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One part of the shipping industry consistently has fewer cargo claims than the rest - gas carriers.
Today, over 900 ships lift 50 million tonnes of liquefied petroleum gas (LPG) each year, as well as 20 million tonnes of ammonia and petrochemical gases while more than 200 ships carry 150 million tonnes of liquefied natural gas (LNG). That's 50,000 voyages since the 1960s with no major incident.
Misinformed opponents of gas ships have portrayed them as bombs waiting to go off. In fact, they're among the safest ships afloat and have consistently fewer cargo claims than other types of ship.
Gas is the world's favourite fuel and global economic growth is increasingly dependent on it. However, keeping up with demand requires more ships, more crews, more suppliers, new technologies and new ways of doing business. So how will gas shipping meet the challenges of these changes while maintaining claims at a very low level?
The questions arising are addressed in Gas Matters™, a 40-minute DVD, produced by the UK P&I Club for use by crew and onshore staff. It aims to increase awareness of the causes of P&I claims for cargo damage and loss in a rapidly changing technical and commercial environment. Gas Matters™ provides advice on legal, technical and managerial aspects of preparation for loading, loading itself, the voyage, discharging and changing cargo.
It contends that gas ships have generally been built to the highest standards and are technically advanced. Positive tank pressure prevents the creation of flammable gas/air mixtures while closed loading systems, double hulls and cargo containment designs minimise the chance of cargo escaping. Gas terminals employ complementary advanced technology.
Being expensive, such ships are well maintained with some exceeding 40 years in service. They have been operated by a small pool of experienced operators and skilled crew. Above average manning levels and high quality training have kept down incidents caused by human error. Further, most LNG carriers trade on project contracts, shuttling between familiar ports of call. However, "ahead of gas shipping lies turbulent change and dramatic transition. It has been a world of few surprises but not any longer."
Hitherto, the 'LNG club' has had few members, enabling close co-ordination between shippers, carriers and receivers in a "guaranteed" market.
Officers formerly on first name terms with terminal staff will find themselves in unfamiliar loading situations on the other side of the world. A master used to 'project' work may find his ship trading in the spot market.
New ways of doing business will mean pressure on freight rates, disputes over quantity and quality, gassing-up and cooling-down time, and loss of hire. Owners new to LNG will need to understand how boil-off gas is used as fuel during voyages.
On the hardware front, crews used to maintaining ageing LNG ships must learn about reliquefaction and regasification plants. Engineers with a lifetime's experience of steam may have to learn to love diesels.
However, the growing market will not be satisfied by those already in the industry embracing change. Perhaps the biggest concern is the availability of skilled and experienced manpower to do all the new jobs properly. It is estimated that the growth of the LNG fleet alone will call for at least 5,000 new officers by 2010. Tempting staff away from other companies increases the industry's wage bill without adding to the pool of skilled people.
Only first-rate training programmes can produce the highly skilled mariners needed - mariners who will eventually become experienced, shore-based managers. Developing people is a vast but vital investment.
Bill Wayne, General Manager of the Society of International Gas Tanker & Terminal Operators Ltd (SIGTTO), says: "Gas will continue to play a major and growing role in meeting global energy demand. This will mean more newbuild gas carriers, more developments in terminal facilities and an expanding commercial base. All this activity is going to bring in many new people to the industry. If gas transportation is to maintain its excellent safety record, these new participants have to be aware of the sophisticated technology involved. The UK Club's DVD provides a first rate technical and commercial overview of key elements which underpin the ongoing success of the industry."
Karl Lumbers, the UK P&I Club's Loss Prevention Director, concludes: "Liquefied gas and its transportation amount to a dazzling success story. The challenge is to maintain today's high standards through a period of rapid expansion and change. All involved in gas shipping will want to work together to maintain the safety record, the confidence of the public and the success. By focusing on current best practice, this video aims to help achieve that goal."
Note to editors: 'Gas Matters™' is the latest video in a continuing series produced for the UK P&I Club by Harris and Harris. It is aimed at increasing awareness of the causes of P&I claims for cargo damage and loss across major ship types. It covers preparation for loading, loading itself, the loaded voyage, discharging and changing cargo. It will be distributed to UK Club members and is available to non-members through Maritime International Secretariat Services (www.marisec.org). Others in the series are Cargo Matters, Bulk Matters, Tanker Matters and Container Matters. They are also available from Marisec.
Gas Matters™ is a registered name and publication of Gas Strategies Group Ltd (www.gasstrategiesgroup.com) and the name is used with their permission.
For further information:
Karl Lumbers/Nick Whitear
Thomas Miller P&I Ltd
Tel: +44 (0) 20 7283 4646
Email: karl.lumbers@thomasmiller.com
nick.whitear@thomasmiller.com
Issued by:
Martin Rowland
Dunelm Public Relations
Tel: +44 (0) 20 7345 5232
Fax: +44 (0) 20 7345 5234
Email: info@dunelmpr.co.uk
Website: www.dunelmpr.co.uk
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