could be quite realistic with even 30 % feasible until the year 2030. Reduced steaming, the use of fuel cells and the development of LNG engines with sufficient available bunker stations worldwide will contribute to reach this aim.
To be continued
