NEWS & INFORMATION

NEWS

Gary Drew, Essex Shipping

Dry Cargo - RightShip

New in 2018 is a revised RightShip regulation which drops the dry cargo ship inspection for ships over 8000 dwt from 18 to 14 years. An inspection takes up to two days and usually costs up to US$7500.

Gary Drew, Essex Shipping

Bosporus Bypass

Work is due to start this year, environmental considerations permitting, on a 45km stretch of canal from the Durusu area in the Black Sea to Kucukcekmece Lake, Marmara. Initially mooted in 2011, the plans show the width ranging from 250m to 1km and a depth of 25m.

Gary Drew, Essex Shipping

Suez Slops

The Suez Canal Economic Zone and French company Ecoslops have signed a memorandum of understanding to develop a feasibility study, due for completion by Q3, for a slops reception facility close to the canal. They estimate in excess of 40kmt of slops are being generated by 18000 transits and 7000 port calls, which Ecoslops plan to convert to light bitumen and new fuels.

Gary Drew, Essex Shipping

US Sanctions – 2017 Recap

In 2017 the advent of Donald Trump’s presidency has created both questions and answers where US sanctions are concerned, leaving many traders, owners and brokers unsure of where they stand. In brief:

In June, Trump announced his intention to roll back Obama’s relaxation of the Cuba embargo, and by November OFAC (the United States Office of Foreign Assets Control) and the Dept of Commerce published limitations on travel and new restrictions on liaison with Cuban security services.

August Changes to US Sanctions Laws included the Countering America’s Adversaries Through Sanctions Act (“CAATSA”); this codified some pre-existing sanctions, imposed some new ones against certain Russians (allegedly identified as having undermined United States cybersecurity), and created a mechanism for Congressional review before the President could ease sanctions against Russia. CAATSA also tightened existing sanctions that target Russia’s energy, defence and financial sectors; limitations to the duration of US financing and tightened sanctions on Russian deepwater, Arctic offshore, and shale projects are the main thrust.

In September, Trump issued an executive order expanding United States sanctions by blocking North Korean-controlled funds and bank accounts, as well as prohibiting vessels that have called North Korean ports in the previous 180 days from entering the US.

An October announcement stated Trump would not certify Iran’s compliance with the JCPOA (Joint Comprehensive Plan of Action), which had suspended some nuclear-related sanctions. Although this doesn’t reinstate any sanctions, Trump will need to periodically renew sanctions waivers, which of course he might not. Finally, and also in October, OFAC announced the termination of most US sanctions against Sudan; these had already been suspended in January 2017.

Gary Drew, Essex Shipping

Fleets & Finance - Specialized

We have seen a year that featured consolidation more than just in terms of ships, as a number of banks reduce or discontinue their shipping loan portfolios, while others have bought this debt and increased their own exposure. The weak shipping markets too have played their part in pushing up the cost of borrowing, as stricter regulation of financial markets have taken some of the venture capital options away. Correspondingly, increased regulation applied to ships’ hydrocarbon emissions, ballast water treatment and the demand for ships to inert (whether actually necessary or not), all contributes to making entry costs to some of the more specialized markets too prohibitive. Whether or not this is all enough to put much of a brake on gratuitous, speculative shipbuilding remains to be seen, but the majority of seemingly committed owners are beginning to see light at the end of the tunnel where earnings are concerned. There is no doubt more owning consolidation is likely this year and next, and if parcel tanker scrapping increases too, the building blocks for the next boom will fall perfectly into place.

Gary Drew, Essex Shipping

Cryptocurrency & Crowd Funding

Another concept on the blocks this year is blockchain financing, as ‘Shipowner.io’ is promoted as a channel for the man/woman/other on the street to own part of a ship for as little as US$100 (or less). The online platform has an initial target audience of seafarers, shipping enthusiasts and ethereum traders, and an assets and services target of US$23 billion by 2023, as it tries to out-compete more costly banking and financing.

Gary Drew, Essex Shipping

Chemical Coaster Consolidation

An early move in the 2018 market was Axel Eitzen’s acquisition of the 19-ship, 3000 to 11000 mt dwt Herning Shipping from Nordic Tankers, hot on the heels of Nordic’s divestment of Crystal Nordic late last year. Axel Eitzen, Nikolai Heidenreich and Erik Bartnes are the partners behind the acquisition, which apparently will be renamed Christiana Shipping and will also encompass the existing small tanker fleet operating out of Southern France and Marbella.

CONVERSION TABLES

PRESSURE
BAR ATM KGF/CM2 LBF/IN2 (PSI)
1 BAR 1 0.98692 1.01972 14.5038
1 STANDARD ATMOSPHERE (ATM) 1.01325 1 14.6959
1 KILOGRAMME-FORCE PER SQUARE CENTIMETRE (KGF/CM2) 0.98066 0.967841 1 14.2233
1 POUND-FORCE PER SQUARE INCH (LBF/IN2 OR PSI) 0.06895 0.068046 0.070307 1
APPROX. WEIGHT/VOLUME
TO CONVERT
DENSITY (15C) API (60F) M3 TO MT MT TO M3 US BBLS TO MT) MT TO US BBLS US BBLS TO LONG TONS LONG TONS TO US BBLS
CRUDE OILS: MULTIPLY BY FACTOR
ARABIAN HEAVY 0.8867 28.0 0.8856 1.1292 0.14073 7.105 0.13851 7.22
ARABIAN MEDIUM 0.8741 30.3 0.8730 1.1455 0.13873 7.208 0.13654 7.324
ARABIAN LIGHT 0.8576 33.4 0.8565 1.1675 0.13612 7.347 0.13397 7.464
IRANIAN LIGHT 0.8550 33.9 0.8539 1.1711 0.13571 7.369 0.13356 7.487
OMAN 0.8509 34.7 0.8498 1.1767 0.13505 7.405 0.13292 7.523
MURBAN 0.8276 39.4 0.8265 1.2099 0.13133 7.614 0.12926 7.736
ZAKUM 0.8242 40.1 0.8231 1.2149 0.1308 7.645 0.12873 7.768
PRODUCTS:
FUEL OIL 0.9793 12.9 0.9782 1.0223 0.15547 6.432 0.15301 6.535
GAS OIL 0.8295 39 0.8284 1.2071 0.13164 7.596 0.12956 7.718
JET FUEL 0.8096 43.2 0.8085 1.2369 0.12847 7.784 0.12644 7.909
GASOLINE 0.7299 62.3 0.7288 1.3721 0.11579 8.636 0.11396 8.775
NAPTHA 0.6599 82.9 0.6588 1.5179 0.10465 9.555 0.10299 9.709
*AT 60oF
WEIGHT
KG MT LONG TON SHORT TON
1 KILOGRAMME (KG) 1 0.001 0.000984 0.001102
1 METRIC TONNE (MT) 1,000 1 0.984207 1.10231
1 LONG TON (LT) 1,016.05 1.01605 1 1.12
1 SHORT TON (ST) 907.185 0.90719 0.892857 1
LENGTH
CM M INCH FT YD
1 CENTIMETRE (CM) 1 0.01 0.3937 0.032808 0.010936
1 METRE (M) 100 1 39.3701 3.28084 1.09361
1 INCH (IN) 2.54 0.0254 1 0.00833 0.02777
1 FOOT (FT) 30.48 0.3048 12 1 0.3333
1 YARD (YD) 91.44 0.9144 36 3 1
1 MILE = 1.60934 KILOMETRE    1 KILOMETRE = 0.62137 MILE    1 NAUTICAL MILE = 1.852 KILOMETRE
CAPACITY
M3 FT3 UK GALLON US GALLON BBLS
1 CUBIC METRE (M3) 1 35.3147 219.969 264.17 6.28976
1 CUBIC FOOT (FT3) 0.028317 1 6.2288 7.4805 0.178107
1 IMPERIAL GALLON (UK GAL) 0.004546 0.160544 1 1.2009 0.028594
1 US GALLON (US GAL) 0.003785 0.133681 0.83268 1 0.02381
1 US BARREL (BBLS) 0.158988 5.6146 34.9726 42 1
CUBIC METRE = KILOLITRE
TEMPERATURE
o CELSIUS (oC) = 5/9 (oF -32)
o FAHRENHEIT (oF) = (9/5 oC) +32

SHIPPING GLOSSARY

A

AA - ALWAYS AFLOAT

AAAA – ALWAYS ACCESSIBLE, ALWAYS AFLOAT

AAR – ALWAYS AT RISK

A/C - ACCOUNT

ADDCOM – ADDRESS COMMISSION

ADDENDUM – ADDITIONAL CHARTERING TERMS AT THE END OF A CHARTER PARTY

AFRA – AFRAMAX (TANKER SIZE)

AG – ARABIAN GULF

AGW – ALL GOING WELL

A/O – AND / OR

AOG – ACT OF GOD

API – AMERICAN PETROLEUM INSTITUTE

ARA – AMSTERDAM – ROTTERDAM - ANTWERP (AREA)

ARB – ARBITRATION

A/S – ALONGSIDE

ASAP – AS SOON AS POSSIBLE

ASTM – AMERICAN SOCIETY FOR TESTING AND MATERIALS (PRODUCT COLOUR SCALE)

ATV – ASBATANKVOY CHARTER PARTY

AUX – AUXILIARY

B

BB – BAREBOAT

BBB – BEFORE BREAKING BULK

BBLS – BARRELS

BCM – BOW TO CENTRE MANIFOLD

BENDS – BOTH ENDS

BHP – BRAKE HORSE POWER

BIFFEX – BALTIC INTERNATIONAL FRIEGHT FUTURES EXCHANGE

BIMCO - BALTIC AND INTERNATIONAL MARITIME COUNCIL

BKRS - BUNKERS (FUEL)

B/L – BILL OF LADING

B/N – BOOKING NOTE

BP – BOILING POINT

BSS – BASIS

BT – BOWTHRUSTER

BW – BRACKISH WATER

C

CAP – CONDITION ASSESSMENT PROGRAMME

CBM – CUBIC METRES

CCR – CARGO CONTROL ROOM

CDI – CHEMICAL DISTRIBUTION INSTITUTE

CG – COAST GUARD

CHOPT – CHARTERER'S OPTION

CHRTS - CHARTERERS

CIF – COST INSURANCE AND FREIGHT

CIQ – CHINESE INSPECTION AND QUARANTINE (REGULATIONS)

CIS – CHARTERER'S INSPECTOR'S SATISFACTION

CL – CLOSED LINE OR CENTRE LINE

CLC – CIVIL LIABILITY CONVENTION (POLLUTION)

CLN – CLEAN

CLSS – CLAUSES

CMA – CHARTERER’S MANAGEMENT APPROVAL

COA – CONTRACT OF AFFREIGHTMENT

COB – CLOSE OF BUSINESS

COC – CERTIFICATE OF CLASS

COF – CERTIFICATE OF FITNESS

COMP – COMPLETION

CONS – CONSUMPTION

COP – CLEAN OIL PRODUCTS

COS – CHAMBER OF SHIPPING

COW – CRUDE OIL WASHING SYSTEM

C/P – CHARTER PARTY

CPP – CLEAN PETROLEUM PRODUCTS

CT – CENTRE TANK

CV – CLOSED VENTING OR CONSECUTIVE VOYAGES

CWRB – CREW WAR RISK BONUS

D

D&A – DRUG & ALCOHOL

DD – DRY DOCK

DEG – DEGREES

DEM – DEMURRAGE

DENS – DENSITY

DH – DOUBLE HULL

DNV – DET NORSKE VERITAS (NORWEIGAN CLASS SOCIETY)

DO – DIESEL OIL

DOP – DROPPING OUTWARD PILOT OR DIRTY OIL PRODUCTS

DLOSP – DROPPING LAST OUTWARD SEA PILOT

DOT – DEPARTMENT OF TRADE

DPP – DIRTY PETROLEUM PRODUCTS

DRK - DERRICK

DT – DECK TANK

DV – DOUBLE VALVE

DWAT – DEADWEIGHT AT TOTAL

DWCC – DEADWEIGHT CARGO CAPACITY

DWT – DEADWEIGHT

E

EAF – EAST AFRICA

ECI – EAST COAST INDIA

E/O – EITHER / OR

E&OE – ERRORS AND OMISSIONS EXCEPTED

EOP – END OF PASSAGE

EOSP – END OF SEA PASSAGE

EPCA – EUROPEAN PETRO CHEMICAL ASSOCIATION

EPX – EPOXY (TANK COATING)

ETA – ESTIMATED TIME OF ARRIVAL

ETB – ESTIMATED TIME OF BERTHING

ETC – ESTIMATED TIME OF COMPLETION

ETD/S – ESTIMATED TIME OF DEPARTURE/SAILING

EWRIP – EXTRA WAR RISK INSURANCE PREMIUM

F

FAO – FOR THE ATTENTION OF

FAO – FOOD AND AGRICULTURAL ORGANISATION

FB – FREEBOARD

FC – FULL CARGO

FHINC – FRIDAYS AND HOLIDAYS INLCUDED

FLA – FIRST LINE ASHORE

FO – FUEL OIL

FOB – FREE ON BOARD

FOC – FREE OF CARGO

FOC – FLAG OF CONVENIENCE

FOSFA – FEDERATION OF OIL SEEDS AND FATS ASSOCIATIONS.

FP – FLASH POINT

FR – FINAL REPORT

FSL – FLAT SIDE LENGTH

FSS – FULL SEA SPEED

FWDFT – FRESH WATER DRAFT

G

GA – GENERAL AVERAGE OR GENERAL ARRANGEMENT PLAN

GBS – GERMAN BALTIC SEA

GHS – GLOBAL HARMONIZED SYSTEM OF CLASSIFICATION AND LABELLING OF CHEMICALS

GL – GERMANISCHER LLOYD

GNS – GERMAN NORTH SEA

GOA – GULF OF ADEN

GPS – GLOBAL POSITIONING SYSTEM

GT – GROSS TONNAGE

H

H&M – HULL & MACHINERY (INSURANCE)

HMAC – HAZARDOUS MATERIALS ADVISORY COUNCIL

HWS – HIGH WATER SPRINGS

I

IACS – INTERNATIONAL ASSOCIATION OF CLASSIFICATION SOCIETIES

IAPH – INTERNATIONAL ASSOCIATION OF PORTS AND HARBOURS

IAPPC – INTERNATIONAL AIR POLLUTION PREVENTION CERTIFICATE

IBC CODE – INTERNATIONAL BULK CHEMICAL CODE (SAFE SHIP CONSTRUCTION)

ICS – INSTITUTE OF CHARTERED SHIPBROKERS

IGS – INERT GAS SYSTEM

IMO – INTERNATIONAL MARITIME ORGANISATION

INTERTANKO – INTERNATIONAL ASSOCIATION OF INDEPENDENT TANKER OWNERS.

IOPPC – INTERNATIONAL OIL POLLUTION PREVENTION CERTIFICATE

ISGOTT - INTERNATIONAL SAFETY GUIDE FOR OIL TANKERS AND TERMINALS

ISM – INTERNATIONAL SAFETY MANAGEMENT CODE

ISPS – INTERNATIONAL SHIP AND PORT FACILITY SECURITY (CODE)

ISSC – INTERNATIONAL SHIP SECURITY CERTIFICATE

ITF – INTERNATIONAL TRANSPORT WORKERS’ FEDERATION

ITOPF – INTERNATIONAL TANKER OWNERS POLLUTION FEDERATION

IWL – INSTITUTE WARRANTY LIMITS

K

KR – KOREAN REGISTER

KTM – KEEL TO MASTHEAD

KTS – KNOTS

L

LAT – LATITUDE

LBP – LENGTH BETWEEN PERPENDICULARS

LC – LAST CARGO

LDG – LOADING

LDN – LONDON

LLC – LOAD LINE CONVENTION

LNG – LIQUEFIED NATURAL GAS

LOA – LENGTH OVERALL

LOC – LETTER OF CREDIT

LOI – LETTER OF INDEMNITY

LOF – LLYODS OPEN FORM

LOFO – LONDON FORM CHARTER PARTY

LONG – LONGTITUDE

LPG – LIQUEFIED PETROLEUM GAS

LR – LLOYDS REGISTER OR LOADREADY

LR1/LR2 – LONG RANGE (TANKER SIZE)

LS - LUMPSUM

LT – LONG TONS

LUBE – LUBRICATING OIL

LW – LOW WATER

LWT – LIGHT WEIGHT TON

M

MARPOL 73/78 – MARINE POLLUTION (CONVENTION - 1973, MODIFIED 1978).

MDO – MARINE DIESEL OIL

M/E – MAIN ENGINE

MIN/MAX – MINIMUM / MAXIMUM

MFR – MINIMUM FLAT RATE

ML – ‘MARINELINE’ (POLYMER TANK COATING)

MOLCO – MORE OR LESS IN CHARTERER'S OPTION

MOLOO – MORE OR LESS IN OWNER'S OPTION

MPA'S – MILLIPASCAL-SECOND (VISCOSITY)

MR – MEDIUM RANGE (TANKER SIZE)

MS – MILD STEEL

MT – METRIC TONS / MEAN TIME/ MOTOR TANKER

MTPH – METRIC TONS PER HOUR

MV – MOTOR VESSEL

N

N2 – NITROGEN (FOR PURGING OR PADDING)

NAABSA – NOT ALWAYS AFLOAT BUT SAFELY AGROUND

NBLDG – NEW BUILDING

NDFCAPMQS – NO DEADFREIGHT FOR CHARTERER'S ACCOUNT PROVIDED MINIMUM QUANTITY SUPPLIED.

NGOER – NORMAL GEOGRAPHICAL ORDER EN ROUTE

NHC – NO HEAT CRUDE

NOR – NOTICE OF READINESS

NPA – NATIONAL PRODUCT ASSOCIATION (PRODUCT COLOUR SCALE)

NT – NET TONNAGE

NWE – NORTH WEST EUROPE

NY – NEW YORK

O

OA – ON ARRIVAL

OB – OVERBOARD

OBL – ORIGINAL BILL OF LADING

OD – ON DELIVERY

OCIMF – OIL COMPANIES INTERNAL MARINE FORUM

OH – OFF HIRE

OO – OWNER'S OPTION

OOS – OWNER'S OPTION SUBSITUTE

OPL – OFF PORT LIMITS

OPT – OPTION

OSB – ONE SAFE BERTH

OSP – ONE SAFE PORT

OWNS - OWNERS

P

P&I – PROTECTION AND INDEMNITY

PBL – PARALLEL BODY LENGTH

PC – PART CARGO

P&C – PRIVATE AND CONFIDENTIAL

PCNT - PANAMA CANAL NET TONNAGE

PCT - PERCENT

PDPR – PER DAY, PRO RATA

PG – PERSIAN GULF

PLT – PER LONG TON

PMT – PER METRIC TON

POB – PILOT ON BOARD

POD – PLACE OF DISCHARGE

POP – PALM OIL PRODUCT

PPM – PARTS PER MILLION

PPT – PROMPT

PR – POSITION REPORT

PSC – PORT STATE CONTROL

PSFP – PROVIDED SHORE FACILITIES PERMIT

PVV – PRESSURE VACUUM VALVE

R

REV – REVERSIBLE (LAYTIME)

REVS – REVOLUTIONS

ROB – REMAINING ON BOARD

ROT - ROTATION

ROT - RESIDUAL OIL TANK

R/T – RADIO TELEPHONE

R/V – ROUND VOYAGE

S

S&P – SALE AND PURCHASE

SAR – SEARCH AND RESCUE

SB – SAFE BERTH

SBM – SINGLE BUOY MOORING

SBT – SEGREGATED BALLAST TANKS

SCM – STERN TO CENTRE MANIFOLD

SCGT/SCNT – SUEZ CANAL GROSS/NET TONNAGE

SDFT – SUMMER DRAFT

SEG – SEGREGATION

SG – SPECIFIC GRAVITY

SIRE – SHIP INSPECTION REPORT PROGRAMME

SH – SECOND HALF

SHEX – SUNDAYS AND HOLIDAYS EXCLUDED

SHEXUU – SUNDAYS AND HOLIDAYS EXCLUDED UNLESS USED

SHINC – SUNDAYS AND HOLIDAYS INCLUDED

SLOP – SLOP TANK

SOLAS – SAFETY OF LIFE AT SEA (CONVENTION)

SPD – SPEED

SPM – SINGLE-POINT MOORING

SQAS – SAFETY AMD QUALITY ASSESSMENT SYSTEM

SS – STAINLESS STEEL / SPECIAL SURVEY

STS – SHIP-TO-SHIP (CARGO TRANSHIPMENT)

SUB – SUBSTITUTE

SUBS – SUBJECTS

SW – SALT WATER

SWDFT – SALT WATER DRAFT

SWL – SAFE WORKING LOAD (CRANES & DERRICKS)

T

TBA – TO BE ADVISED

TBC – TO BE CONFIRMED

TBD – TO BE DECLARED

TBN – TO BE NOMINATED

TBRN – TO BE RENAMED

T/C – TIME CHARTER

TPC – TONS PER CENTIMETRE (IMMERSION)

TPH – TONS PER HOUR

TR&E – TIME, RISK AND EXPENSE

TT – TELEGRAPHIC TRANSFER

U

ULCC – ULTRA LARGE CRUDE CARRIER

UKC – UNDER-KEEL CLEARANCE

UNDKR – UNDARKER

UNLDD – UNLEADED

UPC – USUAL PROTECTIVE CLAUSES

USAC – US ATLANTIC COAST

USCG – UNITED STATES COAST GUARD

USG – US GULF

UU – UNLESS USED

USWC – US WEST COAST

V

VECS – VAPOUR EMISSION CONTROL SYSTEM

VHF – VERY HIGH FREQUENCY (RADIO)

VI – VISCOSITY INDEX

VISC – VISCOSITY

VLCC – VERY LARGE CRUDE CARRIER

VP – VAPOUR PRESSURE / VARIABLE PITCH

VSL – VESSEL

W

WAF – WEST AFRICA

WB – WATER BALLAST

WCI – WEST COAST INDIA

WCSA – WEST COAST SOUTH AMERICA

WDFT – WATER DRAFT

WDWT – WINTER DEADWEIGHT

WIBON – WHETHER IN BERTH OR NOT

WIFPON – WHETHER IN FREE PRATIQUE OR NOT

WOG – WITHOUT GUARANTEE

WP – WEATHER PERMITTING / WAY POINT

WS – WORLD SCALE

WSHTC – WORLD SCALE HOURS, TERMS AND CONDITIONS

WSNP – WEATHER AND SAFE NAVIGATION PERMITTING

WT – WING TANK

WVNS – WITHIN VESSEL'S NATURAL SEGREGATION

W/W – WATER WHITE

Y

Y/A – YORK / ANTWERP RULES

Z

Z – ZINC (TANK COATING)

DEFINITIONS

ARBITRAGE - The buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.

BALLAST BONUS - Sum of money paid by a time charterer to a ship owner (in a good market) to compensate him for not finding a cargo near the place of re-delivery of the ship at the end of the charter. The bonus serves as an incentive for the ballast (empty) trip to cover up the cost of fuel and time. At times a ship owner pay the charterer a ballast bonus when the vessel is being re-delivered at the end of time charter, especially when market is not good for the ship owner.

DRAFT - Depth to which a ship is immersed in water. The depth varies according to the design of the ship and will be greater or lesser depending not only onthe weight of the ship and everything on board, but also on the density of the water in which the ship is lying.

ISGOTT – International Safety Guide for Oil Tankers and Terminals is produced by the International chamber of shipping, Oil companies international marine forum and the international association of ports and harbours and is a guide to safely handling Petroleum and Crude oil products on Tankers and in the terminal. The first edition was published in 1978, the current edition – the 5 th – was published in 2006 and is still very much in daily use both on-shore and off.

P&I – or protection and Indemnity is an insurance cover that can be taken out by companies involved in the maritime sector. The ‘P&I Club’ will provide advice to its members on the best practices to avoid claims being made against the member by third parties, this advice may include restriction of trade with certain countries / entities due to international embargoes enforced against them or even vague reporting of previous claims against other members to illustrate the dangers of certain actions or inactions as the case may be.

WORLD SCALE – Stands for ‘New worldwide tanker nominal freight scale’ the company is a non-profit making organisation and has offices based in London and New York, Worldscale provide freight ‘flat rates’ for a round-trip voyage, this flat rate is based on market conditions at the time of printing which includes average bunker prices at that moment – there are also further differentials and terms and conditions to be taken into account when using Worldscale.

Disclaimer

This website is provided “as is” without any representations or warranties, express or implied.  Essex Shipping Services Ltd. makes no representations or warranties in relation to this website or the information and materials provided on this website.