1. The Shipping Trade Return to AIMU Website

2. First came the viking cargo ships, the knarr. They were able to sail mostly downwind but required the use of oars. Staying mostly within sight of land, they knew a little about prevailing winds and navigated with the aid of a sundial and a sun stone. Return to AIMU Website

3. In the early 19th century Clipper ships sailed all over the world. Not much was required to sail the vessel except a strong back, a loud voice, and a basic knowledge of navigation. Navigational equipment probably included a compass, a sextant and a telescope. Life expectancy for the vessel was no more than a couple of years. Return to AIMU Website

4. Gyro Compass (maybe) Gyro Steering Stand (Doubtful) Radar (2) (used only approaching land) Loran A (probable) RDF (required) Fathometer (required) Radio Equipment (+ Operator) Telegraphy A cargo ship in the 1950’s and 1960’s was more fully equipped : Return to AIMU Website

5. The Norm in 2005 - Bridge  Compasses  Gyro (2) (digital)  Electronic compass (probable)  Magnetic compass Sonde  Digital Steering Stand  Radar (2)  Digital with built in ARPA  Loran C (fully automatic)  GPS (Multiple)  Fathometer  Speed Log  ECDIS  Weather Fax  Loggers  Computer weather  E-mail  Digital Communications  AIS  SSAS  Web Cams  LookSea augmented reality  GMDSS Return to AIMU Website

6. The Norm in 2005 – Engine Room Steam Plants Diesel Diesel Electric Gas Turbines Generators Sewage Treatment Facilities Air Conditioning Systems Hydraulics Evaporators Controlled by a modern computerized control room Return to AIMU Website

7. In the early part of the 21st century, the face of shipping is quite different. Shipping has become a heavily regulated industry. Crews have to be increasingly well educated and trained and conform to regulations and procedures designed to protect cargo, crew, investors and environment. No longer as subject to the vagaries of wind and weather, modern cargo vessels are increasingly becoming the transportation mode of choice. Return to AIMU Website

8. Changing Dynamics in the supply chain of ship board officers and crew have also occurred Traditionally, the world’s economic powers built the ships and trained their citizens to operate them Today, the citizenry of the developed countries are less likely to seek careers at sea Today’s ships are much more likely to have been built in a foreign yard and have a multi-national crew Significant shortages of qualified ship’s officers and crews are expected over the next decade in all segments of the shipping industry English is the official language of shipping yet for the vast majority of ship crews, English is a foreign language. Return to AIMU Website

9. The MEGA BORG released 5.1 million gallons of oil as the result of a lightering accident and subsequent fire. The incident occurred 60 nautical miles south-southeast of Galveston, Texas on June 8, 1990. Human error remains the #1 cause of shipping accidents Return to AIMU Website

10. The New Era Natural gas is the economic/environmental fuel of choice 96% of natural gas reserves are located outside North America 25% of world natural gas consumption occurs in the U.S. We are entering a new era in LNG shipping with the imminent arrival of the first very large tankers with more that 200,000 cubic metres of cargo capacity. These tankers have new forms of propulsion (slow diesel or duel-fuel) and new technology such as reliquefaction plants on board. Return to AIMU Website

11. LNG ships are more technically advanced and carry a cargo unlike any other Cargo is carried at extremely cold temperature LNG can only be carried in specially designed ships Loading and discharge process is different from other tankers Cargo immediately starts re-gasification process (boil-off) Highly reduced volume 1/600 th Most ships are steam powered Re-liquification & re-gasification plants on board Return to AIMU Website

12. LNG ships and the industry in general have enjoyed an unprecedented safety record for nearly 40 years. Why? Excellence and continued training of crew Experienced officers with long tenure in the LNG industry Superior quality of ships and equipment Long term contracts with point to point delivery Controlled and sustainable growth (supply continually meeting demand) Quality control instituted by the owner/operators Return to AIMU Website

13. The Demand Time-lineNumber of ships In service as of September 2004174 ships (including 28 ships delivered since January 2002) In service as of May 2005182 ships Expected new contracts for 200550-65 (21 are firm orders) Expected on order at end of 2005143-158 Expected total of LNG fleet by end of 2009 339-354 Return to AIMU Website

14. Traditional and new entrant operators, and delivery years of new LNG ships (as of September, 2004) Operators20042005200620072008Total Traditional Operators Misc1225212 Gas de France111003 Golar102104 Exmar111003 Nigeria LNG221005 MOL035008 Pronav000134 NYK012508 Sonatrach100102 Bergessen021227 Lief Hoegh011002 Kawasaki012205 Sub-Total7141817763 New Entrant Operators Teekay101204 Petronet100001 Angelokousis (Maran)012104 Moller/Maersk001001 BG Group003317 Knutsen001001 TMT001001 Tsakos000101 Dynacom000213 Cosco000112 Sovcomflot000101 OSG000224 Iino000011 Sub-Total21913631 Total91527301394

15. RESULT = SHORTAGES Return to AIMU Website

16. Shortage of adequately trained officers and crew to meet increased manning requirements Return to AIMU Website

17. Composition of seafarers on board an LNG ship NavigationEngine MasterChief Engineer Chief Officer (Nav.)1 st Assistant Engineer Chief Officer (Cargo)2 nd Engineer 2 nd Officer4 th Engineer 3 rd OfficerJunior Engineer Total 5 Officers Return to AIMU Website

18. Composition of seafarers on board an LNG ship Navigation DepartmentEngine DepartmentPurser’s Office BoatswainOiler No. 1Chief Cook BoatswainOilerSecond Cook Able SeamanOilerMessman Able SeamanOiler- Able SeamanOiler- Able SeamanFitter- Able Seaman-- Ordinary Seaman-- Total 8Total 6Total 3 Ratings Return to AIMU Website

19. Composition of seafarers on board an LNG ship Senior Officers (Management Level)6 Junior Officers (Operational Level)4 Total number of officers10 (Note) 1 st Assistant Engineer is a management level engineer in charge of cargo Ratings17 Total composition27 Summary Return to AIMU Website

20. Estimated demand for officers for LNG ships on order YearDeliveriesNewly Required Seafarers TotalOfficers* 2004(4 th Qtr)2 delivered15652 (32) 2005201,560520 (312) 2006272,106702 (422) 2007302,340780 (468) 2008-201086-1016,708-7,8782,236-2,626 (1,342-1,576) Total165-18012,870-14,0404,290-4,580 (2,576-2,810) * Figures in parentheses show the number of Senior Officers (Management Level) Return to AIMU Website

21. Shortage of qualified engineers with steam endorsement Return to AIMU Website

22. Estimated demand for turbine engineers YearDeliveries Newly required turbine engineers OfficersSenior Officers 2004(4 th Qtr)2 (delivered)2616 200520260156 200627351211 200730390234 2008-201086-1011,118-1,313671-788 Total165-1802,145-2,2901,287-1,374 Return to AIMU Website

23. Shortage of time to adequately train senior officers from a different segment of the shipping industry to meet the qualifications for commanding LNG ships Return to AIMU Website

24. Suggested training scheme for personnel on LNG tankers Training General qualification for shipmaster, deck & engine departments Appropriate shore-based fire-fighting course Approved tanker familiarization course At least 3 months approved seagoing service on tankers Tanker familiarization certificate Experience appropriate to duties on LNG tankers Approved specialized LNG training program Certificate awarded Dangerous Cargo Endorsement (Gas) Service in positions with immediate responsibility for loading, discharging and care in transit or handling LNG cargoes Return to AIMU Website

25. Shortage of training billets aboard existing LNG ships to be able to meet the loading and discharge qualification requirements Return to AIMU Website

26. Shortage of LNG simulators and qualified instructors Return to AIMU Website

27. Consequences? LNG ships sit idle, cargo doesn’t move – highly unlikely Poaching of qualified senior LNG officers from one company to another occurs LNG ships sail with minimally trained (qualified) crews Serious accidents occur. Return to AIMU Website

28. Solutions: First, industry must recognize the looming problem International training standards for the LNG industry must be established by IMO and national entities Training programs for converting senior officers from one type of ship to LNG ships must be developed LNG companies must work together in order to provide training billets aboard LNG ships Underwriters and financiers should insist on some level of crew training and certification World’s maritime academies must start process of providing basic LNG training to their undergraduate students SIGTTO and IAMU are developing model courses Return to AIMU Website

29. The Need Return to AIMU Website