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C
alling 2007 "a truly remarkable
year," ABS Chairman and Chief all jackups on order, with the majority
Executive Officer, Robert D. of those building at Singapore-based
Somerville reported a record fleet yards. It also included a 61 percent
size and record orderbook to the share of the very active deepwater
146th Annual Members Meeting of drillship newbuilding market.
the classification society, held in New Somerville noted that classification
York. of production units tends to more
closely track the nationality of the
Acknowledging that "ABS has contracting party and can be, as a
benefited from the quite extraordinary consequence, a less open market.
bull run of the last few years," However, he was able to report that
Somerville attributed much of the "ABS still maintained its overall
success of the organization to the market leadership in this sector with a
more than 3,300 employees around 4 3 percent share of the existing fleet,
the world. "I am convinced that we Somerville told the members in nearly 20 points ahead of our nearest
would not have benefited to the extent attendance that, at end-2007, 76 competitor."
that we have without the unflagging percent of all mobile offshore drilling
efforts of the ABS staff," he told the units on order at yards around the Growth has brought challenges, the
meeting. "It is the people of ABS that world were contracted to be built to ABS Chairman admitted. "It is not
differentiate our services. It has been
through their efforts that we have
been able to consistently outpace the
growth in the world orderbook."
PAGE 2
my position to assess the rationality find, attract and train appropriately
of the continued pace of ordering qualified recruits from across the
in both the ship and offshore globe, particularly in China which
sectors, nor to predict if or when the has been the area of our activities
inevitable slowdown will occur," he that has experienced the fastest
said. "What I can say is that we are growth."
doing everything we possibly can to
assist all of our clients - shipyards, The society added more than 350
shipowners, offshore operators and professional staff in 2007 and is
equipment manufacturers to meet this continuing the aggressive recruitment
extraordinary workload. and training program that calls for
the addition of a further 400 staff
"Our challenge has been to manage being added in 2008 to handle the
our success so that we can continue growing classification activity and
delivering the superior classification an additional 100 staff to meet the
and related services that we pride rapidly expanding non-classification
ourselves on and which our clients work being undertaken by the society's
have come to expect from us. To affiliated enterprises.
do that, we have been focused on
staffing." The affiliates provide risk, quality and
related services to the marine, energy,
Referring to the current high demand public and corporate sectors and
for quality, experienced marine experienced a 30 percent year-on-year
personnel, Somerville noted that the growth in 2007. Several new products
global nature of the society's business were introduced over the course of
and the strength of its reputation has the year that strengthened the range of
meant that "we have been able to services available.
PAGE 3
The ABS chairman also took the
opportunity to remind members
of some of the important issues
that continue to threaten the
self-regulatory mechanism of
classification. In particular
he highlighted the on-going
negotiations with the EC and
European marine equipment
manufacturers over the issue
of mutual recognition of class
certificates for critical machinery
and equipment that is placed
aboard a ship.
PAGE 12
he combination of less
T experienced personnel
and increased regulatory
responsibility is apt to leave
shipowners and managers looking
to training as a resolution. And,
many are looking to classification
societies as sources to provide that
training.
The proposed draft amendments to Annex VI and the NOx Technical Code will
now be submitted to MEPC 58 (which meets from 6 to 10 October 2008) for
adoption, in accordance with an agreed timetable. This would see the revised
Annex VI enter into force in 2010. Work on greenhouse gases is scheduled
for completion in 2009, in time for IMO to submit a position paper to the
Copenhagen Conference (December 2009).
I
ist an absolute imperative for them taking what they perceive to
our industry to continue to be necessary action to regulate an
develop and encourage an open, industry that does not know how
collaborative conversation with our to regulate itself.
government representatives. To have conferred on various associations
the ears of political and regulatory and bodies, including lACS. ABS is The alternative requires a lot more
officials at all levels - not only telling also able to provide technical advice effort. It demands a proactive approach
us of their concerns but making through its participation on the US of constant, open communication. We
themselves available to listen to ours - and other flag State delegations. need our representatives, their staffers
is an outstanding example of the way and the good people at the European
forward for this industry. Fortunately, the IMO now acts Commission and elsewhere to better
much faster than in the past. And understand our industry. We need
There have been several positive the resulting requirements are to inform them of the importance
steps in this direction. For example, usually sensible and practical efforts of the industry to their national
an ad hoc industry advisory group to improve maritime safety and economies. We need to apprise them
brought together in Washington DC in provide further protection for the of the outstanding overall safety
February examined some of the issues environment. As a rule, they reflect record so that isolated incidents can
confronting the US Coast Guard. ABS the collaborative approach between be viewed in perspective rather than
was also pleased to testify in a hearing industry, government and other as evidence of a perceived persistent
before the US Senate Subcommittee on parties, including environmental irresponsibility. And we must be
Surface Transportation and Merchant groups, to their formulation. They prepared to cooperate with them in a
Marine Infrastructure, Safety and also have the over-riding benefit of willing and proactive way.
Security on ways to protect US shores being international standards.
from oil spills. A large contingent We must recognize that they do not
from the European Maritime Safety As an industry. what we do not wake up every morning with a fresh
Agency (EMSA) Secretariat along yet enjoy is a similar collaborative set of ideas on how to penalize the
with government representatives relationship with many of the regional, industry. Understanding is a two-way
from several European countries national and local legislatures. street. If we want them to develop
participated in the Mare Forum Increasingly, it is within these a better understanding of our op-
organization's recent conference in elected bodies that new unilateral erations, and our needs, we must be
Athens. requirements are developed - usually prepared to do the same.
in response to a specific incident that
This is very encouraging because, like has affected their waters. Unilateral We need to better understand the
it or not, more industry regulations are regional regulations, often well pressures they face, particularly in the
emanating from the halls of regional, meaning, can impose tremendous aftermath of a casualty when public
national or local governments. Tradi- difficulties on operations. pressure for action can be intense.
tionally, collaborative efforts between And we must recognize that we are
industry and governments at the IMO As an industry, we tend to be reac- not perfect - that there are areas of our
have worked well, giving industry a tive. With some notable exceptions, activities that can be improved - and
voice through the consultative status we tend to stir into action only in become more willing to take proposed
Wide experience in
achieving high safety
PAGE 24
and construction of the next genera- Lessons Learned
tion US Navy destroyer, DDG 1000,
and the Littoral Combat Ship (LCS) 1. It is imperative that the criteria
series which are high-speed multi- against which certification is to
mission platform ships. be evaluated are clearly stated
and that objective thresholds
The approach to applying classifi- be established to the maximum
cation on naval craft and how the extent possible. There must
requirements fit together along with be a process which allows
valuable lessons learned from the relevant, comprehensive rule
ongoing applications were the focus set shaping within constraints
of a paper presented on behalf of ABS of a disciplined risk assessment
during the Pacific 2008 International environment to be developed.
Maritime Conference, which convened
in Sydney, Australia. The paper was 2. The roles of each involved
a collaborative effort by members of party should be documented
the ABS Government Operations and and clearly understood. The
the ABS Americas Naval Engineering specification or contract must
departments in Washington DC and clearly empower the certification
Houston, including Glenn Ashe, Vice agent and make clear the process
President, ABS Government Opera- by which interpretation of the
tions; Thomas Ingram, Manager, meaning of criteria is established
ABS Government Programs; Derek and the process through which
Novak, ABS Americas, Manager, Naval disputes are handled. ABS and
Engineering; and Howard Fireman, the US Navy have agreed to share
Director of Future Concepts and the role of interpreting any require-
Surface Ship Designs for the US Naval ments in the Rules during their
Sea Systems Command (NAVSEA). application.
r; eCouncil of ABS elected two
new board members following
the classification society's Annual
Meeting of Members in New York.
Joining the ABS Board are Choo Chiau
.
Sa~g-H.o :hln, STX
Beng CC.B.), Chairman and CEO of Shipbuilding Co., Ltd...
Keppel Offshore &: Marine and RAdm. James A. Watson, US Coast Guard Haralambos J. Fafallos, Fafallos Ltd.
Elizabeth D. Whitaker, a prominent Robert A. Giuffra, ABS
Dallas attorney. The new members The ABS Technical Committee is the Paulo Cesar Chafic Haddad, Estaleiro
represent an enlargement of the ABS body of leading industry representa- Atlantica Sui SA
Board from 13 to 15 Directors. tives that conducts the final review Robert H0 Yang MIng Marlne
of all proposed changes to the ABS T C
Two well known members of the mari- Rules prior to their being presented to ransport orp.
time community were also elected as the ABS Rules Committee for formal Yuri Isupov, Palmali Group of
life-time Emeritus Members of the ABS adoption. Companies
Council at the society's Annual Meet- Masaki Kawase, MODEC Inc.
ing. They are William O. Gray of Gray "Classification is the principal self . Kaweeyanun, Chevron ShIpplng
Palro] "
Maritime Co. and Basil C. Scarvelis of regulating mechanism for the marine Com any
Trident Maritime Agency, Inc. and offshore industries," says ABS p. --
Chairman &: CEO Robert D. Somer- Andrew Kendrick, BMT Fleet Technology
Additionally, the following ABS ville. "Input from industry is a vital Ltd.
Members were elected to three-year part of our efforts to develop and Yong-Seung Kim, C&Shipbuilding
terms as members of the ABS Council: implement technically sound and Marine
.. , . practically applicable standards that In-Sung Lee, STX Shipbuilding Co., Ltd.
Amlr Hamzah bin AZlZan, American promote the safety of life, property and .
Eagle Tankers (UK) Limited th e na t ura 1enVlronmen t . Th a t gUtd- All' Hassan
. Mahmood, AI Jazeera
.. Sh Ipplng C ompany
Mark W. Barker, Interlake Steamship ance IS provided by our members, by .'
Company the members of our various national Cap~ ..Jitendra Misra, Emerat
and regional committees through our Maritime LLC
Angela A. Chao, Foremost Group .. '
... techmcal committee structure and by David Moore, Chevron Shipping
Nicholas G. Flstes, Grand Union our Council and Board. Every indi- Company
Robert A. Giuffra, ABS vidual within this broad membership Paticio Alvarez Morphy Perforadora
. . network is selected to reflect the entire Central ' S A de C V. '
Fred erlc k J. HarrlS, Genera I Dynamlcs
NASSCO spectrum of industry interests, each .
eminent in their particular field." Lowell J. Mortimer, Campbell Shipping
Donald R. Kurz, Keystone Shipping Co. Co. Ltd.
Cristina Lucia Duarte Pinho, Petroleo Elected to five-year terms as ABS Dr. Sujata Arun Naik, Tolani Shipping Co.
Brasileiro SA - PETROBRAS Members by the Council: Genji Okouchi, Doun Kisen Co., Ltd.
Bruce S. Rosenblatt, Bruce S. Rosenblatt William S. H. Peng, Chinese Maritime
& Associates, LLC Brad L. Berman, USCR, LLC Transport (Hong Kong) Ltd.
. Randy Chen, Wan Hai Lines Ltd. Manuel Paulo Serrao Pinto de
Newly elected to the ABS Techmcal
.. Timothy L. Coombs, Chevron Magalhaes, PORTUNE- Transportes
C ommlttee. Shipping Company
..
M arltlmos .,
InternaCionalS SA..
Ramesh Bhat, Eagle Bulk Shipping Sean Dalton, The Travelers Companies Toshiyuki Seno, Fukujin Kisen Co.
Mark Buetzow, Chevron Shipping Sotiris Dushas, Alba Maritime Alan L. S.Tung, Orient Oversea
Company LLC Services SA (International) Ltd.
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ON THE COVER
DAPENG SUN, a 147,000 m3 liquefied natural gas carrier, built by Hudong-Zhonghua Shipyard for China LNG
Shipping (International) Ltd. for service between Australia's North West Shelf and China's first LNG receiving
terminal in Guangdong Province. It is the first of a five-ship series that are being dual classed by ABS and China
Classification Society.