Ship management - towards world-class
Ship management is performed by Lauritzen Fleet Management (LFM) and JL-owned Gasnaval S.A. (semi-refrigerated gas carriers, product/chemical tankers, reefer vessels) and by part-owned New Century Overseas Management Inc. (bulk carriers) and Star Management Associates (pressurized gas carriers). This set-up ensures cost competitiveness as well as access to and constant development of ship management competencies.
During 2007, an average of 37 JL-owned vessels were under management, made up of 12 bulk carriers, 22 gas tankers, and three product tankers. LFM also undertook ship management of 15 vessels for selected partners for four gas carriers, two chemical tankers and nine reefer vessels.
LFM formulates overall ship management processes, standards and policies for the JL fleet and ensures compliance, with the focus on continuous improvements through knowledge sharing and best practice throughout the Group, access to excellence within core technologies and operational and technical innovations. LFM monitors environmental protection and conservation trends, such as the dual fuel propulsion system on the new ethylene gas carriers, and focuses on building and strengthening partnerships with key suppliers and knowledge centres.
Safety and Quality
JL’s ship management providers are dedicated to continuing to provide the highest degree of quality and utmost safety for people, ships and the environment, whilst also ensuring competitive, cost-effective and highly efficient operations.
There is an ever-increasing burden of rules, regulations and demands on the shipping industry. JL is obviously committed to complying with and exceeding the major oil companies’ increasingly rigorous quality and safety requirement, for example, including those of the Tanker Management Self Assessment (TMSA) programme.
JL meets and exceeds these requirements as well as our business partners’ expectations and will continue to aim for the highest achievable levels of safety, security and quality.
Long-term strategies, good management systems, and lean processes are key elements in continuing this development.
People
Competent and motivated personnel aboard our vessels are the single most important factor for high-quality operations, performance and financial efficiency. JL provides fair employment terms and sound working conditions and places great emphasis on education, training, teamwork and on creating and nurturing a working environment in which people feel valued and an integral part of the company.
Recruitment
With the industry growing generally and particularly so for certain segments, competition for crew and staff at sea and ashore will increase. JL’s own fleet is set to grow significantly in numbers and diversity within the next years, which emphasizes the necessity for continuing to expand our long-term strategies for attracting, recruiting, educating, training and motivating the best employees world-wide.
Crew strategy is by its nature long-term and with the oil majors’ matrix requirements for officer’s years-with-company, years-in-rank, years-in-shiptype, this has become even truer. We are facing these challenges by remaining competitive, by strengthening strategic partnerships with our crewing agencies and by innovative use of technology and systems to increase crew welfare. During 2007, JL introduced “ships on-line” aboard the first of our ships enabling ship officers and ratings to stay in touch with families and relatives.
Performance reviews
JL conducts performance reviews by means of Key Performance Indicators (KPIs) to measure, document and report the full impact of our activities. KPIs are collected and monitored across ship management entities and include measurements of safety, environmental performance, quality, costs, security and crew and office personnel.
Lost Time Accident Frequency (LTAF) statistics developed satisfactorily from 3.81 in 2006 to 2.46 in 2007. Likewise, no major casualties were experienced in 2007 and JL’s performance trends in observations during port state controls, vetting inspections etc., were also satisfactory.
Environment
Ocean transport is a vital part of globalisation and the most energy-efficient way of providing transportation. Taking the huge volumes of goods carried by sea into consideration and compared to other means of transportation, emissions from shipping are limited. The influx of many new, larger vessels to the global merchant fleet has also contributed to reductions of emissions due to improved fuel efficiency. Further the International Maritime Organisation (IMO) has introduced international regulations for SOx and NOx emissions in sensitive areas.
JL has played an active role in achieving good energy efficiency levels and will continue to do so. We are fully aware of the impact of our operations on the environment and we acknowledge and support the need for further reduction of emissions.
JL’s own fleet of ships is modern with a low average age profile and we shall continue to launch and drive initiatives to enhance energy efficiency and reduce emissions.
Our view is that a holistic, global approach should be taken to environmental protection and initiatives to reduce emissions to ensure generally sustainable environmental improvements. IMO should take the lead in instigating future environmental and emission regulations on an international basis.
LFM was awarded ISO14001 accreditation for its environmental management system in 2007, initially covering product tankers and gas carriers but the system has been designed to cover other types of vessel as well. This includes initiatives to improve propulsion performance, for example by optimising power plant efficiency and hull/propeller resistance, garbage handling and the use of chemical substances aboard.
JL includes environmental factors at an early stage of ship design and strictly complies with the regulations, systems and procedures put in place to safeguard the environment.
We monitor and ensure that the performance and operation of vessels is optimal at all times and that we have in place rigorous response plans as well as well-trained staff and emergency response teams.
JL’s ambition is to continuously participate in developing to further reductions to the environmental impact of our operations, thereby helping ensure that shipping will remain and be recognized as the most environmentally-friendly form of transport.
Energy consumption
JL’s fleet of its own ships consumed a total of 200,000 tonnes of oil in 2007 to produce 2,300,000 MWh of energy.
In 2007, average energy efficiency was 0,050 KWh/ton-km which was down on 2006, mainly due to the number of larger, more environmentally-friendly vessels entering service, cf. Figure 12.
The emission figures also fell as a result of the focus on performance optimization, cf. Figures 13 and 14. Emissions figures are based on actual consumption, oil quality and engine emissions factors and are calculated in accordance with IMO MEPC /Circ.471.
