INFORMATION FROM DNV TO THE CONTAINER SHIP INDUSTRY

NO. 1 – APRIL 2003

Container Ship Update

Presenting
E.R. Schiffahrt
■ Ship seminar in Hamburg
■ Sharing DNV experience
■ Container securing
 Hamburg seminar

Taking the
initiative
Container ship
The class societies’ traditional
seminar in Hamburg
function has been to ensure
conformity with class and inter- “Fires in Containers” was highlighted at the DNV
national rules. We have been Container Ship Seminar. The severe consequences
doing this for more than a hun- of fires in containers and the fact that they are
dred years. Plan approval, sur-
difficult to extinguish have given rise to concern.
veys and certification will con-
tinue to be important in the
years to come, and there is still
room for improvement in the
quality of these services.
Should our clients expect
more than that?
The fire in the containers
onboard the CMA Djakarta
some years ago was the topic at
the recent container ship semi-
nar in Hamburg. Stefan Hein-
rich of Reederei Gebr. Winter
gave an account of the experi-
ence as seen by the ship owner.
Can we as class make a con-
structive contribution to pre-
venting these fires? Could cost-
effective initiatives developed
together with the industry be
the way forward? The answer to
both questions is that class can
definitely contribute to reduc- Mr. Jost Bergmann presented an Above: Participants at DNV’s
ing the likelihood of such overview of the many incidents over container ship seminar in Hamburg.
mishaps occurring. the past few years, with the Hanjin
Right: Firework containers caught fire
Our front page picture shows Pennsylvania fire in November 2002 on the Hanjin Pennsylvania off the coast
Jörg Langkabel in dialogue with as the latest. of Sri Lanka in November last year.
one of our clients, in this case Mr. Stefan Heinrich of Reederei
E.R. Schiffahrt. We need to do Gebr. Winter gave a very interesting
more of that. Listen to what is and thorough account of what hap-
on his agenda, and seek to do pened during the CMA Djakarta fire
something about it. some years back. It was made clear to
DNV’s aim is to promote reli- the audience that the fires often get out
able and cost effective container of control and may rage for weeks. The
ship operation. ability of the crew to put the fire out is tematic study of the various alternatives
limited without outside help. In fact, the within these categories in order to gath-
Knut A. Døhlie fires have a tendency to spread to the er know-how. An FSA approach to the
extent that the crew has to abandon problem may be the way forward.
ship. Dangerous cargoes, especially oxi- According to the FSA method, the effec-
dising agents, and the way they are tiveness of a solution is to be balanced
stowed and handled onboard seem to be against the cost of its implementation, in
critical factors. order to select the best alternative.
It is no surprise that the cost of the DNV has established a working group
fires is tremendous, due to the extensive looking into this problem. We hope to
repairs necessary and the high value of come up with a set of possible measures
the cargo. to discuss with the industry.
Possible measures were introduced
and discussed, focusing on the preven- A summary of the presentations made at the
tion, detection, separation and extinc- conference is available from DNV. Please contact
tion of fires. There is a need for a sys- [email protected]

2 CONTAINER SHIP UPDATE 1 2003

RINA conference

Design and
operation of
container
ships
DNV is sponsoring the Royal Institute
of Naval Architects’ container ship
conference to be held in London from
23–24 April 2003.

The container ship fleet has shown the fastest

growth of any ship type. Today, roughly 70% of
general cargo is already containerised, and this
figure is expected to grow to more than 90% by
2010.
Economies of scale have led to a rapid increase
in the size of all types of vessels. The trend
towards larger container ships presents unique
challenges for owners, designers, operators, ports
and classification societies. To meet demands for
this new generation of container ships, naval
architects and operators are constantly striving for
innovation.
With this in mind DNV will be presenting a
paper on “Strength Assessment of Ultra-large
Container Carriers by Direct Load Calculation”.
The paper focuses on the fact that the yards are
now looking ahead to sizes of up to 10,000 TEU
and even beyond, and on all the numerous chal-
lenges this represents for designers. The paper is
the result of a Joint Development Project between
DSME and DNV regarding ultra large container
carriers of 9,200 TEU.
Please visit the RINA web page –
www.rina.org.uk – to register for the conference.

For more information, please contact

Lisbeth Aamodt, [email protected]

CONTAINER SHIP UPDATE 1 2003 3

 Customer presentation

DNV Container customer presentation:

E.R. Schiffahrt
E.R. Schiffahrt is one of the largest charter owners of container ships worldwide, operating 54 vessels –
including 18 newbuildings on order – with a capacity of around 237,000 TEU. We talked to the com-
pany’s Chief Operating Officer, Albert Schumacher, about future scenarios.

“There is scarce availability of large container affected by any regional conflicts, apart from a
ships and that is why we see that most ships cur- few additional war premiums for some areas
rently on order are in the Panamax or post- like the Suez Canal. “A USD70 million ship
Panamax category today. In terms of TEU, with a USD100 million cargo is a huge value to
almost 80% of the worldwide newbuilding operate. Looking back just some six to seven
orders are for vessels in excess of 4,000 TEU. years, such cargo values were quite high. To us,
The big operators are adopting this trend for mastering logistics is the differentiator between
strategic reasons in order to optimise their trad- the success and failure of a container operator.”
ing. Since container freight rates have fallen We asked Schumacher where classification
dramatically during 2001 and 2002 and may not societies can make a difference: “Specifically,
regain their previous heights, operators need to the new ISPS Code is an area where I will
further improve the efficiency of sea transport. expect class to provide input and advice on
Fortunately, we have seen rates increasing since operational matters in order for us to comply
the beginning of this year. Maybe, some years with this code. This includes advice on our
into the future, we will see the 12,000 TEU con- security officers and information handling as
tainer ship,” says Schumacher. well as the training of our crews as regards
When asked about any technological obsta- ISPS. We will have to extend our quality man-
cles involved in building such large ships, Schu- agement system to comply with the new code.
macher points out that yes, there may be a need “Another area where I expect to receive
Albert Schumacher, Chief Operating to consider two-engines, two-screw ships, and considerable advice and input from class is on
Officer, E.R. Schiffahrt. there may be a need to rethink the layout of ship safety and design, specifically in connec-
container ports in order to accommodate wider tion with heavy weather damages and how to
container ships so that ships could be posi- advise the masters and officers on ship opera-
tioned centrally, with cranes gaining access tions in the actual situations which can arise.
from both sides. Apart from that, Schumacher It is important to us that class can offer a good
is confident any technological obstacles can be tool here.”
overcome.
E.R. Schiffahrt’s trade can best be described For more information, please contact
as long-term time charters that are not very Magne A. Røe, [email protected]

APL Denmark arriving Bremerhaven.

4 CONTAINER SHIP UPDATE 1 2003

Container securing

Rapid technical developments

in container securing
The increasing size of container ships as well as the introduction of new require-
ments have led to rapid technical development in the field of container securing.

Over the past few years DNV has developed new analysis methods to
account for these developments that have not yet been included in the
published guidelines.
Due to this, the Classification Note for container securing (CN 32.2)
has been completely revised to include the recent developments. It is cur-
rently the subject of discussions and will be published shortly. Some of the
changes that will be made are listed below.
The changes can be summarised under the following headings: calcula-
tion methods, guidance to specialised stowage and acceptance criteria.

Calculation methods
The Classification Note will contain the formula-based calculation method as
given in the existing class note as well as a detailed description of the new
calculation method utilised in the “NAUTICUS Container securing” soft-
ware. Although these two analysis methods are considered equivalent, the
Schematic layout of new Classification Note 32.2.
new method is more general and can be used for a wider range of
stowage arrangements.
In addition to these calculation methods, a calculation method for
mixed stowage is given (with and without over stow). This calculation
method is based on detailed FE-analysis as described in the last issue of
Container Ship Update.

Specialised stowage
For specialised stowage types, additional guidance is required in order to
perform the analysis and some stowage arrangements cannot be analysed
using standardised analysis methods. To cope with these problems, DNV
has introduced a new chapter that provides guidance for stowage types
such as the following:
• Mixed stowage (20’ containers in 40’ cellguides and 40’ containers in
45’ cellguides)
• Lashing to lashing bridge
• Vertical lashings
• Platform containers
• Block stowage

Acceptance criteria
Some minor changes to the acceptance criteria will be introduced in the
new Classification Note.
In order to be aligned with the industry standard, the allowable forces
on the container box have been slightly revised to allow forces in excess
of the ISO test criteria.
In addition, a list of guidance values for allowable forces on lashing
equipment has been added.
Through this revision we aim to provide the most updated analysis
methods available to the public. We hope this will be of use to all our
clients.

For more information, please contact

Anders Swerke Gustafson, [email protected] Acceptance criteria for container box.

CONTAINER SHIP UPDATE 1 2003 5

 Container EXPRESS

Container EXPRESS:
Sharing DNV experience
Principal Surveyor Helge Johannessen is in charge of the Contain-
er EXPRESS training programme, and has been a member of the
development team. He has a long and broad experience in DNV,
with a strong focus on ships in operation.
Container Ship UPDATE has asked him some questions about his
experience with the Container EXPRESS training and develop-
ment programme.

What is Container EXPRESS should “be in control” we are really telling them
as you see it? to be proactive. We believe this is a cost-effective
When we introduced it some years ago, we saw policy.
it only as an alternative survey arrangement for
hull, much like the Planned Maintenance Sys- How is this risk management scheme
tem (PMS) for machinery. The owner’s staff implemented?
could do part of the job which DNV had done The owner needs to have a planned inspection
before. and maintenance system (PIMS) in place, and
must ensure that the people performing the
What has changed? inspections know what they are doing. DNV can
Now we see it as much more than that. We are assist with both.
helping the owners to look after their ships by
sharing our experience. The people that oper- How can you assist?
ate the ship will to a large extent decide the For the PIMS part, we have a model procedure
ship’s quality over the years. Class has some for setting up the system, including a flow chart
influence, but it is the owner’s policy and how with descriptive notes and advice on points to
the owner decides to do its job that really deter- be considered. Model modules are included,
mines the condition of the ship. with suggestions for inventory lists, time inter-
vals, acceptance criteria and so on. A full
Has it not always been like that? fledged model manual is also there. All of this
Yes, but with the advent of the ISM code, it has is on a CD which is used in consultation with
been explicitly stated in Chapter 10 that inspec- the DNV expert giving advice.
tions are to be held at appropriate intervals,
records are to be kept and corrective actions What about training?
are to be taken. So now it has become more Our training course has been running for some
like a requirement. years now. It consists of a two-day course that we
give at the owner’s premises. It follows the
How can Container EXPRESS process of inspecting ships from start to finish,
help the owner? focusing on the preparations for and execution
You could say that ship operation is a process of and documentation of inspections. The most
continuous risk management. Controlling the popular parts deal with critical areas, discussing
risk of hull and structural breakdowns is one practical examples of coating and structure
part of the owner’s total risk management. The problems.
idea is that potential problems should be dis-
covered as early as possible in order to avoid Crews change and new people are
unexpected incidents. That allows time and employed. How can you reach them all?
opportunity to plan remedial actions. If you This is perhaps the biggest challenge and one
leave it up to class to discover your problems, we are coping with in two ways. We have given
then conditions of class may be the result. We courses at company training centres where a
encourage owners to be pro-active rather than great number of people can be reached. How-
to be “policed” during the reactive phase. So ever, we see that we have to cater for individual
when we say in our presentation that companies training needs. Together with a leading special-

6 CONTAINER SHIP UPDATE 1 2003

 Principal Surveyor Helge
Johannessen answers
questions about DNV’s
Container EXPRESS training
programme.

ist in this field, we are therefore in the process ance criteria. This job can only be done by a
of creating a computer-based training module qualified DNV surveyor. So the crew cannot
(CBT) which we expect to be ready in the late conduct surveys on behalf of DNV.
summer of 2003.
Do the people onboard have
Are you giving up the right to survey any acceptance criteria to work
compartments on DNV classed ships? according to?
No, we are not. The regime is described in Yes, the PIMS must include the owner’s accept-
detail in our Rules. We have the option of using ance criteria. We share most of the DNV criteria
the owner’s inspection results as the basis for with the owner, so that the owner’s criteria can
our class evaluation and this should be the rule “kick in” before class, leaving the owner time to
rather than the exception. It is, however, sub- plan and act without coming into conflict with
ject to defined conditions. As a result of this, we class. It can be quite difficult for the owner to
find that ballast tanks are being inspected and find appropriate criteria, but we see that the
documented once a year according to a system companies that put in an effort get their sys-
we know. Photos are available. The alternative is tems more readily accepted by the crew.
to survey them once every five years. And in dry
dock, we may survey any compartment. Will you introduce this system
for other ship types?
You distinguish between surveys Any such system must be suitable for the ship
and inspections, why? type it is to be used on. Enhanced survey ships
In our terminology, “surveys” can only be done require a different kind of attention than con-
by a qualified DNV surveyor. “Inspection” tainer ships, but the experience gained from
means examining and testing compartments Container EXPRESS may also useful for these
and discovering defects. This is something ships. The true value of the system is the risk
which any inspector can do well, depending on management part of “being in control”.
his qualifications. This is why we consider train- That will always be valid for all ship types.
ing to be so important. A surveyor will do the
same, but, in addition, will assess and reach a For more information, please contact
conclusion in accordance with the DNV accept- Knut A. Døhlie, [email protected]

CONTAINER SHIP UPDATE 1 2003 7

Container market highlights in the Spring of 2003

Market growth 2002 faster

than expected
Recently collected and updat- Steep rise in charter rates Outlook
ed handling statistics of major The unforeseen dynamic increase in The current contracts and charter
demand in 2002 at least partly explains options point at a further recovery of the
container ports around the
the early and steep rise in charter rates charter market. Despite the relatively
world indicate a steep growth observed since January last year. The pessimistic economic scenarios, the
in port activities and hence recovery of the charter market was a industry expects steep further container
container traffic in 2002. The major topic in the last Container Ship market growth and this obviously has to
Update. Apart from a brief downturn in be supported by adequate fleet capacity.
top 20 ports reached average November/December, this trend has
growth rates of more than continued and even gained momentum
14% and the ten largest ports in 2003. Meanwhile the market has fully www.isl.org
as shown in the table achieved compensated the small losses of the last
quarter 2002 and is still on a steep
even higher increases. upward path. Since last year’s low of
January, the overall Howe Robinson
During the past years, the general activi- market index (HRCI) has risen by
ty level of the top 10 or 20 ports has almost 60%, more than a quarter of
been very good indicators of the mar- this in February alone of this year.
ket’s overall global development. These But the current level is still signifi-
ports represent 35% or almost 50% cantly (27%) below the peak
respectively of the global container-port reached during the summer of
volume. Even if it is assumed that the 2000.
actual growth rate on a global basis is
only around 10%, this would be much Order records
more than was expected based on the The strong order activity during the
economic trends and forecasts for inter- last month must also be seen in the
national trade. The initial estimates for context of these very positive mar-
2002 oscillated between 6% and 7%. ket indicators. Again, in Janu-
The significantly over proportionate ary and February, a remarkable
growth of the Chinese ports is remark- number of container vessels
able. On average, the Chinese container was ordered, including many of
ports among the top 20 achieved an the Post-Panamax- and Super-
annual growth rate of more than 20%, Post-Panamax-Class. Even at
while the Shenzen ports, with a growth 1 January 11 ships of 8,000
rate of more than 50% clearly took mar- TEU and more were to be
ket shares from Hong Kong, which only found on the order book, and
had a growth rate of about 6%. These this number has increased
figures show that China’s strong export during the past two months.
Print: GAN Grafisk
orientation and the outsourcing of pro- Ships for approximately
duction processes to China and other 170,000 TEU, the highest vol-
Asian countries is a very important factor ume ever for one single month,
for demand in container shipping. were ordered in February.
Design: DNVE Graphic Communications 0304-017

DNV (Det Norske Veritas) Container Ship Update Please direct any enquiries to DNV
is an independent, autonomous is a newsletter published by your nearest DNV station, or Head Office Norway
Foundation working to safe- Det Norske Veritas, Container Ship Update e-mail: NO-1322 Høvik, Norway
guard life, property and the Business Area Maritime [email protected] Tel: +47 67 57 99 00
environment. Industries. Fax: +47 67 57 99 11
Editorial committee:
DNV comprises 300 offices in It is distributed to Knut A. Døhlie Updated list of all regional
100 countries, with 5,500 DNV customers and stations Magne A. Røe offices at DNV’s web site:
2,500/04-2003

employees. worldwide. Lisbeth Aamodt www.dnv.com

8 CONTAINER SHIP UPDATE 1 2003