SHIPS ARE MADE OF STEEL

HEADS ARE MADE OF WOOD

........

How to get in trouble I get a request to present a paper to DS Bergen Being in a bad mood, I jokingly reply with the title:

Ships are made of steel, heads are made of wood: how come it is still so bloody difficult to get IT on board ships in 2013

After 5 minutes, I write a mail with the «real» title: A look at how ships will be managed in 20 years from today

After 10 minutes, I get the reply: Cathy says your title is great, she will only remove the «bloody»

Why did I come out with that title?

I was totally exhausted after long discussions with a large customer, who had totally refused a price increase of our maintenance fees

The total increase requested was 500$ more per year, per ship

The customer is an excellent user of AMOS, and has repeatedly stated that we has gained enormous benefits from AMOS

The discussion made me ponder on the advantages of working in my garden.....

Now what? My staff, who believed in the law: «the higher the

rank, the lower the I.Q.» now think that they have the final evidence.....

I need to explain to all of you that only some of you have heads made of wood, or maybe it is better if I say that only the ones outside this room have heads made of wood.......... I still would love to go home in one piece...........

The cost of installing IT on ships: Software, DB and training Replication (communication) costs Stock audit (rare) Training and re-training Human resistance More human resistance Problems and issues

We all know.....

What most do not know.....

Is the cost of NOT doing it: Non compliance and fines Inefficiencies Thefts and pilferages Losses and wastes Insouciance (the «who cares» syndrome) Higher costs

What we all know

TANKERS • In December, 24% more ships than cargos in

the Arabian area • Tankers earnings down 62% Nov to Dec12 • VLCC rates dropped 53% in 2012, and are

losing 6,4000$ a day

NEWBUILDINGS (outstanding orders) • 2013 – 6,8% of existing capacity • 2011 – 13% • 2008 – 47%

PwC discovered that the average return on equity among the companies it surveyed was minus 2%, compared with plus 3% the year before and 21% in 2007.

China slow growth stopped Chine oil imports up 9%

But we may not realize that......

NAME STATUS AMOS ON BOARD? Beluga shipping Bankrupt NO Korea lines Bankrupt NO General Maritime Bankrupt (Ch.11) NO Eagle Bulk Under restructuring NO BLT Malaysia Close to bankruptcy NO Deiulemar Shipping Bankrupt NO D’Amato Giuseppe Bankrupt NO Di Maio Lines Bankrupt NO De Poli Bankrupt NO Rizzo Bottiglieri Carlini Bankrupt NO Saarland Bankrupt NO Marco Polo Bankrupt NO Stargas Bankrupt NO Sanko Bankrupt NO Navigator Bankrupt NO NEL Lines Bankrupt NO Allied Maritime Bankrupt NO B&H Ocean Bankrupt NO OSG Bankrupt (Ch.11) NO

> 100 KG companies have gone bankrupt in Germany, for over 400 ships. NOT ONE had AMOS (or any other system)

Only in Rwanda Burundi? Report of Investigation into the Circumstances Surrounding the

Explosion, Fire, Sinking and Loss of Eleven Crew Members Aboard the

MOBILE OFFSHORE DRILLING UNIT DEEPWATER HORIZON In the GULF OF MEXICO

April 20 – 22, 2010 Volume I

Pages from 19 to 20 (xviii and xix in the report)

Transocean The investigation has shown that over a period of years and in the time leading up to the casualty, Transocean amassed numerous deficiencies in the area of safety, including: • International Safety Management Code Violations: Both Transocean and

DEEPWATER HORIZON were required to have a safety management system that complied with the ISM Code, the purpose of which is to ensure safety at sea, prevent injury or loss of life, and avoid damage to the environment. The investigation, however, determined that Transocean had a history of ISM Code violations on DEEPWATER HORIZON and other vessels.

• Poor Maintenance Record: Two recent audits of DEEPWATER HORIZON found numerous maintenance deficiencies that could impact safety, including problems with firefighting, electrical, and watertight integrity systems. In particular, the audits found that, contrary to the manufacturer’s guidelines which called for inspection and certification of the blowout preventer (BOP) every three to five years, Transocean did not arrange to have the DEEPWATER HORIZON BOP (BlowOut Preventer) recertified for over ten years. In addition, key BOP parts had “significantly surpassed the recommended recertification period” and needed to be replaced.

• Crew Training and Knowledge: Transocean failed to ensure that its onboard management team and crew had sufficient training and knowledge to take full responsibility for the safety of the vessel. The master acknowledged that the training he received on the Safety Management System consisted of viewing a PowerPoint

presentation, the content and whereabouts of which he was unable to recall.

Is there a link?

Does IT really helps in managing a fleet, or not? Why is it that the use of corporate high level ERP

solutions in shipping, after a quarter of a century, is NOT considered as a strategic, compulsory solution

Why can an even small land base industry invest heavily in an ERP solution, but shipping doesn’t

Can you imagine SAS without a CMMS? Why is compliance still avoided and avoidable?

Where are the problems?

Selection of Clip Arts When entering the word «Problems» in search field

Do we hate computers?

It’s a tool, stupid Can you imagine a Supermarket that does not make

use of barcodes? When you go to a store to buy something, can you

imagine the clerk disappearing for 2 hours to look for it in a pile of items in the back of the shop?

And I bet you all have I-pads, I-phone..... So let’s not have some I-diots to deal with

We are all at fault The Shipping industry, who is always behinded (like

«retarded» ....) The Suppliers.... Who suffer of the «Microsoft» syndrome (my

SW is longer and harder than yours) and believe that they will sell more and become zillionaires in 2 years (in shipping? Even the millionaires are poor in shipping....)

The Users: who always want the software to be better, simpler, do everything and cost nothing and have more colors

The Classification companies: don’t you have anything better to do?

The shipowners: who always take for granted that their employees are masochists who enjoy working for them

So..... Give value to IT in shipping: it’s not easy and it is

costly to build Consider it as a strategic element of Fleet

Management Force suppliers to cooperate more: the shipping

industry needs few, strong suppliers and not a plethora of garage band individuals

To my new employees, at their training course slide nr. 24

For not having killed me so far....