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2. Introduction Main areas:
Exploration of Merchant Fleet and types of vessels in use.
Exploration of Nigeria’s requirements / goals.
Technical side of Ship Ownership.
3. Merchant Fleet: What is it?
A country can have 2 types of fleets:
Naval fleet – War Ships.
Merchant fleet – Cargo carrying ships.
Vessels owned or registered in the country.
The vessels which are used to transport the imports or exports of the country.
The vessels which are used to carry cabotage cargo (coastal shipping).
4. 2 distinct types of ships:
Dry cargo
E.g. Cement, Rice, Steel etc.
General cargo ships
Specialised ships.
Container Ships.
Liquid cargo
Crude, Petroleum Products, Vegetable Oils etc.
5. Dry Cargo Vessels
General Cargo Ships:
Can transport nearly any type of cargo in box shaped holds.
Specialised Cargo Ships.
Transportation of very heavy cargos: Iron Ore etc.
Transportation of very light cargos: Saw Dust.
Transportation of special cargo:
Container Ships.
6. General Cargo Ship: Capesize
7. General Cargo Ship: Panamax
8. General Cargo Ship: Handysize
9. Airbus A380 Transporter
10. Shore Crane Transporter
11. Container Ship:
12. Liquid – Tankers. Product / Chemical Tankers.
Vegoil Tankers.
LNG / LPG Tankers.
Crude Tankers.
13. Liquid – Tankers: Crude: ULCC
14. Liquid – Tankers: Crude: VLCC
15. Liquid – Tankers: Suezmax
16. Liquid – Tankers: Aframax
17. Liquid – Tankers: Panamax
18. Liquid – Tankers: Product Tanker
19. Liquid – Tankers: LNG
20. Liquid – Tankers: LPG
21. Fleet: Summary
Very important to know which trade you are looking at.
Important to have professional advice to ensure design is fit for purpose.
Within each type of ship, there are many many variations depending on the trade and region.
22. Explore Nigeria’s requirements.
Why develop a national fleet?
To carry imports or exports?
To reduce dependency on foreign ship owners?
To increase Nigeria’s presence on the world freight market?
To trade on world freight market or to service Nigerian market?
To increase Nigerian influence during negotiation of International Shipping Conventions.
Liquid or Dry?
Container Line?
Trade routes.
What type of vessels.
Any special requirements.
Transit to Hinterland.
23. Explore Nigeria’s trade:
Main Imports
Oil: 154’300 bbl/day (2005
Machinery
Chemicals
Manufactured Goods – Containers.
Food & Live Animals.
Main Exports.
Oil: 2.473 million bbl/day (2005)
Natural Gas.
Cocoa + Rubber – Minor.
24. Maritime Nations:
Historically certain nations have grown as Maritime Nations:
UK
Germany
USA
Japan
China
They have grown to support the imports and exports of the country.
These countries have traditionally supported shipbuilding through subsidies.
25. Ownership Structure
Owned by Nigerian companies.
Financing – assistance from state banks.
Owned by Nigerian governmental institutions.
Charter:
Bareboat
Time Charter
Voyage Charter.
NB – due to freight market, now is good time to buy.
26. To buy new or used?
New:
High purchase costs.
Modern design.
Low maintenance costs.
Good time to buy right now with markets at low level.
Used:
Cheaper.
Tried and tested design.
Higher maintenance costs.
Must not buy many vessels of same age at same time.
Could be on the same maintenance / dry dock cycle.
27. Technical side of Ship Owning.
Management.
Crewing.
Financing.
Classification / Flag.
Insurance.
Port Facilities.
28. Management.
Would Nigeria intend to manage the vessels from Nigeria or contract with Ship Management companies?
If management will be domestic, then need to ensure good solid pool of trained personnel.
Could be a very useful new source of jobs for the increasing number of intelligent trained young Nigerians.
29. Crewing.
Would the crews be Nigerian?
Does Nigeria currently have enough trained experienced crews for requirements?
Could again provide an interesting new career path for Nigeria’s youth.
30. Financing of new vessels.
Foreign or Domestic.
Domestic:
Close to market.
Historically not a huge amount of experience.
Increasing knowledge every day.
Foreign:
Many years of experience.
Mature markets.
Not next to Owners.
Could be difficult with today’s economic climate.
31. Classification of Vessels.
Nigerian Classification?
Would it be worth pursuing?
Or IACS or other.
External Class.
Known standard.
Accepted already in most parts of world.
32. Classification of Vessels - IACS
IACS: International Association of Classification Societies
Members
ABS - American Bureau of Shipping
BV - Bureau Veritas
CCS - China Classification Society
DNV - Det Norske Veritas
GL - Germanischer Lloyd
KR - Korean Register of Shipping
LR - Lloyd's Register
NK - (NKK) Nippon Kaiji Kyokai
RINA - Registro Italiano Navale
RS - Russian Maritime Register of Shipping
Associates
CRS - Croatian Register of Shipping
IRS - Indian Register of Shipping
33. Nigerian Flag?
Costs – Would have to be transparent.
Benefits.
Incentives given to Owners who flag vessels in Nigeria.
Flags of Convenience.
How they could benefit Nigerian Owners.
Maritime Nation Flags.
More expensive.
34. Insurance of Fleet.
Hull & Machinery Insurance (H&M)
Protection & Indemnity Insurance (P&I)
War Risk Insurance – particularly for trade to or from Nigeria.
35. Insurance of Fleet – H&M
H&M = Hull & Machinery.
Insurance taken by Owner of the vessel.
Covers the actual physical vessel itself.
36. Insurance of Fleet – P&I
Protection: To protect (also defend) Owners against claims from 3rd parties.
Indemnity: To cover Owners for costs paid in defending against claims.
FDD:
Freight Demurrage & Defence.
37. Insurance of Fleet – P&I - FDD
FDD:
Freight Demurrage & Defence.
This insurance provides cover for legal costs – and legal assistance – in relation to a wide range of disputes arising from the building, buying, selling, owning and operation of an entered vessel.
Also includes defending and pursuing demurrage claims.
38. Insurance of Fleet – War Risk.
Additional Premium charged to Vessels Owner if cargo is being shipped from/to or through areas classed as war risk areas.
Decided by Joint War Committee, London.
Decided on a regular basis and published.
Readily available from any reputable insurance broker.
39. Hull War Risks.
40. War Risk Areas Africa
Djibouti
Ivory Coast
Nigeria + All offshore installations
Somalia
Somalia + Yemen Transits
41. War Risk Areas South East Asia
Ambon
Balikpapan
Jakarta
North East Coast of Borneo
Philippines
Poso
Sri Lanka
Sumatera
Thailand
42. War Risk Areas
These areas are for guidance only.
For latest War Risk Areas please contact:
Richard Watts
shipping@hr-maritime.com
Cap-Marine Paris
www.cap-marine.com
43. Port: Facilities
In order to gain full benefit from fleet, the port facilities must be able to handle the vessels.
Container – Requires large container handling terminals.
LPG – Requires specialised terminals.
Dry or Liquid – Requires terminals / berths that can handle the type / size / restrictions of the vessels.
Vessels must comply with any vetting procedures in place.
44. Coordination with other bodies.
ARA – African Refinery Association.
Held conference on Ship Vetting for African refineries.
Very important to coordinate with them to ensure that any fleet expansion does not conflict with their aims.
Possibly appoint a point of contact to keep informed.
IMO regarding international regulations.
Other regional bodies that could be affected / concerned.
45. Summary
As we have seen there are many opportunities and possibilities in developing an indigenous merchant fleet.
The requirements must be clearly understood before embarking on any fleet expansion.
The International Community would be pleased to support in any way, however all decisions do of course have to be taken locally by Nigerians as it is Nigeria’s maritime future that is at stake.
46. Thank you for your time. Any questions?
