DAILY COLLECTION OF MAR ITIME PRESS CLIPPINGS 2014 –...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2014 – 039

Distribution : daily to 28400+ active addresses 08-02-2014 Page 1

Number 039 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Saturday 08-02-2014

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

The Dockwise semi-submersible heavy load transport ships MIGHTY SERVANT 3 (left)

and FJELL moored at Drydocks World in Batam (Indonesia) Photo : Piet Sinke (c) CLICK on the photo to view the High Resolution version !

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EVENTS, INCIDENTS & OPERATIONS

See PRONOMAR latest movie at : http://www.youtube.com/watch?v=R1dxKALwv7w this latest movie is showing the PRONOMAR drying systems installed onboard the Fred. Olsen Windcarrier "BOLD TERN" and onboard the HGO InfraSea Solutions owned "INNOVATION" please CLICK on the link to view to movie !

Jan de Nul’s TSHD JUAN SEBASTIAN DE ELCANO anchored off Batam Island, a trailing suction hopper dredger is mostly used for dredging loose material such as sand, clay or gravel. To this end, one or two suction tubes equipped with a drag head that is trailed over the ground are lowered. Through a pump system the sand/water mixture is sucked in and stored in the ‘hopper’ or well of the vessel. Once fully loaded, the vessel sails to the unloading site where the material can be offloaded through its bottom doors or be reclaimed using the ‘rainbowing’ technique. The on-site pumping of the sand using a floating pipeline is another frequently used unloading technique. The JUAN SEBASTIAN ELCANO (callsign LXDD) is built in 2002 at IZAR Construcciones Navales SA - Sestao Yard

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under hull No.: 322 and is having a hopper capacity of 16.500 m3 the 26.650 DWT dredger is having a length of 157.5 mtr and a width of 27.8 mtr and when loaded a draft of 11.1 mtr. For dredging is installed 2 x 2250 Kw (pump power – trailing) and for discharging 9500 Kw pump power is available, for the propulsion of the dredger 2 x 8400 kW MAN 8L48/60 engines are installed which giving the dredger a service speed of 15.7 knots, onboard is accommodation for 42 person.

CLICK HERE to view the working principles of the Trailing Suction Hopper Dredger. Jan De Nul Group is a family-owned Belgian company, with the financial headquarters in Luxembourg, that

provides services relating to the construction and maintenance of maritime infrastructure on an international basis. Its main focus is dredging (including other forms of marine engineering), which accounts for 85% of the turnover. Other areas include civil engineering and environmental technology. Originally founded in 1938, in Hofstade near Aalst, Belgium, Jan De Nul started as a construction company specialised in civil works and maritime construction. It was only in 1951 that the company entered into the dredging business.

At the end of 2008, Jan De Nul had 4985

employees and a yearly turnover of 1.882 billion euro It is one of the four largest dredging companies in the world, together with Dutch

companies Royal Boskalis Westminster and Van Oord, and fellow Belgians DEME. Jan De Nul has a fleet of over 80 ships, including 14 cutter suction dredgers, 26 trailing suction hopper dredgers, 20 split barges, 5 backhoe dredgers and 17 rock transport barges This includes the Cristobal Colon, when launched in 2008 the world's largest dredger with a capacity of 46,000 m³. It can dredge to a water depth of 155m. Joined by her near-sister ship Leiv Eiriksson in 2010, Jan De Nul has one the world's largest, if not the largest, fleets of hopper dredgers. All photo’s : Piet Sinke © CLICK on the photos to view and / or download the High Resolution version !

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Shipping industry sees an end to five-year downturn

By Keith Wallis

The SCARLET ISLAND was launched February 5th from the Tsuneishi ship yard in Cebu. This vessel is No 4 of 9 to be built for K line. Photo’s : Captain Edward Fitzek ©

The shipping industry is poised to emerge from its longest downturn in three decades, buoyed by an end to years of overcapacity that have depressed freight rates since the end of a shipping boom in 2008. Dry cargo ships are likely to see the strongest recovery, say owners and analysts, as growth in bulk commodity cargoes such as iron ore and coal outpaces supply of new tonnage for the first time in seven years. But tanker rates will also rise as fleet growth is slowing, while strategic oil reserve projects in China and India should boost already solid Asian demand. The recovery will bring some respite to shipping firms that have endured years of losses as freight rates failed to cover costs. Global shipper TMT Group filed for bankruptcy protection last June, shortly after South Korea's STX Pan Ocean filed for court receivership, while Indonesian shipper PT Berlian Laju Tanker narrowly avoided bankruptcy. "While there will be potholes, here and there, as always, the worst is over based on the market fundamentals," said Ong Choo Kiat, president of U-Ming Marine Transport one of Taiwan's largest listed shipping companies. Prices of new and secondhand ships started to rise last year on expectations of a recovery, though experts warn some shippers will still only break even this year and any recovery may fade after 2016 when overcapacity could again dampen freight rates. Key drivers of the pick-up will be China's continued urbanisation and falling iron ore prices, experts say, which should support import growth even though the commodities super-cycle that drove a 2003-2008 boom in shipping markets is over. The global dry bulk



seaborne trade is forecast to grow 5.8 percent in 2014 to 4.37 billion tonnes, according to Barclays Research, outpacing a 5.3 percent rise in the global merchant fleet to 753 million deadweight tonnes. This is the first time growth in demand for shipping of iron ore, coal, grain and minor bulks such as fertilizer, logs and soya beans has been greater than dry bulk fleet growth since 2007, Barclays said, as the industry finally shakes off a surge in new ship orders in the wake of the boom. However, ship owners who paid high prices for new tonnage at the peak of the market would still only break even this year, said Jayendu Krishna, senior manager at shipping consultancy Drewry Maritime Research, Buyers who paid up to around $100 million for a 180,000 dwt Capesize ore carrier at the top of the market would need a daily charter rate of $44,000-$45,000 to break even, still well above current rates. The price of a similar Capesize ship has since eased to around $56 million, according to Clarkson Research. The Baltic dry index compiled from a basket of dry bulk freight rates and which traditionally falls in the run up to the lunar new year holiday in China, has halved in the past month to 1,086 points on Feb. 5. Dry bulk rates are expected to bounce back in February and March as chartering activity rises, said Khalid Hashim, managing director of Thai dry bulk ship owner Precious Shipping. "Our reading of the market is that the up-cycle will continue till the early or middle part of 2016 before starting to slip," Hashim told Reuters, although that would depend on the number of new dry bulk ships delivered. Analysts from Barclays and Jefferies forecast the Baltic dry index would average between 1,400-1,600 points this year, compared with 1,060 last year. The index topped 11,500 in mid-2008. For the tanker market, rates for very large crude carriers (VLCCs) on routes to Asia had climbed since October to their highest level in 18 months, said Peter Sand, chief shipping analyst at industry lobby group Bimco. At the same time, growth in the VLCC market slowed to 1.9 percent year-on-year in December compared with expected import growth in China of around 4 percent, which should help boost freight rates. "I believe we are about to go from bad to better in the very large crude carrier market," Sand said, adding that rates for VLCCs on routes to Asia had climbed since October to their highest level in 18 months. Demand should be boosted by China's moves to fill part of its strategic petroleum reserve and India's plan to launch underground storage facilities later this year. This could include more than 50 million barrels in China and nearly 40 million in India, said shipbroker ACM Shippng in Singapore. "[China's] stockbuilding has some way to go," said Henry Curra, ACM's head of research. Moves by China to diversify its crude oil supplies to West Africa and South America would also lead to longer sea voyages and higher rates for tanker owners, Sand said. Source : Reuters

Destruction By Fire Not A Mechanical Breakdown Under A Laytime Exclusion

Clause This was a dispute as to whether destruction by fire was a “mechanical breakdown” under Clause 28 (laytime exclusion clause) of the charter. The Tribunal and the Commercial Court applied a narrow construction of the laytime exclusi on clause and concluded that fire

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was not “mechanical breakdown”. The Court of Appeal upheld both the Tribunal's award and the Commercial Court's decision and, once again, ruled in favour of the Owners and found that they were entitled to demurrage.

The background facts

The Ladytramp was chartered on the Sugar Charter Party 1999 form for the carriage of bulk sugar from “1-2 safe berth(s), 1 safe port (intention Santos) but not south of Paranagua to the Black Sea (intention Odessa)”. On 9 June 2010, the day of the fixture, the Charterers declared Paranagua as the loading port. On 14 June 2010, a week before the vessel arrived at the load port, the parties were informed that a fire had occurred at the terminal where they had initially scheduled the vessel to load the cargo. The fire had destroyed the conveyor belt system linking the terminal to the warehouse.

On 20 June, the vessel arrived at Paranagua and tendered notice of readiness. In the absence of an available berth, the vessel remained off the port until 14 July, when she entered the inner roads of the port awaiting berthing instructions. Loading commenced on 18 July and was completed at 1300 hours on 20 July. The vessel subsequently sailed for the discharge port in the Black Sea.

The Owners claimed demurrage and contended that time began to count at 1400 hours on 21 June 2010 and that laytime expired at 2353 hours on 25 June. Thereafter, the vessel was on demurrage continuously up to the time of completion at 1300 hours on 20 July. The Charterers disputed the claim, relying upon the laytime exclusion clause (Clause 28) of the charterparty, which provided:

“In the event that whilst at or off the loading place ... the loading ….of the vessel is prevented or delayed by … mechanical breakdowns at mechanical loading plants, government interferences … time so lost shall not count as laytime”

The Charterers sought to rely upon Clause 28 on the basis that the loading of the vessel was prevented by “mechanical breakdown” (caused by the destruction of the conveyor belt system by fire) and also by “government interference” (resulting from the local port authority's refusal to allow loading by reason of the fire).

The arbitration award

The arbitrators found that the Owners were entitled to demurrage and made the following rulings:

1. The safe berth point: When the terminal intended to be used by Charterers became unusable as a result of the fire, the Charterers were still under an obligation to nominate “1-2 safe berths”. The Charterers could have discharged their obligation to nominate a safe berth by nominating an alternative berth.

2. The fire and mechanical breakdown point: The inoperability of the conveyor belt was the result of the physical damage due to the fire rather than any mechanical breakdown.

3. The government interference point: The refusal of the port authority of Paranagua to permit vessels to load at the terminal in the light of the fire was not “governmental interference”. The meaning of governmental interference in Clause 28 related to such things as embargoes and export bans rather than administrative decisions.

The Commercial Court decision

The Charterers appealed to the Commercial Court on the basis that the Tribunal had erred on all three points.

In relation to the “safe berth” point, Mr Justice Eder held that the Tribunal had asked the wrong question, i.e. whether the Charterers had a relevant legal obligation to nominate an alternative loading berth when the intended loading terminal became unusable by fire. This was not a case about berth nomination. It was about whether there was prevention or delay in loading caused by an excepted peril. There was no reason in principle nor in the charterparty wording that required the Charterers to nominate a berth as a precondition to the operation of Clause 28.

Most of the Commercial Court's judgment was focused on the mechanical breakdown point. The Judge upheld the Tribunal's decision. The Charterers argued that the Tribunal's finding was contrary to the Court of Appeal decision in the Afrapearl where it was held that the cause of the breakdown is immaterial and that there is a breakdown if the equipment does not function or if it malfunctions. The Court rejected this argument and held that as a matter of ordinary language and common sense, the destruction of an item was not within the scope of the term “breakdown”, still less within the term “mechanical breakdown” (the Thanassis A (unreported) 22 March 1982, referred to in the Afrapearl). The inclusion of the word “mechanical” had the effect of restricting the scope of the “breakdown”. What was required was a breakdown of a mechanical nature.

The “government interference” point was also upheld by the Judge. The Judge held that there was no finding that the port authority in Paranagua was a government entity or that the permission to berth at the intended terminal was suspended by the port authority. The Judge also agreed with the Tribunal that, as a matter of construction, the



wording “government interference” requires more than an ordinary administrative act performed by a port authority as part of the day-to-day management operations.

The Charterers' appeal was dismissed but they continued with a fresh appeal to the Court of Appeal.

The Court of Appeal decision

The point of law before the Court of Appeal was whether the delay in loading the vessel at Paranagua was caused by “mechanical breakdown”. The Charterers submitted that the Afrapearl led to the conclusion that there was a “mechanical breakdown” of the conveyor belt system, simply because as a result of the fire the machinery no longer functioned as a conveyor belt system. The Court of Appeal dismissed the appeal.

Lord Justice Tomlinson held that the clause under consideration in the Afrapearl (and in the Thanassis A) was concerned simply with “breakdown of machinery or equipment in or about the plant of the charterer, supplier, shipper or consignee of the cargo”. In the present case, the clause under consideration was concerned with “mechanical breakdown at mechanical loading plants”. It was not sufficient that the mechanical loading plant no longer functioned, or malfunctioned. The nature of malfunction had to be mechanical in the sense that it was the mechanism of the mechanical loading plant which ceased to function, or malfunctioned and caused the prevention of or delay to loading and the consequent loss of time. This connotes an inherent mechanical problem. Destruction of machinery by fire did not amount to a mechanical breakdown as “fire” was not an excepted peril under Clause 28.

This case demonstrates the degree of scrutiny that the English courts are prepared to exercise when looking at exception clauses. Just because clauses are similarly drafted does not necessarily mean that they will be similarly interpreted. The Court of Appeal judgment in the Ladytramp emphasises this approach. Here, focus was placed upon the word “mechanical” to conclude that the nature of the breakdown is relevant. In addition, the cause of any delay must be capable of being brought within the ordinary meaning of the charterparty clause without any need to extend the meaning or imply additional wording. However, if the wording is ambiguous, the courts will apply the contra proferentem principle and will construe the clause against the party seeking to rely upon it. Source: INCE&Co

The PATANI approaching the Ijmuiden locks enroute Amsterdam – Photo : Simon Wolf (c)

Hijacking of KERALA Liberia continues its active investigation of the hijacking of the Liberian-flagged product tanker, KERALA, (IMO No.: 9390927), at Luanda, Angola on18 January 2014. Liberia, in co-operation with the vessel owners, requested the attendance in Tema, Ghana, of an INTERPOL-led multinational Incident Response Team. These authorities, supported and helped by the Ghanaian authorities, undertook a crime scene investigation on board the vessel. A representative of the Liberian Flag Administration also



attended onboard in Tema to observe the collection of forensic evidence by the authorities. All parties were given full access to the vessel's documents, officers and crew. Although the investigation is still ongoing, the evidence gathered thus far by the INTERPOL Incident Response Team has allowed the Liberian Registry to conclude that the vessel was hijacked by pirates. During the hijacking, the pirates disabled the vessel’s AIS and other communication equipment so that the vessel could not be tracked from shore or satellite. During this period, the pirates painted over the identifying features of the vessel, including funnel, name and IMO number and undertook three separate ship-to-ship transfers of cargo amounting to the theft of approximately 12,271.5mt of cargo. The owners of the KERALA regained contact with the vessel on 26 January 2014, shortly after the pirates had disembarked. The vessel immediately set a course for the safety of the port of Tema, Ghana, as a port of refuge. All crew members received immediate medical treatment on arrival at Tema. During the hijacking, one crew member was stabbed by the pirates and others were beaten. Liberia will continue working with the authorities in Ghana, Nigeria and Angola and elsewhere in the region in order to bring to justice the perpetrators of this crime to justice. Liberia remains committed to fighting piracy in all of its forms wherever it may occur in the world.

The SAGA PEARL II arriving in Cape Town – Photo : Ian Shiffman ©

LPG Shipping Surge Seen Extended Amid Signs of Panama Delay

Delays to the $5.25 billion expansion of the Panama Canal may extend a surge in rates for vessels hauling liquefied petroleum gas to Asia from the U.S., a shipping company and industry analysts said.

“We have been basing our plans on using Panama, so if there are delays then that’s going to tighten the supply of ships,” Christian Andersen, president of Avance Gas Holding Ltd said by phone today. The company is the fifth largest vessel owner specializing in LPG, according to data from Clarkson Plc, the world’s biggest shipbroker. The expansion works were suspended yesterday after negotiations broke down between the Panama Canal Authority and a group of

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construction firms undertaking the enlargement, according to the head of the authority. A spokeswoman for Sacyr SA (SCYR), which is leading the works, said they were slowed rather than halted.

The enlarged waterway will curb demand for LPG carriers to transport the fuel because the link shaves about 17,000 miles off round-voyages between Tokyo and Houston, requiring fewer tankers for the same amount of cargo. The U.S., which is producing the most crude in 25 years, is accelerating shipments of LPGs including propane and butane because they are byproducts from extracting crude and gas.

Demand for the largest ships hauling LPG, used for cooking and heating, is surging as the U.S. boosts exports. The country has among the world’s cheapest supplies of the fuel, which is also a feedstock for the petrochemicals industry. Market Impact

The widening of the Panama Canal will reduce the number of ships required to haul 1 million tons a year of LPG to Asia from Houston to four vessels from six, according to Andersen. The the delayed start will prolong a rally in freight costs.

“As long as the Panama Canal remains unfit for taking VLGCs, that’s going to have a positive impact on the freight market,” Erik Nikolai Stavseth, a shipping analyst at Arctic Securities ASA, said by phone today. “Assuming exports continue as normal, volumes will continue to be shipped.”

Rates for VLGCs, the industry’s biggest ships, will rise to $45,000 a day in 2015 from $30,400 in 2012 and then drop to $37,500 after the completion of the Panama Canal expansion cuts voyage durations, Arctic estimates show.

Avance Gas, which is owned by Stolt-Nielsen Gas, Sungas Holdings Ltd and Transpetrol Shipping Ltd, has six VLGCs on the water and another eight under order. The total fleet of such vessels is about 160 vessels.

“The volumes will continue to move, it’s just that they will move longer-haul, rather than through Panama,” said Nicola Williams, an analyst at Clarkson Plc, the world’s biggest shipbroker. “We see a continuation of longer-haul movements for a longer time than we’d originally anticipated.” Source: Bloomberg

The WIND SURF anchored off St Lucia – Photo : Leo Verhoog ©

Gas warning after two found dead BOAT owners are being warned of the lethal implications of not carrying a carbon monoxide alarm on board, after two men were found dead in their bunks. A 26-year-old skipper and 21-year-old crewman were found dead on board the scallop-dredger Eshcol near Whitby, North Yorkshire, on January 15. The boat, which was registered in Milford Haven,



had been taken out overnight by the two men. When they were not seen as expected the next day, fishermen moored nearby went on board and found the vessel’s butane gas cooker lit, and the wheelhouse full of fumes.

Initial findings by the Marine Accident Investigation Branch (MAIB) indicate the men were poisoned by carbon monoxide. It is thought that, before going to bed, the men lit the gas cooker in order to warm both the wheelhouse and the adjacent sleeping area. The Eshcol was not fitted with a carbon monoxide alarm.

In a statement, MAIB said: “Gas cookers are designed for cooking, not domestic heating.”

It added that, in a poorly ventilated artea, carbon monoxide can “quickly build up to lethal levels”, and with no smell, taste or colour, is extremely difficult to detect. “Carbon monoxide alarms are not expensive and should be fitted,” it added. Source : Milford & West Wales Mercury

Concerns on fuel leak as Spanish ship hits French dyke

A Spanish cargo ship slammed into a dyke and split in two near the French port of Bayonne on Wednesday, injuring at least one sailor and raising concerns of a fuel leak. The local mayor’s office said the boat, carrying 11 sailors, had run into the dyke amid heavy seas near the town of Anglet after leaving Bayonne in southwestern France. The prefecture for the

Pyrenees-Atlantiques region said efforts

were underway to recover the sailors by helicopter but the rescue operation was being hampered by winds of up to 110 kilometres per hour (70 miles per hour). Officials said a fuel leak had been detected and an emergency plan known as Polmar had been activated to deal with maritime pollution. The prefecture said one of the sailors was injured but provided no details on the extent of injuries. Click here : http://gcaptain.com/watch-as-huge-waves-split-cargo-ship-in-half-video/ It said the LUNO cargo ship, 100 metres (330 feet) long, had been empty. Source : AFP / New Straits Times

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The MSC RAVENNA entering the Suez Canal on the south side during the early morning enroute Port Said

Photo : Piero ©

Carnival cruise ship passenger heading to Charleston airlifted by Coast Guard

A Coast Guard helicopter airlifted a passenger from a Carnival Cruise ship heading toward Charleston Wednesday afternoon. The ship's crew called for medical help after the 27-year-old man complained of severe abdominal pain, according to the Coast Guard. A crew from Air Station Miami took the man and a nurse off the cruise ship Fantasy about 80 miles northeast of Cape Canaveral, Fla., about noon and flew them to Cape Canaveral Hospital in Cocoa Beach, Fla. The Fantasy was on its way back to Charleston after a five-day cruise in the Bahamas.

An update on the man's condition was not available. Source : The Post & Courier

NEW TSHD STRANDWAY PASSING BOSKALIS HEADQUARTERS

Boskalis latest trailing suction hopper dredge STRANDWAY passing the Boskalis headquarters in Papendrecht on the way to De Boer Shipyard for the final outfitting, to finish and complete the vessel so she will be fit for duty soon

- Photo : Dirk van Uitert ©

Euronav to buy five ships worth $255 mln from OSG - SEC filing

Belgian crude oil shipping group Euronav has agreed to buy three very large crude carriers and two aframax tankers for $255 million from U.S. company Overseas Shipholding Group (OSG), an SEC filing showed. Euronav will buy the ships in a joint venture with GSO Capital Partners, though the deal is subject to the approval of a bankruptcy court, as OSG in November filed for a Chapter 11 reorganisation, the statement said. Euronav was not immediately



available for comment. In January, Euronav said it would buy 15 very large crude carriers for $980 million from Denmark's Maersk, citing an improved outlook for the crude shipping market. Source : Reuters

Big cruise mutiny over single sightseeing miss

Dozens of protesting passengers on a luxury cruise ship angry over a canceled stop in Vietnam last night ended their occupation of the vessel after a 17-hour standoff. Just 40 passengers remained of the original group of 400 who had occupied the Costa Victoria soon after it docked at Ocean Terminal in Tsim Sha Tsui at 6am yesterday. They demanded compensation for the disrupted holiday cruise.

By about 11pm, the final 40 quit the ship too and went to a hotel. Costa Victoria had been due to leave Hong Kong for a new trip to Hainan and Vietnam at 3pm yesterday, picking up 1,000 new passengers, but its departure was held up as the protesters remained on board.

The COSTA VICTORIA in Hong Kong – Photo : Dieter Jaenicke - www.vikingrecruitment.com ©

The ship finally sailed at about 11.30pm. A new round of negotiations between the protesting passengers - who are demanding 30 percent of the cost of their package tour as compensation and Miramar Travel and Costa Cruise - will be held today

The passengers - with Democratic Alliance for the Betterment and Progress of Hong Kong lawmaker Ann Chiang Lai-wan and Travel Industry Council officials acting as mediators - demanded that Miramar return one third of their money and make an apology. Chiang was a passenger on the cruise.

About 2,000 passengers from Hong Kong, Macau and Taiwan left on Saturday for the six-day trip from Hong Kong to Sanya and then on to Da Nang and Halong Bay in Vietnam. Half of the 2,000 are Miramar customers.

The voyage was uneventful until they reached Halong Bay on Tuesday when the Costa Victoria was unable to dock because of a sunken ship. A spokeswoman for Costa Cruises said the port and channel at Halong Bay were closed by authorities and Costa Victoria put back to sea. "The decision was made solely in the interests of passenger safety,"

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she said. Last night, the 40 defiant passengers had sought a refund of at least 30 percent of the cost of their package. They had earlier demanded 70 percent. They said they had paid Miramar HK$8,000 to HK$18,000, depending on their accommodation.

Miramar had offered to pay each passenger about HK$340 and Costa Cruises would pay US$50 for each shared room. Among the 1,000 passengers were 100 from Guangzhou. Alex Lee Chun-ting, general manager of Miramar Travel, said the compensation demanded by the protesting passengers was unacceptable.

"They have been on board and enjoying the facilities throughout the voyage. The only thing is that the ship could not dock in Halong Bay and they missed a four-hour tour there. Would that justify a big refund? "It is impossible for us to accept that." Travel Industry Council executive director Joseph Tung Yiu-chung said the council's representatives will meet Miramar Travel managers today.Source : Hong Kong Standard

The CMA CGM COLUMBA arriving in Rottredam-Europoort – Photo : Harry van den Berg ©

Asia Tankers-VLCC rate rise could be shortlived

By Keith Wallis Dirty tanker rates on key Asian freight routes could climb next week as Chinese charterers return to work and the level of chartering activity increases, although brokers cautioned the rise could be shortlived. "With China open, I would

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think there will be more cargoes (that would lift rates). There are still cargoes out there waiting to be fixed for the last eight days of February," said a Singapore-based tanker broker on Friday. But the rate increase could be tempered as the number of tankers available for charter outpaced the number of cargoes, said Kevin Sy, head of freight derivatives at broker Marex Spectron in Singapore. Rates could be strong "for a couple of days" next week before easing, Sy noted. "I wouldn't say they will collapse." Around 119 Middle-East-Asia cargoes have already been fixed for February, the same number for the whole of January. About 10 cargoes still need to be fixed this month, Sy noted, with around 30 tankers available for charter.On the West Africa route, ship owners are positioning very large crude carriers (VLCCs) to take cargoes from West Africa to China because rates are slightly higher than from the Middle East. The benchmark rate for a VLCC voyage from the Middle East to Japan closed at about W48.5 on Thursday, up from around W42 a week earlier. By comparison, charter rates for VLCCs from West Africa to China closed at W50 on Thursday against W47 last week. "The VLCC market can only be described as volatile. Rates are peaking and plunging within a week as sentiments vary quickly," a Norwegian shipbroker Fearnley said in a market commentary on Wednesday. More fixtures for March loading are expected to be concluded next week because the market has seen only two fixtures reported so far, brokers said. Rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia continued to slide, falling to close at W99 on Thursday compared with almost W104 a week earlier. "The market remains over-tonnaged," said a Singapore-based aframax broker on Friday. Activity in the clean tanker market picked up this week although the volume of business is expected to rise after China returns to work next week, a clean tanker broker said. "There's a little bit of a buzz," particular on north Asia trades, the broker said. But rates for medium range tankers travelling to Japan from Singapore have remained flat all week at W105 because charterers "had so many ships to choose from. In Singapore it will take a bit more time to shift the ships," the broker added. Source : Reuters

ClassNK continues donations to Indian Primary School

Leading classification society ClassNK (Chairman and President: Noboru Ueda) has made a donation of desks, uniforms and educational materials to the ZP Primary School (Takwe-Khurd, Maharashtra) near the Indian capital Mumbai, as part of its Corporate Social Responsibility activities in India.

As part of these activities, ClassNK has been making donations of educational materials to the school for over the past 3 years. Chairman and President Noboru Ueda visited the school on 6 February 2014 to meet with the faculty and present the donation in person. After observing the students at their studies, Mr Ueda met with Headmaster Mr. Ganesh B Chaskar, where he pledged to continue the donations of the educational materials to ZP Primary School. ClassNK established its first Indian exclusive survey office in Mumbai in 1985, marking the start of ClassNK’s technical services in India. ClassNK currently operates six exclusive survey offices in India, and is constantly seeking to expand the scope of its technical services throughout the country. ClassNK has been providing statutory surveys to a great number of Indian-flagged vessels for owners across India since receiving authorization from the Indian government to



carry out a range of surveys on its behalf in 2005. ClassNK is committed to expanding its operations in the Republic of India, and will continue contributing to education in the country.

The ASSO TRENTUNO off Malta – Photo : Anthony Chetcuti - Malta Maritime Pilots ©

Faulty equipment cited in cruise ship breakaway

A report by the National Transportation Safety Board says faulty pieces of equipment used to secure ships to docks led to a Carnival cruise ship breaking free before hitting two other vessels during a windstorm. The report says the April 3 accident caused about $2.7 million damage to the Carnival Triumph and $203,000 damage to two other vessels at the BAE Systems shipyard. A dock worker also drowned when he was thrown into the water. In a statement Tuesday, BAE Systems officials say they’re sending information to the NTSB that wasn’t available during the fact-finding phase of its investigation. They want to try having the agency reconsider listing faulty bollards as the probable cause. The Triumph was undergoing repairs in Mobile after being stranded at sea for five days. Source : Washington Post

Hans Jakob Kruse has died

http://www.multraship.com/�



Hapag-Lloyd mourns the loss of former Executive Board chairman / Hans Jakob Kruse led the Company from 1973 until 1993. On 4 February, Hans Jakob Kruse died in Hamburg at the age of 84. He was the chairman of the Hapag-Lloyd Executive Board for two decades from 1973 until 1993.

“Hapag-Lloyd is mourning the loss of a visionary and beloved chairman, whose substantial contribution shaped our Company as well as the global shipping industry”, said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd. “He rendered outstanding services to our Company, which will always be remembered.”

Following an apprenticeship as a shipping agent, Hans Jakob Kruse began his career in 1964 as a representative of Hapag and Norddeutscher Lloyd in Australia. In 1967 he returned to Germany as the head of Canada and Australia services. In 1969 he was named a full member of the Executive Board. From 1973 until 1993, Hans Jakob Kruse was the chairman of the Hapag-Lloyd Board.

He played a significant role in the merger of Hapag and Norddeutscher Lloyd and turned Hapag-Lloyd into one of the world’s largest container shipping companies. During his time, Hans Jakob Kruse was also responsible for the forward-looking development of Hapag-Lloyd’s tourism investments, in particular its charter airline. As one of the central figures in the world of international shipping, he represented the Company in the transport and tourism industries' most important institutions, including as Chairman of the International Council of Containership Operators (ICCO), also known as the ‘Box Club’, which he founded in the mid 1970s. Following his retirement, Hans Jakob Kruse continued to contribute to the Company, initially as a member of the Supervisory Board and later on the Advisory Committee. The Schleswig-Holstein native was also politically engaged in his adopted home state of Hamburg as a member of the city-state’s parliament. Source: Hapag-Lloyd

"Dockwise heavy lift ship Blue Marlin arrived in Port Phillip this morning 7th Feb from Spain with the latest Australian Navy purchased Adelaide, a sister LHDS to Canberra delivered late 2012 which is due for trials any day now. Nuship Adelaide will be unfastened at Melbourne's Webb Dock before being floated off in the middle of Port Phillip next week weather permitting and then towed to BAE in Williamstown to a position opposite Canberra for completion expected to take just over 12 months. The overhang of 55 meters is 5 meters less than the passing local car ferry Sorrento"

Photo : Andrew Mackinnon – www.aquamanships.com ©

Shippers' council sticks to 5% growth for this year

The Thai National Shippers' Council (TNSC) said the current political uncertainty had not affected exports or the shipping industry, and that it was maintaining its prediction of 5-per-cent export growth for this year. A global economic recovery - especially in the United States, the European Union and Japan - continues to be counted on as the main driver of Thai export growth in 2014, while the increase in global oil prices has not had a negative effect on overall freight costs, said the TNSC.

"Order numbers in the first quarter of 2014 are still looking good, while the global economy continues to recover. That is why the TNSC board has decided to maintain its prediction of 5-per-cent export growth for this year, based on the prediction of global economic growth of 3.5-3.7 per cent, and as long as the baht remains [around] 34 per US dollar," said Nopporn Thepsitthar, chairman of the council. He said that while the value of Thai exports last year had contracted by 0.31 per cent, he expected this year to be much better on increased demand from abroad and signs of recovery in the export sector at the end of last year. Export value hit US$18 billion (Bt590 billion) in December.

http://www.aquamanships.com/�



Ratidanai Hoonsawat, head of the council's export-performance-index project, confirmed that global economic recovery would be the main driving force for export growth this year. He believes negative external factors such as the US Federal Reserve's tapering of its quantitative-easing (QE) programme and China's potential liquidity problems will not affect Thailand's export sector in 2014.

"Even though it has been lowered, the US's QE policy will continue to exist this year, while the value of the baht has dropped because of it. But the markets have expected this for a long time, so they are prepared for it," he said. Vallop Vitanakorn, vice chairman of the TNSC, said the transport of products and the transaction of orders had generally continued to operate normally during the anti-government protests, and that the situation had not affected its processes. Moreover, overseas buyers are still confident in Thailand's export credibility, and in the country's resilience and ability to bounce back in times of crisis, he said. Vallop explained that the increasing global oil price only had an effect on the production costs of certain industries, such as ceramics, petrochemicals and metalworking, which required the use of high energy levels. Most other sectors remain largely unaffected, which is why the freight cost for shipping remains the same. "The protests in the capital do not have effects on logistics, other than the worsening traffic jams. The absence of a permanent government and the closing down of government buildings also have no effect on the issuing and receiving of [purchase] orders, since the authorities in permanent positions are still working as normal," said the vice chairman.

However, despite the minimal effect of the protests on logistics, Vallop said the state of emergency had increased the price of security for shipping, which in turn increased costs. In addition, the reduction in the number of commercial flights by some airlines has lessened export space, since most of them carry cargo as well as passengers.

He urged the government to reconsider the length of the state of emergency before it caused any more damage to the country's economy. Nopporn said the biggest concern connected with the possible absence of a permanent government in the next six months would be delayed progress in negotiations for a free-trade agreement with the EU. The lifting of Generalised System of Preferences status for the Kingdom was another concern that must be addressed by the new government. "If the political situation is prolonged, the country's competitiveness in terms of product prices will be affected, since we cannot make any new FTA deals while there is an absence of a permanent government," he warned. Source: The Nation

At the Flensburger-Schiffbau-Gesellschaft (FSG) the sheerlegs SAMSON lifted the superstructure onboard the

ROLLDOCK STORM Photo : Horst Nurnberger ©



Tanker rate set to lift MISC Improved rates for MISC Bhd’s petroleum tanker division is expected to boost the company’s earnings for its fourth quarter ended Dec 31, 2013 (Q413). “Thanks to strong Asian imports for stockbuilding and refineries ahead of higher winter demand, Q413’s overall petroleum tanker rates soared 45% to 352% quarter-on-quarter and 82% to 108% year-on-year,” said RHB Research Institute in a note yesterday.

“MISC’s petroleum tanker fleet mostly comprises Aframax vessels, whose rates have risen by as much as 45% quarter-on-quarter and 102% year-on-year to an average US$20,400 (RM69,360) per day, slightly above the break-even level of US$20,000 per day.” The research house added that this would bring some relief to MISC, as its petroleum tanker losses were expected to shrink in Q4 onwards. RHB, nevertheless, noted that the strong rally in tanker rates for MISC was short-lived as overall rates this week plunged 35% to 50% week-on-week to the November 2013 levels, which was at the mid-point of the rally that started in October.

“Fortunately, though, Aframaxes saw a smaller drop as activities in the Gulf of Mexico remained buoyant despite the harsh winter, as opposed to the very large crude carrier (or VLCCs), which saw chartering activities on shipments to Asia ease. “We expect the volatility to persist and have factored in 15% and 20% to 25% increases in average rates for financial years 2014 (FY14) and FY15 respectively for MISC’s petroleum and chemical fleet.”

Looking forward, an analyst from a local bank-backed brokerage said he was cautious about MISC’s petroleum tanker division. “Oil tanker rates are cyclical and seasonal. Therefore, the business can be quite volatile,” he said.

In its notes accompanying its Q313 earnings, MISC said the prospects of its chemical and petroleum shipping prospects remained challenging, amid a vessel oversupply market. The shipping company added that long-term contracts in liquefied natural gas and offshore businesses continued to provide stability to the group. RHB said it expects MISC’s FY14 earnings to be within estimates, projecting a 70.9% year-on-year growth for the company. “While the group’s petroleum tanker segment may see lower than anticipated losses due to higher rates, this is likely to offset the earnings shortfall at its heavy engineering division, which saw delays in the Malikai deepwater project.” Source: The Star

ECDIS under the spotlight in fifth issue The Nautical Institute examines the rise of ECDIS, its strengths and weaknesses compared to paper charts and the vital importance of continuous training in the technology in the latest issue

of its specialist publication, The Navigator. The 12-page magazine, aimed at marine navigational officers at all stages in their career, is available now. Editor of The Navigator, Emma Ward, said: "Our readers regularly come across different types of ECDIS onboard ships that they have either never set

eyes on before, or for which they have received only rudimentary training. As focus shifts from using paper charts to relying on this type of technology, it is more important than ever that navigators know how to use the different ECDIS systems as thoroughly as possible, to ensure the safety of the crew, cargo, ship and environment under their watch."

Articles in the fifth issue of The Navigator include analysis of IMO ECDIS training, as well as feedback from The Nautical Institute’s Seagoing Correspondence Group on the importance of familiarisation training. Other features range from an interview with a third officer, who is also a volunteer delegate for NAMEPA (the North American Marine Environment Protection Association), to a discussion comparing ECDIS to the standard car sat nav system. David Patraiko, Director of Projects for The Nautical Institute, added: "ECDIS is the future basis of navigation in the world’s merchant fleet. It is essential that navigators of all ages and experience learn how to use ECDIS to make the best decisions possible. We are delighted to be focusing on this key technology in The Navigator this issue."



The Navigator is produced by The Nautical Institute with support from the Royal Institute of Navigation. It is available in printed format or as a pdf on The Nautical Institute website. Printed copies are currently distributed alongside The Nautical Institute's membership magazine, Seaways, as well as through missions and maritime training establishments. Please note: The Nautical Institute takes a capital T on The

NAVY NEWS

BrahMos missile successfully fired in salvo mode Further boosting Navy's firepower, the 290km-range BrahMos supersonic cruise missile was successfully fired from a naval warship INS Trikand in salvo mode in the Arabian Sea. "For the first time, the BrahMos cruise missile was fired in salvo mode off the Russian-built warship off the coast of Karnataka with an interval of three seconds off the coast of Goa," a DRDO official said here. After the successful test last week,

eight cruise missiles could be fired in salvo .. Source : economictimes.indiatimes.

Carrier of memories: USS Forrestal begins last voyage

There was recreation. Allen Polixa, a crew member on the USS Forrestal from 1980 to 1982, often took "swim breaks" miles out in the Atlantic Ocean, jumping into the water from just below the ship's top deck.

There was order. Fight a colleague or steal from another crew member, said Jimmie Stewart, who served on the Forrestal from 1960 to 1962, and it was down to the brig. No questions asked. And there was chaos. In July 1967, a devastating fire and a series of chain-reaction explosions took the lives of 134 sailors aboard the Forrestal. Future senator and Republican presidential

http://www.tos.nl/en/working-for-t-o-s/onshore-jobs/�



candidate John McCain, then a young lieutenant commander who had been preparing to take off from the Forrestal's deck in his Navy A-4 Skyhawk, managed to escape from the thick of the flames.

"I was one of the lucky ones," McCain said in an interview Monday night. "It was a horrible experience. A lot of brave people gave their lives to save lives that day." Before sunrise Tuesday, in the ice-filled Delaware River near the Navy Yard, that floating city - a home away from home for Polixa, Stewart, McCain, and

thousands of others since the 1950s - took to the ocean for the last time.

The Forrestal, commissioned in 1955 as the first of the post-World War II supercarriers, began its final voyage Tuesday. The ship is headed to Brownsville, Texas, where this month a metal company will begin the nearly two-year process of turning it into scrap. The Navy had offered the carrier for use as a museum or memorial, but said no suitable takers came forward.

The aircraft carrier's journey to open waters began a bit after 5 a.m. Tuesday and was expected to last around 18 hours. The trip to Texas, led by tugboat, should take 15 to 17 days, said Nikhil Shah, president of Brownsville-based All Star Metals.

Tuesday morning, a smattering of veterans and history buffs lined the Navy Yard's snow-covered docks to get their last look at the Forrestal, an imposing and impressive flattop, before it ends up in the Texas chop shop. The thousand-foot ship, as mammoth and foreboding as it was a half-century ago, bobbed back and forth like a cork in the water as dozens of workers, armed with hard hats, flashlights, and glow sticks, pushed and pulled on the dozens of ropes that had been keeping it tied to the dock.

The nine letters spelling out "Forrestal," once painted boldly on the ship's gray exterior, were badly faded. The ship, decommissioned in 1993 and since relegated to shipyards in Rhode Island and Philadelphia, was pulled along Tuesday by four tugboats that, compared to the aircraft carrier, looked like specks as they inched through the water. "Today, most people look at it as 60,000 tons of scrap metal, which it isn't," said Stewart, 74, of Northeast Philadelphia. "It's 60,000 tons of history."

Stewart, a white-haired and white-bearded Navy veteran, is an encyclopedia when it comes to the Forrestal's history. He worked in the ship's lighting shop in the early 1960s - he once wired a room with fancy lights in an attempt to woo women while docked - and lived through larger-than-life storms and plane crashes during his two years on the crew. He even tells of having once seen a gust of wind blow a shipmate off the deck. Like Stewart, Polixa, 54, came out early Tuesday to say goodbye to the ship on which he served as an engineer in the early 1980s. Polixa, who drove



down with his wife from their home in Nutley, N.J., wore a Navy hat and a patch-covered Navy jacket, and took photos and video as the Forrestal eased its way down the Delaware.

"That ship was home for two years," he said.

Despite his experience at the epicenter of the 1967 fire - a tragedy the Navy still uses as a case study to teach damage control and ammunition safety - McCain said he looks back on his time aboard the Forrestal fondly. "I'd always really cherished the hope that they could make a museum out of it somewhere, as they've done with many carriers," the Arizona senator said. "It'll be a shame to see it go." Source : philly.com

RAN’s biggest ever ship arrives in Melbourne

Photo : Dale E.Crisp ©

The hull of HMAS Adelaide, one of the two biggest ships to ever sail with the Royal Australian Navy (RAN), was welcomed to Melbourne by Premier Denis Napthine. The Adelaide joins HMAS Canberra, which arrived here in October 2012, as part of the Landing ship Helicopter Dock (LHD) project for the Royal Australian Navy The Adelaide and her sister ship Canberra are each 230 metres long, weigh 27,000 tonnes and can carry 1,100 personnel, 100 armoured vehicles and 12 helicopters. They are multipurpose ships that can support disaster response and humanitarian relief missions – each containing a 40-bed hospital with two operating theatres, an intensive care ward, laboratory and X-ray facilities. Both ships are being completed at the BAE Systems’ shipyards at Williamstown, which will involve modules for the combat, communications, and ship management systems and final fit-out of all operational compartments. Dr Napthine said the LHD project would dramatically boost Australia’s national security and its ability to support neighbouring countries in the region. “The complex, high-value and innovative work being undertaken on the Adelaide and the Canberra demonstrates Victoria’s strengths in defence and advanced manufacturing technologies,” Dr Napthine said. “Our Government is committed to working with BAE Williamstown and with our defence and manufacturing industry in general to win more work on major naval projects and provide both a viable and secure future for Victoria.

Photo : Dale E.Crisp ©

“This includes planned and proposed projects such as the two Cantabria class replenishment ships, the replacement of 24 Armidale Class Patrol Boat and replacement of the Anzac Class frigates with six Future Frigates.



“The Victorian Government is working constructively with the Federal Government to ensure a strong and leading role for Victoria in these projects. “The LHD project shows what Victorian manufacturing can deliver for our future defence needs while securing a strong and clear future for the BAE Williamstown shipyard and manufacturing supply chains across the state.” Source : PortNews

SHIPYARD NEWS

04-02-2014 : The GLOBAL VISION fitting out at the Tsuneishi Heavy Industries shipyard Cebu Philippines.

Photo : Captain Edward Fitzek ©

Cheoy Lee hauls in NZ tug contracts New Zealand’s Port of Tauranga has signed contracts for two new tug boats to be built at Cheoy Lee in Hong Kong. Cheoy Lee will build two RAmparts 2500w Ship-Assist Tugs. The proven RAmparts design is by Robert Allan, one of the world's leading tug designers. These vessels are 24m Azimuth stern drive (ASD) tugs. They will be powered by twin 3516C Caterpillar engines, operating Rolls Royce thrusters. Each tug, with engine power of 4700 Kw, will produce a bollard pull of 74 tonnes. The first vessel will arrive in Tauranga February 2015 with the second vessel being delivered two months later. Source : SinoShip News

Keppel secures repeat contract from UMW for jackup worth US$218 million

Keppel FELS Limited (Keppel FELS), a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from UMW Drilling 8 (L) Ltd, a wholly-owned subsidiary of UMW Oil & Gas Corporation Sdn. Bhd. (UMW Oil & Gas), for a KFELS B Class jackup rig worth US$218 million, the company said in its press release.

http://www.sterntubeseal.com/�



It will be the third KFELS B Class jackup rig for UMW Oil & Gas and is scheduled for delivery in 3Q 2015. The first jackup - UMW NAGA 4 - was delivered in February 2013 and the second - UMW NAGA 5 - is expected to be completed by 2Q 2014. Mr Rohaizad Darus, President, UMW Oil & Gas said, "The KFELS B Class rigs are efficient drilling platforms with industry-leading features and have been well-received by the market. Our first jackup constructed by Keppel FELS, UMW NAGA 4, is currently deployed in offshore Malaysia while our second rig, UMW NAGA 5, is expected to be delivered in May this year and has already secured a charter from Nido Petroleum Philippines. "We have taken this opportunity to acquire another KFELS B Class jackup from Keppel FELS to enable UMW Oil & Gas to accelerate the growth of our assets portfolio and meet the strong demand for premium jackup drilling rigs in the Asia Pacific region. Keppel FELS has been a good partner for us in delivering high quality rigs on time and without incidents. Teaming up with the world's leading rig builder is a boost to our aim of being Malaysia's premier drilling contractor." The new rig is the 75th KFELS B Class ordered since 2000. Developed by Keppel's technology arms, Offshore Technology Development and Bennett Offshore, the KFELS B Class jackup rig is able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate up to 150 men. Mr Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad that UMW has chosen to build a third rig to the KFELS B Class design. Having our own proprietary rig designs empowers us to customise solutions for each client to suit their unique requirements in the shortest time possible. This provides us with a huge competitive advantage in terms of responding to clients' needs, which are changing with the advancement of drilling technology. The KFELS B Class rig incorporates Keppel's advanced and fully-automated high capacity rack and pinion elevating system, and self-positioning fixation system. It provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the Prestigious Engineering Achievement Award from Institution of Engineers Singapore in 2009. The new contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year. Source : PortNews

International Company managing and operating self propelled Jack Up rigs working worldwide, seeks suitably experienced Captains, Chief Engineers, Officers, Engineers and Crew to join their expanding fleet.

Interested applicants must have valid STCW Certification, are invited to submit their latest updated CVs to : [email protected]

ROUTE, PORTS & SERVICES P580-M Cebu Port dredging all set

The Cebu Port Authority (CPA) will start the P580-million dredging of Cebu International Port (CIP) this month after almost two years of delay, an official said. CPA general manager Edmund Tan said the Department of Transportation and Communications already approved the dredging project.

Last year, President Benigno S. Aquino III ordered the reevaluation of lined-up projects by the legal department.

Tan said the legal department later found the bidding to be above board and there was no reason to rebid the project.

“The winning bidder might sue if we rescind the contract, as it is an advantage for government to continue the project,” Tan said. He said that it would take 11 months to finish the project and before bulk carriers of up to 50,000 metric tons could enter the CIP.

Tan said that the depth or draft at the CIP at present is only eight meters as against an ideal 12 meters that would allow cargo vessels from more countries to easily enter the area. The depth of the port can only accommodate bulk carriers weighing 7,000 metric tons and up to 10,000 metric tons during high tide.

The dredging project was supposed to start in 2012 but this was delayed because of additional requirements.

Earlier in 2013, the CPA conducted a steel sheet piling at the port in preparation for the dredging of the CIP as well as the domestic ports from Pier 1 to Pier 3 after securing a loan from the Development Bank of the Philippines.

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The dredging project will extend up to seawaters off the South Road Properties. Tan also said the port authority has acquired bulk handling facilities with four bagging equipment to accommodate bulk carriers at the CIP.

Oriental Port and Allied Services Corporation president and general manager Tomas Riveral said each bagging equipment can fill eight bags per minute or about 350 bags per hour. This means that a vessel can now unload cargo such as grains or pellets daily using this technology, instead of four days with manual labor. Source : Manila Bulletin

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AUTOMATICALLY IF THE MAIL IS BOUNCED BACK TO OUR SERVER If this happens to you please send me a mail at [email protected] to reactivate

your address again, please do not write this in the guestbook because I am not checking this guest book daily.

Jan de Nul’s TSHD JUAN SEBASTIAN DE ELCANO anchored of Batam Island (Indonesia) – Photo : Piet Sinke (c) CLICK on the photo to view the High Resolution version !

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