Rates likely to go up, writes
Alan Peat
SWEEPING CHANGES in ship safety requirements are due to come into effect from next year - and will add new cost pressures for ship-owners and operators, according to Rob Young, marine director of Unicorn Lines.
And this, inevitably, will be an upward pressure on freight rates over the next decade - as the new IMO (International Maritime Organisation) legislation is phased in from July 1 next year to 2010.
The industry was warned of the high costs involved during a recent maritime law seminar held in Singapore.
New equipment requirements include water-based fire fighting facilities on all newbuilds of more than 2 000 tons; and the compulsory introduction of emergency escape breathing devices (EEBDs).
Also to be phased out is the use of asbestos and the fire-fighting gas, halon, with single-hull tankers also on their way out under the new IMO rules.
Older vessels will also be subject to an increase in mandatory special surveys.
The number of ships which will need to have new equipment installed to comply with the new laws is thought to be over 60 000.
But, while it's a much-needed and welcome improvement in safety at sea, according to Young, it's going to cost.
"Just retro-fitting ships with the new fire-fighting gear in their engine rooms, for example," he said, "will cost more than US$25 000.
"The IMO ban on the use of toxic anti-fouling coatings on ships will also be a significant extra cost for shipowners.
"The new anti-fouling paint on a handy-size 35 000 ton ship will have a cost premium of US$100 000 per ship. This would mean we'd have to earn an extra US60 a day just to cover this cost - and there's no guarantee the new coating will last as long as the old.
"So the rates will go up."
One of the demands of the new IMO safety legislation is that all newbuildings constructed after July 2002 will require two new outfits of safety equipment.
"This additional equipment is a voyage data recorder. A so-called "Black Box" similar in function to those fitted to aircraft.
"Also a water-based, local application, fire suppression system (a water mist spray) for the engine room," he said
Existing ships will be required to achieve compliance by an as yet unspecified later date.
But Unicorn has anticipated the new IMO regime, and has already started to appropriately fit its newbuilds, according to Young.
"When we built our new ships in Poland, they were already fitted with most of the stuff," he said. "The China newbuilds, meantime, are being fitted to take all the new equipment before the implementation dates - and we'll be able to fit it "on the run" during the window period up to that date."
But, no matter what the cost, these improvements to ship safety and protection of the environment are long overdue, according to Young.
"Most of these new requirements flow from lessons learned in recent disasters at sea," he said.
"It all works against old tonnage, and is another nail in the coffin of the old tubs which currently wander around the world's oceans."
