Thinking about tomorrow today

GEARBULK
Thinking
about
tomorrow
today
Sustainability
Report
2011
Our vision, our mission, our values | Contents
GEARBULK
Contents
Our sustainability vision4
Message from our Chairman Kristian Jebsen5
Gearbulk and the Sustainable Shipping Initiative6
The big picture8
The dry bulk fleet
10
Shipping and the environment
12
Company profile
Gearbulk’s history
16
Gearbulk today
18
Governance24
Our vision
Our mission
Our values
To be pioneers in developing
reliable services that meet
the evolving needs of our
customers in a sustainable
manner and thereby
deliver enduring value
and opportunities to all
stakeholders.
To excel in operating a global
network of industrial, innovative
and competitive ocean
transport services anchored in
responsiveness, performance
and sustainability.
• Professionalism – We use
our expertise to develop long
term value
• Teamwork – We cultivate
lasting relationships through
dialogue and shared goals
• Drive – We achieve our
results through performance
and commitment
•Creativity – We initiate
and implement change to
strengthen our business
2
Our business
24
Our people
28
Our planet36
Environmental initiatives
38
Environmental performance 2011
40
Environmental management system in action
41
GRI Indicators42
The Gearbulk fleet46
Glossary49
Feedback and contact details51
3
Message from our Chairman, Kristian Jebsen
Message from our Chairman,
Kristian Jebsen
Welcome to Gearbulk’s first Sustainability Report.
Sustainability is an important
priority for us and it is
embedded into our long term
strategic plan.
We believe that sustainability
is fast becoming a key
differentiator in the supplier
selection process and it is
our aim to be the supplier of
choice in the sectors in which
we operate.
Our sustainability vision
To become an industry leader in creating
enduring value by taking responsibility
for the future through the choices
we make today. This means:
•Clear and consistent leadership
whilst engaging our employees
•Transparency and improving our economic,
environmental and social contribution
It has been an active year for
us in the sustainability field.
I was very pleased to attend
the launch of the Sustainable
Shipping Initiative’s Vision
2040 in London in October.
As a founding member of
this initiative, we believe
that leadership and vision to
shape our industry’s future
must come from within. This
is an important role for us to
embrace and we are convinced
it will positively impact our
business.
To drive forward our
sustainability ambitions, we
established a Sustainable
Steering Group made up of
representatives from across
the company, which held its
inaugural meeting in November.
As part of our commitment to
reduce the carbon footprint
of the cargoes we carry, we
continue to replace our older
vessels with new, larger vessels
that burn considerably less
fuel and maintain a focus
on our fleet energy efficiency
improvement programme.
‘To take responsibility for the
future through the choices we
make today’ is the vision we
have. I hope that this report will
give you an insight into what
Gearbulk is doing to contribute
positively in the areas where
we do business and can make
a difference and in doing so
demonstrate our commitment
to the future.
Enjoy your read.
Kristian Jebsen
We are committed to
responsible business
engagement with our suppliers
and customers and rolled out
our Anti Bribery and Corruption
policy in 2011. In 2012, we are
strengthening our corporate
business standards with an
Ethics Policy and Code of
Conduct.
•Developing human potential and
collaborating with those who share
our vision locally and globally
4
5
Gearbulk and the Sustainable
Chapter
Shipping
| sub-section
Initiative
Gearbulk and the
Sustainable Shipping Initiative
Gearbulk is a founding member of the Sustainable Shipping
Initiative (SSI) which brings together leaders from across
the shipping industry and respected Non-Governmental
Organisations (NGOs) Forum for the Future and WWF who
share a desire to create a more sustainable industry.
In May 2011, the SSI launched
its Case for Action which
examines global trends which
present key challenges but
also opportunities for the
shipping industry.
• Transparency and
accountability drive
performance improvements
and enable better,
sustainable business
decision-making
In November, Vision 2040
was launched. This vision
of a successful sustainable
industry means:
• Proactively contributing to
the responsible governance
of the oceans
• Changing to a diverse
mix of energy sources,
using resources more
efficiently and responsibly
and dramatically reducing
greenhouse gas intensity
• Providing safe, healthy and
secure work environments
so that people want to work
in shipping, where they can
enjoy rewarding careers and
achieve their full potential
• Earning the reputation
of being a trusted and
responsible partner in the
communities where we live,
work and operate
• Developing financial
solutions that reward
sustainable performance and
enable large-scale uptake
of innovation, technology,
design and operational
efficiencies
6
This vision is backed up by
commitments in the form of
specific work streams which
will demonstrate where and
how there is the most potential
to accelerate change. The first
four work streams which are
being launched in 2012 are:
3.Producing credible
benchmarking to drive
improved sustainability
performance by helping
the industry navigate
the confusing array
of ‘green’ standards
which currently exist
4.Promoting the uptake of
low energy technology
by developing robust
business cases for ecoefficient technologies and
operational techniques
1.Developing new approaches
for the financing of
sustainable shipping
2.Reducing the lifecycle
impact of ships by
developing systems
to radically improve
the transparency and
accountability of the
impacts of all materials
used in ship building.
Establishing ways to further
improve ship recycling and
reducing the use of nonrenewable resources
For more information, please visit
www.forumforthefuture.org/project/sustainable-shipping-initiative
Kiwi Arrow off
Rio de Janeiro
7
The big picture
The big picture
The shipping industry faces a challenging and complex future which will be shaped
by emerging global mega trends, transforming the way our industry operates.
8
World population will reach
seven billion in 2012 and
is projected to reach nine
or even ten billion by 2050.
Developing nations are
expanding their influence and
economic activity. The global
middle class is burgeoning.
All of which will sharply
increase demand for goods.
Technology is advancing
rapidly on all fronts, including
ship design, keeping pace
with increasing pressure to
reduce use of non-renewable
resources by building evermore energy efficient ships
using environmentallyfriendly materials, both
recycled and new.
The culture of economic activity
and growth is drifting to Asia.
This, coupled with development
in previously under-developed
areas to bolster dwindling
natural resources and sustain
the growing population, will alter
trade patterns. This will present
risks but also new opportunities
for the shipping industry.
Fossil fuels which enabled
the industrial revolution
and which still power most
industry and transport, are not
inexhaustible. As with other
industries, shipping recognises
the need to transition from total
dependency on oil to a mix of
renewable and other low-carbon
energy sources.
Climate change is influencing
weather patterns, which in turn
is affecting food production,
water availability and region
habitability. The desire to
manage climate change has
led to the world’s first global
legislation on CO2 – all ships
built from 2013, will have their
CO2 emissions regulated. More
legislation will surely follow.
In our increasingly interconnected world, there
is a growing demand for
transparency. Business
success is becoming
increasingly linked to a
willingness to publicly share
environmental, financial and
social performance.
The recent global economic
boom and bust has
exacerbated shipping’s
challenges. Decreased global
demand for goods and an
oversupply of vessels have
seen freight rates in some
sectors plummet. Falling
earning potential has caused
vessel values to follow the
same path. This, coupled
with reduced access to
finance, rising bunker costs
and increased regulatory
pressure all combine to
create a difficult operating
environment for ship owners.
Piracy, with more than 400
recorded incidents worldwide
in 2011, continues to
present a major challenge
for the shipping industry and
particularly its seafarers.
At any given time hundreds
of seafarers are being
held hostage in appalling
conditions, often subject to
psychological and physical
abuse. In addition to the
human cost, piracy costs
the global economy several
billions of dollars annually in
additional fuel, security and
insurance costs.
The big picture
Source: Clarkson Research, July 2012.
Refer to P48.
9
The big picture | The dry bulk fleet
The dry bulk fleet
4,000
3,500
3,000
Dry bulk fleet demolitions by DWT
Total:
5.5m dwt
Total:
10.7m dwt
Total:
23.0m dwt
Total:
6.4m dwt
2,500
Toki Arrow
loading potash
2,000
1,500
Growth in most sectors of the
4.0
1,000
dry bulk fleet fell throughout
3.5
2011, although Panamax growth 500
3.0
remained on an upward trend.
Dry bulk fleet demolitions by DWT
Total:
0.6m dwt
0
To limit the impact of poor
rates, high fuel prices and
vessel oversupply, slowsteaming became a significant
factor and was helpful in
removing some of the surplus
capacity on a temporary basis.
Very limited newbuilding orders
reflected the poor market
conditions. Continued high scrap
prices encouraged many owners
to recycle older vessels – some
earlier than their intended
service life –making 2011 a
record year for demolitions,
totalling 23m dwt compared
with a total of 23m dwt over
the previous four years.
Since 2008, some 34% of
newbuilding orders have been
cancelled or rescheduled, a
trend that is likely to continue
in the short term.
2.5
2008-01
2.0
Total:
5.5m dwt
Total:
10.6m dwt
2009-01
Handysize
Handymax
2010-01
Panamax
Total:
6.3m dwt
Total:
23.0m dwt
2011-01
Capesize
Source: Gearbulk Research
1.5
1.0
0.5
0
2007-01
2008-01
Handysize
Handymax
2009-01
2010-01
Panamax
Capesize
2011-01
Source:
Clarkson’s
Research
JulyJuly
2012.
Refer
to page
4848
Source:
Clarkson’s
Research
2012.
Refer
toResearch,
page
Source:
Gearbulk
Clarksons Intelligence Network
25
20
Dry bulk fleet newbuilding orders by DWT
Total:
169.5m dwt
Total:
106.6m dwt
Total:
37.1m dwt
Total:
101.0m dwt
Total:
38.9m dwt
2011-01
Despite the rebound, the
average BDI in 2011 was
44% lower compared with
2010 and average charter
rates dropped 60% from
$35,000 per day in 2010 to
$14,000 per day in 2011.
4,500
Baltic Dry Index
Quarterly average
4,000
3,500
2010
3,000
2,500
2,000
1,500
2011
1,000
500
0
Q1
Q2
Source:
Q3
Q4
Source: Clarksons
Research,
2012.
Referto
to page
page 48
Clarkson’s
Research
JulyJuly
2012.
Refer
48
15
10
5
0
2007-01
2008-01
2009-01
2010-01
Handysize
Handymax
Panamax
Capesize
Source:
Clarkson’s
Research
July 2012.
ReferRefer
to page
48 48
Source:
Clarkson’s
Research
July 2012.
to page
End of 2011
Handysize
Handymax
Panamax
Capesize
Total
Fleet size (m dwt)
84
126.9
155
249.3
615.2
Annual fleet growth
3%
16%
14%
19%
15%
Orderbook (m dwt)
21.1
38
73.7
95.5
228.4
Orderbook (% of fleet)
25%
30%
48%
38%
37%
Source: Clarkson’s Research July 2012. Refer to page 48
10
The Baltic Dry Index (BDI)
began 2011 at almost half
the rate compared to 2010.
It remained weak through
the first half of 2011, before
rebounding in the second
half of the year.
Loading kraft
linerboard
11
The big picture | Shipping and the environment
Shipping and the environment
Ships produce various pollutants from operational and, very
occasionally, accidental discharges. These are regulated by the
IMO’s International Convention for the Prevention of Pollution from
Ships (Marpol) which covers oil, noxious liquid substances in bulk,
harmful substances carried in packaged form, sewage, garbage,
and air emissions.
The impact of air emissions
from shipping on our
environment and on human
health has come into sharp
focus in recent years.
Main inputs
and outputs
associated with
vessel operation
Burning fossil fuel produces
harmful emissions, principally
Carbon Dioxide (CO2) which
is the main Greenhouse
Gas (GHG), Nitrogen Oxides
(NOx), Sulphur Oxides (SOx)
and Particulate Matter
(PM). Other sources of GHG
Air output
pollution
from ships include
–
CO2
– SOxrefrigeration
gas leakage from
– PMs
– NOx
systems
– CFCs and volatile
– VOCs organic
– SOx
– NOx
– VOCs
Inputs
Inputs
– Fuel
– Lube oil
– Water/air
– Ballast water
– Paint
– Chemicals
– Food/paper
– Spare parts
– Fuel
– Lube oil
– Water/air
– Ballast water
– Paint
– Chemicals
– Food/paper
– Spare parts
Inputs
– Fuel
– Lube oil
– Water/air
– Ballast water
– Paint
– Chemicals
– Food/paper
– Spare parts
Water output
12
CO2 is the main contributor
to global warming. But
although shipping carries
90% of the world’s freight, it
produces substantially less
CO2 per unit distance when
carrying a unit load than
other transport modes.
However, shipping does
contribute significantly to
global emissions and if nothing
is done, the industry’s share
of the world’s total CO2 output
will increase. In July 2011, the
world’s first global regulation
to reduce the GHG emissions
of any industry was adopted
by IMO to set progressively
more stringent minimum
energy efficiency levels for
new ships (Energy Efficiency
Design Index) and to introduce
mandatory Ship Energy
Efficiency Management Plans
for all ships.
Emissions of CO2 from shipping compared with global total emissions
Cargo vessel over 8,000 dwt
15
Cargo vessel between 2,000 and 8,000 dwt
Heavy truck with trailer
50
Air freight 747-400 1,200 km flight
0
100
21
200
540
300
400
500
600
Grams per tonne-km
Source: Swedish Network for Transport and the Environment
Air output
Air output
– CO2
– PMs
– CFCs
compounds from paints and
hydrocarbon fuels.
– Bilge water
– Accidental discharges
– Ballast water
– Paint toxins
– Sewage
– Grey water
– CO2
– PMs
– CFCs
Air output
– CO2
– PMs
– CFCs
– SOx
– NOx
– VOCs
Inputs
– Land
Fuel output
– Lube oil
– Garbage
– Water/air
– Sludge
– Ballast water
– Hazardous
– Paint
waste
– Chemicals
– Scrap
– Food/paper
Spare parts
Water –output
– Bilge water
– Accidental discharges
– Ballast water
– Paint toxins
– Sewage
– Grey water
Water output
– Bilge water
– Accidental discharges
– Ballast water
– Paint toxins
– SOx
– NOx
– VOCs
Land output
– Garbage
– Sludge
– Hazardous
waste
– Scrap
Land output
– Garbage
– Sludge
– Hazardous
waste
– Scrap
Water output
– Bilge water
– Accidental discharges
– Ballast water
– Paint toxins
– Sewage
– Grey water
Land output
– Garbage
– Sludge
– Hazardous
waste
– Scrap
Activity
Environmental Aspect
Environmental Impact
Vessel build and maintenance
Use of materials
Use of non-renewable resources
Combustion – engines, boilers
and incinerators
Fuel consumption
Use of non-renewable resources
Combustion – engines, boilers
and incinerators
Air emissions – CO2, SOx, NOx, PMs
Global warming, acidification,
eutrophication, health issues
Machinery operation
Lube oil consumption
Use of non-renewable resources
Machinery operation
Oily water discharge
Marine pollution
Refrigeration
Air emissions – HFCs, HCFCs
Ozone layer depletion, global warming
Coating maintenance
Air emissions – volatile organic
compounds (VOCs)
Ozone layer depletion, global warming
Ballast water operations
Ballast water discharge
Bio-diversity threat due to introduction
of non-indigenous species
Vessel operation
Release of toxins from anti-fouling
paint
Marine pollution, threat to local
ecosystem
13
The big picture | Shipping and the environment
Shipping and the environment (continued)
Shipping is estimated to cause
about 15% of the NOx and
SOx emitted globally from the
combustion of oil.
The problems associated
with SOx and NOx from
shipping are of greater
concern in high population
density coastal regions. It is
in these areas where efforts
have been concentrated
to reduce their impact.
NOx, which forms at high
temperatures during the
combustion process, causes
acid rain, contributes to global
warming and aggravates or even
causes respiratory diseases.
Emissions of CO2 from shipping compared
with global total emissions
Electricity & heat production 35%
Other 15.3%
Other energy industries 4.6%
Manufacturing & construction 18.2%
Other transport (road) 21.3%
Rail 0.5%
International aviation 1.9%
International shipping 2.7%
Domestic shipping & fishing 0.6%
Source: IMO GHG Study 2009
14
SOx also causes acid rain
and respiratory diseases.
The amount of SOx emitted
is directly proportional to the
sulphur which occurs naturally
in crude oil and which remains
in fuel oils after the refining
process. Particulate matters are
small liquid or solid particles
produced in the combustion
process which can affect the
heart and respiratory systems.
The International Maritime
Organisation’s (IMO) Marpol
Annex VI Emissions to Air
Protocol has reduced the
maximum sulphur content of
fuels in Emission Control Areas
(ECAs) to 1.0%. This currently
applies to the North Sea and
Baltic Sea, and, from August
2012, will also cover a 200
nautical mile zone off the North
American coast including the
Hawaiian Islands. From 1st
January 2015 the sulphur limit
in these ECAs will reduce to
0.1%. At a regional level the
EU has a 0.1% sulphur limit for
vessels alongside in EU ports.
Globally, the current sulphur
limit is 4.5%, reducing to 3.5%
in 2012 with a further reduction
to 0.5% in 2020 or 2025,
depending on the availability of
alternative fuels.
Marpol Annex VI also imposes
progressively more stringent
limits on NOx emissions
from engines. Engines built
from 2016 must operate at
approximately 20% of today’s
NOx emission levels when in an
Domestic Shipping
ECA. This will require investment
Int. Shipping new technology.
in expensive
Int. Aviation
Chlorofluorocarbons
(CFCs)
and Rail
Hydrochlorofluorocarbons
(HCFCs)
Other Transport
CFCs and HCFCs are man-made
Manufacturing
chemicals
commonly used in
refrigerants
Other Energy which contribute to
the deterioration of the earth’s
Other
protective ozone layer. HCFC-22
has Electricity
been the predominant gas
used in vessels’ domestic and
air conditioning systems but
due to its high ozone depleting
characteristics, its use and
availability is slowly being
reduced across the world.
Garbage Management
Activities onboard vessels
produce significant amounts
of garbage which can have
a long lasting effect on the
marine environment.
Disposal of this garbage is
regulated by MARPOL Annex
V Prevention of Pollution by
Garbage from Ships which
requires all garbage onboard
to be segregated and the
quantities and method of
disposal to be recorded in
a Garbage Management
Plan. Disposal may be by
incineration, landing ashore or
discharge to sea in designated
areas, depending on the type
of garbage. Plastics are a
particular danger to marine life
and their disposal is prohibited
anywhere in the sea.
An amendment adopted in
July 2011, which is expected
to enter into force in 2013,
will limit garbage that may be
disposed at sea to food waste
in designated areas and cargo
residues which are not harmful
to the marine environment.
Ballast Water
The regulation of ballast water
has come under scrutiny in
recent years. To ensure stability
and to achieve optimum trim
and draft for minimum fuel
consumption at sea, vessels
regularly take on sea water
ballast. This ballast is then
discharged overboard when the
vessel’s condition changes,
usually when loading cargo.
Ballast water contains
aquatic organisms which
when discharged in another
part of the world, can have
a devastating effect on
local ecosystems and as a
consequence, cause massive
economic and social impact.
There is no current global
legislation to prevent this
although IMO is expected to
introduce an International
Convention for the Control and
Management of Ships’ Ballast
Material
Degradation time
Paper
2-4 weeks
Cotton cloth
1-5 months
Rope
3-14 months
Woollen cloth
1 year
Painted wood
13 years
Tin can
100 years
Aluminium can
200-500 years
Plastic bottle
450 years
Source: Hellenic Marine Environment
Protection Association (HELMEPA)
Water and Sediments within the
next couple of years. Phase 1 of
this legislation requires ballast
water exchange in deep water
and Phase 2 will require the
treatment of ballast water to
ensure the number and size of
living organisms in the ballast
water are within prescribed
limits. This will require the
installation of expensive new
Ballast Water Systems.
Gearbulk is closely monitoring
all environmental regulation
developments. We will continue
to comply with, or exceed, all
legislation and follow best
practices to minimise our impact
on the environment.
15
Company profile | Gearbulk’s history
Gearbulk’s history
In 1968, Norway’s Kristian Gerhard Jebsen established Gearbulk with three
partners: S.A. Louis Dreyfus & Cie of France, its British subsidiary, Buries
Markes Ltd and A/S J. Ludwig Mowinkels Rederi, also of Norway. From the
beginning, the new venture’s objective was much the same as it is today:
to offer market-leading ocean transport services, especially for unitised cargoes,
that are competitive and innovative and that add value for the customer.
MV Robert LD
Gearbulk’s first two vessels, the newbuilds Alain LD
and Robert LD, were early adopters of travelling cranes
rather than fixed cranes and with their wide hatches
and box shaped holds, offered more efficient loading
and discharge. As a result, cargo was subjected to less
handling and port turnarounds were faster and less costly.
At almost 19,000 mt deadweight, these first two ships
were just over one quarter of the capacity of Gearbulk’s
latest ships today.
1968:Gearbulk established.
1969: D
elivery of first
Gearbulk newbuilds,
Alain LD and Robert
LD from Chantiers de
l’Atlantique shipyard.
1974: D
elivery of first of
twelve 2nd Generation
OHGC, Kiwi Arrow from
Mitsui Shipbuilding
& Engineering Co.
Ltd, Osaka.
1977:The first of nine floating
cement processing
terminals comes into
operation. By 1982 they
were handling 8.5 million
tonnes per year, mainly
in the Middle East.
1977: D
elivery of first of 16
3rd Generation OHGC,
Falcon Arrow from Mitsui
Shipbuilding & Engineering
Co. Ltd, Chiba.
1984: D
elivery of first 4th
Generation OHGC,
Heina, from Sanoyasu,
Mizushima.
1987:After 10 years in
operation and having
processed 45 million
tonnes, declining
demand for cement
prompts Gearbulk to
diversify its floating
terminal operations to
fertiliser, grain, rice and
metal concentrates.
1991:The company is
incorporated in Bermuda
as Gearbulk Holding
Ltd, the Kristian Gerhard
Jebsen family acquires
its partners vessels
and shares. Mitsui
O.S.K. Lines takes
a 25% share of the
restructured Gearbulk,
and then increases
its share to 40%.
1991: D
elivery of first of three
TEFC, Grouse Arrow,
from Mitsui Shipbuilding
& Engineering Co.
Ltd, Tamano.
1992:Gearbulk diversifies
into shore terminals.
The first of several
terminals is established
in a joint venture in Sinor
Terminal, Port of Tianjin.
1994:Gearbulk enters the
liquid pitch business
with Alouette Arrow on
the North West Europe
to St. Lawrence trade.
1997: D
elivery of first of nine
5th Generation OHGC,
Toucan Arrow from
Dalian New Shipyard.
1998:Rhone is first Gearbulk
vessel to have hold
tanks fitted to carry
frozen concentrated
orange juice.
2009:Mitsui O.S.K.
Lines increases its
shareholding from
40% to 49%.
2009: D
elivery of first of
four 6th Generation
OHGC, Corella
Arrow from Oshima
Shipbuilding Co. Ltd.
2010: D
elivery of first of
eight Fleximax II, Kiwi
Arrow from Oshima
Shipbuilding Co. Ltd.
2011:Gearbulk Norway
AS established to
assume technical
management of the
Gearbulk owned fleet.
1995:Gearbulk receives its first
certification to the IS0
9002 quality standard.
1996: D
elivery of first of five
Fleximax, Pine Arrow, from
Stocznia Gdansk Shipyard.
Condor Arrow
16
17
Company profile | Gearbulk today | Newbuildings
Gearbulk today
Since its formation in 1968 Gearbulk has set the
standards for world-wide transportation of unitised
cargoes and operates the world’s largest fleet of
open hatch gantry and semi-open jib crane vessels.
Far left:
Lowering main
engine into
position
Left:
Accommodation
block under
construction
Tenca Arrow at
Scaldia Terminal,
Flushing
Four of our vessels are Totally
Enclosed Forestry Carriers
(TEFC), fully covered OHGC
vessels for loading and
discharging in all weather
conditions.
A further 13 vessels have
box-shaped holds with
predominantly open hatches
and are equipped with jib
cranes (Fleximax vessels).
As of 31st December 2011,
we owned or operated a fleet of
72 vessels (excluding vessels
on short term time charter)
totalling almost 3.5 million dwt.
Of these, 40 are Open Hatch
Gantry Crane (OHGC) vessels
of between 23,000 dwt and
73,000 dwt.
OHGC vessels carry dry bulk
and are designed with travelling
gantry cranes and box-shaped
cargo holds that are totally
accessible, with no obstructions
or deck overhangs. When used
in conjunction with specialised
lifting equipment these vessels
are ideal for high value unitised
loads which can be placed
directly at the final stowage
position, minimising handling
and damage.
18
TEFC
Jaeger Arrow
Our three high heat vessels
are designed to transport high
temperature liquid products,
such as liquid pitch. Several of
our vessels have tanks installed
in some holds so they can carry
liquids such as high heat liquid
pitch or frozen orange juice.
We have seven vessels in
the 50,000-57,000 mt dwt
supramax range. These are
designed to carry conventional
Crosssection of
an open
hatch gantry
crane vessel
dry bulk cargo, rather than
containerised or unitised cargo.
Equipped with cranes and their
own grabs, they are capable of
self loading and discharge.
Our four semi-open hatch jib
crane vessels have hatch
openings that are slightly
smaller than cargo holds,
thereby causing minor
deck overhangs. Our two
tweendeckers have a deck
dividing the upper and lower
box-shaped holds.
Newbuildings
During the year we continued
our extensive fleet renewal
programme, introducing
high capacity, high efficiency
vessels from long established
and reputable ship yards.
We took delivery of four
Fleximax II vessels and one
conventional vessel under long
term time charters.
As of 31st December 2011,
we had 17 vessels on order
for delivery over the period
from 2012 to 2014. These
vessels are being constructed
by Oshima Shipbuilding Co.,
Ltd., Mitsui Engineering
and Shipbuilding Co., Ltd.
and Hyundai Mipo Dockyard
Co., Ltd.
Vessels
on order
3
12
2
Type
Dwt (mt)
Semi-open
55,700
Fleximax
61,750-73,000
Pitch tanker
19,000
17 weeks before
delivery – keel
sections being
positioned
Our fleet’s uniformity makes our
vessels very interchangeable
between trades. This provides
scheduling flexibility, minimises
ballast voyages and reduces
costs. A full list of our owned
and controlled vessels can be
found on page 46.
19
Company profile | Cargo | Five-point business strategy | Contracts
Gearbulk today
(continued)
Right:
Discharging
woodpulp
Far right:
Discharging
aluminium
T bars
Cargo
Gearbulk primarily transports
unitised cargoes, which
comprised approximately 63%
of cargo tonnes shipped in
2011. These unitised cargoes
include forest products
(principally woodpulp, lumber
and other types of paper and
paperboard) and other unitised
cargoes (principally aluminium,
steel and bagged products).
Gearbulk
cargoes 2011
Humidity and temperature
can be critical to forestry
commodities like woodpulp,
newsprint, paper and
paperboard. To control
temperature and prevent
condensation, Gearbulk
vessels are fitted with forced
draught ventilation and
dehumidification plants.
Since its inception, Gearbulk
has focused on continuous
development and investment in
vessel design which, coupled
with improvement of our cargo
handling systems, has placed
us as the leading global carrier
of many unitised products.
Bulk Cargoes
Othr Unitised
Steel
Aluminium
Other Forest
Woodpulp
Woodpulp 35%
Other forest products 4%
Aluminium 11%
Steel 10%
Other unitised cargoes 3%
Bulk cargoes 37%
Five-point business
strategy
Our five-point business strategy
is to provide high quality, flexible
and customised transportation
services to international
customers, particularly in the
forest products sector and
within industries involved in
the transportation of unitised
products. The principal elements
of our strategy include:
• Building our organisational
foundation for long term growth
Contracts
Unitised forest products
and other unitised cargoes
are generally shipped under
Contracts of Affreightment
(COAs). These cargoes are
vulnerable to physical damage
and therefore they require
a higher level of care during
handling and transportation.
Since these cargoes are usually
of higher value than most
bulk cargoes, their producers
typically require frequent
and regularly scheduled
transportation services in order
to reduce inventory costs.
fill remaining capacity with spot
market cargoes. We also carry
spot market cargoes to cover
for ballast voyages.
Our COAs are not typically
linked to specific vessels in
the fleet. We manage our
vessels on a fleet basis in
order to optimise utilisation
and minimise ballast voyages.
To the extent vessel capacity is
not fully utilised with cargoes
under COAs, Gearbulk seeks to
For 2011, approximately
70% of the volume carried by
Gearbulk’s fleet was carried
under COAs and the freight
revenue generated accounted
for approximately 70% of our
total freight revenues.
Left: Kiwi
Arrow loading
woodpulp
Below: Windmill
towers being
shipped
from Europe
to Brazil.
• Securing and building on our
strong competitive position in
pulp markets
• Growing business with targeted
key accounts
• Optimising fleet composition,
capacity, deployment and
ownership
• Developing new growth
platforms
Gearbulk believes this strategy
limits its exposure to any
one customer or geographic
region, reduces its exposure to
fluctuations in freight rates and
enables us to generate more
stable cash flows than the bulk
shipping market in general.
Source: Gearbulk Research
20
21
Bergen
Company profile | Trades, terminals and offices
Weybridge
Vancouver
Schiedam
Luxembourg
Bermuda HQ
Gearbulk trades, ATI,
terminals
and offices
Lake Charles
ATI, Pascagoula
Tampa
ATI, Port Manatee
To provide our customers with a more complete package of customer
services, Gearbulk owns, or has interests in, certain terminal operations
which are used to handle, store and distribute cargoes to final destinations.
Scaldia Logistics B.V., Flushing
Metal Terminals International
(MTI), Antwerp
Baar, Switzerland
Interchangeability across the
entire fleet enables us to adapt
cargoes, routes and timing to
suit the customer.
This platform enables us to
offer a service precisely tailored
to each customer’s exacting
requirements.
Our competitive advantage
lies in the size of our fleet and
the enthusiasm, expertise and
experience of our people based
in our global network of offices.
Gearbulk continues to invest
in its people and in new
technology to ensure our
service remains in the vanguard
of the ever changing world of
transportation and logistics.
Shan
Dubai
Bangalore
Arrow Terminals
Malaysia (ATM)
Singapo
Bergen
NST Terminais e
Logistica SA, Santos
Vancouver
Santiago
Bermuda HQ
ATI, Lake Charles
ATI, Pascagoula
Talcahuano
Tampa
Rio de Janeiro
Weybridge
Schiedam
Paranagua
Terminais (PFT)
Luxembourg
Scaldia Logistics B.V., Flushing
Richards Bay
Metal Terminals International
(MTI), Antwerp
Durban
Baar, Switzerland
Busan
Tokyo
Shanghai
Buenos Aires
Dubai
ATI, Port Manatee
Bangalore
Arrow Terminals
Malaysia (ATM)
NST Terminais e
Logistica SA, Santos
Santiago
Talcahuano
Key
22
Gearbulk Offices
Gearbulk Terminals
Paranagua
Terminais (PFT)
Singapore
Rio de Janeiro
Richards Bay
Durban
Melbourne
Buenos Aires
In 2011, on average a Gearbulk vessel
made a port call every two and a half hours
23
Governance | Our business
Governance
1500
Our business
Gearbulk Leadership Team
Board of Directors
Under Board mandate, our
Chairman presides over the
Gearbulk Leadership Team
(GLT), which meets weekly,
guides implementation of
strategies and plans developed
and approved by the Board, and
coordinates activities across
the group.
The Gearbulk Group (of which
Gearbulk Holding is the parent
company) is managed by
its Board of Directors which
meets regularly. Members are
appointed each year at the
annual shareholders meeting.
Our Board presently includes:
Name
Position
Kristian Jebsen
Director and Chairman
Hans Petter Aas
Director
Jannik Lindbaek
Director
Arthur E.M. Jones*
Director and President
Makoto Yamaguchi
Director
Yusuke Maruyama
Director
David J. Doyle, J.P*
Director and Vice
President
Shelley R. Durrant*
Secretary
* Executive
officers
Audit Committee
The Audit Committee comprises
non-executive directors who
meet at least three times a
year. It oversees our financial
reporting, internal controls, risk
management, audit processes,
compliance monitoring and
business conduct.
Risk management
We have adopted a risk
management process to create
and protect value and to ensure
we achieve our long-term vision
and mission.
Embedded in our Business
Management system, this
process is integral to all
organisation processes,
including strategic planning
and project and change
management. It is led by our
Chief Risk Officer who reports
to the Audit Committee.
Risk reviews are performed
whenever required at all levels
of the group. Results are
reported to GLT and the Audit
Committee.
Anti-Corruption & Bribery
As a member of the Maritime
Anti-corruption Network
24
(MACN), we cooperate with
like-minded industry companies
to promote compliance with
anti-corruption laws and
eliminate corrupt practices.
Our Anti-Corruption and AntiBribery policies require all
employees to be trained
in relevant legislation and
company procedures. To
ensure their awareness and
knowledge remains current,
a training module has been
developed on our intranet
Voyager for all employees
to undertake annually.
We have also developed other
policies to protect employee
rights and uphold best business
practice, including Whistle
Blowing, Equal Opportunities
and Harassment policies.
In 2012, we plan to issue an
Ethics Policy a Third Party Code
of Conduct to encourage our
supply chain partners to share
our commitment.
International Standards
We operate to the
ISO 9001:2008 –
Quality Management
and ISO 14001:2004 –
Environmental Management
Standards and require all
business processes to
operate to international and
national standards as a
minimum, and where practical,
exceed these standards.
Our Senior Manager, Quality
and Environment, who reports
to GLT, is responsible for
developing and administering
our Quality and Environmental
Management systems.
Compliance is subject to annual
audits by trained internal
auditors whose reports are
in turn subject to twice-yearly
management review. External
audits are also conducted
by Lloyd’s Register Quality
Assurance (LRQA).
Sustainability Governance
Gearbulk is committed to being
a sustainability leader, which we
strongly believe will improve our
business performance.
Driving forward this ambition is
our Sustainability Steering Group
(SSG). Led by a Senior Manager,
Sustainability & Technical, SSG
reports to GLT and is charged
with managing delivery of our
sustainability objectives. It is
also responsible for ensuring
Pipe stow on
Revenue
US $
m
the Pine
Arrow
that sustainability is firmly
1200
embedded
in all aspects of our
Business Management System.
A matrix is900
being built to chart
how we can apply the five
areas of sustainable capital
from which600
we derive the goods
and services we need: natural,
human, social, manufactured
300
and financial.
Using this matrix we will develop
a Strategic Action Plan for
300 to EBITDA
and Net Income US $m
Sustainability. Key
its success
is engaging our employees
to ensure their 250
enthusiastic
support and our external
stakeholders, particularly our
200
customers, to identify ways
to collaborate on innovative
contributions to150
a more
sustainable world.
100
Financial $0
performance overview
2007 2008
2009 2010 2011
50
Despite difficult trading conditions, Gearbulk remained
profitable in 2011.
$0 $97.5
Net income, at $63.0 million, was down 35.4% from
2007 2008
million in 2010. EBITDA, at $140.9 million in 2011, declined
from $167.6 million in 2010. EBITDA stands for earnings
before interest, taxes, depreciation and amortisation.
1,500
Revenue US $m
300
EBITDA and Net Income US $m
EBITDA 250
1,200
2009 2010 2011
Net income
200
900
150
600
100
300
50
$0
2007 2008 2009 2010 2011
$0
2007
2008
2009
2010
2011
25
N
Governance | Our people | Our employees
At the end of 2011, Gearbulk
employed 591 shore staff in
21 offices and six terminals
across six continents.
This workforce is made
up of over 30 nationalities,
reflecting the company’s
strategy to employ local
nationals at all levels of the
organisational structure.
Shore Based
Our employees
2011
Our people
Worldwide gender split
(offices and terminals)
Average worldwide office
and terminal staff tenure
37% Female
5.4 Years
Fleet technical management
Following the reorganisation
of the Kristian Gerhard
Jebsen family’s shipping and
investment interests in 2010,
Gearbulk took over the fleet
management of Gearbulk
vessels, previously managed by
Kristian Gerhard.
Jebsen Skipsrederi AS.
Gearbulk Norway AS was
incorporated to fulfil this
function, effective from
1st January 2011.
At the end of 2011
Gearbulk Norway A.S.
employed 2,066 sea staff.
The most important assets in
any organisation are its people and looking after them brings
benefits to the individual and also to the organisation. Gearbulk
recognises this and places high value in providing a safe,
secure and healthy working environment for our employees and
contractors working on company properties and activities.
In June 2011, Gearbulk held its
first global employee survey to
provide anonymous feedback to
management.
The survey had a response
rate of 94%. The overall tone
of the responses were positive,
providing valuable insight into
what matters most to our staff,
the main points being:
• Staff are keen to be kept
more abreast of company
news, both business and
personal. There is a case
for improving internal
communications, up, down
and across the organisation
• Career development
opportunities could
sometimes be better
aligned with personal
career progress
The survey results have
been analysed and action is
planned for those areas where
improvements could be made.
• Throughout the organisation
there is strong employee
commitment to the company
and levels of job satisfaction
are high
• Employees believe that
Gearbulk’s developing
strategy to improve the
company’s sustainability
is on the right track
Scaldia Logistics
26
27
Governance | Our people | Safety
Safety
“Safety is the backbone within Gearbulk and no-one in
the organisation should allow themselves to cut corners
for personal, corporate or short term benefit.”
Kristian Jebsen, Chairman, 21st June 2011
Safety is Gearbulk’s prime
concern. Through adherence
and implementation of our
health and safety policies and
procedures, training, seminars
and auditing, a strong focus
on accident avoidance is
maintained. The integration of
ship management activities into
the Gearbulk organisation at
the beginning of 2011 can only
improve the safety of our sea
staff and shore contractors.
Of course there is always
room for improvement and our
ultimate goal is to achieve a
year without injury – and then
maintain that standard.
Lost Time Injury Frequency (LTIF) The most
objective
Year
%
measure of
2011
1.76
the safety of
2010
1.44
our seafarers
2009
2.49
on board
our vessels
is Lost Time Injury Frequency
(LTIF). This is a measure of the
number of hours a seafarer
is unable to work following an
accident and is calculated per
million working hours. There
were no sea staff fatalities
onboard Gearbulk owned
vessels in 2011 or 2010.
Regrettably one seafarer died
after falling in a hold in 2009.
28
Although the trend in minor
and serious injuries shows a
significant reduction in 2011
from the previous two years,
it was disappointing and tragic
that two fatalities occurred –
one involving a stevedore falling
in a hold and the other when
a stevedore was crushed by a
cargo load being manoeuvred
into position.
We also record injuries to
stevedores on our owned and
time chartered vessels. As we
generally do not have access to
any statistical data on time off
work as a result of stevedore
accidents, we have limited our
reporting to frequency and
severity of injuries.
Stevedore injuries
Year
Minor injuries
Serious injuries Fatal injuries
2011
22
1
2
2010
34
11
0
2009
32
6
3
Safeguarding our seafarers
Gearbulk minimises the threat
by conducting a thorough risk
assessment prior to each
voyage through areas that are
exposed to potential piracy.
We provide additional safety
equipment, razor wire and
armed security teams for all
our vessels transiting the Gulf
of Aden/Indian Ocean area and
offer the same service to our
charter vessels.
We operate a Gearbulk
Improvement and Safety
System (GISS) which is
a comprehensive system
providing easy access to
company policies, procedures
and manuals for our shore
staff and sea staff on our
owned vessels. GISS also has
an incident reporting function
for recording and monitoring
performance issues and
incidents, including accidents,
injuries and near misses.
One of our challenges will be to
encourage the wider use of Near
Miss reporting as another way to
highlight potentially hazardous
activities and engage the ‘human
element’ to be more proactive in
accident prevention.
Far left: Jet
sprays and razor
wire are used
to minimise the
threat from piracy
Left:
Discharging pulp
Cargo planning onboard a Gearbulk vessel
29
Governance | Our people | Training and development
Training and development
Crew coaching
onboard the
vessel
Our sea staff
We strive to train our sea staff
beyond the requirements of
STCW. Some of the areas in
which we invest additional
training include:
Survival
training
• Bridge team management
• Ship handling
• Engine room simulator
training
• Cargo pre-planning
• Marpol compliance
• Computer Based Training
(CBT) for a variety of topics
We also run annual seminars
for our officers in several
geographical locations at which
a range of training issues are
reviewed. These seminars are
always great opportunities
for participants to give and
experience feedback on a range
of topics which impact on their
work, such as safety, regulatory
requirements and cargo care.
We maintain an active training
programme for our Deck,
Engineering and Electrical
cadets. As a rule, we have
at least two and often three
cadets on each of our owned
vessels.
Gearbulk’s cargoes are very
often high value commodities
which are susceptible to
damage. To ensure our longterm time charter vessel crews
can provide the high level of
cargo care our customers
30
expect, we carry out a
comprehensive knowledge
sharing programme for officers
of our long term time charter
vessels. This is generally
conducted for officers new to
our trades at a seminar prior
to joining a ship and includes
topics such as cargo care
and documentation, safety
and bunkers. Regular followup discussions are then held
during service onboard.
Our shore staff
Our range of training techniques
maximises the development
potential of our shore staff
using a combination of internal
and external resources. Some
of the training and development
courses which have been
carried out during 2011
included:
• Enduring Leadership, a multimodule residential course at
Ashridge Business School
in the UK, for 38 managers
from our various offices
• Gearbulk online training
programmes, a bespoke
online resource providing
internal training in four areas
– chartering, operations,
marine accounts and antibribery and corruption
• Internal and external
classroom based training
for subjects such as
Performance Management,
Time Management and
Coaching for Development
• Internal classroom and
video conferencing based
training for subjects
including our Environmental
Management System and
Time Charter training
• Various job specific
technical courses
• Lunchtime University – a
voluntary series of popular
internal knowledge sharing
sessions on subjects such
as Bunkering and Bank
Financing
• Ship visits – a familiarisation
exercise to improve
understanding of our vessels
and how they operate
In 2011 an online information
system to store and manage
employee HR and Training
data was introduced. The
system, called ‘My Gearbulk’,
has been supplied and
hosted by a leading software
provider and tailored to
meet the requirements of
our global organisation. ‘My
Gearbulk’ features a ‘selfservice’ functionality providing
employees with increased
ownership of their own data.
Targets
The Training and Development
team has a target of 35% of all
Gearbulk shore staff achieving
four training days per year.
During 2011, 74% of Gearbulk
shore based office staff received
training and 9.67 days training
has been achieved by 35% of
our staff.
The two other KPIs based on
the application of learning
after a minimum three month
period are:
How well the course met the
predefined objectives, on a
scale of 1 to 5:
Average score: 3.88 (target 4)
How much the job performance
has been improved during the
evaluation period:
Average score: 3.53 (target 4)
5
4
Scale of 1-5
Gearbulk recognises that
continual learning is key to the
development of the organisation
and the individual. To that end,
we have invested considerable
finance and resources to
improve the working skills and
knowledge of our staff, both at
sea and ashore, to enable us to
meet our business objectives
and provide opportunities for
career development.
Target score: 4
3
2
1
The focus for the Training and Development
team will be to continually improve the
application of learning to achieve our targets.
0
Did course
meet predefined
objectives
Improvement of job
performance
Source: Gearbulk Research
31
Governance | Our people | Communications
Communications
News, features, community and more from Gearbulk
Issue THREE, July 2011
GEARBULK
Gearbulk staff join together,
raising $7,720 to support Japan
On 25 May all Gearbulk offices
joined together to show their
support for the Gearbulk
Global Coffee Morning.
From the first coffee break
of the day dawning in
GB Melbourne to the last in
GB Vancouver, each
office joined in with
the spirit of the idea.
In Melbourne,
there were lots of
home made goodies
and fun and games. A putting
competition for AUD 10 per entrant
was won by Ashraf Safari, pipping
both Geir and Glenda’s amazing
3 consecutive holes in one. Barry
Nelson’s highly coveted pink golf
ball was up for grabs at auction
and after heavy bidding, Barry
was the lucky winner purchasing
his ball back for AUD 45. Geir
Osland decided to take up the fad
of Planking and offered a donation
of AUD 50 for the photo. Although
it looks as if he is lying on the ship
model, he is in fact lying on the
cupboard behind it. In Bergen there
Inside this issue
1 Chairman’s Column
A few words from Kristian Jebsen.
Page 3
1 Business Spotlight on soda ash.
How is soda ash made, some of its
unusual uses and its importance to
Gearbulk.
earbulkInsight
EARBULK
Page 4
1 Team Focus, GB Tampa
We look at the dedicated team in the
US and the roles they play. Page 6
1 Global Sustainability:
Environmental
Management System
GB Weybridge is the first office to
gain ISO 14001 certification. Page 9
1 Gearbulk Community
Calendar caption competition winner.
Page 14
was even a cake
with the Gearbulk
G on it!
In Shanghai there were plenty of
cakes and calories to be consumed
and in Rio there was a delicious
breakfast table for all the team.
Although only 4 of the 6 staff in
Durban were in the office, they still
raised a splendid amount.
In Weybridge there was a mouthwatering variety of cakes with some
baked by staff to support the effort
to raise funds. There was also a
“happy coat” donated by Imai-san
which was auctioned and won by
(Clockwise from
top) A tastefully
decorated cake from
GB Bergen; Staff
enjoying a tasty
selection of cakes at
GB Weybridge;
GB Shanghai;
Planking –
Melbourne style!
earbulkVoyager
EARBULK
1 Gearbulk Fleet: Building the
Corella Arrow
The birth of a 6th Gen in Oshima.
Page 19
1 And finally...
(Continued on
page 3).
MV Penguin Arrow is the first
Gearbulk vessel into Hachinohe after
the tsunami.
Page 20
We hope you enjoy reading New Waves.
New Waves is a newsletter for the Gearbulk community written by the Gearbulk family.
If you have anything you would like to be included please send this to: #NEWWAVES
GEARBULK
New Waves
Sustainability video
Gearbulk produces a regular
internal magazine, which aims
to keep employees up to date
with what is happening in the
organisation – from a business
and social point of view.
In November 2011, Gearbulk
participated in making a short
film on sustainable shipping to
be shown nationally in North
America on Our Green World
programme on the Discovery
Channel Paid Programme Block.
Each edition includes a
message from Kristian Jebsen,
a business news section,
articles about our customers,
their markets and cargoes and
updates on sustainability.
that most merchant vessels
currently don’t have access
to. In 2012 Gearbulk will be
rolling out a marine broadband
solution across the owned
fleet. This will greatly improve
our communications and in
particular will be a significant
boost to the welfare of crew
who will be able to keep in
more regular contact with
their families and friends.
Broadband at sea
An internet connection is
something most of us take for
granted but this is a facility
View on youtube:
http://www.youtube.com/watch?v=CW9isV-aBkA
32
Screenshot of Gearbulk Voyager Sustainability page
Gearbulk Voyager
The new Gearbulk Voyager
intranet site was launched
worldwide in the first week
of January.
Gearbulk sustainability video.
Leadership Blog
It is a global online portal
launched initially in our
Weybridge office in 2010,
to provide a single web space
for improved communication
and information sharing
between offices and
departments. It also
encourages a sense of
community within the company
by providing internal news and
advertising social events and
charity fund raising projects.
A Voyager Committee was
established in 2011 and
is made up of a number of
employees across all of the
Gearbulk offices. The purpose
of this committee is to:
• Make the most of the
functionality Voyager provides
• Act as a common voice for
all Gearbulk employees
• Investigate future content
and uses of the system
• Promote Voyager as a
tool that simplifies work
processes and helps staff
keep in better touch with
the work being done by their
colleagues around the world.
In 2011 the Voyager
Leadership Blog was
launched as a response to
the results of the employee
survey, suggesting the
need for improved internal
communication. This blog
allows members of the
Gearbulk Leadership team
(GLT) to share their thoughts
and insights on the current
issues affecting the company
and the wider industry.
Gearbulk Insight
Gearbulk Insight is a new
function on Voyager which
provides information on every
Gearbulk trade including
results, cargoes, customers,
budgets and forecasts. This
facilitates transparency
and the internal transfer
of information within the
company.
33
Governance | Our
Chapter
planet| sub-section
| Give back
Give Back
Social projects
As part of our sustainability strategy, we
encourage our employees to ‘Give Back’ to
society and the communities in which we work.
Unveiling of a
Gearbulk G-Pod
Give Back
Gearbulk encourages
employees to spend one
day every year working for a
registered charity. We also
support our staff involvement in
charitable events by matching
sponsorship raised, subject to
certain conditions and limits.
In 2011 Gearbulk staff
participated in a number
of fundraising for many
worthwhile charities, a
sample of which include:
• Cancer charities
• Walk Now for Autism
• Red Cross
• Royal National Lifeboat
Institution
• Heart to Heart Foundation
• Mission to Seafarers
• Hospitals and Hospices
• Scholarship programmes for
under privileged children
In addition to individual charity
days, Gearbulk staff have
worked together on a number of
community projects, including:
Japanese tsunami
Staff from our Tokyo office
travelled 300 km to Ishinomaki
City to help with the clean up
operation after the devastating
tsunami which struck Japan in
March 2011.
Prompted by our long
association with Japan and
our partnership with Mitsui
OSK Lines, Gearbulk donated
six electronic whiteboards to
Ishinomaki primary schools in
2011. This will be followed by a
seven-year educational support
programme.
G-Pod for children’s
play in Australia
In June 2011 Gearbulk
launched the first G-Pod at
Noble Park Primary school in
Melbourne, a school of 260
students comprising over
40 different nationalities, of
which 75% have a non-English
speaking background.
Designed to encourage creative
play, the G-Pod containers are
loaded with an assortment
safe unwanted industrial
products such as left-over
building materials and tyres.
Children are encouraged to
learn through play, promoting
problem-solving skills and
creative thought. The use of
G-Pods also contributes to the
development of vital skills such
as cooperation, communication
and social inclusion.
A total of 4 G-Pods were
delivered in 2011, and
another four are scheduled
for delivery in 2012.
Post tsunami
clean up
34
Packing “Gogo Bags”
for the Robin Hood
Foundation in Durban
For six years the Robin
Hood Foundation has been
distributing food packages and
clothing to new mothers and
elderly who look after their
orphaned grandchildren whose
parents have been lost to AIDS.
The foundation works in and
around the Durban area and
distributes to those identified by
community and church workers.
Their aim is to distribute 2,000
“Gogo Bags” every year.
On 22nd October 2011
Gearbulk Durban staff
helped to pack hundreds
of “Gogo Bags”. The bags
were packed with maize,
sugar, tea, rice, canned food,
biscuits, cereal, juice, soya
and items of clothing which
had been donated by corporate
businesses and volunteers.
In 2011 a total of 66 charity
days were taken by our shore
based staff. Our target in 2012
is to raise this above 150.
Packing “Gogo”
for the Robin
Hood Foundation
35
Our planet | Environmental management overview
Our planet
We recognise that Gearbulk’s activities are energy-intensive and that
as a leader in our industry sector, we emit a significant amount of CO2
and other pollutants, which we are committed to minimising.
Storms on
the horizon
Climate change is a major
challenge we all face today and
we have already seen its impact
through floods, droughts and
extreme weather affecting our
lives and businesses. Limiting
the effects of climate change
by reducing our carbon footprint
will take a considerable effort
and will require a change in the
way we live and conduct our
business. There will be risks to
current business models but
also new opportunities. There
is a clear link between improved
environmental performance
and improved business
performance through reduced
energy consumption and
greater operational efficiency.
This creates opportunities by
attracting customers who value
low carbon services.
techniques as well as through
a process of information and
training throughout and beyond
our organisation.
As this report demonstrates,
we have for some time been
concentrating our efforts to
reduce our environmental
impact by making our fleet
more energy efficient through
technical innovation and
operational improvements and
developing our staff awareness
on best environmental
practices. We will build on
the success of this work by
using environmentally-friendly
technologies and operational
Environmental Policy
Gearbulk is committed to the
protection of the environment,
preventing pollution and creating
enduring value while providing
industry leading and innovative
ocean transport services. To
achieve these aims Gearbulk will:
• Engage our employees,
customers and suppliers
to achieve a shared
commitment for responsible
environmental stewardship
• Use an Environmental
Management System to
monitor and evaluate how
our business activity impacts
the environment, analyse the
results and set improvement
targets that are reviewed
as part of our business
management process
• As a minimum, meet all
environmental legislation
and dedicate resources to
finding innovative practical
solutions which will exceed
requirements
• Apply environmentallyfriendly technologies and
best practices to continually
improve our operational
efficiency and reduce
Gearbulk’s impact on the
environment
36
• Promote awareness of
environmental protection,
energy conservation and
waste reduction within the
organisation through our
policies and procedures and
the training and development
of our employees
Plan
– Management
review
– Evaluate
– Continually
improve
Act
Environmental Management
System (EMS) and ISO 14001
In 2010, Gearbulk introduced
an Environmental Management
System which is now an
integral part of our Business
Management System,
providing a comprehensive
and systematic process
to ensure environmental
compliance and continual
improvement. It is based on
the Plan, Do, Check, Act cycle.
– Aspects/
impacts
– Legal
requirements
– Objectives/
targets
Continual
improvement
– Monitor
& measure
– Corrective
action
– EMS audit
All aspects of the business
are considered in the
process, some examples of
environmental aspects include:
• Increasing recycling rates for
cargo dunnage
• Identifying alternative uses
for withdrawn cargo slings
• Reducing disposal of
cargo-securing rubber
airbag material
• Reducing office energy
and consumables
consumption and
increasing recycling rates
• Managing business travel
by promoting alternative
communication methods
Do
– Management
structure
– Training/
awareness
– Communication
– Documentation
– Emergency
response
Check
Training was given to all
Gearbulk employees in early
2011, raising individual
awareness of environmental
issues and the part we
must all play to reduce our
environmental impact. Following
this training and a period of
using the EMS, all branch
offices except the newly opened
Bergen office successfully
underwent ISO 14001:2004
audits by Lloyd’s Register
Quality Assurance (LRQA).
37
Our planet | Environmental initiatives
Environmental initiatives
Far left: Painting
in dry dock
Left: Propeller
boss cap fin
Since this is Gearbulk’s first
sustainability report, the
following is a summary of
initiatives taken to reduce the
environmental impact of our
fleet since 2009 rather than
just the reported year.
• From the outset, we identified
the need for improved
vessel reporting and better
monitoring of hull and
main engine performance,
using dedicated staff
for this analysis
• We introduced a programme
to reduce hull resistance
through the water (hence
reduced fuel consumption
and emissions) by
regular full blasting of the
underwater area in dry
dock, the application of
high performance antifouling systems and
increasing the height to
which they are applied
(reduced boot top band)
• Being able to accurately
measure vessel performance
is crucial so more of our
vessels are being equipped
with additional performance
and fuel consumption
monitoring equipment.
These include digital fuel
flow meters which provide a
continuous fuel consumption
read out on the bridge,
allowing the Master and
the bridge team to evaluate
and thus control the impact
of changing settings such
as engine speed and
vessel course on the fuel
consumption
• We increased the frequency
of propeller polishing from
12 to eight months
• Older, less efficient vessels
are being phased out
• Green passports are issued
to all vessels sold for
recycling and only recycling
yards with environmentally
sound credentials are used
• We developed our purchasing
policy to exclude more
environmentally unfriendly
products and chemicals
38
• There is a correlation
between cylinder oil
consumption and Particulate
Matter (PM) emissions.
A programme is in place
to retrofit new cylinder
lubrication systems to the
main engines of suitable
vessels to reduce cylinder
oil consumption and hence
PM emissions
• An onboard voyage weather
routing system is standard
on all Gearbulk owned
vessels and weather routing
is routinely used for our
chartered vessels
• A policy is in place to
supply only low sulphur
marine gas oil for the
majority of Gearbulk
owned and long term time
chartered vessels when
bunkering distillate fuel
• Propeller boss cap fins which
recover some of the energy
lost in the vortex created by
the propeller have been fitted
to several vessels and more
are planned. These devices
give up to 3% fuel saving
• A Ship Energy Efficiency
Management Plan (SEEMP)
which incorporates best
practice for reducing
fuel consumption and
consequently CO2 emissions,
is being developed and will be
implemented in 2012
• Gearbulk participates in the
port of Long Beach voluntary
speed reduction programme
which encourages vessels to
reduce emissions by keeping
their speed below 12 knots
in a zone which extends 40
nautical miles seaward. Our
compliance rates have been:
– 2009 - 90.0%
– 2010 - 100.0%
– 2011 - 97.5%
Newbuildings
• The main engines of our
open hatch newbuildings
are de-rated to improve fuel
consumption. Electronically
controlled main engines
have been introduced into
the fleet – a series of four
vessels is already in service
and ten more are on order.
These main engines have
optimised control particularly
at low load operation,
giving better combustion
and higher fuel efficiency
with smokeless exhaust
• The propeller shaft seals
are fitted with an additional
air seal to reduce the
risk of oil pollution
• Our open hatch newbuildings
have dedicated hold
washing water tanks to
reduce pollution risk and
improve environmental
disposal options
• Additional model testing
is carried out to identify
optimum trim for different
vessel conditions
• Our new vessels built in the
Oshima Shipbuilding yard
feature a bow design which
reduces the energy needed
to propel the vessel through
heavy weather. These vessels
also feature flipper fins
which improve the water flow
into the propeller disc, thus
improving propeller efficiency
Our latest vessels in service, our
Fleximax II class have a carbon
footprint per tonne mile of cargo
carried about 40% less than
the ships they are replacing,
based on full speed and 80%
deadweight. Our next series of
eight vessels, the Fleximax IIIs
which will be delivered from the
end of 2012, will approach 50%.
These vessels will carry 15%
more cargo for 7% less fuel than
the Fleximax IIs which equates
to a saving in CO2 emissions for
each vessel equivalent to taking
640 cars off the UK roads.
39
Our planete | Environmental performance 2011 | EMS in action
Environmental performance 2011
Environmental
Management system
in action
Pine Arrow
off Iceland
Carbon Dioxide (CO2) – for all
vessels on Gearbulk trades
Sulphur Oxides (SOx) – for all
vessels on Gearbulk trades
In 2010 we developed a Carbon
Footprint report to capture the
CO2 levels emitted by both
owned and chartered-in vessels
employed on Gearbulk trades.
This report allows us to calculate
both total CO2 emissions and
the IMO CO2 Index for individual
vessels, classes, fleet, trades,
shipper, charterer or specific
COA. The IMO CO2 Index may be
defined as the ratio of mass of
CO2 emitted per unit of transport
work. It follows then that the
index is dependant both on the
fuel efficiency of the vessel and
the quantity of cargo carried
– ballasted or partly loaded
vessels will have higher indexes.
The global sulphur limit of 4.5%
reduced to 3.5% on 1st January
2012. It will not impact on our
average sulphur content of fuel
as very little fuel purchased
within the last 12 months has
been above 3.5%. What is
expected to lower the average
is the introduction of the North
American ECA on 1st August
2012 when all fuel used while
alongside and within 200nm of
land must be no more than 1%
sulphur content.
This index excludes fuel used
under pilot and in port and is
based on port-to-port voyage
periods. It also includes any
ballast voyages.
Our target is to achieve a 20%
reduction in our CO2 Index from
2010 levels by the end of 2015
2009
2010
Further challenges lie ahead
when the maximum sulphur
content in the ECAs reduces to
0.1% in 2015, which effectively
means that ships will be
required to consume only low
sulphur distillate fuel or install
exhaust gas scrubbing systems
which enable cheaper fuel oil of
up to 3.5% to be used while still
complying with the regulation.
As the interchangeability of our
vessels allows them to move
2011
Total SOx
CO2 Index 10.33
Average SOx %
8.81
CO2 emissions on Gearbulk trades 2009 to 2011
40
Oil Spills
Although we place a high
emphasis on avoiding any
spills, five of our vessels did
experience a small number of
very minor oil spills in 2011.
Our target is zero spills.
Cargo lifting web slings
Rubber air bags
Dunnage
Gearbulk uses large numbers
of web slings for lifting cargoes.
They are inspected prior to
every use and withdrawn from
service if damaged in any way.
Rather than consign them to
land fill or incineration, we have
been exploring other uses for
them. These include stitching
several together to provide an
alternative protective material
for cargo stowage (dunnage)
and re-cycling into insulation,
see below.
Rubber air bags are regularly
used to secure certain cargoes
to prevent movement at sea.
They naturally suffer from wear
and tear and although they can
be repaired, they do eventually
reach a point when repair is no
longer realistic. Various ideas
to extend life and re-cycling
opportunities of these air bags
are now being assessed.
Dunnage is used to protect and
secure cargoes and is often
timber which is disposed of after
a single use. Through 2011,
Gearbulk has conducted a drive
to recycle the dunnage which it
controls.
Target – 25% re-use by
end 2012
Actual – 5% reduction in
disposal achieved in 2011
2010
Target – reduce disposal by
25% by the end of 2012
2
Target – achieving 30%
recycling by 2012
Actual – estimated 51%
recycled in 2011
During 2011, emissions data
from the business travel of our
shore based staff has been
collected and will form a basis
for assessing our future efforts
in reducing our emissions in
this area.
Actual – 12.8% achieved
in 2011
1
2009
Total CO2 1,319,708 1,421,826 1,352,637
9.62
efficiently from one trade to
another, it means they will not
spend a significant amount of
time trading in an ECA. So while
we will continue to monitor the
developments in scrubbing
technology, on the basis of
current and projected fuel
costs, it is expected that use of
low sulphur distillate fuel will be
the more cost effective option
for our vessels.
3
4
2011
13,305
12,434
12,811
1.54
1.43
1.54
SOx emissions on Gearbulk trades 2009 to 2011
A novel use has been found for those web slings which are withdrawn and can be sent to China for recycling.
The web slings are broken down to their base fibrous state then rewoven to form light matting which has
excellent insulation qualities and is used in clothing such as Gearbulk sea staff heavy weather gear.
41
GRI indicators
GRI indicators
Page
Report parameters
This report has been compiled in line with the Global Reporting
Initiative (GRI) Level C Guidelines. Below is the index.
3.1
Reporting period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.2
Date of most previous report (if any) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.3
Reporting cycle (annual, bi-annual etc). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.4
Contact point for questions regarding the report or its content. . . . . . . . . . . . . . . . . . . . . . 51
3.5
Process for defining report content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries etc). . . . . . . . . . . . . . . . . . . 42
3.7
Limitations on the scope of boundary of the report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
3.8
Basis for reporting on joint ventures, subsidiaries etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.10 Effect of any re-instatements of information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
3.11 Changes in the scope, boundary, or measurement methods. . . . . . . . . . . . . . . . . . . . . . . N/A
Reporting scope
The reporting period is from
1st January 2011 to 31st
December 2011 and includes
information on activities for
which Gearbulk has financial
control. As all time chartered
3.12 GRI Index table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43-45
vessels are subject to daily
reporting formats similar to our
owned vessels, emissions data
contained in this report also
includes these vessels when
employed on Gearbulk trades,
unless specifically stated
otherwise. It is our intention
that future sustainability
reports will be published on
an annual basis.
3.13 External assurance for the report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Governance, commitments and engagement
4.1
Governance structure of the organisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,25
4.2
Whether the Chair or the highest governing body is also an executive officer. . . . . . . . . . . . 24
4.3For unitary board structure, state the number of members of the highest governance body that
are independent and/or non executive members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4.4Mechanisms for shareholders and employees to provide recommendations or direction to the
highest governance body. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4.14 List of stakeholder groups engaged by the organisation. . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Page
Strategy and analysis
1.1
Statement from the most senior decision maker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.15 Basis for identification and selection of stakeholders with whom to engage . . . . . . . . . . . N/A
Economic Performance indicators
Management approach
EC1 Direct economics value generated and distributed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Organisational profile
EC2 Financial implications and other risks and opportunities due to climate change. . . . . . . . . N/A
2.1
Name of organisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
EC3 Coverage of the organisation’s defined benefit plan obligations . . . . . . . . . . . . . . . . . . . . N/A
2.2
Primary brands, products and/or services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,19,20
EC4 Significant financial assistance received from government. . . . . . . . . . . . . . . . . . . . . . . . N/A
2.3
Operational structure of the organisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
EC6 Spending on locally based suppliers at significant locations of operation . . . . . . . . . . . . . N/A
2.4
Locations of organisation’s headquarters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
EC7 Procedures for local hiring proportion of senior management. . . . . . . . . . . . . . . . . . . . . . N/A
2.5
Countries where the organisation operates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,23
EC8 Infrastructure investments and services provided primarily for public benefit. . . . . . . . . . . N/A
2.6
Nature of ownership and legal form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.7
Markets served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-23
Environmental Performance indicators
2.8
Scale of the reporting organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,26
2.9
Significant changes in structure, size or ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.10 Awards received in the reporting period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Management approach
EN1 Materials used by weight or volume
EN2 Percentage of materials used that are recycled input materials . . . . . . . . . . . . . . . . . . . . . 41
EN3 Direct energy consumption by primary energy source. . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
EN4 Indirect energy consumption by primary source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
EN5 Energy saved due to conservation and energy improvements. . . . . . . . . . . . . . . . . . . . . . N/A
EN8 Total water withdrawal by source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
42
43
GRI indicators
GRI indicators (continued)
Page
Ship safety inspections
LT13 List the accidents when ships have been detained by port inspectors. . . . . . . . . . . . . . . . N/A
Page
N11 Location and size of land in area of high biodiversity value outside protected areas. . . . . . N/A
EN12 Impacts on biodiversity in protected areas and areas of high biodiversity . . . . . . . . . . . . . N/A
EN16 Total direct and indirect gas emissions by weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
EN17 Other relevant indirect greenhouse gas emissions by weight . . . . . . . . . . . . . . . . . . . . . . N/A
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. . . . . . . . . . . . 37-39
EN19 Emissions of ozone-depleting substances by weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
EN20 NOx, SOx and other significant air emissions by type and weight . . . . . . . . . . . . . . . . . . . . 40
EN21 Total water discharged by quality and destination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
EN22 Total weight of waste by type and disposal method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
EN23 Total number and volume of significant spills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
EN26 Environmental impacts of products and services and extent of impact mitigation. . . . . . . . N/A
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. N/A
EN28 Significant fines and sanctions for non-compliance with environmental laws and regulations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Use of labour providers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
escribe how these criteria relate to existing international standards such as conventions to
D
the ILO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Continuity of employment
LT17 Describe measures in place to provide income security and employment continuity from
workers employed/contracted repeatedly but not continuously . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Human rights
Management approach
HR1 Human rights clauses or screening related to investment agreements . . . . . . . . . . . . . . . . 24
HR2 Screening of suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
HR4 Total number of discrimination and actions taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
HR5 Freedom of association and collective bargaining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
HR6 Child labour and measures taken to contribute to the elimination of child labour. . . . . . . . N/A
HR7 Forced or compulsory labour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
Society
Social Performance indicators
Management approach
Labour practices and decent work
Management approach
SO1 Impacts of operation on communities, including entering, operating and exiting. . . . . . . . . N/A
LA1 Total workforce by employment type, employment contract and region. . . . . . . . . . . . . . . . . 26
LA2 Employee turnover by age group, gender and region. . . . . . . . . . . . . . . . . . . . . . . . . . . 26,27
LA4 Percentage of employees covered by collective bargaining agreements. . . . . . . . . . . . . . . N/A
LA5 Minimum notice period(s) regarding operational changed. . . . . . . . . . . . . . . . . . . . . . . . . N/A
LA6 Formal joint management-worker health and safety committees. . . . . . . . . . . . . . . . . . . . N/A
LA7 Injuries, occupational diseases, lost days, absenteeism and work related fatalities. . . . . . . 28
SO2 Percentage and total number of business unit analysed for risks related to corruption. . . . N/A
SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures. . 24
SO4 Actions taken in response to incidents of corruption. . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
SO5 Public policy positions and participation in public policy development and lobbying . . . . . . N/A
SO7 Legal action for anti-competitive behaviour, anti-trust and monopoly practices. . . . . . . . . . N/A
SO8 Fines and non monetary sanctions for non-compliance with laws and regulations . . . . . . . N/A
LA8Education, training, prevention and risk controlled programmes in place regarding serious
diseases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
LA9 Health and safety topics covered in formal agreements with trade unions. . . . . . . . . . . . . N/A
LA10 Average hours of training each year per employee by employee category. . . . . . . . . . . . . . . 31
LA13 Diversity within governance bodies and employee categories. . . . . . . . . . . . . . . . . . . . . . N/A
LA14 Ratio of basic salary of men to women by employee category . . . . . . . . . . . . . . . . . . . . . N/A
Mobile worker working pattern
LT9 Description of policies and programmes to determine working house and rest hours, rest
facilities and leave for seafarers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
LT10 Approaches to provision of facilities to enable mobile workers to maintain personal
communications while working . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
44
45
The Gearbulk fleet
The Gearbulk fleet
Name of Vessel
Type
Falcon Arrow
As of 31st December 2011
Vessels owned or controlled
46
Name of Vessel
Type
Tuju Arrow
OHGC
Year Built
Dwt
OHGC
1986
45,295
Tern Arrow
OHGC
1986
41,077
Gannet Arrow
OHGC
1985
39,260
1985
39,218
Barbet Arrow
OHGC
Year Built
Dwt
Harefield
OHGC1985
41,651
2010
72,863
Hawk Arrow
OHGC
1985
40,269
OHGC
1985
40,563
Macuru Arrow
OHGC
2010
71,460
Osprey Arrow
Tenca Arrow
OHGC
2009
72,863
Petersfield
OHGC1985
42,883
Corella Arrow
OHGC
2009
72,863
Petrel Arrow
OHGC
1985
42,964
Sunbird Arrow
Liquid Pitch
2006
15,002
Siskin Arrow (renamed White Pearl)OHGC
1985
39,273
Bulk Jupiter
Conventional
2006
56,009
Westfield
OHGC1985
41,619
Poplar Arrow
Fleximax
2005
47,852
Wren Arrow
OHGC
1985
43,003
Bulk Saturn
Conventional
2003
52,408
Aspen Arrow
Conventional
1985
28,030
Spruce Arrow
Fleximax
2002
47,792
Auk Arrow
OHGC
1984
43,952
Cedar Arrow
Fleximax
2001
47,818
Crane Arrow
OHGC
1984
42,913
Jaeger Arrow
TEFC
2001
23,529
Finch Arrow
OHGC
1984
39,273
Merlin Arrow
OHGC
1999
55,497
Teal Arrow
OHGC
1984
44,010
Weaver Arrow
OHGC
1998
55,402
Apalis Arrow
OHGC
1983
42,149
Kestrel Arrow
OHGC
1983
42,149
Rakiura Maru
Liquid Pitch
1996
22,350
Canelo Arrow
Fleximax
1997
48,077
Emu Arrow
OHGC
1997
55,457
Grebe Arrow
OHGC
1997
55,671
Kite Arrow
OHGC
1997
55,531
Penguin Arrow
OHGC
1997
55,506
Name of Vessel
Type
Year Built
Dwt
Plover Arrow
OHGC
1997
55,459
Birch Arrow
Semi-open hatch
2007
50,273
Rathboyne
Liquid Pitch
1997
6,649
Tawa Arrow
Semi-open hatch
2008
54,276
Mandarin Arrow
OHGC
1996
55,770
Bulk Leo
Conventional
2008
55,679
Pine Arrow
Fleximax
1996
48,041
Kashi Arrow
Semi-open hatch
2009
54,204
Toucan Arrow
OHGC
1992
55,918
Bulk Neptune
Conventional
2009
55,657
Mozu Arrow
TEFC
1992
42,276
Bulk Pegasus
Conventional
2009
58,736
Swift Arrow
TEFC
1992
42,276
Bulk Titan
Conventional
2009
58,090
Aracari Arrow
OHGC
1992
46,956
Megah Enam
Tweendecker
2009
12,171
Quetzal Arrow
OHGC
1992
46,908
Megah Delapan
Tweendecker
2009
12,160
Jacamar Arrow
OHGC
1992
46,998
Momi Arrow
Semi-open hatch
2009
54,204
Grouse Arrow
TEFC
1991
42,267
Kiwi Arrow
Fleximax
2010
62,924
Swan Arrow
OHGC
1987
45,206
Toki Arrow
Fleximax
2010
62,942
Tsuru Arrow
OHGC
1987
45,206
Pelican Arrow
Fleximax
2011
62,942
Tinamou Arrow
OHGC
1987
45,252
Nandu Arrow
Fleximax
2011
61,860
Cotinga Arrow
OHGC
1987
45,295
Eagle Arrow
Fleximax
2011
61,860
Cormorant Arrow
OHGC
1986
42,996
Puffin Arrow
Fleximax
2011
62,967
Ibis Arrow
OHGC
1986
42,977
Bulk Orion
Conventional
2011
56,155
Vessels held under long-term time charter
47
The Gearbulk fleet I Glossary
The Gearbulk fleet (continued)
Glossary
Fleet changes – 2011
Vessels delivered
Name of Vessel
Type
Date Acquired
Nandu Arrow
Fleximax
March 2011
Rakiura Arrow Liquid Pitch
April 2011
Pelican Arrow
Fleximax
May 2011
Puffin Arrow
Fleximax
July 2011
Bulk Jupiter
Conventional
September 2011
Bulk Orion
Conventional
September 2011
Eagle Arrow
Fleximax
November 2011
Vessels sold
Name of Vessel
BDI
altic Dry Index. An index which provides a daily assessment of the cost of
B
transporting freight on a time charter basis.
BRIC
Acronym referring to Brazil, Russia, India, China.
CapesizeVessels which are too large to transit the Suez or Panama canals and thus have
to pass Cape Horn or the Cape of Good Hope to travel between Atlantic/Pacific/
Indian Oceans.
CFCsChlorofluorocarbons, organic compounds used mainly as refrigerants now
being phased out due to their damaging effect on the ozone layer in the upper
atmosphere, contributing to global warming.
COAContract of Affreightment, a contract requiring the carriage of a determined
quantity of a specified cargo over a given period of time.
CO2
arbon Dioxide – a major Greenhouse gas, an atmospheric increase of
C
approximately 35% since pre-industrial levels has been attributed to burning of
fossil fuels and deforestation, causing global warming. This increase in CO2 levels
is also responsible for increased acidification of the oceans.
DWT
eadweight tonnage is a measure of the sum of the weights a vessel can carry
D
including cargo, fuel, ballast, fresh water and stores.
Earnings Before Interest, Taxes, Depreciation and Amortisation.
Date of disposal
Puffin Arrow
February
Rathrowan
February
Megah Cement
April
EBITDA
Dunlin Arrow
June
ECAEmission Control Area, areas with more stringent regulation of emissions such as
SOx and NOx for environmental and/or human health issues.
Bergen Arrow
August
RhoneSeptember
Frotargentina
October
Megah Lima
November
Avocet Arrow
December
EutrophicationAn accumulation of nutrient in water which causes excessive plant growth and
decay, leading to oxygen depletion which kills fish and other organisms.
FleximaxVessels designed with the open hatch, box shaped hold concept but having fixed
jib cranes rather than travelling gantry cranes.
GHGGreenhouse Gases, generic name for a range of gases which absorb and reflect
thermal radiation back to the earth’s surface which would otherwise have escaped
into space, thus leading to global warming.
GISSGearbulk Improvement and Safety System, an electronic database featuring
Gearbulk policies, procedures, manuals and general information.
GLTGearbulk Leadership Team.
GRIGlobal Reporting Initiative - a non profit organisation promoting sustainability,
producing one of the world’s most widely used standards for sustainability
reporting.
Handysize
Typically dry bulk/break bulk vessel in deadweight range of 15,000 – 35,000 mt.
HandymaxA larger version of the Handysize, up to 60,000mt deadweight.
Clarksons Research Data disclaimer
The statistical and graphical information contained herein is drawn from the Clarkson Research Services Limited (“CRSL”) database and
other sources. CRSL has advised that (i) some information in CRSL’s database is derived from estimates or subjective judgments; (ii) the
information in the databases of other maritime data collection agencies may differ from the information in CRSL’s database; (iii) whilst
CRSL has taken reasonable care in the compilation of the statistical and graphical information and believes it to be accurate and correct,
data compilation is subject to limited audit and validation procedures and may accordingly contain errors; (iv) CRSL, its agents, officers
and employees cannot accept liability for any loss suffered in consequence of reliance on such information or in any other manner; (v) the
provision of such information does not obviate any need to make appropriate further enquiries ; (vi) the provision of such information is not
an endorsement of any commercial policies and/or any conclusions by CRSL; and (vii) shipping is a variable and cyclical business and any
forecasting concerning it cannot be very accurate.
48
HCFCsHydrochlorofluorocarbons, compounds used mainly as refrigerants now being
phased out due to their damaging effect on the ozone layer in the upper
atmosphere, contributing to global warming.
IMOInternational Maritime Organisation, United Nations agency responsible for the
safety and security of shipping and the prevention of pollution from ships.
ISO 9001:2008Standard relating to quality management.
49
Glossary I We welcome your feedback
Glossary (continued)
We welcome your feedback
ISO 14001:2004Standard relating to environmental management.
LRQALloyd’s Register Quality Assurance, a provider of management system certification,
verification and training.
LTIFLost Time Injury Frequency, the number of Lost Time Injuries per million man-hours
worked during the reporting period.
MACNMaritime Anti-Corruption Network, a global network promoting good practice in
the maritime industry by tackling bribes, facilitation payments and other forms
of corruption.
If you have any comments, questions or suggestions
about this report, please contact:
David Roberts, Senior Manager, Sustainability & Technical
Gearbulk (UK) Limited, 5 The Heights, Weybridge Surrey KT13 0NY UK
Email: david.roberts@gearbulk.com
MARPOLAbbreviation for marine pollution and refers to IMO’s International Convention
for the Prevention of Pollution from Ships which covers pollution caused by oil,
noxious liquids in bulk, pollutants carried in packaged form, sewage, garbage and
air pollution.
NOxGeneric term for nitric oxides and nitrogen dioxide formed during the combustion
process. Forms acid rain and destroys the earth’s protective ozone layer. Inhalation
can cause or worsen respiratory diseases such as bronchitis, emphysema and
aggravate heart disease.
NGONon Government Organisation, an organisation which operates independently from
any form of government and is not a conventional for-profit business.
OHGCOpen Hatch Gantry Crane
PanamaxA dry cargo vessel the size of which is principally determined by the dimensions of
the Panama Canal lock chambers. About 60,000 to 80,000mt dwt.
PMParticulate Matter, tiny solid and liquid particles suspended in the atmosphere.
Can be naturally occurring (volcanoes, fires, dust storms) and from man made
sources such as burning of fossil fuels.
SEEMPShip Energy Efficiency Management Plan, a tool which incorporates best practices
for the fuel efficient operation of a vessel. It is being introduced by IMO.
SOxSulphur oxides, broad term referring to a range of sulphur and oxygen containing
compounds which can be generated naturally (volcanoes) and from man made
sources such as burning of fossil fuels.
SSISustainable Shipping Initiative, a four stage initiative comprising leading industry
companies and NGOs designed to help the industry change to a more sustainable,
successful long term future.
SSGSustainability Steering Group, a group wide initiative within Gearbulk to develop
and implement the company’s sustainability strategy.
STCWStandards of Training, Certification and Watchkeeping. The IMO Convention
for STCW prescribes minimum standards relating to training, certification and
watchkeeping for seafarers.
TEFCTotally Enclosed Forestry Carrier.
VOCsVolatile Organic Compounds. Organic compounds that easily enter the air due to
their low boiling points. Solvent release from paints is a typical example.
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GEARBULK
www.gearbulk.com