Rapid expansion in global shipbuilding and shipping activities, springing from sustained economic growth, is providing new opportunities and challenges for DNV. As always, quality is key to the continuation of DNV’s strong market growth and our efforts to further enhance maritime safety.
The growth in the world economy in 2007 led to international shipping reaching unprecedented heights. While the average annual growth of the world tonnage in previous years was less than 2.5%, it was more than 6% in 2007.
With growth like this, quality in all parts of the shipping industry is the key to ensuring safety at sea. This is in line with DNV’s focus on quality and technology throughout the shipping industry – including the people onboard and ashore. As a measure of this continued focus, we are proud to once again in 2007 be the classification society whose client portfolio has the best port state control performance.
2007 was a year in which society intensified the spotlight on the environment and in particular on global warming. Maritime transport is very efficient compared to other transport modes, but we are all expected to reduce our environmental impact. Shipping is no exception to this, and DNV has taken action to support the industry in its actions.
Focusing on the environment
Statistics show that the focus in recent years on discharges to sea, both accidental and operational, has produced positive results. The shipping industry now faces the challenge of reducing air emissions – and particularly CO2 emissions. Proactive steps to curb CO2 emissions and other greenhouse gases must now
be taken by the industry itself or we risk being overtaken by outside legislation.
In future newbuilding designs, it is feasible to reduce the energy consumption by 30–40%, for example by optimising the hull design, introducing new coating systems, installing heat recovery systems and improving the operational logistics, thereby allowing speeds to be reduced. More efficient transportation using larger vessels will also reduce the emissions per ton-mile.
There are also more options remaining for the existing fleet. By reducing energy consumption through slow steaming or switching to alternative fuels like distillates and gas, harmful emissions to air will be reduced. On the more long-term horizon, DNV Research’s joint industry project involving major fuel cell suppliers is expected to benefit ships in the future.
Cleaner future
Cleaner fuels like LNG are available and are being used. An example is the use of LNG to run ferries plying the west coast of Norway and LPG for supply ships in the North Sea. LNG/LPG helps reduce CO2, SOx and NOx emissions. The first of five new DNV-classed LNG-propulsion ferries, each of which will reduce CO2 emissions by 20% compared to similar traditional diesel ferries, was delivered in 2007.
DNV was the first classification society to conduct an inventory check to identify potentially hazardous materials onboard a vessel. In 2007, this service was used by various shipping companies, such as Odfjell, which had inventories prepared for its vessels. This service is expected to grow when the new IMO Convention on Ship Recycling is finalised in 2009. In line with its objective of safeguarding life, property and the environment, DNV has actively participated in developing this convention.
Photo: Klaveness
Holistic approach
In 2007, with a growth of 12%, DNV Petroleum Services (DNVPS) breached the one-million mark in its accumulated volume of tested fuel samples from contracted business.
DNVPS also intensified its involvement in marine fuel management consulting, which is based on the Total Fuel Management (TFM) model. This service delivers optimised fuel consumption efficiency, cost savings and improved environmental performance to ship operators.
A very important key to success in shipping is the quality of the people working onboard the ships. DNV is continuing its SeaSkill initiative, which defines competence requirements linked to specific trades and operations and certifies training that complies with these requirements. Major ship owners are now establishing their own competence management systems in accordance with the SeaSkill requirements.
In the Spring of 2007, the Maersk Training Centre in Denmark was the first recipient of the DNV SeaSkill award for excellent performance. Based on valuable co-operation between Maersk and DNV, the centre has attained a high standard of performance in all the functions of a training centre.
Record orders
2007 proved to be a successful year in terms of newbuilding orders, with 740 vessels (corresponding to almost 30 million gross tons) ordered to DNV class – an all-time high.
In particular, the high oil price created a boom market for offshore support and service vessels. Due to the state-of-the-art, costly equipment onboard, these are among the most advanced and expensive vessels in operation. Over the past two years, more than 300 new offshore supply vessels have been contracted to DNV class – maintaining our leading position with regard to all types of offshore support vessels.
DNV also holds a leading position when it comes to classifying tankers. Some 30% of the record high order book for oil tankers are to be classed by DNV. Most of the large crude oil tankers are still going to be built in Korea, but in 2007 more and larger oil tankers were ordered in China.
But 2007 will first of all be remembered as the ‘bulker year’. Every third ship and almost every second gross ton that was contracted to DNV class in 2007 was a bulk carrier. In addition, the size of the ships is increasing. In the summer, DNV announced it will class the world’s largest ore carriers, the four 388 000 dwt ships being built for Bergesen Worldwide by Bohai Shipyard in China.
Outlook
The trend to build larger and more advanced vessels of all types is expected to continue. In addition to the environmental and technical challenges this will bring, the shipping industry must prepare for continuous strong growth without compromising on quality.
According to reports from the shipbroker Clarkson, 2 500 new ships will be delivered in 2008, while the average number of annual deliveries over the past ten years has been 1 500. This has triggered a boom in demand for officers and seafarers, leading to increased personnel costs, steeper career paths and widespread “contract shopping”. The consequences are reduced experience, more fatigued crew and problems recruiting people. The result, as DNV has previously shared with the maritime press, is a doubling of serious navigational accidents (collisions, groundings and contact incidents) over the past five years.
The growth within the shipping industry will also initiate a fight for talent in related technical areas. Shipowners, shipyards, the supply industry and class societies will all face challenging times when it comes to attracting and retaining competent staff.
In 2007, DNV Maritime recruited some 650 new employees. Although our staff turnover rate is low, we have expanded our internal training programme to ensure we have qualified and well trained staff to meet future challenges.
