The Shipping Trade Return to AIMU Website

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. Return to AIMU Website

In the early 19 th 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. Return to AIMU Website

A cargo ship in the 1950’s and 1960’s 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 Return to AIMU Website

The Norm in 2005 - Bridge q. Compasses Ø Gyro (2) (digital) Ø Electronic compass (probable) Ø Magnetic compass Sonde q. Digital Steering Stand q. Radar (2) Ø Digital with built in ARPA q. Loran C (fully automatic) q. GPS (Multiple) q. Fathometer q. Speed Log q. ECDIS q. Weather Fax q. Loggers q. Computer weather q. E-mail q. Digital Communications q. AIS q. SSAS q. Web Cams q. Look. Sea augmented reality q. GMDSS Return to AIMU Website

The Norm in 2005 – Engine Room • • • Steam Plants Diesel Electric Gas Turbines Generators Sewage Treatment Facilities Air Conditioning Systems Hydraulics Evaporators Controlled by a modern computerized control room Return to AIMU Website

In the early part of the 21 st 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. Return to AIMU Website

Changing Dynamics in the supply chain of ship board officers and crew have also occurred • Traditionally, the world’s 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 • Today’s ships are much more likely to have been built in a foreign yard and have a multi-national crew • Significant shortages of qualified ship’s 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. Return to AIMU Website

Return to AIMU Website 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. Return to AIMU Website

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 1/600 th • Most ships are steam powered • Re-liquification & re-gasification plants on board Return to AIMU Website

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 Return to AIMU Website

The Demand Time-line Number of ships In service as of September 2004 174 ships (including 28 ships delivered since January 2002) In service as of May 2005 182 ships Expected new contracts for 2005 50 -65 (21 are firm orders) Expected on order at end of 2005 143 -158 Expected total of LNG fleet by end of 2009 339 -354 Return to AIMU Website

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

RESULT = SHORTAGES Return to AIMU Website

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

Composition of seafarers on board an LNG ship Officers Navigation Master Engine Chief Engineer Chief Officer (Nav. ) 1 st Assistant Engineer Chief Officer (Cargo) 2 nd Engineer 2 nd Officer 4 th Engineer 3 rd Officer Junior Engineer Total 5 Return to AIMU Website

Composition of seafarers on board an LNG ship Ratings Navigation Department Engine Department Purser’s Office Boatswain Able Seaman Oiler No. 1 Oiler Chief Cook Second Cook Messman Able Seaman Ordinary Seaman Total 8 Oiler Fitter Total 6 Total 3 Return to AIMU Website

Composition of seafarers on board an LNG ship Summary Senior Officers (Management Level) Junior Officers (Operational Level) Total number of officers (Note) 1 st Assistant Engineer is a management level engineer in charge of cargo 6 4 10 Ratings Total composition 17 27 Return to AIMU Website

Estimated demand for officers for LNG ships on order Year Deliveries Newly Required Seafarers Total Officers* 2004(4 th Qtr) 2 delivered 156 52 (32) 2005 20 1, 560 520 (312) 2006 27 2, 106 702 (422) 2007 30 2, 340 780 (468) 2008 -2010 86 -101 6, 708 -7, 878 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) Return to AIMU Website

Shortage of qualified engineers with steam endorsement Return to AIMU Website

Estimated demand for turbine engineers Year Deliveries Newly required turbine engineers Officers 2004(4 th Qtr) 2 (delivered) 2005 20 26 260 Senior Officers 16 156 2007 2008 -2010 27 30 86 -101 351 390 1, 118 -1, 313 211 234 671 -788 Total 165 -180 2, 145 -2, 290 1, 287 -1, 374 Return to AIMU Website

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

General qualification for shipmaster, deck & engine departments Training Appropriate shore-based fire-fighting course Approved tanker familiarization course Suggested training scheme for personnel on LNG tankers At least 3 months approved seagoing service on tankers Tanker familiarization certificate 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 Return to AIMU Website

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

Shortage of LNG simulators and qualified instructors Return to AIMU Website

Consequences? • LNG ships sit idle, cargo doesn’t 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. Return to AIMU Website

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 • World’s maritime academies must start process of providing basic LNG training to their undergraduate students • SIGTTO and IAMU are developing model courses Return to AIMU Website

The Need Return to AIMU Website

Return to AIMU Website