SEASCAPE IS PUBLISHED BY AET

FOR ITS GLOBAL SEA STAFF COMMUNITY

ISSUE 11 2011

Dear
colleagues
Times continue to be tough for
tanker operators as aresult of
continued

AT THE HELM...

down

ward

pressure on freight rates

coupled with higher operating

costs. Profits are disappearing and everyone is tightening their

belts in anticipation of further difficult months. Indeed, it could be
years before we emerge from these trying times and it will be a
case of survival of the fittest.
It is my belief, however, that hard times provide fertile ground
for innovation, partnership and operational excellence. Now is
the time for us to look at where we can optimise our operation
and seek out efficiencies, while all the time keeping sight of ou
safety agenda. Our ability to leverage on the AET values to
ensure peak operational performance is what will set us apart
from our competitors.
Work together to identify best practice and share ideas with
your colleagues. Be innovative in your approach and creative in
your efforts to improve efficiency and reduce costs. And always
maintain a focus on excellence and safety.We are all responsible
for putting in the hard work and dedication to ensure that AET
not only survives the downturn, but also returns to profit before the
competition with a commercial advantage that will enable us to
become our customers first choice.It may be tough, but at AET we
are resilient. We have the skills and the commitment to emerge
from this downturn fighting fit.
Already we are seeing the fruits of our hard work in the tangible

Kathy Klausner, wife of board director Robert Klausner,

names Lightering Support Vessel, AET Innovator. See P3 for more details

vetting and contract successes we have been able to realise. The

recent successful ConocoPhillips Tanker Management and Self

With more success stories like these we will overcome the current

continue to focus on the training and development of our sea staff,

Assessment (TMSA) review of our Shipmanagement function in

downturn.

as well as investing in our recruitment activities to ensure we

Houston is an excellent example, and provided valuable

I ask you all to take a long hard look at your daily duties

realisation of the reorganisation of our fleet into vessel teams under

onboard and to think about where you can make improvements

the Atlas 2 restructure.

that will contribute to overall efficiency gains no contribution is

raise the bar further and I look forward to your

too small.

ongoing efforts to achieve optimum efficiency.

The fact that we are now certified to undertake longterm

continue to be the best at sea.

Thank you all for your continued support. Now is the time to

charters with other important customers such as BP, Exxon and

I would also like to reassure you that, while AET will do

Shell is another example, as is the ability to win lucrative new

everything it can to rein in costs and squeeze further efficiencies

Safe sailing!

contracts in the face of stiff competition, such as the shuttle tankers

out of the business, we will never do so at the expense of safety,

Abdul Rahim Abdul Rahman

project in Brazil & the MCV (hybrid FPSO) project in the US Gulf.

nor at the expense of our future growth. In line with that, we will

GVP/ED Shipmanagement, AET

PLUS

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AET INNOVATOR
SETS THE
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HSSE - ELECTRONIC
NAVIGATION CHARTS

FAMILIES AT SEA
NAVIGATION

PAGE 3

PAGE 4

PAGE 7

Successful delivery of Eagle Texas

Congratulations to Captain Abel Musugunthan,

Eagle Texas became the latest Aframax tanker

Chief Engineer Akortsu John Kwasi Mensa and

to be successfully delivered to AET on 9

the delivery crew of Eagle Texas. May you

The year in review

September 2011 in Japan the last of eight

undertake many safe and happy voyages

All ships should now have received copies of the

vessels to be built at the Tsuneishi Tadotsu

together.

latest edition of our annual report, Impressions of

shipyard.

AET in 2010/2011. These are designed for

Following delivery, Eagle Texas will be

crew reading but also for the interest of visiting

converted to a modular capture vessel to fulfil

parties to our ships. For anyone who has not yet

the conditions of our 20-year contract with the

had the opportunity to see a copy of Impressions,

Marine Well Containment Company in the US

you can also find it online at

Gulf. It was, therefore, fitting that the guests of

http://www.aet-tankers.com/flickbook/.

honour at the naming ceremony were Marty

Massey, CEO of MWCC, and his wife
Pamela.
Thumbs up from CP

the Houston team since the reorganisation of our

A customer management review of AETs

Shipmanagement function and it was successfully

Shipmanagement function in Houston, Texas was

completed with no observations.

conducted by oil major ConocoPhillips in

September.

The customer representatives commended AET

on the robust structure of our vessel teams in

The management review was based on the Oil

Houston and were also highly impressed with the

Companies International Marine Forums (OCIMF)

implementation of our safety management system

Tanker Management and Self Assessment (TMSA)

across the Atlantic teams within the span of less

guidelines. This was the first customer review of

than one year.

AET digs deep

A big thank you to everybody who contributed to
AETs appeal for donations in aid of those
impacted by the earthquake that devastated
northeast Japan earlier this year. Together we
raised a fantastic total of US$38,000 the bulk
of which came from our sea staff.
AET business partner Mitsui presented the
donation on our behalf to Japan Platform (JPF),
which expressed heartfelt appreciation for the
kindness and thoughtfulness of AET employees.
JPF is providing emergency assistance for the
victims of the earthquake and tsunami that
occurred on 11 March.

SeaRiver praise for Eagle Louisiana

Shipmanagement colleagues in Houston to

Well done to the crew of Aframax newbuild

provide positive feedback on his visit, reserving

Eagle Louisiana who made a big impression

great praise for the new ship and all of her crew

recently on Joel Louque, Pollution Safety Advisor

in terms of technical operations and safety.

with one of AET's major customers, SeaRiver. Mr

Louque boarded Eagle Louisiana at the Port of
Chalmette, Louisiana on the vessel's inaugural
voyage to the state.
Whilst on board, Mr Louque presented a
Louisiana state flag to Captain Noel Netto,
Master of the vessel for hanging inside the ship.
Subsequently, he took the trouble to phone our

World Maritime Day hampers

Recognising that seafarers are away from their
families and loved ones for much of the year,
Singapore Port Authority celebrated World
Maritime Day by distributing hampers to crew
members whose vessels were in port at that
time. AET was delighted to participate and the
picture shows Capt Budhraja receiving a
hamper at the ceremony.
AET in Uruguay first
Eagle Lightering Services, a joint venture

A team of AET mooring masters consisting of

company between AET and Christophersen SA,

Captain Ron Wood, Captain Tony Landi and

performed the first offshore lightering support job

Captain Sproekle accompanied representatives

in Uruguay in July, between the dynamic

from the customer, BG, to oversee the

positioning Suezmax Windsor Knutsen and the

lightering support. A review of the lightering

conventional Suezmax Max Jacob.

operation was later held at BGs headquarters

This lightering support job is the culmination of

eight months work to put together the joint
venture in Uruguay.

page 2 seascape Issue 11 2011

in Houston and the operation was deemed to

be extremely successful.

VIEW FROM THE TOP

Dear

To enable this we are implementing a focused

whether you can defer a spending decision.

business with big customers such as BP,

If something is just a nice to have, rather than a

ConocoPhillips, Exxon and Shell.

must have, do without. And if you have ideas for

These achievements reflect our growing brand

how we can optimise costs take them to your

presence, the valuable customer partnerships we

colleagues

strategy to manage the downturn, which will

master, chief engineer, or your colleagues ashore.

have built and the work you our doing to ensure

Along with all

include the rationalisation and renewal of our fleet

We all need to help change behaviour.

operational safety and excellence.

tanker owners, AET

and the strengthening of our business portfolio. We

The good news is that we are in a relatively

You play a central role in our success.

is entrenched in a

will need to raise the performance bar of our

good position. Although tanker operators will lose

By continuing to focus on the provision of safe,

organisation and continue to invest in our people,

money in the current market, AET is outperforming

responsible and reliable transportation services, as

ensuring we have the right skills to bring us through

a number of its competitors. Commercially, we are

well as helping manage our costs, your contribution

these tough times and emerge stronger than our

entering into some groundbreaking contracts with

to our future is invaluable.

competitors.

new and existing customers the Marine Well

I thank you all for your continued support and

prolonged market
downturn

which

industry analysts are not

expecting to

ease

before 2013. Although this means we will record

Strong cost management today is of critical

Containment Company contract being one very

look forward to your ongoing contribution during

an operating loss this year, our focus is now on

importance to our longer term prospects and we

good example, as well as our growing business in

these difficult times. When we all pull together and

ensuring that we are among the first tanker operators

need to reduce costs holistically across the

specialist areas such as the dynamic positioning

act with a common purpose, we have the power to

to return to profit, and that when we do, we are in

business.

sector, and in emerging markets such as Brazil and

create a very bright future for AET.

optimum shape to take advantage of new

Everyone at AET can play their role in cost

opportunities that bring us closer to our long term

reduction and optimisation. Unless there is a critical

We are also benefitting from recent acceptance

vision.

business need for something, always ask yourself

by the oil majors, which improves our longterm

China.
Hor Weng Yew
President & CEO

INTRODUCING CORPORATE HSSE

Dear colleagues,
The safety of people, the community and the
environment is a priority for all responsible
companies. AET has taken the first steps to
build a global HSSE culture across the entire
organisation not only at sea but also ashore with the establishment
of a Corporate HSSE capability.
The new function, under my leadership, will oversee the activities of

AET Innovator sets the standard

for US Gulf lightering

Fleet HSSE, Shore HSSE and Offshore HSSE to ensure a holistic

approach, and will ensure that health, safety, security and the
environment are built into AETs business at a strategic level.

Cementing our leadership position in the US Gulf

years ago, AET decided to introduce a major

Our objectives will be to reduce overall risk, comply with international

lightering sector, AET took delivery of the worlds first

improvement to the industry and began work on a

regulations and create a safe and efficient operating environment for all

purpose-built lightering support vessel (LSV) in

new fleet of specialist lightering support vessels.

Galveston on 6 October.

These new ships provide a more stable and effective

AET employees.
Capt Amit Pal continues to lead our Fleet HSSE activities, while Cody

Designed by Elliott Bay Design Group of Seattle

working platform for our lightering crews and are

and built by Leevac Industries in Louisiana, AET

more manoeuvrable and able to handle less

Wilson is responsible for Shore HSSE, and Ben Cobb for Offshore

Innovator was formally named at AET Offshore

favourable weather conditions.

HSSE.

Services headquarters by Kathy Klausner, wife of

This means that our lightering operations will

I look forward to providing you with regular updates on our work and

AET board director Robert F Klausner, in front of AET

become safer, more efficient and more flexible

management, customers and business partners from

which is good for our crews and good for our

achievements via future Seascape columns. In the meantime, I urge you

around the world.

customers.

AET Innovator has been designed and built to

Presiding over the naming ceremony for AET

streamline ship-to-ship transfers in the US Gulf and is

Innovator, AET President & CEO, Hor Weng Yew

the first of four sister craft to be built and delivered

said: We strive to provide the safest and most

into the AET Offshore fleet.

Leading the project for AET, General Manager of

efficient lightering activities possible. That is why we

took the decision to invest in this new fleet of purpose-

all to pay special attention to your regular HSSE column on page 4 of

this issue.
Think safe, act safe, be safe!
Gerald Ong

built support vessels. They represent a step-change

Global Head, Corporate HSSE and Commercial Director,

Lightering has been conducted in the US Gulf

in how lightering is conducted in this region and will

Aframax Pacific

since the 1980s but, until now, support has been

further our aim of delivering high quality, safe transfers

AET

provided by converted offshore supply vessels. Three

with minimal impact on the natural environment.

AET Offshore Services, Bill Merritt said:

Issue 11 2011 seascape page 3

PERSONAL PROTECTIVE
EQUIPMENT (PPE)
PPE - Lets get it right

comply with PPE requirements. Often this can be

Our life is irreplaceable and it is our responsibility

achieved simply by attending the work areas

to protect ourselves by wearing the correct

wearing the right PPE and guiding team members

personal protective equipment (PPE) for each and

in the right direction.

every task we carry-out onboard ship. And, as

For consistency, AET has identified a common

part of a team, it is also important that we take

set of PPE which means that all personal

care of our colleagues. We all have a duty to

protective equipment found onboard each ship

challenge any crew member, irrespective of rank,

will be identical. This ensures quality levels are

who we find working without the correct PPE. We

maintained and that we are familiar with all our

must do this sensitively and help him or her

personal safety items on each ship we sail on.

understand the risks involved.

PPE protects us from sustaining injuries or, in

Personal safety is not a slogan - it is

both a commitment and a way of life.

serious cases, limits the severity of our injuries. It

does not eliminate hazards nor does it prevent an

Captain Tamal Saha Ray

accident from occurring. But wearing the correct

HSSE Q & A

PPE demonstrates that we have adopted a

AET Shipmanagement (Singapore)

responsible attitude towards safety and our safety

culture. It also shows that we are aware of

ELECTRONIC
NAVIGATION CHARTS (ENC)

potential hazards and are able to take effective

measures to prevent an accident from occurring.
Getting it right
How do we ensure that we are using the right
PPE? For routine tasks we should refer to the PPE

Electronic navigation

Matrix provided in our Safety Management

Generations of seafarers have used paper charts as their primary

means of navigation for many years but technology is constantly
improving. RADAR, ARPA, echo sounders, speed logs, doppler logs

System and posted around the ship. For nonroutine activities, additional PPE is identified
during the detailed risk assessment that is always
carried out prior to undertaking these higher-risk
tasks. The additional PPE requirement is then

and, more recently, global positioning systems (GPS) have all advanced

shared with the relevant teams at the regular

and improved marine navigation. Digital charts are now beginning to

toolbox meeting.

make their mark onboard ships, particularly after they were formally

should actively encourage the entire team to

recognised by the International Maritime Organization (IMO).

From 1 July 2012, it will be mandatory for

Way before IMO regulated ENC, AET had

all ships built on or after this date to be

in 2004 installed electronic charts through

equipped with electronic navigation charts

CMAP and although the transition deadline

(ENC). All existing ships (and that applies

is not until 2015, we have already begun

to the AET fleet) must equip themselves with

the process of upgrading these electronic

ENC by 1 July 2015 or at the first survey

charts

after that date.

to

ENC

onboard

AET

ships.

In September, Bunga Kelana 4 and

Electronic charts are digital and contain

Eagle Baltimore were fitted with ENC and

much more navigational information than

the target is for the entire fleet to have ENC

could ever be contained on a paper

installed by July 2012. Teaming up with HR

version.

add

Sea, we will ensure that all our colleagues

significantly to the safety of all vessels that

They

will,

therefore,

at sea will have undergone sufficient

use them. The charts can accept feeds from

training to become proficient in this new

other bridge equipment such as GPS,

equipment.

RADAR, ARPA and the gyro compass to

deliver

comprehensive

navigational

Ultimately, it is our intention to run

paperless vessels and we will work towards

picture to the bridge team. This will help

that goal over the coming years.

reduce human error and the likelihood of a

Captain Manu Narayan

collision or grounding whilst improving

Navigation Superintendent

position fixing.

AET Shipmanagement (Singapore)

page 4 seascape Issue 11 2011

Leading by example, senior team members

Always wear the correct PPE

IN THE HOT SEAT

must abide if we wish to trade our ships in international waters.

Modern shipping requires tighter sailing

AET is also certified with the voluntary ISO 9001:2000 (quality

schedules and faster port turnarounds does this

management)

and

ISO

14001:2004

(environmental

compromise safety?

management) systems. I remain committed to ensure sound

As with any industry, if we ask people to conduct multiple

management system principles are embedded within the

activities in a pressured environment the likelihood of something

company. I view HSSE as critical to our success and long-term

going wrong is increased. It is important to prepare for these

sustainability and it is also my responsibility to ensure

activities and learn from previous errors. For example, if a crew

continuous improvement in our safety performance. In addition,

is taking a ship into dry-dock, we discuss the potential risks and

I am charged with minimising the risk of incidents or injury

hazards with them so that they are fully prepared to deal with all

aboard all of our ships.

eventualities.
It is probably true to say that most incidents are caused by human

Seascape interviews
Captain Muhammad Assuad Ahmad,
Senior Manager, Safety & Quality,
HSSE Department

How are you qualified for the job?

error and so we spend a lot of time with our sea staff to ensure

I am a master mariner with many years experience of

that team-working and communication is optimised. We also

commanding tankers. This enables me to understand fully the

monitor how individuals react during the more challenging

pressures and requirements of shipboard life and operations. I

activities such as navigating in confined waters or conducting

am also a qualified auditor for the ISM, ISPS and ISO codes.

cargo operations.

As our fleet continues to grow, how do you

Officers are being promoted earlier

ensure we remain both compliant and safe?

and with less time in the job is this safe?

We do this in a number of ways. A recent activity has been the

Well, it is certainly a fact that officers are being promoted at a

independent review of our safety culture conducted by Lloyds

younger age in all shipping companies, which inevitably means

Register Human Engineering. This encouraged us to take a

they have less experience than their counterparts of 20 or so years

renewed and in-depth look at our operations and has

ago. On the other hand, todays seafarer is much more technically

identified a number of areas and initiatives that we are

qualified than they were in those days. We need to recognise this

currently following through. I am also a great believer in

and ensure that our officers are given the support they require.

focusing on the key problem areas and we have recently

At AET, we do this through a programme of mentoring where

Tell us about your role

run a series of safety campaigns concentrating on reducing

senior ships masters guide less experienced officers through the

in AET

hand and finger injuries and improving navigation

more challenging aspects of their job. We always make a point

Its my job to ensure that AET

procedures. And, as you know, we have recently

of having regular dialogue with our aspiring officers through sea

remains, at all times, compliant

implemented a safety champion programme across the

staff conferences, visits to training institutions, office briefings and

with the International Safety

fleet to help maintain standards. We are convinced that

many visits to the ships. Our robust training regime with support

Management Code (ISM)

the safety champion participants will become fleet

from our experienced training superintendents ensures our young

and the International Ship and

ambassadors to continuously educate and influence the

officers are given all the support they require to excel in their

Port Facility Security Code (ISPS).

mindset of our junior officers towards an enhanced safety

chosen career.

Both of these codes are international regulations by which we

10 MINS

culture.

are more hectic and include lightering,

of life. If there are youngsters out there who feel

of your first ship?

bunkering, storing, crew changes, audits and

they can adapt to the ways of the sea, enjoy time

Apprehensive! Before I joined, I met the various

inspection. Each ship is different.

spent onboard, maintain a cheerful disposition in

How did you feel when you took command

with Capt Lanse Purushotam, Master,

Eagle Birmingham - an AET Aframax
tanker on lightering duties in the US Gulf.

expected of me, but what really helped was a

What is the most challenging aspect

pressures relevant to their rank then I would

senior Master from the safety department telling

of your job?

recommend that they sign up.

me how to react calmly in an emergency and not

Maintenance, particularly keeping the rust at bay,

At sea, kids learn to be honest, diligent,

How long have you worked for AET?

to let emotion cloud my judgement. I follow his

is an on-going battle. I have seen many ships age

respectful and to understand other cultures and

I joined NOL in 1995 which became AET when

advice to this day.

before my eyes (as I have aged, I suppose!)

authority They broaden their horizons and earn

the face of adversity and learn how to absorb the

heads of departments who told me what was

Together with my crew, we work hard to keep

decent money early in their career which could

so I can say Ive worked for AET for 16 years.

How does commanding a lightering

our ship in a highly maintained state 365 days of

open up other avenues, not necessarily in the

Ive been in command since 1998.

Aframax differ from commanding a vessel

the year.

same business.

the company was bought by MISC in 2003 and

engaged on normal passage duties?

Ive spent over 80% of my time in command of

What do you enjoy most about being at sea?

Can you ever relax at sea?

lightering vessels and Ive learned that there is no

Not long ago I would had said sitting in a

Yes, before retiring for the day is a good time to

such thing as a regular day! There are frequent

crowded bar in a far away land, buying a

indulge in other interests. Sometimes I read but

loading and discharge activities and many sea

stranger a glass of beer and passing the time of

currently Im learning the intricacies of still-life

and river passages, generally under pilotage and

day. But today I say simplicity and an honest way

sketching.

in confined and crowded waters. Turnarounds

of life.
What was the last book you read?

average 24 hours, and within that we also have

to comply with STCW rest-hour requirements. Life

Would you recommend a life at sea to

No Full Stops in India by Mark Tully. Mark is a

onboard a long-haul VLCC is very different and

todays youngsters?

BBC reporter and has lived in India for many

routine jobs and leisure activities can be easily

I have always maintained that sailing in the

years, this book charts his life and experiences in

planned when on passage. But activities in port

merchant marine is more than a job - it is a way

this wonderful country.

Issue 11 2011 seascape page 5

What constitutes bribery under the Act?

The Act includes everything from the most
obvious and excessive examples such as major
payment incentives for contract gains, but also
what many consider to be part of day-to-day
business facilitation. Even a minor and seemingly
innocent gesture intended to oil the wheels of
everyday

business

operations

could

be

considered a bribe.
What should I do if I think somebody is asking
me to participate in bribery?
You should report the incident to the designated

UK BRIBERY ACT
- HOW IT AFFECTS YOU AT SEA

jeopardises AETs business with its customers?

In a nutshell, what is the purpose of the UK

in the UK. In addition, any company

Again, you should report the incident back to the

Bribery Act?

incorporated in the UK or which is not

designated contact person at AET.

The purpose of the UK Bribery Act is to prevent

incorporated in the UK but which carries on a

The individual or company who may have

bribery in any situation in which UK corporations

business or part of a business in the UK, can be

ultimately benefited from the business you lost

and anyone related to the UK might be involved.

liable if any person associated with it (including

because they were willing to pay a bribe may

It brings together a lot of pre-existing legislation

any employee, agent or subsidiary) is involved in

also be reportable under the Act, which means,

under one umbrella for the purposes of clarity, as

bribery, wherever that bribery takes place. As the

commercially, AET may be able to protect itself.

well as containing a number of extensions to

AET group includes a UK incorporated company

previous rules.

Philip Riches is a barrister at

London's Stone Chambers. He has
been advising AETs legal department
on the UK Bribery Act 2011, which has
been described as one of the most far
reaching pieces of new legislation in
recent times. In this edition of
Seascape,
Mr
Riches
answers
questions and provides practical advice
on the Act, which came into force on 1
July 2011 and has ramifications for all
employees of AET.

contact person in your company and, of course,

not participate in the bribery.
What should I do if not participating in bribery

and companies which carry on business in the

What would happen to me, my fellow crew and

UK, all AET employees must be aware of and

AET if we were found to be involved in bribery?

Why has it been introduced now?

compliant with the Act, as must all those

Under the UK Bribery Act, those found guilty of

Essentially, it has been introduced to help the UK

companies or people acting as agents or

an offence under the Act may be liable for

catch up with other jurisdictions such as the US,

subsidiaries of any of those companies.

imprisonment for a period of up to 10 years.

for example, which has had similar legislation in

AET, meanwhile, could be liable for a significant

How does the UK Bribery Act impact my work

place for years.

fine.

onboard ship?
As I am not a resident of the UK and do not work

Any facilitation payments which might have

Your designated contacts for reporting bribery

in the UK, why do I need to be aware of the Act?

previously been provided for customs clearance,

are Robert Miller (rmiller@aet-tankers.com)

The legislation covers any acts of bribery

piloting duties, canal transits etc, may well fall

and Simon Thornton (sthornton@aet-

involving British passport holders in the UK and

foul of the Act, so it is important that such any

tankers.com). Contact can also be made via

overseas and any persons ordinarily resident in

onboard practices are made compliant with the

the dedicated anti-bribery email address

the UK. It also covers any company incorporated

Act.

AETAntiBribery@aet-tankers.com

AET tanker puts Anti-Bribery

and Corruption Policy into practice
A recent port call by one of AETs vessels provides an excellent example
of the application of our new Anti-Bribery and Corruption Policy.
An AET Aframax tanker recently made a port

regulatory enforcement authorities and fit within

call during which she was boarded and fined

the constraints imposed by the Anti-Bribery Act

for alleged violations of local regulations. As

that prohibit improper payments to government

the port in question had a reputation for

officials.

questionable activity and, as the new Anti-

Subsequently, the boarding official was

Bribery Act prohibits facilitation or other soft

advised that AET would make no payment

payments, the ships master contacted AETs

directly to him but would pay the fine to the

Houston office for advice on how to proceed.

appropriate receiving authority.

The

Operations,

AET then

Commercial,

worked closely with the P&I Club and its local

Shipmanagement and Legal teams worked

agent to confirm the validity of the fine and to

matter by making payment

enabled AET to move systematically to resolve

together to identify all the issues, including those

negotiate a reduced amount. AET made it

through its agent to the legitimate local authority

the issue efficiently and in full compliance with

posed by the Anti-Bribery Act, and to develop

clear at all times to local officials and its agents

after the vessel had sailed.

the new Anti-bribery Act and local / port

a response strategy which would avoid

that it would only pay legitimate penalties

Timely notice by the master coupled with

unnecessary vessel delays, satisfy local

through legitimate channels. AET concluded the

close cooperation between the departments

page 6 seascape Issue 11 2011

regulations without antagonising the authorities

to the detriment of future port calls.

Aframax earnings
40,000
35,000
30,000

B U R N I N G

I S S U E

SPOTLIGHT ON TANKER EARNINGS

The cost of transporting oil
If you regularly take a taxi from one city to another you would expect the price
of that journey to rise steadily over the course of a few years. But the cost of
chartering one of our ships to carry oil from one port to another will rise and fall
significantly over the same period. The chart shows the average cost of
chartering an aframax tanker over a two-year period and you can easily see
the fluctuations and volatility. As a ship-owner, we cannot dicate how much we
are paid to transport oil for our customers the price is set by the market, So
why does this price change so dramatically and how does that affect us?

25,000
20,000
15,000
10,000
5.000
0
TEC
Assessment
$/day

Jan 2010

Jan 2011

High oil prices, less demand

Continued low rates

In general, a high oil price will reduce global

Tanker freight rates hit an eight-year low in 2009

demand which means there is less cargo for our

and this was caused by the combination of high

ships to transport and this reduces freight

oil prices, a reduction in demand for oil and a

More ships, lower rates

rates. But there are other complexities. The

rates. Interestingly, a 10% increase in crude

record number of ships joining the world fleet.

Following the general rule of supply and

global phase-out of single-hulled tankers goes

prices will lower global demand by around

Because of the many factors that influence tanker

demand, if there are plenty of vessels

someway to offset fleet growth as does the use

0.6%. Conversely, a 1% change in demand

rates including the recent unrest in Libya it is

available to carry oil, the hire price will fall.

of large tankers for floating storage. And the

causes a 16% rise or fall in the price of crude

not easy to forecast the future market. But most

Two or three years ago, freight rates were

emerging trend of slow steaming to save fuel

oil. With crude oil priced at over $100 a barrel

experts believe freight rates for all tankers will

extremely high which encouraged shipowners

costs will also have the effect of reducing the

and the global economy continuing to remain

remain very low throughout 2012 and into

to build more vessels. As a result, last year saw

number of tankers available for charter. Even

weak, global demand is forecast to fall year-

2013 and this will, of course, affect the

the world tanker fleet grow at its fastest rate for

so, there are still far too many ships available

on-year which will reduce the demand for

profitability of all tanker owners across the

30 years and this has driven down freight

for charter in todays market.

tankers such as ours.

world, including AET.

FAMILIES AT SEA
Raunaq Nawar
x, sailed
w aged si
o
n
i
i,
r
in
g
a
a
R
haudh
nboard
daughter,
rst steps o
fi
r
e
Ragini C endra Chaudhari and my
h
k
o
five. She to
y and
tain Shail
e reached
t, gangwa
o
sh
il
l
ti
p
n
I am Cap
y,
u
lle
th
m her bir
bridge, ga
tankers fro
a, daddy,
m
m
u
m
on seven
re
e
t words w
describe
nd her firs
f a word to
o
a tanker a
r
tte
le
t
rs
fi
. Ragini
to fill in the
!
J missing
was asked
e
i
th
chief cook
in
h
g
it
a
w
R
,
e
n
09
s a JET pla
arten in 20
picture wa
e
In Kinderg
h
T
.
n
w
g sho
n her
e was bein
t miss out o
T.
o
E
n
A
id
to
a picture sh
d
I
in
t
the word
as it mean
A to turn
a with me
se
to
r
te
wrote an
h
my daug
rn
sed I took
ild was bo
Im so plea
second ch
r
u
o
n
e
h
on
but w
hilst sitting
W
.
n
early years
o
ti
si
o
ore p
to take a sh
sked her
I decided
er day I a
th
o
e
th
i
in
y with Rag
up. Quick
the balcon
she grew
n
e
h
w
e
b
, I said.
wanted to
ne pilot?
li
what she
ir
A

.
t
o
pil
she said
as a flash
t who
ini, a pilo
g
a
R
d
e
li
No, rep
.
s into port
brings ship

I am Raunaq Nawar, daug

hter of Chief Engineer Mo
hammad Showkat Hossa
in. I am
twelve years old and have
travelled in more than eig
ht ships with my parents. My
best
ship was Bunga Kelana 8
and I still remember my firs
t sight of that big orange
ship.
During my first few days on
board I got to know the go
od and friendly crew includ
ing
Captain (Krutous), C/O (M
yo), S/A (Rakesh), 3/O (An
upam), 4/E (Hidayah), 3/
O
(Hemanth) and others. On
e day 3/O Anupam arran
ged a party for me and I
helped
to decorate the mess roo
m. We played team game
s all day and had a delici
ous
dinner in the evening. An
other day the Indian office
rs organised a cooking pa
rty and
we tried the best Indian dis
hes which was fun and exc
iting. The only female
officer onboard, 4/E Hid
ayah, let me try on her uni
form and that is a great
memory for me. During my
month onboard we visited
Melaka and Bintulu but
the trip ended all too soo
n.
For my dad, AET is as mu
ch a part of his family as
me and mom. I really
enjoyed my trip and am pro
ud to be part of the AET fam
ily.

Issue 11 2011 seascape page 7

final opportunity to get out those cameras or

smartphones, and send us imaginative and
creative photos that you think illustrate one or more
of AETs values partnership, excellence,
responsibility and innovation. Send your photos to

Thanks to all those budding photographers who

editor@aet-tankers.com with a brief description of

have sent in their shots for our photo competition.

your photo, including what value it represents and

The standard is high, with some excellent photos

why, along with your name, rank and ship, by 31

that capture ships and operations. However, we

March 2012. If you have children who wish to

are very short on photos that include people.

enter a photo, please also include their age.

MASTERMIND

SNAP
HAPPY

Were therefore giving you and your families one

Sudoku
Fill in the grid so that each row, column and 3x3 box
contains the numbers 1-9.

3
6

1
7

7
8

9
2

5
4 8

3
5 9
4

1 5
6
1
6
3
4

2 4
7
9
7
1
5

Source: Sudoku-Puzzles.net

PRESIDENTS AWARDS 2011 WINNERS

Congratulations to Second Officer Gurmeet Singh, who wins a Presidents Awards 2011 Living
AET Values award for his standards of excellence onboard ship and for his exceptional

MASTERMIND
Take two minutes to test
your shipping knowledge.

partnership ethic. Gurmeet was commended by colleagues for his sense of responsibility,
specifically with regards to promoting safety and educating others in the importance of protecting

There are a whole raft of abbreviations used

personal wellbeing and the environment. Nominations in support of Gurmeet also praised his

throughout our industry. Try this quiz to find out

leadership qualities and the effort he puts into ensuring a happy ship, where everyone from

how many you know.

Editor

the cook to the pumpman feel an integral and important part of onboard life.
Gurmeets fellow Living AET Values award winners are Mohd Rizal Mohd Rani, of our IT team

MODU

ABCU

AHV

H&M

BNM

UHF

CBT

D&H

FOB

IMO

Chong Hui Chien

Corporate Communications

in Singapore and Amy Crenan, of Commercial Operations in Houston. Second Officer Rahul

AET Shipmanagement, Singapore

Amit Pal, HSSE,
AET Shipmanagement, Singapore

Ultra High Frequency

Broadcast Notice to Mariners
Hull & Machinery
Anchor Handling Vessel
Automated Bridge Control system for
Unattended engine room
Mobile Offshore Drilling Unit

page 8 seascape Issue 11 2011

Fared Khan, HR Sea,

Clean Ballast Tanks

Ian Rey Albaran, Third Officer

Mohd Sobri bin Mohd Ali, Oiler
Captain Norazli Bin Ahmad
Rahul Athwal, Able-Bodied Seaman
Angelo A/L Augustus, Chief Engineer
Jacobus Ayub, Oiler
Captain Anthony Baretto
Ruben Baltazar Barros, Chief Engineer
Rajasingam Baskaran, Second Mate
Captain Rajeev Berry
Captain Chetan Budhraja
Captain Sergey A Burlaka
Samedi Dilao De Quiroz, Chief Engineer
Senthil Kumaran Dhanasekaran, Able-Bodied Seaman
Trevor Dias, Chief Engineer
Kwesi Tanu Ezekiel, Chief Engineer
Captain Gopal Krishnan Kaila
Oleg Karpunin, Chief Engineer
Ullasa Kota, Third Engineer
Chandan Kumar, Chief Officer

Chao Li, Second Engineer

Captain Lidivino Silva Lobo
Muhammad Ilyas Lodhi, Chief Engineer
Oleksandr Lyaguta, Chief Engineer
Rosdiansah Bin Madjid, Chief Cook
Roderick Pesigan Malabanan, Pumpman
Captain Shalil Shreedhar Malewar
Suherman Mandung, Oiler
Atep Mardiana, Chief Engineer
Amran Bin Matsom, Catering Superintendent
Captain Shanker Ganesh A/L Muthuram
Captain Sugunan A/L Nanoo
Captain Derek John Paes
Agus Priyanto, Chief Cook
Sigit Edi Purnama, Second Engineer
Michael Quansah Essel, Second Engineer
Sulaiman Bin Rahmat Mohammed, Bosun
Fan Ruan, Deck Cadet
Vishal Sharma, Chief Officer
Jagbir Pal Singh, Chief Engineer
Pethuru Jagadees, Second Cook
Captain Norlito Uy Sepulvida
Kamrul Uddin Washim, Chief Officer
Wang Zhao Guo, Second Engineer

Dangerous and Hazardous

Thank you to all those who participated this year and

a big well done! to everyone at sea who was
nominated, as listed below.

Contributors

Free on Board

commended acknowledgements. Meanwhile, this years Outstanding Achievement Award goes

to Bill Merritt of AET Offshore Services in Galveston, Texas.

editor@aet-tankers.com

International Maritime Organization

Pant and Head HR Sea, Captain Fared Khan are also to be congratulated on their highly

Seascape is published by:

AET UK Limited, Suite 8.02 Exchange
Tower,1 Harbour Exchange Square, London
E14 9GE, UK

Design/Production
Chris Smith
Its Print,
Singapore
No part of this publication may be
reproduced in any form without the written
permission of the publisher. The opinions
expressed in contributed articles and
interviews in Seascape are the views of the
individual writers and interviewees and do
not necessarily reflect the views and opinions
of AET.