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DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2014 – 169 Distribution : daily to 29850+ active addresses 18-06-2014 Page 1 Number 169 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Wednesday 18-06-2014 News reports received from readers and Internet News articles copied from various news sites. The barquentine LOA passing the Limfjordsbroen in Aalborg Denmark. On board are Rotary exchange students from most parts of the world. Photo: Lars Engelbrecht Rohde ©
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Page 1: DAILY COLLECTION OF MAR ITIME PRESS CLIPPINGS 2014 – 169newsletter.maasmondmaritime.com/pdf/2014/169-18-06-2014.pdf · 2014-06-17 · DAILY COLLECTION OF MAR ITIME PRESS CLIPPINGS

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Number 169 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Wednesday 18-06-2014

News reports received from readers and Internet News articles copied from various news sites.

The barquentine LOA passing the Limfjordsbroen in Aalborg Denmark. On board are

Rotary exchange students from most parts of the world. Photo: Lars Engelbrecht Rohde ©

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Your feedback is important to me so please drop me an email if you have any photos or articles that may be of interest to the maritime interested people at sea and ashore

PLEASE SEND ALL PHOTOS / ARTICLES TO :

[email protected]

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EVENTS, INCIDENTS & OPERATIONS

The CSCL MERCURY at the Westerchelde – Photo : Henk Nagelhout ©

GIANT OFFSHORE 'SOCKET' HELWIN BÈTA STARTS JOURNEY TO OPEN SEA

On Saturday June 14, the HelWin bèta topside left Heerema Fabrication Group’s (HFG’s) yard in Zwijndrecht. TenneT's giant converter station was transported along the river the Oude Maas to Schiedam for the last fabrication activities. This operation marks the start of a journey on which the platform will sail to the Helgoland area in the German North Sea. Here it will be positioned on top of the already installed jacket in August 2014. TenneT's 690 MW transmission link will connect offshore wind farm Amrumbank West located in the cluster HelWin in the eastern North Sea to the German grid. The wind farms from Amrumbank West will be connected with AC cables to the HVDC converter platform situated in the North Sea and further through 85 km of DC sea cable and 45 km of land cable to the HVDC onshore station at the grid connection point at Büttel. The connection is due to be operational in 2015. HFG started the construction of the 10,200-tonne HVDC topside in October 2012, after winning the contract from Siemens in June that year for the Engineering, Procurement, Construction and Installation (EPCI) of the HelWin beta platform. The 4,500-tonne jacket for the project was constructed at HFG’s yard in Vlissingen, and installed by HMC’s crane

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vessel Thialf in April 2014. The HelWin bèta topside measures 98 meters in length, 42 meters in width, and 28 meters in height.

Photo : Willem Holtkamp - http://fotomaker.jalbum.net/FOTOMAKER/ ©

HFG’s CEO Koos-Jan van Brouwershaven says, “This EPCI project stands out because of its complexity and size. We managed and built both the jacket and topside in a relatively short period of 20 months, a significant performance and quite unique for wind energy projects. The project’s complexity is due to the fact that a closed structure will be installed offshore which will have a controlled and acclimatized environment on the inside.”

Photo : Marijn van Hoorn ©

Supplying power to 700,000 German homes The platform is equipped with Siemens’ High Voltage Direct Current (HVDC) technology allowing a low-loss transmission of wind power generated in the German sector of the North Sea. The converter platform is one of the main components of the TenneT DC offshore grid connection HelWin2. The offshore converter station’s 690MW transmission capacity will supply power to about 700,000 homes in Germany.

Energie wende As an international high voltage grid operator TenneT delivers an essential contribution to the 'Energiewende' in Germany by bringing offshore wind energy to land and by strengthening its onshore net. Currently, TenneT is working on ten projects to connect wind farms in the German North Sea. These projects total 8,000 MW of renewable electricity, enough energy to supply over 8 million households. With these projects TenneT delivers a huge contribution to the transition to a sustainable energy supply.

Tanker hit by pirates for second time Another tanker has been attacked in Southeast Asia as the region increasingly becomes the global hotspot for piracy. A product tanker, Ai Maru, belonging to Canter Marine, a Singapore registered Japanese owner, left Singapore for the Gulf of Thailand on Saturday carrying 1,520 tonnes of marine gas oil.

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According to ReCAAP, at or about 2030 hrs the 1,800 dwt ship was boarded by an unknown number of robbers from three speed boats in the South China Sea. Maritime assets were deployed in response. At about 0050 hrs, Ai Maru stopped with its shipboard lighting turned on, and it was assessed that the unauthorized personnel had left the vessel as they have been alerted that the maritime authorities were closing in. A Malaysian maritime enforcement vessel proceeded alongside the Ai Maru for investigation.The same vessel, Ai Maru had been boarded by pirates in 2012 in the South China Sea with the same intention of siphoning. However, the pirates’ plan was foiled when the authorities were in the vicinity. This time round, the pirates’ plan was again foiled owing to the quick response from regional maritime authorities. Incidents of fuel theft in the region have escalated dramatically in recent months, with the UN warning last Thursday that the region has become the worst place on Earth for piracy incidents. Source : seashipnews

ABB: Tests confirm up to 27 percent fuel savings on ships from Onboard DC Grid

Industry’s first documented results from Onboard DC Grid vessel confirm considerable fuel and noise reduction.

ABB, the leading power and automation technology group, today released third-party verification that its Onboard DC Grid helps vessels reduce their fuel consumption, cut noise and trim their environmental impact. The measurements and tests, conducted by Pon Power in collaboration with ABB on Myklebusthaug Offshore’s platform supply vessel “Dina Star,” identified reduction of specific fuel oil consumption of up to 27 percent. These are the first documented results from a vessel outfitted with ABB’s Onboard DC Grid, which allows engines to run at variable speeds for top fuel efficiency at each load level.The tests also measured fuel consumption in dynamic positioning operations during challenging weather conditions, identifying fuel savings of 14 percent. Dynamic positioning operations, where computers automatically maintain a vessel's position and heading, account for a considerable portion of a typical offshore vessel’s operational profile. “Our Onboard DC Grid is a

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significant step forward for electric propulsion. We are pleased that the concept delivered results that exceed our expectations”, said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “Onboard DC Grid is a competitive advantage to ship owners operating a wide range of ship types from offshore vessels to ferries and yachts seeking to increase fuel efficiency and reduce emissions.” In addition to fuel consumption, Pon Power and ABB measured Onboard DC Grid’s effect on engine room noise levels. Tests showed 30 percent noise reduction, contributing to improved working conditions aboard the vessel.

"Noise and vibration reduction has already been a focus of ours for years with our GenFlex Design solution. The ability now to document this level of fuel efficiency alongside the noise reduction is avery important new step for us as a power solution provider, especially for our customers operating in challenging conditions", says Ole Knarberg, Commercial Director for the Marine segment in PonPower Scandinavia. Dina Star is powered by four Caterpillar 3516 engines in combination with a C32 in a variable speed application. “We operate in a highly competitive market where customers are increasing their focus on operational costs and environmental impact. The results from Dina Star, the first vessel to feature ABB’s advanced Onboard DC Grid technology, are promising and enhance our competitive edge”, says Tore Myklebusthaug, General Manager at Myklebusthaug Management. “Based on the test results,we can now confidently say that the Onboard DC Grid delivers considerable fuel savings, to the benefit of the vessel charterers.” ABB introduced the innovative Onboard DC Grid power distribution system in 2011. Platform support vessel “Dina Star,” delivered to Myklebusthaug Management by Kleven Yard in 2013, is the first vessel powered by the Onboard DC Grid. ABB’s Onboard DC Grid power distribution system was granted “Approval in Principle by American Bureau of Shipping” in January 2014.

LIFTBOAT MASTER REQUIRED “International Liftboat operator seeks an experienced self propelled liftboat master for work on board their vessel working off Nigeria. Interested applicants please write to :

[email protected]

Navy fends off pirates in South China Sea

A tanker - believed to be managed by a Singapore firm - had a close shave with pirates in the South China Sea early Sunday morning (June 15, 12.45am). The Singapore Navy said in a statement on Facebook June 15 that it sent a vessel to help the tanker. The RSS Gallant was the first vessel to arrive at the scene before it was joined by its Malaysian and Indonesian counterparts. The three navies fended off the attack, but the pirate ship managed to flee the scene. Source : ChannelNewsAsia

Idea Marine Appointed Agent for Ecospeed/Hydrex in Sweden

Ecospeed/Hydrex have a new agent in Gothenburg, Sweden. Idea Marine AB will represent and support Ecospeed, Ecoshield and Hydrex services throughout the country. Idea Marine is owned by Ola Stephanson, Naval Architect MSc, with some 30 years of experience in ship propulsion design and sales. Idea Marine AB was founded in 2010 and has since delivered globally some 50 own-designed fixed propellers and propeller blades. The sizes range

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from 60kg weight to 15 ton. A consistent part of Idea Marine’s activity is consultancy on ship efficiency. The company uses sophisticated measurement methods and tools to verify the improved efficiency. Ola Stephanson said, “In line with this work it is exciting to pick up a recognized product like Ecospeed as well as Hydrex unique methods of underwater repairs. The latter are becoming increasingly important since Gothenburg, largest harbour in Northern Europe, is soon likely to be without a ship repair facility.” Rob Wolthuizen, International Sales Manager for Ecospeed and Hydrex commented on the appointment: “We are proud to welcome Idea Marine to our expanding network of agents. The Swedish market is very important to us, particularly since Ecospeed is the most durable and overall best coating available for ice-going vessels and since a non-toxic coating system is vital in sensitive waters such as the Baltic. Ola Stephanson’s experience in ship efficiency, and Ecospeed/Hydrex’s ability to deliver in this field will help Swedish owners and operators to save money on fuel while also protecting the environment.” Hydrex offers shipowners Ecospeed, a long-lasting and environmentally safe, non-toxic, cleanable underwater hull coating system, and Ecoshield, the ultimate protection from cavitation and corrosion damage for hulls, rudders and underwater running gear. Ecoshield very recently received the Seatrade 2014 Innovation in Ship Operations Award after facing tough competition and the scrutiny of highly qualified, experienced and respected judges. Ecospeed and Ecoshield are produced, distributed and supported by Subsea Industries, a subsidiary of Hydrex NV, based in Antwerp, a global provider of turnkey underwater repair and maintenance solutions and technology. In addition to Ecospeed and Ecoshield, Hydrex Group offers turnkey underwater repair and maintenance solutions to ship owners wherever and whenever they are needed, enabling vessels to stay in class and in business without the need for frequent drydocking. Hydrex offers a combination of products and services which can help shipowners/operators greatly reduce their fuel costs. Company details can be found at www.hydrex.be , http://www.ideamarine.se

Gulf to offer largest ship repair capacity outside of China

Biennial Seatrade Middle East Maritime conference returns to Dubai to highlight capacity and diverse range of refit, repair and refurbishment that Gulf dry dock operations now offer International and regional shipping operators, ports, financiers and maritime professionals will meet in Dubai at the forthcoming Seatrade Middle East Maritime (SMEM) summit and exhibition to discuss the opportunities and challenges that global fleet growth will present to the region as it steadily develops into a world-class centre of excellence for ship repair and refurbishment.

The three-day event which starts on 28 October 2014 has dedicated a panel session to ship repair, which has attracted high profile experts including Geoffrey Taylor, Managing Director, Topaz Marine Engineering, UAE and Lars Seistrop, Managing Director, Damen Shipyards Sharjah & Albwardy Marine Engineering, UAE, who will debate the issues surrounding ship repair and refurbishment.

“The Middle East is a world-class centre of excellence for ship repair with a number of well respected shipyards already offering a diverse range of services. We are seeing new joint ventures between the region and Asia in the dry dock

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sector, with the Gulf set to offer the largest ship repair capacity outside of China,” noted Chris Hayman, Chairman of Seatrade, organisers of Seatrade Middle East Maritime.

According to Drewry Maritime Research’s Q1 2014 report ‘Ship Operating Costs Annual Review & Forecast’, ship operators remained under pressure to keep operating costs to a minimum in 2013 due to weak freight earnings, with restrictive repairs and maintenance regimes instigated in order to counter rises in expenditure. This was supported by last year’s weak steel prices, but with new regulations and an element of catch-up in repair due, Drewry expects repair and maintenance expenditure to rise by at least 2.5-3% per annum over the next two years.

"The thorny issue of maintaining fleets for operational readiness whilst maximising commercial capacity is a constant concern for both shipyards and vessel owners, but with increased capacity in the region, the Middle East is perfectly positioned as a key geographical access point for quality repair, maintenance and refitting services,” said Hayman.

According to 2013 data, Drewry Maritime Research expects global container port demand to grow by just over 5% per annum through to 2017, exceeding 800 million TEUs per year; and this expected growth is more than the entire 2012 throughput of North America, Europe and the Middle East combined.

This and other sector drivers, such as the expansion of offshore projects and the implementation of new technical regulations for the shipping industry will also be discussed, with the panel set to share details of a newly-researched, in-depth competition analysis, alongside the issue of how to introduce best practices to maintain a continual updated diversity of improved ship repair services. Gathering together the Middle East's most influential industry leaders, this year's conference programme will also include sessions on the role of new infrastructure developments such as rail in the region’s logistical mix, the growth and expansion of offshore projects, downstream investment in the Middle East and its impact on ship demand as well as the region’s prospects as a hub for bunkering.

Speakers already confirmed include HE Khamis Juma Buamim, Chairman & Group CEO, Drydocks World and Maritime World; Dr Ali Obaid Al-Yabouni, CEO, ADNATCO-NGSCO; Saleh Al Jasser, CEO, BAHRI; Reynaldo Bench, Senior Shipping and Ports Specialist, East Asia and the Pacific, The World Bank; Bill Farren-Price, CEO, Petroleum Policy Intelligence; Dimitris Kostianis, Transport Strategy Advisor, Saudi Ports Authority; Jay New, Commercial Director, Gulftainer; Vivek Seth, CEO, Halul Offshore, Qatar; and Wayne Elliott, Co-Founder and Business Development Director, Marine Recycling Corporation. Held under the patronage of HH Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai and now in its seventh biennial edition, Seatrade Middle East Maritime is the largest event in the regional calendar for the maritime industry with more than 8,000 participants from 67 countries expected to attend, following a record turnout in 2012. The event is an integral part of Dubai Maritime Week which runs concurrently. “SMEM 2012 welcomed 7,065 attendees, 242 exhibiting companies from 33 countries and covered exhibition floor space totalling 4,338 square metres - a 7% increase on 2010,” added Hayman.

Southeast Asia overtakes Somalia as hub of global pirate attacks

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Southeast Asia has become the world’s hotspot for pirate attacks after an international clampdown slashed the number of hijackings off the coast of war-torn Somalia, the UN said on Thursday.Piracy in Southeast Asia surged last year, particularly in the maritime trading hub of the Malacca Straits, between Malaysia and Indonesia. Attacks in the region topped 150 last year after starting an upward trend since 2010, the United Nations Institute for Training and Research (UNITAR) said in a report. “Piracy in the Malacca Strait continues to be a major disruptor for safe routes in the eastern Indian Ocean,” said the agency.

Last month the International Maritime Bureau said that there had been 23 actual or attempted attacks in Southeast Asian waters between January and March, mainly off Indonesia. UNITAR said piracy was likely to become even worse in the region as the centre of gravity of global shipping continues to shift towards Asia. “With changing climatic conditions at high latitudes and medium-to-low-income countries in Asia experiencing the largest growth per capita, additional transport routes it added Meanwhile, 28 boats were attacked last year in the western Indian Ocean but none taken captive in the region, UNITAR said.

That compares to January 2011, when Somali pirates held 736 hostages and 32 boats, some

onshore and others on their vessels.

“There has been a significant reduction in the number of pirate attacks [in the western Indian Ocean] during last year, to the extent one can claim they have almost stopped,” UNITAR said after its five-year study. Attacks in the Horn of Africa spiralled from the early 2000s, with pirates hijacking cargo ships and taking crews prisoner for months and even years. Much of the reduction in attacks is down to the international fleet that has started to patrol the Gulf of Aden and Indian Ocean, and many merchant vessels have started keeping armed guards onboard. Attacks have also become far less severe, with incidents involving rocket-propelled grenades falling from 43 in 2011 to just three last year.

At the same time the Somali pirates’ ransom haul fell from US$150 million in 2011 to US$60 million the following year.

They’re also sticking much closer to shore, with the average raid taking place less than 50km from the coast last year, a quarter of their range three years earlier. In total the World Bank estimates that piracy costs the global economy roughly US$18 billion a year in increased trade costs. That amount “dwarfs the estimated US$53 million average annual ransom paid since 2005,” the bank said in a last year report. Another focus of piracy is Africa’s Gulf of Guinea off West Africa, where there were 50 incidents of piracy last year.

Attacks in the region have become increasingly violent, sowing economic havoc and sparking a military fight-back by governments. Early in June a Greek oil tanker with 24 crew aboard was hijacked off Ghana in the Gulf of Guinea, the IMB said. “The number of attacks show no sign of decreasing. Attacks in the high seas have increased, while attacks in ports are on the decrease,” said UNITAR. Source : Midnimo

China maintains consistent military presence near oil rig

Vietnam fisheries surveillance vessels June 15 continued activities to oppose China and request it to withdraw the oil rig Haiyang Shiyou-981 from Vietnam’s waters. Meanwhile, Chinese ships speeded up to approach the Vietnamese vessels, even at a distance of 10-30m, squared off around the rig and kept Vietnamese vessels about 8-10 nautical miles away from the area where China’s oil rig is illegally deployed, according to the Vietnam Fisheries Surveillance Department. Vietnam’s fishing boats kept their regular fishing activities about 30-40 nautical miles from the rig, demanding their fishing grounds. However, their operations were hindered by Chinese ships, Vietnam News Agency reporter said, adding that at night, two coast guard ships and a cargo liner of China flashed lights and blast out siren to Vietnamese fishing boats, driving away them from their traditional fishing ground. In the daytime, these Chinese ships moved at high speed to disrupt the fishing boats’ activities. On the day at the site, China maintained over 120 ships of all kinds, including 36-40 coast guard vessels, over 30-32 cargo liners and tugboats, six military ships, 45-50

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fishing vessels. A military aircraft was spotted to fly over and around the rig at a height of 500-700m. At the beginning of May 2014, China illegally dispatched the rig Haiyang Shiyou-981 as well as a large fleet of armed vessels, military ships and aircraft to Vietnam’s waters and positioned the rig at 15 degrees 29 minutes 58 seconds north latitude and 111 degrees 12 minutes 06 seconds east longitude. The location is 80 miles deep into Vietnam ’s continental shelf and exclusive economic zone. Despite Vietnam’s protest, China has expanded its scale of operation and moved the Haiyang Shiyou-981 drilling rig to 15 degrees 33 minutes 36 seconds north latitude and 111 degrees 34 minutes 11 seconds east longitude. The new location is 60 nautical miles deep inside Vietnam ’s continental shelf and exclusive economic zone. Source : VietnamNet

The CASTORO XI loaded with the OGN jacket outbound at the River Tyne with the local tugs Svitzer Sun, Svitzer Redbridge, Phoenix Cross and Keverne towing the the barge to the turning circle to swing the barge and allow

the tug Magnus to connect up for the tow out to the site. Photo : Kevin Blair ©

COSCO, Hamburg Süd and Maersk to speak at TOC Americas 2014

TOC Events has announced the participation of three senior liner shipping executives as key speakers at the upcoming 14th TOC Americas event this October 14-16. Robbert van Trooijen, CEO, Latin America and Caribbean for Maersk Line, Poul Hestbaek, SVP Latin America West Coast & Caribbean at Hamburg Süd and Howard Finkel, Executive Vice President Trade Division for COSCO Container Lines Americas will all share views on the changing face of regional container trade and transport in light of mega vessels, alliances and other fundamental shifts in liner shipping, Next Level Info's press release said. The global trend towards massive economies of scale in shipping– also to be discussed in depth at TOC Europe in London, 24-26 June – is already having a major impact on east-west and north-south container trade across the Americas. The expansion of the Panama Canal, now due for completion in December 2015, will create further opportunities for carriers to ‘size up and team up’. Speakers at TOC Americas 2014 will analyse what

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this means for the region’s shipping networks, including both international and Intra-Americas trade, which is currently outpacing mature markets with a projected growth rate of 3.4% for 2014. Among other topics, the conference will take a close look at future transhipment strategies across Latin America. How will the new generation of large vessels impact the balance of direct call versus hub-and-spoke operations?

The CAP SAN AUGUSTIN departing from Hamburg – Photo : Jan Ove Mühlpforte ©

Port capacity to handle larger vessels will of course be a key deciding factor. The new wave of ships is already putting heavy financial and operational pressures on North and Latin America port infrastructure and services, and on connecting landside transport. This will be a second major topic of discussion at the 2014 conference. The Port of Cartagena, hosting TOC Americas for the first time in Colombia, is among those having to commit significant new investment to accommodate ships up to 14,000TEU - a story being repeated across the region. This year’s conference will include a dedicated focus on terminal investment, automation and productivity, with experts debating issues such as how container ports can stay competitive in the age of mega ships and options for upgrading existing terminals to handle future ship demands.

Speakers already confirmed from the port and terminal community include Giovanni Benedetti, Commercial Director at Port of Cartagena, John Bressi, Project Manager, Crane Automation, for SSA Marine International, Guillaume Lucci, VP & Global Infrastructure Director for ICTSI, and Patricia López Manieu, Head of Business Development at Ultramar.

“Port and terminal owners are balancing the demands of their customers with the financial investment required to update their terminals,” said Paul Holloway, Director TOC Events. “Terminals are facing a huge impact from larger vessels cascading onto secondary deep sea trades and terminal efficiency in some cases is compromised. Operators are looking at their KPIs and weighing up how they increase the performance of their terminals to keep up with the additional demands. Despite the staggering amount of new and surprisingly similar events emerging in this sector, TOC are as ever committed to delivering the highest quality content available to the market in Colombia this October."

TOC Container Supply Chain Americas runs from 14-16 October at the Cartagena de Indias Convention Center, Columbia. The event includes the TOC Container Supply Chain conference, Cold Chain conference track on perishable and refrigerated trade and TECH TOC container terminal operations forum. The TOC exhibition running alongside will showcase the latest in port services, equipment and technology solutions. Industry networking reception and a special tour to the Port of Cartagena – a regional leader in terminal productivity – complete the picture. The event attracts around 400 senior port, shipping and logistics delegates. London, UK headquartered Next Level Information Ltd. is a communications agency focused on the global freight transport and logistics industries. NLI specializes in Marketing communications strategy and execution, Public and media relations, Conference production and event management.Source : PortNews

Cruise shipping industry crisis looming, warns Robinson

OPPOSITION spokesperson on tourism and cruise shipping, Shahine Robinson, says that cruise ships are deserting Jamaica because of the poor condition of the port facilities. "Why are they leaving? Carnival and every other cruise liner want passengers to have the best on-land experience, and currently it is not happening (in Jamaica)," Robinson told the House of Representatives as she contributed to the sectoral debate last Wednesday. "I am saying to you, address it, and address it with alacrity," she told Minister of Tourism and Entertainment Dr Wykeham McNeill, who was

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present for the contribution. According to Robinson, Jamaica's cruise ship arrivals last year were down by 4.2 per cent over 2012. Broken down, Ocho Rios was down by 3.2 per cent and Montego Bay down by a whopping 29.8 per cent. Falmouth, on the other hand, registered an increase of 10 per cent. "As a matter of fact, it is noteworthy that the Falmouth Cruise Port welcomed nearly half of the 1.2 million cruise visitors last year," she pointed out. But, she said that while the country should be pleased with the growth in Falmouth, the port could do much better than it is currently doing. "It has come to my attention that Carnival Breeze, one of the largest ships built for Carnival Cruises, as of May 2015, will no longer call on Ocho Rios. We are looking at a fall off of approximately 100,000 visitors per annum, and this is just for Ocho Rios alone," she said. "We cannot afford for this to happen. Our tourism product cannot afford this kind of dislocation. Businesses will close and people will lose their jobs," she warned. Robinson called on the minister to: boost berthing capacity and cruise ship arrivals; effectively balance the cruise ship traffic spread across resort towns -- including Port Antonio which has massive potential for exclusive boutique tourism -- and make the resort towns more attractive and tourist-friendly. "I again remind the minister of the importance of moving now, as we face a crisis on our hands if current trends continue," she concluded. Source : jamaicaobserver

Technip’s DEEP CONSTRUCTOR operating in the Albacora Field offshore Brazil – Photo : Capt. Jan Plug ©

Ferries could be left stranded by strict new EU pollution rules

Ferry prices will go up, routes will close and thousands of jobs could be lost due to strict new EU emission targets, politicians and industry groups warn. Now campaigners are demanding the Government compensates the maritime industry for having to adapt its ships to produce cleaner emissions or buy pricier low-sulphur fuels. On Wednesday, the issue will be debated in Parliament’s Westminster Hall and MPs will call for the Government to change the rules to give the industry more time to adapt. Ferries must cut the sulphur content of fuel from 3.5 per cent to 0.1 per cent in January next year or fit ‘scrubbers’. Operators say they need more time or more support to comply.

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Karl Turner, Labour MP for Hull East, who called for the debate, told The Mail on Sunday there could be a huge impact on jobs if the industry was not supported by the Government. ‘I’m really worried about the risk to thousands of jobs,’ he said. ‘There either needs to be more time for the industry to adapt or substantial compensation from the Government.

The STENA TRANSIT outbound from Hoek van Holland

Photo : Kor Heidinga - www.scheepvaart.macalro.nl ©

‘Higher costs could see routes closed, jobs lost, a knock-on effect on tourism and more freight travelling by road.’ The campaign is being backed by transport workers’ union RMT, as well as the UK Chamber of Shipping and the British Chambers of Commerce. Carsten Jensen, senior vice-president of Danish shipping line DFDS, which runs routes in the Channel and North Sea, said his company had already invested £100million in new technology to adapt ships in its fleet, but added that some of the costs should be met by the EU. ‘This will have a major impact on the industry. Traditionally you would expect companies to be helped with the cost of meeting these targets,’ he said. ‘The investment in technology and the higher price of low-sulphur fuel means prices will rise and we will have to look at what routes we operate.’ The firm has already axed its Harwich-Esbjerg route, blaming the cost of cleaner fuel, and warned that prices to businesses and consumers would increase by 15 per cent. Ferries could be left stranded by strict new EU pollution rules Source : this is Money

HMC in Top 100 SME innovative companies

On June 12th, the Top 100 most innovative companies in the Netherlands were revealed. We are proud on our 35th place in the “MKB (SME) Innovation Top 100” award in The Netherlands. HMC is honored for the development of our product EcoTrim. EcoTrim is an intelligent software tool that calculates the optimal trim for a vessel aimed at reducing fuel consumption. The tool consists of a trim optimization module for all types of vessels. Fuel costs have a large impact on the economics of a ship and shipping companies. Savings of 2% - 5% are possible, which will result in significant cost savings. HMC’s EcoTrim has the attention of International shipping companies, who are

interested in obtaining the program to realize cost savings without any technical changes to the vessel. At the moment we are working on the integration of EcoTrim in our loading instrument CPC. Environmental aspects and fuel costs have a large impact on the economics of a ship and shipping company and we think CPC and EcoTrim could be the ideal combination for reducing costs. The presentation of the SME Innovation Top 100 took place at the headquarters of Mercedes-Benz in the Netherlands. The list with the most innovative companies was published on Friday, June 13th 2014 in the NRC Handelsblad and was sponsored by Mercedes, NRC Media and the Dutch Chamber of Commerce. The SME Innovation Top 100 is considered the largest and most important award for SMEs in The Netherlands. We are very proud on our ranking and HMC’s recognition in the prestigious Innovation top 100 and we look forward to the next MKB innovation top 100 edition in 2015. If you have any questions about EcoTrim or any of our other products or services, please do not hesitate to contact us at [email protected]

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History repeats, after the CAUSEWAY posed together with the MERWEDAM in Newsclippings 221 (2013) this time the STRANDWAY is posing together with the little Waterbus. Photo : Bastiaan van Zuijlekom ©

Seabourn Joins UNESCO In New Alliance For World Heritage Sites

Award-Winning Cruise Line to Host Experts, Create Excursions, Support Efforts Ultra-luxury, small-ship cruise operator Seabourn has signed an agreement with the United Nations Educational, Scientific and Cultural Organization (UNESCO) in a unique alliance to help protect World Heritage. The partnership is being created to foster wider support and understanding in the travel industry and among travelers for UNESCO's mission of identifying, safeguarding and promoting unique cultural and natural features around the world deemed to possess universal value for all humankind. Seabourn has committed to raising $1 million for UNESCO as part of this multi-year agreement. For Seabourn's guests, this alliance means that their travels on Seabourn's intimate, all-suite ships will be enhanced by deeper insight and behind-the-scenes information about current and future World Heritage sites and projects. Speakers with special knowledge about World Heritage will sail on Seabourn's ships as a part of the line's Seabourn Conversations enrichment and entertainment program. In addition, fares for Seabourn optional excursions that include UNESCO World Heritage Sites will include a small donation to UNESCO's World Heritage Fund. The company will also create special World Heritage Discovery Tours at a number of ports worldwide, with exclusive enhanced content on World Heritage.

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"Seabourn is proud to be partnering with UNESCO to promote and support sustainable tourism," said Seabourn President Richard D. Meadows. "Through this partnership we are committed to providing our guests with a deeper appreciation and understanding of the many World Heritage sites we visit around the world and the important work UNESCO is doing."

The SEABOURN QUEST – Photo : Simon Wolf ©

Irina Bokova, Director-General of UNESCO, commented, "With this partnership UNESCO and Seabourn truly demonstrate our shared commitment in safeguarding World Heritage by promoting sustainable tourism at these iconic destinations. The partnership enables us to reach the traveling public with our conservation message which is universal in scope and so important to the dialogue and mutual understanding that are needed to nurture a culture of peace."

Seabourn shares with its guests a genuine passion for exploring the world's most exceptional destinations. Year after year, the company provides its guests opportunities to experience one-of-a-kind treasures such as the temple complex of Borobudur on Java, the excavated ruins of Pompeii and Herculaneum in Italy, and the Taj Mahal in Agra, India. As completely different as these places are, they share a common attribute – they are all designated UNESCO World Heritage Sites. Since its founding, Seabourn has facilitated visits to hundreds of UNESCO World Heritage Sites and currently includes over 150 designated sites in its itineraries. Now it will also help to support UNESCO's efforts to expand, promote and preserve these precious global resources for future generations of travelers. For additional information or reservations, please visit www.seabourn.com

The MAERSK VALIANT moored in Willemstad (Curacao) Photo : John Smit ©

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NAVY NEWS

16-06-2014 : The French L 9013 MISTRAL arriving in Halifax – Photo : René Serrao Portuguese Cove, NS ©

China Fears Spur Philippine Naval Upgrade

As fears grow that China is on an aggressive South China Sea territorial grab, a sleepy Philippine village is being transformed into a major naval base that may host US warships. Ulugan Bay, a small, picturesque cove encircled by thick mangroves, has suddenly become a vital part of the Philippine military's efforts to shore up its defence of contested South China Sea islands and waters.

"This is the frontline of our territorial defence operations in the Kalayaan island group," President Benigno Aquino declared last month as he inspected the progress of a recently announced upgrade of a tiny naval station on the bay.

Ulugan is on the west coast of the large western Philippine island of Palawan, only 160 kilometres (100 miles) from a small group of islands and islets within the Spratly archipelago known locally as the Kalayaan group. The Spratlys are among the most prized assets in the decades-long but increasingly hostile struggle for control of parts of the South China Sea. The sea has such importance because roughly half the world's shipping trade passes through it, while it is believed to contain enormous deposits of natural gas and has rich fishing grounds.

China and Taiwan say they have sovereign rights to nearly all of the sea, conflicting with the claims of the Philippines, Vietnam, Malaysia and Brunei to areas closer to their coasts. The Philippines and Vietnam have expressed growing alarm in recent years at China's increasingly assertive tactics to stake its claims. Most recently, the Philippines has accused China of reclaiming land at tiny reefs in the Spratlys to in effect create artificial islands that may be used to build air strips and other military installations.

- Philippines seeks US security blanket -

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In direct response to the fears over China, the Philippines has sought help from longtime ally the United States to bolster its poorly equipped armed forces with new hardware and training. The Philippines and the United States also signed a new security pact when US President Barack Obama visited Manila in April that will soon allow a much greater American military presence on Filipino soil, including on expanded bases.

At Ulugan Bay, there is currently just a tiny naval station that serves as the command centre for the Filipino military unit responsible for safeguarding its South China Sea waters. A small pier stands at the bay's most prized asset, a deep inlet called Oyster Bay with rich fishing grounds that help sustain the 1,700 residents of the nearby village of Macarascas. As part of the upgrade, a much bigger pier, harbour and support facilities are being built to serve as a base for the navy's largest vessels, including two ex-US frigates acquired since 2011.

Aquino said the upgrade would also allow the navy to monitor ships by radar and conduct maritime surveillance through a satellite-based system. In effect, Aquino said it would give the Philippines a greater ability to survey and defend what it says are its waters of the South China Sea. However just 500 million pesos ($11.4 million) is being spent on the Ulugan upgrade and analysts say the Philippines will not come close to having the capabilities to deter China, which spent $119.5 billion on its military last year.

"I expect the strategy will allow the Philippine Navy to conduct limited defensive, small-boat missions," Roilo Golez, a former legislator and national security adviser, told AFP. A potential game changer, however, could be the addition of American troops and hardware, along with extra US money to further expand the facility. Under the "enhanced defence cooperation agreement" signed between the treaty allies in April, US forces will have access to five Philippine military bases, allowing them to build facilities and rotate through thousands of troops.

It will also allow the United States to deploy more aircraft, ships and equipment to these bases. The Philippines has so far publicly offered the United States renewed access to Subic Bay, a former US naval base about 100 kilometres north of Manila that also projects onto the South China Sea. It has not yet said Ulugan Bay will be used, and an announcement on which five bases have been chosen is not expected before October. But there are signs that Ulugan Bay -- which is more than 500 kilometres southwest of Manila and far closer to the Spratlys hotspot than Subic -- will be chosen.

Macarascas residents told AFP the US military had already built a gymnasium, a multi-purpose building and a water storage facility, suggesting this was part of their bedding-in with the community. Philippine military chief General Emmanuel Bautista also said last month the US military should be allowed to use Oyster Bay and help upgrade the facility. "Perhaps with the (US defence agreement), the improvement of Oyster Bay will be hastened," Bautista said in an interview on ABS-CBN television. Source : NDTV

Karwar naval base's tale of misery for 30,000 people

NEW DELHI: The Rs 15,000 crore aircraft carrier INS Vikramaditya may have showcased Navy's fire power for Prime Minister Narendra Modi at 'Seabird' Naval Base at Karwar, but the land on which India's biggest naval base was built continues to be a source of miseries for people whose land was acquired for it. In October 1986, then PM Rajiv Gandhi had inaugurated the Seabird project and had assured the people that the project would be implemented in such a manner that not even one person would have to shed tears for loss of his land, acquired for the project.

After nearly 30 years, those who lost their land to the 'Seabird' project are only shedding tears. After the Reference Court determined the compensation at Rs 4.5 lakh per acre more than two decades back, the erstwhile land owners have not yet seen the money in their hand.

They have been dragged to the High Court and from there to the Supreme Court by the state government and the defence estate officer as the rate of compensation was challenged. Most of them came together and hired common lawyer.

The courts ruled in their favour and dismissed the appeals. Yet, only a handful among the 30,000 affected have got full compensation for their acquired land. The compensation for the few came only after they moved contempt petitions before the apex court. Originally there were not 30,000 claimants. But on death of land owners, their numerous legal heirs have been substituted as the claimants. Approximately 1,000 hectares, or 2,500 acres, of land was acquired for the 'Seabird' naval base. Their counsel Devadatt Kamat told TOI that most of them, who are small farmers and fishermen, do not have the money to file individual contempt petitions against the Defence Estate Officer to get the compensation. If they had been rendered landless 30 years ago, penury now stares at them, he said.

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The apex court had on September 13, 2012 dismissed the appeals of the authorities and directed the Defence Estate Officer to pay the enhanced amount of compensation along with other statutory benefits to the land owners within four months in the form of demand drafts.

The DEO requested for more time to comply with the apex court's order and it was granted time till June 10, 2013. But, the payments were not made warranting filing of contempt petition by two persons. These two have been paid and the court was informed on March 31 this year that drafts for Rs 1.07 crore had been sent to them. The court listed it for hearing in July. Kamat says: "The amount payable today as compensation runs to almost Rs 600 crores." He says the affected persons are pinning hope on Modi's maiden speech in Parliament that development could not be the cause for sorrow for a section of people and hope that their dues would be released soon. Source : sahilonline

N. Korean leader inspects navy submarine unit

North Korean leader Kim Jong-un inspected a navy submarine unit, and stressed the need to raise combat preparations and underwater operation capability, the country's official news wire reported Monday. During Kim's visit

to the Korean People's Army's Naval Unit 167, Kim inspected "various indoor trainings including the drill for launching torpedoes at the underwater comprehensive training room," the Korean Central News Agency (KCNA) said in an English-language dispatch.

Kim also toured submarine No. 748 and guided a navy drill aboard the vessel, while also teaching navigation methods to its captain, according to the KCNA. The naval unit appears to be part of the North Korean military's Large Combined Unit 597, which belongs to the East Sea fleet command located in the North's South Hamgyong Province. "The Party Central Committee is attaching great importance to the combined units of submarines," the KCNA quoted Kim as saying. Kim also set forth "the tasks to be fulfilled to round off the combat preparations of the unit and remarkably bolster up the underwater operation capability of submarines and modernize and fortify

bases," according to the KCNA. "The commanding officers and seamen should clearly see through the motives of the hateful enemies watching for a chance to invade our land and put spurs to combat preparations, thinking about battles only," the KCNA also quoted Kim as saying. The communist country often uses reports of its leader's visits to military units as displays of its military might and war preparations. Among those who accompanied Kim on the visit were Hwang Pyong-so, the military's top political officer, and Pyon In-son, director of the military's operations bureau, according to the report. Two days earlier, the KCNA reported a similar inspection by Kim to another unit of the East Sea fleet command, in which he highlighted combat readiness. Source : Yonhap

SHIPYARD NEWS

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First steel BigRoll Barentsz

BigRoll Shipping announces that the first steel of BigRoll Barentsz was cut at

COSCO Dalian Shipyard Co., LTD 9 June 2014. BIGROLL BARENTSZ is the first of two MC Class Module Carriers for the transportation of ultra large and heavy modular cargoes. She will be delivered mid Augustus 2015. Sister vessel BIGROLL BERING will follow in October 2015. BigRoll Shipping holds an option for two additional vessels.

BigLift Shipping and RollDock Shipping have decided to combine their individual strengths into a new company to design, build and operate a fleet of state-of-the-art DP2 Module Carriers.

Both companies have a strong reputation in the heavy lift market for finding innovative solutions for complex transportation jobs. Their fleets and activities are complementary with lo-lo, ro-ro and flo-flo vessels, so a complete shipping portfolio can be offered to clients. In BIGROLL the commercial, technical and operational experience, knowledge and capacities of both companies come together, creating a high quality Module carrier ship-owner and operator from the start.

ROUTE, PORTS & SERVICES

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The BBC GERMANY arriving at the Tyne from Stavanger – Photo : Kevin Blair ©

Cargotec sells its engineering centre in India and enters into long-term

partnership with Citec Cargotec has entered into a long-term partnership with Citec in India and transferred its local engineering centre in Pune, Cargotec Engineering India (CEI), to Citec. Citec is an international multi-discipline engineering and information management services provider with headquarters in Vaasa, Finland, and sales of about EUR 70 million in 2013. The transaction includes the transfer of Cargotec's current engineering business and its 110 employees from Cargotec to Citec. The parties have agreed not to disclose the transaction value, the company said in its press release. Cargotec's engineering centre in Pune has been involved in engineering projects for the global cargo handling industry. The unit in Pune as well as Citec's other global units will provide Cargotec and its businesses Hiab, Kalmar and MacGregor engineering and project management services, as well as technical documentation. The partnership with Citec allows Cargotec to focus on its core businesses in India while utilising competitive engineering services in a more flexible and effective way. "Cargotec has sought after an engineering partner in India, and Citec's solid experience and track record in working globally from India made the decision straightforward. This partnership allows Cargotec better flexibility and efficiency, while simultaneously offering great career opportunities for our 110 engineers in Pune. Our strategic intent is to continue to grow and strengthen the market position of the Hiab, Kalmar and MacGregor businesses in India," says Olli Isotalo, President, Kalmar at Cargotec. "This is a significant step for our operations in India, and it also provides great business opportunities elsewhere. We are ready to serve Cargotec proactively according to our strategic intent, with smart engineering solutions and a wide competence," says Martin Strand, CEO, Citec. Citec has been present in India for ten years, now with more than 530 employees in total with offices in Mumbai, Chennai, Bangalore and Pune. Cargotec employs a total of 315 people in various locations in India after the divestment.

Poole lifeboat launched after man taken ill POOLE Inshore lifeboat launched at 11.30am today to a medical evacuation off Parkstone Yacht club. Portland coastguard tasked the Poole inshore lifeboat and rescue helicopter to attend to a 7.5 metre yacht with two people on-board; one of them had been taken ill. The volunteer crew found the vessel heading for Poole Quay, the harbour launch was standing by and a crewman from the launch was on-board the yacht, two lifeboat crew were transferred across and first aid was administered. The yacht continued under its own steam, while the lifeboat crew radioed ashore

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to request an ambulance to standby. As they came alongside Poole Quay another crewman was transferred on to the yacht to prepare the mooring lines to come alongside. The yacht was moored alongside Poole Quay and the casualty was transferred across at Custom House steps to the care of the paramedics into an ambulance, which took him to Poole Hospital Source : Bournemouth echo

MSC MARGARITA made her first call at the port of Antwerp. Built in 2002 for Claus-Peter Offen as SANTA VIRGINIA she also traded under the names of CAP VERDE and OOCL THAILAND. Photo : Adri de Schipper ©

Guinea Assembly Adopts Investment Framework for $20 Billion Iron Ore

Project Guinea's national assembly ratified an investment framework on Saturday to enable the government to raise nearly $20 billion with Rio Tinto and Chinalco for Simandou South, Africa's largest iron ore and infrastructure project. The framework first signed on May 26 needed the assembly's approval to strengthen the fundraising process, which also involves the International Finance Corporation. Witnesses said President Alpha Conde's party all voted for the bill as well as some independent members but the opposition did not attend the session. "This huge project is truly historic because it is the largest integrated mine project ever in our country," said economist Ousmane Kaba, president of the mining and industry commission. To export the high-grade ore from the remote Simandou South concession to Guinea's Atlantic coast requires the construction of a 650-km railway through the jungle, a deep-water port and support infrastructure costing at least $18.4 billion. Production is due to start in 2018. The project has been delayed by political volatility in Guinea and long commercial negotiations. Source Reuters (Reporting by Saliou Samb; Editing by Matthew Mpoke Bigg)

OLEG STRASHNOV replacing Flare Stack on TYE-D Photo : Martijn Telman ©

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Flag States Target Greek Tonnage The world's vessel registries are vying for a slice of the 370 vessels expected to be delivered to Greek shipping companies by 2016, the Posidonia organisers claimed. A total of 28 vessel registries participated at the exhibition.

One -the Bahamas Maritime Authority (BMA) - has opened its first ever Greek office. "Through our new offices in Piraeus, we hope to add more Greek tonnage in the portfolio of the Bahamas flag. The new office will also benefit the BMA's efforts to maintain international shipping standards", said Capt Dwain Hutchinson, BMA deputy director.

"The Bahamas Government has long cherished the goal of a Greek office and the closeness that exists between the two countries has now been cemented with the opening of this new office. It is quite a momentous occasion and fittingly, it coincides with one of the world's greatest maritime events - Posidonia," he added. Another flag state, the Virgin Islands, said that its presence at Posidonia was down to its ambition of diversifying its yachts, super yachts and mega yachts business by extending its profile to cargo ships. It plans to do so by gradually building its network before it launches its own offices in Greece in time for Posidonia 2016. John Samuel, Virgin Islands Shipping Registry director, said: "At Posidonia this year, we tried to make contacts and deals and enter the cargo ship industry. This time is a learning process and is better than the last time. We are building relations and getting ready to open our offices in Greece by 2016. "We had many contacts with shipping companies and shipowners who expressed interest in our flag admitting that ours is a quality flag. We offer a favourable regulatory framework and depending on the shipowners, the advantages can be variable. We have not entered the commercial market yet, but we would like to do so and through Posidonia we are making initial contacts," he added. The Liberian Registry is - with the exception of the Hellenic Registry - the world's top flag administration in terms of Greek -owned vessels. "At this point in time, we service 678 oceangoing vessels belonging to Greek interests and in March alone, 17% of the Greek tonnage that entered Greek fleet portfolios selected the Liberian flag, further boosting our market share," said senior vice president Michalis Pandazopoulos. As for the Marshall Islands Registry, according to Theo Xenakoudis, Greek-based business operations officer, the registry was the first flag choice for Greek shipowners in 2013. "Between 40% to 45% of the tonnage and the vessels purchased by Greek shipowners within 2013 came to Marshall Islands flag. This is the result of the very strong office that we have in Piraeus, manned by 15 professionals. Quality and access to services drive Greeks shipowners to our flag," he said. Last year, the Marshall Islands added 123 ships from Greek shipowners of more than 6 mill gt. Greek shipowners account for more than 25% of the flag administrator's total business. Recently, the Marshall Islands reached the 100 mill gt milestone bringing it in the third position globally. Source: TO.

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The MARIANNE SCHULTE enroute Rotterdam – Photo : Kees van der Kraan ©

Owners Found Unreasonably Withheld Approval of Charterers' Proposed

Discharge Vessels

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In Falkonera Shipping Co v Arcadia Energy Pte Ltd (The "Falkonera"), the Court considered issues arising from the Claimant Owners' withholding of approval to discharge from the chartered VLCC to two other VLCCs by STS transfer.

Charter Terms

Owners chartered the "FALKONERA", a VLCC, to the Defendant Charterers on an amended BPVOY4 form. Clause 8.1 of Part 2 provided:

"Charterers shall have the option of transferring the whole or part of the cargo . to or from any other vessel including, but not limited to, an ocean-going vessel, barge and/or lighter . All transfers of cargo to or from Transfer Vessels shall be carried out in accordance with the recommendations set out in the latest edition of the ICS/OCIMF Ship to Ship Transfer Guide (Petroleum)." The charter also contained an additional clause dealing with STS lightering, which provided:

"if charterers require a ship-to-ship transfer operation or lightening by lightering barges to be performed then all tankers and/or lightering barges to be used in the transhipment/lightening shall be subject to prior approval of owners . not to be unreasonably withheld."

Facts

Charterers chose to discharge by way of STS transfer, and nominated two VLCCs to receive the cargo. Owners withheld their approval of those two vessels, and the cargo was subsequently discharged into other, smaller, vessels. Owners' reasoning was:

1. the charter terms precluded STS transfers between VLCCs, and the ICS/OCIMF Guide referred to in clause 8.1 did not contain any references to or recommendations for transfers between VLCCs; and

2. they were entitled to withhold approval in light of a previous difficult experience with STS transfers between VLCCs, and because the fact that the vessels were the same size created mooring difficulties.

Charterers claimed that Owners' withholding of approval led to delays and increased costs. They argued that the withholding of approval was a breach of charter, and so those delays and costs should be for Owners' account.

Court's Findings

The Court found in favour of Charterers, holding that Owners had unreasonably withheld their approval. On a proper construction of the charter, clause 8 and the lightering clause overlapped. Taking those clauses together, Owners were not entitled to approve or refuse the STS transfer. Rather, the right of approval was limited to deciding whether the nominated vessel was suitable for STS operations.

The fact that the ICS/OCIMF Guide did not refer to VLCC STS transfers did not mean that they were precluded, nor that they could not be conducted in accordance with the Guide. Subject to issues of timing and proper planning, the operation could have been performed with each of the nominated vessels in accordance with the Guide. As such, none of the reasons given by Owners provided a reasonable basis for withholding approval.

Comment

Where a charter term requires approval by one or other of the parties, there is often a requirement that such approval is "not to be unreasonably withheld". What amounts to "reasonable" or otherwise will depend on a close analysis of the facts in conjunction with all relevant charterparty terms. Withholding approval simply because the other party's proposal will require additional time and planning is unlikely to be considered reasonable. Unreasonably withholding approval can lead to a finding of liability for damages for breach of charter. Parties should, therefore, consider very carefully before withholding their approval. Owners' appeal of this decision has recently been dismissed by the Court of Appeal. Charterers had the right under the charter to transfer cargo to any vessel, including a VLCC. VLCC-VLCC transfers were permitted under the charter terms, and Owners were taken to have accepted the risks inevitably attendant on any VLCC-VLCC transfer. Although transfer to a VLCC could in a sense be regarded as "non-standard", as submitted by Owners, this was not in itself a reasonable ground for Owners' refusal.

In that context, the Court considered the precise nature of Owners' right of approval under the charter terms. This was in respect of the vessel to be used, not in respect of the STS transfer operation as a whole. Arguments based on the logistics of the transfer operation, such as uncertainty as to whether a suitable plan for the STS operation could be devised, or whether there was time to plan an STS operation, were not justifiable bases for withholding approval. The charter terms gave Owners no right of approval over such matters. Charterers did not have to seek Owners' approval of the plans for the STS operation and there was no allowance in the terms for Owners to vet the plans for the STS operation before deciding whether to approve the transferee vessel. The question was whether there was some characteristic of the receiving vessel which meant that the proposed STS transfer would give rise to a degree of risk which Owners who had agreed to allow VLCC-VLCC transfers would, or could, not reasonably be prepared to accept.

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Comment

The Court of Appeal's judgment highlights the importance of carefully considering any charter terms which give a party a right to provide or withhold approval. That party must consider precisely what they are entitled to approve. Here, Owners' right of approval was in respect of the vessel to be used for the STS transfer, not the transfer itself. This case also provides guidance as to the approach the courts will take when considering whether a party has unreasonably withheld approval. They will consider the charter terms in conjunction with the specific facts, and will consider the risks which the parties could be said to have accepted at the date of the charter. Parties must consider whether there are any specific risks which they wish to exclude when the charter is negotiated. If they do not, and then later seek to object or withhold approval to a specific operation, they run the risk of being found in breach of charter. Source: ReedSmith.

KANG SHENG KOU outbound from Rotterdam – Photo : Henk van der Heijden ©

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Officer Shortage to Worsen The current shortage of shipboard officers is forecast to worsen and risks impacting carrier profitability, according to Drewry's recently published Manning 2014 Annual Report. Owners and managers need seafarers - and they want experience, expertise and quality. However, they do not have the resources to fund substantial rises in remuneration. In recent years owners and managers have been heavily cost focused, as weak freight rate earnings have yielded poor returns. Manning has become the natural target for cost cutting, being the single largest element in ship operating costs, with officer recruitment being directed towards the lowest cost source. Drewry estimated that the current officer supply is 610,000, representing a shortfall of 19,000 personnel. This shortfall is forecast to rise to 21,700 by 2018, given that there will be a requirement for an additional 38,500 officers by this time. "While ratings (crew) remuneration packages tend to follow International Transport Workers Federation (ITF) standard terms, officer earnings are more market driven," explained Drewry's managing director, Nigel Gardiner. "Manning costs look set to come under renewed upward pressure, putting a further squeeze on profitability unless owners are able to push freight rates higher."

However, there is less supply pressure with ratings and this will have a moderating influence on wage negotiations between the ITF and International Bargaining Forum (IBF), which represents employers. The other factor in owners' favour is that most seafarers are paid in US dollars. When converted to domestic currency, seafarer earnings tend to compare well with other occupations. "But the shortage of officers remains, especially among senior engineering ranks

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and for specialist ships such as LNG carriers," warned Gardiner. "There is also a general drift towards shorter working tours and increased benefits, which is putting further pressure on supply." The report's contents include - . Trends in seafarer supply. . Officer supply and demand. . Wage rates for Masters, 2nd Officers and 2nd Engineers 2001-2014 for 11 different nationalities - high, low and average rates. . Main terms and condition of service by nationality. . Changes in on board numbers. . Manning budgets for a range of different ship types and sizes.

Ten country profiles of the main suppliers of seafarers. Source: Drewry Maritime Research.

The BBC LEER arriving at the Tyne from Kristiansund – Photo : Kevin Blair ©

Click HERE for the LIVE STREAM WEBCAM in Hoek van Holland

Berghaven

International Chamber of Shipping meets in Cyprus

The International Chamber of Shipping (ICS) – the principal global trade association for shipowners representing over 80% of the world merchant fleet – met in Limassol, Cyprus last week for its Annual General Meeting (AGM). The meeting was hosted by the Cyprus Shipping Chamber in its 25th anniversary year, and commenced with a gala dinner

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hosted by the President of the Republic of Cyprus, His Excellency Nicos Anastasiades, at the Presidential Palace in Nicosia. Representatives of ICS member national shipowners’ associations, from the Americas, Asia and Europe, reviewed the many significant regulatory developments affecting shipping with respect to safety, environmental protection and employment affairs, as well as various legal, insurance and trade policy developments. The discussions were dominated by the pressing challenges associated with the need for ships trading to Emission Control Areas, in North America and Europe, to switch to low sulphur fuel, and the serious implementation problems that will be created by the eventual entry into force of the IMO Ballast Water Management (BWM) Convention. Sulphur ECAs – Governments Need to Resolve Critical Implementation Questions ICS underlines the shipping industry’s commitment to full compliance with the IMO sulphur ECA requirements from January 2015, through the use of low sulphur distillate fuel or alternative compliance mechanisms such as Exhaust Gas Cleaning Systems (scrubbers). However, information collected by ICS members suggests that many governments are not ready to implement the requirements in a uniform manner, in order to ensure the prevention of market distortion. In particular, ICS members identified an urgent need for the Paris MOU on Port State Control – in co-operation with the European Commission and the United States – to finalise harmonised procedures before implementation begins. It was also agreed that port states need to resolve detailed implementation questions on the use of alternative compliance mechanisms for those companies that have chosen to invest in them, as permitted by the IMO MARPOL Convention. “The shipping industry is investing billions of dollars in order to ensure compliance. The huge costs involved could have a profound impact on the future structure of the entire shipping industry and the movement of international trade,” said ICS Chairman Masamichi Morooka. “It is therefore incumbent on governments to get the details of implementation right as we enter this brave new world in which fuel costs for many ships will increase overnight by 50% or more. We only have six months to go and we think it vital that governments clarify all of the details of ECA implementation as soon as possible.” Ballast Water Management Convention – Time is Running Out to Make New Regime Fit for Purpose ICS members considered the deep flaws in the IMO Ballast Water Management Convention (adopted in 2004 when the technology required to comply had not been widely tested or proven commercially) and possible solutions to these issues. It is apparent that there is now a greater understanding of these problems amongst IMO Member States which for many seems to be the primary issue impeding ratification. These obstacles include the lack of robustness of the current type-approval process for the very expensive new treatment systems that will be required, doubts about the procedures to be followed during Port State Control, and the need to provide confidence to shipowners that have already installed the new equipment (or are about to do so) that they will be regarded by the authorities as compliant. ICS supports the objectives of the Convention and recognises that its eventual entry into force is inevitable. “However,” explained Mr Morooka “unless these problems are resolved immediately at IMO there is a considerable risk that the regime will not be fit for purpose.” ICS is particularly concerned that port state sanctions could impact unfairly on shipowners who, in good faith, have fitted type-approved equipment, only to be told subsequently that it falls short of the required standard. At the next meeting of the IMO Marine Environment Protection Committee (MEPC 67) in October 2014, governments need to take what may be the final opportunity to act by agreeing some relatively simple changes to how the Convention will be implemented. “Time is rapidly running out.” said Mr Morooka. The ICS AGM agreed in principle to the text of a detailed industry submission that will be made to MEPC 67. This submission will suggest solutions to these complex problems in the form of a draft MEPC Resolution that could be adopted by IMO Member States before the Convention enters into force. This final industry submission will be made in the next few weeks. Future Regulation of International Shipping The ICS AGM considered the lessons to be learned with respect to the development of regulations, such as the Ballast Water Convention, that have subsequently turned out to have major problems, as well other technical regulations that have often been taken forward without any consideration of the economic impacts, or of the unintended consequences for regulations that already exist. For the past 50 years IMO has served the industry very well by providing shipowners with a comprehensive global regulatory framework. But there is growing concern that something is wrong with the quality and quantity of recent regulatory changes. All too often ICS sees regulatory proposals by governments being taken forward without any supporting evidence of compelling need. Mr Morooka explained “Environmental protection is of the utmost importance, and ICS does not question the objectives or good intentions that are usually behind most government proposals. But in the future we believe there needs to be far more emphasis on proper regulatory impact assessments which also take full account of the economic sustainability of shipping. More attention also needs to be given by IMO Member States to the practicality and timescale allowed for implementation of new regulations. This should happen before the rules are adopted, not several years later when it may be too late.” The ICS members recognised that making improvements to the process of regulatory development at IMO is a complicated and difficult

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topic, and that there are no simple solutions. But ICS members agreed that in the year ahead they would seek to develop some firm proposals for discussion with regulators. Elections Mr Masamichi Morooka (Japan) was elected for a second two-year term of office as ICS Chairman. He will be supported by Mr John C Lyras (Greece), Mrs Karin Orsel (Netherlands), Mr Gerardo Borromeo (Philippines) and Mr Esben Poulsson (Singapore) who continue to serve as ICS Vice Chairmen. Source: ICS

The HARMS AHT MAGNUS hooked up to the Castoro XI barge departing from the Tyne – Photo : Kevin Blair ©

Courts order shipping companies to pay sailors for unpaid work

the laid up vehicle carriers B LADYBUG, A LADYBUG and D LADYBUG anchored offshore Malta on Friday 9th May,

2014. Photo : Capt. Lawrence Dalli - www.maltashipphotos.com ©

The Courts ordered two ships by shipping companies registered in Panama to pay substantial sums to local companies, a bank and sailors. One ship was ordered to pay €617,279 to a bank and four local oil suppliers, whilst another had to pay €43,152 to 22 sailors. The first case was brought before the Courts by Dr Ann Fenech, representing Macquire Bank Limited, Salvo Grima & Sons Limited, San Lucian Oil Company Limited, Island Bunker Oils Limited and Cassar Petroleum Services Limited against the Ship called “A LADYBUG”, owned by the company; ‘A Ladybug Corporation’.

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The bank asked to be paid €70,362 for unpaid work done by 12 seamen aboard the vessel, which the bank had forked out. Macquire Bank Ltd also paid a sum of €123,435 to the Transport Authority, €74,950 for the ship to anchor in Malta and €48,485 for the provision of ‘emergency bunker fuel’. The four local companies also requested payment for fuel and water supplied to the ship. Following the company’s failure to react to the request for payment by the other companies, Judge Mark Chetcuti ordered it to pay the requested sum. Meanwhile, Judge Anthony Ellul ordered a vessel belonging to another company of the same parent corporation, to pay the sum of € 43,152 to 22 sailor who were not paid for services they provided. International Transport Workers’ Federation’s Paul Falzon opened this case against the ship called “B LADYBUG” and told the Courts that although the company had agreed to certain settlements equivalent to € 43,152, had not yet paid. After the company failed to respond to the request within the specified time limit, Judge Anthony Ellul granted the request of the crew and ordered the company to pay the requested sum. Source: Malta Independent

GTT inks technical service agreement with Oman Drydock Company

GTT, world leader in the design of membrane containment systems for the maritime transportation and storage of Liquefied Natural Gas (LNG), and Oman Drydock Company (ODC), one of the most advanced dry-dock yards, have signed a Technical Service Agreement (TSA). The GTT technical service agreement ensures that ships equipped with its sophisticated membrane technology may continue to operate at optimum efficiency. On-going operational performance and a close follow up of the storage unit are central to any LNG installation and this follow-up continues throughout the vessel’s life cycle, from the design and construction phase up to operations and maintenance phase. GTT will provide ODC with a wide range of resources based on its extensive and specialized expertise in the field of LNG transport. “With a world fleet of more than 250 LNG carriers in service, and more than 70% equipped with GTT membrane containment systems, we are involved in partnering and approving dry-dock shipyards who guarantee a high quality of service during dry-docks.” said Philippe Berterottière, chairman and CEO of GTT. Under the TSA agreement, ODC will acquire the necessary competencies and skills for offering its services for the maintainance of the GTT membrane containment systems. Prior to the signature of a TSA, GTT performed an audit in order to ensure that the yard could meet the necessary requirements for the highest standard of safety and quality control for a good dry-docking operation. The shipyard will also benefit from a dedicated training of its personnel and advisory services for the preparation of each maintenance operation. Mr. Berterottière added, “Oman has an important LNG fleet and its geographical position thrusts it to the forefront of the international LNG market, and is close to shipping routes for the Gulf and Asia. We are delighted to include ODC in our list of approved repair yards and to develop a new partnership”. Source: GTT

Throughput of Ukraine’s seaports up 9.4% to 57.88 mln t

In January-May 2014, seaports of Ukraine handled 57,889,00 t of cargo (9.4%, year-on-year), says press center of Ukrainian Sea Ports Authority. State stevedores under the Ministry of Infrastructure handled 20,228,000 t (35% of the total volume). Private stevedores through all berths handled 37,661,000 (65% of the total volume) including 20,180,000 handled by private stevedoring companies through the berths of USPA (35% of the total volume).

Transshipment of export cargo increased by 18% to 41,796,000, Transshipment of import cargo hit 5,896,000 (-12.4%), transit – 9,995,000 (-0.4%), coastal trade cargo – 202,000 (-71.4%). Container throughput of seaports totaled 296,750 TEUs (-2.6%, year-on-year). Source : PortNews

Navios Maritime Acquisition Corporation Announces Delivery and

Employment of One VLCC

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Navios Maritime Acquisition Corporation an owner and operator of tanker vessels, announced that the Nave Neutrino, a 2003-built VLCC of 298,287 dwt, was delivered The Company also announced that the Nave Neutrino has been chartered out to a quality counterparty for six months at a rate based on an adjusted BITR TD3 index with an option for an additional six months period. Following the delivery of the Nave Neutrino, Navios Acquisition has 37 vessels in the water as follows: 23 product tankers, four chemical tankers and ten VLCCs.

…. PHOTO OF THE DAY …..

The ZHEN HUA 25 at Maas Pilot station enroute Rotterdam – Maasvlakte II – Photo : Charles Bijl ©

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through this free service and does not guarantee the completeness or accuracy of the information

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