Monthly Newsletter, February 2015
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Archive for month: February, 2015
The Blog is Back!
Officially launched today, 20th February 2015, the new blog includes a range of articles, videos, interviews and hints & tips..
What is the effect of the recent drop in oil prices on the shipping industry?
Nearly all merchant ships use oil in some form for their main engines and for generating electricity. Fuel costs are a major element of the running costs of a ship. For example over the last 6 months the price on the Rotterdam market for low sulphur 380 cst has fallen from about 630 US Dollars to in the region of 230 USD Similarly Marine Gas Oil has gone from 880 US Dollars to about 460 US Dollars. When consumption is measured is tens of tons per day the saving on a four week voyage can be considerable. This can lead to increased profitability for the shipping company and/or a reduction in freight rates which will act to boost the amount of cargo carried.
We are already hearing people on the television news talking about their reduced fuel costs. Some are talking about using their cars more. Alternatively this leads to more disposable income. If that allows increased spending in the shops there will be a rise in shipping traffic to restock the shops with imported goods.
Similarly reduced shipping costs can act as a boost to the national ability to earn foreign currency through exports.
Most countries have oil stock reserves, when the price of oil is low it is a golden opportunity to increase the amount of oil and Gas held in reserve thus increasing oil tanker traffic to import the oil. Interestingly this has not happened yet. There are a lot of Gas tankers, and no doubt oil tankers too, lying idle. The explanation is that the importers are delaying buying stocks until the prices have reached their lowest. Watch this space, idle tonnage may easily get chartered very soon.
The offshore Oil exploration industry is going through a downturn because of the cost of exploration being greater than the likely return from oil found. This obviously has a negative effect on places like Aberdeen and employment in the offshore industry in general. Quite how deep or long term the down turn will be is a bit of an unknown. This is particularly so because of the length of time it takes to discover new oil deposits and put in place the necessary infrastructure before any oil flows. The oil majors have to look several years ahead. It often appears that cutting back on staffing levels and thus costs is the easiest policy when belts have to be tightened; but is it the best decision for the long term prosperity of the company?
Interestingly in their recent “energy outlook” BP said:-
“After three years of high and deceptively steady oil prices, the fall of recent months is a stark reminder that the norm in energy markets is one of continuous change,” said Spencer Dale. “It is important that we look through short term volatility to identify those longer term trends in supply and demand that are likely to shape the energy sector over the next 20 years and so help inform the strategic choices facing the industry and policy makers alike.”
Their CEO Bob Dudley went on to say:-
“The energy industry works on strategies and investments with lifespans often measured in decades. This is why an authoritative view of the key trends and movements that will shape our markets over this long term is essential… and is precisely why this Outlook is so valuable.”
With the exception of the offshore industry, in the short term the downturn in oil prices should generally be beneficial to us, the shipping industry and the nation. Perhaps we should make the most of it whilst it lasts?
Article Reference Link: http://www.green4sea.com/bp-energy-outlook-2035-growing- gas-shifting-flows/
I have been a navigating officer in the Merchant Navy, Coastguard and been involved in Harbour Management. Since 2004 I have taught in the Maritime training field and become a qualified teacher.
The Future of Marine Simulation
For many years the aviation community has embraced simulator-based training as an integral part of teaching syllabi; not as a replacement for time in a real aircraft but to augment and consolidate theory, practice procedures and to push students’ capacity to a degree perhaps not possible in a real aircraft due to the risk inherent in willingly making things go wrong in the air.
Perhaps the collective inertia to integrate and exploit simulators for marine training is finally being overcome with the advent of a new generation of simulation technology. ECDIS Ltd is leading the world in reducing the gap between what training is possible at sea and what training is possible ashore. Through smart integration of existing, but extremely high-end hardware, ECDIS Ltd is able to provide 360° high definition bridge simulators of a quality and realism that has not been seen before. From the perspective of the end user this technology offers training with tangible benefits and at a fraction of the cost, and risk, of conducting such training at sea. Offering bespoke and importantly, flexible simulation solutions, ECDIS Ltd are constantly pathfinding and continue to set the standard of what is achievable in a simulator; solutions that have previously been thought of as unachievable, cost prohibitive or plain untenable are being made a reality. Consider the utility of a full mission bridge modelled on your own fleet of vessels, with the same equipment fully integrated and linked to a series of smaller simulators used to practice tug manoeuvring or counter-piracy tactics. The options and variety of training are no longer limited by technology as boundaries continue to be pushed and inventive, elegant solutions provided by a team of extremely dedicated technicians.
The desire to constantly improve doesn’t end there; complex equipment such as this needs regular and effective maintenance routines. Remote access has been utilised in the IT sector for several years and has now been tested and verified as a viable option for update and upgrade of such simulation technology. Issues can be diagnosed and resolved from many time zones away saving all-important time and ensuring training facilities remain open and fit for purpose. Where this is not enough; rapid deployment of a technician with a targeted aim is completed and problems are addressed in short order. This type of bespoke support and communication is not something found everywhere and sets ECDIS Ltd apart from competitors.
Advances will continue apace. Bridge simulators are not the boundary; this technology can be tailored to many fields and benefit many industries. Consultation with the team is free; we’d be happy to discuss simulation requirements and how we can assist in improving your training.
About The Author
Video: ECDIS Ltd 3D Department – Modelling The Future
We’ve uploaded a new video to YouTube. Find out all about our 3D Department at ECDIS Ltd. From Port & Vessel creation, to full mission bridge simulator designs and visualisations; our team are dedicated to producing state of the art simulation for training environments.
Produced by our own Ben Climas and featuring Jack Osborn, our Head of 3D Department…
