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Number 013 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Wednesday 13-01-2016

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

The 280 ton BP HAVILA JUPITER alongside the ANUKET CORAL.

Photo : Arnoud Kisjes ©

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EVENTS, INCIDENTS & OPERATIONS

The Ecuadorian Sail training ship GUAYAS departing Sydney bound Wellington. She sailed from Guayaquil on the 12 May 2015 on an around the world voyage and is expected complete the voyage in early March. She was

escorted out of the harbour by the Sydney Heritage Fleet’s JAMES CRAIG and the HMB ENDEAVOUR. Photo: IAN EDWARDS - www.shiphoto.com.au

Shipowners call for better European port reception facilities

European shipowners have issued a position paper on the upcoming revision of the Port Reception Facilities (PRF) Directive adopted in 2000 as a reaction to the recently published ‘inception Impact Assessment’ by the European

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Commission. In the paper, the shipping industry calls among others for adequate and sufficient port reception facilities for ship-generated waste and harmful cargo residues, a more transparent and fair fee system as well as an efficient monitoring and enforcement mechanism.The PRF Directive transposes requirements of the MARPOL Convention into EU law. Its stated objective is to reduce the discharge of ship-generated waste and cargo residues at sea by requiring Member States to ensure that reception facilities are available in ports so as to collect these types of waste. Unfortunately, this obligation is not fulfilled, as there is a lack of adequate and sufficient facilities in EU ports, prompting the Commission to revise the DirectiveMoreover, the fees charged by some ports are neither transparent nor, in some cases, fair. A reasonable and functional fee system is required, fulfilling some minimum requirements and giving a fair incentive to the shipowners to deliver waste ashore.“For the Directive to be effective, adequate port reception facilities must be available in EU ports. These facilities must also be able to handle new types of waste resulting from stricter environmental requirements such as ballast water and scrubber waste” commented Patrick Verhoeven, ECSA Secretary-General“The next step is to ensure that the fee paid to the port of call is structured in such a way that it encourages shipowners to deliver ship’s waste to the appropriate facility”European shipowners also call for a more pragmatic approach on the issue of waste disposal from ships. Ships engaged in short sea shipping i.e. travelling short distances and calling frequently at EU ports as well as ships with enough storage capacit do not need to dispose of their waste at every single port call. Therefore the revised PRF Directive should clarify the exceptions & exemptions regime by offering more flexibility to the shipowners without endangering the goals of the PRF Directive.Commenting on the implementation of the Directive, Benoit Loicq, Director of Maritime Safety and Environment at ECSA said: “The monitoring and enforcement mechanism needs to be efficient. It should be based on inspections but also on an electronic system that will allow shipowners to report inadequacies of PRF but also receive information on the availability of PRF before calling at an EU port”. Source : safety4sea

Interesting day in Sydney just after Guayas sailed the Dockwise vessel YACHT EXPRESS arrived from Golfito, and

proceded to the anorage to handle Super yachts over the next few days. Her next port is Auckland. Photo: Ian Edwards- www.shiphoto.com.au

Vintage specialist Hong Sheng Da snaps up elderly Korean panamax

Sources tell Splash that China’s Hong Sheng Da Shipmanagement has just picked up the 1999-built panamax bulker DEEP SEAS for $2.9m from Greece’s Paragon Shipping. The sale appears to be a bargain, as online portal VesselsValue.com values the ship half a million more. Little is known about the shy player. Hong Sheng Da has been adding a little more than one ship annually into its fleet list since its entry on the international shipping scene around the year 2000. The majority of the ships are panamaxes and already about half off the ships have been sent to the

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breakers.The seller NASDAQ-listed Paragon Shipping sent out a release about the sale of another similar aged panamax bulker, KIND SEAS, for $3.5m.The net proceeds from the Japan-built bulker’s sale will be used to make an immediate prepayment of Paragon’s loan facility with the Bank of Ireland. Source: Splash 24/7

The tug ISA operating off Terschelling Photo : Flying Focus Aerial Photography www.flyingfocus.nl ©

BOP FAILURE ON NEW SONGA OFFSHORE DRILLING RIG

A BOP failure has been reported on a Songa Offshore drilling rig, the SONGA ENDURANCE, as it prepared to drill its first oil well offshore Norway. Songa Offshore announced the news Monday January 11th saying: “While performing a final test on location, the rig experienced BOP equipment failure.”The failure occurred during final testing of the BOP, prior to starting the drilling rig’s first well, on an 8 year contract with Norwegian state major Statoil. According to the Norwegian – Cypriot offshore drilling contractor the root cause of the failure, has been identified and, is currently being repaired on location from parts onboard available to the crew.The new build SONGA ENDURANCE started operations for Statoil, on December 31st 2015, after signing a contract for 8 years that will see it work exclusively in the firm’s giant Troll field offshore Norway. The SONGA ENDURANCE is a semisubmersible CAT D offshore drilling rig delivered, by Daewoo Shipbuilding and Marine Engineering (DSME), in Korea 2015.Songa and DSME have been in a bitter legal dispute, over escalating costs in relations to the drilling rig’s build, since its delivery last year.DMSE initially hit Songa with a US$150 million claim in November, alleging that costs had spiralled from the rigs initial estimates due to extras ordered by Songa.The Korean firm then hit Songa a week later for a further US$22 million claim for the ‘repayment of liquidated damages’Songa Offshore refuted the claim, saying that it was: ’conducting a full legal review of the project and its position; finding evidence of default by DSME during the engineering and construction of each of the four Cat D units.’ DSME have since delivered a further CAT D rig to Songa, the Songa Encourage- the firm’s third CAT D classified driller. SONGA ENCOURAGE is currently on route from the Korean shipyard to Naroway having left Korea on December 16th 2015. Source: offshorepost

Oil Risks Revealed At Maersk As Nordea Warns Of `Toxic Cocktail’

A.P. Moeller-Maersk A/S is a conglomerate with about 900 different divisions, but investors only really need to worry about one number in 2016: the price of oil.The owner of the world’s biggest shipping line is being battered “by a toxic cocktail with challenges in both the oil and the container division,” Stig Frederiksen, an analyst at Nordea in Copenhagen, said by phone. But “it’s now become the oil price that’s the main driver for Maersk’s share.”Maersk’s

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stock lost 9.8 percent in the first week of 2016, its worse start to a year since at least 1992. Brent crude was down by roughly as much last week. Maersk shares will probably be driven by the price of oil “for a while,” Frederiksen said. “We think that will be the case for 2016.”Shares in Maersk pared gains and were trading little changed as of 12:28 p.m. in Copenhagen, compared with a rise of 2.4 percent earlier in the day.For now, most analysts expect oil to rise by the end of the year. Brent crude, which traded at about $34 a barrel on Friday, will end the year at about $60, according to the median of estimates compiled by Bloomberg. Then again, a year ago, analysts thought oil would end the fourth quarter of 2015 at almost $80 a barrel.Analysts at Danske Bank don’t see any imminent recovery in the price of oil. “We expect oil prices to stay low for longer but to stabilize in 2016 as inventory build-up is reduced,” according to a report published on Monday by Thomas Harr, Danske’s global head of FICC research.Maersk Oil, which mainly explores in Qatar and in the North Sea, has set its break-even level at about $55 barrel. A series of job cuts may have helped reduce that figure, though it would still be “a lot higher than the current oil price,” Frederiksen estimates.“Maersk Oil will definitely lose money in 2016 if oil prices stay at this level,” he said. “It looks like it will be a very tough year for” the company. Meanwhile, Maersk Line will stay profitable in 2016 thanks to efforts to optimize its so-called load factor, but container volumes won’t recover significantly, Frederiksen said.“We haven’t really seen a situation like this for Maersk in recent history, where both units are hit so hard,” he said. Sources: Bloomberg

TERASEA FALCON DEPARTED WITH FPSO MUNIN FROM GALANG ANCHORAGE IN BATAM

POSH TERASEA’s AHT TERASEA FALCON departed from the Galang anchorage in Batam with the MUNIN FPSO bound for the Labuan lay-up anchorage –

Photo’s: Capt Neil Johnston – Master Terasea Falcon ©

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Istanbul’s Bosporus strait closed to shipping traffic due to heavy smog

Istanbul port authority announced on Saturday that the Bosporus strait was both ways closed to shipping traffic as of 12.58 p.m. due to heavy smog.As physical conditions did not prevail for a safe passage through the Strait, the port authority said that they temporarily halted the shipping traffic from and to the Black Sea.Turkey’s western and northern regions have been gripped by heavy snowfall since Thursday, after months of relatively warm temperatures. The bad weather brought a string of problems, especially for motorists, while it was most welcomed by children who have been spending the last couple of days building snowmen and having snowball fights as schools were closed. The General Directorate of Meteorology said on Saturday that the country is expected to be gripped by a warm and rainy airstream coming from the Mediterranean Sea, starting on Sunday.With the heavy snowfall leaving the country, temperature level which dropped as low as zero degrees Celsius in the western Turkey, will be back to seasonal normal.Accordingly, cities on the coastal strips will receive a huge amount of rain in the upcoming days, whereas other places will still see snow, but mixed with rain. Source: Daily Sabah

Australia Pacific LNG finally underway The first shipment from the $24.7bn Australia Pacific LNG project destined for Asia has finally got underway, two weeks later than planned. The METHANE SPIRIT left Curtis Island off Gladstone in Queensland on Saturday.

Minister for State Development and Minister for Natural Resources and Mines Dr Anthony Lynham said the milestone was a culmination of the efforts of thousands of workers engaged by APLNG joint venture partners Origin Energy, ConocoPhillips and Sinopec and their contractors.“APLNG expect to reach full production from the two LNG trains by the end of 2016,” he said. “Overall, Queensland’s LNG industry is ramping up, having already exported $1.75bn worth of gas from last year.”source : Splash 24/7

Oil rush may spur China rethink on S. China Sea development

By: Jiang Zongqiang and Kang Lin

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In the resource-rich South China Sea, China's main exploitation and exploration efforts have traditionally focused on the northern part, rather than the south. China does not own any oil and gas wells in the much-disputed Spratly waters, and has not gained even a barrel of oil from there.However, in the central and southern parts of the South China Sea, it has been overshadowed by ambitious Vietnamese oil and gas exploration efforts.Vietnam has granted oil and gas drilling rights in the Spratly region to international oil giants and signed multilateral drilling contracts with more than 30 countries, including the United States, Japan, Britain and the Netherlands. Given Vietnam's oil rush in disputed areas of the South China Sea, it is highly likely that China will make conspicuous adjustments to its existing strategies on oil exploitation in the area. It will need to rethink its policy of working with other disputant states to jointly develop resources, for starters. Until now, China has adopted a passive stance over Vietnam's oil and gas expansion aspirations in the central and southern parts of the South China Sea. One reason for this is that the Chinese government has been willing to sacrifice economic benefits for peace and stability in the area. For example, for over two decades, the Chinese government has refrained from forcefully implementing a contract signed with American company Crestone Energy Corporation after oil drilling efforts were obstructed by Vietnam in the early 1990s in the so-called Block Wananbei-21 (also named Block Vanguard Bank-21). But in recent years, Vietnam's largest national oil company, PetroVietnam, has stepped up exploitation efforts within the much-debated nine-dash line - which, in maps issued by the Chinese government, appears to assert Chinese claims over much of the South China Sea. As at 2010, it had as many as 68 oil and gas fields, whose annual total crude oil production has exceeded 25 million tonnes , far beyond the expectation of Vietnamese domestic demand.

How might China respond to the Vietnamese efforts?

CHINA'S POSSIBLE RESPONSES

First, China may conduct a comprehensive review of the real effect of its long-held policy of putting aside disputes for joint development and creating a joint multilateral development authority to exploit resources in the disputed areas. The policy was put forward to bridge differences and build confidence through economic cooperation in disputed maritime zones, with the ultimate goal of maintaining regional peace and stability.But the real effect of this cooperative resource development policy has been far from satisfactory, at least for the time being. One of the few highlights under this policy was the Tripartite Agreement for Joint Marine Seismic Undertaking in the Agreement Area in the South China Sea signed by China, Vietnam and the Philippines in 2005. However, this also failed to achieve the desired results and came to a halt after the first phase ended. It is fair to say that the policy has been at a stalemate and stands little hope of making any further progress in the foreseeable future. Therefore, it is rational to expect a more proactive, alternative approach.Second, China may shift the focus of its oil exploitation efforts from the northern part to the central and southern parts in the South China Sea, which implies more friction with Vietnam, such as the skirmishes of May 2014. That month, China moved a semi-submersible oil platform, the Haiyang Shiyou 981, near the Paracel Islands, a move that raised fierce protests on the Vietnamese side. Vietnam claimed that this violated its territorial claims, while China claimed it was legal as it fell within the surrounding waters of the Paracel Islands under Chinese military control. The deployment of the Haiyang Shiyou 981 was widely seen as evidence of the southward shift.

At present, China's natural gas fields (like Liwan 3-1, Liuhua 34-2 and Liuhua 29-1) are mainly located in the Pearl River mouth basin, the Yinggehai Basin and other basins in the northern part of the South China Sea.As to what steps will be taken by the Chinese government to deal with Vietnam's oil rush in disputed areas of the South China Sea, one thing is clear - the answer points to a more proactive approachIn recent years, however, China has made tremendous strides in oil and gas exploration technology, which lays the basis for a southward shift. The Haiyang Shiyou 981 ranks among important technological advancements that also include the Haiyang Shiyou 720, a major deep-water seismic geophysical exploration vessel; and the Haiyang Shiyou 201, the world's first deep-water pipe-laying crane vessel. The Haiyang Shiyou 201 features 3,000m of deep-water pipe-laying, 4,000 tonnes of lifting capacity and dynamic positioning capability. It is also designed to handle gearing tasks.Third, China may make appropriate adjustment to the assignment of the proportion of profits coming from oil exploitation in the South China Sea.Since the 1980s, it has signed cooperation contracts with over 40 oil companies from more than 10 nations (including the United States, Britain and France) in which China generally retains 51 per cent of all profits.However, compared with Vietnam's less than 20 per cent - as in Hong Ngoc Ruby gas field - China's offer is obviously less attractive to international oil giants. Therefore, it is rational to expect China to reduce the share it takes in future international cooperation on oil exploration in the South China Sea.Vietnamese diplomatic manoeuvring has been increasingly augmented and supported by concrete action to consolidate its control over the Spratly Islands and waters. It is also noteworthy that PetroVietnam's most productive wells are completely within China's nine-dash line.As to what steps will be taken by the Chinese government to deal with Vietnam's oil rush in disputed areas of the South China Sea, one thing is clear -

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the answer points to a more proactive approach.The writers are research fellows with the China National Institute for South China Sea Studies in Haikou, Hainan. Source: straitstimes

The CYGNUS SENTINEL arriving in IJmuiden – Photo : Marcel Coster ©

Shanghai Port posts first annual profit fall in four years

Shanghai International Port Group Co Ltd, the operator of the world's busiest container port, posted a 4 percent fall in its 2015 preliminary net profit, marking the first decline since 2011 as China's economy slows. Shanghai Port, whose container throughput totalled 36.5 million TEU (twenty-foot-equivalent units) in 2015, reported a preliminary net profit of 6.5 billion yuan ($989.35 million) in 2015, down from 6.8 billion yuan a year earlier, it said in an exchange filing on Monday. The port is expected to post its final annual results with outlook comments in March. The last time it logged a profit fall was in 2011, when net profit was down 12.8 percent, according company data posted on Eikon.

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China, the world's second largest economy, will face great difficulty in achieving economic growth above 6.5 percent over the 2016-2020 period due to slowing global demand and rising labour costs at home, the China Securities Journal quoted top state adviser Li Wei as saying on Monday. Source : Reuters (Reporting by Lee Chyen Yee in Singapore and Twinnie Siu in Hong Kong, editing by Louise Heavens)

200.000 RUNNING HOURS FOR SWD TM-410 MAIN ENGINES ONBOARD THSD BARENT ZANEN

The engine room crew sitting proudly on top of the Port side SWD TM-410 engine which reached 200.000 running hours onboard the TSHD BARENT ZANEN whilst operating at the Elbe River in Germany A milestone in a dredger’s

life and still going strong Photo : Ben Veltman Ch.Eng TSHD "Barent Zanen"©

IMO and WCO partner on e-business compendium IMO and the World Customs Organization (WCO) have signed a partnership agreement to maintain, update, publish and distribute the IMO Compendium on Facilitation and Electronic Business. The compendium provides essential guidance and standardised forms for electronic exchange of information on cargo, passengers and crew, for ships, carriers, port authorities, customs, terminals, consignees and other parties in the supply chain.Under the agreement, signed on 22 December, the WCO takes responsibility for the technical maintenance of the compendium, including liaison with the United Nations Economic Commission for Europe (UNECE), the global focal point for trade facilitation recommendations and electronic business standards (UN/EDIFACT).The scope of responsibilities and procedures for the maintenance of the Compendium are detailed in the annex of the Agreement, and the Compendium is under the purview of the Maritime Safety Division of IMO and the Compliance and Facilitation Directorate of the WCO.WCO and IMO worked during 2015 on the maintenance of the Compendium, and taking into account the suggestions of the WCO's Data Model Project Team (DMPT), WCO will present a new version of the Compendium to the Facilitation Committee, which meets in April 2016, for approval.

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The MAERSK LINS moored in Buenos Aires

Photo : Willem J.M. Kappert Chief Electrician MS Zaandam

The BRITISH FIDELITY departing the Selfs Pt Petroleum, Gas & Bitumen wharf near Hobart,

Tasmania, Australia. This was her first visit to Hobart. Photo: Glenn Towler ©

Tanker demolitions in 2015 reach lowest level of past 25 years

In stern contrast to the dry bulk market, where scrapping of older vessels is close to all-time highs and could be even higher, if it weren’t for low offer prices by demolition yards, the tanker industry was in a totally different state of mind during 2015. In fact, as shipbroker Gibson said in its latest report, demolition activity in the tanker market reached its lowest level in 25 years!According to Gibson, “in deadweight terms tonnage sold for scrapping amounted to 1.7 million

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tonnes, just 29 units. Robust earnings across most tanker sectors over the year discouraged scrapping, Also, the phase out of single hull tanker tonnage, with most of the replacement taking place between 2003 and 2010, meant that more than half of the current global tanker fleet is less than 10 years of age. There are very few tankers over 25 years of age, with more than 80% of the existing fleet less than 15 years of age”.The shipbroker noted that “scrap prices collapsed in 2014 and current lightweight prices for Pakistan are presently in the region of $300/ldt, around $200 less than in September that year. Pakistan breakers took more than half the tanker tonnage sold last year. Prices peaked at over $500/ldt in mid-2014 and have fallen dramatically to the low prices on offer today and are at their lowest since August 2009. The major drop in scrap prices across the subcontinent to large extent was driven by strong imports of Chinese billets (semi-finished metal products) which provided an easier and cheaper alternative to ship scrap”.According to the relative data, “just one VLCC demolition sale was concluded last year, while Suezmax scrapping was non-existent. In November the VLCC “ALBA” (built 1989) was sold by Single Buoy Moorings to Bangladesh breakers having purchased the vessel in April 2011 for a potential offshore FPSO conversion. The tanker had been anchored off Labuan since September 2012 and her fate may have been finally sealed as a result of the low oil price as the demand for offshore projects collapsed. Three Aframaxes were scrapped, all 1992 vintage, the first sale in March sold for $380/ldt, while the third sale in November only achieved just $250/ldt. Seven Panamax/LR1 tankers were sold, which included the youngest tanker sale the “JI LI HU” at just over 15 years of age. The remaining tonnage sold (18 units) were all MR size, including the oldest demotion sale which was just short of 34 years of age. The average age of all tanker tonnage sold for scrap amounted to 25 years. In the near term, prospects both in the crude and the product tanker market remain robust and coupled with the age profile of the fleet and the low lightweight prices on offer; demolition activity in 2016 is anticipated to remain at highly restricted levels. Lower bunkering costs also mean that fuel efficiency is less of an issue and thus extending the life of many tankers. With the continued delay in implementation of the Water Ballast regulations and the limited potential for FPSO conversion projects, the likelihood is that levels of tanker removal this year could be even more challenging”, Gibson concluded.Meanwhile, in the crude tanker markets this week, in the Middle East, “the euphoria of the Pre-Holiday VLCC scene has been fairly well punctured. For most of the period Owners held their heads up well, despite the disrupted cargo flow, but as the January programme entered its final phase, and good availability remained, a harder hit was difficult to resist, leading rates down to ws 65 to the East and to around ws 40 West – roughly a 30 pct Worldscale drop from prior to the holidays. Further softening may yet be seen, but Charterers will soon be weighing up whether to go bargain shopping once again, which may provoke a rebound if they do. Suezmaxes, on the other hand, showed much less variance over the period – ws 85 East is now ws 80, and ws 50 West is now close to ws 40…and still soggy, but forward dates may see levels propped up by the exodus of tonnage departing for potential West African opportunities. Aframaxes eased off a little to 80,000 by ws 110 to Singapore, but there are tentative signs that things could improve somewhat over the coming week”, Gibson concluded. Source: Nikos Roussanoglou, Hellenic Shipping News Worldwide

The passenger ferry m.s. “PRIDE OF HULL” outbound Rotterdam during a rainshower and passing Maassluis.

Photo : Kees van Schie ©

New Entry Criteria For Vessels Calling French Ports

The French State has implemented new provisions regarding tax exemptions on commercial vessels of at least 15 meters in length, including yachts. The provisions came into force on the 1st January 2016. These provisions can be found in the Official Bulletin of the Tax-Public Finance of the French Republic (“BOI”).

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New procedure According to the BOI, merchant vessels are subject to VAT on port rights and some other services. However, merchant vessels with an LOA greater than or equal to 15 meters and which navigate in the deep seas, may be exempt from VAT when they meet the following cumulative conditions: is understood the acknowledgement by the foreign authority that a particular vessel is assigned to a commercial activity satisfies this requirement);

• The vessel needs to have a permanent crew on board; • The vessel is assigned to the needs of a commercial activity; and • The vessel should carry out at least 70% of her trading outside the French territorial waters during the

previous year (from the 1st January to 31st December).

The French Administration has given some guidance as to the last condition stating that the 70% results from, on the one hand, the relation between the number of trips in which the vessel travels out of the territorial waters during a single calendar year and, on the other hand, all the trips during the same period. As such, when the amount of trips out of territorial waters amount to more than 70% within the previous calendar year the vessel will be entitled to VAT exemption for the next calendar year. If this percentage is below 70%, then any exemption previously granted will cease for the following year.For vessels performing specific activities (for example vessels employed in the tanker trade), the percentage of trade carried outside territorial waters can be determined from the average number of trips made during the last five years. It should be noted that this percentage is determined by the vessel operators who are accountable for the declaration.

The CENTURIUS arriving in Le Havre Photo : Fabian Montreuil ©

Production of a statement/certificate

According to the new measures, ship operators will have to provide the French Port Authorities with a new certificate stating that the vessel fulfils the above conditions while committing to pay the tax should the conditions of the exemption prove to have been unfulfilled. This certificate should be issued on the operating company’s official letter headed paper and provide the following: The letter should include as a subject that it is a certificate of compliance with the VAT enforcement rules for exemptions in accordance with the article 262 of the General Tax Code (paragraphs II.2,II.3,II.6 and II.7). The person signing the document should clearly state that they (providing their full name and capacity within the company) certify that the vessel (full name, registration number – IMO) fulfils the cumulative conditions for VAT exemptions provided in the article 262 of the General Tax Code (paragraphs II.2,II.3,II.6 and II.7), i.e. :

• Vessel’s LOA is in excess or equal to 15 meters • Vessel is registered as a merchant vessel on a commercial register • The vessel has a permanent crew on board • The vessel is assigned to the needs of a commercial activity; • That the vessel carries out at least 70% of her trade outside the French territorial waters.

The letter should also clearly state that non-compliance with the above conditions constitutes a change of assignment according to the paragraph II.2 of the article 257 of the General Tax Code which will justify a recall of VAT with the beneficiary.The letter should state the place where it is issued and the date of issuance followed with the appropriate signature.Members are advised to ensure that they fulfil the requirements as stated in the BOI and provide the Port Authorities with a new certificate stating that the vessel fulfils the above conditions to ensure compliance with the

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domestic regulations.Members may also wish to keep up to date on the requirements through local agents prior to their vessel’s call at any French port.

The MUROS arriving to Dieppe to load scraps steel for Bayonne

Photo: Emmanuel Godillon http://larmes-de-rouille.piwigo.com ©

The Standard Club is always able to assist and members should not hesitate to contact their usual club representative, or the authors of this article, if they have any query in relation to this publication. Source: Standard Club

Conveyor Belt Damage Caused By Stray Metal Pieces

The Association has become aware of a recent increase in the number of claims arising out of damage caused to conveyor belts. Damage typically occurs when metal pieces intermixed with the cargo drop on the conveyor belts thus leading to dents and scratches to the belts, and occasionally to belts even being split longitudinally or across. A review of a number of the conveyor belt claims reported by our members shows that damage predominantly occurs during discharge of coal and iron ore. However, incidents have also occurred during discharge of other cargoes such as wheat, corn and furnace slag. The highest frequency of conveyor belt damage is reported from Chinese ports, which probably has a direct correlation with the volumes of ores and coal being shipped to China.Conveyor belt damage typically generates claims for repairs to- or replacement of the belts themselves, as well as for the production losses incurred by the port due to the cease in operation whilst restoring of the shore installation is being undertaken. Although most claims appear to be reasonably calculated and

relatively modest in size, seriously inflated claims have also been reported with allegations of six- and seven figure production losses. The interruption in the discharging operations may also lead to costly time losses for the member or client, and, in some instances, even to missed laycans or fixtures.In some of the reported cases, the metal objects in question have been identified as pieces of mining equipment which will have intermixed with cargo during production. However, the objects are not always identifiable. Although it is more likely that the objects are of shore than of ship

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origin, it is of utmost importance to preserve the object so that it can be surveyed or even subjected to metallurgical testing if need be. Even though a terminal's claim will likely be presented to the owners of the vessel, there should be good prospects of passing on a claim down the charter chain or to the shippers of the cargo provided that it can be proved that the object did not originate from the vessel. Further to this point, owners will be advised to make sure that they do not take on any contractual risk vis-á-vis the charterers for impure cargo being loaded on board the vessel.In the coal trade, it is reported that an increased use of metal detectors and/or magnetic separators in the loading chain is helping to minimise the risk of stray pieces of metal being loaded together with the cargo. Certain metal detectors can be tuned so as to ignore conductive or magnetic ores, and will therefore be effective to detect stray metal pieces also during loading of iron ore. If such equipment is not installed at the loading port, it would be worthwhile issuing a Letter of Protest against this or at least make a note of it in the log books or the statement of facts.Any member or charterer client facing a conveyor belt damage are recommended to immediately notify their local Skuld office of the incident. The vessel and ship agents should be instructed to ensure that the foreign metal object and the damaged conveyor belt are both preserved for later surveying and testing. If the receivers remove either of these objects, Letters of Protest should be duly issued against this. Finally, the (sub) charterers and/or the shippers of the cargo should be placed on notice for the damage and invited to participate at joint surveys of the conveyor belt and the metal object. Source: Skuld

Port Bronka and CMA СGM sign a long-term agreement for container cargo handling

On the 15th of December 2015 port Bronka investor Fenix LLC and one of the leading shipping companies CMA СGM signed a long-term agreement for handling and storage of container cargo. CMA CGM is the third largest container shipping company with a total fleet capacity of 1,807,298 TEU. The company serves more than 400 ports over the world and is one of the largest container shipping operators in St. Petersburg, including reefer containers. Today CMA CGM calls at St. Petersburg under four regular services, connecting St. Petersburg through the European hub ports with all international routes. Thecalls at Port Bronka will be performed in accordance with a regular schedule with

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actually operated vessels with capacity up to 1,800 TEU. Due to the approach channel and basin depth of 14.4 meters, the modern cargo handling equipment for post-Panamax vessels operations, and the design solutions Port Bronka for the nearest decades will stay the leading Russian port in the Baltic basin and can represent an attractive alternative to the hub ports for handling of the large container fleet. Long-term relations with the new port determined in the signed agreement will allow CMA CGM line sustainable improvement of the services and modernization of the operated fleet with new building of higher size ice class vessels delivered in 2016, including development of the new routes for shipments to Russia and entry to the new markets. The deepwater Port of Bronka is on the outskirts of St. Petersburg and lies on the southern bank of the Gulf of Finland. The port is directly linked to the St. Petersburg orbital highway and the Russian rail network. The multi-functional cargo handling facility comprises two terminals plus a logistics centre. Covering 107 hectares, the container terminal offers five berths along quays extending 1,200 metres. The RoRo terminal covers 57 hectares, and with a quay length of 710 metres permits simultaneous handling of three ships. At the first stage of construction, handling capacity of the container terminal totals 1,450,000 TEU per year, plus 260,000 unitsat the RoRo terminal. A first-stage water depth of 14.4 meters enables the Port of Bronka to handle post-Panamax vessels.

The SUPER SERVANT 4 moored in Vlissingen Photo : André de Ridder - Van Ameyde marine ©

Double first for DNV GL with new rule set class contract for LNG-fuelled bulkers

ESL Shipping’s new dual-fuelled bulk carriers will not only be the first large LNG-fuelled bulkers, but the first vessels constructed to the new DNV GL rule set. Due for delivery in early 2018, the two highly efficient 25,600 dwt vessels are optimized for trading in the Baltic Sea region.“It is fitting that the first vessels that will be constructed to the most forward looking set of classification rules are themselves at the cutting edge of maritime innovation,” said Knut Ørbeck-Nilssen, CEO of DNV GL – Maritime. “We have created these rules to be ready for the future and we have long pioneered the use of LNG as a ship fuel. To see these two come together in a double first for the industry is a remarkable moment. We look forward to working with ESL, Deltamarin, Sinotrans & CSC Qingshan Shipyard and all the project partners to make this project a success.”“We are proud to be the world’s first shipyard applying the new and innovative DNV GL rules for a newbuilding, just two months after DNV GL has launched its new rules in October this year,” said Liu Guangyao, Deputy General Manager of Sinotrans & CSC at the Marintec China Trade Fair recently. “We appreciate the support that DNV GL has committed to provide on the project during both the design and construction phase, especially in a project with many advanced extra class notations. We are looking forward to a close cooperation and a successful delivery.” Featuring the Deltamarin B.Delta26LNG design, the two highly efficient ships will feature dual-fuel main and auxiliary machinery, resulting in CO2 emissions per ton of cargo transported half that of present vessels. The bulk carriers will be built to the new DNV GL rules for general dry cargo ships with DNV GL ice class 1A and will have type C LNG tanks of approximately 400 m3 capacity enabling bunkering at several terminals within the Baltic region. The B.Delta26LNG has a shallow draft of maximum 10 m, an overall length of 160 m, and a breadth of 26 m.“We are very excited to have been selected to take part in this ground breaking project,” said Morten Løvstad, Business Director Bulk Carriers at DNV GL. “Being asked to work with such an innovative team as the classification partner is a testament to the creativity and hard work that so many colleagues at DNV GL have invested in the new rule set. These vessels will set new standards for efficiency and environmental performance. They are an important step forward in showing how shipping can be a force for sustainability today and in the future.” Sources: DNV GL

Tanker Market: Unipec retains top spot in crude tanker charterer list during 2015

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Poten & Partners released its usual annual survey of chartering activity for the dirty spot tanker market and once again, Unipec has remained the leading charterer in 2015. In fact, as Poten points out, most likely this isn’t about to change anytime soon, despite the fact that oil demand growth is slowing down in China and as such, the Chinese charterer could trim down some of its bookings in 2016. According to Poten’s analysis, the most significant changes in trading activity in the spot tanker market can be found further down the list, where IOC moved from 10th place in 2014 uup to 4th place last year, while Litasco climbed to 8th place, versus the 11th place it held during 2014. Also, Saudi Arabian Bahri improved to 12th place overall, while back in 2014 it held just the 23rd place. As it turned out in 2015, it was the supermajors of the market that lost some places during 2015. ExxonMobil lost one place to end up in 5th overall, while BP dropped from 5th to 10th in the ranking. A notable new entrant on number 17 in the top 20 was commodities trader Trafigura. As a reminder, these rankings are all based on reported spot fixtures noted Poten.In its report, the shipping analyst noted that “in the VLCC segment, Unipec continues to be the dominant charterer with 511 reported fixtures, more than four times the second largest player in this segment (the Indian Oil Company), for which we recorded 118 fixtures in 2015. IOC is followed closely by Bahri (114 fixtures), Reliance (111) and Petrochina (107)”.In the Suezmax segment, “Chevron continues to lead the pack in the Suezmax segment (same as last year), followed by Repsol (2nd) and Unipec (3rd). The Chinese charterer moved up from 8th spot last year. The western supermajors are generally well represented in the top Suezmax rankings, with Chevron, Repsol, ExxonMobil, Shell, CSSA (Total) and BP all in the top 10”, said Poten.Moving on to the Aframax segment, “where Vitol vaulted past Shell for the number one spot. Like last year, the Aframax segment is the one where the traders are best represented. Five of the top ten charterers are considered international trading companies. 2016 started with a bang! In the first week of the year we have already seen significant gyrations in the stock market in combination with falling oil prices and increasing geopolitical tension. This is shaping up to be another interesting year in the oil and tanker market”, Poten concluded.Meanhile, in a recent report on the tanker market, Danish Ship Finance, noted that “the Crude Tanker market is characterised by having very few potential scrapping candidates and a fairly large orderbook. While demand for Crude Tankers has been robust in 2015, this is not a reflection of fundamental end-user demand – rather, it has been reinforced by longer travelling distances and temporary factors such as floating storage and port congestion. Low crude oil prices and surplus volumes have also boosted transport requirements, as a combination of onshore and offshore storage build-ups have occurred around the world”.In addition, as DSF points out, “the ramp-up of refinery utilisation rates has increased transported volumes throughout the year. There are, however, several factors indicating that refinery throughput exceeds end-used demand, and therefore the boost to Crude Tanker demand from these additional crude oil volumes may not continue. In the short term, Crude Tanker demand may strengthen, for seasonal reasons and due to weather-related disruptions prone to occur during the winter in the Northern Hemisphere, but in the medium term, it remains highly vulnerable”.True, refinery consolidation could create longer travelling distances and reduce fleet productivity if more Asian imports are sourced longhaul from the Atlantic Basin rather than short-haul from the Middle East. But for seaborne crude oil volumes, the ongoing rebalancing of the Chinese economy is a major cause for concern, not to mention the expansion of the ESPO (Eastern Siberia-Pacific Ocean) pipeline – which moves Russian crude oil to China – by 2020. DSF added that “besides that, geopolitical tensions seem to be building up, not only in the Middle East, but also in the South China Sea and elsewhere. Overall, the outlook for Crude Tanker demand may turn out to be lower than investors currently seem to expect. Freight rates and secondhand values may suffer if demand is insufficient to employ the fleet, because there are virtually no scrapping candidates left to counterbalance a potential decline in demand”. Source: Nikos Roussanoglou, Hellenic Shipping News Worldwide

Interorient Shipmanagement hands over charity cheque to Limassol Municipality

The CEO of Interorient Shipmanagement, Themis Papadopoulos, has last Friday presented to the Limassol Municipality a cheque for €9380 following the Interorient Shipmanagement Christmas Charity Fair, which will go towards strengthening the Municipality’s Social Grocery Fund.The great success of the event is a reflection of the dedication and enthusiasm of all the staff at Interorient Shipmanagement. A big thanks goes to the more than 700 visitors who came to support the first Interorient Shipmanagement Christmas Charity Fair and the kind co-operation and generosity shown by sponsors, contributors and stall holders and of course to the many volunteers who kept everything running smoothly.The €9380 in aid of the Social Grocery fund of the Limassol Municipality was raised on the day and will go towards making a great difference to the lives of the needy families in the city. In a small ceremony at the offices of the company, the cheque was handed over to the Vice Mayor of Limassol Savvas Stouppas. Mr Stouppas said: “On behalf of everyone at the Limassol Municipality and the Limassol Social Grocery I would like to thank the management and staff of Interorient Shipmanagement who gave so much effort in planning and executing

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the charity event and for their hard work and determination. You have raised a fantastic amount and this will go straight towards helping local people and needy families in our city.”Mr Papadopoulos said: “Presenting the cheque to the Social Grocery Fund of the Limassol Municipality was a great moment as it represented the culmination of months of planning and hard work. We are really happy with the total amount we raised and the experience of organising such an event. Thank you once again for taking part and we look forward to seeing you all again next year!” Source: Interorient Shipmanagement

The JOSCO FUZHOU seen southbound in the Suez canal – Photo : Piero Corona ©

The MARE CARIBICUM inbound in Cape Town – Photo ; Ian Forsyth ©

Are P&I Insurers Subject To The Jurisdiction Of The Danish Courts When Met With Third Party

Direct Claims?

1. Introduction

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A recent case from December 2014 from the Copenhagen Maritime and Commercial Court has determined important jurisdictional questions relating to direct actions against a P&I insurer. Is the P&I insurer entitled to invoke the jurisdiction clause in the policy with its insured against the third party claimant? Below is an examination of this question, including review of the general Danish rules regarding direct claims and jurisdiction. A comparison will also be made with the legal position in subrogation matters.

2. Danish law and direct actions

Since 1929 Danish law has had a regime which allows direct actions from an injured party against the insurer. Direct actions are established under section 95 in the Danish Insurance Contract Act which gives the injured party a right to direct action against the insurer, when the insured party’s obligation to pay compensation and the amount of compensation has been determined. For some years it was uncertain whether the injured party would be able to make a claim against the insurer in the event the insured party became insolvent. Danish case law gave the injured party the right to make such a claim against the insurer. This was codified in 2003 when section 95 was amended with a sub-section 2 which entitled the injured party to claim compensation from the insurer when the insured party went into insolvency proceedings. The wording of the law text is that the injured party “steps into” the insured’s rights against the insurance company.Danish legislation contains other areas of law where direct actions may be made, for instance automobile accidents and accidents caused by dogs.Lately, direct actions have also been introduced in the Danish implementation of a number of maritime conventions.In April 2015 the Wreck Removal Convention entered into force in Denmark and like the 1992 Civil Liability Convention, HNS and Bunkers Convention, the Wreck Removal Convention contains a right for the injured party to make direct actions against the insurer or other persons who has provided financial security for the registered owner’s liability.Denmark has interesting case law that determines what is meant by “stepping into the shoes” of the insured. In a case from 20111 the High Court Western Division found that the injured party obtained better rights than the insured party when the injured party raised claims against the insurer. The question in the case was whether a deductible in the insured party, Aarhus Shipyard’s liability insurance with the Danish insurance company Tryg Forsikring A/S would apply when an injured party raised a claim directly against the insurance company. Aarhus Shipyard went into bankruptcy and the claim was raised on basis of section 95 (2). The High Court found that since the text of the section in the law allowed for full compensation when such direct claim was made, then the deductible of DKK 10,000 should not be deducted in the injured party’s compensation from the insurance company. This was indeed a surprising judgment and the Danish Supreme Court2 decided in June 2013 to overturn the judgment from the High Court. The Supreme Court fund that the insurance company was entitled to apply the deductible. It was generally stated by the Supreme Court that the insurance company was entitled to make the same objections towards the injured party as it would have been against the insured party.

3. Jurisdiction of the Danish courts One thing is the rules of Danish law regarding the injured party’s rights to make direct claims against an insurance company and the insurance company’s objections. The next question is, when do Danish courts have jurisdiction for such claims? In maritime insurance cases the relevant rules are the Brussels I Regulation, articles 8-14, as implemented in Danish law by act of 20 December 2006. In respect of direct actions article 11.2 gives jurisdiction for a direct claim against the insurer provided such claims can be validly made.According to article 13 the jurisdiction rules in articles 9-12 can be derogated from in the event of an agreement on jurisdiction which according to article 13 no. 5 includes an insurance agreement which covers maritime risks as described in article 14.So an agreement for insurance of maritime risks may contain a jurisdiction clause which will be upheld despite the jurisdiction rules in the Brussels I Regulation.And now we come to the interesting jurisdictional question relating to direct actions. Do articles 13 and 14 have the effect that when an injured party makes a direct claim against the insurer, then the insurer may invoke the jurisdiction clause in its insurance agreement with the insured party? This has been discussed in length in Danish theory. What does it mean to “step into” the insured party’s rights? Obviously, an agreement on insurance is an agreement between the insured party and the insurance company. Can the injured party step into the insured party’s position with the effect that the injured party is bound by the jurisdiction clause? 4. The decision from the Maritime and Commercial Court

This question was determined by the Maritime and Commercial Court decision of 22 December 20143. It should be noted that the judgment is under appeal to the High Court.

First of all, the facts of the case:

The company Skεne Entreprenad Service AB had entered into a P&I insurance with Navigators Management UK Ltd. This was a syndicate at Lloyd’s of London. Skεne Entreprenad Service AB was bareboat charterer of the tugboat Sea Endeavour I which caused damage to port facilities in the Port of Assens. The Port of Assens was thus the injured

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party. Skεne Entreprenerad Service AB went into bankruptcy. The port arrested the vessel that had caused the damage (the arrest was deemed to be founded on a maritime lien for the claim), but the value of the vessel was not sufficient to cover the loss. Consequently, the Port of Assens raised a claim against Navigators Management UK Ltd. Navigators Management UK Ltd. on its side referred to the choice of law and jurisdiction clause in the P&I policy according to which the Court of England and Wales had exclusive jurisdiction. The Port of Assens sued Navigators Management UK Ltd. at the Maritime and Commercial Court in Denmark with reference to the Danish Insurance Contracts Act section 95 (2). The parties agreed to separate the question of competence for the Danish court, and the Maritime and Commercial Court judgment dealt only with the jurisdictional issue, i.e. did the court have jurisdiction for the claim? Obviously, Navigators Management UK Ltd. rejected such jurisdiction on the basis of the English jurisdiction clause, while the Port of Assens argued that the jurisdiction clause had effect between the insurer Skεne Entreprenad Service AB and Navigators Management UK Ltd. but did not have effect towards the Port of Assens as a third party. The Maritime and Commercial Court found that the insurance covered maritime risks within the meaning of article 14 in the Brussels I Regulation with the effect that the jurisdictional rules in articles 9-12 could be derogated from by an agreement on jurisdiction. It followed from the Danish Insurance Contracts Act section 95 (2) that the Port of Assens did step into the position of the insured party. According to the wording and intention of the section, this meant that the injured party stepped into the agreed terms and conditions under the insurance policy, including the jurisdiction clause. Consequently, the Maritime and Commercial Court rejected jurisdiction. The Supreme Court judgement from 20134 (mentioned above), where the Supreme Court stated that a deductible in the insurance policy would also apply towards the injured party, seems to support that the terms and conditions of the insurance policy are valid also towards the injured party. The Supreme Court stated in the said judgment that the insurance company could make the same objections towards the injured party as towards the insured party. This seems to imply that also a jurisdiction clause would be binding towards the injured party. One must, however, admit that there is a difference from this legal position to the requirement for an agreement having been entered into as it is required in respect of jurisdictional agreements pursuant to article 13 in the Brussels I Regulation.

5. Parallels to subrogation

Some guidance for the interpretation of the Brussels I Regulation may be found in cases regarding subrogation. Such cases are often seen where a party has taken out insurance and the insurance company pays compensation and steps into the insured party’s claim against its contracting party. If the insured party has a jurisdiction clause in its contract with its contract party it is generally assumed that the insurance company will be bound by such jurisdiction clause. This is covered in Enforcement of International Contracts in the European Union by Johan Meeusen, Marta Pertegαs, Gert Straetmans5, section 14.10: “Within the scope of the Brussels I the decision can probably be extended to the general statement that the party to whom a claim is subrogated is bound by the jurisdiction clause between the parties to the original contract”.6/7 The same position is taken under Danish law, cf. Jesper Windahl in article “Direkte krav og forumklausuler”8/9. Case law is ambiguous. In English law it was decided in Von Appen v. Voest Alpine, 199610 “subrogated rights to sue derived from the transferred rights under the contract and were governed by that contract. —- The effect of subrogation was to transfer Voest’s right to make claims under the subcharter party to their insurers. Those rights were limited by the terms of the sub-charter and were accordingly subject to the arbitration clause”. This principle should be the same for a clause with jurisdiction at the ordinary courts, and not arbitration.Contrary hereto see a decision from 2003 from the European Court of Justice, Refcomp SpA v Axa Corporate Solutions Assurance S.A. and others11: “It follows that the jurisdiction clause incorporated in a contract may, in principle, produce effects only in the relations between the parties who have given their agreement to the conclusion of that contract. In order for a third party to rely on the clause it is, in principle, necessary that the third party has given his consent to that effect”.

6. Maritime conventions In the world of maritime insurance the right to make direct actions has developed through of number of recent maritime conventions. As mentioned in the beginning, in Denmark the Wreck Removal Convention has just taken effect, and this convention contains in article 12.10 a right to make direct actions against the insurance company. Similar provisions can be found in the Bunkers Convention article 7.10, HNS Convention article 12(8) and 1992 Civil Liability Convention article VII(8). In respect of these convention based rules the national enactments of the conventions will normally include specific mandatory jurisdiction clauses. For instance in Danish law direct claims under the Bunker Convention are given jurisdiction at Danish courts pursuant to section 189 in the Danish Maritime Act12. In the above-mentioned case from the Maritime and Commercial Court case the jurisdictional issue was covered by the Brussels I Regulation. In cases governed by the mentioned conventions the jurisdiction will normally be based on separate national jurisdiction rules (and not the Basel I Regulation).

7. Where are we?

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We are in an area of law where the law is being developed right now, not only in Denmark but certainly also in other EU countries, note the different opinions by the courts in the subrogation cases mentioned above. An interim conclusion appears to be that the insurer of maritime risks needs to accept that the insurer may be held liable at various European courts despite the jurisdiction clause in the policy. It may probably also be concluded that a right to direct action in international matters does not give the claimant the envisaged legal rights unless it establishes jurisdiction for the direct claim the same place as for the claim against the tortfeasor. This is the position under the abovementioned maritime conventions – but not necessarily when the direct action is linked to other types of claims. Source: Gorrissen Federspiel

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Independent Consultants and Brokers in the International Tug and Supply Vessel market (offices in London and Singapore)

Telephone : +44 (0) 20 8398 9833 Facsimile : + 44 (0) 20 8398 1618

E-mail : tugs@marint.co.uk Internet : www.marint.co.uk

TOO CLOSE FOR COMFORT !

The ZHEN HUA 28 arrived in Abidjan loaded with dredging materials and passed the anchored TSHD KAISHUU

reasonable close ! Photo : Wes Nicolaas Ponder ©

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Bimini Superfast ends service Resorts World Bimini is ending its cruises from Miami Sunday, as increased air service to Bimini makes it easier to get to the island just 50 miles away.The company will add different ferry service in the spring, but it won’t be overnight, as cruises on the Bimini SuperFast are now. Genting, the Malaysian resort and casino giant, started the ferry service in mid-2013, after it bought the former Bimini Bay Resort, renamed it Resorts World Bimini and built a casino. Later, it began work on a 305-room Hilton, which is partially open and is scheduled to be completed in the spring.The cruises started as day trips from PortMiami, but the three-hour travel time didn’t let passengers spend much time on the island, and the cruises soon changed to overnight trips and finally to two-night trips, three times a week. Passengers could stay on the island or in one of the ship’s 180 staterooms.

THE NUMBER OF VISITORS TO BIMINI DOUBLED TO 117,315 IN 2014, THE FIRST FULL YEAR THAT GENTING’S CASINO AND FERRY WERE IN OPERATION.

At the time, there was no daily air service between Bimini and Miami or Fort Lauderdale, only a few trips a week from Fort Lauderdale. The resort later added seaplane and private jet service for its VIPs. Now, however, Silver Airways has expanded its service out of Fort Lauderdale to daily flights and Cape Air has added twice-daily seaplane flights from Miami (from Watson Island, next to PortMiami) that will increase to five flights a day on Sunday. Including Resorts World’s private aircraft, those additions will allow up to 500 people a day to make the 30-minute flight to the island, Resorts World said. Resorts World said it will replace the SuperFast with “a more efficient ferry operation” between PortMiami and Bimini in the spring, but provided no more information. Source: Miamiherald via FerriesofSouthernEurope

Tugboat engineers' strike affects shipping in Newcastle, Sydney and Geelong

Shipping has come to a standstill in the ports of Newcastle, Sydney and Geelong after tugboat engineers launched strike action. The industrial action comes after unsuccessful negotiations for a new enterprise agreement, with engineers rejecting attempts by Svitzer to bring them under the same agreement as deckhands and tugboat skippers. In the Port of Newcastle the strike by Svitzer employees began at 4:00am and is due to end at 4:00pm today.The Port of Newcastle said cargo loading and unloading would continue during the 12-hour stoppage but shipping would pause. Federal secretary of the Australian Institute of Marine and Power Engineers Martin Byrne said the action was not being taken lightly."The issue is one of great concern to them, however in terms of impact, we gave notice last Wednesday, six days ago," he said."The arrivals and departures in the Port of Newcastle have been rescheduled so as to avoid a clash with the 12-hour stoppage that's been notified." However, Craig Carmody from Svitzer said it was disappointing the union could not see the company's point of view."As it currently stands we have three crew members on a tug, and they're covered by three agreements, and we have to deal with three unions at a time to get anything done, and we think that in the 21st century it just makes sense to have a single agreement covering all three people on that tug," he said.He said the strike has halted shipping in Newcastle but he was confident they would be able to get through the backlog quickly."The port authority is continuing to do loading at the coal terminal in preparation for things to return to normal at 4.00pm," he said. "The workers are striking in Brisbane and Melbourne tomorrow so we'll be looking to minimise disruptions there the same way we have dealt with the issue today."The Port of Newcastle said it was working to minimise the impact on its customers. Mr Carmody said the tug engineers based in Sydney will strike from midday.The main vessels affected in Sydney will be container ships and tanker ships coming into Port Botany but passenger ships will not be affected."In the case of Sydney obviously it's such a busy port that there will be some disruptions there," he said.The industrial action has now ended in Geelong.However, further strike action planned in Brisbane and Melbourne tomorrow. Source: ABCnet

Japan sends warning to China over naval incursions near disputed isles

Japan said on Tuesday that it has told China that any foreign naval vessel that enters Japanese territorial waters for reasons other than "innocent passage" will be told to leave by a Japanese naval patrol, signalling a potential escalation in a long-running maritime dispute Chief Cabinet Secretary Yoshihide Suga told a news conference Japan had informed China of its decision in November, after Chinese navy ships sailed near disputed isles in the East China Sea known as the Senkaku in Japan and the Diaoyu in China.Japan's government, Suga said, had approved this course of action last

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May."Based on a Cabinet resolution last May, if a foreign naval vessel transits our waters for (purposes) other than 'innocent passage', we will order a sea patrol and take the step of having the Self-Defense Force unit order withdrawal," Suga told a news conference.Chinese Foreign Ministry spokesman Hong Lei, asked about the remarks, said China was determined to protect its territory, repeating its standard line that the islands had been Chinese "since ancient times"."At the same time we do not want to see a rise in tensions in the East China Sea and are willing to appropriately manage, control and resolve the issue via dialogue and consultations," Hong told a daily news briefing in Beijing Suga's comments followed a Yomiuri newspaper report that said ships belonging to the Maritime Self-Defense Force, as Japan's navy is known, would be sent to urge Chinese naval ships to leave if they came within about 22 kilometres (12 nautical miles) of the islands for reasons other than "innocent passage".The tiny islands are under Japan's control, but the territorial dispute over them has been a major sticking point in the two countries' often contentious relations in recent years.Late last year, a Chinese coastguard vessel with what appeared to be gun turrets entered territorial waters claimed by Japan near the disputed islands, Japan's coastguard said, adding that it was the first such incursion by an armed Chinese vessel in the disputed area. Source: Reuters (Reporting by Kaori Kaneko and Linda Sieg; Additional reporting by Ben Blanchard in Beijing; Editing by Simon Cameron-Moore)

NAVY NEWS

IL Navy Sa'ar 5-class corvette left Saturday the port of Haifa with the heli on board most probably to meet the oncoming new Dolphin 2 class submarine "INS RAHAV" Photo : Peter Szamosi ©

Chinese naval hospital ship Peace Ark arrived at Hawaii

Chinese naval hospital ship PEACE ARK arrived in Hawaii, U.S., on January 9, local time, for a 3-day technical stop. The hospital ship Peace Ark left Peru's Port of Callao and kicked off its homebound voyage after carrying out the "Harmonious Mission - 2015", Dec.26, 2015. This is the fourth time for the hospital ship PEACE ARK to make a stop in Hawaii. During the technical stop, the hospital ship will be replenished with fuel and materials, and the Chinese sailors will have the chance to visit Pearl Harbor, Arizona Memorial and USS Missouri Memorial. Source: China Military Online

US Nuclear Fast-Attack Submarine Visits Japanese Port

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An American nuclear-powered fast-attack stealth submarine has docked at Yokosuka port in Japan as part of its Asia-Pacific region itinerary, the US Navy announced in a news release."Los Angeles-class fast-attack submarine USS CITY OF CORPUS CRISTI (SSN 705) arrived at Fleet Activities Yokosuka Jan. 11 as part of its Indo-Asia-Pacific deployment," the Navy News Service said in a release issued on Monday.Commissioned in 1983, the City of Corpus Christi is more than 300 feet long and weighs more than 6,000 tons, the release noted."City of Corpus Christi is one of the stealthiest submarines in the world. This submarine is capable of supporting a multitude of missions, including anti-submarine warfare, anti-surface ship warfare, strike, surveillance and reconnaissance," Navy News Service said.Los Angeles-class submarines carry about 25 torpedo tube-launched weapons, as well as Mark 67 and Mark 60 CAPTOR mines, and can fire Tomahawk cruise missiles capable of carrying nuclear warheads. Source: sputniknews

SHIPYARD NEWS

The SPIRIT OF BRITAIN in drydock at Damen shiprepair in Vlissingen

Photo : André de Ridder – Van Ameyde marine ©

S. Korea: Shipbuilders Cut 3,000 Jobs In 2015 Amid Slump

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South Korean shipyards, led by Hyundai Heavy Industries Co., slashed their workforces by some 3,000 in 2015 as they struggled with mounting losses stemming from a delay in the construction of offshore facilities and an industrywide slump, industry data showed Monday. According to the data, some 3,000 employees were let go by the country’s top three shipyards — Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. — last year. Including workers at their subcontractors, a total of 5,000 jobs were cut last year, the data showed. Hyundai Heavy reduced its workforce by 1,300 last year, with some 1,400 workers laid off at Daewoo Shipbuilding. “Reeling from massive losses, local shipyards reduced costs by slashing their workforces,” a Hyundai Heavy Industries official said.The shipbuilders are estimated to have racked up a combined operating loss of more than 8 trillion won ($6.66 billion) last year. If the figure hovers around that level, it will mark the first time for all of the nation’s three largest industry players to register operating losses.Daewoo Shipbuilding’s 2015 operating losses are estimated at about 5 trillion won, with corresponding figures for Hyundai Heavy and Samsung Heavy reaching 1.5 trillion won and 1.7 trillion won, respectively. In 2014, their combined operating losses hovered above 2 trillion won.Market watchers expect their business slump to continue this year as the global shipbuilding industry is unlikely to turn around any time soon. The stuttering shipbuilding sector is feared to be a major drag on South Korea since it is one of the key growth engines for Asia’s fourth-largest economy, along with electronics and automobiles. Source: Yonhap

ROUTE, PORTS & SERVICES

Russian cargo vessel detained in Denmark over drunk crew members sets sail

Russian general cargo vessel IVAN BOBROV detained on January 1 in Denmark because of drunken crew members set sail with a new crew on Saturday, the Trans-NAO company – the ship’s owner – told TASS. “The ship was re-fuelled and has continued its voyage to Riga,” the shipping company said. “On Thursday, January 8, new top crew members – the captain, chief mate and chief engineer – arrived in Copenhagen from Arkhangelsk.” Earlier reports said that two crew members – chief mate and chief engineer – arrested for alcohol abuse were set free on Friday.The next day they were expected to be deported to Russia. However, the Trans-NAO said that the sailors would be deported on Monday. “It is the weekend and we were told they would be released on Monday,” it said adding the sailors would be under arrest before deportation. The medical examination in the police station showed that only the captain had the level of alcoholic intoxication above the one allowed by Danish laws. “The captain will be under arrest till January 15 and no decisions have been taken yet,” the shipping company said. The cargo vessel Ivan Bobrov (home port – the Russian northern port of Arkhangelsk) went from the British port of Ipswich to Latvia’s Riga to be loaded with sawn timber. Then the ship should have come back.The crew are residents of the Russian northern Arkhangelsk region. In the morning of January 1 the cargo vessel was sailing past the Danish strait Oresund (the Sound) when it deviated from the course. The Danish coastal rescue officers suspected that the crew might be drunk and contacted the vessel by radio. Arriving at the ship, the police breath tested the nine crew members and found them drunk. The tests showed the captain, his assistant and chief engineer had concentration of alcohol in blood more than 0.5 per mille above the permitted limit for sailors.The three crew members were arrested and the ship anchored at the Elsinore port. They may face prison terms and the owner – a huge fine. Over the past two years there have been about ten cases when the captains of cargo vessels were detained in the Danish waters for being in a state of alcoholic intoxication, among them were Dutch, Polish, Russian and Ukrainian nationals. Source: TASS

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January 12, 2016, SEABOURN QUEST arriving in Montevideo Uruguay, summertime in the far South America.

Photo: Joe Seale onboard HAL’s Zaandam. (c)

Maersk Line cost-cutting includes significant fleet reduction

Maersk Line, the world’s largest container shipping company, is responding to difficult conditions in the shipping industry by drastically reducing the size of its container fleet along with planning other cost-cutting initiatives, Børsen reports.According to figures from the analysis house Alphaliner, the company’s fleet was reduced by 30 percent in the final months of 2015.

The MAERSK SERANGOON inbound for Antwerp – Photo : Willem Kruit ©

Taking the lead with fleet reduction Jakob Stausholm, the chief strategy and transformation officer at Maersk Line, told Børsen that Alphaliner’s figures present a dramatised picture of the development, but confirmed the company is focusing on its costs.“We have really done everything we can to adapt our capacity,” he said.“Clearly in the short-term we make every effort to control our costs, and here the part of our fleet that is chartered is the first place we start.”Stig Frederiksen, a senior analyst at Nordea Markets, highlighted that other shipping firms have not yet made similarly drastic fleet reductions.“Maersk is taking the lead and is the first to go in and take care of the serious situation in which the industry finds itself,” he said.

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A number of other cost-cutting measures are also underway at Maersk, including an initiative to save 250 million dollars (about 1.71 billion kroner) annually from 2018 on sales, salary and administration costs. To this end, 4,000 jobs are expected to be made redundant by the end of 2017. Source: The Copenhagen Post

The THARSIS outbound from Dordrecht passing Maassluis Photo : Kees van der Kraan ©

Navig8 Clinches $128.5 Loan For LR1 Newbuildings Navig8 Product Tankers has agreed a $128.5m secured loan from Credit Agricole Corporate and Investment Bank (CACIB) and BNP Paribas, which will finance four of the six 74,000-dwt LR1 product tankers being built in South Korea. The sextet were ordered in 2014 for around $45m each from STX Offshore & Shipbuilding and are due for delivery this year.The initial $64.3m loan from CACIB, which was announced in November 2015, covered the first two newbuilding contracts at STX. The third and fourth newbuilding contracts have been financed under the extended loan facility.Navig8 says the debt financing will cover approximately 65% of the contract price of each of these four vessels. Another four LR1s are under construction at SPP in South Korea, also for delivery in 2016, but will not be financed with the amended loan.“Thus far, we have closed senior debt and sale and leaseback financings for 19 vessels, including the vessels that will be financed under the amended facility with Credit Agricole and BNP Paribas,” Nicolas Busch, CEO of Navig8 Product Tankers, said in a release today.“We are also excited to continue to take delivery of our vessels on schedule and that the Navig8 Excelsior and Navig8 Stability have delivered into a strong product tanker market.” Source: Shipping Herald

MARITIME ARTIST CORNER

SS NORWAY Pictured at her home port of Miami on a Saturday morning in 1988, she is shown taking bunkers

before boarding commenced later that afternoon. By Marine Artist Robert G. Lloyd. England 2016 www.robertlloyd.co.uk

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The STENA TRANSPORTER moored alsongide the recently drydocked and repainted STENA SCOTIA in

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