The Shipping Trade

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First came the viking cargo ships, the knarr. They were able to sail mostly downwind but required the use of oars. Staying mostly within sight of land, they knew a little about prevailing winds and navigated with the aid of a sundial and a sun stone.

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In the early 19th century Clipper ships sailed all over the
world. Not much was required to sail the vessel except a strong back, a loud voice, and a basic knowledge of navigation.
Navigational equipment probably included a compass, a sextant and a telescope. Life expectancy for the vessel was no more than a couple of years.

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A cargo ship in the 1950s and 1960s was more fully equipped:

Gyro Compass (maybe) Gyro Steering Stand (Doubtful) Radar (2) (used only approaching land) Loran A (probable) RDF (required) Fathometer (required) Radio Equipment (+ Operator) Telegraphy

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The Norm in 2005 - Bridge

Compasses Gyro (2) (digital) Electronic compass (probable) Magnetic compass Sonde Digital Steering Stand Radar (2) Digital with built in ARPA Loran C (fully automatic) GPS (Multiple) Fathometer Speed Log ECDIS Weather Fax Loggers Computer weather E-mail Digital Communications AIS SSAS Web Cams LookSea augmented reality GMDSS

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The Norm in 2005 Engine Room

Steam Plants Diesel Diesel Electric Gas Turbines Generators Sewage Treatment Facilities Air Conditioning Systems Hydraulics Evaporators
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Controlled by a modern computerized control room

In the early part of the 21st century, the face of shipping is quite
different. Shipping has become a heavily regulated industry. Crews have to be increasingly well educated and trained and conform to regulations and procedures designed to protect cargo, crew, investors and environment. No longer as subject to the vagaries of wind and weather, modern cargo vessels are increasingly becoming the transportation mode of choice.

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Changing Dynamics in the supply chain of

ship board officers and crew have also occurred
Traditionally, the worlds economic powers built the ships and trained their citizens to operate them Today, the citizenry of the developed countries are less likely to seek careers at sea Todays ships are much more likely to have been built in a foreign yard and have a multi-national crew Significant shortages of qualified ships officers and crews are expected over the next decade in all segments of the shipping industry English is the official language of shipping yet for the vast majority of ship crews, English is a foreign language.
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Human error
remains the #1 cause of shipping accidents

The MEGA BORG released 5.1 million gallons of oil as the result of a lightering accident and subsequent fire. The incident occurred 60 nautical miles south-southeast of Galveston, Texas on June 8, 1990.

The New Era

Natural gas is the economic/environmental fuel of choice 96% of natural gas reserves are located outside North America

25% of world natural gas consumption occurs in the U.S.

We are entering a new era in LNG shipping with the imminent arrival of the first very large tankers with more that 200,000 cubic metres of cargo capacity. These tankers have new forms of propulsion (slow diesel or duel-fuel) and new technology such as reliquefaction plants on board.
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LNG ships

are more technically advanced and carry a cargo unlike any other
Cargo is carried at extremely cold temperature LNG can only be carried in specially designed ships Loading and discharge process is different from other tankers Cargo immediately starts re-gasification process (boil-off) Highly reduced volume 1/600th Most ships are steam powered Re-liquification & re-gasification plants on board
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LNG ships

and the industry in general have enjoyed an

unprecedented safety record for nearly 40 years.

Why?

Excellence and continued training of crew Experienced officers with long tenure in the LNG industry Superior quality of ships and equipment Long term contracts with point to point delivery Controlled and sustainable growth (supply continually meeting demand) Quality control instituted by the owner/operators
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The Demand
Time-line
In service as of September 2004 In service as of May 2005 Expected new contracts for 2005 Expected on order at end of 2005 Expected total of LNG fleet by end of 2009

Number of ships
174 ships (including 28 ships delivered since January 2002) 182 ships 50-65 (21 are firm orders) 143-158 339-354

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Traditional and new entrant operators, and delivery years of new LNG ships (as of September, 2004)
Operators Traditional Operators Misc Gas de France Golar Exmar Nigeria LNG MOL Pronav NYK Sonatrach Bergessen Lief Hoegh Kawasaki Sub-Total New Entrant Operators Teekay Petronet Angelokousis (Maran) Moller/Maersk BG Group Knutsen TMT Tsakos Dynacom Cosco Sovcomflot OSG Iino Sub-Total Total 1 1 0 0 0 0 0 0 0 0 0 0 0 2 9 0 0 1 0 0 0 0 0 0 0 0 0 0 1 15 1 0 2 1 3 1 1 0 0 0 0 0 0 9 27 2 0 1 0 3 0 0 1 2 1 1 2 0 13 30 0 0 0 0 1 0 0 0 1 1 0 2 1 6 13 4 1 4 1 7 1 1 1 3 2 1 4 1 31 94 1 1 1 1 2 0 0 0 1 0 0 0 7 2 1 0 1 2 3 0 1 0 2 1 1 14 2 1 2 1 1 5 0 2 0 1 1 2 18 5 0 1 0 0 0 1 5 1 2 0 2 17 2 0 0 0 0 0 3 0 0 2 0 0 7 12 3 4 3 5 8 4 8 2 7 2 5 63 2004 2005 2006 2007 2008 Total

RESULT = SHORTAGES

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Shortage of adequately trained officers and crew to meet increased manning requirements

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Composition of seafarers on board an LNG ship

Officers
Navigation Master Chief Officer (Nav.)
Chief Officer (Cargo) 2nd Officer

Engine Chief Engineer 1st Assistant Engineer

2nd Engineer 4th Engineer

3rd Officer
Total 5

Junior Engineer
Total 5

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Composition of seafarers on board an LNG ship

Ratings
Navigation Department Engine Department Boatswain Boatswain Able Seaman Able Seaman Able Seaman Able Seaman Able Seaman Oiler No. 1 Oiler Oiler Oiler Oiler Fitter Pursers Office Chief Cook Second Cook Messman -

Ordinary Seaman Total 8

Total 6
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Total 3

Composition of seafarers on board an LNG ship

Summary
Senior Officers (Management Level) Junior Officers (Operational Level) Total number of officers (Note) 1st Assistant Engineer is a management level engineer in charge of cargo 6 4 10

Ratings Total composition

17 27

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Estimated demand for officers for LNG ships on order

Year Deliveries Newly Required Seafarers Total 2004(4th Qtr) 2 delivered 2005 2006 2007 2008-2010 20 27 30 86-101 156 1,560 2,106 2,340 6,708-7,878 Officers* 52 (32) 520 (312) 702 (422) 780 (468) 2,236-2,626 (1,342-1,576)

Total

165-180

12,870-14,040 4,290-4,580 (2,576-2,810)

* Figures in parentheses show the number of Senior Officers (Management Level)

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Shortage of qualified engineers with steam endorsement

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Estimated demand for turbine engineers

Year Deliveries
Newly required turbine engineers

Officers 2004(4th Qtr) 2 (delivered) 2005 2006 2007 20 27 30 26 260 351 390

Senior Officers 16 156 211 234

2008-2010 Total

86-101 165-180

1,118-1,313 2,145-2,290

671-788 1,287-1,374

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Shortage of time to adequately train senior officers from a different segment of the shipping industry to meet the qualifications for commanding LNG ships

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General qualification for shipmaster, deck & engine departments

Training
Approved tanker familiarization course

Appropriate shore-based fire-fighting course At least 3 months approved seagoing service on tankers Tanker familiarization certificate

Suggested training scheme for personnel on LNG tankers

Experience appropriate to duties on LNG tankers

Approved specialized LNG training program Certificate awarded Dangerous Cargo Endorsement (Gas) Service in positions with immediate responsibility for loading, discharging and care in transit or handling LNG cargoes

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Shortage of training billets aboard existing LNG ships to be able to meet the loading and discharge qualification requirements

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Shortage of LNG simulators and qualified instructors

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Consequences?
LNG ships sit idle, cargo doesnt move highly unlikely Poaching of qualified senior LNG officers from one company to another occurs LNG ships sail with minimally trained (qualified) crews Serious accidents occur.
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Solutions:
First, industry must recognize the looming problem International training standards for the LNG industry must be established by IMO and national entities Training programs for converting senior officers from one type of ship to LNG ships must be developed LNG companies must work together in order to provide training billets aboard LNG ships Underwriters and financiers should insist on some level of crew training and certification Worlds maritime academies must start process of providing basic LNG training to their undergraduate students SIGTTO and IAMU are developing model courses
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The Need

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