Annual report 2009
QUALITY, HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION

 

GENERAL

The Odfjell leaflets “Corporate Quality Management Manual” and the “Corporate HSE Expectations” prescribe how Odfjell shall work in compliance with the high quality and HSE standard we aim for in both business areas tankers and terminals.

Stringent safety and environmental requirements guide all our operations. Training of personnel working on board,
at terminals and ashore is our proactive way of ensuring that we possess the required competence. During 2009
our mariners received more than 12,500 training days, mostly provided by the Odfjell Academy at Subic Bay, Philippines. In the third quarter of 2009 Odfjell launched a new e-learning training module mandatory for all employees, to provide knowledge and awareness about our QHSE policy. For our terminals, approximately 4,500 training days were held. To further enhance the competence within the division, Odfjell Terminals B.V. initiated the establishment of a training facility in China.

The employee absent rate in Odfjell is fairly low; for shipping and terminals the absent rates were 3.5% and 1.7% respectively.

Operating units have approval to the International Safety Management (ISM) code (ship management), ISO 9001: 2008 standard (terminals), CDI-T attestation (customer terminal inspection) and ISPS code (terminal security management) and ISO 14001 environment standard. In 2009 the terminals in Korea and Dalian acquired OHSAS 18001: 2007 certificate, a Management System Standard within health and safety.

ENVIRONMENTAL IMPACT OF THE ODFJELL FLEET

In 2009 the Odfjell fleet consumed 656,000 tonnes of fuel oil of which 16% were classified as low sulphur fuel and 21,000 tonnes of distillates. Total emissions of CO2 and SO2 were about 2,100,000 tonnes and 33,000 tonnes, respectively, based on the consumption by 92 vessels.

All fuel purchased by Odfjell is tested by Det Norske Veritas Petroleum Service. Test results of the bunkers purchased in 2009 (1,500 samples) state the average sulphur content was 2.41%, confirming the downward trend observed since 2006 (2.71%). The global limit is 4.5%.

SO2– EMISSIONS

Based on all consumption (both in port and at sea) in 2009 the Odfjell vessels emitted on average 0.17 grams SO2 per tonne cargo transported per kilometre.

CO2 – EMISSIONS/ENERGY EFFICIENCY OPERATIONAL INDICATOR

In August 2009 the Marine Environment Protection Committee of IMO circulated guidelines for voluntary use of an Energy Efficiency Operational Indicator (EEOI), defined as the amount of CO2 emitted per unit of transport work. Odfjell has calculated the EEOI for the fleet and set the figure for 2008 as a baseline. The calculations are made in accordance with IMO MEPC Circular 684.

Including fuel consumption both in port and at sea, in 2009 the EEOI for the Odfjell fleet was 20.40 gram of CO2 per
tonne cargo transported one nautical mile. The number for consumption at sea only is 17.20 g/tnm. This is a slight
increase from 18.90 g/tnm in 2008, and is explained mainly by the relative decrease in tonne mile-production as a result of lower demand in 2009. EEOI for the main ship groups sorted in deadweight ranges in the table.

SPEED/CONSUMPTION REDUCTION SCHEME

In 2009 Odfjell Tankers operated 48 vessels in reduced speed mode for a total of six months. This generated a net fuel saving of about 22,000 tonnes, corresponding to emission savings of approximately 68,000 tonnes of CO2 and 1,000 tonnes of SO2.

WEATHER ROUTING

Studies by IMO, Det Norske Veritas and others demonstrate that weather routing, whereby an external service provider offers advise on the optimal sailing route based on a number of meteorological factors such as wind, waves and currents, can generate 1-5% fuel and emission savings. It may also reduce time at sea and further enhance the safety of vessel crew and cargo. Late 2009 Odfjell Tankers started making use of weather routing, and all sea voyages by any Odfjell operated vessel exceeding five days are now weather routed. Our experiences so far are positive and on several voyages we have made substantial savings both on fuel and time at sea.

To the left is a recent example where an
Odfjell ship was assisted in avoiding a
heavy storm in the North Atlantic Ocean.
The alternative route provided improved
safety and also the service provided a more energy effi cient voyage. Post voyage analysis indicates that the original set route would have been exposed to a negative weather factor of 3.2 knots compared to the alternative route that was provided. Despite the increased sailing distance, one therefore estimates a time saving of
close to 60 hours, corresponding to 80
tonnes bunkers or 250 tonnes CO2.

 

ENVIRONMENTAL FOCUS

Odfjell Tankers Environmental Council (OTEC) is established to identify Odfjell’s environmental impact. Sea transportation is widely recognised as being among the most environment-friendly ways of carriage compared to alternative modes of moving goods. However, knowing that 90% of all goods are carried at sea, we acknowledge that seaborne transportation is a major source of pollution in the transport industry. The impact will in many respects be considered as substantial and hence, an active approach to environmental issues is necessary.

TANK CLEANING – CHEMICAL TREATMENT

Odfjell Tankers continues to develop effective tank cleaning methods that meet the highest industrial standards. In 2009 an initiative aimed at reducing the number of cleaning chemicals was launched. We have already seen that
the total volume of cleaning chemicals has been reduced by approximately 5%, and we expect further reduction in 2010.

ODFJELL MANAGED SHIPS

The Lost Time Injury Frequency (LTIF) on Odfjell managed ships was 2.25 against 2.3 in 2008.

Ship Management holds the ISO 14001 certification, which involves 52 ships under own management. All relevant environmental aspects are identified, and the most significant issues are listed in the QHSE programme.

In addition to the extensive reporting and training programme, we implement technical changes. The following technical projects reduce the environmental impact beyond the requirements in current regulations:

Reduced oil leaks from stern tube sealing systems

In order to improve performance of the stern tube sealing system, Odfjell has started a USD 1.5 million upgrade programme, aiming at improving the systems on 19 ships to the highest technical standard. During 2009, five ships were upgraded.

 

Landing and recycling of garbage

Odfjell has installed and tested garbage compactors on two vessels, to reduce the volume of garbage and the amount burned in the incinerator. We are evaluating further installation of garbage compactors.

Reduced lube oil consumption

In order to reduce lube oil consumption, Odfjell has installed electronically controlled lubricator systems on 13 ships, at a total cost of USD 1.34 million. The aim is to reduce lube oil consumption with 20 m3 per ship annually, which will make a considerable environmental impact.

Bilge Water Treatment Plants

In order to reduce oil content in bilges to 2 ppm (parts per million), Odfjell has upgraded to more advanced bilge water treatment plants on 36 ships.

Reduced running hours on auxiliary engines

Odfjell has established a programme to reduce number of running hours on auxiliary engines, and thereby to reduce fuel consumption and pollution of the environment. During 2008 and 2009 we managed to reduce the number of running hours by 30,300, giving a considerable environmental gain.

SHIP RECYCLING

Odfjell has established a programme to obtain Green Passport for all elderly ships, in order to ensure controlled recycling of such units. The programme meets all requirements and expectations of IMO Resolution A 962 and 179 regarding recycling of ships and puts us some years ahead of the enforcement of these resolutions. Seven Odfjell ships obtained such Green Passports during 2009. When selling a ship for recycling we request buyers to undertake that the recycling yard shall submit a working plan coresponding to IMO guidelines for ship recycling.

EXTERNAL ACTIVITIES INVOLVING ODFJELL

Through industrial organisations and flag state administrations Odfjell has actively contributed towards three specific industrial environmental initiatives:

  • Reduction of inadvertent cargo vapour emissions from ships. This project was finalised in 2009, and Odfjell has contributed to the guidelines that now apply.
  • Means to stop any illegitimate practice of draining shore cargo lines back to ships on completion of loading or unloading. This issue was also finalised through IMO in 2009, and this inappropriate practice has now ceased.
  • Enhance safety on board by expanding current inert gas requirement to apply to all tanks loaded with low flash cargoes, independent of tank size, age of ship or categorisation of the cargo. This is an ongoing issue, expected to be finalised in 2011.

The Company’s target is to actively support these initiatives and promote them to become industry practice in the future, either through legislative changes or through new recognised industry practice and guidelines.

PIRACY

Piracy in the Gulf of Aden gave reason for concern in 2009. Bow Asir, time chartered by Odfjell, was hijacked on the morning March 26, 460 nautical miles off the coast of Kenya. The ship was released by her Somali captors April 10. At the release all crew members on board were safe with vessel and cargo unharmed. Military presence in the area has meanwhile increased and we take all precautions necessary. All transits shall be made in compliance with recommendations from the Naval Command.

NEWBUILDING PROGRAMMES

Odfjell will in the forthcoming period introduce several projects related to newbuildings, which will all have a positive the impact on the environment. Among these are:

  • Hull antifouling project based on smooth silicone painting with zero release of chemical compounds, which is predicted to provide 5-10% fuel savings.
  • Ballast water treatment system, to avoid discharge of alien micro-organisms.
  • Oily water separator with ability to reduce the oil content to 5 ppm, well below the currently applicable requirements of 15 ppm.
  • Introducing fuel saving equipment for the sea water cooling pumps, by fitting frequency controlled electrical motors.

 

TANK TERMINALS

For the terminals, the Lost Time Injury Frequency (LTIF) is slightly down to 7.9, against 9.5 in 2008. As per 2010, a programme for lessons learned will be rolled out to share information and enhance experience transfer.

Reportable spills (over 5 litres) outside primary containment were reduced by 40%. The number of product contamination claims was also reduced from 29 in 2008 to seven in 2009.

The reporting of near misses and nonconformities increased from 215 in 2008 to 772. This is mainly due to improved reporting by Odfjell Terminals (Houston) and Odfjell Terminals (Rotterdam), and may imply a more active use of our experience feedback system.

During 2009 we have performed “corporate terminal audits” at all terminals owned or managed by Odfjell in order to
review QHSE status with respect to our Corporate Quality Management Manual and QHSE expectations. The audits are part of the efforts to consolidate a culture of continuous improvement.

The various terminals have comprehensive annual plans for environmental protection in line with the ISO 14001 certification. Current plans encompass air emission, vapour recovery, energy efficiency, soil remediation, and waste water treatment.