TECHNICAL E-BULLETIN

October 2022 Issue

Foreword by Do I understand the task? Do I know the risks this
activity has? Do I have the right tools with me? Do I
know the processes to complete the task? Can I do

Technical Director this on my own, or do I have support from my

colleagues? These questions are at the base of our
capabilities to perform our duties safely.
Completing the job - safely
At Berge Bulk, we invest a lot in safety, and we say
Unfortunately, the loss of lives during operations is still
that Safety Matters and Safety is First! Proper
happening in 2022. Regardless of our years of
preparation for a job is the key not only to concluding it
experience in ship operations, time spent on training or
with the right results but especially to executing it
developing new processes, tools and ways to minimise
safely. Safety is not only for us; it is very important to
risks, we must reflect on how we could have avoided
secure a proper working environment for our
the tragic event, and especially on what we are going
colleagues and all the partners supporting our
to do differently from now on.
operations onboard and ashore daily. Let’s not forget
this, and let’s think about this first!
In June this year, we had a tragic incident onboard one
of our vessels where three stevedores lost their lives
I am always open and ready to receive your
when entering the wrong cargo hold during cargo
comments, criticism, improvement suggestions and,
loading port operations. Despite the crew’s swift
why not, some good feedback as well! Don’t hesitate to
reaction, three lives were lost. So we have to analyse
reach me at [Link]@[Link].
the situation to understand what went wrong and why
operations that have been repeated hundreds of times
Thank you!
could end in such a tragic way.

Every day, we are driven by the need to complete a job

to move on to the next one. It is what energises a lot of
us, and it is what moves us towards our objectives.
However, the incident shows, once more, how
Paolo Tonon
important it is to take the time to think before engaging
Technical Director
in any activity.

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Safety - looking back Despite the many new means introduced
to protect our crew and operate our
vessels safely, our seafarers and the
at how far we have safety culture within our company make
the difference between safe ships and
come and where we severe injuries and incidents. The safety
of ourselves, our colleagues and our
vessels ultimately relies on how we think
are heading and interact with one another. Therefore,
our behaviours, practices, and care for
HSSEQ & Marine Team safe practices become norms and define
our company culture.

Harsh Makkar recently took over the wheel as the new

Head of HSSEQ & Marine. In this issue of the Dispatch
safety article, the HSSEQ & Marine team will share a
few glimpses from the past and recap the history we
share and where we are heading.

INSIGHT INNOVATION INFLUENCE INTERVENTION INTEGRATION

Seek and share Strive for Inspire & create an Intervene Integrate safety in
knowledge continuous open and trusting whenever you see all work
improvement atmosphere unsafe conditions processes, plans
and acts and activities

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In 2012, most of our seafarers had transferred from support us, but what defines our success are
employment directly under BW to Berge Bulk, where fundamentally the behaviours and practices we apply
we also established our in-house technical in our everyday life on board and in the offices. That
management. At that time, all our colleagues at sea was why we introduced Safety Matters.
were employed through three manning agents, i.e.,
BW India, BW Philippines and Fairplay Romania, with
whom Berge Bulk shares a long and successful history.

In this journey, we have dozens of proud seafarers who USE TOOLBOX TALKS TO...
have sailed on board the Berge Fleet for more than 20
years and several more than 25 years with the • Make sure all team members are aware of the
company. In 2016, our pool of seafarers was hazards and risk related to the actual task or job
approximately 1,300. Berge Bulk entered the Handy • Help team members understand their responsibilities
segment in 2015, and a new crewing agreement with • Ensure that everybody knows what is expected of
Chinese-based Sino Crew Beijing to man our handy them
fleet was made. We were pleased and very excited to • Involve all team members in the planning of the job
welcome our Chinese seafarers to Berge Bulk’s fleet, • Share experiences and knowledge about the job
and fortunately, many of our loyal Chinese seafarers
are still with us today. Take 5 is good for helping us remember key safety
points before we start the job
Since 2016, a lot of water has passed under the
bridge. The dry bulk industry has undergone dramatic
changes. Customers’ and authorities’ requirements for
safety, fleet performance, and energy efficiency have
increased significantly and quickly. In parallel with the
Identify

massive changes in our operational climate, and Plan

Think
customers’ and authorities’ requirements, the Berge
Bulk fleet has expanded and welcomed hundreds of WORK PLAN RISKS &
CONTROL
APPROACH OTHER
QUESTIONS Go
ahead
new colleagues at sea. Our corporation with regional Task, steps,
tools,
Risk
assessment
Worksite/
situation
Concerns &
new ideas

manning agents today amounts to ten different responsibilities,

communication
& control
measures
& work
posture

manning agents.

Berge Bulk is among today’s world’s largest dry bulk

shipping companies. Reflecting on the time that has
passed, it can be substantiated that our Stop

comprehensive Safety Management System (SMS)

and advanced use of the Fleet Management Platform
(Sertica). Along with more tailored training
programmes and the deployment of new technologies
on board have raised the operational standards and
improved the safety of our seafarers and vessels.
Along with the many changes, adjustments and
investments in becoming the world’s leading dry bulk
Common
company, a concrete initiative that points towards how understanding
among all
The job
can start

we wish to drive our company forward was introducing

team members

our Safety Matters programme launched in 2020.

We recognise that the safety of ourselves, our
Despite the many new means to protect our crew and colleagues and our vessels ultimately relies on how we
operate our vessels safely, our seafarers and the think and interact with one another. Our behaviours
safety culture in our company are what make the and care for safe practices set standards and define
difference between safe ships and severe injuries and our company culture. This is what the Safety Matters
incidents. Formalised processes and systems can only programme is all about.

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An often used but still valid quote by the legendary Our Safety Matters programme has been running for
management consultant Peter Drucker says, “Culture some time, and we will soon release a series of Safety
eats strategy for breakfast.” To be clear, he didn’t mean Matters training modules that ensure the key elements
that strategy was unimportant – instead, a powerful are remembered. In the second half of 2022, we will
and empowering culture is essential and the correct launch a tailored Safety Matters campaign for office
route to a company’s success. In essence, it is how we staff. The next onboard Safety Delta survey is about to
do things at Berge Bulk that defines our success. be released and will support the Senior Officers
Before we do anything, we think about safety, the onboard and the rest of our seafarers to continue
safety of ourselves, our colleagues, and our vessels. Berge Bulk’s journey.

And where has this taken us today as a company? With this update, we wish all seafarers at Berge Bulk
fair winds and safe sailing. Please continue to look
• We are at well below industry average injury after yourself and one another. Safety is critical not
frequency, and Berge Bulk is, therefore, a safer only for yourself but also for your families, your
employer than many of our peers. colleagues, and the company. So let’s continue to live
• Crew members are frequently using Berge Bulk’s and perform this safety culture. We will not only reduce
anonymous SpeakUp@[Link] channel to incidents and improve our safety performance, but
raise their concerns on undesired behaviours and most importantly, we will ensure that all seafarers
unsafe practices to the management’s attention always return home safely to their families after ending
• Our vessels have not been involved in any serious your contract.
navigational incidents since 2019.
• No significant oil spills to sea or other environmental
incidents have been registered since 2016.
It all starts with you…
These are important achievements for us, our
customers and Berge Bulk. It is also a testament to our
solid foundation that we continue to build on and are
on the right path.

Our shared vision is to achieve zero harm — for our

people and for the environment. We do this by taking
responsibility for our own actions, as well as
demanding the highest safety standards of each other.
Our united commitment to this will ensure a
sustainable culture of safety, efficiency and
sustainability. Be smarter, be safer…

Page 5 | The Dispatch (October Issue) - For internal distribution only.

Global Supply Chain
Challenges
Ryan Dalgado, Head of Procurement

After more than two years of the COVID-19 pandemic, How some frequently used categories are impacted:
it remains a disruptive force with new hot spots and
spikes in cases causing further disruptions and 1. Chemical and Gases
uncertainties. Although the new COVID-19 variants are
milder in general, it still requires staff to quarantine and The chemicals and gases sector faces intense raw
governments to implement regulations that negatively material shortages for several products, driving up the
affect the logistics chain. In addition, the conflict in cost of procuring those materials and the subsequent
Ukraine is also severely impacting the supply chain production of the end products.
and driving fuel prices up dramatically.
The key drivers are:
These two factors have caused unforeseen turmoil in 1. Surge in demand
world economics, causing sharply increased costs for 2 The cost increase in raw material
transport, raw material and labour. Lockdowns and 3. Lower production output
increased costs have disrupted supply chains as fewer,
more expensive freight options and unreliable Chemicals: The global shortage of raw materials like
availability of raw materials and sub-components have phosphoric acid or caustics is severe and has led to
led to increased costs and longer delivery times for shortages of finished chemicals and substantial price
spares and equipment. As a result, all equipment increases of up to 50%.
manufacturers and suppliers are experiencing
significant increases in material, sub and energy prices Refrigerants: Have extraordinary cost price increase
and prolonged lead times for sub-components. in the North American region due to the combination of
Indications are that prices will be adjusted more raw material cost increase, the extension of the
frequently than before from a quarterly to a monthly anti-dumping tax on HFC (Hydrofluorocarbon)
basis, and price increases will not be applied equally. components, and the phase down of HFCs, which
Still, that different material groups will get higher or started in January 2022. The Netherlands and China
lower allocation depending on cost increases, type of are also affected by increased customs restrictions.
spare parts, market position and competition.
2. Paint
We also continue facing global freight and logistics
difficulties due to low capacity and bottlenecks in the The global raw material index for paints has shown
transport market. China is where we find most of our steady increases since December.
supplies and services; however, lockdowns in China
have severely restricted the ability to get supplies and Increases are experienced in most raw material
services on and off the vessel. As a result, even routine categories, with the most significant impact in
activities such as life raft exchanges and landing empty monomers, solvents, Tio2, extenders, zinc (due to
gas bottles became a challenge. This has resulted in hedges) and epoxy. This increase in raw material
us having to move some deliveries of spares to costs, along with increased costs for energy,
vessels from China to more expensive locations such transportation, packaging and labour, has resulted in
as Australia, where the cost is about 50% higher. higher costs for the finished paint products.

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In addition, disruptions to supply chains have resulted
in the limited availability of paint, even at key locations.

Paint Raw Material Price Index:

120
114.3 114.4
111.1 112.3
109.2
105.8
104.4
101.2 101.9
99.8 100.0
100 97.3 98.2
95.2

Baseline 100 = December 2021

80
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun Jun
21 21 21 21 21 21 22 22 22 22 22 22 22 1 22 3
M M

With a baseline of 100 in December 2021, the Index has shown a steady rise through 2022.

3. Lubricants
Crude Oil Variation - Dec 21 - Jul 22 (per Barrel)
Crude oil prices have risen sharply since the start of
Crude Oil
the year, as indicated in the graph. However, despite 125
the recent dip, Base Oil price remains high as it usually
lags the Crude Oil price by about three to four months, 115

and refineries favour producing diesel over Base Oil. 105

USD/Barrel

95
Additive suppliers have again increased prices from
July because of increased transportation costs and 85

disrupted supply chains - Lubrizol increased 14%, and

75
Infineum increased 12%. This inevitably impacts the
prices of finished lubricant products. 65
21-12 22-01 22-02 22-03 22-04 22-05 22-06 22-07
Period

Indications also show that the Lubricant prices will WTI Brent WTI
+30 USD/Barrel
Brent
+38 USD/Barrel
keep increasing in Q3-Q4/2022 before seeing some Source: Bloomberg +182% +202%

respite in Q1/2023.

4. Machinery/Spares 5. Airfreight

Manufacturers of Equipment, Machinery and spare Rates show signs of softening, but in June, the rates
parts are heavily impacted by the double whammy of are still 120% higher than the same period in 2019 and
the COVID-19 pandemic and the conflict in Ukraine. 23% higher than the 2021 baseline. Rates are
Rising raw materials, energy, freight and labour costs expected to remain high, driven by aggressive yield
have resulted in substantial production costs. In management by carriers and a hike in fuel prices.
addition, supply shortages of key sub-components Airlines continue to manage yields aggressively, where
such as microchips have led to unreliable production cargo revenue represents 30% of their revenue –
schedules and significant delays, especially for compared to 10-15% in 2019. In addition, jet fuel
precision parts. These conditions, directly and prices have increased steadily since April 2020 and
indirectly, affect the support for electronically controlled came in at $159 per barrel in July.
engines as many key components are electronics.

Page 7 | The Dispatch (October Issue) - For internal distribution only.

Berge Bulk’s all of which are needed to calculate the AER (Annual
Efficiency Ratio). Based on the AER results, the CII
rating grade will be determined.

Sustainability Our Performance: Our CII performance has been

consistently steady within the “C” grade for the past
Performance Update eight months. Our percentage of vessels passing the
CII rating has increased from 65% in June to 74% in
July. Berge Orizaba and Berge Meru improved their CII
Sustainability Team ratings compared to last month.
In 2020, Berge Bulk launched our Blue Matters
environmental sustainability strategy. In Blue Matters,
we mapped out our industry-leading ambition to
achieve carbon neutrality, reduce our waste footprint,
champion marine biodiversity, build a more sustainable
supply chain, raise the standard of ship recycling, and
more.

Our Sustainability Performance

For Berge Bulk to achieve our fleet-wide sustainability

goals, each vessel in the fleet has a role to play. That
is why we have set sustainability targets for each ship
and measured performance against those targets in
the monthly Sustainability Metrics Tracker. Each
Vessel Manager receives this report on the 10th of
each month and follows up with the vessels
accordingly.

In this issue of The Dispatch, we will share the latest

sustainability performance highlights.

RightShip GHG Rating

As of July month-end, our fleet-wide sustainability
performance is as follows...
Our Target: The RightShip GHG (Greenhouse Gas)
rating compares the relative efficiency of a vessel
Carbon Intensity Indicator (CII)
using the EEDI (Energy Efficiency Design Index). A
ship is assigned a rating (“A” to “G”) based on how its
Our Target: The CII ratings aim to drive vessels to the
EEDI compare to the average EEDI score for vessels
Paris Agreement targets. Once it comes into effect in
of a similar type and size.
2023, the CII will rate vessels on a five-grade scale: A,
B, C, D, and E - from best to least performing. Vessel
The average EEDI is given a “D” rating, following a
upgrades or significant operation improvements are
peer distribution or bell curve. Vessels which are most
required for vessels receiving a “D” rating three years
efficient than the average are given an “A” to “C” rating,
in a row or for ships receiving a grade of “E” during an
while less efficient ships are given an “E” to “G” rating.
annual review. To drive emissions down and towards
the target set by the IMO (reduction in the carbon
Our Performance: Based on RightShip’s calculation,
intensity of 40% by 2030 vs the 2008 baseline), the
64% of our vessels are given a passing rating score of
minimum rating is “C”, and the threshold for the rating
“A”, “B”, “C”, or “D”. Berge K2 has improved its
will become increasingly stringent towards 2030.
RightShip GHG rating from “D” to “C”.
Vessels have submitted fuel consumption and distance
travelled to the IMO DCS (Data Collection System) –

Page 8 | The Dispatch (October Issue) - For internal distribution only.

 Total Food Waste

Our Target: Berge Bulk has committed to reducing

food waste by 10% (versus a 2021 baseline). Similarly,
each vessel has been assigned a food waste reduction
target. We track cubic metres of food waste per vessel
through the monthly EMS report loaded onto Sertica.
While each ship will have an individual target, the
fleet-wide average target is to achieve less than 0.46
m3 of food waste per vessel per month.

Total Plastic Waste Our Performance: We are on the right track to

achieving our food waste YTD target. As of July, our
Our Target: Berge Bulk has committed to reducing fleet-wide performance is 0.32 m3 of food waste per
plastic waste by 25% (versus a 2025 baseline). vessel. We look to see more improvements when we
Similarly, each vessel has been assigned a plastic launch the Berge Bulk Food Waste Cookbook. The
waste reduction target. We track cubic metres of cookbook will feature recipes submitted by our people
plastic waste per vessel through the monthly EMS for our people. It contains 20 healthy recipes with a
(Environmental Management System) report loaded common leftover food item as the key ingredient.
onto Sertica. While each ship will have an individual These recipes come from the Philippines, India,
target, the fleet-wide average target is to achieve less Europe, and China.
than 1.34 m3 plastic waste per month per vessel.

Our Performance: We are on the right track to

achieving our plastic waste YTD target. As of July, our
fleet-wide performance is 1.13 m3 plastic waste per
vessel. We have launched a few challenges on
Well@Sea to raise awareness about plastic waste and
how our crew can reduce, reuse, or recycle plastic on
board.

Congratulations to the following vessels for

demonstrating the most impressive food waste
reduction (vs target) last month.
• Berge Triglav
• Berge Jaya
• Berge Tsurugi
• Berge Dachstein
• Berge Everest

Congratulations to the following vessels for We need your support!

demonstrating the most impressive plastic waste
reduction (vs target) last month. Each crew member has an important role in our Berge
• Berge Fuji Bulk sustainability journey. We are counting on you
• Berge Broad Peak to…
• Berge Cristobal
• Berge McClintock
• Berge Cho Oyu

Page 9 | The Dispatch (October Issue) - For internal distribution only.

• Follow Less is More guidance for efficient operations.
• Enter timely and accurate fuel data into the daily
noon report.
• Achieve your vessel’s plastic waste & food waste
reduction goals.
• Lead by example and inspire your crew to reduce
waste.
• Ensure timely and accurate submission of your
monthly waste report.

Berge Bulk is now a

Participant of the
ECHO Programme!
Sustainability Team
The ECHO (Enhancing Cetacean Habitat and
Observation) programme is an initiative by the Port of
Vancouver for vessels to slow down in certain marine
protected areas to reduce underwater noise pollution.

Underwater
Underwater noise
noise pollution
pollution is
is aa threat
threat to
to the
the native
native How
How does
does it
it work?
work?
Orca
Orca Whales,
Whales, as
as itit interferes
interferes with
with their
their ability
ability to
to hunt,
hunt,
navigate, and communicate.
navigate, and communicate. Now
Now that
that we
we have
have signed
signed upup for
for this
this programme,
programme, the the
Vancouver
Vancouver Port
Port Authorities
Authorities will
will know
know toto contact
contact our
our
What
What do
do we
we need
need to
to do?
do? vessel
vessel masters
masters (via
(via emails,
emails, ship
ship agents,
agents, oror pilots)
pilots) to
to
confirm
confirm the
the intention
intention to
to slow
slow down
down whenever
whenever passing
passing
To
To participate
participate in
in this
this voluntary
voluntary program,
program, Berge
Berge Bulk
Bulk through
through these
these designated
designated areas.
areas. Speed
Speed information
information is is
vessels
vessels calling Vancouver simply need to slow down in
calling Vancouver simply need to slow down in collected
collected automatically
automatically via
via the
the Automatic
Automatic Identification
Identification
certain
certain areas
areas at
at certain
certain times
times of
of the
the year:
year: System.
System.
•• Between
Between 11 June
June and
and 30
30 November,
November, Berge
Berge Bulk
Bulk
vessels
vessels travelling
travelling via
via Haro
Haro Strait
Strait and
and Boundary
Boundary Pass
Pass Upon
Upon receiving
receiving the
the request,
request, vessel
vessel masters
masters should
should
should
should slow
slow down
down toto 11
11 knots
knots or
or less.
less. confirm
confirm our
our intention
intention to
to keep
keep within
within the
the speed
speed limit
limit with
with
•• Between
Between 11 June
June and
and 31
31 October,
October, Berge
Berge Bulk
Bulk vessels
vessels the
the operators.
operators.
travelling
travelling at
at Swiftsure
Swiftsure Bank
Bank should
should slow
slow down
down to
to 11
11
knots
knots or
or less.
less. Berge
Berge Bulk
Bulk is
is committed
committed to
to preserving
preserving nature
nature and
and its
its
biodiversity
biodiversity to
to make
make the
the world
world better!
better!

Page 10 | The Dispatch (October Issue) - For internal distribution only.

 Thank you for reading this issue.

Please write to communications@[Link] if

you wish to provide feedback or let us know what topics
you would be interested to read.