Date: November 2018

James Killingsworth

Technicalmanagement

Technical services Crew services

Crew management

Cost effective, safe, reliable, performance enhancing asset management

Selected services in support of qualified, reliable, professional crew

Supply chain

InsuranceManaging risk for ship owners, through insurance services

Sourcing of the best products and services to support vessels and crew

Provision of qualified, reliable, professional, and safe crew

Selected services in support of qualified, reliable, professional crew

Crew

Catering

Sailing through the storm

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RE

LIA

BIL

ITY

100%

10%

38%

97%

75%

RUNNING HOURSRun to Failurefix after it breaks

PMS – Planned MaintenancePlan, schedule, coordinate and execute maintenance as per company PMS and OEM recommendations

CBM – Condition Based MaintenanceMonitor each of the critical and high-importance pieces of machinery and execute maintenance only when necessary

AI – Predictive Maintenance with Artificial Intelligence ApproachStatistical defect and failure prediction via data mining and CBM input.

Maintenance Approaches

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The 3 key elements that CBM relies upon

SafetyReliability

Performance

Technology

Process

Human Factor

CBM - Condition Based Maintenance is a structured approach.

It can be visualized as condition monitoring cycle that ensures the availability and reliability of the assets.

Allowing them to run safely for longer, continuing to generate positive cash flow and deliver constant ROI

What We Offer

Ø 500,000 Samples Analysed

Ø 1500+ Vessels served

Ø 50 Years of experience at Sea

Ø 1 Goal: Performance Assured

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Timeline of an Incident

Break in cycle

Initiation of chain of events

RiskIncrease

Operation affected

Safety affected

Vessel integrity

compromised

SafetyReliability

Performance

The Norman Atlantic incident is a prime example of the CBM cycle interruption

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• Underwater inspection showed clogged fire

sprinkler systems

• Inspection nine days prior to fire showed

deficiencies of emergency lights, fire-doors

and lifesaving capacity

• Severity of deficiencies wasn’t addressed

SafetyReliabilityPerformance

Technology

Process

HumanFactor

The Safety was compromised due to the Human Factor.

The Reliability of the systems was impacted by the lack of processes and necessary actions not taken.

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When the Cycle is broken…

ü Seatec offers a wide range of specialized services that can help Owners with their every needs

v Seatec employs skilled individuals with decades of onshore and offshore experience. By carrying out a pre-purchase inspection, the Owner will be informed with a detailed, actual, condition report of the vessel and see if he can get a good ROI with the purchase.

v By utilizing the services offered by CBM, the Owner can be certain that the vessel will always be running with the most efficient way, lowering OPEX costs and preventing operational issues. Vessels can operate safely and for longer, continuing to generate positive cash flow in an ever-more competitive market.

v UMC offers full range of underwater inspection, repair and engineering, for seagoing vessels and offshore assets. UMC will support the efficient operation of your vessel by maintaining a clean hull, allowing to keep fuel consumption in check.

What We Offer

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Ship Inspections• Pre-purchase• Condition• Pre/post finance• Scrap voyage• Casualty & damage investigations• Pre-vetting

Technical Advisory• H&M• P&I• Class record• Off-hire Surveys• On-hire Surveys• Cargo Surveys• Yard HSE audits

Underwater Services & Engineering• UWILD• Hull cleaning• Propeller polishing• ROV inspections• Mooring chains• Cofferdams• Maintenance

Condition Monitoring• Lube Oil testing• Fuel testing• Vibration analysis• Shock pulse• SEM• Thermographic• Pre-docking surveys• Ballast water testing• Drinking/sewage water testing

Managing risks for your assets

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• Impact on capex, operations and safety

• Timeline for implementation

• Yearly condition inspection monitoring the trends

• Due diligence, technical advice

• Repairing cost• Defects impacting the

short/medium and long term• DD cost evaluation

• Supported by documentation and pictures

• Clarity on grading

Factual condition

Focus on cost

Regulatory compliance

Life cycle condition

programme

Clear reporting, tailored to the individual client requirements. Highest quality assurance.

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Inspection - Reporting - Rectification

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Underwater Diver/ROV Inspections • UWILD Inspections• Still Photo/CCTV Inspections• Mooring Chains• Cleaning Inspection Measurements• Hose Visual Inspections• Riser Cleaning & Inspections

Underwater Engineering

• Installation/Replacements• Hull aperture Blank Installations• Cofferdam Design & Installation• Hull Repair Services

Offshore Inspection/Maintenance Services

• Hoisting & Lifting Surveys• DROPS Surveys/Inspections• EX Inspections• Derrick Inspection

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Performance Optimisation

Environmental Compliance

- Environmental Sustainability Index- EU MRV (approved reporting)- IMO DCS (approved reporting)- Green Ship Award- Emissions & Environment- Bunker Barratry Prevention- Quality Assurance

Voyage Optimisation

- Route Optimisation- Weather Routing Optimisation

Vessel performance

- Integrated Vessel Performance software

Main & Auxiliary Engine Performance

- Machinery performance- Main Engine Performance Assessment & Trending

- Auxiliary Engine Performance Assessment & Trending- Planned Maintenance History

Integrated Asset Performance

- Systems Performance- LO/FO Test Reporting

- Planned Maintenance HistoryUnderwater Hull Condition Reporting

Vessel Data Capture

• Greater operational overview• Vessel performance dashboards• Detailed intelligence overview (vessel area, market, etc.)• Reduced Administrative Burden• One-Stop-Shop for performance and underwater husbandry

• Higher vessel earning potential• Route Optimisation• Reduced Off-Hire• Improved overall vessel performance

• Fuel consumption reduced• Lubricating oil savings• Reduced maintenance costs

• Early identification and rectification of machinery issues• Lower vessel off-hire• Incident / Accident / Findings reduction on-board• Warning of Incidents / Adverse Weather

Revenue Addition

Cost Savings

Cost Prevention

Enhanced Operations

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Benefits of Integrated Performance Service

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Our Strengths

Ø Marine Engineering Expertise

Ø “Real Life” Diagnosis

Ø Up to Date On-board

Ø Experience

Ø Independent

Ø Globally Managed Logistics

Ø Expert Helpline

Report Delivery Online Cloud DatabaseDashboard Interactive View

One of our clients did not have in place a Lube oil

Reporting system on board their vessels. That resulted in damages and non- conformities during inspections.

After our system was introduced on-board its vessels, no more damages connected to Lube oil condition have been detected.

Additionally, no more NCs or observations on OCM were recorded.

Thanks to our online cloud Database, both the vessel and the Superintendent can access the results in real time and get information and historic trends for all the machinery onboard.

We offer a developed in house- app available for iPhone and

Android that simplifies the reporting and record-keeping.

Advanced Bespoke Reporting – Lube Oil

Advanced Bespoke Reporting

96% 96% 92% 96% 98% 97% 95% 95% 97% 97%

4% 4% 8% 4% 3% 3% 5% 5% 3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Antwer

p

Bremen

have

n

Houston

(TX)

Singa

pore

St. Pet

ersb

urg

Rotterd

am P

orts

Long

Bea

ch (C

A)

Algec

iras

Piraeu

s Por

ts

Las Pal

mas

Main Ports Supplying Off-Spec Bunkers 2017Off-Spec On-Spec

• Bunkers Test Breakdowns• Off-spec causes• Ports and Suppliers at Risk of supplying Off-spec Bunkers

FO/MDO/MGO Analysis, Lubricity & Compatibility Test

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Case Study – Emergency Generator

The main indicators were :

• The reduced flashpoint – indicative of distillate fuel ingress• The reduced viscosity at 40°C and 100°C –

In the process of analysing one of the samples for a 18,000 TEU container vessel, our team discovered abnormalities with kinematic viscosity and flash point on one Aux. Engine oil sample.

Swift action was taken by our team which immediately highlighted it to the vessel, indicating a suspect leak with fuel injectors and fuel contamination of the oil. The next step was launching an investigation carried out by the vessel’s crew to confirm the severity of the situation.

The Aftermath

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• The Chief Engineer and the Second Engineer inspected the generator and reported:

• “We had Checked Emergency generator LO sump tank source of distillate fuel contamination and we discovered three injectors (cyl. 4,5 & 6) has an indication of fuel leak. All injectors was overhauled and cleaned injector needle, after completed change oil take placed. “

• 3 injectors showed signs of fuel leakage.

• These injectors were removed and overhauled.

The issue was quickly resolved successfully, without causing any major issues to the vessel’s operations, because it was caught early by our team.

Ø DETENTION: Potential seizing of engine, preventing start-up. Had this happened during PSC inspection, it could have resulted in detention until fault was rectified.

AVAILABILITY:The ability to overhaul at the vessel’s convenience avoided the high costs usually associated with urgent repairsand enabled the crew to properly schedule the maintenance, without affecting the hours of work and rest requirements set out in the MLC.

• EXPLOSION: Fuel dilution in engine lubricants has been known to cause crankcase explosions. This presents a clear fatality risk as well as major complications in terms of repairs and disruptions.

What was avoided…

Case Study - Handysize Tanker OPEX Reduction

Vessel Type: Tanker, Handy (32k DWT)

DWT: 25421

Year Built: 2008

Year Switched to SeaTec: 2016

Compounded Saving Achieved: -8%

Tankers Average SavingsØ -39% Cylinder Oil

Ø -23% System Oil

Ø -16% Auxiliary Engine Oil

Ø -37% Other Oils

- 3,000 6,000 9,000 12,000 15,000 18,000

Gear OilGrease

Multi-grade Auxiliary…Hydraulic Oil

Turbine OilStern Tube…

Compressor OilAuxiliary Engine Oil SAE 40

OtherAuxiliary Engine Oil SAE 30

System OilCylinder Oil

Tankers - Avg. Order Size for Different Oil TypesSeaTec Non-SeaTec

A recent study conducted on 760 vessels, using SeaTec’s independent lab services for their LO analysis highlighted a reduction of lubricant

consumption across all vessel types and ages (mainly for vessels 0-5 years old and 20+ owing to the bathtub effect)

Case Study – High SN on-spec fuel

Upon arrival to Jorf Lasfar, Morroco, soon after having started to use a new on-spec fuel purchased in Houston, the vessel was stopped and an attempt to start in Astern failed. More failed attempts followed this (more faillures than success). It was then decided to switch to MGO, but this did not solve the situation and the starts were failing almost at all attempts.

The crew carried and the Superintendent carried out their own investigation on-board and it revealed :

v Injection pumps: leakage was observed under the pump while engine was stopped and inlet valve closed, still large amounts of fuel were leaking.

v Injection pump #6: plunger showed a heavily worn surface with cavitation on several areas and scratches.

v Injection pump #1: the same wear pattern was shown on the plunger of this pump, but with heavier wear.

v All piston rings of all cylinders: sharp at the top and the bottom, worn more than 1.2 mm.

v All liners: scuffed, but still show traces of machining marks.v All piston crowns: Polished carbon deposits on top-land.v Piston ring on piston 1: collapsed.v Piston ring on piston 3: broken.v Liner #6 : machining marks clearly visiblev All piston rods: shallow vertical scratches.v Piston rod #6: signs of corrosion.

The story and findings

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Seatec was contacted in order to support the superindent throughout the process and assist in identifying the underlying factors that resulted in these damages, so as to be able to claim from the supplier.

Seatec proceeded to recommend and execute the following tests, in order to identify the root cause :

v RSNv FAMEv GCMS

Through these tests it was possible to identify the presence of fatty acid methyl-esters, decanoic acids and other acidic compounds, together with phenolic compounds and abnormally-high separability number. The components identified lead to an increase of filter blocking, hampering fuel pumps performance and tending to form asphaltenic deposits very quickly, causing failure of injector nozzle and needle valves as well as damaging and inducing accelerated corrosion.

In this specific case. worn pumps have also led to low quality combustion in the cylinder. The low quality combustion caused the “Polished carbon” deposits on the piston top-land that affected the cylinder lubrication, consequently scuffing the liners.

SeaTec’s Plan of Action

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Financial Impact

The accumulated damages for that vessel were severe. The owner had to spend a lot of money in order to make the necessary repairs and to avoid off-hire for the vessel. The vessel was off-hire for 4 days

Approximate cost for replacing all damaged parts

Injection pumps- 2 units had to be replaced due to excessive cavitation

Total Cost for new Injection Pumps : 10,000 $USD

Liners – All liners showed signs of scuffing and machining marks. Unit #6 had to be completely replaced

Total Cost for 1 new Liner : 19,000 $USD

Piston Crowns – All piston crowns had carbon deposits and were in very bad condition overall

Total Cost for 2 new piston crowns and spare parts : 12,000 $USD

Piston Rods – All piston Rods were in poor condition with shallow scratches and signs of corrosion

Total Cost for Overhauling 3 pieces : 6,000 $USD

These costs could have been avoided if the vessel was carrying out Condition Monitoring tests on regular intervals. The owners and Superintendents would have been able to identify the issues faster and tackled the problem before it caused major issues

** 2014 Daily rate for Mid Sized LPG Carrier was 32,000 USD$

Cost of Repairs 50,000 $USDImpact from Off-Hire ** 128,000 $USD

Total Financial Impact of Incident 178,000 $USD

QuestionsJames Killingsworth Email: james.killingsworth@vships.com

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