MARINE LUBRICANTS

1. MARINE LUBRICANTS MARINE BUSINESS

2. INDIAN MARITIME HISTORY • Indian Maritime Administration was born in 1929 in the form of three Mercantile Departments (MMDs) – Mumbai, Chennai and Kolkata. • They were set up fundamentally to implement the first international convention on ‘Safety of Life at Sea’ (SOLAS) Convention, 1974 and Loadline Convention.

3. INDIAN MARITIME HISTORY • The main objectives of MMDs are to administer the various Merchant Shipping Laws and rules relating to safety of ships and life at sea, registration of ships, tonnage measurement, crew accommodation, surveys for load line, safety construction, prevention of pollution, inquiries into shipping casualties and wrecks, etc.

4. INDIAN MARITIME HISTORY • Mercantile Marine Department, is headed by the Principal Officer, and supported by Nautical Surveyors, Engineer Ship Surveyors, Radio Inspector, Seamen Welfare Officer and supporting staff.

5. INDIAN MARITIME HISTORY • In September 1949 the Directorate General of Shipping was established at Mumbai. • It is an attached office of the Ministry of Shipping, Govt. of India and deals with all executive matters, relating to merchant shipping. • Implementation of shipping policy and legislation, development of coastal shipping and various other aspects related to the Indian shipping industry comes under its purview.

6. The oceans and seas cover seven-tenths of the globe. • India has a long coastline of 5,560 Kms.

7. India is served by twelve major ports, that account for more than 75% of the total sea borne trade, and 185 small and minor ports, administered by the state maritime boards, many of which are doing exceptionally well, especially in the coastal shipping areas.

8. India is the fifth largest nation supplying manning complements of efficient certified officers and ratings to the world. • Indian seafarers have a quality of their own and are most sought after by the world shipping companies.

9. The share of cargo transported through inland waterways in India is barely 1%. • The potential for navigable inland waterways in India, comprising of river system, canal backwaters, creeks and tidal inlets, is immense.

10. A major chunk of India’s sea-borne cargo is accounted for by crude and petroleum products. • India has become a new key destination for crude supply.

11. Transportation of energy sources is going to be the major thrust area in the years to come. • The prospect has attracted several global players into India. • This is just a beginning – a curtain raiser for the shape of things to come.

12. Generic Terms

13. BUNKERS - fuel consumed by the engines of a ship; Compartments or tanks in a ship for fuel storage. • BARGE - flat-bottomed boat designed to carry cargo on inland waterways, usually without engines or crew accommodations. Barges can be lashed together and either pushed or pulled by tugs, carrying cargo of 60,000 tons or more.

14. CARRIERS - owners or operators of vessels providing transportation to shippers. • CARGO HANDLING - the act of loading and discharging a cargo ship.

15. NAUTICAL MILE - distance of one minute of longitude at the equator, approximately 6,076.115 feet. The metric equivalent is 1852 meters. • KNOT - unit of speed in navigation which is the rate of nautical mile (6,080 feet or 1,852 meters) per hour. • HULL - shell or body of a ship.

16. QUAY - A structure attached to land to which a vessel is moored. • ABAFT - A point beyond the midpoint of a ships length, towards the rear or stern. • AFT - in, near, or toward the stern of the vessel.

17. ASTERN - A backward direction in the line of a vessel's fore and aft line; Behind. If a vessel moves backwards it is said to move astern; Opposite to ahead. • AT SEA - in marine insurance this phrase applies to a ship which is free from its moorings and ready to sail.

18. BEAM - the width of a ship. Also called breadth. • BOW - the front of a vessel. • BRIDGE - used loosely to refer to the navigating section of the vessel where the wheel house and chart room are located; Erected structure amidships or aft or very rarely fore over the main deck of a ship to accommodate the wheelhouse.

19. DANGEROUS CARGO - all substances of an inflammable nature which are liable to spontaneous combustion either in themselves or when stowed adjacent to other substances and, when mixed with air, are liable to generate explosive gases or produce suffocation or poisoning or tainting of foodstuffs.

20. TANK BARGE - A barge designed for the carriage of liquid bulk cargoes. • TANK CLEANING - removal of all traces of a cargo from the tanks of a tanker normally by means of high pressure water jets.

21. HARBOR MASTER - A person usually having the experience of a certificated master mariner and having a good knowledge of the characteristics of the port and its whole area. He administers the entire shipping movements that take place in and within reach of the port he is responsible for.

22. CLASSIFICATION SOCIETY - worldwide experienced and reputable societies which undertake to arrange inspections and advise on the hull and machinery of a ship. An autonomous organization that supervises vessels during their construction and afterward, in respect to their seaworthiness, and the placing of vessels in grades or "classes" according to the society's rules for each particular type. It is not compulsory by law that a ship owner have his vessel built according to the rules of any classification society; But in practice, the difficulty in securing satisfactory insurance rates for an un-classed vessel makes it a commercial obligation.

24. The Indian Register of Shipping (IRS) is an internationally recognized independent ship classification society, founded in India in 1975.

25. Within a short span of 16 years, IRS (Indian Register of Shipping) has become an associate member of the International Association of Classification Societies (IACS), the major international body of classification societies. • Admission in IACS is granted only to the best and signifies high standards, excellent reputation and professional competence.

26. IRS (Indian Register of Shipping) provides professionally competent, completely independent and highly efficient third party technical inspection and certification services for all types of ships and structures. • These services have also been expanded to cover a range of offshore and industrial projects.

27. MARPOLMARine POLlution

28. MARPOL 73/78 - the international convention for the prevention of pollution from ships, 1973, as modified by the protocol of 1978. • MEPC - marine environment protection committee, a major committee within the International Maritime Organization.

29. Although safety was and remains International Maritime Organization’s (IMO's) most important responsibility, a new problem began to emerge – • MARINE POLLUTION

30. The growth in the amount of oil being transported by sea and in the size of oil tankers was of particular concern and the Torrey Canyon disaster of 1967, in which 120,000 tonnes of oil was spilled, demonstrated the scale of the problem.

31. During the next few years International Maritime Organization (IMO) introduced the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78). • It covers not only accidental and operational oil pollution but also pollution by chemicals, goods in packaged form, sewage, garbage and air pollution.

32. MARPOL Annex VIPrevention of  Air Pollution from Ships (entry into force 19 May 2005)

33. Emissions From Shipping • Emissions from shipping can be an issue for local authorities with major ports. • Also, as emissions from other sources decline, global emissions from shipping are becoming more and more significant, with this source expected to account for 60% of total SO2 emissions in the EU by 2010.

34. However, bunker fuel emissions from international shipping had so far been excluded from any commitment in the protocol. • After looking at the magnitude of greenhouse gas emissions from international shipping, the best solution was for International Maritime Organization (IMO) to agree on a global shipping emissions target that would be comparable to targets of industrialised countries.

35. In 1997, the 3rd conference of parties to the UN framework convention on climate change adopted the Kyoto Protocol as a consequence of increasing evidence of a manmade global warming of the atmosphere. • Binding greenhouse gas emission reduction targets for industrialised countries were agreed upon.

36. Shipping is a global industry and efforts to reduce emissions are most effective when agreed and implemented at an international level. • Annex VI to MARPOL 73/78 is a International Maritime Organization (IMO) regulation which aims to prevent and reduce air pollution from ships.

37. The MARPOL 73/78 Annex VI Regulations for the Prevention of Air Pollution from Ships entered into force on May 19, 2005. • The regulation set limits on sulphur oxide (SOx) and nitrogen oxide (NOx) emissions from ship exhausts, and prohibit deliberate emissions of ozone depleting substances.

38. The agreement set a global sulphur cap of 4.5% by mass for all heavy marine bunker fuels, and a 1.5% cap by mass for fuels burnt in special SOx Emission Control Areas (SECA). • Alternatively, ships must fit an exhaust gas cleaning system or use any other technological method to limit SOx emissions in these areas.

39. The agreement also set limits on NOx emissions from diesel engines. • As NOx emissions from shipping are primarily from engines, the MARPOL Annex provides a mandatory technical specification for ship engines manufactured since 1st January 2000.

40. The global limit for the sulphur content of marine bunkers set by the Regulations at 4.5% m/m is not expected to have much operational impact as the incidence of marine fuels exceeding this level is not high. • The main impact will be felt when the Baltic and North Sea/English Channel SOx Emission Control Areas (SECAs) become operational on May 19, 2006 and in November 2007, respectively, further limiting sulphur content of fuels to 1.5% m/m.

41. IMO has currently agreed on the designation of two SECA’s as per below: • The Baltic Sea Area which will enter into force on the 19th May 2006. • The North Sea Area and the English Channel has also been agreed, but due to the amendment process in IMO, it will not enter into force as a SECA until 19th November 2007.

42. It is expected that further SECA’s will be designated in the future and IMO has set forth certain criteria for designating such SECA’s.

43. For the sake of good order, it should be noted that the limitations in sulphur content applies to all fuel oils (heavy fuel oils, marine diesel oils and gas oils) and regardless of use on board (i.e. In combustion engines, boilers, gas turbines etc.).

44. Currently, the average sulphur content in fuel oils is in the region of 2.7%. • Results of a comprehensive number of fuel samples tested indicate that only 0.2% of the fuel oils tested have a sulphur content exceeding the required 4.5%.

45. However, it also indicates that only 4% of the fuel oils supplied today have a sulphur content of 1.5% or less. • It has been estimated that the low sulphur fuel oil demand in the SECA’s will be in the region of 14-20 million tons per year, of which approximately 0.7 million tons per year is available in north west Europe today.

46. It is generally acknowledged that the above will lead to increased prices for low sulphur fuel oils and a price hike from 25 to 100 USD/ton has been indicated depending on method of production and market availability/demand.

47. Although it has been indicated that the total world wide availability of low sulphur fuel is adequate with the current SECA’s and associated low sulphur limit (1.5%), it is highly uncertain as to whether the availability will be adequate in world wide ports.

48. It should further be noted that currently, low sulphur fuel is in general only available to operators with contract agreements with oil majors. • Future spot availability is thus dependent on the developments in market demand and price after entry into force of SECA’s.

49. Currently only marine gas oils used for voyages within the EU are regulated by the Sulphur content of liquid fuels directive 99/32/EC. • The maximum sulphur limit for these fuels since 1st July 2000 has been 0.2%. • This will be reduced to 0.1% from 1st January 2008.

50. BUNKERING OPERATIONS