Moving forward The depression in shipping charter rates, which is expected to continue in 2017, will continue to exert pressure on the operating costs of vessels. We anticipate a challenging period for FMS as further cost optimisation is required in order for asset owners to remain competitive, whilst demanding the highest level of operating standards. FMS will continue to implement strategies and initiatives focusing on delivering superior performance, cost optimisation and operational efficiency in support of the objectives envisioned in MISC2020. The division will also work on developing in-house FSRU engineering capabilities in preparation for potential future FSRU business requirements. Another factor that will likely have big influence on fleet operations going forward is the compliance with specific regulatory or legislative requirements that will require substantial financial investment. For instance, the Ballast Water Management (BWM) Convention which comes into effect in September 2017, would involve substantial investment in the installation of ballast water management system on board the vessels. Such investments certainly impose financial pressure on the owners and in turn will impact the operation of the vessels financially. To this end, we are currently reviewing the retrofit plan in 2017. In addition to the BWM Convention, come 1 January 2019, the MARPOL Annex VI, Chapter 4 relating to ship energy efficiency regulations will come into effect. FMS’ Fuel Efficiency team is already working on gathering the necessary data to ensure compliance with these new regulations. 85 Performance Review
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