DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 –...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2016 – 127

Distribution : daily to 34.000+ active addresses 07-05-2016 Page 1

Number 127 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Saturday 07-05-2016

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

The Sailing yacht ATHENA seen moored in Las Palmas Photo : D. van Wolferen Marine Inspection & Consultant PASSION FOR INSPECTION

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EVENTS, INCIDENTS & OPERATIONS

The m.v. "MAERSK CAROLINA" outbound from Rotterdam on 05.05.2016 photo ; Cees van der Kooij ©

Carnival switches out final cruise ship in Galveston, celebrates with Texans

Carnival Cruise Lines’ Carnival Breeze will arrive in Galveston the night of May 7 to replace the Carnival Freedom cruise ship. This is the third new cruise ship the company has brought to Galveston in just over a year.Carnival Cruise Lines’ Miami-based Carnival Corp.announced the change-ups last year. Earlier this year, the Carnival Liberty replaced the Carnival Triumph. In February 2015, Carnival added a third ship in Galveston, Carnival Freedom.Carnival will celebrate the arrival of the Carnival Breeze and the company’s new Houston Texans partnership with a Mother’s Day event on May 8. Texans stars Brian Cushing and DeAndre Hopkins and their mothers will join Houston-area moms in a head-to-head charity competition on the ship. Contestants were selected based on essays submitted earlier this spring.Cruises are a major contributor to Galveston’s tourism industry. Galveston is the fourth-busiest cruise port in the U.S., based on its 642,000 embarkations in 2014, according to Cruise Lines International Association’s most recent Economic Impact Analysis, released in October. That’s up 6.1 percent from the year before. Source: Houston business Journal

Carnival Sends Spirit To China by Daniel McCarthy

The CARNIVAL SPIRIT will be the first Carnival Cruise Line ship to sail out of China, Carnival Cruise Line president Christine Duffy announced this week. The Spirit, which was set to homeport year-round in Sydney in 2018, will instead spend time in Shanghai during Australia’s winter season. The Spirit wasn’t the first choice to test the waters in China for Carnival. The CARNIVAL MIRACLE was supposed to relocate to China next year and the

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CARNIVAL SPLENDOR the year after, but Carnival delayed entry into China until 2018. Duffy said the ship is best for the market because of its availability and location—it is scheduled to go into dry dock in Singapore in autumn 2018. The Spirit is still set to return to Australia after 2018.

Four Indonesian Hostages In Good Condition: Foreign Minister

Foreign Minister Retno Marsudi said the four crew members of tugboat Henry taken hostage by Abu Sayyaf militia are in good condition.“Based on the information I gathered on Wednesday afternoon about their [four hostages] condition, alhamdulillah (Thank God), they are in good condition,” she said yesterday at Gedung Agung, Yogyakarta.



The four crew members of the tugboat taken hostage are Aryanto (skipper), Piter (chief officer), Dede (second officer) and Samsir (helmsman).Minister Retno said that her office continues to monitor the development of information, condition and position of the hostages held by pirates in maritime boundaries of the Philippines and Malaysia.At present, she went on, Indonesia has also stepped up coordination with the Philippine government and authorities to improve the prospect of releasing the four crew members. “As we already know, yesterday (May 4), we have held a separate bilateral meeting with the Philippine Foreign Secretary to help the release of the four hostages,” she added.Tugboat Henry has been hijacked by Abu Sayyaf group since March 26, 2016, holding the hostages for over a month. Source: Tempo

The tugs WESTZAAN and WATERLELIE seen enroute from Kampen to Amsterdam (Amerikaharbour ) with the newbuilding JOINT RUNNER 1 in Amsterdam the tug WATERLAND took over the transport and will tow the

newbuilding hull to Harlingen for final outfitting photo : Marcel Coster ©

Investigation on Puerto Quetzal bribes Interpol is seeking the whereabouts of Spanish businessman Ángel Pérez-Maura for allegedly paying bribes of $24m in respect of a port concession in Guatemala.Up until recently, the Spaniard was also the president of Colombia's Terminal de Contenedores de Buenaventura S. A. (TCBuen), which previously formed part of Barcelona-based Grup Maritim TCB.However, TCB and TCBuen trustee Camilo Gómez Alzate travelled to Buenaventura to hand in Pérez-Maura's letter of resignation, which took place at the same time that TCB sold its 60% stake in the terminal to APM Terminals.The sale of TCB to APM Terminals was made public on March 6 at the same time that an international arrest warrant was put out for Pérez-Maura. As part of the same case, Juan José Suárez the president of Quetzal Container Terminal (TCQ) - the former TCB subsidiary in Guatemala - has been arrested and is currently in jail.They have been charged with conspiracy, bribery and fraud, allegedly agreeing a bribe of $24m to obtain the concession for Puerto Quetzal, in Guatemala, a terminal which has also been sold to APM Terminals.The investigation was launched by the

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Justice authorities in Guatemala and also by the International Commission against Impunity in Guatemala (CICIG), which is backed by both the US and the EU. Their contention is that a bribe was paid partly in cash and partly in concessionaire TCQ's shares. Source; portstrategy.

Due to travelling this week the newsclippings may reach you irregularly Russia says has started choosing consultants

for Sovcomflot privatisation May 5 Russia's Economy Ministry said on Thursday that it had started the process of choosing firms to consult on the privatisation of shipping company Sovcomflot. The ministry said in a statement that Russia had sent proposals to banks to organise and sell 25 percent in Sovcomflot minus one share. Source: Reuters (Reporting by Alexander Winning; Editing by Dmitry Solovyov)

The Dutch Historic tugs HOLLAND and ELBE seen moored for the Hafengeburtstag 2016 festivities in Hamburg

Photo : Jan Ove Mühlpforte ©

Maersk set fair for consolidation after surprise shipping profit

A.P. Moller-Maersk returned to profit at its main container shipping business in the first quarter, putting the cash rich company in a strong position as the struggling industry consolidates.The group’s shares were up by 5.6 percent at 1127 GMT on Wednesday after Maersk Line confounded expectations of a loss at the container shipping business as the sector grapples with a downturn brought on by overcapacity. Rates for shipping containers transporting anything from flat-screen TVs to sportswear have been at a loss-making level for more than a year, denting profits and opening the highly fragmented sector to consolidation in an effort to cut costs and build scale. With more than 600 vessels, Maersk Line is the global market leader with a market share around 15 percent and has previously played down its ambitions, but the Copenhagen-based company acknowledged on Wednesday that recent acquisitions and vessel-sharing alliances bring new opportunities. “We still have a very strong balance sheet and have plenty of liquidity reserves for unexpected and expected investments,” CEO Nils Smedegaard Andersen said. The group’s cash reserves stand at about $12 billion. Recent high-profile mergers and acquisitions in the industry include the creation of China



COSCO Shipping through a state-led merger and French shipping group CMA CGM SA’s deal to acquire Singapore’s Neptune Orient Lines (NOL). Container lines have also been restructuring debt and forming vessel-sharing alliances to counter the downturn. “Consolidation … is positive when viable, stable alliances are formed, because it enables everyone to concentrate on the customer and not fight exclusively on rates,” Andersen said, adding that smaller players would be vulnerable. “The small and mid-sized companies will need to consider their strategies very radically, in my opinion, if they’re not in an alliance that has a future.”In the first quarter Maersk reduced costs for moving a 40 ft container to $2,060, down 16 percent from a year earlier and about a third lower than four years ago. Group net profit dropped 86 percent to $224 million in the quarter, beating analysts’ average forecast of $55.6 million, with the company’s oil division also faring better than expected in weak energy markets. Low freight rates and weak oil prices brought revenue down by 19 percent, though this was partly offset by a 7 percent rise in container volumes and a 15 percent increase in oil production, Maersk said. “Results were better than feared,” ship brokerage firm Fearnleys wrote in a note. Maersk Line made a profit of $37 million in the first three months of 2016, compared with an average forecast for a loss of $121 million in a Reuters poll of analysts. That was still down from a $714 million profit in the same quarter last year, however. Maersk reiterated its forecast for the container business to achieve full-year underlying profit significantly below last year’s due to lower rates, but it forecast global demand for seaborne container transportation to rise between 1 percent and 3 percent from growth of less than 1 percent last year. The oil division made a loss of $29 million, against a consensus analyts’ forecast for a $59.5 million loss. Maersk said its breakeven price for oil production had been lowered to $40-$45 a barrel from a previous range of $45-$55. Benchmark Brent crude was steady at around $45 on Wednesday morning. Source: Reuters (Additional reporting Nikolaj Skydsgaard; Editing by Jacob Gronholt-Pedersen, Mark Potter and David Goodman)

Strait Shipping ferry Strait Feronia compliant at faster speed in Marlborough Sounds

Large ferries can travel faster through the Marlborough Sounds without damaging beaches or endangering boaties, new tests show.Strait Shipping's new ferry STRAIT FERONIA was tested to see if it was compliant with the "wash rule" if its speed increased by 3 knots.Niwa found the ferry was still compliant with the "wash rule" if it travelled up to 18 knots.The wash rule, in the Marlborough Sounds Resource Management Plan, measures wave energy caused by a ferry.Commissioner Shonagh Kenderdine was reviewing the test results before issuing a final decision on STRAIT FERONIA's 20-year operating permit.Strait Shipping Limited purchased the STRAIT FERONIA last year on the Wellington to Picton route to replace the SANTA REGINA.The 186-metre long ferry could carry 400 passengers and 2150 metres worth of vehicles.Strait Shipping managing director Sheryl Ellison told a hearing in November they wanted to operate their new ferry STRAIT FERONIA at 16 to 16.5 knots, but on occasions they might have to reach 18 knots to maintain its timetable.Opponents said there should be no exception to the 15 knot rule. Source; stuff

Petrobras to sell Argentina, Chile assets for $1.4 billion

By PETER MILLARD AND PABLO GONZALEZ Petrobras has agreed to sell assets in Argentina and Chile for about $1.4 billion, as Brazil’s state-controlled oil producer looks to raise cash and focus on deepwater projects in Brazil.The Rio de Janeiro-based producer has completed negotiations to sell its 67.2% stake in Petrobras Argentina SA to Pampa Energia SA for $892 million, it said Tuesday in a regulatory filing. It also agreed to sell Petrobras Chile Distribucion Ltda. to Southern Cross Group, a private equity company, for about $490 million, it said in a separate filing.Petroleo Brasileiro SA, as it’s formally known, is scaling back its Latin American operations as it looks to complete a two-year, $15.1 billion asset sale program to reduce leverage and finance development of offshore oil fields in Brazil. The company has slashed investments to help navigate the oil market rout and reduce the largest debt load in the oil industry.The company will keep a 34% stake in the Rio Neuquen natural gas concession in Argentina and full ownership of the Colpa Caranda natural gas fields in Bolivia that belonged to its Argentina unit, known as PESA. The Chilean distribution company has assets including 279 filling stations and eight fuel terminals. Both sales are pending approval from Petrobras’s board and regulators.

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Petrobras ADRs rose 1.8% to $7.30 at 2:12 p.m. The stock has surged 70% this year.Buenos Aires-based Pampa Energia, born as an investment vehicle created by businessman Marcelo Mindlin to target distressed opportunities after Argentina’s record $95 billion 2001 default, will become the country’s most diversified energy company once the deal with Petrobras is signed and approved by regulators. Its ADRs rose 3.4% to $20.54."We like the fact that some of the assets of Petrobras Argentina are core assets for Pampa," Juan Manuel Vazquez, head analyst at Puente SA, wrote in an emailed report. "Also, we believe that Pampa may want to look at selling PESA’s refining and distribution businesses as well as the petrochemical businesses, as these are non-core businesses."The price paid by Pampa for the Argentine unit is 13% below Raymond James’ valuation of the assets, according to an emailed report by analysts including Santiago Wesenack. "The financing structure of the deal, which is unknown at this point in time, will be a key factor in determining the final effect on the company’s valuation," the analysts wrote.Among implications of the acquisition for Petrobras Argentina’s bondholders, Pampa will have to tender the company’s 2017 notes at $101, in line with the change of control clause included in the indenture of the bond, Puente’s Vazquez said in his report. The outstanding amount of the 5.875% notes that mature in May 2017 is $300 million, and Pampa may choose to refinance the bond, Vazquez wrote. Source; Worldoil

the NORMAND PIONEER on location at the SBM off Durban South Africa photo : Capt. Mike Skinner

Master - DSV Smit Siyanda ©

Contango remains into play, this time for product tankers

Floating storage plays are always a factor in the tanker market, as it turns out. For much of 2015, talk of floating storage was dominated by speculation that the contango in crude futures might support crude floating storage. However, as shipbroker Gibson pointed out in its latest report, that “at the same time, much of the oil surplus was being absorbed by refiners chasing some of the best margins seen since the financial crisis, pushing much downstream into product stocks. It was therefore little surprise to see product stocks swell and floating products storage emerging in the latter stages of 2015, despite product contango structures not necessarily being supportive of a play”. According to Gibson, “initially, clean floating storage was centered on Europe and the Mediterranean, as the US, Russia and the new Middle East refiners flooded Europe with middle distillates, whilst at the same time European refiners maximized runs. These factors pushed land based distillate stocks in ARA to record levels, forcing the need for floating storage. In recent weeks the diesel glut may have eased off marginally in the region, with the number of product tankers engaged in storage easing as higher inland demand and refinery maintenance draw down supplies. However, with seasonal maintenance starting to subside, and heavy inbound diesel flows from all directions, including a VLCC from Asia, this respite is likely to be short lived. Outside of Europe, a noticeable increase in product storage activity has picked up in recent weeks, with 4-5 LR2s sitting laden off Singapore as light distillate stocks are just below the record level of 15 million barrels. However, with peak Asian gasoline demand season approaching, such stocks may soon be drawn upon – if demand seasonality follows typical trends. Nevertheless, with increased interregional flows and ample supplies in the West waiting for the right economics to ship to the Far East, the region is set to remain well



supplied for much of the year. However, longer term, pressure on global refining margins will prompt capacity reductions”, said the shipbroker.Meanwhile, as Gibson points out, “many refining analysts expect margins to fall to lower levels over the course of the year, bringing back expectations that the familiar story of capacity reductions in ageing refining centers (Europe, Japan, Australia) will once again begin to play out, albeit a few years later than originally anticipated. However, to force this story, persistently weak margins will need to emerge, prompting run cuts and shuttered capacity by the weakest links. However, with gasoline cracks expected to outperform diesel, gasoline orientated refiners may be in a position to hold on longer than what might have been envisaged a few years ago. Yet until this story unfolds, floating products storage could remain a feature of the market, even if the absolute volumes are limited. In the short term, whether floating storage is positive or negative for the tanker market is debatable. On one hand it creates inefficiencies and delays, which constricts the supply of tonnage, supporting freight. However, on the other, it can limit trading opportunities, which has been evident in recent months. However, one or more catalysts could soon see this change”, it concluded.Meanwhile, in a separate report this week, shipbroker Fearnleys commented on the state of the product tankers’ market by noting that “in the East of Suez markets, with continuously slow activity in the LR2 market in the Middle East, the market is now in its 4th consecutive week with softening rates. The last done fixture for MEG/Japan is still at ws82.5, but with USD 1.6 million done for MEG/UKC charterers will surely push for lower numbers on the MEG/Japan route as well. The position list will certainly allow it. The LR1 market has remained soft as well this week, as we currently assess MEG/Japan at around ws95 and USD 1.3 million for MEG/UKC. As for the MR market, activity has subsided somewhat since last week and for the time being it looks as though rates have flatted out”.Similarly, in the West of Suez, “with London off on holiday on Monday, the week got off to a slow start, with hardly any activity in any of the different segments. And for the LR2 market, it seems as if the Brits never made it back to work as the market has been almost completely dead this week. The LR1 market remains quiet as well with only some activity on the UKC/West Africa trade. For both the LR1 and LR2 market rates remain under pressure whilst the owners await busier days… With delays and ullage-issues on the Continent, the MR market has managed to firm a few points since last week. UKC/USAC is currently trading at around ws122.5 and for the next couple of weeks the position list is relatively tight considering all the uncertain ships. After a few weeks now of firm rates close to ws200 for the x-MED Handy market, the air came out of the balloon as activity tried up before the weekend. Rates are down 50 points so far, but most likely, we have not seen the end yet”, concluded Fearnleys. Source: Nikos Roussanoglou, Hellenic Shipping News Worldwide

Pressure builds on shipping industry to set carbon targets

Disagreement among nations means no carbon emissions targets have been set for international shipping, but voices from within the industry are calling for global curbs to be set soon, before countries or regional blocs take matters into their own handsThe shipping sector, like aviation, was excluded from any target cuts under last year’s Paris climate deal, which set a goal of restricting the rise in global average temperature to less than 2 degrees Celsius. Shipping now makes up around 2.2 percent of world emissions of carbon dioxide (CO2), the main greenhouse gas responsible for global warming, and that share is forecast to rise dramatically if nothing is done to slow it. The International Maritime Organization, the U.N. agency responsible for regulating pollution from ships, forecasts CO2 emissions from vessels rising anywhere between 50 percent and 250 percent by 2050 in its “business as usual” case,

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as economies grow and trade increases So far, specific targets to curb emissions growth have been blocked by emerging countries like India and Brazil, which expect their shipping volumes to increase over the next decades. But some shipping companies, especially ones that have invested in newer, more fuel-efficient ships, say the IMO should take action to limit emissions, before regulation is imposed by regional blocs like the European Union or individual statesA session in late April of the IMO’s Maritime Environment Protection Committee agreed only to defer further discussion on emissions to its next session in October. That will be the last chance to come up with targets before the next round of global climate talks, COP-22, the following month in Marakesh“The failure to agree a process for emissions reduction puts significant pressure on generating a positive outcome,” said Alastair Fischbacher, head of the Sustainable Shipping Initiative, an industry association that promotes efficiency standards and includes the world’s largest container shipping company Maersk Line and huge agricultural shipper Cargill.“The shipping industry cannot go to COP-22 in Morocco without this. Not only will it damage the industry’s reputation, it also runs the risk of external regulators taking the matter into their own hands and circumnavigating the IMO, which no-one in the industry wants to see.”Peter Hinchliffe, secretary general of the International Chamber of Shipping, which represents more than 80 percent of the world’s merchant fleet, predicted the IMO would deliver a framework for CO2 cuts; the question is when.“It is the nature of international debate that sometimes it takes longer than some would wish,” he said. SPIRIT OF PARIS According to scenarios drawn up by the IMO, one of the most effective ways to slow the growth of emissions from shipping would be to take other steps across the wider economy to fight climate change, reducing demand for fossil fuel shipments. Oil, gas and coal now make up more than a third of tonnage shipped by sea, and IMO forecasts predict those volumes either to surge or shrink, depending on future action to achieve climate targets.But the IMO also says steps taken by the shipping industry with the encouragement of regulation, such as improving the efficiency of ships and changing engines to burn lower carbon-emitting fuels such as natural gas, can have a big impact. Its better-case scenarios include improvements that would see ships become 60 percent more efficient and a quarter of them shift to natural gas by 2050. Even under those optimistic conditions only one of its 16 scenarios forecasts total maritime emissions to fall by then.The European Commission estimates that air and marine transport, which now jointly account for 5 percent of global emissions, could contribute as much as a third of all emissions by 2050. Last month a group of European lawmakers urged the European Union to take tougher action on the two sectors. “There is no reasonable excuse to continue exempting aviation and shipping from the international and EU climate policies,” the lawmakers wrote. “Such growth (in emissions) will undermine reduction efforts by all countries and other sectors to limit warming to the 1.5/2°C agreed in Paris.”Those in favour of stronger targets say firm proposals are likely to be slow-moving through the IMO, given opposition from countries including India and Brazil. IMO Secretary-General Kitack Lim said it had reached approval for mandatory data collection of fuel consumption by ships, which would “provide a solid basis on which to consider … whether further measures may be required in future to mitigate GHG (greenhouse gas) emissions from shipping”.“It has been very encouraging to see states which had previously found it difficult to reach binding agreement on climate change measures bring the spirit of the Paris Agreement to IMO,” Lim said.Nevertheless, campaigners want quicker action. Bill Hemmings, of green group Transport & Environment, said the data collection initiative’s incremental approach was “a code word for ‘do nothing'”. Hemmings said some European lawmakers were likely to propose shipping be included in tougher EU targets.“That will focus IMO minds if it happens.”In October last year the European Commission called on the IMO to present measures to cut emissions by the end of 2016, which the shipping industry at the time said was “unrealistic”.An EU source said that although the Paris Agreement did not set a specific deadline, it was built on the basis that all sectors would have to contribute to nationally determined emissions targets from 2020. Therefore, the sooner the aviation and shipping sectors could act the better, the source said.Hinchliffe, of the International Chamber of Shipping, said the industry would support global action from the IMO but oppose unilateral steps by a regional bloc.“A regional mechanism would be inefficient and would likely inhibit shipping flagged in the region and would stand the risk of destabilising the trading balance that shipping provides.”Source: Reuters (By Jonathan Saul and Nina Chestney, Editing by Peter Graff)

SORRY FOR THE DELAY IN DISTRIBUTION YESTERDAY, ENCOUNTERED PROBLEMS THE

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Pre- and post-carriage costs become focus For US shippers, port-to-port spot container freight rates this year have only moved one way and that way was down. To be precise, our Hong Kong-Los Angeles Index did nudge up once in week 14, but the overall picture is that of steep decline: it started the year at $1,418 per 40ft and last week sat as low as $718 per 40ft, meaning it lost $700 or 49% of its value over the first 15 weeks of the year. Our monthly rate benchmarks followed a very similar pattern: spot freight rates from Shanghai to Los Angeles lost $670 per 40ft (40%) and from Shanghai to New York they lost $760 per 40ft (28%) between the beginning of January and the end of March.Strange then, that the intermodal “through rates”, which we started tracking in our Container Freight Rate Insight in January, do not follow suit: through rates from Shanghai to Chicago via LA-LB lost “only” $470 per 40ft (13%) while Shanghai to Toronto via New York lost “only” $570 per 40ft (16%). Clearly in these turbulent times, the shipping lines have ample incentives to sell these intermodal arrangements: they not only provide more stable revenue streams that add more contribution to cover overheads compared to port-to-port shipments, but they also enable them to better control the equipment flows and thereby balance equipment flows at optimal cost.But, as a shipper, you should ask yourself: could you be better off breaking the connection between the ocean and inland transportation parts, to take full advantage of keen pricing on the ocean part of intermodal moves? Source: Drewry

The ORALUNA in Le Havre – Photo : Fabian Montreuil ©

Hijacking and crew hostages In recent weeks, there have been a number of piracy incidents involving Member’s vessels which includes the hostage taking of crew. These incidents have predominantly occurred in south east Asia in the vicinity of the Sulu Sea in the south-western area of the Philippines although we have also seen increased piracy activity off the west coast of Africa.

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We urge Members to exercise due caution whilst navigating in these areas and would draw attention to previous bulletins on Piracy: Surge in piracy attacks (July 2014) and Piracy in southeast Asia (May 2015). Source: The Shipowners’ Club

No more graft here, Mombasa port new office declares

The Mombasa port’s new management has warned it will not condone graft. This follows reports implicating former top officials in corruption scandals. In February, several top officials, including former MD Gichiri Ndua, were sacked by the government over graft allegations. A government report had named several managers suspected of abetting corruption in procurement and manipulating systems, leading to massive revenue losses. Yesterday, acting MD Catherine Mturi said all officials and business players at the port have an obligation to exercise utmost integrity. “The port industry has its share of integrity issues. I want to be categorical that going forward it will not be business as usual and I wish to reaffirm that I will lead this war on corruption from the front,” she said. Mturi did not say how much money the port has lost through corruption deals. “Anyone found to be corrupt, including the business community, stakeholders and staff, regardless of their positions, will be dealt with in accordance with the law without fear or favour,” she said. During the February purge, Transport Cabinet Secretary James Macharia sacked the managers following an investigation that unearthed malpractices, including tax evasion and entry of contraband cargo. Those sacked alongside Ndua were operations manager Twalib Khamisi, Muthoni Gatere (legal services), Justus Nyarandi (corporate services) and Mohamed Morowa (head of security). Macharia said several staff at the Kenya Ports Authority had failed to perform their duties to stop or mitigate the possibility of KPA operations and delivery being compromised. Mturi said the KPA has had no incident of malpractices recently. “What we have heard are just industry rumours, but we are on the lookout. Whoever is found committing an offence will be dealt with,” she said.KPA, KRA bosses sacked in graft purge In February, top bosses at the Kenya Ports Authority and Kenya Revenue Authority in Mombasa were sent packing to clean the port of corruption. Senior port police officers were also reshuffled in the far-reaching purge announced by Interior Cabinet Secretary Joseph Nkaissery, his Transport counterpart, James Macharia, KRA Commissioner General John Njiraini and Inspector General of Police Joseph Boinnet. Source: The Star

BERGE STAHL LAUNCHED IN ROTTERDAM

On the open day at MBV Neptunus last Thursday we have launched our scale model of the BERGE STAHL With a length of more than 7.5 meter ths ship had made his maiden voyage on his own power She act almost like the real BERGE STAHL photo’s : Arie Tiele ©

The MSC Musica call kicks off navigation season in St. Petersburg Passenger Port

The 2016 summer navigation season was opened on May 5 2016 with arrival of MSC Musica (MSC Cruises) at the Passenger Port of St. Petersburg. The first cruise ship has on board 2,651 passengers, the port operator Marine Façade



said.MSC Cruises ranks among four largest cruise companies in the world, and a leader in the Mediterranean, South American and South African regionsArrival of next cruise ships is scheduled for May 7. The 2016 navigation season will be closed on October 11 with the call of AIDA Cruises' AIDAmar This year at least 12 vessels of the following cruise brands are expected to call at the port: Carnival Corporation, Viking Ocean Cruises, Global Cruise Lines Ltd., Royal Caribbean International and Celebrity Cruises, Sea Cloud Cruises GmbH, Pullmantur Cruises SL, TUI Cruises GmbH, Windstar Cruises, Hapag-Lloyd Kreuzfahrten GmbH. In the 2016 navigation period the Passenger Port of St. Petersburg will handle 218 ships and more than 460,000 passengers.JSC Passenger Port of St. Petersburg "Marine Façade" (owned by the City of St. Petersburg) is the largest passenger port in Russia. Construction of Marine Façade began in 2006. The port can accommodate cruise and ferry ships of up to 311 meters in length and a draft of up to 9 meters. The length and depth of new access channels are 10 km and 11 m, accordingly. The port operates seven piers. The quay wall length is 2,171.06 m. source: Portnews

Tripartite nations agree on sea patrols to check piracy, kidnappings

BY MERGAWATI ZULFAKAR Malaysia, the Philippines and Indonesia have adopted several measures, including conducting patrol in the maritime areas of “common concern,” amid a string of kidnappings of foreign citizens by militants. The foreign ministers and chiefs of defence forces, who met in Jogjakarta, Indonesia, agreed that the three countries establish a hotline to facilitate coordination during emergency situations and security threats.Indonesian Foreign Minister Retno Marsudi, Foreign Minister Datuk Seri Anifah Aman and Philippines Foreign Minister Jose Rene D.Almendras and chiefs of defence forces of Indonesia, Malaysia and the Philippines issued a joint declaration after the meeting.The ministers said they have instructed the relevant agencies of their countries to meet soonest and convene a regular meeting to implement and periodically review and formulate the standard operating procedures.They expressed concerns that the security challenges also undermine the confidence in trade and commerce, especially the movement of ships, goods and people in these areas. In a separate statement, Anifah said he expressed Malaysia’s concern over the kidnapping incidents.He conveyed Malaysia’s commitment to take all necessary measures to address the issue through cooperation with Indonesia and the Philippines.The meeting was hosted by Indonesia following a spate of kidnappings involving Indonesian and Malaysian sailors plying the international waters along the Philippines side of the border in three separate incidents between March 26 and April 8.Ten Indonesians were released several days ago after it was widely speculated that ransom was paid. Four more Indonesian and four Malaysian sailors are still being held. Source; The Star

ABP Staff Swap Desk For Decks As They Experience A Day On The High Seas

A group of lucky staff from ABP’s Humber ports were offered the chance to test their sea legs when they were given a training day by seafaring charity Maybe Sailing.Fifteen staff from across the four ports of Hull, Goole, Grimsby and Immingham set sail from Hull Marina out onto the Humber Estuary so they could learn how to crew the 80-foot gaff-rigged vessel.The training was given to the staff as a thank you for supporting the charity with free berthing and a charitable donation given to enable local schools to enjoy sailing days aboard Tall Ship Maybe.Rachel Addison, ABP Communications Manager Humber has been working with Maybe Sailing for the past 12 months to deliver a series of training days aimed at local schools.She said: “When we were first approached by the charity to help them provide a

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series of free sail training days to schools we were keen to do all we could to help. We are now in the planning stages for the 2016 season and hope to offer some training to schools in Grimsby and Hull.“We were thrilled when the team offered us a free day on the Humber as a thank you and I was inundated with requests for a place. Those who were fortunate enough to be drawn from the hat had a fantastic day learning about navigating and rigging and thoroughly enjoyed spending some quality time with their colleagues and the crew.”Frankie Hartwell is Maybe Sailing’s Marketing, PR and Education officer and she also crews when time allows.She said: “”It was great to be able to invite ABP staff on board and provide them with a taster of what sailing training is all about.“ABP has supported Maybe Sailing over the last few years and helped to increase the opportunities for young people across Humberside and NE Lincolnshire to take part in sail training experiences on board Tall Ship Maybe. This in turn has helped to engage young people with the Humber Estuary and understand the important part it plays in the economic development of the region.” Source: ABP

The AIDAPRima moored at the Cruise terminal in Rotterdam displaying an impressive light show last Thursday (Bevrijdingsdag) Photo : Hans van Overbeek ©

Less Financial Income from Panama Canal Predicted

The financial income from the Panama Canal to the public treasury for the period 2017-2021 will be 45.3 percent less than the initial evaluation with the expansion of the project, according to official figures analyzed today by the local media. The most recent projections of the Ministry of Economy and Finance (MEF) for the mentioned years were of 15 billion 303 million dollars for Canal income, but in a last adjustment that figure went down to eight billion 533 million, affirmed daily La Estrella in its Tuesday edition.The mentioned causes by the paper are the new macroeconomic global scenario, the salary increase demanded by workers and the comnpetition of the Suez Canal (managed by Egypt), together with the potential competitions which would represent the climate change with the opening of the North route and the Nicaragua Canal.Such facts coincide with appreciations made recently by economist Juan Jované, who asserted that the expansion of the canal, considered the key to ensure the growth of national economy, occurs in a situation that is not optimum because there exists a clear deceleration of the world trade of goods.The low oil prices incentivate sea routes without crossing the Panama Canal and together with other factors they will reduce by 50 million dollars the income of the route this year, reported last March the Panama Canal Authority (ACP in Spanish).That has an impact on competitiveness of the waterway, because we charge for passing and some shipping lines tell their clients they can take their cargo through theCape Horn (southern point of the continent), at a lower price although it takes 15 more days in arriving to its destination, explained the manager of the ACP, Jorge Quijano. Another element to contribute to less income for Panama will be the reduction by 15 centimeters in the draft (distance from the floating line to the bottom of the hull) of the ships making the transisthmic trip, obliged bu the consequences of the intense drought and high evaporation due to high temperatures.The exhaustion of the Panama economic model and the need for deep changes in the mediate future, are hypothesis presented by Jované in his last article The decline of a perverse experiment, published this week.He resumes this policy, applied after the invasion by the United States in 1989, in an indiscriminate external opening, unprotection of national production, attempt to grow guided



exclusively to the export of commercial, financial and transportation services, together with growth of the external debt. Source: Prensa Latina

Investment bank predicts end of overcapacity An investment bank’s equity analyst has speculated that overcapacity in the container shipping industry may be eliminated by mergers, acquisitions and alliance changes. With the announcement of the new Ocean Alliance, merger talks between Hapag-Lloyd and UASC and the increasing chances of a merger between Hanjin and Hyundai Merchant Marine, the market share of the biggest carriers may increase. If these mergers were to go ahead, David Kerstens, an equity analyst at Jefferies Investment Bank, estimates that the market share of the ten biggest carriers would be more than 70% of global capacity. Currently, it is around 65%. Kerstens said in a statement: “The container shipping industry is in turmoil, triggered by rock-bottom container freight rates and financial distress, leading to accelerating industry consolidation and a major reshuffling of alliances, potentially resulting in the elimination of industry overcapacity.” This turmoil could potentially result in the elimination of industry overcapacity, according to Kerstens. The comments were made as Kerstens recommended investors buy shares in the Maersk Group, thanks partially to a better-than-expected first quarter performance from Maersk Line, which managed to stay profitable due to cost-cutting measures. Maersk Line’s profit after tax fell by 95% to €32m (US$37m) in the first quarter of 2016, but this was better than the consensus predicted loss of €71m (US$82m). This performance was due to a 7% growth in volumes, which was 5% higher than generally expected. Low fuel prices also helped to keep costs down. Nevertheless, Kerstens is still predicting that Maersk Line will make a much lower profit in 2016 than 2015. It predicts profit after tax will be 30% lower, although it pointed out that this depends greatly on whether freight rates recover. APM Terminals’ performance, on the other hand, has been worse than expected. Profit after tax was down 39% in the first quarter, due to a 0.8% decline in throughput. This means that APM Terminals is now predicting a lower underlying result for 2016 than 2015, having previously predicted stability. Source: container management

Livestream moving of the bridge Muiderberg. Since a couple of weeks MeteoGroup is involved in a major project and today is the big day. The largest structure transported by mankind. A hige bridge of more than 200 mts and about 8400 tons of steel will be transported over 400 meters. This will take approx 6 hours. The bridge will be transported on multiple wheels to the new position (Sarens). The weather risk is 10m/s, the weather room has supported with a plume and last days with the bouwweer product. Nice to mention, the EPS presented this weather window already more than 10 days ago. (Of course still with a risk, but good enough to plan the transport with

convidence that it could go ahead.) Thanks to all colleagues of the weather room to prepare such a nice calm night to be able to transport the bridge. Via live stream this event can be monitored. CLICK AT THE PHOTO ABOVE

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Officers formed 'human chain' to unload cocaine from tug

The jury in an international drugs smuggling trial has heard how officers formed a human chain to unload 129 bales of cocaine from a tug boat. National Crime Agency officer Alistair Gow was giving evidence at the trial of nine Turkish sailors who deny smuggling cocaine. The High Court in Glasgow heard on Thursday that the tug MV Hamal was boarded in international waters 100 miles out and then brought back to Aberdeen harbour, where the huge quantity of the drug was found hidden in a ballast tank.Mr Gow told prosecutor Ashley

Edwards that two forensic tents were set up on the deck of the ship and as the 129 bales were taken out of their hiding place they were put into plastic bags and labelled.He said: "They were coming up from the hatch and were being handed from officer to officer. Each bale was about 30 kilos in weight."This would mean the total weight of the 129 bales was 3870kg.When asked how long it took to remove all the bales Mr Gow said: "It was over a couple of days they were removed."The court heard a crane was brought to the quayside to move the bales off the ship.Mr Gow said: "The bales were put inside tarpaulin and netting and lifted on to the quay where there was a van waiting to transport them."The nine-strong Turkish crew of the MV Hamal are on trial accused of being involved in an international drug-smuggling operation by smuggling cocaine from Istanbul in Turkey via Tenerife in the Canary Islands, Spain, to South America, and then to the North Sea between February and April 2015.They are further alleged to have been concerned in the supply of the class A drug between April 21 and 23.Kayacan Dalgakiran, 64; Mustafa Guven, 48; Mustafa Ceviz, 55; Umit Colakel, 39; Ibrahim Dag, 48; Mumin Sahin, 46; Emin Ozmen, 51; Abdulkadir Cirik, 32, and Muhammet Seckin, 27, deny the charges against them. The trial before Judge Lord Kinclaven continues. Source; STV

Maersk loses out in harsh market conditions Written by Ines Nastali

With oil prices stabilising around the $40 per barrel mark, Maersk has adjusted to a new normal. The group delivered a profit of $224 million in the first quarter of this year it states in its interim report for this period. Compared to the same time last year, profit nosedived by over 90%. Still, amid difficult market conditions, six of the group’s eight businesses returned a profit, namely APM Terminals, Maersk Drilling, APM Shipping Services including Maersk Tankers, Svitzer and Damco.Maersk Oil made a loss of $29 million and Maersk Supply Service went $2 million into the red. To counter loss, Maersk Oil has implemented a salary freeze in 2016, reduced travel expenses and initiated the outsourcing of administrative functions to India.Even though the oil market is unfavourable at the moment, investment continues. “In Norway, Maersk Oil participates in the development of the Johan Sverdrup oil field and in the UK, Maersk Oil as the operator is developing the Culzean gas field. Both projects are on track within budget and according to plans,” the report states.Meanwhile, “Maersk Line improved utilisation, lowered unit costs by 16% year on year and defended their market leading position, delivering an underlying profit of $32 million,” the company states in its interim report for the first quarter.While making a profit, APM Terminals battled weak demand, especially in Europe, slowing growth in China, and the low oil price. Being largely dependent on raw material exports, many economies in Latin America and West Africa where APM Terminals has significant activities, continue to see declining growth and foreign trade. Source: imarest

Colombian Sailor Found Alive After Two Months Adrift, U.S. Coast Guard Honolulu Says

by ALEXANDER SMITH A sailor has been rescued after spending two harrowing months lost at sea, witnessing the deaths of his three shipmates and forced to eat seagulls for survival. The 29-year-old Colombian sailor was picked up some 3,500 miles from home — far out in a desolate stretch of the Pacific Ocean, according to the U.S. Coast Guard.The Colombian



mariner speaks from Honolulu on Wednesday. U.S. Coast Guard District 14He arrived on dry land in Honolulu on Wednesday, it added, saying the sailor was "in good condition" and "happy" to have survived.The sailor told officials

his group of four set off from Colombia more than two months ago.When the engine of their 23-foot skiff failed they found themselves adrift and were forced to eat fish and seagulls to stay alive, he told the Coast Guard.His boat was spotted on April 26 some 2,150 miles southeast of Hawaii by a 618-foot cargo ship, the Panama-flagged Nikkei Verde."This mariner ... is very fortunate the crew of the Nikkei Verde happened upon him, as the area he was in is not heavily trafficked," said Lt. Cmdr. John MacKinnon with the Coast Guard in Honolulu.The Coast Guard did not name the mariner but said from there he was taken closer to Hawaii and transferred to a 45-foot Coast Guard vessel before taken ashore to Honolulu.The bodies of his compatriots were not aboard the tiny vessel when it was found but the sole survivor was able to produce their passports, the Coast Guard said in a statement.The Colombian mariner lost at sea for two months climbs from the cargo ship Nikkei Verde onto a U.S. Coast Guard vessel. U.S. Coast Guard District 14"He thanks the people that picked him up, for rescuing him," said a translator, speaking for the surviving mariner in Hawaii. "He feels very bad for what happened to his friends that he was on board with. He said he would have loved it if his friends from the boat would have been here with him."The man was handed over to the Colombian consulate Wednesday, the Coast Guard told NBC News. The authority said it

was not investigating further as neither the boat nor the individuals involved were American. Source; nbcnews

The JAEGER ARROW seen inbound for Rotterdam Photo : Arie van Oudheusden ©

Business diversification sees POSH and Sembcorp Industries book first quarter profits

By : Titus Zheng Singapore-listed offshore firms PACC Offshore Services Holdings (POSH) and Sembcorp Industries (SCI) have both posted decent net profits in the first quarter ended 31 March 2016 (1Q16), amid a challenging macro-environment.

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During 1Q16, POSH booked a net profit of USD4.4 million against profits of USD21,000 in 1Q15, while its revenue grew 2% to USD58.7 million from USD57.6 million in 1Q15. The increase was attributed to the higher contribution from its offshore accommodation (OA) segment of USD28.4 million in 1Q16 as compared with USD13.1 million in 1Q15. “Despite all our business segments being affected by the negative impact of current market conditions, the OA segment performed relatively well. Our financial performance in 1Q16 reflects the actions taken by the company to diversify,” said Gerald Seow, CEO of POSH.On the other hand, SCI recorded a lower net profit of SGD131 million (USD96.55 million) in 1Q16, down 30.2% year on year (y/y), with a turnover of SGD1.9 billion, up 18.9% against turnover of SGD2.4 billion in 1Q15. In 1Q16, SCI’s utilities business accounted for nearly two thirds (72%) of its net profit, an increase from 57% in 1Q15.Meanwhile, profit generated from the company’s marine segment shrank to 28% in 1Q16 from 43% in 1Q15.Both companies cited business diversification as the key to staying afloat in the volatile offshore market. For instance, SCI has diversified its marine business segment into LNG capabilities such as its Gravifloat designs, and holds patents for a suite of redeployable, modularised solutions based on its unique near-shore, gravity-based floating LNG terminal solutions. In addition, the company is also involved in the onshore and floating LNG business, such as Floating Storage and Regasification Unit (FSRUs), Floating liquefied natural gas (FLNG), and land terminals. “Sembcorp’s diversified portfolio in different businesses and geographies gives us strength and resilience as a group,” said Tang Kin Fei, group president and CEO of SCI.The company has also a strong pipeline of power utility facilities focused on growing markets such as China and India that are scheduled to come on-stream between 2016 and 2018.Likewise, POSH has also placed emphasis in venturing into new markets like the Middle East for their offshore supply vessel (OSV) fleet. The OSV market in the Middle East tends to fare better than other markets, owing to better demand conditions as compared to southeast Asia, where hundreds of OSVs were hard-pressed to save costs. “What made a difference [for POSH] was mainly the USD4.86 million share of joint ventures’ result in 1Q16 against the USD1.3 million loss in 1Q15. A key reason was the better performance of POSH Terasea, a collaboration with Ezion Holdings,” said Low Pei Han, investment analyst from OCBC Investment research.POSH Terasea previously secured towage and positioning services for the Prelude FLNG, the world’s largest offshore facility deployed in Browse Basin, Australia in January 2016.Meanwhile, SCI is shifting its utilities business towards becoming the company’s main earnings driver, with less dependence on its marine business segment. “Sembcorp Industries is expected to deliver four utilities projects in 2016, namely a power plant in India, waste-to-energy facilities in the UK and Singapore, as well as an integrated water management project in China,” said a Singapore-based analyst from RHB bank. “We think the current weakness in [SCI’s] marine business would be partially cushioned by its utilities segment,” added the analyst.Nevertheless, SCI still has an impressive order book for its marine business, which is worth SGD9.7 billion as at 27 April 2016. The order book is composed of 46% drillships, 17% offshore platforms, 17% floaters, 15% semi-submersibles, and 5% jack-ups.Furthermore, SCI can also rely on its urban development business segment if its marine segment continues to fall into mediocrity. The company has a net order book of 236 ha for urban development as of March 2016. 81% of the urban development is composed of industrial and business development, while the remainder is expected to be developed into commercial and residential areas.Both SCI and POSH agree that the current tough market condition will last throughout 2016, but with the right business acumen in diversifying commercial units across different geographical regions, a better chance of survival can be ensured, creating a path for long-term growth. Source: fairplay.ihs

Helicopter Operator CHC Group Files for Bankruptcy Protection

Filing comes days after fatal crash of firm’s helicopter in Norway By JACQUELINE PALANK and DOUG CAMERON

Oil-field services company CHC Group Ltd. on Thursday filed for chapter 11 bankruptcy protection with plans to slash its debt and trim its fleet of helicopters amid the global energy downturn. The filing came just days after a fatal crash of one of its helicopters in Norway forced the company to ground much of its fleet.CHC is now asking the U.S. Bankruptcy Court in Dallas, to let it drop at least 90 aircraft from its fleet of about 230 helicopters, most of which are leased, as part of a broader restructuring that will target more than $2 billion in debt.The Canadian company said it can “no longer bear the weight” of its burdensome debt structure and expensive fleet amid declining oil prices and the resulting drop in demand for its services.The filing will give the company a “much needed breathing spell” as it continues restructuring talks with key creditors, Chief Restructuring Officer Robert A. Del Genio said in court papers.CHC is one of two global companies alongside Houston-based Bristow Group Inc. that dominate the business of ferrying workers and cargo offshore for energy companies and have been forced to shrink and cut costs.A boom in demand for flying when oil prices passed $100 a barrel drove rapid expansion in the sector and lured companies such



as General Electric Co. into a nascent business of leasing helicopters for energy companies. Now, industry executives estimate that a fifth of the global fleet of helicopters is idle or underused.Court papers show that beyond the 90 aircraft CHC is seeking to unload in bankruptcy, the company wants to get its fleet down to 75 helicopters by next year. The company had $237 million in firm orders for new helicopters and $245 million in options, though like its peers it had been negotiating to defer deals or return aircraft early.CHC had been exploring a debt restructuring well before the April 29 crash of an Airbus Group SE EC225 helicopter. The accident killed the two pilots and 11 oil workers flying back to the Norwegian mainland, and led regulators in the U.K. and Norway to ground the EC225, a workhorse helicopter with a history of technical problems. CHC, which is based in Richmond, British Columbia, has struggled under successive private-equity owners to restructure its debt, which court filings show stood at $2.19 billion against assets of $2.17 billion as of Jan. 31. The company’s cash started dwindling as demand for flying decreased, and in January, the company sought to boost liquidity by drawing down the remaining $233.4 million on its revolving loan.On April 15, it skipped a $46 million interest payment on approximately $1 billion in bonds, triggering a 30-day grace period to make the payment and avoid default.CHC says it has enough cash on hand—about $277 million—to fund its continued operations during the chapter 11 case. The company is seeking immediate bankruptcy-court approval to access the cash, some of which secures its creditors’ claims, and says it expects to spend nearly $50 million over the next four weeks.CHC, which went public two years ago, has had its market value wiped out after peaking at $1.3 billion, and the company was delisted from the New York Stock Exchange in January.First Reserve Corp., a specialist private-equity firm in the energy sector, bought CHC in 2008 in a deal that valued the company at $2.9 billion.According to bankruptcy filings, First Reserve holds a 28.1% stake in CHC, while fellow private-equity backer Clayton Dubilier & Rice holds enough preferred shares that, if converted to common stock, would give it a 52.2% stake.Lawyers at Weil Gotshal & Manges and Debevoise & Plimpton are representing the company, which is also working with financial advisers at Seabury Advisors, PJT Partners and CDG Group. Source: the Wall Street journal

Vietnamese ships to get piracy warnings The Vietnam Maritime Administration has asked provincial port authorities to inform ship owners and management companies of acts of piracy in the waters off east Sabah, Malaysia, and southern Philippines. Vietnamese ships to get piracy warnings, social news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, Vietnam net news, Vietnam latest news, vn news, Vietnam breaking newsThe request was made after the administration received a special report from the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP).The administration asked the ship owners and companies that manage and exploit vessels to adopt a maritime security plan approved by the Vietnam Register, paying particular attention to the ReCAAP’s recommendations to ensure that no problems befall Vietnamese ships working in international waters, especially in the two danger zones in Malaysia and the Philippines.Previously, between March 26 and April 15, a source at ReCAAP in the Philippines spoke of three cases related to seamen being kidnapped in the waters off east Sabah in Malaysia and southern Philippines. The cases involved the Brahma 12 ship on March 26, the Massive 6 ship on April 1 and the Henry ship on April 15.On March 26, the Malaysian Brahma 12, transporting 7,000 tonnes of coal, was attacked by 17 pirates with guns, travelling on a high-speed ship. They kidnapped all 10 crewmembers and demanded a ransom of US$1.07 million.On April 1, the Malaysian Massive 6, with nine seamen onboard, were attacked by eight pirates with guns. Four of the crewmembers were kidnapped.On April 15, the Indonesian Henry was attacked by a band of pirates. One of the seamen was injured, while four others were kidnapped.To prevent similar cases, the Malaysian government has temporarily banned travelling on the trade route between east Sabah and the southern Philippines. The concerned organisations from the two countries will meet to discuss preventive measures for the problem.The ReCAAP encouraged the authorities of coastal countries to improve supervision and tighten patrols. Ship owners and management companies should be vigilant while working in these areas. The Philippines’ coastal protection organisation has joined hands with the country’s local intelligence agency to collect more information on the ftwonline case and to provide updates on the condition of the kidnapped seamen. Source: english.vietnamnet.

China says S.China Sea criticism could rebound like coiled spring By Ben Blanchard and John Ruwitch

International criticism of China over the disputed South China Sea will rebound like a coiled spring, a Chinese diplomat said on Friday, as a U.S. warship visited Shanghai against a backdrop of rising tension in the region.China claims almost all of the energy-rich South China Sea, through which more than $5 trillion of trade passes each year. The Philippines, Brunei, Vietnam, Malaysia and Taiwan have overlapping claims China's increasingly assertive moves in the



waters, including building artificial islands and air strips, have rattled nerves, with the Group of Seven (G7) advanced economies warning last month they opposed provocation there.Ouyang Yujing, director-general of Chinese Foreign Ministry's Department of Boundary and Ocean Affairs, said China took note of the criticism."Of course we're willing to take on board constructive comments and criticism by the relevant countries," Ouyang told a news briefing."But if they are aimed at putting pressure on China or blackening its name, then you can view it like a spring, which has an applied force and a counterforce. The more the pressure, the greater the reaction.China has been stepping up its rhetoric ahead of a ruling by the Permanent Court of Arbitration in The Hague on a case the Philippines has brought against China's claims in the sea. U.S. officials have expressed concern the ruling, expected soon, could prompt China to declare an air defence identification zone, as it did over the East China Sea in 2013. China has neither confirmed nor denied it could do that.The ruling is expected to favour the Philippines and risks raising tension because China rejects the court's authority to hear the case, even though it is a signatory of the U.N. Convention on the Law of the Sea under which it is being heard.China has been particularly angered by what it sees as interference by the United States, whose military has carried out "freedom of navigation" patrols through the sea. Last Friday, the U.S. Defense Department said China had denied a request for the 7th Fleet's aircraft carrier strike group, to visit Hong Kong.Still, China has allowed the 7th Fleet's command ship, the USS Blue Ridge, to visit Shanghai, where on Friday, Joseph Aucoin, commander of the U.S. 7th Fleet, declined to speculate on the reason for the cancellation of the Hong Kong visit."I'm not going to let that get in the way of fostering better relations with the country and especially with their navy," he told reporters at Shanghai's dock. Source: reuters (Editing by Paul Tait, Robert Birsel)

Crewless ship washes up in Liberia A crewless, Panama-flagged, product tanker has washed ashore outside of Robertsport in Liberia, World Maritime News reports.The product tanker, that was discovered on May 4, has been identified as Tamaya 1, a 1441 DWT that was built in 1980.Industry sources have blamed a possible pirate attack for the disappearance of the crew. Source : ftwonline

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NAVY NEWS Chinese naval group heads to disputed South

China Sea for combat drill Chinese naval deployment aimed at matching US show of force in the region

By; Liu Zhen The Chinese navy has begun a comprehensive combat drill in the South China Sea involving its most advanced warships amid rising tensions with the United States over the disputed waters. A naval group of two destroyers, two frigates, and a supply ship left Sanya, Hainan province, on Wednesday for drills analysts said were aimed at boosting combat readiness. Another -destroyer will join them soon.Each ship is carrying three helicopters and dozens of special forces troops and will sail to the South China Sea, the east Indian Ocean and the west Pacific, according to state-run CCTV. Tensions in the South China Sea have been rising, with rival claimant the Philippines filing an arbitration case

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against China in the Hague. A decision on the case, which China said it will not recognize, is due by the end of June at the latest. The drills involve troops stationed on the Paracel and Spratly islands, and forces of the North Sea Fleet, the report said, describing it as an annual exercise.One of the destroyers is the -Hefei, the navy’s newest Type 052D guided-missile destroyer, featuring advanced radar, missiles and a stealth system that entered service in December.A third destroyer, Type 052C Lanzhou, will join the group after a joint counterterrorism exercise with Asean and other countries near Brunei and Singapore. Lanzhou last week had a “friendly encounter” with the strike group of aircraft carrier USS John C. Stennis, one day after the American ship was denied permission to dock in Hong Kong, the website of the PLA Daily reported. Other ships include Type 052B destroyer Guangzhou, Type 054A frigates Sanya and Yulin, and the supply ship Honghu. China risks damaging international reputation if it rejects tribunal ruling on South China Sea disputes, US warns“China’s best warships will be deployed in the South Sea Fleet as a response to the US military -activities, although both sides will carefully avoid any friction,” Ni Lexiong, a Shanghai-based military commentator, said. “It a demonstration of muscle.The US has stepped up military deployment in the region. Last month, US Secretary of Defence Ashton Carter flew to the USS John C. Stennis for a two-hour visit as it sailed 70 miles west of the Philippines island of Luzon.Xu Guangyu, a senior researcher at the China Arms Control and Disarmament Association, said more drills were likely. “New ships need to be tested in real-sea experience, and a combat group needs to practise command, coordination and teamwork,” Xu said.There was room for speculation China was preparing an -aircraft carrier combat group, Xu said, as the ships were a standard combination for escorting a -carrier. The PLA Navy had been practising operations with its first carrier, the Liaoning, and work on the main body of a second carrier was expected to be complete this year, Kanwa Asian Defence reported. Source ; Southe China Morning Post

Russian Submarine Allegedly Collided With Polish Sub Gets Back to Home Yard

The diesel electric submarine Krasnodar that was earlier blamed by media for collision with a Polish sub in the Baltic Sea has just returned to the manufacturing shipyard, Admiralteyskie Verfi (St. Petersburg). The Russian submarine entered the Neva River on Wednesday, May 4, being escorted by two Russian Navy’s tugs. According to the daily ships traffic schedule provided by the port of St. Petersburg, Krasnodar has

arrived at her home shipyard from Kronshtadt, being supported by RB-20 and RB-27 harbor tugs. As was revealed by own sources of online Central Navy Portal, the sub passed the Kanonersky Island and entered the Neva mouth at 9 am. The shipyard’s authorities declined to comment the reason for the submarine’s return. Significantly, Krasnodar called at Kronshtadt heading from the Baltic Sea on Monday, May 2. The cruise was assisted by harbor tugs RB-250 and RB-27 registered in the Leningrad Naval Base. The sea-going tug Viktor Konetsky returned to Kronshtadt along with the submarine. According to media reports, the ship was observed near Latvian territorial waters on April 30. Viktor Konetsky accompanied a Kilo-class submarine; Russia’s newest Project 636.3 diesel subs like Krasnodar are often referred to that class, too (on NATO classification – Improved Kilo). Earlier on, there were reports in the Russian press about a collision between the Russian submarine Krasnodar and the Polish one named Orzeł. Military spokesmen of the both countries rebutted that information; however, the Russian Navy officials specified that a “navigation incident” did happen though. Source ; mil.today

Russia strengthens permanent naval presence in Mediterranean Sea

A patrol ship of the Russian Black Sea Fleet set off for a journey to the Mediterranean Sea to enlarge the group of the Russian Navy in the region, representative of the Black Sea Fleet of the Russian Federation, Vyacheslav Trukhachev said. The ship, called Ladny, departed from the port of Sevastopol to join the permanent group of Russian vessels in



the Mediterranean Sea, the official added. Currently, the permanent group of Russian vessels in the Mediterranean Sea consists of more than a dozen warships and support vessels of the Pacific, Black Sea and Northern fleets. Earlier, it was reported that the ship of the Black Sea Fleet, the Smetlivy, was sent to the Mediterranean Sea. The Smetlivy is the oldest warship and the last "singing frigate" (large anti-submarine ship of Project 61) in the structure of the Russian Navy. The ship is equipped with missiles, mines and torpedoes, anti-submarine, avionics, radar and anti-aircraft weapons.At the beginning of 2016, missile cruiser the Varyag, the flagship of the Pacific Fleet, was sent to the Mediterranean Sea to perform combat missions in the region. Source; Pravdareport

SHIPYARD NEWS

ABG Shipyard shares plunge 20% on reports of failure of strategic sale

ABG Shipyard shares tumbled 20 per cent on reports that the promoters of the debt-laden ship maker may have to give up control of the company after they failed to bring in an investor, yet again. Vietnam-based Masan Group was earlier in talks with ABG Shipyard for a stake sale, but it is now understood that Masan has withdrawn interests in acquiring strategic stake in the company.The share price of the company plunged 19.97 per cent to Rs 30.65 on Friday.ABG Shipyard in a clarification to BSE said, “We would like to clarify that the company along with the lenders is exploring the possibility of bringing in a strategic investor and discussions are going on with several parties. However, we have still not reached the stage of any agreement which would warrant us to disclose to the stock exchanges.” In the past one year, the share price of ABG Shipyard tanked 80.95 per cent to Rs 38.30 till May 5, whereas BSE Sensex fell 8 per cent during the same period source ; financialexpress

Russian shipyard to put afloat new sub for Black Sea Fleet on May 31

The sixth Project 636.3 diesel-electric submarine Kolpino designed for the Russian Black Sea Fleet will be put afloat in St. Petersburg on May 31, a source says

ST. PETERSBURG, May 5. /TASS /. The sixth Project 636.3 diesel-electric submarine Kolpino designed for the Russian Black Sea Fleet will be put afloat in St. Petersburg on May 31, a source in the Navy Main Command told TASS on Thursday "The submarine Kolpino is set to be floated out on May 31," the source said. Russia’s United Ship-Building Corporation told TASS earlier that the submarine is expected to be put afloat in May. However, the corporation did not specify the exact date.In all, the Russian Black Sea Fleet is expected to receive six Project 636.3 (Varshavyanka-class) diesel-electric submarines. The submarines developed by the Rubin Design Bureau are under construction at the Admiralty Wharves Shipyard in St. Petersburg. The fifth Project 636.3 submarine Veliky Novgorod designed for the Black Sea Fleet was floated out on March 18. Both Kolpino and Veliky Novgorod submarines will be delivered to the Russian Navy before the end of 2016. As of today, the Russian Navy operates four Project 636.3 submarines, the Novorossiysk, the Rostov-on-Don, the Stary Oskol and the Krasnodar. In late 2015, the submarine Rostov-on-Don launched Kalibr cruise missiles from the Mediterranean Sea to destroy facilities of the Islamic State terrorist organization in Syria. Source ; tass

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Tema Shipyard workers demand dismissal of MD

Senior and Junior Staff Association of PSC Tema Shipyard Limited have passionately appealed to President John Dramani Mahama to personally intervene to impress upon the Managing Director (MD) of the company, Mr. HRT Ali Tunde, to resign from his post.The aggrieved workers also called on the president to completely dissolve the board of the company (PSC Tema Shipyard Limited) as the best way out to make the company survive. Consequently, the workers gave President Mahama a 14-day ultimatum to fire the embattled Mr. Ali Tunde as well as dissolve the board of PSC Tema Shipyard Limited or else they will “advise” themselves again.This was part of a resolution following a massive demonstration by thousands of the workers of PSC Tema Shipyard Limited in Tema yesterday.The demonstrators chanted war songs during the peaceful walk, holding placards with inscriptions such as “dissolve Tema Shipyard board; Shipyard workers are in serious economic hardship due to board bad policies; customers are running from Shipyard; no salary increment for the past three years; from frying pan to fire and Mr. Ali Tunde must go now,” among others.Speaking in an interview with Today, the workers union of Tema Shipyard complained that the company yard has now become a graveyard.According to them, the MD, together with board members, have brought the company to a very “hopeless” state, a situation which has made the company cash-trap.Thus, they called on President Dramani Mahama to save the company from collapsing.Speaker-after-speaker stated that there had not been any serious work since 2013 when Mr. Ali Tunde took office due to some policies they described as “hard killer policies.”In a seventeen paragraph letter to the Minister of Transport, Mr. Fifi Fiavi Kwettey, datedWednesday May 3, 2016 the workers described the current performance of PSC Tema Shipyard, under the stewardship of Mr. Ali Tunde, as “woeful.”The letter, which is in possession of Today, went on to state that Mr. Ali Tunde has purchased a brand new Toyota Land cruiser V8 for himself at a cost of US$106.000 in connivance with his head of finance who is not qualified to authorise the payment of such amount.It continued that the MD also renovated and has expanded the Chief Executive Officer’s (CEO’s) office and has moved in, leaving his own office vacant.The letter also makes reference to earlier letters which were sent to the Ministry of Transport on April 28, 2015, and September 4, 2015, which demanded Mr. Ali to tender in his resignation letter to the Ministry of Transport.But, his resignation letter was rejected by the board chairman and was asked to resume office. “Today, the Tema Shipyard is cash-trap, only surviving on deposits from clients. The shipyard has no money of its own,” stated the letter.For his part, Chairman of the Senior Staff Association of PSC Tema Shipyard, Mr. Michael Ofori Frimpong, told Today that “we cannot dress and come and sit at the shipyard without working“But MD, Mr. Ali, told us we are being paid for coming to work without working and is not our problem,” Mr. Frimpong noted.When contacted by Today to seek clarification on the matter, Mr. Ali Tunde simply said: “I cannot comment on the issue now.”Meanwhile, Today can confirm that the Secretary of the Senior Staff Association of PSC Tema Shipyard, Samuel Ayensu and Chairman of the Association, Michael Ofori Frimpong, were yesterday given dismissal letters.The paper learnt that the company took the action following the two senior staff’s participation in the protest.Source: Ghanaweb

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The diving support vessels CONSTRUCTOR and EDT PROTEA, managed by Boskalis, moored at the Nieuwediepkade

in the seaport of Den Helder, the Netherlands. Photo ; Paul Schaap ©

Philippines: Jan.-Feb. port cargo volume rises amid jump in international trade

Total cargo volume reached 34.672-million metric tons (MMT) as of end February, from the 30.645 MMT seen in the same period last year, data from the Philippine Ports Authority (PPA) showed. Broken down, domestic cargo throughput inched up by 7.73% while foreign cargo volume jumped by 18.1%. “The strong performance of imports that penciled a growth of 19.61% to 12.893 MMT and the export volume that rose 15% propelled the huge showing of the sector,” the agency explained. The ports of Dapitan, Marquez, Nasipit and Limay saw the highest growth rates in cargo volume at 29.78%, 95.51%, 93.57%, and 63.79%, respectively.Meanwhile, containerized cargo volume edged up by 5.23% to 958,628 twenty-foot equivalent units (TEUs), from 910,955 TEUs previously.Broken down, containers for domestic trade improved by 5.3% to 374,978 TEUs, and those processed for foreign trade expanded by 5.19% to 583,650 TEUs in the first two months.“As expected, Manila’s North Harbor port continues to rank first in terms of volume of domestic containerized cargo handled during the period with 172,694 TEUs,” said PPA Officer-in-Charge Raul T. Santos.The Manila International Container Terminal continued to handle the largest volume of foreign containerized cargo with 328,309 TEUs, followed by South Harbor with 150,422 TEUs.“Moreover, private ports handled 20.16 MMT or 58.14% of the total cargo volume nationwide while government ports accounted for 14.51 MMT or 41.86%,” Mr. Santos said.Ship calls in the same period increased by 14.27% to 68,209 in the first two months. Domestic and foreign ship calls went up by 13.99% and 26.34%, respectively.Passenger volume likewise grew by 11.56% to 10.20 million. Source: BWOnline

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The UNION FIGHTER towing th SMIT BARGE 11 in the MOHO Nord Field, Congo.

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B O E K B E S P R E K I N G Door : Frank NEYTS

“Holland-Amerika Lijn” Bij uitgeverij Walburg Pers verscheen net “Holland-Amerika Lijn. Geschiedenis van een rederij”. Nico Guns tekende als auteur. De geschiedenis van de “Holland-Amerika Lijn” is een verhaal vol van ups en downs, dat zich laat lezen als een spannende roman. Rotterdam was meer dan een eeuw de trotse thuishaven van deze rederij; aan de Wilhelminakade bepaalden de drijvende paleizen met hun geel-groen-witte schoorstenen het beeld van de Maasstad. Vanaf de oprichting in 1873 tot ver in de twintigste eeuw verscheepte de Nederlandse HAL-vloot miljoenen passagiers en een kleine miljard ton lading. Nog steeds spreekt de legendarische rederij, die uitgroeide tot een internationaal vermaard cruisebedrijf, tot de verbeelding van velen.Iedereen kent de beroemde schepen als de Statendam en de Rotterdam. Legendarisch is het geallieerde troepentransport van de Nieuw Amsterdam, die zo snel voer, dat geen enkele U-boot haar te pakken kreeg. Vele emigranten staken met de HAL de Atlantische Oceaan over, om een nieuw bestaan op te bouwen in het land van de onbegrensde mogelijkheden. Het vrachtvervoer tussen West-Europa en Amerika, met schepen als de Diemerdijk en de Kinderdijk, nam in de loop der tijd een hoge vlucht en droeg sterk bij aan de groei van de rederij en de welvaart van Nederland. In dit rijk geïllustreerde boek, dat met vele details is verlevendigd, kan iedereen volop genieten van de grandeur, de luxe en de nostalgie van de gerenommeerde HAL-rederij. Een compleet naslagwerk voor iedereen die belangstelling heeft voor de uitermate boeiende historie van de glorierijke Nederlandse koopvaardij. “Holland-Amerika Lijn” (ISBN 9 789462 490413) telt 143 pagina’s, werd als hardback uitgegeven. Het boek kost 29.95 euro. Aankopen kan via de boekhandel of rechtstreeks bij Uitgeversmaatschappij Walburg Pers, Postbus 4159, 7200BD Zutphen. Tel. +32(0)575.510522, Fax


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