safe bulkers takes cash for early highlights -...

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OUR LEGAL ADVISORS Surana & Surana — International Attorneys Head Office: International Law Centre, 61/63, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004, India. Tel : 91-44-28120000, 28120002, 28120003 Fax: 91-44-28120001, E-mail: [email protected] Safe Bulkers takes cash for early termination on five ships COMPENSATION under deals to take two ships back early from charterers pushed US-listed Safe Bulkers to increased profits for the first quarter. The Athens-based dry bulk owner is also set to gain more cash from a further three early charter terminations, it has disclosed. Net income rose to $62m, a jump of 163% compared with the first quarter of 2008, after the company booked $29.7m in early redelivery income. Charterers paid the company $25.5m for terminating the charter of the panama Efrossini, which had stood to earn a total $35.7m over the full term of the charter if it had run until the due date of January 2011. The vessel was redelivered in mid-March and has since been trading in the spot market, while Safe Bulkers also received a much smaller amount for the slightly early redelivery of another panamax in January. Net revenue for the first quarter decreased by 4.9% to $46.9m, mainly reflecting the employment of some ships on long term charters stemming from previous periods and only "to a lesser extent" lower spot market rates, said the company. A further three ships - the panamaxes Maria and Katerina, and the kamsarmax Pedhoulas Leader - are due for early redelivery in June and July following deals cut with their charterers. According to the company in return it is due to collect a total $38.6m to $41.9m, depending on actual redelivery dates, and the vessels will be available for re-employment although nothing has yet been fixed. It is estimated this is about half what might have been earned over the full term of the three charters. Safe Bulkers has also acted to reduce forward expenditure by cancelling two kamsarmaxes, forfeiting deposits of $7.2m on each vessel. Dropping the pair leaves a further five newbuildings still contracted on the company's order book. These include two capesizes on order in China priced at $80m and $81m, two post- panamaxes of 92,000 dwt on order in Korea at $73.5m each and a further, slightly larger, postpanamax orderd in Japan for $68.4m. Safe Bulkers' chairman and chief executive Polys Hajioannou said the company was continuing to "closely manage [its] business through the current recession." He said: "We selectively entered into early-termination agreements with respect to certain of our charters in exchange for compensation from those charterers. We successfully amended our loan agreements with our lenders to address the current depressed market values of drybulk vessels and in the second quarter of 2009 have reduced our capital expenditure exposure through selective newbuild cancellations." Highlights Page Safe Bulkers takes cash for early termination on five ships 1 Dry bulk shippers hope China will lead revival 2 Editorial 3 India is set to overhaul rules 4 China tells neighbours to keep off disputed islands 5 Save our sailors 6 Coast Guard Releases Antipiracy Rules 7 Naval patrols hampering Somali pirates 8 PTB develops system to detect explosives in freight containers 9 Maritime transportation industry crying for help 10 Call for Clarity 11 DG Shipping Notice 12-22 Vietnam Survey 23 VOL: 5 No. 6 BE INFORMED “BEST” WITH A PURSUIT TO TAKE EFFECTIVE DECISIONS JUNE 2009 Price: GB £ 1; US $ 2; Sing. $ 3; UAE Dhs. 5; IRS. 25/-

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Page 1: Safe Bulkers takes cash for early Highlights - themarinewavesthemarinewaves.com/wp-content/uploads/2015/01/2009_June.pdfOUR LEGAL ADVISORS Surana & Surana — International Attorneys

OUR LEGAL ADVISORS

Surana & Surana — International AttorneysHead Office: International Law Centre, 61/63, Dr. RadhakrishnanSalai, Mylapore, Chennai - 600 004, India.Tel : 91-44-28120000, 28120002, 28120003Fax: 91-44-28120001, E-mail: [email protected]

Safe Bulkers takes cash for earlytermination on five ships

COMPENSATION under deals to take two ships back early from charterers pushed

US-listed Safe Bulkers to increased profits for the first quarter. The Athens-based

dry bulk owner is also set to gain more cash from a further three early charter

terminations, it has disclosed. Net income rose to $62m, a jump of 163% compared

with the first quarter of 2008, after the company booked $29.7m in early redelivery

income. Charterers paid the company $25.5m for terminating the charter of the

panama Efrossini, which had stood to earn a total $35.7m over the full term of

the charter if it had run until the due date of January 2011. The vessel was

redelivered in mid-March and has since been trading in the spot market, while

Safe Bulkers also received a much smaller amount for the slightly early redelivery

of another panamax in January. Net revenue for the first quarter decreased by

4.9% to $46.9m, mainly reflecting the

employment of some ships on long term

charters stemming from previous periods

and only "to a lesser extent" lower spot

market rates, said the company.

A further three ships - the panamaxes

Maria and Katerina, and the kamsarmax

Pedhoulas Leader - are due for early

redelivery in June and July following deals

cut with their charterers. According to the

company in return it is due to collect a total

$38.6m to $41.9m, depending on actual redelivery dates, and the vessels will be

available for re-employment although nothing has yet been fixed. It is estimated

this is about half what might have been earned over the full term of the three

charters.

Safe Bulkers has also acted to reduce forward expenditure by cancelling two

kamsarmaxes, forfeiting deposits of $7.2m on each vessel. Dropping the pair leaves

a further five newbuildings still contracted on the company's order book. These

include two capesizes on order in China priced at $80m and $81m, two post-

panamaxes of 92,000 dwt on order in Korea at $73.5m each and a further, slightly

larger, postpanamax orderd in Japan for $68.4m. Safe Bulkers' chairman and chief

executive Polys Hajioannou said the company was continuing to "closely manage

[its] business through the current recession."

He said: "We selectively entered into early-termination agreements with respect

to certain of our charters in exchange for compensation from those charterers.

We successfully amended our loan agreements with our lenders to address the

current depressed market values of drybulk vessels and in the second quarter of

2009 have reduced our capital expenditure exposure through selective newbuild

cancellations."

Highlights

Page

Safe Bulkers takes cash for

early termination on

five ships 1

Dry bulk shippers hope

China will lead revival 2

Editorial 3

India is set to overhaul rules 4

China tells neighbours to

keep off disputed islands 5

Save our sailors 6

Coast Guard Releases

Antipiracy Rules 7

Naval patrols hampering

Somali pirates 8

PTB develops system to

detect explosives in freight

containers 9

Maritime transportation

industry crying for help 10

Call for Clarity 11

DG Shipping Notice 12-22

Vietnam Survey 23

VOL: 5 No. 6 BE INFORMED “BEST” WITH A PURSUIT TO TAKE EFFECTIVE DECISIONS JUNE 2009

Price: GB £ 1; US $ 2; Sing. $ 3; UAE Dhs. 5; IRS. 25/-

Page 2: Safe Bulkers takes cash for early Highlights - themarinewavesthemarinewaves.com/wp-content/uploads/2015/01/2009_June.pdfOUR LEGAL ADVISORS Surana & Surana — International Attorneys

M a r i n e W a v e s 2 June 2009

S a f e g u a r d O u r S e a s

(contd. on page 4)

It is for the universities to create knowledge and train minds whowould bring together the two, material resources and humanenergies. if our living standards are to be raised, a radical changeof spirit is essential."

– Dr. S. Radhakrishnan, Ex.President of India

"The greatest thing is not where we stand but of the rightthinking approach bagged with all relevant factors, continuedefforts of marching ahead from where we were progressing, witha pursuit to excellence".

– Dr. Chandran Peechulli

IMB pooh poohs idea of pirates'shipping intelligenge network.

The ICC International Maritime Bureau (IMB has dismissedrecent press reports claiming that pirates off the Somali coasttarget vessels in advance, allegedly making use of a networkof international contacts and in particular obtaining targetinginformation from London shipping sources. IMB directorPottengal Mukundan wore his skeptical hat in face ofspeculation that piracy has become an inside job. The IMBpoints out that vessels attacked so far have included a rangeof vessel types from fishing boats and coastal dhows to bulkcarriers and tankers. The vessels have been of many diverseflags, crewed by different nationalities, with various cargoeson board destined for a wide range of ports. Far from havinginside knowledge pirates have even attempted to attack navalunits mistakenly believing them to be merchant vessels.

The IMB also says: "Pirates target vessels that are easy toboard and in their vicinity. If an attack is successfully repelledthey move on to another vessel. All the evidence indicatesthat these are primarily opportunistic crimes. The suggestionthat vessels are targeted in advance using shore basedintelligence is spurious." Capt Mukundan says: "Suchunfounded speculation is mischievous and unhelpful. Itunjustly detracts from the good work done so far by theinternational naval forces and other agencies and divertsattention from the important task of providing a practicalresponse to the difficult challenges in the region."

He comments that there is no evidence to support allegationsthat London-based information channels have been used toprovide intelligence to the pirate gangs. He says: "There isno evidence to support these allegations. Further, there isno information in the public domain that would enable piratesto precisely locate a targeted vessel at sea and then to mounta successful attack off the Horn of Africa."

Dry bulk shippers hope Chinawill lead revival

Just a year ago, on May 20, 2008, the Baltic Exchange's drysea freight index <BADI> -- which tracks prices to shipcommodities such as iron ore, coal, grains and cement -- hitan all-time high of 11,793 points, driven by a seeminglyinsatiable hunger for raw materials among developing nations,especially China.

Halcyon days for the dry bulk companies that haul these rawmaterials by ship.

But by Dec. 5, that same index had fallen 94 percent to 663points, with much of that decline coming after the LehmanBrothers Holdings Inc collapse. In the credit vacuum thatensued, trade finance froze up, leaving goods unable to move.

The dry freight index has rebounded quite some way,quadrupling to 2,707 points driven -- once again -- by strongdemand from China and a loosening of the credit market.

"It has been quite a roller coaster ride," said JohnWobensmith. Chief Financial Officer of dry bulk shipper GencoShipping & Trading Ltd .

But the resurgence of the Baltic index raises a number ofquestions for dry bulk shippers: Have we hit the bottom? Is

China's renewed appetite for raw materials -- primarily coaland iron ore -- sustainable or is it a flash in the pan? Andwhat about all the ships that were ordered amid the euphoriaof the boom before the bust came?

Dry bulk industry executives say there are signs the pace ofthe decline has slowed and the worst may be over, both forbulk shippers and the global economy.

"Overall, when it comes to demand we're bumping along thebottom," said Seanergy Maritime Holdings Corp Chief ExecutiveDale Ploughman. "The underlying fundamentals in developingcountries haven't changed much and we're starting to see alittle normality coming back thanks in part to governmentstimulus packages.

"A lot of Western countries have used up their inventories andare tentatively replacing them. We should see factories startto come slowly, slowly back online."

CHINA THE DRIVER

Ploughman and other dry bulk executives point to China asa key factor in the stabilization of the market. Thanks to theChinese government's infrastructure-heavy $586 billionstimulus package, China has regained an appetite for rawmaterials after a brief hiatus at the end of the fourth quarter.

"China had a bit if a hiccup there," Genco's Wobensmith said."But it's coming back and leading the world right now."

Iron ore imports -- needed to produce steel roads, railways,bridges and buildings -- have hit record levels for the pastthree consecutive months and coal imports hit a record inApril. Industry executives say the full effect of Chinesegovernment spending has yet to be felt.

"I think there's somewhat of a time lag when it comes to thestimulus package," Wobensmith said. "I think we'll see moreof an impact from the stimulus in the third and fourth quarter."

Joseph Royce, CEO of bulk shipper TBS International Ltd ,agreed: "The Chinese recovery is here to stay."

But analysts are more divided.

In a note for clients, Credit Suisse analyst H Bin Toh wrote:"Our chief economist has warned that China's economicrecovery appears to have slowed ... With China iron oreinventory increasing, any steel demand weakening could meanless imports ahead," which would hit the Baltic index.

Chinese iron ore inventories stand at 70 million tonnes.

But Omar Nokta, an analyst at Dahlman Rose, did not thinkChinese iron ore inventory levels were too high.

"We are growing more positive on the outlook for the dry bulkshipping market," Nokta wrote in a recent note.

Page 3: Safe Bulkers takes cash for early Highlights - themarinewavesthemarinewaves.com/wp-content/uploads/2015/01/2009_June.pdfOUR LEGAL ADVISORS Surana & Surana — International Attorneys

M a r i n e W a v e s 3 June 2009

S a f e g u a r d O u r S e a s

From the Editor’s DeskThere is a need for the human side of the industry to raise its voice when confronted by injustice, please view…" An insight to know better of Shipping Ministry,Government of India " the DMET ians, prior to 1983 batch, "THE EXAMINERS", now in Mercantile Marine Department (MMD). Ministry of Shipping. We, from"Marine Waves Trust", a seafarers welfare body, call upon the egoistic, "Examiners of the Mercantile Marine" belonging to the Office of the Director-General ofShipping, who harass the candidates, to look back into their own veracity, a product of DMET after a School leaving certificate, similar to entry into Fishing vesselengine driver training into CIFNET, Kochi, Chennai and visakh, acquiring trade certificate which prepares them with pre-sea training and trains them for operationand maintenance of vessels (ships) and not a competency degree or diploma of academic standards, to design or manufacture a ship. Though, "work is worship" itis universally known that maintenance job is generally handled by the low graded category, as one has to be physically tough, and not the bright intelligent IITianguys, who opt for a clean job through the JEE merit list, with higher IQ and reflexes. Though they may have slogged their way to be a Chief Engineer like otherson ocean going vessels and taken up a shore job, with a stint period out at sea, they should thank god and their predecessors, having been placed as Class OneOfficer in GOI services without much competition, owing to the unique sea-service experience, since there is not much publicity as well, get elevated by virtue of

service to Joint D.G., or Addnl. D.G., and retire in the office of the D.G.S., Ministry of Shipping, Government of India, with after service- benefits, not on the strength of any superiorqualification nor long rich relevant experience at sea but doing desk-job conveying documentation, of the IMO conventions. It is obvious that a trade certificate of DMET is not a superioracademic qualification for the grade/post held, in the government department of our country; hardly others in any other department of our country can dream off and hence this sorry state ofaffairs. Hence, the existing situation is not encouraging mariners in general, to enhance their qualification. That's the reason; we now find under-graduates as Vice/Pro Chancellor Deans,Professors, HOD's etc. in deemed maritime universities, while on the other hand U.G.C. insists upon PG's qualifying the N.E.T. entry examination, for appointment as Lecturers, a mandatorycriterion, for all teaching jobs in universities and colleges and specialized Doctorates, in the respective field of study, for working as H.O.D.'s / Professors. Please note: Any profession, expectsits faculty to have advanced preparation in the discipline, in order to teach the most current content in the discipline.DMET backed examiners; behave as though fallen from the sky; owing to the enormous powers vested on them and hence harass better qualified candidates owing to inferiority complex. Is this,equality of status and of opportunity; and to promote among all the fraternity, assuring the dignity of the individual and the unity of the nation enshrined in our constitution? Self, beingoutspoken, made medically unfit to report for duty on ship as an engineer officer, in a Govt. of India enterprise in 1994 and a fair settlement of my final settlement not made as yet by the ShippingCorporation of India, Mumbai, as on date, being a victim of injustice. During these scary days of piracy, a mariner entry DMET ian, now Joint DG of MMD states: fishermen community need tobe given preference, as he now realizes, from his stint period out at sea, factor of courage required to work out at sea, much more nowadays owing to piracy menace. The real fact lies 'of thosemisfits who left early, working out at sea', lacks physically, mentally, or some serious domestic problem needing their presence ashore, has left the lucrative salaried (compensated for the risksand sacrifices), they initially compromised as against salary ashore, though with liberal benefits, but shore-based mariners are however much better placed comparing to other non-mariners. Weall know, training Institutions have an important place in the development of professional competence, employing mentors and dedicated trainers - to promote practical knowledge and a measureof assurance that best practice is always followed. Therefore, it is high time we instill dedicated training and assessment staff, to view simultaneously seafarer's and shipping company's feedbackand ensure that those afloat are keeping up their morale high and operating efficiently, safely etc. Career development is also becoming accepted in the shipping industry, importantly both, as itattempts to recruit and retain the best possible professionals, and to develop better talents, with improved knowledge, realizing better productivity.Discouraging feedbacks: Mariners in the office of the Directorate General Shipping are not responding to valid exposures of defects and deficiencies. Is it not that, change not necessary deemedpurposefully, egoism for neglecting, which was in bad faith? said through the editorials of "Marine Waves"? Is it, that we can see real signs of rejuvenation, by merely opening up an IndianMaritime University? While the need is for a positive, proactive and professional approach to education, training and career development, I am not very clear of DGS Notice No.11-TR(18)/2004-II dated 27th April, 2009 Re-Affiliation of Maritime Training Institutes, which states:- Affiliation of private institutes with the IMU is not mandatory. The institutes which are affiliated withother universities will continue to be recognized by DGS. Why not under the same umbrella of IMU under one fold, as a whole, for ensuring uniformity in quality of maritime education imparted,standardization of reasonable course fees and value etc. to reach out to the candidates on pure merit, who are physically and mentally fit to work on the high hard seas? Ref: May issue of "MarineWaves". As we progress into the crucial middle of 2009, these questions keep taunting and hurting the sentiments of any good citizen, who really wished to contribute to national development.Was it not to resist and protect a section of bad elements from scrutiny over the whole affairs? Was this not a discouraging factor to those who really wanted to contribute for the nationaldevelopment?Why don't such egoistic. MMD Surveyors be committed and morally responsible for all the Indian vessels detained overseas for technical reasons? As an examiner of MMD, in the grade of JointD.G., who stoops so low, to ask all the maritime institutions and companies to stop sponsoring or promoting "Marine Waves" for any advertisements? What a heartless, sinful and cheap act? Ifhe a true professional, should have been competent to answer/justify for all the expositions made through the editorial content of "Marine Waves", which is itself a clear case of incompetence/'Abuse of powers'. It's high time they are stripped of unwanted excessive powers, which they don't deserve with any regret for their karma. They carry more grumbling abuses and curses, forharassing and humiliating innocent candidates appearing for Viva Voce of MEO Class IV, MMD Exam., after their 4 year B.E. (Marine Engineering Degree), followed which the stipulated sea-service, for an entry level exam. Parents/Guardians expect their wards to turn out as professionals in pre-determined time, having availed Educational Bank Loan for Professional Degree Course,paying large sum of fees, i.e. for the extensive period of their study and thereafter the stipulated initial period of their sea-service, for eligibility to appear for the Certificate of Competency. Inreality, failure of candidates should be expected to be barely negligible (minimum), or else be justified, for the candidate to be convinced, of where their weakness lies for improvement.Otherwise, there is certainly some lacunae elsewhere. Engineering qualification is not a thing of simply acquiring informative knowledge. It requires continuous and intensive practice andtraining during the educational programs. Examiners, of MMD, has to be a role model, need to be theoretically and practically sound. Experience alone do not cover overall branch of engineeringbut limited to cover only the areas in which they happen to work. Inexperienced faculty often think in terms of their own teaching when the emphasis should be on student learning - a criticaldistinction.Please note, there are many who holds similar Certificate of Competency (COC), in private institutions, companies, etc. with job in-security, who have acquired higher qualifications or keptabreast with the times on their subject, with long rich relevant experience, they behave like gentleman, since they have worked-out on their toes for many reasons, to keep up to the competitivenessof the ever competing world of business. For e.g. How many Captains can be compared to Captain Vivekananda, who kept marching to progress from NIPM, to AMET and to VELs, with aspecialized institutional management-outlook, hardly smiles, a true disciplinarian, veteran, real marine-professional, interacting with national shipping administration, shipping companies,international relations with maritime colleges overseas, co-institutes, student-parent-tutor relations, etc., a true disciplinarian, to groom the budding officers to be fully committed and responsibleofficers, for their own, to the nation and to the world at large, whereas the person who followed, brought a strategy of picking award from abroad to exhibit as a marketing strategy (attractingcandidates for admission and for placement), since he couldn't improve the established quality of training imparted but for viewing only in the commercial angle.We also find (Mariners) tutors, hopping from one employment to the other and that's why, I was advocating the induction of tutors in maritime institutions, to be those who have the real teachingaptitude, who could stick and specialise. Inexperienced faculty often think in terms of their own teaching when the emphasis should be on student learning - a critical distinction. Certificate OfCompetency alone cannot be rested, as the only factor, DMET ian thinks in a short-sighted manner, to determine the suitability for teaching but for restricting to the demonstration of skills inoperation and maintenance. Is there a check by the national shipping administration, monitoring the faculty list as to whether they really and physically exist? But for meeting DGS requirementnorms, in documentation only? What is required is a fair, reasonable and just regulatory approval of mechanism deployed. Administration should promote good governance and that it should becitizen-centric.As a social activist, responsible member of "Marine Waves Trust", corporate member of Chennai Press Club, viewing seafarers welfare, it is my endeavour to make a wider coverage with thedeepest analysis and the sharpest insights of areas, where the seafarers are made to suffer, by exposing the loopholes and concealed facts, viewing and producing solutions, for timely correctiveactions, which is my priority since the seafarers live with risks and sacrifices, on ocean-going vessels doing hazardous jobs out on the deep seas. Being in the world shipping trade, they earnsubstantial foreign-exchange to their country of origin. What does the country give back to them(seafarers), in welfare or compensation of return? Secularism alone is nothing while compromisingwith quality of administration, which is not good for a sovereign democratic republic country, that of ours.

Dr. Chandran Peechulli, Ph.D; MBA; D.Sc; FIE(India), PgDIMS(UK), PgTED; FIIPE; MSEI; MSNAME(USA),Ex.Chief Engineer(Marine), G.M.(Tech) Crossworld Shipping, Managing Editor & Publisher – "MARINE WAVES" International Maritime Newsletter.

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M a r i n e W a v e s 4 June 2009

S a f e g u a r d O u r S e a s

W o r l d I n f o D e s k

(contd. from 2)

India is set to overhaul rules related tothe hiring of foreign vessels to ship cargooverseas: The country's maritime regulator, the director

general of shipping (DGS), has set up a committee headed bymaritime lawyer S. Venkiteswaran to review existing rules onhiring foreign ships, framed in 2002, and suggest ways to makethem more effective in protecting Indian-registered ships, saidan industry executive who is part of the panel, and didn't wantto be named.

Protectionism desirable? A cargo terminal at JN Port, Mumbai.The maritime regulator has set up a committee to reviewexisting rules. Ashesh Shah / Mint. The move is seen as a bidto make hiring of foreign ships more stringent and protect Indianships from competition at a time when local shipowners arereeling under a global slowdown.

A Mumbai-based shipbroking executive, who also declined beingnamed, said local entities are now opening offices in Singaporeand Dubai to bypass the country's ship hiring rules. Hiringthrough overseas offices for carrying Indian cargo doesn'trequire the regulator's permission.

Under the rules, public sector entities have to give the right offirst refusal to Indian-registered ships for transporting cargo inand out of India. That is, if a foreign ship quotes the lowestrate for a tender or enquiry floated by a public sector entity,an Indian ship has the right to match that rate and take thecontract.

In effect, foreign ships can be hired by public sector firms onlywhen Indian ships are not available. Hiring foreign ships alsoneeds regulatory permission.

Private firms looking to hire foreign ships to haul cargo haveto get a no-objection certificate (NOC) from the Indian NationalShipowners' Association (Insa) ahead of submitting anapplication to the regulator.

Currently, DGS allows local entities, both public and private, tohire foreign ships on contracts of up to two years if Indian shipsare not available. Similarly, for the country's coastal trade-carrying cargo on ships between two Indian ports-foreign ships

can be hired to transport cargo with the regulator's permission,but only when Indian ships are not available.

But in a recent case, a Chennai-based logistics firm was grantedpermission by the regulator to hire a foreign ship to carry cargoalong the coast after it filed a writ petition in the Mumbai highcourt complaining about delays in getting the clearance.

Caravel Logistics Pvt. Ltd was granted an NOC by Insa,according to procedure, but this was withdrawn when one ofits members, Shreyas Shipping and Logistics Ltd, said it hada ship for Caravel's requirements. But Caravel said the pricequoted by Shreyas for hiring out the ship was unacceptable asit was higher than the market rate.

Faced with a court case, Insa relented and granted an NOCto Caravela f t e rs e v e r a lmonths.

"After thisi n c i d en t ,we don'tw a n ta n y b o d yelse tocome foran NOC tohire aforeign shipciting this as an example," an Insa member said on conditionof anonymity.

The industry body says Indian ships are available and shouldbe utilized to the fullest extent so that everybody benefits ata time when freight rates and demand have plunged to thelowest levels in many years.

Agreeing that preference and protectionism for Indian shipswere desirable to an extent, critics, however, said it cannot beat the cost of customers.

"Protectionism should not be at the expense of customers," said

In the same note, he upgraded a number of dry bulk shippersto "buy," including Genco, DryShips Inc , Paragon Shipping Incand Safe Bulkers Inc .

ARMADA OF NEW SHIPS

The other issue is what impact a impending glut of new shipswill have. If that glut ever materializes, that is.

At the heady top of the boom, daily charter rates for Capesizevessels -- the largest dry bulk ships -- reached $230,000. Allof a sudden, everyone wanted a piece of the action and linedup to order new ships. That pushed the price tag for a newCapesize to $150 million and shipyard order books had a three-year backlog.

In the crash that ensued, Capesize prices plunged to $50 millionand the daily charter rate dropped to a measly $3,000. Charterrates have since recovered to around $35,000.

Some 300 or more ship orders have been canceled -- hard

numbers are difficult to come because many deals were agreedbetween privately-held companies -- but many ships are stillofficially due for delivery over the next two years, leaving someshippers worried about a glut.

"We don't know how many ships are going to hit the water,"Seanergy's Ploughman said. "But I am concerned about theimpact this is going to have on the supply side."

But Felipe Menendez, CEO of shipper Ultrapetrol Bahamas Ltdwelcomes the possibility of a surfeit of ships.

"We expect that dry bulk ships will be substantially underpricedin the next couple of years," he said. "The opportunities forus from this are going to be tremendous."

But TBS' CEO Royce believes a lot of shippers have arrangedto delay delivery of new ships, meaning that, if global demandreally does comes make a comeback next year, a lack ofavailable ships would push charter rates up.

"That could play in our favor in 2010," he added.

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M a r i n e W a v e s 5 June 2009

S a f e g u a r d O u r S e a s

the shipbroker mentioned earlier. "Rates should be competitive."

"Protectionism can never be unconditional," said anotherMumbai-based maritime lawyer on condition of anonymity."Otherwise, it will lead to cartelization and monopoly."

China tells neighbours to keep offdisputed islands: BEIJING – China has warned

neighbours to stay off disputed islands in the South China Sea,telling the United Nations it holds "indisputable sovereignty" overthe waters that are an arena for rising regional tension.

Chinese Foreign Ministry spokesman Ma Zhaoxu said hisgovernment made a submission to the United Nations assertingthat Beijing will not tolerate other countries claiming the islands,which lie near vital shipping lanes and which some believe maybe rich in oil and gas.

"China possesses indisputable sovereignty, sovereign rights andjurisdiction over the South China Sea islands and their nearseas," Ma said in the statement put on the Ministry's website(www.mfa.gov.cn) late on Monday.

"China will continue protecting its maritime rights and interestsbased on its consistent position and stance," said Ma, addingthat Beijing was open to negotiations on sea boundaries.

Ma's statement marked no change in China's general stanceon the islands, including what Beijing calls theNansha and Xisha islands, also called the Spratlyand Paracel islands.

But alongside recent rival statements about theislands, Beijing's actions underscore the growingtensions over the strategically important seas.

The Spratlys are claimed by China and, in full orin part, Taiwan, Vietnam, the Philippines, Malaysiaand Brunei.

The U.N. Commission on the Limits of theContinental Shelf is taking submissions in an effortto clarify the outer limits of states' sea claims whenthe continental shelf -- one marker used for suchclaims -- extends more than 200 nautical milesbeyond a baseline, such as their coasts.

Often these claims overlap and clash with othermaritime claims.

Vietnam has also recently pressed its claims over the SouthChina Sea islands and in March the Philippines signed a lawlaying claim to part of the Spratlys. In March, too, Malaysia'sprime minister landed on parts of the Spratly archipelago toassert his country's claim.

The South China Sea is the shortest route between the Pacificand Indian oceans, and has some of the world's busiest shippinglanes.

Chinese ships have also recently jostled U.S. navy ships inwaters of its coast, warning Washington not to operate vesselsin the seas Beijing says are part of its exclusive zone.

Who should defend ships against pirates?

Debate rages between shipping companies,military: With a recent string of pirate attacks off the coast

of Somalia making international headlines, it is becoming moreapparent that these terrorists of the seas are not going away.In 2009 alone, 102 incidents of piracy have been reported -nearly double the number from last year. While more than 28

countries are already working to counteract piracy operations,some people are wondering if they should go one step furtherand allow the ship's crew to carry weapons on board for self-defense purposes.

The Liberty Sun, the merchant ship carrying food aid to Kenya,was plastered last month by pirate gunfire and grenades. Thesailors, who did not appear to use weapons to fight back, hidin the engine room until the firing ceased. After a foiled attempt,the pirates finally withdrew from the fight.

Last week in a Senate hearing, Philip Shapiro, CEO and presidentof Liberty Maritime, owner of the Liberty Sun, decided he hadhad enough, and asked Congress to consider allowing privateships to protect themselves either with weaponry or militaryaid.

"We respectfully request that Congress consider clearing theobstacles that currently block ship owners from arming ourvessels, in self-defense, to protect our crews when it isappropriate," he said.

Somalia has been poverty-stricken and without government fornearly 20 years. The locals are poor, so they have turned topiracy as their only resolve. An independent Somali newsorganization called Garowe interviewed a pirate leader namedBoyah, hiding out in the Port of Eyl, a pirate's haven in Somalia,and usually their gathering point. In a translation of his

interview, he said, "Since the ocean is our government, we gointo the deep ocean and hijack unarmed cargo ships. That iswhat forced us."

Perhaps what plagues Shapiro the most is the "unarmed" partof Boyah's statement. Shapiro bel ieves that bringingsophisticated weaponry onboard the ships would be suitable,as the pirates themselves use rather high-tech equipment suchas GPS systems, rocket-propelled grenades, AKA-47s, andsometimes outside intelligence, possibly all at the expense ofbusinessmen who invest in and support these pirates, as is thespeculation.

Some surmise that the addition of weapons on board wouldincrease the risk of danger to the crew. To that, Shapiro says,"The conventional wisdom has been that if you put arms onships, you'll escalate the violence and delay the vessels becausethere are restrictions on vessels going into ports with weaponsin various parts of the world.

"But, essentially, it was a game changer with the MaerskAlabama. We have direct threats being made against the livesof American seamen. And I, as the president of a company who

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puts people onboard ships, has to be sure that I'm doingeverything to protect the safety of those crewmen as well asthe vessel and its cargo."

"What we would like to do is to have military embark securityteams from the U.S. military on our ships to protect them. Afterall, we are carrying government cargo. . . If [that is notaccessible], we want the right to hire private armed securityto protect our crew," Shapiro later said in an interview withCNN.

Some critics believe including military onboard ships would betoo difficult, as there are two wars going on and too many otherplaces the military needs to be. Shapiro says, "I understandthat there are limitations to what the government can do, andthat's why we're asking for the right to do our part. If we can'tget military security teams, then we need to have the right tohire private security teams to protect the lives of our crewmembers."

Vice Admiral William E. Gortney, commander of the U.S. NavalForces Central Command, understands the challenges of huntingpirates along 1,800 miles of coastline and through millions ofsquare miles of ocean. "Shipping companies have to understandthat naval forces can not be everywhere. Self protectionmeasures are the best way to protect their vessels, their crews,and their cargo." he said.

While Gortney too recommends that shipping companies useprofessional security teams as protection, he believes theyshould also take proactive measures to serve as the first lineof self-defense against the pirates. Some merchant mariners,he says, are already employing such measures as lookouts,evasive maneuvering, and even strong fire hoses that hamperpirates' ability to even climb onboard the ship. He has reasonto believe that the pirates are going after easy targets, so headvises all vulnerable ships - those that are slow or low to theground and thus easy to board - to be well prepared.

Similarly, Under Secretary of Defense for Policy Michele Flournoynoted last week before the Senate that 78 percent ofunsuccessful pirate attacks were thwarted by proactive actiontaken by the crews of the ships under attack, and that in only22% of those unsuccessful attacks were military or lawenforcement interventions involved in the positive outcome.

"This highlights the fact that the single most effective short-term response to piracy will be working with merchant shippinglines to ensure that vessels in the region take appropriatesecurity measures themselves. . .With appropriate on-boardsecurity measures in place, the vast majority of pirate attackscan be thwarted without any need for military intervention,"she says.

Save our sailors: A former sea captain and chairman

of Bahrain International Seafarers' Society (BISS) is urging theauthorities at the new Khalifa Bin Salman Port (KBSP) to provideappropriate facilities for a welfare centre for the forgotten peopleof the sea.

Bahraini Captain Ali Haji Hasan is passionate about the welfareof seafarers and is committed to offering them a suitablerecreational space when their ships dock at the new $530 millionport. Currently the seafarers will be faced with having to makedo with a temporary shelter when the facility - also known asthe Bahrain Gateway - is fully operational. Astonishingly, thecharity has been forced to dig deep into its own meagre fundsto buy two portable cabins. "Bahrain, as an island, is dependant

on imports most of which come through the port and it is theseafarers who bring all the essential commodities to us. "Mostof these seamen and women are unseen people and when theirships dock at the port the only thing they want is to get off,walk on steady ground and talk to people," said Captain Ali."What bothers me is that Bahrain has been hospitable to theseafarers in the past but over the years the island's hospitalityhas been diminishing for the very people it depends on."

THE Bahrain International Seafarers' Society (BISS) has beenoperating at Mina Salman port since 1982 and is the onlycharitable organisation in the kingdom that looks after thewelfare of visiting seafarers by providing them withcommunication and recreation facilities at the port. At the timeof its inception it had several shipping agencies and

multinational companies along with St Christopher's Cathedraland the port authority as its respective board members. Backthen, the Seafarers' Welfare Centre was a sprawling facility witha tennis court, basketball court, a game area, a library and tworecreational lounges with television, telephones to call homeand a convenience shop to buy the basic essentials.But in 2002,the welfare centre got in the way of major road works plannedinside the port and was moved to a single-room 'temporary'location with a promise by the port authorities to provide betterand more permanent premises. A telephone facility, computercabins, bathrooms, library and convenience shop were allcrammed in despite the facility being a quarter of the originalpremises. "And we have been here ever since!" said CaptainAli.

Support and funding from some of its major board membercompanies has also dwindled but the society has managed tokeep its head above water with help from the local communityand its remaining board members. "We have a Mission toSeafarers in every port of the world with its headquarters inLondon. In Bahrain, the mission operates within BISS andprovides funds and chaplain services to visiting seafarers," saidThe Very Reverend Alan Hayday, Dean of St Christopher'sCathedral and one of the board members of BISS. "It is ourduty to look after the very people who bring us the commoditiesthat we need to survive on the island. "Presently Khalifa BinSalman Port authorities have allocated a 'temporary' spacewithin a warehouse close to the customs and excise departmentfor the welfare centre.

"BISS has bought two portable cabins out of its own meagrefunds which will be put on that space. But in my opinion it isthe port's duty to provide us with the facility and we shouldonly use our funds to run the welfare centre," said Rev Hayday

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who is retiring to UK after spending seven years on the island.KBSP stands on reclaimed land at Hidd and occupies a900,000sq/m site which, although around the same size as theold Mina Salman facility, has vastly expanded capabilities. Itsstorage capacity is more than double that of Mina Salman andan increase in water depth enables larger ships to dock. Atpresent, much of the Gulf's shipping needs are met by Dubai'smassive Jebel Ali Port. However, KBSP with its excellent locationnext to Saudi Arabia and the Qatar-Bahrain causeway in thepipeline will provide an ideal hub for shipping companies.

With an increasing number of ships coming into the new port,numbers of sea men and women visiting the welfare centre isexpected to vastly increase. "In 2007, 4,313 visitors logged inat the welfare centre. In 2008, the numbers shot up to 5,148and in 2009 till the month of April we had 2,634 visitors. Twoportacabins are simply not enough to cater to the number ofvisiting seafarers," said Captain Ali.

The Seafarers Welfare Centre is open to all sea men and womenof all nationalities and religion regardless of their rank on theship. Serving seamen in Bahrain today said how important thefacility was to them. "A welfare centre like this is crucial forus especially for those who do not get shore leave and arerestricted to the port," said Aqil Khan, 37, from Mardan in thenorth of Pakistan. He is the second officer on board the Greekowned vessel, Antonios 1, that docked on Mina Salman portlast month, and has helped guide the vessel through theperilous pirate-invested waters of the Gulf of Aden."I use thetelephone to make contact with my family in Pakistan as theship's communication system is restricted and expensive to use,"he added."I get the opportunity to use the internet and meetother sailors from different ships which is very important whenI have been on ship for several weeks."

Captain Emad Fathelbab of the Osnabruck, a vessel thatroutinely visits Bahrain, deemed the Seafarers Welfare Centreas a valued facility frequented by his crew members when offduty. But apart from providing much needed recreation, BISSprovides the necessary support to the sailors stranded in Bahrainwith Captain Ali rallying to fight for the sailors' rights. "In thelate 1990s, 26 crew members from Burma were stranded inBahrain for two years due to a dispute between the shippingcompany and the contracting company. "We fed them andboarded them till they left the island. The people who bear thebrunt of such disputes are the seafarers as no one comes totheir rescue, at times not even their own embassies," saidCaptain Ali quoting several cases of stranded seamen which iscommon place in major ports around the world.

"You can only understand the loneliness and misery of aseafarer if you have been one," said the 65-year-old captainwho first went to sea in 1964. He retired in 1998 after holdingvarious managerial positions at the port. He has been thechairman of BISS for the last 12 years and holds seafarers'welfare close to his heart.

BISS submitted a feasibility study in December 2008 to theGeneral Organisation of Seaports and will be moving to the'temporary' space at KBSP this week with the help of one ofits supporters, Gulf Agency. But the charity hopes that portofficials at the higher office will understand the need for a morepermanent and adequate facility. "Going by past experience Ifeel that maybe the port authorities do not appreciate oursociety's services but I am still hopeful," said Captain Ali. "I'dlike to think that the port authorities will realise the need ofseafarers and respond in an appropriate manner," added RevHayday.

Along with the move, BISS is desperately trying to find waysto generate its own funds for its survival. As support anddonations from big companies have dried up it would be veryeasy for the charity to go under especially with an expectedincrease in demand for its facilities. "We will continue to workand operate the centre despite difficulties because if we packup lots of unseen visitors to Bahrain will suffer," said CaptainAli.No one was available to comment on the issue at the newport despite repeated requests by GulfWeekly.

Coast Guard Releases Antipiracy Rules: The

United States Coast Guard has released newly revised guidelinesfor U.S.-flagged ships traveling through pirate-infested waters,reports The Navy Times.

U.S.-flagged vessels must submit plans for combating terrorismand piracy that incorporate the guidelines by May 25.

Most vessels that move through high-risk areas such as the Gulfof Aden have had some type of plan, but the measures nowmust be approved by the Coast Guard, said Rear Adm. BrianSalerno, assistant commandant for marine safety, security andstewardship.

The directive requires that ship owners "assess and plan fortheir vulnerabilities," he said. "If they haven't taken adequatemeasures, then we can suggest they take more stringent ones."

The new guidelines were heavily inspired by the recent captureof the U.S.-flagged ship, the Maersk Alabama, in early April offthe coast of Somalia in the Indian Ocean. During the boarding,the vessel's captain, Richard Phillips, was taken hostage on thevessel's lifeboat. After more than five days held captive, U.S.snipers killed his three captors. The fourth pirate hadsurrendered earlier.

The new guidelines take into account the pirates' increasingsophistication, including their ability to attack farther and fartherfrom shore as well as their tendency to launch smaller, fasterboats from a mother ship, according to The Navy Times.

Rear Adm. Brian Salerno, assistant commandant for marinesafety, told the paper that a big change from the guidelineslast year was mandated pirate lookouts. Other recommendationsinclude traveling in well-established shipping lanes, using evasivemaneuvers, going faster, and strengthening their communicationand cooperation with naval patrols in dangerous areas.

The new guidelines will not be publicly released, saidDepartment of Homeland Security spokeswoman Amy Kudwa,because the document has been stamped "Sensitive SecurityInformation."

China Submits MaritimeClaims to UnitedNations: China says it will rely on peaceful negotiations to

establish its maritime boundaries, even as it aggressively rejectsclaims by other countries to territories in the East and SouthChina Seas.

At the heart of the matter are two groups of rocky islands inthe South China Sea. China calls them the Nansha and Xishaislands. Internationally, they are better known as the Spratlysand the Paracels.

They lie near vital shipping lanes and are believed to be richin oil and gas.

The issue of disputing claims to the islands is in the news againbecause Wednesday is the deadline for countries to submit to

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the United Nations their claims to territories on the outer limitsof their continental shelves. This roughly means territories thatare more than 200 nautical miles beyond their coasts.

The China Daily newspaper Wednesday quotes Chinese ForeignMinistry spokesman Ma Zhaoxu as reiterating his country's claimof what he calls "indisputable ... jurisdiction over South ChinaSea islands and their adjacent waters." At the same time, hesaid the Chinese government will resolve maritime issuesthrough peaceful negotiations.

The Spratly islands also are claimed, in full or partially, byBrunei, Malaysia, Taiwan, the Philippines and Vietnam.

The article says China has urged the United Nations Commissionon the Limits of the Continental Shelf not to review a submissionfrom Vietnam and a joint submission from Vietnam andMalaysia. It quotes the Chinese mission to the world body assaying the submissions infringe on China's sovereignty in theSouth China Sea.

The paper quotes Chinese Academy of Social Sciences maritimelaw expert Wang Hanling as saying that, by submitting theirdisputing claims to the United Nations, the two countries aretrying to make this an international issue.

The news follows the Chinese Foreign Ministry's recentannouncement that it has set up a Department of Boundaryand Ocean Affairs. Foreign Ministry spokesman Ma Zhaoxu saysthe new department will deal with land and maritime boundariesand is aimed at increasing diplomacy with neighboring countries.

Ma says this new office is part of what he describes as an"appropriate reshuffle" for a country that has such long landand sea borders.

Another maritime dispute involves overlapping claims with Japanfor the Diaoyu or Senkaku Islands in the East China Sea.

The new department is also tasked with dealing with China's22,000 kilometers of land border with 14 other countries. Chinasettled its border demarcation with Vietnam in February andwith Russia last October. China's only outstanding land borderissues are with Bhutan and India.

Naval patrols hampering Somali pirates:EU, NATO: BRUSSELS (AFP) - Pirate attacks off lawless

Somalia are becoming less successful thanks to internationalpolicing efforts, but there is no immediate end in sight to "thescourge", NATO and EU officials said Wednesday.

"We have seen a substantial reduction of success rate inpirates's attacks," said British Vice-Admiral Philip Jones,operational commander of the European naval force Atalantabattling the high-seas criminals who hijack ships for ransom.

The international, including NATO, efforts to thwart the pirateshave been helped by the onset of the monsoon season, he said.

NATO spokesman James Appathurai agreed that seajackingswere down, but stressed that the total number of pirate attackswas still increasing, it's just their effectiveness which is droppingoff.

"We have seen a significant increase in the number of attacksbut a decrease in the effectiveness of those attacks," he said.

Those sentiments are backed up by figures from theInternational Maritime Bureau's (IMB) Piracy Reporting Centrewhich reported Tuesday that the total number of pirate attacksin the Gulf of Aden and off the east coast of Somalia this year

have already overtaken the figure for all of 2008.

In 2008, there were 111 incidents including 42 vessels hijacked.So far in 2009, there have been 114 attempted attacks but only29 have resulted in hijackings, the IMB said.

Naval ships from the European Union, NATO and other US-ledcoalitions have thwarted several attacks in recent days, eitherpreventing hijackings or capturing suspected pirates.

Some 20 foreign warships patrol the waters off the coast ofSomalia -- on one of the globe's busiest maritime trade routes-- on any given day.

But the area is huge and pirates have adapted their tactics tohunt for vessels several hundred nautical miles into the IndianOcean, further away from the heavily-patrolled shippingcorridors of the Gulf of Aden.

Jones said that Atalanta had in recent weeks captured four ofthe pirates' main "mother ships," from which they launch raidsin smaller faster craft.

However he warned that "the scourge of piracy will not beovercome overnight."

"We don't have enough ships to escort every individual ship...We need literally hundred of warships but we make adifference," he added.

Italian Prime Minister Silvio Berlusconi announced on Saturdaythat the problem would be on the agenda at a G-8 summit inItaly in July.

Bill calls for shake-up of UK navigationauthorities: RADICAL shake-up of the lighthouse

authorities responsible for navigational safety around the BritishIsles will be proposed in a parliamentary bill to be publishedtomorrow.

This marks the latest stage in a long campaign by shipownersto persuade the government to reduce charges levied oncommercial vessels calling at UK ports by cutting light dues thatcover the cost of providing lighthouses, beacons and buoys.

Lord Tony Berkeley is sponsoring the Marine Navigation AidsBill 2009 that will be introduced in the House of Lords.

"Light dues place UK plc at a staggering disadvantage in today'sglobal economy," he said.

The shipping industry has been particularly incensed byproposals to lift the light dues levy from 35 pence to 41 penceper net registered ton at a time of such deep recession.

The Bill proposes a reduction in light dues "in order to addressthe inequity of the system which damages Britishcompetitiveness and tarnishes the country's reputation as theglobal centre for maritime business".

Companies lobbying for a change in the light dues system notethat these taxes are not applied in most EU member states andwhere they are, the amount is minimal compared with Britain.

To achieve an immediate and significant reduction in UK lightdues, the Bill proposes ending the liability of the GeneralLighthouse Fund to provide funding for the maintenance oflights and navigational aids in the Republic of Ireland.

That would save £16m a year.

The Bill also calls for rationalisation the three General LighthouseAuthorities and their support services responsible for

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administering navigational aids in UK and Republic of Irelandwaters. Three separate bodies, Trinity House, the NorthernLighthouse Board for Scotland, and the Commissioners of IrishLights, currently share this work between them.

But combining them in some way would prove controversial,with traditionalists opposed to restructuring such a venerableinstitution as Trinity House.

But those calling for greater efficiencies have won many newsupporters in recent months.

The UK's shadow shipping minister Julian Brazier this weekattacked the government over proposed increases in light dues.

In an exchange during a European Standing Committee todiscuss a European Commission proposal to create a singleEuropean Maritime Zone, and free up competition in theshipping sector, Mr Brazier described light dues as "one greatalbatross hanging round the neck of the UK shipping industrycompared with almost all its competitors in the EU".

He cited specific examples of shipping being discouraged fromcalling at British ports, with Cosco pulling one of its bigcontainerships out of a UK service, and transhipping inRotterdam instead.

"Maersk has announced that it is considering pulling five outof six of its containerships out. Grimaldi and APL have also madeannouncements; I heard more about Grimaldi's position in avisit to Tilbury," Mr Brazier added.

Two big container lines believe they would shoulder the bruntof any increase in light dues

Of the additional £21m that would be raised from the increase,almost one third would be paid by ships calling at the samesingle cargo facility in Felixstowe, of which Maersk andMediterranean Shipping Co would contribute £3.6m.

Mark Bookham, chairman of the Independent Light Dues Forumthat has led the campaign, warned that unless the tax isreduced, "many cruise and deepsea operators will simply lookto avoid calling at the UK in future.

He went on to say that the Bill was born out of sheer frustration.

"The government has failed to take decisive action on this issuefor years and the shipping industry feels the options left arelimited," he said.

UK port operators, through the One Voice coalition, and theLights Advisory Committee, are also calling for the governmentto end the subsidy to Ireland and to re-consider the proposedlight dues increase.

PTB develops system to detect explosivesin freight containers: Physikalisch-Technische

Bundesanstalt (PTB) and an Israeli research centre havedeveloped a cargo inspection system that detects conventionalexplosives - as well as drugs - with the aid of neutronradiography.

The research work is intended to lead to permanently installedfacilities at airports and border crossing points, where fullyautomatic inspections of containers and cargo pallets will takeplace.

In a second step, the scientists now plan to use gammaradiation in addition to neutron radiation to detect nuclear andradioactive materials.

Neutron resonance radiography is the method that the PTBscientists and their Israeli colleagues have so improved to thepoint where very small quantities of explosives can be detected.

In practice, this inspection method will not be used for smallpieces of freight, such as cases and baggage, as the relativelylarge facilities cannot be accommodated at every airport.Therefore, the method is suitable only for freight containers orcombined baggage and pallet freight.

Radiographing with gamma radiation supplements the neutrontechnique, as gamma radiation is especially suitable for thedetection of heavy elements, such as fissionable and radioactivematerials.

Research in this field not only has a security-politicalbackground, but also an economical one: In 2007, the USGovernment adopted a law that requires that, by 2012, all goodsshipped via sea and air into the US must be inspected for illegalhazardous materials prior to being loaded at the foreign harbouror airport.

KVH Expands Versatile TracPhone V7System with New Crew Calling Solution:Offering affordable access to VoIP calling via KVH's mini-VSATBroadband service, the crew calling option will help improvecrew morale and retention.

Commercial maritime operators investing to improve crewretention and welfare now have a new tool to call uponfollowing today's introduction of the mini-VSAT Broadband(SM)Crew Calling System by KVH Industries, Inc., (Nasdaq: KVHI)at Nor-Shipping 2009 in Norway. This optional system expandsthe enhanced VoIP telephone services offered by KVH's mini-VSAT Broadband service and TracPhone(R) V7 antenna toprovide an additional dedicated telephone line specifically forcrew calling.

"In the highly competitive commercial maritime industry, offeringaffordable communications is an easy and effective step to helpattract new crew members, improve crew efficiency andsatisfaction, and reduce the costs incurred by crew turnover,"explained Brent C. Bruun, KVH's vice president of sales andbusiness development. "In a recent survey by ShipTalk, Ltd.,professional mariners ranked access to a telephone as thesecond most important facility to have on board a vessel. Byadding our crew calling option to a new or existing TracPhoneV7 system, vessel owners and operators will take full advantageof their mini-VSAT Broadband service connection while enjoyingthe benefits to crew morale and retention rates that come whencrew members are able to stay in touch with friends and familyanywhere on the globe."

Adding the crew calling option is a simple process. A dedicatedCrew Calling Gateway is connected to the TracPhone V7, therebyestablishing a link for a dedicated crew calling phone. Crewmembers will be able to purchase a calling card from the ship'scaptain or buy minutes directly from KVH via credit card. Theywill then be able to place calls anywhere in the world via thisdedicated phone while the ship's business is handled via thetwo enhanced VoIP lines that come standard with mini-VSATBroadband service.

Together with the KVH TracPhone V7, the mini-VSAT Broadbandservice comprises the first end-to-end 24-inch VSAT hardware,service, and support package available for maritimecommunications. The mini-VSAT Broadband service currentlyoffers Voice over IP telephone and Internet access as fast as

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512 Kbps (upload) and 2 Mbps (download) at fixed monthlyrates to mariners throughout North America, the Caribbean, theNorth Atlantic, Europe, the Northern Pacific, and the PersianGulf. KVH also recently announced an agreement with SP-JSATto expand mini-VSAT Broadband coverage into Asia Pacificwaters and the Indian Ocean.

Maritime transportation industry cryingfor help: Hurt by plummeting freight rates and poor

demand for ships because of global recession, local shipownershave asked the government to strictly enforce rules that protectthem from foreign competition in Indian waters.

The country's coastal trade-transport of cargo between differentIndian ports-is reserved for Indian-registered ships. Foreignships are allowed to carry cargo along the coast only whenIndian ships are not available for the job, and that too withpermission of the maritime regulator, the director general ofshipping.

However, recent cases, notable among them being one involvingChennai-based firm Caravel Logistics Pvt. Ltd, have led localshipowners to demand a tightening of the rules. Shipownershave managed to convince the regulator to set up a workinggroup, headed by maritime lawyer S. Venkiteswaran, to reviewthe rules framed in 2002 for hiring foreign ships and suggestways to make them more effective.

Protectionism to a certain extent is desirable, but it can neverbe unconditional and surely not at the expense of Indiancustomers. Otherwise, it will result in cartelization andmonopoly, two highly avoidable evils.

For some time now, local shipowners have been ganging upto scuttle competition along the coast from new entrants byusing the rules, including the requirement of a so-called no-objection certificate (NOC) from the industry lobby group, theIndian National Shipowners' Association (Insa).

Caravel had to threaten Insa with a court case before it couldsecure an NOC to hire a foreign ship to start a coastal shippingservice for containers. The logistics firm was left with no choicebecause a local owner was willing to offer his ship, but at ratesnot acceptable to Caravel.

Local private entities such as Caravel that are looking to hireforeign ships will have to first take an NOC from Insa beforesubmitting an application to the regulator for permission to hireforeign ships to haul cargo along the coast. The NOC is toensure that an Indian ship of the capacity and specificationrequired by the cargo owner is not available for the work.

However, NOC has become a convenient tool for localshipowners to block competition from newcomers. Given theeconomic downturn, local coastal ship operators say they havesufficient space on their ships that could be utilized bycompanies such as Caravel to transport container cargocollected from customers. The existing operators are also readyto rent out their ships, but only at rates that are higher thanthose prevailing in the global market. If Indian ships are to behired at higher rates, it becomes uneconomical for newcomersto run shipping services. And, why should they be forced tohire Indian ships at higher rates when there are plenty of shipsavailable in the global market at dirt cheap rates?

The NOC rule has been misused by local ship owners to furthertheir own vested interests, causing much harassment to newentrants. Why should an association such as Insa control thefundamental right of an Indian citizen to do business? Whyshould new entrants be at the mercy of an association if theywant to do business?

Out of some 120 shipping companies in India, Insa hasrepresentation from barely 37 firms. Out of this, up to eightfirms control 85% of India's shipping fleet by capacity.

Local owners should offer competitive rates on a par with thoseprevailing globally or let new entrants hire ships from the globalmarket to operate coastal container shipping services. Thereare several instances where Insa has delayed granting an NOCjust to discourage newcomers.

Competition in any area of business is good because it drivesdown prices for customers. Apart from coastal containershipping, it could benefit India's state-run oil refiners that arenow at the mercy of a few operators to ship petroleum productsalong the coast, and have to pay higher rates that form a partof the subsidized retail fuel prices.

India's coastal shipping business could be a potential area ofinterest for the Competition Commission of India, the antitrustbody, as it settles down in office. The NOC rule has becomeineffective in protecting the cause of customers and should bescrapped in their best interests.

LEGAL

Ninth Circuit Enforces Forum SelectionClause: Katie Matison of Lane Powell's Seattle office reports

on a recent case examining the Himalaya clause:-

Last week in Mazda Motors of America, Inc. and IndemnityInsurance Co. of North America v. M/V COUGAR ACE, ___ F.3d___ (9th Cir. 2009), a panel of the Ninth Circuit Court of Appealsenforced the Japanese forum selection clause contained withinan ocean carrier's bill of lading in an in rem action filed by thecargo owner seeking damages for cargo damage against thecontracting vessel. Specifically, the Court held that the M/VCOUGAR ACE, which was operated but not owned by the oceancarrier, Mitsui, was entitled to assert the defenses and protectionof the Carriage of Goods by Sea Act ("COGSA") contained withinMitsui's ocean bills of lading that were extended to the M/VCOUGAR ACE through the Himalaya Clause. FactualBackground: The ocean carrier Mitsui O.S.K. Lines ("Mitsui")issued six identical bills of lading to Mazda Motors of America,Inc. ("Mazda") for the carriage of automobile cargo from Japanto certain United States ports. The Mitsui bills of ladingspecifically identified the carrying "Vessel" as the M/V COUGARACE. Although Mitsui operated the M/V COUGAR ACE, the Vesselwas owned by MOB Cougar (PTE) Limited ("MOB Cougar"). Theautomobile cargo allegedly suffered more than $40 million inwater damage during the Pacific crossing aboard the M/VCOUGAR ACE. Plaintiff Mazda and its subrogated insurer,Indemnity Insurance Company of North America, (collectively"Mazda") filed an in rem lawsuit against the M/V COUGAR ACE.The lawsuit did not contain in person am claims and neitherMitsui nor MOB Cougar were named as defendants to thelawsuit.

MOB Cougar made a restricted appearance in the in rem actionfiled by Mazda in the United States District Court in Oregon toclaim the Vessel and defend the suit pursuant to SupplementalRule E(8) of the Federal Rules of Civil Procedure. MOB Cougarmoved to dismiss based upon the forum selection clausecontained in the Mitsui bills of lading mandating that anylawsuits arising out of the carriage of the cargo could only bebrought in Tokyo Japan. The trial Court rejected Mazda'scontention that the forum selection clause was applicable onlyto in person am lawsuits. The Court held that (i) the M/V

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COUGAR ACE ratified the terms of the bills of lading bytransporting the cargo and (ii) that the Himalaya Clause entitledthe M/V COUGAR ACE in its capacity as the carrying vessel toenforce the forum selection clause because the M/V COUGARACE was third party whose services contributed to theperformance of the carriage of cargo contract by Mitsui. Mazdaand its subrogated insurer appealed the trial court decision tothe Ninth Circuit Court of Appeals.

The Ninth's Circuit's Analysis: The Subcontracting Vessel wasNot A Party to the Mazda and Mitsui Contract of Carriage. Thepanel of the Ninth Circuit examined the scope of the forumselection clause and choice of law provision contained withinall six identical bills of lading providing that (i) each bill of ladingshould be governed by Japanese law and (ii) that any disputecould only be pursued in the Tokyo district Court in Japan. TheCourt further examined the breadth of the Himalaya Clauseunder the Subcontracting and Indemnity Provision of the billsof lading. The Court identified Mazda as the merchant andconsignee of the goods and the carrier as Mitsui who issuedthe bills of lading. The panel found that the "M/V COUGAR ACEwas the' subcontractor' . . . "directly employed by the carrierin performance of the carriage."

The Court applied general contract principles for interpretationof the Himalaya Clause in conformity with Ninth Circuitprecedent in Star rag v. Maersk, Inc., 486 F.3d 607, 616 (9thCir.2007). The panel held that the plain contractual languageof the Himalaya Clause in Mitsui's bills of lading extended theprotection of COGSA to Mitsui's subcontracting vessels such asthe M/V COUGAR ACE. The Court held that the M/V COUGARACE was a "sub-contractor" because "it plainly assisted theperformance of carriage as the carrying vessel, it wasindispensable to that performance. Mazda does not dispute theforum selection clause is a provision . . . benefiting the carrier,so we see no reason why the forum selection clause shouldnot benefit the defendant vessel here." The Court relied uponthe analysis of Mori Seiki U.S.A.,Inc. v. M/V ALLIGATORTRIUMPH, 990 F.2d 444, 450 (9th Cir. 1993) holding "therefore,the COUGAR ACE, not unlike a stevedore, is 'directly relatedto the carrier's responsibilities under the carriage contract' andcan benefit from the Himalaya Clause."

The panel further analyzed the ratification doctrine containedin the Fifth Circuit decision of Lykes Lines, 398 F.3d 319, 325(5th Cir. 2005) stating the general ratification rule as follows:When cargo has been stowed on board the vessel and bills oflading are issued, the bills of lading become binding contractson the vessel in rem upon the sailing of the vessel with thecargo. A sailing of the vessel constitutes a ratification of thebills of lading. This action gives rise to a maritime lien whichis the basis of the in rem recovery.

Call for Clarity: The marine people at Avon have been

raising timely questions this week on the pass the parcel gameoften played between Hull and P&I over the issue of piracy.The broker is urging P&I clubs to remove their war risksexclusion to give ship owners greater coverage certainty in theevent of a piracy attack. Continuing attacks are highlighting theneed to clarify ambiguity in club cover: currently, P&I clubs donot exclude liabilities arising from piracy, but the loosely definedexclusion of 'weapons of war' could return piracy liabilities tothe primary hull war risks underwriters.

Stephen Hawke, executive director at Avon, says: "Piracy attackshave focused ship owners' attention on the need for certaintyof cover with the right insurer. Currently, the P&I war exclusion

is open to interpretation, given that pirates invariably employweaponry. This is giving cause for concern and the insuranceindustry needs to resolve this lack of clarity. With P&I clubs'expertise in handling liability claims, it would be a positivesolution - provided the cost implications are neutral - to shiftprimary P&I war risks cover from hull insurers to the P&I clubs."

Avon is also asking P&I clubs to define their definitions of cover:Is piracy covered by the club rules?

When is piracy not covered by the clubs?

How is piracy defined and how is it distinguishable fromterrorism?

What is the definition of "weapons of war"

Are ransom payments recoverable?

The broker says P&I clubs must also provide advice on thefollowing regularly asked questions by ship owners:Should an owner employ armed guards?

Is cover prejudiced by the usage of armed guards and/or bysecurity firm contracts?

Where can an owner look for the best advice on securitymatters?

If there is an attack, should General Average be declared andwhy?

The ambiguity has been there for decades. As ever it is basedupon the on-off exposure of shipping to piracy and theeconomic implications of a less than steady premium stream.

There are still a significant number of sponsorship opportunitiesfor firms wishing to provide case notes and/or a countrysummary from their jurisdiction on our Maritime AdvocateArchive site. Decisions from the 11th Federal Circuit and statecourts of appeal will be supplied by new sponsors Gordon&Eliasin Houston, Texas whom we are delighted to welcome.

People and Places: The regular bulletin of the

Australian Quarantine Service, to which your editor is devoted,carries news of Lyle Squire's company Cairns Marine which hasjust completed shipping nearly 200 tonnes of aquarium animalsto the Middle East to be displayed in one of the largest marinetanks in the world at the Dubai Mall.

The shipment included reef fish, grey reef sharks, moray eelsand a 200 kilogram Queensland grouper. AQIS inspected thefish prior to export to certify that the animals were healthy.

Squire says his company exports to 20 different countriesincluding Europe, the United States and Asia, but Dubai is anew market. "Australian aquarium fish are some of the mostexpensive in the world because the hand capture process isregarded as the world's best practice," he says

'Many fish sold in the international marine aquarium trade havebeen collected using cyanide to stun the fish prior to capture.This destructive fishing practice kills many smaller organismsand degrades the reef habitats.'

'The result of using cyanide can eventually kill the collected fishand there's nothing more expensive in this business than a deadfish,' he said.

Cairns Marine employs 30 full-time staff including seven divers,and has two boats which are used to collect specimens fromthe Great Barrier Reef, Coral Sea and inter-reef areas.

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M a r i n e W a v e s 12 June 2009

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Application-cum-Approval for reduced safe manning in deck department,applicable to an Indian vessel when laid up

(To be read with NT Branch Circular No. -- / 2009)To,

The Directorate General of Shipping (Kind Atten: The Nautical Advisor to the GoI)OrThe Principal Officer, MMDMumbai/ Kolkata/Chennai/Kochi/Kandla

OrThe Surveyor In-Charge, MMDJammnager/Goa/Tuticorin/Vishakhapatnam/Port Blair

Sir,

We intend to lay-up vessel of following description and details -

1. Name of the Vessel:

2. Port of Registry:

3. OFF./IMO Number:

4. GRT/Type of Vessel:

5. Total Quantity of Pollutant/Oil on Board (cubic metre):

6. Maximum Pollutant/Oil in a single tank adjoining hull:

7. Proposed lay-up at (place)for (duration in days):

8. Attached details: proof of fee payment, lay-up area chart / guide to port entry / port information booklet

9. As per MS Notice __ / 2009 : Vessel category: A or B and applicable table:

10. Manning table detail-

Rank / Level CoC / Qualification No.

i.

ii.

iii.

iv.

v.

vi.

11. We as owner / operator, take full responsibility to extend all possible assistance and support with duediligence to contribute to safety of life and prevention of pollution of Marine Environment. Fire patroland Fire fighting readiness on board shall be maintained.

12. Fee of Rs………….(… ..in words..........)by …………dated ………has been paid.

Date:

Place:

Sign, Name and Stamp on behalf of owner

Officer Ref. No.

Issued under the provisions of SOLAS Reg. V / 14 to MV/MT …………………………. as per manning tablein column 10 above, during her lay-up at (place) ………………… up to (date)

Date:

Place:

Signature / Name of Authorised Officer and Stamp

CC: To The Principal Officer, MMD, Mumbai/Kolkata/Chennai/Kochi/Kandla (if issued by SIC) To the DG Shipping (Nautical Wing), Mumbai.

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M a r i n e W a v e s 13 June 2009

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MERCHANT SHIPPING NOTICE NO. 22 of 2009No:35-NT (01)/ 2008 Dated: 10th June 2009

Subject: Maritime Security Advisory to ships/vessels transiting Gulf of Aden with latest trends of piracy incidents.

For the attention of Ship Owners, Ship Managers, Shipping Agents, Ship Masters, Charterer, ShipBuilders, Ship Breakers Associations, Classification Societies recognized by Directorate General of Shipping,Non-exclusive Survey Companies, Insurance Companies, Coastal State including Administrators of Unionterritories / Islands and Maritime boards, Major and Minor Ports, Sailing and Fishing Vessels Associations,Allied Offices of Directorate General of Shipping, National Hydrographic Office (NHO), Coast Guard

The Directorate General of Shipping (DGS) through its communication Centre (DG COMM Centre) provides24 X 7 maritime assistance related services to Indian shipping and International shipping. It is observed that piracyincidents are being reported towards East Coast of Somalia and well into surrounding high seas area.

2. The Indian Navy (IN) has also reported similar piracy trends and incidents occurring in the East coastof Somalia. This probably is from the presence of large multi national forces in the Gulf of Aden region.

3. Therefore stakeholders are urged to exercise extreme caution and due diligence in planning and executingtheir voyages on the East Coast of Somalia, especially when proceeding to ports such as Mombassa etc.

4. Ship owners and Masters should also take into cognizance the fact that piracy cover / escort by navalvessels are only limited to the Gulf of Aden (GoA) region and there is no naval presence on the Eastcoast of Somalia region.

5. This information may be disseminated to all members.

Sd/-[CAPT. R. K. Awasthi]

Nautical Surveyor-cum-DDG (Tech)

Engineering Circular No. 102NO :ENG/PSC/MEETING/05 Dated 18.05.2009

SUB :- Procedures for dealing with Port State Control Detentsions of Indian Vessels

We are all aware that when an Indian ship is detained abroad, it not only affects the commercial prioritiesof the company but also projects the Indian flag in very poor light. Not very long ago, the Indian flag was relegatedto the black-list of the IMO and even now the status of the Indian flag vessels is not quite comfortable with variousMOUs. Since long therefore, the Directorate General of Shipping (DGS) which is under an obligation under theUNCLOS and the M.S. Act to exercise control over Indian flag ships, has considered it necessary to streamlinethe procedure subsequent to a vessel being detained abroad as a sequel to a Port State Control (PSC) intervention.It is envisaged that, inter alia, these procedures shall help the ship-owners in following the steps subsequent to theirvessel being detained abroad and, the long-term measures they need to take so that such detentions are not repeatedin their fleet. It is anticipated that the Indian flag would thereby be spared the threat of being re-relegated to the"Black List".

All terms used hereunder are as defined in the applicable international Conventions for the implementationof which relevant authorization has been given to Recognized Organization(s) {i.e. ROs}, as well.

When an Indian flag ship is detained abroad, the registered ship-owner (whether through the Master orotherwise), is obliged to inform the Port State Control Cell of the DGS (Tel. No.:91-22-22633065 Fax no.:91-22-22651368 E-mail: [email protected], [email protected]; [email protected]) at the earliest andnot later than 24 hours from the time of such detention, giving the reasons and circumstances which led to suchdetention, with "legible and authenticated" documentary evidence(s). While conveying such information, the shipowner must comment whether it considers such detention / banning as justifiable in the light of the PSC guidelinesissued by the IMO; why such deficiencies could not be detected/rectified during the last Company Initiated Inspectioncarried out by the ship-owner/manager as required by the ISM Code, and, what action has been taken by the vessel'sMaster in accordance with the PSC guidelines in case it was firmly felt that such detention / banning was unwarranted.

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The Port State Control Cell of the Directorate would then forthwith analyze the justification / merits of such detentionand if found necessary, following procedures will be followed:-

1. Procedures after Detention

1.1 Procedures after 1st detention

1.1.1 When an Indian flag ship is detained for the first time, the registered ship-owner (whether through theMaster or otherwise) is obliged to inform the DGS and the concerned RO, giving the details of thedeficiencies and the steps taken by the Master to address the situation. While informing the DGS, theship-owner must also indicate the date and time (as in India), when the vessel "ought to" or "wouldhave sailed", had the vessel not been so detained. Depending on the nature of deficiencies, necessaryaction will be taken by the DGS and communicated to the ship-owner at the earliest. Only on receiptof such communication from the DGS should the vessel sail out from the port of detention.

1.1.2 If the ship-owner is unable to inform the DGS within the stipulated period and the vessel sails afterrectification of deficiencies to the satisfaction of the detaining Administration, she is not to sail fromthe next port of call until an additional SMC (i.e. shipboard) audit and FSI (i.e., inspection under FlagState Implementation) is carried out by the Recognized Organization (R O), or as may be otherwiseadvised by the DGS. Such an audit shall meticulously address all elements of the ISM Code, with specialfocus on the aspects in which the majority of the deficiencies have been observed.The findings of theaudit and the FSI inspection shall be evaluated by the PSC Cell of the DGS, subsequent to which theship-owner shall be informed of the decision of the DGS as regards her feasibility of undertaking sailingor not. Only on receipt of such information, the vessel may sail out from such port.

1.2 Procedures after 2nd Detention

1.2.1 When an Indian flag ship is detained the second time within two years (as from the date of seconddetention counting backwards), the case shall be brought to the notice of the PSC Cell of the DGS bythe registered ship-owner (through the Master or otherwise). The PSC Cell hall bring this to the noticeof the Director-General of Shipping, and, irrespective of the detaining authority / MOU, the followingsurveys must be carried out, before the vessel sails from such port of detention :-

1.2.2 If the date of the detention falls within the (plus or minus) 3 - month's window period for the annualsurvey(s) pertaining to the Convention(s) / Code(s) on which deficiencies have been observed, suchsurveys must be completed, before the ship sails from such port of detention. An additional copy ofthe report of such surveys is to be communicated by the RO to the PSC Cell of the DGS immediately,as soon as such surveys are completed.

1.2.3 If the date of the detention falls within the entire stipulated window period for the periodical /intermediate(s) pertaining to the Convention(s) / Code(s) on which deficiencies have been observed, suchsurveys must be completed, before the ship sails from such port of detention. An additional copy ofthe report of such surveys is to be communicated by the RO to the PSC Cell of the DGS immediately,as soon as such surveys are completed.

1.2.4 If the date of the detention does not fall within any window period, after clearing the PSC deficienciesthe vessel is to be put up for general examination, by Surveyor(s) as may be decided by the DGS, andin the presence of the ship-owner's competent representative. Such Surveyor(s), by using their professionaljudgment shall decide whether additional in-depth surveys are required or not. In cases where theSurveyor(s) deems that a more in-depth survey is needed, the same shall be carried out with theconcurrence of the DGS, before the ship sails from the port of detention, the scope / extent of suchsurveys being as required for "annual surveys".

1.2.5 If during the surveys carried out above, it becomes apparent to the DGS / RO that the Safety ManagementSystem(SMS) on board is not properly implemented, the following actions shall be taken :-

1.2.5.1Depending on the nature of deficiencies, DGS may depute a Flag State Surveyor / auditor, inaddition to the RO.1.2.5.2 If only the RO is carrying out the survey, the attending surveyor shallinform its Head Office of the findings. In case the RO's Head Office, having assessed the findings,

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deems that an additional audit is necessary, it shall notify the DGS and proceed as soon as possibleto conduct the additional audit of the SMS on board and inform the Directorate of the results,immediately. The DGS is also to be notified even if the RO does not consider it necessary tohave an additional audit carried out. In either case the RO may justify its conclusions, whilenotifying the DGS.

1.3 Procedures after 3rd or more Detentions :-

1.3.1 When an Indian flag ship is detained for the third time or more, within two years (as from the date ofthe last detention counting backwards) irrespective of the detaining authority / MOU, the PSC Cell ofthe DGS is to be notified forthwith by the registered ship-owner. The PSC Cell shall then communicatethis to the Director-General and further necessary action will follow as may be decided on by the Director-General of Shipping, based on the merits of the case.Under no circumstances the vessel should sail fromthe port of detention, unless the ship-owner or the Master of the vessel, received a formal communicationto such effect from the DGS.

2. Procedures for Banned ShipsWhen an Indian flag ship is banned by a certain MOU, the following procedureis required to be followed, provided the DGS considers such banning to be justifiable :-

2.1 All Survey(s) to the extent of renewal surveys shall be carried out, in the areas in which serious deficiencieshave been observed.

2.2 An additional audit of the company's shore based operations (i.e. DOC), as applicable for the relevant ship-type, shall be carried out by the Flag State auditors. The audit shall address all elements of the ISM Codeand, particularly the extent of its effective implementation.

2.3 Flag State & R.O. shall carry out an additional SMC (shipboard) audit.

2.4 Findings of such surveys and audits and decision taken thereon by the DGS, shall be communicated to theship-owner, without delay.

3. Detention during weekendsIn case a vessel is detained during a weekend and she is expected to sail beforethe end of the said weekend, the ship-owner may approach the in-charge of the PSC Cell of the Directorateand the DG-COM CENTRE (022-22610606/22614646), with all factual details, so that a temporary decisioncan be conveyed to the ship-owner.

Sd /-

(D. Mehrotra)Dy. Chief Surveyor cum Sr. DDG (Tech)

NT Branch Circular No. ……/2009File No.: 8-NT (4)/2007 Date: 25/05/2009

Subject: Reduced Manning in Deck Department, applicable to Indian Ships when laid up.

1. Background: This NT Branch circular supersedes last circular No.- NT SAFMAN - 2/2004, dated 10.02.2004,on the subject and intends to guide Indian shipping when a vessel is laid up for period of 15 days & above.

2. Application: This circular is applicable to an Indian vessel when laid up in foreign or Indian waters. In case,vessel is intended to be laid up in foreign waters, reduced safe manning is to be exercised by DG Shipping.And if vessel is intended to be laid up in Indian coastal waters, then reduced safe manning is to be exercisedby the Principal Officer of MMD having jurisdiction over the area. In either case, the Annexure I, duly filledis to be submitted to the DG Shipping or the Principal Officer, MMD, Mumbai/ Kolkata/ Chennai/ Kochi/Kandla or Surveyor-In-Charge, MMD, Jamnagar/ Goa/ Tuticorin/ Visak/ Port Blair.

3. Provisions: Safe manning of a vessel is governed by the provisions SOLAS regulation V/ 14, "Standardsregarding Watchkeeping" on the STCW Code of STCW 78/ 95 & "Company Responsibilities & Authority"under ISM Code.

4. Procedure: Operator or owner shall apply to the Directorate or the MMD concerned on Annexure-I (format

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of application and permission) in duplicate, along with copy of vessel's safe manning document, applicablefee, details of proposed lay-up (from navigational chart, guide to port entry or port information) with regardto port congestion, depths in area, support and assistance available. MMD or DGS after consideration willreturn the Annex-I duly signed and stamped.

5. Definitions:

i. Laid up: An idle vessel without employment

ii. Made fast: when made fast to wharf, jetty or mooring buoys (by fore & aft moorings).

iii. Settled waters: Where significant wave height is known to be less then 0.6 meters.

iv. Smooth waters: Where significant wave height is known to be less than 1.2 meters.

v. Partially smooth waters: Where significant wave height is known to be less than 2 meters.

vi. Roadsteads: Anchored or made fast to single point mooring in areas where wave heights are known tobe more than 2 meters.

vii. Assistance available: Where at least two tugs of appropriate bollard pull capacity can be made availablewithin one hour.

viii. Support: Extendable by the port authority, owner or other authority on behalf and request of the owner/company.

6. Categories: Vessels are divided into following categories:

i. Category A: A vessel having a total oil or chemical pollutant of less than 100 cubic meters on board,of which, no individual tank, sharing any one of its boundaries with the hull of the vessel, to contain20 cubic meters or more of pollutant quantity.

ii. Category B: Vessel not of category A and any vessel of 3000 GT and above.

7. Safe manning requirement tables:

a. Reference Table:

Vessel Category In Settled Waters In Smooth Waters In Partially Smooth waters In Roadstead

Made Fast Anchored

A D1 D3 D5 D7 D9

B D2 D4 D6 D8 D10

b. Manning Table:

Master FG Mate FG II Mate FG Master IV First Class Seaman with Nav Seamen (*vii)(*i) (*i) (*i) (*ii) (*iv) W/K Cert including cook

D1 - - - 1 1 2 (*iii)D2 - 1 - 1 1 3D3 - 1(*v) - 1 2 3D4 1 - 1 - 2 3D5 - 1 - 1 2 3D6 1 - 1 - 2 4D7 - 1 - 1 2 3D8 1 - 1 - 2 4D9 - 1(*vi) - 1 3 3D10 1 - 1 - 3 4

*i May be substituted by NCV equivalent CoC holder, if vessel is in NCV area.*ii May be substituted by IV Second Class with 2 years experience, if vessel is less than 200 GT.*iii May be reduced to One seaman cum cook, if vessel is less than 200 GT.*iv If outside Indian IV area, appropriate CoC holder such as Master FG (Restricted), Master NCV or Master FG may be required to be posted.*v May be substituted by IV First Class Master with 2 years experience, if vessel is less than 200 GT.*vi May be substituted by Mate or Master (Restricted) as applicable.*vii Total of half number of ratings may be accepted from Engine or GP ratings.

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8. Monitoring/Review: This circular is subject to yearly review on basis of quarterly returns/reports receivedfrom offices issuing such reduced safe manning document.

9. Consideration during Foul Weather: During foul weather season, on coast of India, as for as practicable,lay-up of a vessel in open road-stead is discouraged. All application for lay-up during foul season or unsettledweather condition, if out side partially smooth waters, shall be forwarded to this office with comments of MMD(having jurisdiction) with regard to assistance / support and emergency response capabilities of owner or portlocally.

10. Appeal : An applicant, if aggrieved by decision or delay in hands of the concerned office, can make an appealby approaching the Director General of Shipping.

This is issued with the approval of the Director General of Shipping.

Sd/-(Capt. S.K.Shukla)Nautical Surveyor

Tonnage Tax Cell Circular No.1 of 2009No:1-TTC(1)/2009 Dated:02.03.2009

Subject : System for administration of Minimum Training Requirement for Tonnage Tax Company in termsof Section 115VU of Income Tax Act, 1961 and guidelines issued vide Notification published in Gazette videS.O. 1436(E) dated 30.12.2004 as amended in Gazette Notification S.O. 2132(E) dated 12.12.2007-Corrigendum to Tonnage Tax Cell Circular no. 2 of 2005 dated 28.1.2005

The Gazette Notification dated 30.12.2004 inter-alia stipulated that the Director General of Shipping will notifyfurther circular / instructions on other relating aspects including various forms and described the system foradministering the minimum training requirements by tonnage tax companies separately. Accordingly, TTC Circularno. 2 of 2005 dated 28.1.2005 was issued by the tonnage tax cell of this Directorate.

2. Para 14 of the said circular determines the training fees, administrative cost and stipend payable by the tonnagetax company / trainee officer.

3. On 12.12.2007 vide Gazette Notification no. S. O. 2132(E), the Central Govt has issued amended guidelines(copy attached) which inter-se covers the following issues which are effective from 1.4.2007 -

i) Increase in minimum training requirement (MTR) from 1:10 to 1.5:10 of the Minimum Safe Manningdocument of the vessel.

ii) Administrative cost will be payable by the tonnage tax company only.

4. Para 14 and 15 of the TTC circular no. 2 of 2005 dated 28.1.2005 addresses the issue of administrative costpayable by the tonnage tax company and the trainee officer and the penalty for non-fulfillment of the MTRwhich were earlier related to the training fees. The revised gazette notification dated 12.12.2007 has abolishedthe training fees. Therefore the quantum of administrative cost and the penalty for non-fulfillment of minimumtraining requirement payable by a tonnage tax company which were fees related have to be re-fixed and notifiedby the Director General of Shipping. As per para 4 of the Gazette Notification S.O. 2132(E) dated 12.12.2007,the amount of administrative cost payable by a tonnage tax company to the Trust and stipend payable by thetonnage tax company to the trainee officer shall be prescribed by the Director General of Shipping from timeto time. Similarly, para 12(ii) and 13 of the Gazette Notification dated 12.12.2007 empowers the Director Generalof Shipping to determine from time to time the penalty by way of an amount payable by a tonnage tax companyin lieu of the obligation for training. Accordingly, effective from 1.4.2007, the following quantum ofadministrative cost, penalty and stipend payable by a tonnage tax company are hereby notified -

i) Administrative Cost -

a) The administrative cost for the FY 2007-08 would be Rs. 750/- per month per trainee for trainingin ships whose GRT is more than 500 and Rs. 225/- per month per trainee for training in ships whoseGRT is less than 500.

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b) From the FY 2008-09 onwards, the administrative cost payable by a tonnage tax company shall beRs. 500/- per month per trainee, irrespective of the size of the vessel. The administrative cost payableby a tonnage tax company to the Trust shall be paid in advance for six (6) months.

ii) Penalty payment in lieu of obligation for training (PILOT) -

Following shall be the penalty payment in lieu of obligation for training for non-compliance of minimumtraining requirement payable by a tonnage tax company from the FY 2007-08 onwards -

Vessel Penalty amount (in Rs.)

a) More than 500 GT The penalty amount for non-fulfillment of MTR shall be Rs.5000/- per shortfall manday. The penalty amount will becalculated on the entire shortfall in the MTR mandays at theabove rate.

b) Less than 500 GT The penalty amount for non-fulfillment of MTR shall be Rs.1500/- per shortfall manday. The penalty amount will becalculated on the entire shortfall in the MTR mandays at theabove rate.

c) Payment in lieu of Training (PILOT) for vessels less than 500 GT - where due to size of vessel ornature of operation, PILOT is approved for specific vessels onreceipt of request for the same from the tonnage tax company.The penalty amount for non-fulfillment of MTR will be Rs. 1000/- per shortfall manday. The penalty amount will be calculated onthe entire shortfall in the MTR mandays at the above rate.

Note - No administrative cost will be charged on the penalty amount.

iii) Stipend -

The earlier requirement of minimum stipend of Rs. 5000/- per month, with increments, as specified inthe indenture payable to the trainees remains unchanged. The tonnage tax companies may however;augment the stipend at their own discretion and such modifications may be informed to the Directorate.5. Increase in minimum training requirement from 1:10 to 1.5:10 of the Minimum Safe Manning documentof the vessel -

a) As the increased training requirement (1.5:10), effective from 1.4.2007 has been notified in the Gazetteon 12.12.2007, it could not have been possible for the tonnage tax companies to adhere to the increasedtraining requirement i.e. additional 0.5:10 with effect from 1.4.2007. Accordingly, the increasedtraining commitment i.e. additional 0.5:10 for the FY 2007-08 will be treated as a separate blockand a nominal penalty of @ Rs. 1 per manday would be levied for the shortfall in meeting theminimum training requirement to be fulfilled under this block.

b) As regards, the penalty for non-compliance of minimum training requirement of 1:10 for the FY2007-08, the provisions of para 4 (ii) will apply.

c) Assessment of carry forward shortfall would be as per the minimum training requirement criteriaof 1:10 for the FY 2007-08.

d) For the FY 2008-09 onwards, the penalty for non-fulfillment of the minimum training requirementwill be governed as para 4(ii) of this circular.

6. This issues with the approval of Director General of Shipping & ex-officio Additional Secretary to Govt. ofIndia.

Sd/-

(Ashima Gupta)Dy. Director General of ShippingFor Director General of Shipping

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M.S. Notice 21 of 2009No.11-TR(18)/2004-II Dated : 29th May, 2009

Subject : Diploma in Nautical Science programme leading to B.Sc degree in Nautical Science by IndianMaritime University.

Introduction

Indian Maritime University has been established as a Central University under the Indian Maritime UniversityAct, 2008 with effect from 14th November, 2008. The University is established at the national level to facilitate andpromote maritime studies and research and to achieve excellence in the areas of maritime science and technology,maritime environment and other related fields.

1.1 A decision has been taken that the Indian Maritime University will start the Diploma in Nautical Science [DNS]programme leading to B.Sc degree in Nautical Science from August,2009 onwards on the same lines as the DGS-IGNOU programme which was promulgated through Training Circular No.20 of 2004 dated 28th April 2004.

1.2 All the training institutes approved by DGS [list attached Annexure-I] for conducting the DNS [IGNOU] courseare deemed to be approved for the said course to be conducted by IMU. However, individual institutes arerequired to sign an MOU with IMU as its Distance Education Center for the said programme. The format of theMOU will be prescribed by IMU on the lines of the MOU between IGNOU and the Institutes. 1.3 The existingstudents enrolled with IGNOU upto February, 2009 batch will continue with IGNOU. IGNOU will continue tohold examinations for the existing students at the pre-sea stage and for semesters III, IV and V. 2.. Briefoutline of the programme for the batches conducted by IMU w.e.f. August, 2009: Phase SemesterPeriod Programme details Diploma / Degree

Phase 1 Semester 1, 2 12 month Contact program Residential Program at Diploma in Nautical Science(Pre-sea) Training Institute will be awarded by IMU

Phase 2 Semester 3, 4, 5 18 months at sea Residential on board ship Advanced Diploma in NauticalScience will be awarded by IMU

Phase 3 Semester 6 4 months Contact Program (Post-sea) Day Scholar Programme at anyand 6 advanced modular courses DGS approved Training Institute

Certificate of Competency willbe issued by DGSB.Sc.(Nautical Science) Degree will beawarded by IMU

1. Salient features.

3.1 Methodology : A total of 108 credits are required to be awarded for B.Sc degree. This will be achieved inthree distinct stages.

3.2 Pre-sea stage : The selection of candidates shall be as per the detailed procedure published by IMU. Theeligibility criteria for admission shall be as per the DGS guidelines. IMU shall arrange the necessaryinfrastructure for the selection process. IMU shall also lay down the procedures and norms for allocation ofpre-sea institutes to the candidates. Pre-Sea Training (contact programme) comprising of Semester I and IIshall be conducted by the institutes as per the programme prescribed by DGS in Training Circular No.2 of2005. Examinations at the end of each semester shall be conducted by IMU. Successful candidates shall beawarded Diploma in Nautical Science by IMU and credited with 36 credits.

3.3 Sea service : During the 18 months sea service (semester III, IV and V) Distance-Learning Programmeshall be conducted by IMU. Successful candidates shall be awarded Advance Diploma in Nautical Scienceby IMU and credited with 54 credits, for these three semesters. IMU shall specify the Centers for theconduct of examinations for the III, IV & V semesters.

3..4 Post-sea Stage : The candidate shall undergo post sea training of 4 months duration and 6 advanced modularcourses in any DGS approved training institute and appear for Second Mate (FG) Competency Examinationconducted at the Mercantile Marine Department of the Directorate as per the existing practice. On obtainingthe Second Mate (FG) Certificate of Competency issued by the Directorate, the IMU shall award 18 credits

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M a r i n e W a v e s 20 June 2009

S a f e g u a r d O u r S e a s

as part of the 6th Semester and the B.Sc (Nautical Science) degree to the successful candidates without anyfurther examination.

3.5 Student Instructional Material: Course Material for the first year (Semester I & II) of training shall beprovided by IMU. Self learning material for the Semesters III, IV and V shall be delivered by IMU to thecandidates through the institute.

3.6 Fees : The candidates will pay Rs. 5,500/- per semester (Semester I to semester V) to IMU. This is inaddition to the fees charged by the training institutes.

4. Monitoring/Inspection:

4.1 There will be a Monitoring and Implementation Committee [hereinafter referred to as MIC] constituted ofrepresentatives from DGS and IMU. The MIC will have equal representation from both the organizations.

4.2 The new approvals and additional capacities for this course will be considered only after joint inspection byIMU and DGS.

5. This issues with the approval of Director General of Shipping and ex-officio Additional Secretary to the Govt. ofIndia

Sd/-[Ashima Gupta]

Deputy Director General of Shipping

STATEMENT SHOWING DETAILS OF APPROVED INSTITUTES WITH THEIR APPROVEDINTAKE FOR DIPLOMA IN NAUTICAL SCIENCE COURSE

Institute Intake for Intake forAugust batch February batch Total Remarks

Trident College of Maritime Technology, Kolkata 40 0 40

Indian Centre for advancement of Research & Edu., Haldia 40 0 40

Dr. B.R. Ambedkar Govt. Polytechnic, Port Blair 30 0 30

Applied Research International, New Delhi 120 40 160

International Maritime Institute, Noida 120 40 160

Aquatech Institute of Maritime Studies, N. Delhi. 40 0 40

Shriram institute of Maritime Studies, New Delhi 40 0 40 24 students of August,08transferred to NMA and10 students continued

in the institute.

Euro Tech Maritime Academy 80 0 80

Southern Academy of Maritime Studies, Chennai 40 40 80

Sailors Maritime Academy, Chennai 40 40 80

International Maritime Academy, Chennai 160 0 160

Maritime Foundation, Chennai 40 0 40

National Maritime Academy, Chennai 123 123 246

Hindustan Institute of Maritime Training, Chennai 40 40 80

Maritime Training Institute, Mumbai 120 80 200

B.P. Marine Academy, Navi Mumbai 40 0 40

T.S. Rahaman, Navi Mumbai 120 40 160

T.S. Chanakya, Navi Mumbai 80 80 160

MMTI's Educational Trust, Navi 40 40 80

Tolani Maritime Institute, Pune 120 0 120

Samundra Institute of Maritime Studies, Lonavala 80 40 120

Great Eastern Shipping Co. Training Institute, Lonavala 80 40 120

Naval Maritime Academy, Mumbai On IMS Vikrant 40 0 40

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M a r i n e W a v e s 21 June 2009

S a f e g u a r d O u r S e a s

MERCHANT SHIPPING NOTICE NO. 19 of 2009No:35-NT (01)/ 2008 Dated: 08.05.2009

Subject: Maritime Security Advisory to ships/vessels transiting Gulf of Aden

For the attention of Ship Owners, Ship Managers, Shipping Agents, Ship Masters, Charterers, Ship Builders,Ship Breakers Associations, Classification Societies recognized by Directorate General of Shipping, Non-exclusiveSurvey Companies, Insurance Companies, Coastal State including Administrators of Union territories / Islands andMaritime boards, Major and Minor Ports, Sailing and Fishing Vessels Associations, Allied Offices of DirectorateGeneral of Shipping, National Hydrographic Office (NHO), Coast Guard:

In the wake of a spate of piracy attacks on merchant shipping in the Gulf of Aden, Indian naval ships havebeen deployed in the Gulf of Aden since October 2008 to provide escort services to ships. Besides the presenceof Indian Naval ships, the French, Russian, Malaysian, PLA (N) and coalition forces from CTF 150 and the EuropeanMaritime Force (EUMF) are also undertaking anti piracy patrolling in the area.

Currently, the Indian Navy has been promulgating the convoy timing from either side of the corridor, so thatIndian flag merchant vessels and vessels with Indian interest/ carrying Indian crew can endeavor to be present atthe designated time to avail the escort provided by the Indian naval vessel on patrol. Information regarding merchantships likely to avail of the security cover provided by the Indian warship collated by DG Shipping and communicatedto the navy for onward transmission to the naval ships on the patrol duties. Additionally, the warships on patrolhave been establishing contact with merchant ships when in VHF/UHF ranges to reassure them of Indian navalpresence in the area, which has boosted the moral of the shipping community.

However, feedback received from the naval ships on patrol indicate that many Indian flag ships continueto proceed independently through the Gulf of Aden without availing convoy protection, which could lead to seriousconsequences that may include hijacking.

It may therefore be emphasized and impressed upon all concerns to transit the area strictly under the convoyprotection, to avoid any untoward incident to Indian shipping/ ships with Indian crewmembers and ships with Indianinterest, since anti piracy cover by Indian Naval vessel is limited to the area in their vicinity.

This information may be disseminated to all members.

Sd/-[CAPT. R. K. Awasthi]

Nautical Surveyor-cum-DDG (Tech).

Engineering Circular No. 108NO: ENG/FFA/1665 Dated 28.04.2009

Subject: Merchant Shipping (Fire Appliances) Rules 1969/1990 - Requirement of fire hydrant of size lessthan 65mm diameter.

It is observed that a number of Indian flag ships are fitted with fire main hydrants of less than 65 mm diameter,and the shipping companies are approaching the Directorate for the issuance of exemption for continuing to operatethe vessel fitted with the less than 65 mm diameter hydrants.

In view of the above, it is advised that requirements as specified in SOLAS CH.II-2 Reg. 10.2 and M.S. FFARules 1969/1990, as applicable, with respect to fire hydrants may be complied with.

This issue with the approval of Chief Surveyor with Govt. of India cum Addl. Director General of Shipping(Eng).

Yours faithfully, Sd/-

(D. Mehrotra)Dy. Chief Surveyor cum Sr.DDG (Tech)

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Views and opinions expressed by various writers on individual capacity or of institution and organisations are not of “Marine Waves”. Every care is taken to publishthe references to notifications & circulars of government / classification societies etc. Hence Marine Waves Management will not be responsible for any error in thepublication.“No responsibility will be borne for undelivered issue, owing to circumstances beyond the control of the Publisher. Subscriber may however notify, to enable us to sendsubstitute copy.”Readers are recommended to make appropriate enquiries before entering into dealings with advertisers in this publication. The Editor and Publisher does not vouchany claims made by advertisers and hence shall not be held liable for any adverse consequences. – Editor: “Marine Waves”.

READERS’ KIND ATTENTION

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until stocks last. Please rush your bookings to avoid disappointment.

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DIRECTORATE GENERAL OF SHIPPING, MUMBAI.(F&A Branch)

No.8-F&A(10)/2008 Date: 09.01.2009

Sub:- Payment of Fees payable to D.G. Shipping through Electronic Mode.

Under the existing procedure, the fees receivable on account of D.G. Shipping are realized in by chequeor DD drawn on any branch at Mumbai of scheduled bank or by money order or postal order or in such otherform as may be prescribed by Government. Now banks have been offering facilities to customers for any paymentthrough Internet in India. The system involves transacting with a bank through a receipt processing applicationportal that is accessible through Internet.

From 01.02.2009 all the applicants are encouraged to opt for payment of any fees payable to Directorate bytransfer of funds electronically through EFT (Electronic Fund Transfer) without the use of credit card by transferto our bank i.e. Syndicate Bank, Fort, Mumbai (IFC Code No. SYNB 0005000 under A/c no 50001150000172).

Syndicate Bank will forward a consolidated statement containing the details of the remittances on daily basisto the office of D. G. Shipping. The applications received along with copy of payment receipt shall be processedby the branches in the Directorate on the face value without any verification. The copy of the consolidated statementissued by the bank will also be made available to all the branches. The scroll no. of the payment should be dulynoted on the relevant file and on the application while processing applications. However due verification of thestatement issued by the Syndicate Bank will be done by F&A branch.

All the branches of the Directorate are requested to encourage, inform, facilitate and seek compliance fromevery applicant who is paying fees for any services rendered and the payment of fees by any other mode shouldbe allowed to only those applicants paying amount less than Rs.1000/- or from remote places where the banks maynot have facility for EFT. The head of branch is expected to help applicants by standardizing and abbreviating thetransfer description relevant to the branch in minimum characters.

A copy of circular attached herewith may be sent to all the applicants dealing with the branch.

Sd/-(V. Rajendran)

Dy. Director General of Shipping

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Vietnam Survey

A recent survey in Hai Phong city, one of Vietnam's major ports

and shipping centres, showed that most shipping firms say

they have been facing big difficulties due to lack of import-

export commodities and orders for carrying goods from foreign

partners.

A paradox exists that

while expenses are

high, the world's

shipping fees have

been decreasing. The

price of FO oil, the

main fuel for ships,

which was $300/tonne

previously, has climbed

to $700/tonne.

Meanwhile, container

shipping fees had

dropped by 30-50 percent by the end of Q1 2009 in

comparison with the same period of last year. The fee for

carrying oil has also dropped dramatically since the end of

March by 20-30 percent from the end of 2008 and 30-40

percent from mid 2008.

Especially, the market of carrying bulk cargo has declined more

severely than forecast. Shipping fees and ship chartering have

dropped by 60-90 percent.

In the last several years, as fleets have been developing rapidly,

ship owners have been facing a lack of manpower. Despite

continued losses, ship owners still have had to offer higher

pay in order to retain crew.

Moreover, shipping firms say that they have been burdened

by bank loan interest rates. The loans they took out in mid

2008 have very high interest rates, of up to 21 percent.

Meanwhile, the firms say they are finding it difficult to access

the government's demand stimulus packages. To date, not

many shipping firms have been able to get funds under the

4 percent interest rate subsidy programme, because the firms

need long-term investment capital but do not have mortgaged

assets.

According to the Diem Dien Transport Association in Thai Binh

province, commercial banks now refuse to provide more loans

for enterprises as they have overdue debts and do not have

collateral. The association sent a petition to the State Bank

of Vietnam, asking for a freeze of its debts or an extension

on its debt payment deadline.

Trinh Xuan Nin, Deputy Chairman of the An Lu Unity Transport

Association, said that enterprises need a lifebuoy in order to

survive the current difficulties.

Nin suggested freezing overdue debts and extending the

payment of principal of 3-4-year term loans granted to fund

projects on purchasing new ships.

Experts say that if the state takes measures now to rescue

shipping firms, the industry could recover by as early as the

end of 2010. If no measure is taken, enterprises may very

likely be pushed against the wall.

IMO initiatives to counter piracyand armed robbery at sea

IMO is implementing an anti-piracy project, a long-term project

which began in 1998. Phase one consisted of a number of

regional seminars and workshops attended by Government

representatives from countries in piracy-infested areas of the

world; while phase two consisted of a number of evaluation

and assessment missions to different regions. IMO's aim has

been to foster the development of regional agreements on

implementation of counter piracy measures. The Regional Co-

operation Agreement on Combating Piracy and Armed Robbery

against ships in Asia (RECAAP), which was concluded in

November 2004 by 16 countries in Asia, and includes the

RECAAP Information Sharing Centre (ISC) for facilitating the

sharing of piracy-related information, is a good example of

successful regional co-operation which IMO seeks to replicate

elsewhere.

More recently, a programme of sub-regional meetings was

initiated to promote regional action to address piracy and armed

robbery against ships in the wider context of maritime security.

The first of these was held in Sana'a, Yemen in April 2005 for

States in the Red Sea and Gulf of Aden areas, with a follow-up

event planned for Oman in January 2006. The meeting on the

Straits of Malacca and Singapore: Enhancing Safety, Security

and Environmental Protection, held in Jakarta, Indonesia in

September 2005 also addressed the issues of piracy and armed

robbery against ships and a follow-on meeting will take place

in Malaysia in 2006. Further initiatives under this programme

are scheduled for the Caribbean, South Asia, Asia Pacific and

West and Central Africa in early 2006. Missions to follow up

these events and meetings in other regions will commence

later in the year.

To assist in anti-piracy measures, IMO issues reports on piracy

and armed robbery against ships submitted by Member

Governments and international organizations. The reports,

which include names and descriptions of ships attacked,

position and time of attack, consequences to the crew, ship or

cargo and actions taken by the crew and coastal authorities,

are now circulated monthly, with quarterly and annual

summaries.

IMO has issued Guidance to shipowners and ship operators,

shipmasters and crews on preventing and suppressing acts of

piracy and armed robbery against ships and Recommendations

to Governments for preventing and suppressing piracy and

armed robbery against ships.

Maritime security regime

SOLAS Chapter XI-2 on Special measures to enhance maritime

security in the International Convention for the Safety of Life

at Sea (SOLAS) and the International Ship and Port Facility

Security (ISPS) Code, which entered into force in July 2004,

provide also an array of measures which contribute to the

fight against piracy and armed robbery against ships.

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