Bulk Carrier Leaders25 June 2020 • 17:00-17:45 BST

Part ofMaritime Leaders Webinar Week22-26 June 2020

Webinar Q&A summary:WT | Will Tooth, MSISB | Scott Bergeron, Oldendorff CarriersPN | Capt Panagiotis Nikiteas, Maran Dry Management IncJP | Jay K Pillai, Pacific Basin Shipping / INTERCARGO

Based on Jay's comments: do we need an NGO "RightPort"?

SB | In any analysis, shipowners ultimately comply with new requirements, but coastal states and shore facilities do not. Look at the lack of oil waste

reception facilities or the need for 60,000 ships to treat ballast water, which could be more easily and better treated by 4000 ports. Intertanko and

Intercargo have had limited success vetting port facilities. More work needs to be done and "RightPort" is an interesting idea.

PN | Indeed ports need to be vetted and more stringent procedures to apply. However it will take very long time.

JP | Very much. However, Who will bell the cat (guard the guardians)? Rightship has been formed by BIG Charterers.

Crew Changes:- Good to see that a number of ports are now allowing crew changes, however still a number of hard restriction in place which are hard to

work around with vessels on spot charters. More assistance from Flag and National authorties is needed.

SB | The IMO is too weak within the UN system to influence change; likewise most countries' maritime administrations are similarly too weak to influence

this issue within their governments. This is the unfortunate reality of shipping. It is a tragedy that can only be solved by political will. Economic

consequences are probably the only way to generate the necessary poltical will.

PN | Only States can actually force changes. Petitions will remain petitions. Only when there will be financial impact on trade things will change.

JP | National authorities and IATA/ICAO. Flag States are silent spectators, unfortunately.

A dry version of TMSA is what is required.

SB | That is essentially what is intended by Intercargo and RightShip's efforts. But two different standards will not be helpful and greater stakeholder

involvement is necessary to oversee a unified standard.

PN | A Self Assessment duly implemented and not on paper is required. Format and contents will need to address the known risks.

JP | Do we really?

How do you see the ways the services providers at the ports may be in the same level, in line with owners expectations or needs?

SB | Accountability at all levels is necessary.

PN | Vessel is always the convenient target. Deviations from pilots, tugs, linesmen, foremen, dock workers, service men go often unoticed.

JP | Fragmented and there are no international standards for them to comply. Even ISPS Code - onus is on ships to comply and ships get detained if

Stowaways board. Ship Owners and crew are always on the receiving end.

It would be interesteting to hear about their expectations and perceptions about Brazil today and for the near future?

SB | Brazil continues to face a variety of significant challenges, but their leading place in dry bulk will remain and in the longer-view these challenges will be

overcome.

JP | They are resilient people. They will tide over the crisis.

Are the Bulk Carriers owners and operators looking to IT vendors to develop operations and cost optimising solutions or relying on in-house IT to look

after their needs? Are costs the main concern?

SB | IT solutions are necessary, but never as easy as envisioned by the programers nor the users. There are more IT facilitated solutions under development

than ever before and the larger companies typically are the early movers. Ideally, once technology is proven, its cost comes down and it becomes available

to smaller companies as well.

PN | Depends on the size o fthe company and its needs. Generic off the shelve solutions are often not suitable.

JP | Effective IT solutions are severely lacking. A lot of piecemeal solutions are offered which doesn't handshake (communicate) with each other.

In ECSA for grains specially have been seeing higher freights as from July 2020. Any comments on your visions?

SB | We remain optimistic for 2H 2020, but Covid-19 remains as a wildcard.

Totally different topic, but maybe interesting, visiting the vessel, join forces with a couple of Managers and use their networks to visit and inspect

vessels?

PN | Do not see this happening.

JP | Remote inspections with crew are being done. Crew are on the forefront and create a culture within the company and empower them as owners. In

Pacific Basin Shipping, crew are empowered as owners "22 Crew, 22 Owners".

The bulk industry now has two benchmarks ..one from Intercargo and the other from Rightship. Is this going to create a level playing field or just more

confusion?

SB | Two benchmarks will cause confusion. There is a general willingness to develop a single solution, but this is easier said than done.

PN | Only one tool will finally be in operation. Discussions and evaluation of different proposals is beneficial.

JP | We don't have yet have two benchmarks, though this is being reviewed. Indeed, we shouldn't have two benchmarks.

In the present pandemic, instead of relying on the governments, what are the ship managers / owners doing for their seafarers ?

SB | This is the number one challenge for shipowners and any and every step is being taken. Much more work needs to be done and we need to support of

principle government leaders and the airlines.

JP | Where crew change is permitted, crew are relieved even by arranging charter flights to countries which permit them. Crew on shore get an adavnce if

they are recruited direct by the company and their documents are with the company.

Does the panel honestly feel that these new standards would help safety of the marine industry? Or is it another tool to just to drive the commercial

aspects?

SB | I believe it is undeniable that vetting and a self-assessment standard has improved many aspects of the tanker industry. The risks have changed and

ship operations are never safe enough, but a similar approach for dry bulk is likely to achieve desired improvements.

PN | TMSA has raised the bar. Although parts of it are bureaucratic, the fact is the safety and environmental records have improved. A tool for bulkers, truly

implemented, will assist. Commercial aspects are equally important. Charterers need re-assurance.

JP | It is to generate revenue model for Rightship and to drive the commercial aspects by some BIG charterers and trading houses. Unless Rightship/IMO

target terminals and pilots, tugs, approach channels etc, it will be a paper exercise and whip to beat the ow

This is a market question for Will Tooth of MSI. I would like to ask with regards to the iron ore market, why is it dependent on the swing of Brazil when

the output capacity of Australia is near maximum? Would really appreciate the clarification. Thanks!

WT | Since Australia is near capacity, Brazil was the main possibility for growth in iron ore market in 2020. The disruptions there have taken a toll on the

whole seaborne iron ore market.

Unlike Liners, bulk carrier trade routes are not fixed and hence pose a bigger challenge with respect to crew change planning. What is the response

action plan from companies such as Oldendorff/Pacific Basin who are primarily based on bulk carrier trade?

SB | We are organising crew changes whenever and wherever possible, including significant voyage deviation as well as whatever requirements (eg.

individual Covid-19 testing and monitoring and company paid for quarantining periods required before joining and after offsigning.) Despite this, flights are

being cancelled and country policies are being changed literally while crew are already enroute. It is untenable.

JP | We change crew wherever we can at whatever cost and by deviating 1-2 days from the normal route. Work with crew to keep them calm. We need

Governments support..

In the present volatile markets, are bulkl carrier operators/owners sharing databases to facilitate freight sharing to sustain the business? What is the

level at which bulk trade charterers and operators partnering on cargoes for maintaining business?

SB | Not to our knowledge. Sounds like a conflict with competition laws.

PN | That would be an oligopoly and cannot materialise.

JP | Never happened and I don't think this is likely.

Why are the bulker market more volatile compared to tankers?

SB | Larger diversity of commodities, economic fundamentals are much more broad, few large countries with significant demands can quickly influence the

whole market with a sudden change.

PN | I believe it is equally volatile.

JP | Supply -demand imbalance. Owners have short memory and order ships and drive the freight down.

Some of the industry analysts were quite optimisitic when China announced the easing of their lockdown restriction, is China alone enough to get dry

bulk carrier at better levels with optimistic returns? Considering China covers the lion share of the dry bulk market...

SB | China significantly impacts the dry bulk industry.

JP | China could tip the scales in the dry bulk sector.

Why is it that information sharing is restricted on a commercial aspect but the industry is willing to share information when it concerns the self

assessment initiatives? If data is the key, does any of the panelist think information sharing could be a catalyst to improving the dry bulk market?

SB | Commercial data sharing could result in illegal price fixing. Safety, environmental protection and crew welfare process and procedure sharing hopefully

results in highly desireable "fixing" of our challenges in these areas.

PN | Like in any business sectors, commercial information is sensitive and valuable.

JP | Self assessment is for safety and quality. Not for commercial info annd revenue. However, public companies post their results for anyone to see. Data

sharing of commercial information ? - I don't see it. How would it improve dry bulk market? if scrapping.

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