MAXIMISING SHIP EFFICIENCY

A special report from Lloyds List | lloydslist.com | Thursday 22nd March, 2012

CONTENTS INCLUDE...

As fuel bills rise, so will interest in technology and software 2 Meet LL Hypothetical: a bulker in need of optimisation 2

A good paint job is a good start 3 A blueprint for ship optimisation 4-5

Twenty options for enhancing your asset 6-7 Getting technical gives rewards 8

lloydslist.com

bringing you maritime news as it happens

2 Maximising Ship Efficiency

Thursday March 22, 2012 Lloyds List

As fuel bills rise, so will interest in technology and software

Owners that ignore the need for more efficient vessels risk being left out of the hunt for cargo
While most owners that have to deal with huge fuel bills are hedging on the price, bunkers can still account for up to 70% of a fleets operating costs, a figure that is set to increase as costs rocket. For owners that expect charterers to pick up the fuel bill, the indications are they are also beginning to look hard at this rising cost. Step forward the technology companies and the consultants. Seeing a market before them they have rounded squarely on the shipping industry with new products and offerings. Some are too new, some are fresh looks at old ideas and others are simple processes that will give easy returns, the so called low hanging fruit. The introduction of the energy efficiency design index on newbuildings will eventually do much to drive fuel efficiency into tomorrows fleet. The problem is this will only have an effect as new vessels are delivered with an EEDI value that meets the specific benchmark limit for that year it is delivered. If fleet
A steady eye on bunkers: owners have started to look more favourably at fuel-saving technologies as the cost of bunkers continues to rise.

CRAIG EASON

THERE has been a lot written about what the shipowner should be doing with his prized assets. Slow steaming, trading its emissions, installing mandatory pieces of equipment to meet a raft of new rules, the list of demands is high. But there is no doubt that while many of the multitude of sometimes confusing and often well meaning rules and lobbyist proposals are persistent, they are beginning to pale under the bigger concern of rising fuel prices. Standard heavy fuel oil, of 380 centistoke is currently around $750 per tonne, though varying between major bunkering hubs. Economists in many shipping areas point to peak oil concerns and the eventual switch to distillate fuels for some vessels as additional drivers that will make owners look closely at how they manage their fleets.

70%

renewal is slow because there are very few deliveries, then EEDI could have a limited impact for a number of years. Some critics say it will not impact emissions from shipping until 2035. There are moves to try and get the EEDI applied to existing ships. This is going to be difficult and according to some irrelevant, although guidelines written by the International Maritime Organization have given owners the possibility of getting a voluntary EEDI value if they desire. Nonetheless, the IMO has at least two proposals for potential market based measures that will use the EEDI formula to help determine a fiscal penalty for poor performing ships . The proposals are up against those for emissions trading schemes and a fuel levy. Technical departments in shipowning companies are taking fuel management seriously. Many report that they have been looking at bunkers approximate share of various tools and measures, some of ship operating costs which like the flettner rotor and the

air lubrication system fall into the wait and see category, others such as trim optimisation, engine derating and the oft underestimated role of crew awareness are easy and affordable gains. The demands to dampen the impact of rising fuel prices with operational and technological measures has increased, but there remains a lot of uncertainty over the claims made by manufacturers and consultants who have seen a growing captive market emerge before them. A number of shipowners with their own technical departments have invested a lot of money and time in researching their in house solutions for fuel management. One company that has developed an in-house trim optimisation and voyage performance tool, told Lloyds List how it found the majority of software programmes from third parties lacking the sophistication to deliver the best results from its vessels.

It had found that the software providers had developed the software to be the most optimum and a price that would make their products saleable, whereas the real savings come with a much more refined product. Other owners are beginning to look more favourably at more dramatic fuel saving technologies. The decision earlier in the year by Danish owner Dannebrog to agree to have an air cavity system installed on a newly delivered vessel in the summer is a boost for DK Group. The Dutch company that has patented a novel system it says can deliver affordable results by reducing friction between hull and water by delivering a stream of air bubbles under the vessel. MAN and Wrtsil told Lloyds List that while overall servicing activity remains flat as owners shun all but the most necessary maintenance, fuel management is fast becoming one of the issues on that list. n
www.lloydslist.com/specialreports

Meet LL Hypothetical: a bulker in need of optimisation

To investigate what measures will work, now and in the future, Lloyds List took an average-priced ship and revamped it
AT LLOYDS List we undertook a desktop exercise to see what we could do to improve the operational performance of an average ship type. We opted for an eight-year-old panamax gearless dry bulk carrier. These are amongst the most common vessels in the global fleet, but their age, while young suggests they are not as optimised as well as they could be as they were built when shipyards had the upper hand in the newbuild market. The current market for secondhand vessels is very good. A mid-size panamax of about 68,000 dwt sells for about $20m, according to some broker reports. As we were looking for our vessel, experts offered advice about what we could do to upgrade it. We were told that the key issue is when the vessel will be next drydocked. This will determine whether a hull blast and re-coating is undertaken, and if any more structural modifications will be made. A number of vessels have recently been scrapped after only 15 years of service, and we have taken the average charter and secondhand rates for similar sized vessels over the last three months. The assumptions we have made, and used when talking to manufacturers, consultants and software providers are shown in the box. The objective of upgrading LL Hypothetical is to ensure it remains a competitive asset for the remaining eight to 15 years of its life. Larger, newer kamsarmax vessels are more fuel efficient and likely to get better contracts, leaving older slightly smaller panamax vessels to accept lower rates. The less profit the vessel makes as it ages, the higher the chance of it being resold or scrapped. We asked systems makers, technical managers at some of Europes shipowners, and class societies for their advice about what we should do, the expected costs and whether it makes economic sense given the expected return of investment. The answers we got from the industry were as varied as the ship types afloat, but there are some common themes. Before undergoing any work on a vessel, and preferably before buying it, a thorough understanding of the vessels current performance should be carried out. If there are any serious causes of concern it is worth looking for

LL Hypothetical: key assumptions

Size: circa 76,000 dwt Build: 2005 in China, one of a series of a standard design Expectancy: 15 years (2027. Very large crude carriers have been scrapped at 15 years and the market may see other vessel types heading for scrap at a younger age) Drydock: Class surveys due, ensuring drydockings likely within first year of purchase Design speed: 14 knots Fuel consumption: 30-35 tonnes per day Fuel price: $700 per tonne. This is already too low and many owners are using $1,000 in their calculations. Work profile: An optimistic 280 days a year. Fuel bill at given parameters: $21,000 a day, $5.9m/year ($47m for remaining life. This equates to a $47,000 reduction in the overall remaining eight year life time fuel cost per percentage point of fuel saving at $700 a tonne, and $672,000 saving if fuel costs are $1,000 a tonne) Secondhand values: n 1995-built, 69,058 dwt Fair Wind sold for $10.5m in January; n 2005-built, 76,256 dwt Mineral Star sold for $21m in March; n 2010-built, 81,297 dwt Vathy sold for $32.5m in November. Time charter rates reported this year n 1990s-built, 69,000 dwt panamaxes averaged $7,185 per day; n 2002-built, 74,000-76,000 dwt averaged $10,587 per day; n 2010-built, 80,000-89,000 dwt averaged $11,932 per day Scrap value: ($460/ldt ) = $5.5m. Sources for this report: Wrtsil, MAN Diesel, Kittiwake, NAPA, Eniram, International Paint, Jotun, Becker Marine Systems, Ship Propulsion Solutions Det Norske Veritas, Lloyds Register, Fathom Publishings Ship efficiency: The Guide and a number of major shipowners who offered insight into the sensitive world of getting the most out of their assets in a downturn. n

Learn all about LL Hypothetical on Pages 4-5

another vessel as any vessel with less than 10 years life left will need to be able to demonstrate a reasonable return on investment even with any costs associated with an upgrade. Nearly all the major classification societies have a consultancy arm these days. This division is a separate entity from the main classification role of the organisation and charge fees accordingly. We asked for basic consultancy fees from three of the class societies, but only one, Det Norske Veritas provided a rough estimate for LL Hypothetical. The others, despite giving as much detail as possible, declined. The owners we spoke to all said getting third party advice is crucial in estimating what can and should be done ahead of modifying our vessel. One technical expert for a bulk vessel owner and operator said that he would take such a vessel and probably have its hull fully blasted and recoated. His experience has shown that often such vessels are sold just prior to a class docking and it is best to use that docking and plan as many fuel saving improvements as possible. A owner of deepsea ro-ro tonnage said there were more operational measures that can be done, cheaply and with good results, if a docking is not available. n
www.lloydslist.com/specialreports

lloydslist.com

bringing you maritime news as it happens

Lloyd s List Thursday March 22, 2012

Maximising Ship Efficiency

Shipowners must measure performance before they optimise

Efficiency tools
CLASS societies are increasingly offering consultancy services, particularly in the field of fuel management and environmental compliance. They, and the companys selling measurement tools, repeatedly tell the shipowners that if you cannot measure how your vessel is performing, then you have no way of knowing where you can successfully cut the fuel costs. The drive to measure has seen a surge in the number of measurement tools appear on the market, but also the number of performance comparison businesses that aim to highlight poorly performing vessels. From key performance indicators from InterManager and the work of the Carbon War Rooms ship efficiency tools to the Clean Cargo Working Group and the Clean Shipping Project, there are an increasing array of tools that charterers can access to evaluate a ship. There are no indication that as yet these tools are impacting charterers choice of vessels the rate is still king but they are starting to have influence as manufacturers feel pressured by social norms to be able to highlight emissions and sustainability throughout their logistics chain. Class societies will help shipowners develop metrics to establish the fuel efficiency of their vessels as will other third-party data providers. The problem is where to start and which ones to choose and even for a whole exercise on improving a vessels performance, where to start For LL Hypothetical, which would be approaching its second class survey, Lloyds Register says the important first step it would recommend would be to look at the easy quick wins that give a shorter pay back time. The first step would be to establish an energy management system, such as ISO 50001. This will help identify what the quick wins might be for that particular ship. This also demonstrates to charterers that the company is committed to improving operational efficiency and may, indeed, need to be carried out with charterers support to establish operating parameters, Lloyds Register adds. This, it says, is a holistic approach which will include everything from planning and training of staff to setting goals, voyage planning, operational speed, monitoring systems and the establishment of an implementation system. Det Norske Veritas suggests something similar. Olav Rognebakke, head of ship hydrodynamics and stability in DNVs consultancy division, says planning is important, as is the need to understand the performance of the vessel prior to making any changes. Both class societies advocate considering a full hull blast and application of a new coating for the vessels next docking, saying the costs may be high, but the benefits make it worthwhile. They also point to the use of the docking for making other changes to the hull configuration and recommend advanced planning for this. LR believes waste heat recovery would not probably be suitable for the project in question, possibly for a containership but not for, even very large, tankers and bulk carriers, saying ones needs large engines to achieve suitable payback. Propellers should also be optimised, especially if the decision has been made to derate the engine. Mr Rognebakke recommends planning the vessels optimal speed for its expected trading route ahead of the docking to allow the derating to be carried out efficiently, DNV recommends that owners adopt a cautious approach to performance software, saying the improvement claims made by the systems manufacturers need to be individually verified Both class societies recommend an in-house system to ensure that any lessons learnt about the vessels performance are passed from crew member to crew member. There are a lot of things that an experienced crew member can learn and it is important to have the management system in place to ensure these tips are passed on. Put this into a more formal manner and both societies advise LL Hypothetical to get the basics for its ship energy efficiency management plan, which becomes mandatory next year, and make it a useful cost saving tool. n
www.lloydslist.com/shipops

A good paint job is a good start

Marine coatings

Paint manufacturers claims for fuel savings may be true, but they need verification
THE fuel bill for an average panamax dry bulk carrier for the five years between two drydockings is more than the price for a secondhand vessel at the moment, plus its scrap value. Taking the figures we are using for LL Hypothetical, we have an annual fuel bill of $5.9m prior to its revamp, and this does not account for fuel price rises. Charter rates, again assuming they remain unchanged, suggest revenues of $14.7m. The vessel could be sold off for about $21m. The fuel bill will rise the longer the vessel sails with a less-than-optimal hull coating, unpolished propeller or damage to any of the underwater surface such as rudder or thrusters. The debate on levels of improvements for shippings CO emissions is based on data from the International Maritime Organizations 2009 greenhouse gas survey, a survey that some already say is conservative in its findings. In a recent paper to the IMOs Marine Environment Protection Committee, the Clean Shipping Coalition, the same group of environmental lobby organisations behind the call for mandatory speed limits, claims that the condition of a ships hull has a bigger influence on fuel consumption than many believe. It is urging the IMO to back calls for a transparent method of monitoring hull performance and determine the

increase in emissions throughout the drydocking interval. Its claims are backed by Norwegian coatings group Jotun, a company so confident about the quality of its products that is offering a money-back guarantee assuming pre- and post-fuel consumption data is made available to Marintek, an independent consultancy, by way of gaining verification. The Clean Shipping Coalition claims that for a typical vessel in typical trade the deterioration in hull and propeller performance is more dramatic than owners believe, but there are no transparent tools to take accurate measurements. Jotun also says there is a severe lack of transparency among coatings companies over their expected fuel savings. These often lack any common benchmark and often base best-case scenarios with the worst to suggest higher fuel savings, it claims. A hull coating may not just reduce friction between hull and water, but will also slow hull fouling, thus reducing the rate of deterioration of the hulls performance. Lloyds List asked three major coatings manufacturers, Jotun, International Paint and Hempel to give quotes for coating LL Hypothetical, setting out quite specific criteria. We stated that the vessel has an underwater area of 11,000 sq m- 12,000 sq m, has an industry standard coating and will have a full hull blasting and re-coating with whichever product the companies recommend. We also assume the vessel will be on worldwide trade, has a design speed of 14 knots and a daily fuel consumption of 30 tonnes. Jotun quoted $810,000 for a sevenday stay in drydock (plus offshire

costs), a full hull blast and coating of the companys Seaquantum X200 system. This compares with $240,000 for the cheapest solution, which would involve touching up the hull with a standard market solution and a fiveday offhire period. During the five years after the docking, Jotun claims its solution would see a $1.03m drop in performance compared with the $4.4m loss in performance from the market average. This is a saving of $3.37m compared with the increased $570,00 maintenance costs. Jotun says assuming a net present value of the vessel of $1.8m, payback will be achieved in 10 months and a saving of 2,817 tonnes fuel based on the need for the performance loss to be compensated for by increased engine power being needed. International Paint recommends LL Hypothetical is coated with its Intersleek 700 foul release system over its Intershield 300 abrasion resistant aluminium pure epoxy anticorrosive. The systems costs about $250,000, though this does not include docking costs or lost revenue from the docking. The company says the fuel savings amount to 7.2% assuming the next docking is in five years, and compared to coating that uses a controlled depletion polymer. Its product, it says, produces a saving of $413,000 for LL Hypothetical, a return on investment of 66%, Hempel offered to help in this exercise, but finally declined to disclose any figure saying its prices are based on individual contracts and potential business volumes and would not be able to provide a quote for LL Hypothetical. For details of savings pages 4-5

Underwater appendages are gaining popularity

DESPITE the downturn hitting maritime service providers as shipowners abstain from investment, there are signs that some retrofitting solutions are becoming popular. One impact of rising fuel bills is that many owners are using annual surveys to have hull appendages installed. German rudder and engineering specialist Becker Marine Systems says it has more than 200 of its Mewis Ducts now on order, with 60% of them for retrofit installations. The orders are for a whole range of vessel types and sizes. US-based Ship Propulsion Systems has seen interest in its array of solutions increase. SPS president Rob Walsh mirrors the words of Becker Marine Systems managing director Dirk Lehmann saying that the best benefits come when the solutions are

Hull appendages
tailor made around a vessels hull form. Historically there have been technical issues raised as to the effectiveness of these type of energy saving devices, even as recently as July 2011 by an Ocimf report on greenhouse gas emission-mitigating measures for oil tankers, says Mr Walsh. However, more recent reports from Marin in the Netherlands indicate that with proper design approaches costbeneficial results can be obtained when ESDs are custom engineered. The costs of the design may appear high for an individual vessel, but could be spread across sisterships if the same device were to be installed. Mr Lehmann warns that should a

Mewis Duct be chosen, for example, it may not be as effective, or could lead to a negative impact if other devices are incorporated. This view is echoed by class societies, which advise careful selection of hull devices lest they be counter-productive. Wrtsil vice-president for marine lifecycle solutions Vesa Marttinen says there are two distinct ways to look at fuel savings, either through engine enhancements or through hull improvements. For hull appendages, he points to a design known as the duck tail, a stern extension, often used on passengerships that in effect lengthens the ship and adjusts its dynamics and the interaction between the propulsion and the hull. A 200,000 ($264,500) investment can give a 3% reduction on the fuel bill.

He acknowledges the importance of making sure that none of vessels hull openings are damaged. Mesh grills over thruster tunnels can create significant drag if broken, he says. Poorly maintained hulls will see fuel consumption increase rapidly, as will any damaged propellers or rudders. One shipowner cited a case where there was an increase in fuel consumption of 1% on a panamax bulk vessel despite all factors being accounted for. The fault was found to be a nick in a propeller blade. The same owner said the company has a policy of polishing its vessels propellers every six months, and putting the vessels hulls through a complete recoating every five years. For a middle range panamax bulk vessel such as LL Hypothetical, SPS

recommends a range of hull device options, all ranging of $250,000 to $275,000 for design, manufacture and installation. The options are a simplified compensation nozzle with either a propeller cap turbine or a costa propulsion bulk, or for rudder thrust fins mounted on the rudder with a costa propulsion bulb. Energy saving claims are 4%-8%. Becker Marine Systems prices the Mewis Duct at 180,000 with 120,000 for the design. Installation involves a four-day drydocking, costing about 40,000. You could expect fuel savings of approximately 5%. We would give you a fuel saving guarantee no cure, no pay terms for 4.5% savings, with verification in model tests, says Mr Lehmann. n

lloydslist.com

bringing you maritime news as it happens

4 Maximising Ship Efficiency

Thursday March 22, 2012 Lloyds List

Lloyds List Thursday March 22, 2012

Maximising Ship Efficiency 5

With crews over worked, having remote services is proving a cost e ective way of watching over the shipowners asset.

CONDITION MONITORING SOFTWARE AND SERVICES EMISSIONS MONITORING

Measuring it is the rst step in curbing it. The green lobby groups see this as a vital tool in cutting CO2. For shipowners it is also the rst step in keeping their operating costs down.

MAXIMISING SHIP EFFICIENCY

Dubbed operation pimp my ship within the Lloyds List newsroom, the exercise below represents a snapshot of the measures that can be taken to improve the eciency 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 oer real improvements. The objective of upgrading was to ensure that our vessel remains a competitive asset for the remaining 15 years of its life.

KITES & SAILS These are the visual darlings of the

eco-crowd, but they do make a di erence. The problem will be whether they are too complicated to use.

VOYAGE OPTIMISATION AND WEATHER ROUTING BATTERY FUEL CELLS AND SOLAR PANELS
Planning the journey has never been easier with modern technology. Companies will now o er continual guidance to make sure the best route from A to B is made.

Maybe covering the front of the accommodation with a canvas tarpaulin is not suitable today, but tests on stream lining the superstructure are showing promising results.

SPOILERS

FLETTNER ROTORS
A proven technology that looks like a 1950s sci- dream come true. But the magnus e ect could make the di erence in the future.

The ability to use alternative power to cover excessive power demands will see engines able to run for longer at optimal loads. A good source of cold ironing as well.

IN SUMMARY...

Through this exercise, and trying to take conservative gures and assumptions that would sway against any savings, the advice we have been given suggests the LL Hypothetical, operating with a fuel consumption of 30 tonnes 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 is operational for 200 to 280 days a year, this looks like a big saving. For dierent ship types and dierent ship sizes the savings would clearly be dierent. Even if the owner of the vessel does not pay the fuel bill, there is the growing certainty that charterers will begin to look at this cost and the public opinion of its CO2 emissions in the near future, making our ship look unattractive unless we either give it a revamp or accept lower rates.

HULL APPENDAGES
The ultimate bit of pimping for your ship. These underwater devices are becoming more popular as owners begin to hear of the results on competitors ships.

It is as much the speed that the hull coating degrades as the application in 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 as possible. Rough bottoms means more power for the same speed.

HULL BLASTING AND COATING

TRIM OPTIMISATION

The right angle for the right speed gives signi cant improvements. The cost of the so ware is hardly prohibitive.

RUDDER AND AUTOPILOT IMPROVEMENTS

Steady handling makes for a better ship. Owners see the bene ts of taking corners more gently. Mewis duct

CREW AWARENESS
WASTE HEAT RECOVERY
Hot exhaust gas is the same as throwing money away. Capturing the heat in a separate system and using it to generate extra power is a clear bonus.

THE ENGINE ROOM

Knowledge, experience and awareness ensure modern technical tonnage works like clockwork.

Improvements, or in the speedy containerships the ability to switch them o at low loads, is vital to improving fuel consumption

TURBOCHARGER

ENGINE TUNING
A nely tuned engine is any boy racers dream, just as the optimally tuned engine for a ships speed is a dream for the accountant watching the fuel bill.

Poor application may lead to poor engine performance, but applying too much can be just as costly. Automated systems are available to ensure optimised application.

LUBE OIL ANALYSIS AND DELIVERY

Pushing air under the hull is beginning to make sense as a way of reducing friction and making the ship hit those speeds with less engine power.

AIR LUBRICATION

6 Maximising Ship Efficiency

Thursday March 22, 2012 Lloyds List

Twenty options for enhancing your asset

The list of measures, systems and technologies that can be used to pimp a ship is longer than many think
LETS forget about the environment and CO emissions from shipping for a second. Lets also put to one side the ship energy efficiency management plan and the debate over using the energy efficiency design index on existing tonnage, and focus on financial matters. The fact that fuel bills are higher than some charter rates and are continuing a steady climb is perhaps all the encouragement that some owners need to implement as many fuel cutting measures as they can. The operating costs of one of the most expensive assets built by man is dwarfing the capital costs of buying it in the first place, eating into net incomes to such an extent that revenues disappear and debts escalate as fuel bills become unmanageable. Yet despite this, many owners place too little emphasis on this negative contribution to the bottom line and take a short-term view to maintenance, performance and other operating costs. There are many different ways to improve vessel performance, but all the experts we approached pointed to the need to be able to monitor and measure performance so as to understand what improvements can and should be made. There were differing views on what measures are most cost effective, but they can be broken down into two general categories; those that are more operational and those that are more technical. solution affordable and giving the owner a valuable return of investment. Costs: $20,000 plus annual fee Savings: Up to 10%

3. Performance monitoring
THESE help determine hull performance and other operating parameters. One of the difficulties, as with other software is verifying manufacturers claims. There is also the issue of being able to sift through the data to determine where inefficiencies are located. Jotun, the Norwegian hull coating maker, is supporting a lobby groups initiative to create a more transparent method of calculating hull performance using open and transparent programming. Some suppliers will be against this as their software is copyright protected, and such transparency could mean them being open to claims of inaccuracy and a lack of verification. Cost: up to $15,000-$30,000. Savings: 5%.

1
about their role in keeping a vessel as efficiently as possible. Costs: unknown. Saving: up to 10%. prior to being welded in place during drydocking. The application effectively ensures the water flowing over the propeller is in the best direction to create additional bite and therefore efficiency. Other appendages on the market will increase the efficiency of the water flowing over the hull the propeller, and also the rudder, an oft forgotten improvement measure. The interaction between hull, shaftlines and propeller can be adjusted to make better efficiencies. However not all appendages will work, and some may impact each other negatively if a number of solutions are installed. Costs: $500,000-$1m depending on appendage. Fuel saving: 5%. solution for tomorrow, until NYK launched two test vessels, Stena built its own model vessel and more recently DK Group has announced it has signed a deal with a shipowner to install a system on a newbuilding. There are a number of different ideas for air lubrication, but the essence is that a film of air covers the hull underside reducing the friction between steel and sea water. Cost: $1.4m. Savings: 10%.

6. Condition monitoring software and services

WRTSIL extended its remote condition monitoring service for the land-power industry to offshore and deepsea assets and has seen interest slowly increase. Costs are hard to pin down, although the benefits of optimal performing assets are clearly understood. Costs: $30,000 per year plus extras. Savings: reduced maintenance costs and possibly 5% (very rough estimate) fuel.

15. Waste heat recovery

WITH so much of the energy produced through engine combustion it makes sense to try and remove some of this energy using a waste heat recovery system. But these solutions are costly. Some owners, such as Maersk, are installing WHR systems on newbuildings, but installing them on existing vessels can be problematic and expensive. As but as fuel prices rise, the payback time may make this option a viable solution. Another tool is the wet steam turbine, a system that is a lot easier and cheaper to install. Costs: $4m. Saving: 10%.

4. Slow steaming/engine derating 7. Emissions monitoring

THE fuel savings from slow steaming have become the easy low hanging fruit that more and more owners are grabbing and the darling emission reduction method for environmental lobbyists. But will owners be tempted to return to higher speeds once the markets recover? Some groups want to set mandatory speed limits. There is also the key commercial problem of how the savings are shared, this is an issue with all the measures listed here. The owner may be expected to invest in the solutions, but it is the charter who reaps the benefit. However, as one expert points out, charterers are aware of the financial benefits of hiring more fuel-efficient tonnage as it reduces their own logistic costs and emissions. If the decision is made to derate the engine then the charterer will need to be onboard, says one shipowner, otherwise the change in power and attainable speeds could breach longterm agreements. Costs: very low per vessel but will result in cargo delays. Savings: 20% ONE school of thought is that you can measure performance by monitoring what goes into the engine (fuel volume) and what comes out, either in terms of power or emissions through the funnel. Monitoring kits will also help vessels keep other emissions at bay, but can be a realtime indicator of performance. Systems from companys such a Kittiwake are lighter and take more direct exhaust readings than earlier systems. Costs: Up to $30,000. Savings: unknown but helps in assessing other options.

11. Spoilers
THIS may sound like the ultimate gofaster tool for boy racers wanting to pimp their cars, but this is a serious consideration for vessels with high accommodation blocks or of a very square design that offers high wind resistance when under way. In the oil crisis of the 1980s, some tankers sported huge canvas funnels that were fitted in front of the accommodation block and pushed air up and over the superstructure in a bid to cut resistance. The view from the captains forward-facing cabin windows was spoiled though. Cost: low. Savings: unknown.

16. Kites and sails

THE ultimate green solution ticks all the obvious boxes from the environmental lobby. Despite the high profile and often unfounded claims of a green solution, there are some owners who believe that wind power will be a tool to reduce the need for high engine loads. Experts involved in marine engineering believe wind power can be used to create a supplementary propulsion to diesel power, but will not replace it. SkySails has became the talisman of this group of solutions, just as its financial troubles represent the struggles faced by many engineering firms as owners shun all but the most pressing engineering work. However, there are different kinds of sails being developed, and many think these will have a better future on deepsea tonnage than a wind kite. Costs:$1.5m, plus possible annual royalty. Saving: 10%.

8. Hull blasting and coating

WITH hundreds of hull coatings available, prices range from $250,000 to $800,000 for a complete outer coating. Proving the efficiency gains of the paint makers is almost impossible. However there is no doubt that the smoother the hull, the lower the friction and the better the fuel performance. Average cost: $450,000 plus drydock labour costs. Savings: 7%.

The 20 suggestions for improving LL Hypothetical

THE costs and savings are rough estimates given by a range of companies to help highlight the viability of installing solutions and their payback time.

12. Rudder
AS OTHER changes are made, an owner may have to decide whether the existing rudder should remain or be replaced. Many vessels built for speed in the late 1990s may have a schilling rudder, which can cause excessive drag. Cost: unknown. Savings: unknown.

1. Trim optimisation
THE manufacturers claim that these solutions give the optimal trim that a vessel should be set at for a given load draught and voyage speed. Savings are estimates and hard to verify as sea conditions and stability factors will have to be taken into account. Cost: $30,000 Savings: 1%

5. Crew awareness
NO MATTER who we spoke to, crew were seen as a vital factor in running a vessel as efficiently as possible. While training and course work is all good and well, a more proactive and engaging approach is critical. Competitions to come up with new ideas, with or without prizes, are helpful in getting the crew to think

9. Lube oil analysis and delivery

TRIBOLOGY, the study of metal erosion and lubrication, shows that poor performing engines will deposit metal shavings into the lube oil. Poor performance will impact fuel consumption, but critically in the future, NOx emissions. Owners are also looking at lube oil application. One owner told Lloyds List it managed to halve its lube oil usage by optimising delivery. Costs: sought but not supplied. Savings: $500,000 annually.

13. Turbocharger changes

MODERN developments in turbochargers comes from Hercules, the ongoing European-Union funded set of emissions reduction projects involving a large number of EU institutions and engineering firms. When slow steaming became popular with medium-sized boxships there was concern that these overpowered vessels would not perform well at reduced engine loads. The ability to switch off one or more turbochargers, or to adjust the work of a turbocharger helps meet air load with the engine demand to ensure fuel combustion at lower loads is optimised. Savings: 3%-5%

2. Voyage optimisation/weather routing

MANY different solutions exist and many more are being developed. Main concerns with such systems is that they are software programs with algorithms written to be as profitable as possible for the manufacturers. One shipowner has developed its own software and claims that the off-theshelf solutions are not as optimal as they can be. One manufacturer admitted that yes, there has to be a line drawn between making the

17. Flettner rotors

LIKE sails and kites, flettner rotors use the wind to provide additional power to a vessel by using a phenomenon known as the magnus effect. This effect creates lift, and in the case of the vertical rotors creates a forward momentum. Flettners are not new, but there are issues with their effectiveness and reliability. UK-based charity group Greenwave is developing a solution it hopes will be more readily accepted than

See how these systems are used Pages 4-5

10. Hull appendages

BECKER Marines Mewis Duct has become the most talked about retrofitted hull appendage. The simple construction is model tested

LL Hypothetical

14. Air lubrication

AIR lubrication was very much a

lloydslist.com

bringing you maritime news as it happens

Lloyd s List Thursday March 22, 2012

Maximising Ship Efficiency

8
previous models, telling Lloyds List readers to watch this space. Rumours abound that a bulk carrier owner has shown an interest in the idea. Cost: $10m (no practical examples) Savings 10% (estimate only).

10
natural gas will become more attractive in the future when gas prices are significantly lower than heavy fuel oil. Retrofitting is possible but costs are prohibitive. Gas prices in the US are cheaper than Europe and owners like Harvey Gulf Marine have taken the plunge with newbuilding orders, and some state ferry operators are looking to funds to convert their vessels. Cost: $5m. Savings: varied depending on fuel price differences.

19. Batteries and fuel cells

THESE are becoming a little more popular thanks to the DNV project in conjunction with Eidesvik and Wrtsil. After trialling fuel cells, the three partners plan to install a battery pack on a gas-powered offshore vessel to develop a true marine hybrid system. This would help vessels with variable power loads meet excessive demand without having to run engines inefficiently. A worthwhile demonstration of a new power

solution, but unlikely to catch on just yet Cost: 500,000 for 500kWh battery pack (fuel cell prices unknown) Savings: possible 20%

20. Solar panels

HAVING the ability to power internal lighting only is probably more of an environmental gimmick than a real fuel and cash saving tool. Clearly a vessel such as a car carrier with large open deck space to spare and a trade

18. Gas power

THIS is probably not a solution for retrofitting onto any large deepsea vessel operating on the charter or spot markets, but proponents of gaspowered shipping say the use of

in equatorial waters could gain more benefit from solar panels than a tanker, bulk carrier or passengership running in Northern Europe/Atlantic. However, one environmental expert does believe that solar panels will have a role to play in the future when photovoltaic cells can produce heat as well as electricity. The hot water can be fed into a waste heat recover boiler to generate power. Cost: unknown. Savings 0.5%. n
www.lloydslist.com/specialreports

lloydslist.com

bringing you maritime news as it happens

LONDON

SINGAPORE

VA N C O U V E R

THINK BIG!

The Shipowners Club

SCP GTEBORG

The progressive mutual

Insurance solutions for our Members and their brokers worldwide

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 Scandinavia, where 175 ships call in each week. anks to our e cient and sustainable transport network, we reach 70% of the industrial production in the Scandinavian markets in six hours. With our 24 daily railway connections to important logistics centres in Sweden and Norway, we play a vital role in the development of Swedens commerce and trade. With direct departures to North America as well as the Far East, we o er optimal conditions for the countrys international competitiveness. We have big plans for the future you should think big too!

www.portgot.se

www.shipownersclub.com

Maximising Ship Efficiency

Thursday March 22, 2012 Lloyds List

Getting technical gives rewards

Engines

Plenty of engine optimisation tools are available but the more owners pay, the more they are likely to benefit
WHEN Lloyds List spoke to the industrys two leading engine makers they offered similar advice about what owners should do to make the most out of their vessels. In the case of the LL Hypothetical, our imaginary bulk carrier, both Wrtsil and MAN Diesel said there were plenty of optimisation tools at the owners disposal, and the simple rule of thumb is the more you pay, the better the returns. Apart from the potential of derating the engines for more regular and efficient slow steaming, there are a range of tools that can be installed. After reviewing the specification of LL Hypothetical, MAN Diesel manager Christian Ludwig says that assuming the vessel was built around 2005 with a MAN engine, it is likely to be the 6S60MC6, with an installed power of 10,600 kWh based on a service speed of 14.5 knots. His first recommendation is to derate the engine and retrofit a new propeller to make the most out of the new engine speed. A speed reduction of 1 knot would give a 5% fuel saving, Mr Ludwig says. This means that an investment of about 1m ($1.3m) will be recouped in a little over two years. Additional modifications could

Powerhouse: while engines can be derated for efficient slow steaming, there are a range of other tools that can optimise a vessels performance.

add to the price tag but MAN Diesel has developed a funding mechanism to help owners pay for the retrofits, with repayments due throughout the payback time. Wrtsil vice-president lifecycle services Vesa Marttinen also points to derating, but highlights the need to look at the whole operating future of the ship when deciding to invest in fuel-saving measures. Retrofitting waste heat recovery,

for example, is expensive, at about 4m, but will give one of the largest fuel saving gains at more than 10%. Installing a WHR system should be done in conjunction with a complete assessment of the vessels operational lifespan and balancing the vessels power requirements, Mr Marttinen says. WHR retrofitting also demands a lengthy offhire period. In an age when the bottom line can shift from black to

red with uncomfortable ease in the market such as we have today then the lost revenue of a lengthened drydock may be a critical factor. Yet again, with heavy fuel oil likely to hit $1,000 a tonne, WHR systems may begin to look attractive in the near future, especially as they become more regularly used on newbuildings. Both Wrtsil and MAN have made significant developments in turbocharger technology in recent

years. MAN Diesels Mr Ludwig points to a 3% fuel saving from modifications to a turbocharger rotor. Both companies offer a form of turbocharger suited for periods when a vessel operates more slowly, notably for the overpowered containerships built with three turbochargers. MAN Diesel has seen an increase demand in upgrades in a new slide valve arrangement in manual engines to give more accurate valve timing leading to cleaner, more efficient fuel combustion. Similarly upgrading manual engines for auto tuning is possible, again with the aim of keeping fuel combustion as efficient as possible. Mr Marttinen also suggests that some vessels, maybe not LL Hypothetical, could be better suited for increased automation and power management. There are significant gains to be made in ensuring that the power generated onboard is as effective as possible. This is particularly true of diesel-electric installations. Integrating automation, systems monitoring, performance and condition awareness can lead to significant improvements in overall costs as well as reduce fuel bills, says Mr Marttinen. A disregard for proper vessel maintenance has become an issue during the downturn as owners try to cut costs. This has resulted in increased safety fears, leading to claims that vessels are on the verge of losing charters, especially in the tough vetting climate of the tanker market. n
www.lloydslist.com/special reports

Tried and tested technologies can hold key to innovation

WHILE there are obvious ways of reducing fuel costs, there is a field of maritime technology development that may offer retrofitting and newbuilding potential in the future. Fuel cells, batteries, air lubrication, flettner rotors and even wave power generation are technologies that are being assessed, in some cases with pilot or early commercial uptake. Many of the ideas stem from predecessors from yesteryear. UK-based Greenwave has been refining its idea for a flettner rotor. It admits there were some issues with its first design. It has gone back to the drawing board, saying a new design which could be revealed later this year may be suitable for a mid-size panamax bulk vessel. The idea of using the magnus effect stems from the German inventor Anton Flettner in the early 20th century and a handful of experimental ships have been built. SkySails has developed its kite system, but sales have obviously not been high enough to prevent the company having cash flow problems. The history of vessels using the wind is hardly worth repeating here other than to say there are significant efficiency gains and most solutions under development are intended to provide additional thrust for dieselpowered vessels, not act as a sole source of propulsion. While SkySails uses kites, other systems, such as the Wallenius Wilhelmsen Lines-supported Seagate use a collapsable delta sail system not unlike a large windsurf sail. Meanwhile DK Group has secured its first commercial order for an underwater air lubrication system, which it says is affordable and guaranteed to work. Having clinched the contract from Danish owner Dannebrog, it says other shipowners have expressed interest, particularly owners of large tankers that could be potential investors in the company and buyers of the product. Air lubrication and surface skimming craft have been in development for about 50 years. Hovercraft and wing-in-ground craft use a similar principle of reduced friction between hull and water. DNV and Norwegian offshore owner Eidesvik recently launched the next phase of the Fellowship project. Initially testing the configuration of a fuel cell installed into the electrical configuration of a diesel/gas-electric drive system, the vessel will have a 500 kWh battery pack installed to become the first hybrid powered vessel. If anyone has driven a Toyota Prius they will know about electric hybrid drives and how silent they are. The trials will demonstrate the viability of using batteries on ships to ensure engines work at maximum loads with the batteries being used to provide additional power. DNV says that fuel savings could amount to 20%. As fuel prices climb above $1,000 a tonne these ideas and others will look increasingly attractive for shipowners as the payback times become shorter. Other expensive technologies that are available now and becoming popular on newbuildings, may also become feasible as fuel prices rocket. Waste heat recovery systems, costing upwards of $4m will look attractive for vessels that have a reasonably long service life ahead of them. n
www.lloydslist.com/environment

Greek Tanker Fleet A Lloyds List Special Report March 29

Nigel Lowry looks at what lies ahead for Greek owners

lloydslist.com

bringing you maritime news as it happens