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INTERNATIONAL MARITIME ORGANIZATION, 4 Albert Embankment, London SE1 7SR, United Kingdom. Tel: +44 20 7735 7611, Fax: +44 20 7587 3210 http://www.imo.org

INTERNATIONAL MARITIME ORGANIZATION

MARITIME KNOWLEDGE CENTRE ―sharing maritime knowledge‖

CURRENT AWARENESS BULLETIN

Volume XXIV – No. 2 February 2012

To receive the Bulletin monthly free of charge please sent an e-mail to: MaritimeKnowledgeCentre@imo.org

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MEETINGS

Click here for the programme of IMO meetings for 2012, the summary reports for meetings held so far in 2011 and the provisional agenda. If you wish to receive such briefings regularly, please email your request to Media.

PRESS BRIEFINGS

IMO NEWS (Issue 4, 2011) Digital version of latest issue

NEW IMO PUBLICATIONS

SECRETARY-GENERAL SPEECHES

THE UNITED NATIONS

UN News Centre UN Dispatch

INDUSTRY NEWS AND PUBLICATIONS: CONTENTS

SOURCES CASUALTIES IMO LAW AND POLICY MARINE TECHNOLOGY MARITIME SAFETY MARITIME SECURITY AND PIRACY NAVIGATION AND COMMUNICATIONS POLLUTION/ENVIRONMENT PORTS AND HARBOURS SEAFARERS

SHIPBUILDING AND RECYCLING OF SHIPS SHIPPING SPECIAL REPORTS

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Important notice: this Current Awareness Bulletin is published by the Maritime Knowledge Centre and is not an official IMO publication. Titles of articles are reproduced in the Bulletin as they appear in the magazines or newspapers. Selection does not imply any endorsement by IMO of the article, journal, author or publisher. Please note that use of names of States, territories, land areas, bodies of water and adjectives of nationality may not be in concordance with United Nations and IMO guidelines and IMO bears no responsibility for them. The Bulletin and previous issues can also be found on the IMO website in the Maritime Knowledge Centre Pages. To unsubscribe send an e-mail to MaritimeKnowledgeCentre@imo.org

SOURCES

New publications listed are all available for consultation in the MKC. For copyright reasons we are unable to send copies and you are advised to contact the publishers. Click here for the latest MKC Acquisitions List. Please note that the following list contains excerpts only. The full text of articles in this issue are available from the sources listed below: BIMCO Bulletin: http://www.bimco.org Bunker Bulletin: http://bunkerworld.com CONCAWE Review: http://www.concawe.org Fairplay International Shipping Weekly: http://www.fairplay.co.uk Fairplay Solutions http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx IALA Bulletin http://www.ialathree.org/chapo/publications/publications.php?LeTypePub=11 Lloyds‘ List: http://www.lloydslist.com MER http://www.imarest.org Naval Architect: http://www.rina.org.uk/tna.html Navigation News: http://www.rin.org.uk/ Ports & Harbours: http://www.iaphworldports.org/ Safety at Sea: www.safetyatsea.net Seatrade: http://www.seatrade-global.com Seaways: http://www.nautinst.org/Seaways/index.htm Shipping World & Shipbuilder http://eshop.imarest.org/shipping-world-and-ship-builder-subscription.html Tanker Operator: http://www.tankeroperator.com TradeWinds: http://www.tradewinds.no

CASUALTIES At least 100 still missing after Rabaul Queen sinking - By Tom Leander "At least 100 people are still missing and feared drowned from Rabaul Queen , which sank off the coast of Papua New Guinea on Thursday. The ferry was carrying about 350 people with 238 rescued so far, the New Guinea maritime authorities said. Three merchant ships and four rescue aircraft were taking part in the search some 16 km off New Britain, the Australian Maritime Safety Authority said. Authorities fear that many of the remaining missing people may have been trapped on board the vessel. Few bodies have been sighted in the water as searchers combed the area in difficult conditions with strong winds and high seas." LLOYD‘S LIST, 6 February 2012, p 2 Liquefaction sinks another ship ―Twenty-two seafarers were lost and one rescued, when a bulk carrier sank in the Philippines after an apparent case of cargo liquefaction. Vinalines Queen (56,040dwt) was one of the largest and most modern vessels in the Vietnamese fleet, but sank in heavy weather on 25 December carrying a cargo of nickel ore from Indonesia to China.‖ SAFETY AT SEA, March 2012, p 10 Fishing boat tows stranded Costa cruiseship to Mahé - By Richard Meade and Liz McMahon "A French fishing vessel has reached the Italian cruiseship Costa Allegra, which was left drifting in the Indian Ocean overnight and is towing the Costa Cruises vessel to Mahé in the Seychelles." LLOYD‘S LIST, 29 February 2012, p 2

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IMO Germany honours IMO‟s Efthimios Mitropoulos "Germany‘s Ambassador to the UK, Georg Boomgarden, has conferred the Grand Cross of Merit with Star and Sash Cross of the Federal Republic of Germany on former IMO Secretary General Efthimios Mitropoulos for a lifetime of service to shipping. As the head of the UN agency between 2003 and 2011, Mitropoulos did much ―to create a uniform framework for an easier, safer, more secure, human and ecological‖ shipping industry, a statement from the embassy said." FAIRPLAY, 3 February 2012, p 41 New Secretary General, administrative burdens and piracy top IMO Council agenda ―At the 106

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session of the International Maritime Organization (IMO) Council, Mr Koji Sekimizu of Japan was elected as Secretary General of the IMO, with effect from 1 January 2012, for an initial term of four years. A seasoned IMO diplomat with an impressive career including more than 20 years of service within the IMO Secretariat, Mr Sekimizu will provide a steady hand to keep the organisation on course and steer it through the troubled waters constituted by the many issues facing the shipping industry, not least the issues of piracy and GHGs.‖ BIMCO BULLETIN, Vol.106, No.4, pp 10-11 IMO addresses chemical tanker EEDI cubic capacity correction factor ―Between 9

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the IMO‘s intersessional working group (ISWG) on energy efficiency finalised guidelines on the calculation method of the attained Energy Efficiency Design Index (EEDI) for new vessels.‖ TANKER OPERATOR, Jan/Feb 2012, pp 7-9 Sekimizu‟s world view "There‘s something distinctly likeable about Koji Sekimizu, the newly installed secretary-general of the IMO. He sees his role as a company president, fully committed to the bigger picture, although keeping an eagle eye on the doings of the executive cadre. At an International Maritime Industries Forum meeting this week, hosted in London by ITF general secretary David Cockroft, Sekimizu said he gets up with his 5.15am alarm ―totally devoted to my job‖, planning for the future of the UN agency. His agenda cannot be described as over-ambitious, covering elements as diverse as sustainable development, piracy and security, and training and recruitment. " FAIRPLAY, 16 February 2012, p 5 „Businesslike approach‟ to boost efficiency - By Adam Corbett "Koji Sekimizu says one of his chief goals at the helm of the International Maritime Organisation (IMO) is to make the organisation more efficient and to deliver better results. To achieve this he has brought a ―businesslike attitude‖ to his new position and likens his review of the organisation‘s ―delivery mechanism‖ as akin to a company reform. Sekimizu says he has already started a long-term review of the IMO‘s financial sustainability under Andrew Winbow, who he appointed to the administrative department of the Maritime Safety Division. The report will be delivered to the IMO Council meeting towards the end of the year." TRADEWINDS, 17 February 2012, p 39

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LAW AND POLICY Costa to select salvor for Costa Concordia by end of March - By Max Lin "Costa Cruises will pick a marine service firm to remove the capsized Costa Concordia off the Italian island of Giglio by the end of March. The company, owned by Miami-based Carnival , said in a statement that it would select a salvage firm based on tenders. Costa Cruises has invited 10 salvage companies, including Dutch firm Smit which is carrying out preliminary salvage and fuel removal, to submit proposals by the beginning of March to move the ship. It will then review the proposals with Italian authorities. The company said it might delay awarding the contract, due to "the complexity of the operation"." LLOYD‘S LIST, 6 February 2012, p 2 Costa Concordia likely to prompt regulatory reforms - By David Osler "Nothing in shipping is a more certain catalyst for a fresh spate of regulation than a major casualty. The sinking of the Titanic in 1912 resulted in the Safety of Life at Sea Convention; the Herald of Free Enterprise disaster in 1987 saw the adoption of both Solas amendments and new standards for ferry stability; the Exxon Valdez oil spill in 1989 led directly to the US Oil Pollution Act 1990; and the sinking of Erika off the French coast in 1999 provided the impetus for a European Union-wide ban on single-hull tankers. It is impossible to know exactly how politicians will respond to the capsize of Costa Concordia. But these historical precedents are obviously informative. Such is the extent of the "something must be done" outcry from the press and public that it is a safe bet something will, indeed, be done." LLOYD‘S LIST, 1 February 2012, p 4

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Removing the 'Costa Concordia' may take a year - By Adam Corbett "Although the stricken cruiseship could be refloated, cutting it up as it lies looks to be the simplest and cheapest option. The 114,000-gt Costa Concordia (built 2006) is almost certainly set to be a wreck-removal operation but Italian coastal authorities and insurers have been set a difficult task in selecting the right process and company for the job. Although the stricken cruiseship could be refloated, cutting it up as it lies looks to be the simplest and cheapest option. The coastguard has already suggested the removal is likely to be drawn out, predicting it could take a year. Removal of the fuel will take at least a month but other pollutants such as paint will also have to be taken out before wreck removal can be even be considered." TRADEWINDS, 3 February 2012, p 28 Expert slams 'ridiculous' bid deadlines to move Costa Concordia - By Janet Porter "A prominent salvage expert has criticised the speed with which companies have been asked to submit bids to remove the Costa Concordia wreck. Costa Cruises has invited 10 salvage companies to tender for the work by early next month, aiming to select the successful bidder by the end March. But such a tight timetable "is absolutely ridiculous", according to former International Salvage Union president Klaas Reinigert, an outspoken critic of the way salvage contracts are awarded." LLOYD‘S LIST, 10 February 2012, p 2 LOC to advise on „Rena‟ and „Concordia‟ wrecks - By Adam Corbett "London and Singapore-based marine and engineering consultants LOC are advising on the two most costly and most high-profile wreck-removal cases currently under tender. The company has been appointed by the Standard Club to help advise on technical aspects of the removal of the 114,000-gt Costa Concordia (built 2006), which ran aground off the coast of Italy in January. It has also been appointed by Maritime New Zealand to advise on the removal of the 3,032-teu containership Rena (built 1990), which was declared a constructive total loss (CTL) in October last year." TRADEWINDS, 24 February 2012, p 55 What changes to expect in wake of cruiseship casualty - By David Osler "First up are the technical aspects of the incident, with stability standards likely to come under scrutiny. Costa Concordia was 13 storeys high, yet only 8.2 m of the vessel sat below the waterline. The thinking behind such designs is that what is crucial is the centre of gravity. If the engines and the ballast and fuel tanks are low in the hull, and the far lighter accommodation blocks higher up, then everything should be fine. There were reports that Costa Concordia suffered a blackout prior to grounding. Comparisons have been drawn with the loss of power experienced by similarly-designed Carnival Splendor in November 2010, with fingers being pointed to a power surge as a possible explanation. Some marine engineers believe propulsion power and accommodation power should be entirely separate, as they are on older cruiseships. Much attention has also been focused on the difficulties of rapidly evacuating the 4,200 people on board Costa Concordia, with inevitable comparisons to the Titanic. But is that good enough? And can lifeboats be released sufficiently quickly? The latter issue is contentious for shipping as a whole." LLOYD‘S LIST, 1 February 2012, p 4 Owners at risk amid armed guard insurance confusion - By Liz McMahon "Shipowners are at risk because they do not understand private maritime security insurance coverage requirements and this could make them liable in the event of a claim. An industry source has raised concern that private maritime security companies are taking out policies inappropriate for liabilities that arise from their work. The International Group of P&I Clubs expects a minimum level of cover for employers' liability for PMSCs of £5m ($8m). But this is not statutory and a lack of formal guidance means that the quality and costs of PMSC insurance varies. One PMSC told Lloyd's List that its combined insurance costs now topped £240,000, compared with £55,000 in 2009. The firm is insured for $10m for professional indemnity and public liability, £2m for employers' liability and $1m for kidnap and ransom per transit. Two and half years ago the firm said it did not need PI or K&R for maritime security work, had $2m public liability and £1m employers' liability cover." LLOYD‘S LIST, 6 February 2012, p 1 Owners team up to fight „bullying‟ - By Bob Stamford "A growing number of international shipowners impatient with ―bullying and coercion‖ by the US Coast Guard (USCG) have joined in a co-ordinated campaign of lawsuits over its alleged strongarm tactics in maritime-pollution cases. In the past seven days, three new lawsuits have been filed in US federal courts in Florida, Alabama, and the District of Columbia (DC) on behalf of seven shipowners and operators against the USCG, the Customs and Border Protection (CBP) agency and other law enforcers." TRADEWINDS, 3 February 2012, pp 14-15 US Coast Guard „illegally detaining ships and forcing owners to jail seafarers‟ - By Bob Stamford "The sudden wave of shipowner lawsuits against the US Coast Guard (USCG) all contend that under the US anti-pollution law that enacts the international Marpol convention, the US may only demand a bond or other financial surety for the amount of fines to secure the release of a ship. The lawyers spearheading the suits, Michael Chalos and George Chalos, argue that the USCG coerces shipowners to give the USCG much more than it is authorised to demand — illegally detaining ships in order to force the owners

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to act as agents of the USCG in jailing their own seafarers and encouraging them to testify." TRADEWINDS, 3 February 2012, pp 14-15 Rina awaits judgment over involvement in ferry deaths - By Craig Eason "Italian class society Rina is waiting to hear whether a Genoese court will agree it has no blame in the fire, capsize and sinking of an Egyptian ferry in 2006 that killed over 1,000 people. Rina was acting as a recognised organisation, representing the Panamanian authorities when it issued and audited certificates of compliance for the Al Salam Boccaccio 98. If the court sides with the plaintiff, making Rina culpable as a recognised organisation or having a commercial contract with the shipowner, it could lead to more cases being made against class societies who represent flag states around the world." LLOYD‘S LIST, 8 February 2012, p 4 Costa Cruises' insurance could be void - By Liz McMahon "Costa Cruises ' insurance cover for Costa Concordia could be void if the courts decide there are sufficient grounds for charges of negligence or unseaworthiness. Since the vessel's grounding on January 13, Costa Cruises has publicly criticised the vessel's master, Francisco Schettino, who remains under house arrest for abandoning ship and for manslaughter. Maritime law firm Edwards Wildman Palmer said that if Capt Schettino intentionally altered the vessel's course to approach too close to land and disabled navigation alarms, this could be raised as a basis for negligence or unseaworthiness claims. Incompetence of the master or crew also could render the vessel unseaworthy and thus negate cover." LLOYD‘S LIST, 10 February 2012, p 2 Regulators respond to pollution incidents - By Robin Acworth "Regulatory regimes for oil and gas exploration, production and transport in the EU, Australia and New Zealand are being restructured after the recent spate of pollution incidents. In October 2011, the European Commission proposed new regulations on the safety of offshore oil and gas activities, but these are being met with some opposition. The regulations would include licensing and pre-exploration and production risk assessment and would be enforced by national authorities empowered to impose penalties for infringements and prohibit deficient operations. Although they would include all offshore oil and gas activity within EU waters, including exclusive economic zones and continental shelves, the regulations would not strictly apply to EU-registered operators elsewhere in the world. Nonetheless, the regulation says EU-based licensees, operators and major contractors should ―endeavour‖ to conduct their operations outside the union in accordance with the principles set out in the regulations." FAIRPLAY, 9 February 2012, pp 26-27 China‟s pollution plans hot up "Marine service companies are piling into a new Chinese market for ship pollution control services. China‘s new pollution control regulations came into force on 1 January 2012 and apply to ship owners/operators carrying cargo representing a potential pollution risk or vessels over 10,000gt in Chinese territorial waters. Under the regulation, shipowners/operators must have a contract with a government-approved ship pollution response organisation (SPRO) to establish and implement a detailed ship pollution response regime before entering, leaving or commencing operations in port. The SPROs are mostly funded by oil sludge removal from ships." FAIRPLAY, 9 February 2012, p 27 Bottiglieri Challenger stranded in Mobile after magic pipe trouble - By Rajesh Joshi "A bulk carrier owned by Giuseppe Bottiglieri Shipping of Italy is stranded in Mobile, Alabama, and eight crewmembers are detained, including one as a criminal defendant, after a magic pipe dispute turned sour. An order from Magistrate Judge Sonja Bivens has taken the passports of the eight men away from them at the request of the US government, and they must remain in Mobile until the court says they may leave the jurisdiction. The owner has brought legal action against the government after getting into a tangle with the US Coast Guard over release terms for the 2010-built, 93,352 dwt Bottiglieri Challenger . The bulker became the target of a USCG pollution probe after a whistleblower's tipoff during a port call on January 24. "The issue is the tactics and demands of the government," owner's counsel George Chalos said." LLOYD‘S LIST, 16 February 2012, p 2 Costa Concordia compensation deadline extended as claims grow - By Liz McMahon "Nearly 40 passengers now involved in Miami lawsuit. Costa Cruises has extended the deadline by which Costa Concordia passengers can apply for its compensation package to March 31, 2012. However, this has not prevented further Costa Concordia passengers joining a lawsuit filed in Miami, Florida, against Carnival Corp , Carnival Cruises and Costa Cruises by law firms Napoli Bern Ripka Shkolnik and Proner & Proner. Six passengers were involved in the original lawsuit filed in January. The amended suit now takes the form of a mass tort filed collectively as individual actions on behalf of 39 passengers. The claims are being made on the grounds of maritime negligence, gross negligence, intentional infliction of emotional distress, negligent retention, fraudulent misrepresentation and fraudulent inducement." LLOYD‘S LIST, 16 February 2012, p 2 Nautilus warns against making master a scapegoat - By David Osler "Hostile publicity aimed at the master of Costa Concordia is detracting from investigations into the cause of last month's cruiseship casualty in Italy and will damage the industry's recruitment outlook, a leading seafarer union has warned.

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Francesco Schettino was subjected to a barrage of unfavourable media coverage for his handling of the incident, with some tabloids branding him Capt Coward. He faces multiple counts of manslaughter and other charges, which together theoretically carry a jail term of 2,697 years. Now Nautilus International has written letters about the case to a number of prominent shipping bodies, including the International Maritime Organization, the UK's Maritime and Coastguard Agency and the European Maritime Safety Agency. Nautilus expresses concern at the leak of recordings of communications between the ship and the coastguard and transcripts of phone conversations while Capt Schettino was in a police station." LLOYD‘S LIST, 20 February 2012, p 2 Transport Malta says long-awaited „Oliva‟ accident report still „open‟ - By Adam Corbett "Transport Malta is still unable to say when it will be able to provide a full accident report into one of the most significant casualties last year, some 12 months after the accident occurred. The Malta-registered, 75,000-dwt bulker Oliva (built 2009) inexplicably collided with Nightingale Island in the middle of the Atlantic in March 2008 fully laden with a cargo of soybean. Although the ship was safely evacuated, it was declared a constructive total loss (CTL) after the hull broke into two. Widespread pollution from the ship‘s bunkers and cargo also severely damaged the local fishing and lobster industry. The accident has been drawing a lot of attention because of a possible link with the use of modern navigational and bridge systems,as well as seafarer fatigue, both issues where is widespread concern in the industry." TRADEWINDS, 24 February 2012, p 54 Schettino faces fresh criminal charges - By David Osler "Costa Concordia master Francesco Schettino is facing new criminal charges and is now accused of abandoning incapacitated passengers and failing to inform the authorities of last month's cruiseship casualty, on top of existing counts of multiple manslaughter and abandoning ship before evacuations were complete. First officer Ciro Ambrosio, four other officers and three Costa Cruises executives are also under investigation, according to reports in the Italian media. The Costa Cruises managers have been named as vice president Manfred Ursprunger, fleet superintendent Paolo Parodi and Roberto Ferrarini, head of the company's emergency planning unit. Pre-trial hearings are set to open on March 3." LLOYD‘S LIST, 27 February 2012, p 2 Insurers assess Concordia fallout - By Jon Guy "Marine insurers have said they are ready to work with the maritime industry to ensure the lessons arising from the Costa Concordia tragedy are learned and implemented. Speaking after the winter meeting of the International Union of Marine Insurance (IUMI) executive, its president, Ole Wikborg, said he believed the incident highlighted a number of issues that have concerned underwriters for some time. ―We cannot speculate as to the causes of the grounding of the Costa Concordia but we believe the ongoing investigation will consider issues that we as an association have highlighted as areas of concern for some time,‖ he said. ―These include safe navigation, stability issues, crew competency in corporate systems and proper procedures and drills for the evacuation of passenger vessels.‖" FAIRPLAY, 3 February 2012, p p 24 Drill inquiries follow tragedy "Costa Concordia disaster prompts an industry review of procedures. Under International Convention for the Safety of Life at Sea (SOLAS) Chapter 3, passengers must be familiarised with a ship‘s safety installations and practise musters. Lifeboat drills – or muster drills –must also take place within 24 hours of embarkation if the vessel is engaged on a voyage where passengers are scheduled to be on board for more than 24 hours. SOLAS also requires that whenever new passengers embark, a passenger safety briefing is given immediately before or after sailing. But Costa Crociere CEO Pier Luigi Foschi noted that when Costa Concordia capsized on the night of 13 January, 696 passengers who had just boarded in Civitavecchia had yet to be part of a formal lifeboat drill. He noted that an evacuation tutorial is displayed on the in-cabin TVs of all embarking passengers." FAIRPLAY, 3 February 2012, pp 30-31 We need to admit there is a problem - By Adam Corbett "The intense, worldwide media focus on every facet of the Costa Concordia accident has done nothing to erase the public perception that shipping is inherently unsafe. The accident-prone reputation may be a little harsh and one that the industry has traditionally railed against but perhaps there is just too much evidence to keep insisting that there is nothing in the notion at all. The Costa Concordia is just one of a run of recent casualties that is making a mockery of decades of regulatory work intended to make the industry safer and more professional. The International Safety Management (ISM) code, the Standards of Training, Certification and Watchkeeping (STCW) code and its recent revision, as well as an improved understanding of the human element and the need for crew competency still could not prevent a cruiseship with 3,200 passengers from navigating onto rocks followed by a bungled evacuation process." TRADEWINDS, 3 February 2012, p 2 Ropax evacuation after fire held up as good example - By Adam Corbett "A fire on the ropax Lisco Gloria has emerged as an example of how evacuation procedures can be succesful amid growing safety concerns following the Costa Concordia accident. Some 235 passengers and crew were evacuated from the Lisco Gloria when a catastrophic fire that eventually destroyed the ship broke out in October 2010.

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The accident happened north-west of Fehmarn as the ropax made its way from Kiel to Klaipeda. It has been labelled by a joint German and Lithuanian accident-investigation report released this week as ―one of the most severe casualties in the Baltic Sea in recent decades‖. Yet despite the severity of the fire no lives were lost, although several passengers and crew were injured." TRADEWINDS, 10 February 2012, p 47 IMO set to review passengership safety - By Adam Corbett "Newly elected International Maritime Organization (IMO) secretary-general Koji Sekimizu is to kick off a fresh initiative on passengership safety following the Costa Concordia disaster that could lead to a safety review of the latest generation of mega-cruiseships. Sekimizu says that although under maritime international law, the incident could be handled entirely by the Italians and Italian law, he feels passengership safety should be tackled at a global level through the IMO. Speaking at the International Maritime Industries Forum event in London this week, he said: ―The Costa Concordia accident happened in Italy, it is an Italian ship with an Italian master sailing under the Italian flag. This could be handled under Italian law but among the passengers there were 70 other nationalities involved and the cruise business is an international activity.‖ He said he expects to set up a new agenda for discussing passengership safety at the upcoming Maritime Safety Council (MSC) meeting scheduled for May." TRADEWINDS, 17 February 2012, p 39 US Congress orders a safety review after Concordia sinking ―Vessel safety and operating standards on board US cruise ships will be the focus of a US Congressional hearing in February, the US House of Representatives‘ Transportation and Infrastructure Committee has said. The announcement on 19 January is in response to the loss of Costa Concordia.‖ SAFETY AT SEA, March 2012, p 7 Costa Allegra had fire safety deficiencies, records show - By David Osler "The cruiseship Costa Allegra was yesterday adrift in the Indian Ocean after a fire broke out over 200 miles off the Seychelles, operator Costa Cruises has confirmed. All 636 passengers and 413 crew are safe and the fire was extinguished. Costa is still reeling from the impact of the grounding of another of its vessels, Costa Concordia, off an Italian island on January 13. Some 32 people died as a result of the casualty, and the publicity from a second incident so soon afterwards is likely to be a damaging blow from a public relations perspective. A statement from Costa said that the blaze started in the electric generators room located aft at around 1039 hrs. The shipboard fire-extinguishing system and procedures were activated and the special fire-fighting squads intervened to extinguish the fire, which did not spread to any other area of the ship." LLOYD‘S LIST, 28 February 2012, p 2 Committee to probe records - By Roger Hailey "Washington's Senate Committee on Commerce, Science, and Transportation will this week look at the regulatory regime around the US cruiseship industry in light of the Costa Concordia grounding on January 13, to "review whether current cruise ship industry regulations sufficiently protect passengers and the environment". At a full hearing on March 1, the committee will consider questions relating to the "safety, security and environmental practices" of the cruiseship industry. "In light of the recent accident involving Costa Concordia off the coast of Italy, safety issues will be a particular focus of the hearing," a committee statement said. "Witnesses will address industry environmental practices and efforts to mitigate crime and maintain passenger safety and security on board US cruiseships." The 2006-built, Italy-flagged Costa Concordia capsized at night with more than 4,000 passengers on board near the island of Giglio in Tuscany. Vessel operator Costa Cruises is owned by Miami-based Carnival." LLOYD‘S LIST, 28 February 2012, p 2 Costa wins praise from union for crew agreement - By Adam Corbett "Costa Cruises has won support from local transport union Federazione Italiana Transporti (FIT) for its handling of the crew‘s welfare following the Costa Concordia tragedy. Spokesperson Leonard Di Fiori tells TradeWinds: ―Costa has always been good with the crew, we have a collective bargaining agreement [CBA] with them and they are also applying the Maritime Labour Convention 2006 and have signed the Social Accountability standard 8000 [SA 8000].‖ He says the response to the crew since the accident has been in line with its obligations to the CBA and welfare conventions. Rescued crew were put in a hotel with pocket money provided by the company. A consolidated salary, paying crew up to the end of their employment contract, was also paid out with a minimum set at two months‘ pay." TRADEWINDS, 3 February 2012, p 28 Royal Caribbean tries to reassure customers - By Craig Eason "Royal Caribbean Cruise Lines reports a slump in bookings for the 2012 season following the Costa Concordia casualty and is trying to bolster market confidence. The Miami-based, Oslo-listed company said new bookings were significantly down in Europe, although less so in the US, due to the grounding and capsize of Costa Concordia off Italy last month. Costa Cruises is owned by a rival to Royal Caribbean, theMiami-based Carnival. Trying to downplay the long-term impact of the accident, the company said it believed most observers and potential guests understood that cruising was safe and that the Costa Concordia incident was an anomaly." LLOYD‘S LIST, 3 February 2012, p 2

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Concordia impact felt in passenger bookings "The first pangs of revenue pain are felt in the wake of the Concordia tragedy. The fallout from the 13 January Costa Concordia disaster off Italy has hit new cruise bookings significantly, affecting Europeans and first-timers more than North American passengers and repeat travellers, according to Royal Caribbean Cruises Ltd (RCCL), the world‘s second-largest cruise shipping group. The Miami-based company, which commands 24% of global cruise capacity, said there had been no material change in cancellations, which have remained within normal levels. ―However, new booking activity has been hurt. Overall booking volumes from North America have fallen by low to mid-teen percentages compared with the same time last year." FAIRPLAY, 9 February 2012, p 24 INTERNATIONAL MARITIME ORGANIZATION (IMO) Implications of the United Nations Convention on the Law of the Sea for the International Maritime Organization. London : IMO, 2012 (IMO Doc. LEG/MISC.7) IVANOVA, M. / GORDON, D. / ROY, J. Towards institutional symbiosis : Business and the United Nations in environmental governance. In: Review of European Community and International Environmental Law Vol. 16/No. 2, 2007, pp 123-134 KIERN, L.I. Liability, compensation, and financial responsibility under the Oil Pollution Act of 1990 : A review of the second decade. In: Tulane Maritime Law Journal Vol. 36/No. 1, 2011, pp 1-64 WILSON, D.G. Interdiction on the high seas: The role and authority of a master in the boarding and searching of ship ship by foreign warships. In: Naval Law Review Vol. 55, 2008, pp 157-211

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MARINE TECHNOLOGY FMC commissioner says LNG 'credible alternative fuel' - By Roger Hailey "A top Federal Maritime Commission official has encouraged further development of liquefied natural gas technology as a "credible fuel alternative" for shipping. Commissioner Mario Cordero told the World LNG Fuels Conference in Texas that while many people remain "frustrated" by the slow progress of alternative fuel application, "I suggest we remain optimistic with the present scope of the environmental agenda". Expressing his personal view and not that of the US maritime regulator, Mr Cordero highlighted Kawasaki Heavy Industries' development of a 9,000 teu containership fuelled by LNG." LLOYD‘S LIST, 2 February 2012, p 2 Boxships welcome scrubbers on board "A turnkey contract with Finnish operator Containerships has given Wärtsilä its first scrubber sale. The agreement covers the retrofitting of a Wärtsilä freshwater scrubber for the vessel Containerships VII, which is equipped with a Wärtsilä W7L64 main engine. The scrubber will be delivered in August and will allow the vessel to meet future sulphur oxide emission requirements in sulphur emission control areas (SECAs). TheWärtsilä scrubber works with fresh water in a closed-loop system within which sulphur oxides are neutralised with caustic soda. A small amount of scrubbing water is extracted to remove contaminants in a treatment unit on board, thereby fulfilling all the quality and monitoring requirements stipulated by the IMO." FAIRPLAY SOLUTIONS, February 2012, p 4 JV studies LNG fuel "A Swedish/South Korean consortium is to look at developing a system to deliver LNG as a fuel to gas-powered ships. Swedish organisations SSPA, FKAB, White Smoke and Swedish Marine Technology Forum have signed a joint agreement with the Korean energy giant Kogas to evaluate the possibilities for developing a Korean system for delivery of LNGt o gas-fuelled ships.The project is to be completed in April and will form the basis for further development of an LNG supply system in Korea." FAIRPLAY SOLUTIONS, February 2012, p 5 Regulation as a driver "Environment and labour rules promote applications for IT software solutions. There is a ―surge in regulatory requirements‖ that is helping to drive maritime software adoption, believes Demetri Stroubakis, senior vice-president for global operations of ABS Nautical Systems. To comply with ballast rules, for example, ABS Nautical Systems‘ software will alert users to ―which zones they‘re in and what the requirements are for that zone, to assist crews on what actions they need to take‖, he explained." FAIRPLAY, 9 February 2012, p 30 Hercules project to cut ship fuel emissions enters third phase - By Craig Eason "The third phase of a €76m ($100.2m) budgeted research programme is about to launch, looking to cut ships' fuel

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consumption and emissions. Phase one of the Hercules project started in 2004 and the second in 2008. The third phase will run until 2014. Hercules is one of the few research projects in which the industry's two main competitive engine makers, Man Diesel and Wärtsilä , share know-how. It is cited as one of the few marine technology projects that has put a strong focus on commercialising its findings and thus giving shipowners the benefits of emissions reductions. More than 40 businesses, universities and research centres in Europe collaborated in the first two phases of Hercules, which helped to create turbocharger technologies to improve fuel consumption. The first phase focused on overall emissions and efficiency and the second on reducing diesel engines' fuel consumption by 10% to improve efficiency of propulsion systems by 60%." LLOYD‘S LIST, 13 February 2012, p 2 Maritime technology must deliver on its promises - By Craig Eason "With ship technology becoming ever more complex, owners have been forced to outsource maintenance work, but should they remain responsible for non-compliance under port state rules and have vessels risk detention? Regulatory changes from the International Maritime Organization, along with commercial demand for more cost-efficient shipping, have led to numerous new technologies being installed on ships. Some of these, like ballast water treatment systems, SOx scrubbers or fuel-efficiency tools fall under compliance checks of a port or flag state inspector." LLOYD‘S LIST, 14 February 2012, p 7 MOL starts exhaust filter trials "Tests are under way on a filter to remove particulate matter from diesel fumes. Trials have begun in Japan on a self-cleaning diesel particulate filter (DPF) system installed on an MOL vessel. The filter has been fitted to its auxiliary engine and MOL said this was the world‘s first application of the device on an oceangoing ship. MOL conducted a DPF demonstration test in 2010 using the main engine of a coastal ferry. For MOL, the project is one of a number of environmental strategies in its Gear Up management plan and the company ―continues to take a proactive stance in the adoption of various technologies that reduce the environmental burden of its activities‖, it said." FAIRPLAY, 16 February 2012, p 37 LNG‟s Bunker mentality ―The Naval Architect continues its LNG series with two more points of view from industry leaders. Touted as the fuel of the future LNG has some way to go before it becomes the short-term answer as a comparatively clean ship fuel. Andy Alderson, deputy MD at Hart Fenton & Co consultants relates some hard facts about the critical factors and issues of LNG bunkering from a designer‘s point of view.‖ THE NAVAL ARCHITECT, February 2012, pp 18-22 Lack of green spend hits manufacturers - By Craig Eason "Shipowners' reluctance to invest in non-obligatory environmental equipment has begun to hit some of the industry's technology providers. SkySails, the German developer of a kite systemthat uses the wind to help power smaller vessels, has shed about half its staff because its system failed to attract buyers. Meanwhile, Wilhelmsen Maritime Services, a supplier division of Norway's Wilh. Wilhelmsen Holdings, has said it is going to be streamlined to optimise profit due to clients losing the appetite to invest in all but the more necessary work. Finnish engineering firm Wärtsilä has seen revenues for its services division dented as owners shun all but the most pressing work for compliance purposes. However, while investment in environmental technology is low, manufacturers are still optimistic that deadlines and new regulations will eventually give them future revenues." LLOYD‘S LIST, 21 February 2012, p 7 Owner says yes to scrubber system - By Craig Eason "Dutch shipowner Spliethoff, which operates Transfennica ro-ro liner services, heavylift subsidiary BigLift Shipping and shortsea business Wijnne Barends, has become the latest shipowner to fit a SOx scrubber on a vessel operating in an emission control area. The announcement came in the week in which shipowners and manufacturers held talks in the UK about how to move abatement technology forward to achieve reduction targets set into international rules. Spliethoff will fit the world's largest seaborne exhaust gas cleaning system when it installs a single unit to clean emissions from the main engine and auxiliary engines of a vessel operating regularly in the European ECA. With a total combined power outlet of 28 MW, the unit exceeds the current largest system on DFDS ferry Tor Ficaria , which has a 21 MW unit." LLOYD‘S LIST, 21 February 2012, p 7 Shipping gears up for next revolution in marine power - By Craig Eason "One hundred years ago the first oil-powered ship, Selandia, was handed over to its Danish owners, marking the demise of steam power and the start of the era of diesel and heavy fuel oil. It was also 100 years before Selandia that Comet, the first commercial steamship, left a Scottish shipyard in 1812, introducing a new form of propulsion to beat sail and herald the end of the huge clippers. Today the same sort of comments are being made about gas-powered shipping, after the first gas-powered ferries in Norway heralded the start of a regional drive to make the use of liquefied natural gas more widespread." LLOYD‘S LIST, 23 February 2012, p 4

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Super-strength broadband banned "The super-powerful mobile terrestrial broadband developed by United States company LightSquared has been banned from commercial use because of its interference with industry standard GPS systems. Last week the National Telecommunications and Information Administration (NTIA) concluded that Light-Squared‘s proposed network ―will impact GPS services and that there is no practical way to mitigate the potential interference at this time.‖ In an eight-page letter to the chairman of the Federal Communications Commission (FCC), the NTIA‘s administrator, Lawrence Strickling, said its findings were based on testing and analyses, together with ―numerous discussions‖ with LightSquared. ―It is clear that LightSquared‘s proposed implementation plans … would impact both general/personal navigation and aviation GPS receivers.‖" FAIRPLAY, 23 February 2012, p 31 LNG-fuelled boxship designs get the thumbs-up from Class ―Liner operators‘ costs could be slashed following the class approval of the basic design for two LNG-fuelled containerships developed in separate projects by Korea‘s Daewoo Shipbuilding & Marine Engineering (DSME) and Japan‘s Kawaski Heavy Industries (KHI). The Korean offering, the larger of the two designs, with a 14000TEU capacity, was developed, in cooperation with CMA CGM and Bureau Veritas, the French classification society that has approved the design in principle.‖ SHIPPINGWORLD & WHIIPBUILDER, February 2012, p 23 Hapag-Lloyd fleet lands EEDI certification - By Patrick Hagen and Craig Eason "German liner company Hapag-Lloyd has had its entire fleet certified under its own management under the Energy Efficiency Design Index by Germanischer Lloyd. The EEDI was introduced by the International Maritime Organization and aims primarily to deliver a benchmark for energy efficiency of newbuildings. It will be mandatory for newbuildings from 2013. The standard will gradually become more rigorous in future. All 36 of Hapag-Lloyd's owned vessels, which are managed by the carrier itself, already have an EEDI that is higher than average for the active global fleet, according to a company spokesman. Most of the vessels certified were significantly below the average reading; about a third beat the benchmark by more than 20%, he added. However, vessels owned by Hapag-Lloyd but managed by third-parties were not included in the certification process." LLOYD‘S LIST, 28 February 2012, p 2

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MARITIME SAFETY Up to 45% of watchkeepers sleep while on duty - By David Osler "Up to 45% of watchkeepers are likely to doze off at least momentarily while on watch in a normal working week, according to experiments conducted ashore on simulators as part of a major research project into fatigue at sea. The findings will be unveiled today with the publication in London of a report called Project Horizon - a Wake-up Call, which is sponsored by a range of bodies including classification society Bureau Veritas, the Standard P&I Club, the Maritime and Coastguard Agency, the Marine Accident Investigaton Branch, Warsash Maritime Academy and seafarer union Nautilus International. The exercise was conducted to undertake scientific measures of fatigue in various realistic seafaring scenarios, using bridge, engine room and cargo simulators, and to assess impact on decision-making performance." LLOYD‘S LIST, 1 February 2012, p 2 Intercargo issues new safety guidelines for nickel ore carriers after spate of accidents - By Liz McMahon "Bulk cargo trade body Intercargo has published guidelines on transporting nickel ore to prevent seafarer deaths before the "momentum of unwillingness to carry becomes unstoppable". The new guidelines follow the recent sinking of four bulk carriers transporting nickel ore and the deaths of 66 seafarers in just over a year. Intercargo chairman Nicky Pappadakis said the association wanted exporting countries to work with shippers to address shortcomings in processes. Mr Pappadakis urged all partners to load more responsibly and to comply with the legal requirements set out in the International Maritime Solid Bulk Cargoes Code." LLOYD‘S LIST, 2 February 2012, p 4 Ballast change warning from P&I club "UK-based North P&I Club has warned shipowners to take great care when attempting to comply with ballast-water rules by exchanging ballast water at sea. In the latest issue of its loss prevention newsletter Signals the club reminds members that a properly prepared and implemented procedure for ballast water exchange is essential to prevent a loss of ship stability." FAIRPLAY SOLUTIONS, February 2012, p 6 Why a rest is best "Tiredness can kill. If we have learned nothing more from the Project Horizon study into the effects of fatigue, shipping can now be certain that fatigue must be treated like any other risk on board. Understanding how seafarers react when regular sleep patterns are disturbed can go a long way towards predicting when accidents are likely to occur. That‘s worth knowing. Horizon, which drew on expertise from 11 academies and institutions and carried out simulator studies at Warsash Maritime Academy at Southampton Solent University in the UK and Chalmers University in Sweden, discovered through empirical evidence what most seafarers already knew. Watchkeepers are most likely to nod off

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during the midnight to 0400 period, whether on a six hours on/six off or four on/eight off duty, that seafarers get more sleep on a four on/eight off pattern and that performance deteriorates towards the end of the early morning watch, especially on six on/six off." FAIRPLAY, 9 February 2012, p 5 Asbestos „failure‟ by class societies - By Geoff Garfield "Ship recyclers are firing off claims that class societies have failed to police the industry and wrongly issued safety certificates. Scores of ships built in the last 10 years containing substantial amounts of banned asbestos have triggered claims that classification societies have failed to police the industry. A major asbestos ban was introduced for ship installations in 2002 and a total ban at the beginning of last year. But it is acknowledged that a large-scale problem persists and the International Association of Classification Societies (IACS) has now submitted a paper to the International Maritime Organisation (IMO) focussing on a ―unified interpretation‖ of the regulations, seeking to clarify especially where responsibility lies. It has sparked, however, a scathing criticism by a well-known figure in the ship-recycling industry where asbestos in end-of-life vessels continues to be of major concern." TRADEWINDS, 10 February 2012, p 3 „Robust verification process‟ needed to stamp out menace - By Geoff Garfield "Paul Sadler, International Association of Classification Societies (IACS) permanent representative to the International Maritime Organisation (IMO), says IACS is concerned at the emphasis being placed on classification societies and recognised organisations (ROs) to discover asbestos once it is on board ships. A better way of dealing with the problem is to ensure that when equipment is ordered a ―robust verification process‖ is in place, he says. The issue was currently being tackled from the ―wrong end‖. Sadler says the thrust of IACS‘s paper to next week‘s sub-committee on ship design and equipment is how such verification should be achieved. ―We believe, as far as possible, that the emphasis should be on getting asbestos-free declarations and supporting documentation at the time equipment is supplied to the shipyard or repair yard,‖ he said." TRADEWINDS, 10 February 2012, p 3 Flag chief drives quality targets - By Yiota Gousas "Safety comes first as Gibraltar gears up to adopt new labour regulations. The convention, due to come into force this year, will standardise crew wages and living conditions on ships worldwide. The measure has stirred unease among shipowners as it will increase crew wages by 3% on average especially for non-specialised ships, according to reports." TRADEWINDS, 10 February 2012, p 28 Titanic memorial booklet published ―The Guild of Benevolence of the Institute of Marine Engineering, Science and Technology has now published a booklet commemorating the sacrifice made by the engineers of the Titanic. When the liner sank in 1912, the engineers stated at their posts keeping the lights burning until she sank. In the process they all perished and a fund was started to raise money for their dependents.‖ MER, February 2012, p 8 Vessels in Arctic waters need to install crisis gear, says lobby - By Craig Eason "A group of technology companies wants countries involved in developing the Arctic to fit their vessels with onboard crisis gear to be prepared to respond to an emergency. The Maritime Passive Safety Association wants polar ships to install systems to make salvage operations easier if there is a serious disaster, including pumps, hull patches and a pipe system to ease bunker fuel recovery. The lead company in the group is JLMD systems, which proposes a series of extraction pipes that will make it easier for salvage crews to remove bunker oils from stricken vessels as they battle bad weather and remote locations, to minimise the environmental impact of a casualty." LLOYD‘S LIST, 21 February 2012, p 7 Work patterns 'can no longer be justified', says Nautilus By David Osler "Seafarers union Nautilus International, one of the sponsors of Project Horizon, has welcomed the study's findings, saying that they take knowledge and understanding of fatigue at sea to a new level. "What the study has demonstrated is that current working patterns can no longer be justified and are not acceptable on safety grounds," said Nautilus senior national secretary Allan Graveson. "The research has shown in a scientifically robust way that the longer the time you are on watch, and the longer the time you are doing those watches, the more tired you become." Owners, operators and regulators need to respond positively to the findings, Mr Graveson said." LLOYD‘S LIST, 22 February 2012, p 4 Cruise ships “the safest type” Big ships are not less safe or harder to evacuate in a crisis than small ships, according to experts speaking on behalf of the global cruise industry. At a press conference held in London on 19 January during the Passenger Ship Safety Conference, independent maritime consultant and shipping safety expert Tom Allan said that he disputed the point that bigger ships are less safe and harder to evacuate. ‗I don‘t think it makes any difference what the size is. And sometimes because they are bigger it gives more flexibility to include other safety initiatives that might not be possible on smaller ships‘ he said.‖ SAFETY AT SEA, March 2012, p 8 INTERNATIONAL MARITIME ORGANIZATION (IMO)

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Solas amendments 2010 and 2011. London : IMO, 2011(ISBN 978-92-801-1542-0) POLISH REGISTER OF SHIPPPING Safe shipping on the Baltic Sea - Symposium - Poland (23 September 2011 : Gdansk) . Gdansk : Polish Register of Shipping, 2011

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MARITIME SECURITY AND PIRACY Owners must justify claim of piracy risk if route changed - By Liz McMahon "Shipowners wanting to avoid the Gulf of Aden will have to prove that, with reasonable judgement, there is a real likelihood the vessel will be exposed to piracy, following a final High Court ruling. The judgment, given by Mr Justice Teare on January 25, relates to the Pacific Basin IHX v Bulkhandling Handymax AS [2011] EWHC 2862 (Comm). The main issue concerned the interpretation of the words in the war risks clause of the Conwartime 1993 charter, determining whether a shipowner was justified in changing the voyage route contrary to the charterer's orders. Swinnerton & Moore instructed Michael Nolan for the claimant. Partner Tony Swinnerton said the ruling was a useful clarification of the test shipowners need to satisfy if they wish successfully to decline orders to undertake transits of areas affected by piracy not limited to the Gulf of Aden." LLOYD‘S LIST, 2 February 2012, p 2 UK rules on armed guards to remain unclear for at least six months - By Liz McMahon "Despite widespread calls, a consultation on UK rules governing private maritime security companies is not due until the summer and any attempt at enforcement will come at least two months after this date. At an All Parliamentary Maritime and Ports Group meeting held on January 17, Foreign and Commonwealth Office head of peacebuilding and rule of law team Ian Proud said a two-month consultation would be forthcoming in the summer that would lead to a draft charter. After the rules had been subjected to a two-month consultation process, Mr Proud said, there would be a need for companies to demonstrate they were complying with internationally-agreed standards." LLOYD‘S LIST, 2 February 2012, p 4 Fifth of arms and drugs trafficked on German boxships - By Katrin Berkenkopf "Arms and drug traffickers rely on regular containerships to transport illegal cargo, according to a recent study by the Stockholm International Peace Research Institute. The global study reports that German-controlled vessels accounted for almost 20% of reported cases of arms and narcotics trafficking. Illegal gangs use sealed containers employed in regular liner trades as "the most cost-effective method when traffickers are confronted by well-resourced and co-ordinated surveillance operations", the SIPRI report found." LLOYD‘S LIST, 2 February 2012, p 7 Sri Lanka grows armed guard support services - By Rohan Gunasekera "Galle has become a key port for transfers of armed guards on merchant ships. Sri Lanka, which has just emerged from a 30-year ethnic war, is well-placed for anti-piracy missions, situated as it is just off the main east-west shipping route and with considerable experience of, and personnel trained in dealing with, the maritime terrorism of the Sea Tigers. These skills are being put to good use at Galle, located on the southwest coast and a convenient transit point for marine services and security companies offering sea marshal services. As more shipowners have started using onboard security teams, Galle has seen a sharp rise in activity by marine logistics and supply firms that provide armed guard transfers." FAIRPLAY, 3 February 2012, p 31 Combined data tracks pirate threat "The ability to draw information from a wide range of sources to monitor pirate activity was demonstrated in London last week. Esri UK, which provides a range of services based on geographic information, showed that its systems could be used to combine information that is already available into a single operational picture, from which ―faster and more informed decisions can be made‖. the company said. The demonstration included contributions from exactEarth, which can provide satellite imagery; Exelis VIS, which has image processing technology that can identify ships from their images; i2, which monitors open-source information to monitor terrorists; and IHS Jane‘s and IHS Fairplay, which can provide naval and commercial ship information, together with positional data from their AISLive ship tracking service. But these are just examples of the data sources that can be used, explained Mark Clews, Esri UK‘s defence and national security technical support manager. ―We‘re selling an idea,‖ he told Fairplay after the demonstration." FAIRPLAY, 3 February 2012, p 32 Private maritime security body launches self-regulation scheme - By Liz McMahon "With no international set of standards to police armed guards, the Security Association for the Maritime Industry has launched its own accreditation programme. The move pre-empts work under way by special-interest

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group the Security and Complex Environments Group, which has a government mandate to develop and implement self-regulation for the UK private-security industry. SCEG has the authority to create formal standards for private maritime security companies operating in the UK. The group is holding a conference in London on March 5. It said it hoped to publish draft standards shortly and would seek industry comment. SAMI founder Peter Cook recently attended the All-Party Parliamentary Maritime and Ports Group meeting, Protecting world trade: armed guards and piracy. He told the meeting that SAMI's 112 members, of whom 60% were from the UK, were pushing for accreditation." LLOYD‘S LIST, 7 February 2012, p 2 Packed conference room backs use of armed guards and due diligence on providers - By Jim Mulrenan "Overwhelming support for the use of armed guards to protect vessels came in a show of hands at the end of a debate on the Somali pirate threat. A packed conference room appeared to back the proposition that armed security was better than a ship being hijacked but there was recognition that a fire fight could escalate into a bloodbath. The protection-and-indemnity (P&I) clubs in the International Group have a broadly neutral stance on the use of armed guards but club managers adopted positions on both sides of the argument to stimulate debate." TRADEWINDS, 3 February 2012, p 19

Somali piracy costs world economy an estimated $7bn - By David Osler "The economic cost of Somali piracy last year came to somewhere between $6.6bn-$6.9bn, with about 80% of the bill falling on the shipping industry, according to research compiled by a US non-governmental organisation. Such vast expense stands in sharp contrast with total expenditure of just $38m devoted to prosecutions, imprisonment and the building of regional and Somali capacity to tackle the menace, the Oceans Beyond Piracy project points out. " LLOYD‘S LIST, 8 February 2012, p 1 US extends container scanning requirement - By Roger Hailey "Washington will extend the deadline for foreign ports to implement 100% scanning of US-bound maritime containers to July 2014 after the US Department for Homeland Security confirmed it will grant a two-year blanket extension on the original, controversial deadline of July this year. The Committee on Homeland Security's Subcommittee on Border and Maritime Security heard evidence yesterday that "uncertainty persists" on fulfilling the mandate for 100% scanning and that the feasibility "remains unproven", given the challenges the Customs and Border Protection agency has faced implementing a pilot programme. " LLOYD‘S LIST, 9 February 2012, p 2 Marked spike in piracy attacks across the globe - By Dale Wainwright "Worldwide incidents of piracy saw a marked spike in January compared to the previous month. Forty-six attacks were reported last month, an increase of 170% from the 17 seen in December, says maritime-risk specialist AKE. The UK-based company says there was a rise in incidents in the Indian Ocean, Gulf of Guinea, South China Sea and even Latin American waters. Attacks off East Africa jumped considerably in January to their highest level in six months, according to AKE. Twenty-one attacks were reported, as compared with just five in December. However, success rates remained level at around 9.5%. According to AKE maritime analyst Rory Lamrock, the pirates do not appear to be deterred by heightened security measures." TRADEWINDS, 10 February 2012, p 31 Armed guards are not the answer to piracy, say shippers - By Janet Porter "A group of shippers has questioned the use of armed guards on ships sailing through pirate-infested waters, but also warns of the economic consequences of diverting ships to longer routes to avoid the risk of attack. The European Shippers' Council says in a position paper that it does not believe armed personnel are the answer, even though they are now being widely deployed. Shipowners who choose to protect their ships that way also have the support of a number of governments. In the UK, the law is being changed to ensure shipowners do not risk prosecution if they employ armed guards. However the ESC, which represents a number of national shipper associations, is concerned that other issues could arise if armed guards are used." LLOYD‘S LIST, 15 February 2012, p 2 Plague of piracy is a call for the world to unite as one ―As calls for a UN naval task force to combat piracy grow stronger, a leading maritime lawyer gives his vies.‖ TANKER OPERATOR, Jan/Feb 2012, p 20 Indian fishermen shot dead by Italian anti-piracy team - David Osler and Liz McMahon "Two Indian fishermen have been shot dead after naval security personnel on board the tanker Enrica Lexie took them for pirates about 14 miles off Kerala's Alappuzha coast on Wednesday afternoon. The victims have been named as Ajesh Binki, 25, and Jalastein, 45. Conflicting reports are emerging about the incident. The Italian embassy said in a statement: "The Italian ship was attacked in international waters about 30 miles off the southwest coast of India. Italian navy personnel on board following international protocols, after repeated warnings and after ascertaining from binoculars that the pirates were armed, gradually fired some warning shots and the pirates withdrew. However, India's Directorate General of Shipping has insisted that the two dead men were innocent. The directorate has confirmed that the guards, who are in custody along with the master of the 2008-built, 104,769 dwt vessel, are Italian naval personnel. Initial

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reports were unclear on that point, leaving private military contractors to ponder the legal and insurance implications. "Given the proliferation of armed guards and the continued threat to ships, it is an inevitability that mistakes will occur," Lloyd's Market Association senior executive underwriting Neil Smith said." LLOYD‘S LIST, 17 February 2012, p 2 Enrica Lexie guards and officers not immune from criminal law - By David Osler "Naval personnel engaged in vessel protection duties are not immune from the criminal law of the flag state and murder charges are at least possible in the Enrica Lexie case, legal sources suggest. While the facts surrounding the deaths of two Indian fishermen on Wednesday have yet to be established, it is clear that simply being a member of a country's armed forces does not confer the right to use lethal force other than in self-defence. This means that anything short of absolutely necessary self-defence - for instance, long-range sniper rifle fire - can be deemed an offensive action. Such protections apply even to pirates, let alone peaceful fisherman. Because the Enrica Lexie incident took place outside Indian territorial waters, the law of flag state Italy will probably apply. Both murder and manslaughter charges could come into consideration." LLOYD‘S LIST, 17 February 2012, p 2 Push to label Nigeria and Benin coasts as „high risk‟ - By Adam Corbett "Pressure is growing for the coasts of Nigeria and Benin to be designated high-risk areas in response to the increased targeting of shipping in the region and the reported murder of a master and chief officer on a bulker this week. A designation would allow seafarers to opt out of working in the region but for those who continue to work it could potentially see wages doubled and will also have significant implications for insurance rates. The International Transport Workers Federation (ITF)‘s maritime co-ordinator, Steve Cotton, says he has already proposed to the International Bargaining Forum (IBF) collective bargaining agreement to consider the region a high-risk area and talks were opened in Tokyo earlier this month." TRADEWINDS, 17 February 2012, p 38 Enrica Lexie targeted by murder investigation - By David Osler "Indian police have opened a murder inquiry relating to the crew of an Italian tanker after two local fisherman suspected of being pirates were killed after coming under fire from the vessel. Meanwhile, Indian defence minister AK Antony has demanded punishment for "the guilty", even though investigations are still incomplete and the matter has yet to come before a court of law. In addition, the state government of Kerala has pledged to underwrite any legal expenses incurred by the victims' families in seeking compensation from operator Dolphin Tanker. Accounts of the events still differed at the time of writing, with the Italian embassy insisting that 2008-built, 104,769 dwt Enrica Lexie was attacked first, that the fishermen were armed, and that warning shots were fired." LLOYD‘S LIST, 20 February 2012, p 2 Italy demands right to try Enrica Lexie suspects - By David Osler "Italy is demanding the right to try two members of a vessel protection detachment accused of shooting dead two Indian fishermen last week, apparently because they feared that the victims were pirates. Massimiliano Latore and Salvatore Girone, both Italian marines, were yesterday remanded in custody until March 5 by a magistrate in Kollam. They have been charged with murder under section 302 of the Indian penal code. The accused were part of a security detachment on board the Dolphin Tanker-operated vessel Enrica Lexie at the time of the incident last Wednesday. Accounts of exactly what happened differ sharply, and are causing diplomatic tensions between India and Italy. The Italian foreign ministry said in a statement that the incident occurred on an Italy-flagged ship in international waters, and that therefore Italy had jurisdiction. Moreover, as members of the armed forces, the men had immunity from prosecution by other states." LLOYD‘S LIST, 21 February 2012, p 2 Penning demands global drive to tackle piracy - By David Osler "Somali piracy is a global problem that requires a global solution, UK shipping minister Mike Penning will tell delegates at a special piracy conference taking place at the International Maritime Organization in London today. The UK shipping minister will chair some of the sessions at the event, which is designed as a warm-up for the London Conference on Somalia that will take place on Thursday. Attendees will include representatives from a number of countries and members of the shipping and insurance industries. The discussions will focus on efforts to reduce the number of successful pirate attacks in the region, including recent successes through co-ordinated naval operations. Other topics are likely to include Best Management Practices anti-piracy guidelines, new initiatives to ensure that pirates cannot act with impunity and the need to prosecute all pirates, include pirate gang leaders." LLOYD‘S LIST, 21 February 2012, p 2 What price for piracy insurance? - By Liz McMahon "Insurers have questioned an Oceans Beyond Piracy report which says shipowners paid $635m in insurance to protect themselves from piracy last year. The figure led commentators to criticise the insurance industry's approach to piracy, after OBP programme manager Anna Bowden said the costs of preventing piracy were disproportionately high. "It is also a concern that 99% of these costs are recurring costs - that is, costs that must be repeated each year

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to deter piracy," Ms Bowden said. "There needs to be a reassessment of the long-term sustainability of these costs."" LLOYD‘S LIST, 21 February 2012, p 4 London hosts Somali piracy conference - By David Osler "Piracy in Somalia will be among the main topics discussed at a major international conference on Somalia in London today, although the shipping industry will make itself heard only indirectly at best. Among those attending will be heads of state and foreign ministers from more than 50 countries, including UN secretary-general Ban Ki-moon and US Secretary of State Hillary Clinton. The discussions will focus on practical measures to tackle questions including security, political progress towards effective government, stability and humanitarian issues. Repeated hijackings of vessels in the Gulf of Aden and Indian Ocean are thought to have cost the global economy anything up to $7bn last year, according to a recent report from a US-based think tank. Shipping had to foot up to 80% of the bill. However, it is understood that no shipowners or shipping trade associations have been invited to the event, which was announced last year by the UK's prime minister David Cameron." LLOYD‘S LIST, 23 February 2012, p 2 Updating piracy laws "Outdated criminal laws could be the reason why the prosecution of pirates is a major problem around the world. All countries have a duty to suppress pirates, according to articles 100–107 of the UN Convention on the Law of the Sea (UNCLOS – delineates for its 162 signatories how the world‘s oceans can be used), but it‘s up to the individual states to decide how to do that. Many states have allowed their domestic piracy laws to lapse, become obsolete and ―no longer practical to enforce‖, Doug Burnett, piracy lawyer at Squire, Sanders & Dempsey, told Fairplay. ―And because criminal laws are involved, only the state can provide the solution,‖ he added." FAIRPLAY, 23 February 2012, p 26 Puntland poised to launch armed counter-piracy force - By Richard Meade "An armed counter-piracy police force, funded by the UAE government and trained by private security, is poised to begin operations inside the Somali state of Puntland after previous attempts to launch such a force floundered. Speaking exclusively to Lloyd's List ahead of the UK-sponsored Somalia conference held in London yesterday, Puntland's interior minister Abdullahi Ahmed Jama confirmed that the Puntland Maritime Police Force would be resuming operations imminently and directly targeting pirate gangs on land. The Puntland counter-piracy force was established back in 2010, before being suspended in February last year under pressure from several UN agencies who criticised the force's lack of transparency, the issue of arms sanctions and the lack of a legal framework to support operations. According to Mr Jama those issues have now been resolved and the police force is now expected to resume training and recruiting with the backing of international governments." LLOYD‘S LIST, 24 February 2012, p 1 UK unveils Somalia aid "British Prime Minister David Cameron said a conference on the future of Somalia held in London yesterday "reached agreements on seven key areas" to aid the war-torn country that is the source of the majority of pirate attacks in the Indian Ocean. The steps include measures to promote security and development, tackle piracy and bring a "new momentum" for a political process. The final communiqué of the conference said there must be no further extensions to the transitional government's mandate after August. "We reiterate our determination to eradicate piracy, noting that the problem requires a comprehensive approach on land as well as at sea. We agreed on the importance of disrupting terrorists' travel to and from Somalia, and on the importance of disrupting terrorist finances," the statement said." LLOYD‘S LIST, 24 February 2012, p 1 LNG carrier owners step up the use of armed guards - By Hal Brown "Owners of liquefied natural gas carriers are increasingly turning to the use of armed guards on their ships to prevent the potentially disastrous consequences of a hijacking by pirates, experts said today. Capture and holding of an LNG carrier by pirates, which has not so far occurred, would have worse consequences than for other types of vessels, said a panel of experts at Informa's LNG Shipping Conference in London. Ransoms would be higher given that LNG ships are the most expensive of any ships at around $200m, said Ince & Co partner Stephen Askins. "The size and profile of these ships means dollars for the pirates. I'd be surprised if the ransom was less than $13m if an LNG carrier was taken," he said. More worrying, however, are the safety issues surrounding an LNG carrier with a large cargo of methane falling into the hands of untrained pirates." LLOYD‘S LIST, 24 February 2012, p 2 Industry funds Somalia job creation - By David Osler "Community projects aim to lessen appeal of piracy. Shell, BP, AP Moller-Maersk and the Japanese shipping industry have unveiled a joint initiative to support community and job creation projects in the coastal regions of Somalia, in an announcement timed to coincide with the London conference on Somalia. Each participant will contribute around $500,000 over a two-year period. Grahaeme Henderson, head of Shell Shipping, said: "Ending piracy lies in part in helping the people of Somalia, and providing education and alternative livelihoods." LLOYD‘S LIST, 24 February 2012, p 2

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UK puts biometric ID for seafarers on hold - By David Osler "Britain has placed plans to ratify an international deal on biometric identification for seafarers on indefinite hold while it sorts out technical glitches, shipping minister Mike Penning has confirmed. The minister also said that a consultation on signing the Consolidated Maritime Labour Convention would start within a few months. He was responding to two written parliamentary questions from Labour MP John McDonnell, who is sponsored by the ratings union RMT. To date, the UK has held no ministerial-level discussions on International Labour Organisation calls for a universally recognised biometric ID card for seafarers, known officially as the Seafarers' Identity Documents Convention (Revised) 2003 and colloquially as ILO 185. However, discussions continue between Department for Transport officials and their counterparts in the UK Border Agency and Identity and Passport Service." LLOYD‘S LIST, 24 February 2012, p 2 Deaths flag lack of clear guidelines - By Adam Corbett "The need for clear rules of engagement in conflict situations are in the spotlight following the shooting of two Indian fishermen by crack marines on an Italian ship. Two Italian soldiers who stand accused of murdering two innocent Indian fishermen while protecting the Enrica Lexie (built 2004) last week were not private security guards but from the San Marco Regiment, a crack team of Italian Marines. Lattore Massimiliano and Salvatore Girone were assigned to the 104,000-dwt products tanker as part of an agreement between the Italian defence ministry and the national shipowners‘ association to protect Italian-flag tonnage from Somalian piracy. They have been remanded in custody by an Indian court following the incident 48 kilometres (30 miles) off the coast of Kerala on 15 February. The system, generally known in the industry as vessel protection detachment (VPD), is intended to provide better, officially authorised security and reduce the risk to owners of using private armed security guards." TRADEWINDS, 24 February 2012, p 2 Unarmed guards critical in helping „Montecristo‟ crew - By Adam Corbett "An unarmed security team was on board the 55,600-dwt bulker Montecristo (built 2011) when it was hijacked off Somalia in October last year, it has emerged. Gerry Northwood, commander of the UK counter-piracy task group, revealed in a letter to UK broadsheet The Times this week that the security team was unable to prevent the boarding but it did buy time for the crew to take shelter in the ship‘s citadel. The security team was critical in summoning naval forces, which eventually recaptured the vessel. The hijacking became notable because a letter in a bottle tossed into the sea eventually alerted the navy to the situation." TRADEWINDS, 24 February 2012, p 11 NYK weighs up the armed-guard option for LNG ships - By Lucy Hine "Japanese shipowner Nippon Yusen Kaisha (NYK) is studying whether to put armed guards on board its LNG carriers. Speaking at Informa‘s LNG Shipping Conference 2012 in London this week, NYK LNG (Atlantic) managing director Akira Kono said the company has to consider the armed-guard option because the consequences of hijacking an LNG carrier could be so disastrous. Kono said seafarers would like guards on board and if charterers requested it the company would be receptive. However, he notes the cost is not cheap and would add around $20,000 to $30,000 to voyage costs." p 19 Shipping sidelined at Somalia conference - By David Osler "Shipping was largely sidelined at the Somalia conference in London last week, with heads of state and foreign ministers from around 50 countries largely concentrating on the political issues facing the country rather than the piracy crisis. Leading figures such as British prime minister David Cameron, US secretary of state Hillary Clinton and UN secretary-general Ban Ki-moon nevertheless made clear their opposition to such criminality, and promised a number of concrete measures they believe will tackle its root causes. They also promised to establish a taskforce to discuss the payment of ransoms to secure the release of seafarers and ships, with the implication that the practice is undesirable and should be eliminated." LLOYD‘S LIST, 27 February 2012, p 2 Opinion: Life is not cheap "Efforts by David Cameron and his government to focus world attention on eradicating piracy in Somalia were laudable and came not a moment too soon. But we, like the international group Save Our Seafarers, feel that the seafarers who comprise all the hostages now held as the result of piracy attacks should have received at least a nod. The conference phrase "hostages in Somalia" failed to mention seafarers or the dangers they endure to transit the Gulf of Aden. Of greater concern, however, were statements by US Secretary of State Hillary Clinton and Mr Cameron that discourage ransom payments. Both advocated an international taskforce to stand against payment of ransom to pirates as a way to destroy their incentive to take captives." LLOYD‘S LIST, 28 February 2012, p 6 Somalia conference failed to consult shipping, say critics - By Richard Meade "While the London Somalia conference drew some welcome international attention to the piracy issue, shipping officials were deeply underwhelmed by the attention that the conference paid to the industry. Following the meeting the International Chamber of Shipping noted its concern that the conference outcomes did not appear to include any "firm political commitment or new actions to eliminate or significantly reduce the scourge of

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piracy in the immediate future". Privately, other senior officials were more robust in their criticisms, saying that the focus of the conference offered little more than "unnecessary platitudes", attempted "no consultation" with the industry on key issues and was, in short, "a total ambush". While the shipping industry welcomed the apparent determination of governments to break the financial chain by taking legal action against criminal financiers who bankroll piracy, the ICS is now concerned about the potential implications of such moves." LLOYD‘S LIST, 29 February 2012, p 6 BULKELEY, J.C. Regional cooperation on maritime piracy: A prelude to greater multilateralism in Asia?. In: Journal of Public and International Affairs Vol. 14, 2003 CHAMBERS, M. / RESEARCH AND INNOVATIVE TECHNOLOGY ADMINISTRATION (RITA) - USA International piracy and armed robbery at sea : Hindering maritime trade and water transportation around the world. Washington, D.C. : U.S. Department of Transportation, 2010 HODGKINSON, S.L. et al Piracy: New efforts in addressing ths enduring problem. In: Tulane Maritime Law Vol. 36, 2011, pp 65-122 KIM, M / PARK, H. China's maritime security policy in the Indian Ocean: Assessment and implication for Korea. In: Internatinal Journal of Maritime Affairs and Fisheries Vol. 3/Issue 1, Jun 2011, pp 49-68 MCKINNON, A. Maritime piracy : A Hong Kong perspective. Kowloon : Hong Kong Centre for Maritime and Transportation Law, 2011 MEIJA, M.Q. / CARIOU, P. / WOLF, F-C. Is maritime piracy random?. In: Applied Economic Letter Vol. 16, 2009, pp 891-895 O'BRIEN, P. Statement at the Informal meeting of the General Assembly on Piracy 14 May 2010, UN headquarters, New York, 2010 ONE EARTH FUTURE FOUNDATION The economic cost of Somali piracy 2011 : Working paper. Broomfield (Colorado) : One Earth Future Foundation, 2012 PEPPETTI, J.D. Building the global maritime security network : A multinational legal structure to combat transnational threats. In: Naval Law Review, 2008, pp 74-156 SHORTLAND, A. / CHATHAM HOUSE Treasure mapped: Using satellite imagery to track the developmental effects of Somali piracy. London : Chatham House, 2012 UNITED NATIONS OFFICE ON DRUGS AND CRIME (UNDOC) Maritime piracy. In: United Nations Office on Drugs and Crime (UNDOC) The Globalization of Crime. Vienna : UNDOC, 2010, Chapter 9 - pp 191-200

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NAVIGATION AND COMMUNICATIONS ECDIS: Need to know ―The mandatory introduction of electronic chart display and information systems is seen as a major step forward in safe ship operation and protection of the environment. This guide, produced by the UK P&I Club, and published in three sections over forthcoming issues of Seaways, attempts to provide a user friendly introduction to the mystery surrounding electronic chart display and information systems (ECDIS).‖ SEAWAYS, February 2012, p 8-9 A Vessel Traffic Information System for the future ―Minister for Transport and Second Minister for Foreign Affairs, Singapore, Lui Tuck Yew, officially commissioned the new Port Operations Control Centre

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– Changi (POCC Changi) on 25th July. Equipped with a state of the art Vessel Traffic Information System

(VTIS), POCC-Changi plays a crucial role in ensuring navigational safety and protection of the marine environment in Singapore‘s port waters and the Singapore Strait.‖ IALA BULLETIN, No.4, 2011, pp 52-53 Most ships yet to fit ECDIS "As the July deadline looms, few ships are ready, says chart supplier. UK chart supplier Admiralty last week published an online nine-step guide to meeting the revised SOLAS regulations for ECDIS. It estimates that 85% of ships requiring ECDIS by July 2012 have yet to fit the necessary equipment. In an effort to help shipping companies meet this deadline, Admiralty, which uses data from the UK Hydrographic Office (UKHO), developed its nine-step advice and used it to create a programme of free ‗digital integration workshops‘, the first of which was held in Athens in November. Now, the advice is available online and, next month, visitors to Asia Pacific Maritime, to be held from 14-16 March in Singapore, can register for another in the workshop‘s global tour. See the nine-step guide at: www.tinyurl.com/Adm-ECDIS FAIRPLAY, 16 February 2012, p 37 Solar Storm Disrupts Aviation Navigation ―A coronal mass ejection (CME) hit Earth‘s magnetic field at around 15.00 UTC on 24 January. The ensuing geomagnetic storm resulted in spectacular aurora display that were visible even down to the latitudes of northern England. The solar flare was rated as an M9-class eruption – just below an ‗X-class‘ flare, the most powerful type of solar storm. It was the strongest solar storm to hit the Earth since October 2003. As a rare precaution, some high latitude flights were re-routed to avoid communication problems and exposing passengers and crew to excessive radiation.‖ NAVIGATION NEWS, Mar/Apr 2012, p 7

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POLLUTION/ENVIRONMENT Waiting game "The IMO‘s ballast water management convention is stuck on hold as the last signatories are coaxed aboard; owners are holding fire on buying treatment systems until they see the final details. solutions looks at how things may move forward." FAIRPLAY SOLUTIONS, February 2012, pp 10-11 Navigating the environmental regulations ―Environmental regulations are something many find complicated. Today, the fines for non-compliance can reach multi-million dollar levels and create a lot of extra work and ―bad will‖ for the company convicted.‖ BIMCO BULLETIN, Vol.106, No.4, pp 20-23 Chamber president hits out over emissions debate - By Janet Porter "UK shipowners have rounded on British politicians for suggesting that regional regulation on ship emissions would be more effective than a global solution. Chamber of Shipping president Michael Parker last night expressed his dismay over a recent report that called for the European Union to step in with a local scheme to reduce pollution from ships in the absence of sufficient progress at international level. Addressing guests attending the chamber's annual dinner, including shipping minister Mike Penning, Mr Parker said the International Maritime Organization should be left in charge, and said alternative proposals were both ill-informed and misguided. "Make no mistake: the shipping industry understands its responsibilities and takes them seriously," said Mr Parker." LLOYD‘S LIST, 7 February 2012, p 2 Norway, Greece and UK top dumpers list - By Geoff Garfield "Greece, Norway and the UK top a list of what an environmental pressure group dubs the leading European dumpers of toxic ships. The NGO Shipbreaking Platform has published its third annual list of European companies that have dispatched superannuated tonnage to what it describes as the ―infamous scrap beaches of South Asia‖. It says that the vast majority of European shipping companies continue to ―avoid the costs of proper disposal‖ by selling to breakers where there is a lack of environmental and labour-law enforcement. Some of the poorest communities are exposed to ―extremely dangerous working conditions and severe pollution‖, it says. More than 200 European vessels were sent for breaking on beaches in South Asia last year, according to the NGO." TRADEWINDS, 3 February 2012, p 5 Ballast water treatment systems – By William Wesson ―Facing technological advances through regulation. The International Convention for the Control and Management of Ships‘ Ballast Water and Sediments (BWM Convention) was adopted on 13 February 2004, to come into force one year after full ratification by thirty states, representing 35% of world merchant shipping tonnage. At present, it has been ratified by 28 flag states, representing 26.37% of world tonnage. It seems likely that the threshold for the Convention to come into force will be reached in the near future.‖ SEAWAYS, February 2012, pp 13-14 The potential for CO2 capture and storage in EU refineries ―CO2 capture and storage (CCS) is seen as one of the most promising routes to a major reduction in CO2 emissions to the atmosphere. Its

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deployment on a large scale would make it possible to continue using fossil energy resources while meeting the challenging emission reduction targets that are widely believed to be necessary to avoid serious climatic consequences, if enough resources – both in terms of capital and engineering capacity – are made available.‖ CONCAWE REVIEW, Autumn 2011, pp 4-7 ICS opposes carbon proposal - By Janet Porter "A proposal from The Bahamas to specify carbon emissions from individual ships has been criticised as unworkable by the International Chamber of Shipping. The Bahamas' recommendation has been made with the apparent intention of offering an alternative to market based measures under consideration at the International Maritime Organization. The ICS, whose national shipowner associations represent 80% of the global merchant fleet, is concerned that some might see it as a superficially attractive means of stopping the adoption of a market-based measure scheme. "If a ship's CO2 allowance was exceeded during the time period specified, it would have to go off-hire and a second ship chartered as replacement," said ICS chairman Spyros Polemis following a board meeting at which members confirmed that such an approach was very worrying and should be opposed." LLOYD‘S LIST, 8 February 2012, p 2 US heads for watershed year on ballast water legislation - By Rajesh Joshi "After years of paralysis caused by individual states passing unrealistically tough laws to police their own jurisdictions, the ballast water mess in the US might be on its way to being cleaned up during 2012. The fact that the US Coast Guard and the Environmental Protection Agency are finally on the same page helps matters considerably. The fate of a pending statute in Congress and the stance taken by New York State are now shaping up as the two immediate factors that determine how the issue plays out in the months ahead. Meanwhile, there is a realistic possibility that the International Maritime Organization's International Convention for the Control and Management of Ships' Ballast Water and Sediments will come into force by next year. Against this backdrop, experts believe it is time for owners to get serious about equipping their ships with ballast water treatment systems approved under the BWM Convention." LLOYD‘S LIST, 9 February 2012, p 6 UK to review oil spill response plans by end of year - By David Osler "The UK's Maritime and Coastguard Agency is set to undertake a major review of its nationwide contingency plans for a serious oil spill from a ship or offshore oil installation to take into account the end of government-provided tug cover, shipping minister Mike Penning has said. The minister confirmed the exercise in response to a written question from Sarah Newton, Conservative MP for Truro and Falmouth. He said the review would reflect findings and recommendations arising from the Deepwater Horizon incident in the Gulf of Mexico and recent planning exercises. The findings will be issued later this year, once all stakeholders have had the opportunity to provide input and comment." LLOYD‘S LIST, 14 February 2012, p 2 Certificate deadlines add to bottleneck - By Craig Eason "Shipowner groups urge a staggered solution. With no phase-in period planned, the proposed ballast water convention will require thousands of ships to secure immediate certification and the required technologies with immediate effect. The convention will come into force one year after at least 30 member countries representing at least 35% of the global fleet have ratified it. There are rumours in the IMO that between now and the end of the next MEPC four more European states could notify the organisation that they have ratified the convention, along with one larger non-European country. This brings the convention close to its target and could trigger enforcement in early 2013." LLOYD‘S LIST, 14 February 2012, p 7 Ready for the off? ―With the ratification of the IMO‘s Ballast Water Treatment (BWT) Convention edging ever nearer, leading manufacturers are announcing new orders and various state approvals with increasing regularity.‖ TANKER OPERATOR, Jan/Feb 2012, pp 42-45 Scary Prospects – By Unni Einemo ―After a deteriorating business climate in 2011, many fear 2012 will be even worse. Speculation about how to handle the transition to a 0.10% sulphur limit in ECAS in 2015 is likely to become more pressing in 2012.‖ BUNKER BULLETIN, January/February 2012, pp 12-13 Asia: a green awakening – By Arianne Perez ―Singapore and Hong Kong have pushed for greener practices in the shipping industry in an effort to align with a growing global effort aimed at consciousness for sustainable shipping.‖ BUNKER BULLETIN, January/February 2012, pp 26-27 UK Chamber to push for incentives on exhaust cleaning - By Craig Eason "UK shipping is to push for new incentives from government as it signals a readiness to talk about putting cleaning systems on ships in an effort to meet tough sulphur rules. The UK Chamber of Shipping hopes talks between shipowners, manufacturers and legislators will help to end an impasse over the pending low sulphur emission rules in northern European waters. It says there has been progress in discussing options to ease the difficulties faced by owners that will be forced to either use more expensive fuels or install exhaust cleaning technologies when a 2015 deadline stipulates sulphur emissions of 0.1% in the emission control areas.

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The rules were written and agreed by the International Maritime Organization and are in the process of being written into European Union legislation." LLOYD‘S LIST, 22 February 2012, p 1 Industry demands more time to launch CO2 measures - By Craig Eason "A group of leading shipping associations want the industry to have time to implement and analyse the benefits of agreed CO2 reduction tools before others are made mandatory. Ahead of next week's marine environment protection committee at the International Maritime Organization, BIMCO, Intercargo, Intertanko and the International Chamber of Shipping say they need more time for measures agreed at last year's MEPC to take effect. Last year the IMO agreed mandatory emissions-curbing measures on ship design and on ship operations to come into force in 2013. The round table of associations argues that market-based measures are not justified without making time to allow previously agreed measures to take effect first." LLOYD‘S LIST, 23 February 2012, p 2 Japan tables new scheme on pollution - By Adam Corbett "A fresh proposal is set to go before the IMO that calls for heavy fines on ships that do not comply with minimum efficiency rules. A fresh initiative on reducing ship emissions that will see ships fined heavily for failing to meet minimum efficiency standards is set to go in front of regulators and is already attracting controversy. Japan has teamed up with the World Shippers‘ Council (WSC) on the proposal, which it has named the Vessel Efficiency Incentive Scheme (EIS) and which will be presented to the International Maritime Organisation (IMO) next week." TRADEWINDS, 24 February 2012, p 54 Experts warn ballast water timetable cannot be met - By David Osler "Current plans to fit the entire world fleet with ballast water treatment kit by the end of the decade are physically impossible to implement and will see thousands of ships barred from trading unless the International Maritime Organization backpedals on the initiative, shipping experts have claimed. The issue will be highlighted at the IMO's Marine Environment Protection Committee next week, after Japan tabled a paper arguing that global repairyard capacity simply cannot handle the huge workload involved. Concerns are also growing over the cost implications of making the necessary changes, put at between $1m and $5m per vessel depending on size, entailing a staggering collective outlay for an industry suffering from its worst downturn in many years." LLOYD‘S LIST, 27 February 2012, p 1 New York State makes U-turn on ballast water - By Rajesh Joshi "New York State has retreated from its insistence on implementing a regional ballast water law that would have required purity standards much higher than those mandated by the International Maritime Organization. The development is of significance to owners whose ships trade in US waters, and an important step towards harmonising the US national standard with that proposed by the IMO's Ballast Water Management Convention, which could come into force by next year. The New York State Department of Environmental Conservation said it had decided to follow the Environmental Protection Agency's uniform national ballast water standard, which is consistent with the IMO regime, in state waters until December 2013." LLOYD‘S LIST, 27 February 2012, p 2 Sekimizu wants CO2 market-based measure - By Craig Eason "International Maritime Organization secretary-general Koji Sekimizu has called on member countries to work together to find a suitable market-based measure to curb shipping's emissions by next year. Mr Sekimizu used his opening speech of this week's marine environment protection committee to call on its participants to intensify efforts to make progress in deciding on a global market-based measure which can be applied to all ships, saying a decision on which solution is most suitable needs to be made by next year. MEPC participants will be looking at a number of potential market based measures that can be applied to shipping, including an international emissions trading scheme and a levy that can be applied to fuels. "This is a task of considerable magnitude and complexity, which requires additional funding if it is to be completed in the current biennium," Mr Sekimizu told the committee. "I therefore urge both members and organisations to make financial and human resource contributions towards the work that needs to be carried out." He also said that the IMO should align its deadlines with those set out by the UN Framework Convention on Climate Change which met in Durban at the end of last year." LLOYD‘S LIST, 28 February 2012, p 2 China slams EU proposal for emission trading - By Max Lin and Craig Eason "China has vowed to oppose inclusion of shipping in any European Union carbon emission trading scheme, saying that any such a unilateral measure would be against international law. The comments come as the International Maritime Organization spends this week debating potential market-based measures that could be used to curb shipping emissions. "The IMO has been discussing [how to tackle climate changes] for years," said National Development and Reform Commission official Su Wei, China's head of climate change affairs, in a radio interview. "Hopefully, [it] can deal with those issues properly, based on the principles of international law and the UN Framework Convention on Climate Change. A unilateral measure from the EU does not meet the requirements of international law."" LLOYD‘S LIST, 28 February 2012, p 2

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Environmental groups launch fresh drive to enforce slow steaming - By Craig Eason "A consortium of environmental lobby groups is pushing the International Maritime Organization to reconsider its objections to setting mandatory speed limits on ships. The Clean Shipping Consortium consists of lobby groups Transport and Environment and Seas at Risk. It says the trend for shipowners to use slow steaming for economic reasons has had as good an impact on the industry's carbon dioxide emissions as any potential market-based measure. The consortium fears that as the economic downturn ends, shipowners will return to old practices and the potential benefits will be lost. The group was disappointed when the IMO's maritime environmental protection committee quickly rejected discussions on setting speed limits for the world's fleet when it was raised in 2010." LLOYD‘S LIST, 29 February 2012, p 2 INTERNATIONAL MARITIME ORGANIZATION (IMO) / INTERNATIONAL OCEAN INSTITUTE (IOI) Guidelines for national ballast water status assessment. London : GEF-UNDP-IMO GloBallast Partnerships and IOI, 2009 (GloBallast Monograph Series No. 17) INTERNATIONAL MARITIME ORGANIZATION (IMO) Marpol 73/78 : Consolidated edition, 2011. London : IMO, 2011 (IMO-ID520)(ISBN 978-92-801-1532-1) OSPAR COMMISSION OSPAR Commission : Official statements. London : OSPAR Commission, 2010(ISBN 978-1-907390-66-1) YRAOLA, J.J.D. / GAMO, J.J. / MINISTERIO DE FORMENTO - Spain Normativa probabilista de derrame de hidrocarburos. Madrid : Ministerio de Fomento, 2009. Language(s): SPA. (ISBN 978-84-498-0858-6)

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PORTS AND HARBOURS

China sheds light on valemax ban - By Max Lin "The China Shipowners' Association says that the vaguely worded government ban on ultra-large vessels means in practice that dry bulkers of more than 350,000 dwt and tankers of more than 450,000 dwt will be barred from Chinese ports. The ministry said: "We don't think it is safe to let mega-sized vessels enter our ports, especially those exceeding approved capacities." Chinese shipowners have persuaded the government that Vale's mega-sized ships will hurt their ability to compete in already-weak markets. They also argued that the VLOCs were generally not safe to operate and were too big for Chinese berths. The safety argument gained credence after Vale Beijing developed a crack in its hull while loading in Brazil late last year." LLOYD‘S LIST, 3 February 2012, p 3 More pain in Spain over new ship arrest regulations - By Liz McMahon "Enforcement of new ship arrest regulations in Spain signals a turning point of interest to the entire shipping community, according to a Spanish legal expert. Spain adopted the 1999 Arrest Convention in September 2011. However, the new regime will not be properly enforced until March 2012 and so overlaps temporarily with the 1952 Arrest Convention. J&A Garrigues shipping associate Markus Gómez Dabic said the overlap would create confusion and warned seafarers of "stormy times ahead"." LLOYD‘S LIST, 8 February 2012, p 7 Korean class get EU contract "Port state control officers working in the Mediterranean MoU area will be supported later this year by an up-to-date database of all relevant IMO and ILO conventions to help them check a vessel‘s compliance with the relevant requirements. The Korean Register of Shipping (KR) has won a contract to deliver the software application at the end of August and it is basing it on its existing KR-CON application, which contains a library of IMO conventions. KR Chairman and CEO, Oh Kong-gyun, said in a statement that the database ―will make a significant difference to ship inspections in the Mediterranean MoU region‖." FAIRPLAY, 9 February 2012, p 30 Safety concerns with Fukui port draught following grounding - By Adam Corbett "Safety concerns are growing at the Japanese port of Fukui that a future environmental incident following another tanker grounding could be imminent. The grounding of the 12,000-dwt multipurpose (MPP) vessel Mount Akaboshi (built 2004) earlier this month was the fourth such accident in a little more than six months at the Fukui terminal. The ship was fully loaded with a cargo of aluminum and was eventually refloated under its own power, with the assistance of a tug. Operated by Japan‘s Unitra Maritime, it is recognised as a quality vessel and ranked as a low priority for inspection by the Tokyo port-state-control (PSC) authority. The location of the grounding is said to have experienced a significant decrease in depth because of silting from the nearby Kuzurikawa River." TRADEWINDS, 17 February 2012, p 38

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Eukor tops 'most sustainable' league at Rotterdam - By Roger Hailey "CAR carrier operator Eukor was the most sustainable shipping company calling at the European hub port of Rotterdam in 2011. The South Korean company had six ships in the "Sustainable Top 25"of seagoing vessels that arrived at Rotterdam last year, a league table using the Environmental Ship Index as a benchmark. The index shows how ships perform in their emissions of air pollution (NOx and SOx) and CO2, with ships in the index performing better than the statutory standards. Rotterdam paid ESI ships that scored 31 points or higher a "bonus" of around 5% of the port dues. However, in 2011, only Eukor's 2008-built, 21,044 dwt Morning Carol was eligible for the Rotterdam discount in the first instance. A port spokesman said: "The meagre score did not suit the policy of the port authority in its aim to stimulate sustainable shipping. The port authority therefore decided to award the incentive to the 25 highest scoring ships that called at the port of Rotterdam in 2011."" LLOYD‘S LIST, 20 February 2012, p 7 HPA assessing use of alternative fuels - By Katrin Berkenkopf "Hamburg port wants to expand the use of alternative fuels in port operations. To this end, Hamburg Port Authority and gas and engineering group Linde have signed an agreement about a feasibility study for the use of liquefied natural gas. First results are expected by mid-2012. "Given the background of tougher environmental standards, we are recording a constantly rising demand for LNG solutions in the transport business," says Andreas Opfermann, head of clean energy and innovation management at Linde." LLOYD‘S LIST, 23 February 2012, p 6 Owners taking risks with cargo hatchcovers - By Craig Eason "Recent statistics from port state inspection campaigns have shone a light on the number of owners that appear to be shunning vital maintenance work on hatchcovers. Member states within the Paris and Tokyo Memorandums of Understanding were involved in a co-ordinated campaign focus, particularly looking for potential faults with structural issues. The campaign ran in the three months from September to the end of November. Warnings have been issued in the past by class societies relating to the problems of poor maintenance of hatchcovers and coamings. The worry is, according to experts, that these warnings are going unheeded, particularly in today's economic climate. A number of supplier companies have reported that shipowners are avoiding all but statutory work. The Paris MoU said 42 ships were detained as part of its concentrated inspection campaign. With a focus on load lines and structural safety, problems were seen in areas that included stability, strength and loading information, ballast and fuel tanks and water and weather-tight conditions." LLOYD‘S LIST, 28 February 2012, p 7 MARINE DEPARTMENT - Thailand ASEAN-German Technical Cooperation : Sustainable port development in the ASEAS Region. Bangkok : Marine Department of Thailans, 2011

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SEAFARERS Electronic pay firms woo seafarers away from wage packets - By Janet Porter "When Costa Concordia sank last month, several hundred thousand dollars' worth of dollar bills, euro notes and other currencies probably went down with the ship as well. In a world where electronic salary payments are largely routine, the shipping industry is still in the dark ages as far as wage packets are concerned. Even these days, crew members are often paid in cash, a time-consuming and expensive process that leaves seafarers vulnerable to robbery and mugging, particularly when they are heading home. Thieves are known to target ships' crew at airports as they go on leave. Pre-paid cards secured by chip and pin are opening up new opportunities for employers to eliminate such risks when they pay their crew, particularly ratings. Having focused largely on the US passenger shipping industry since it was set up in 1987, CTI has now opened up an office in Liverpool as SeaPay targets European cruise lines and the cargo sector. Pre-paid cards such as SeaPay's can provide multiple ways of paying seafarers, according to Mr O'Connell, all of which are safer than cash." LLOYD‘S LIST, 7 February 2012, p 5 Economic crisis in Greece drives youth to sea - By Nigel Lowry "Interest in seafaring has been driven to new heights in Greece as a result of the nation's worsening economic crisis, which is wiping out job prospects for Greek youth, the country's shipowners have said. The annual general meeting of the Union of Greek Shipowners was told this week that a campaign to attract young people to the marine education system produced stunning results last year. The 1,350 places offered by the country's maritime academies attracted about 6,500 applicants. "Not only has the numerical target been achieved, but for the first time the qualitative goals have been met, too," said UGS president Theodore Veniamis. He said the prospects for the next few years were even more encouraging from the recruitment perspective.

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According to Mr Veniamis, the economic meltdown had "certainly" played a role in swelling numbers as young people fled the spectre of unemployment." LLOYD‘S LIST, 14 February 2012, p 2 Weak dollar sees Filipinos sending more cash home - By Adam Corbett "Filipino sailors are sending more money back home than ever before, largely because of the fall in the value of the US dollar on the international currency markets. According to figures compiled by the Trade Union Congress of the Philippines, in 2011 the nation‘s seafarers wired back $4.3bn. That is up 14% on the previous year, when some $3.8bn was sent home. The union claims that because of the fall in the value of the dollar, seafarers are being forced to send more of their US-dollar income home to buy the same amount of pesos. The Philippines provides more than a quarter of the shipping industry‘s labour force. The larger amounts of money sent home would not appear to indicate higher earnings. While there is a shortage of skilled and experienced officers, that is not the case for ratings, where there is an excess because of the downturn in the shipping market." TRADEWINDS, 24 February 2012, p 55

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SHIPBUILDING AND RECYCLING OF SHIPS Liner industry must scrap older tonnage - By Dimitris Morochartzis "Recent forecasts for worldwide gross domestic product growth paint a bleak picture for the container shipping industry. The World Bank forecasts worldwide GDP growth for 2012 at 2.5%, down from 4% in 2011. It expects China's growth to slow to 8.4%, from 9.1% last year. Taking into account a delivery book aggregating 1.8m teu, or 11% of the existing fleet, Lloyd's List Intelligence expects overcapacity to prolong adverse market conditions for ocean carriers this year. Carriers will need to consider scrapping older vessels to counteract the 2012 scheduled newbuilding deliveries." LLOYD‘S LIST, 3 February 2012, p 12 Bangladeshi scrap hiatus closes yards - By Geoff Garfield "Mass layoffs are taking hold as recycling yards struggle with a ban on imports. Up to 20,000 workers have been laid off and around half of all Bangladeshi recycling yards are closed as a consequence of the recent legal clampdown on the import of vessels for cutting. Only around 35 yards are said to be operating and many of them are fast running out of ships. Normally, at least 70 recycling yards are operational in Chittagong. The dire situation is a result of imports being blocked since 12 October by the High Court, which has still to approve new government ship-recycling safety and environmental rules demanded by the court." TRADEWINDS, 3 February 2012, p 5 Gujarat set on making Alang IMO compliant - By Geoff Garfield "Dr SB Agnihotri, India‘s director-general of shipping, says a joint project between the Gujarat government and Japan aims to make Alang the largest International Maritime Organisation (IMO)-compliant ship-recycling yard in the world. India is already the global leader for scrapping ships with over 400 vessels recycled in 2011. Agnihotri‘s comment while he was visiting the World Maritime University (WMU) in Malmo, Sweden, last week, signalled the country‘s intention to further upgrade facilities, in the face of ongoing criticism by environmental and safety pressure groups, to meet new international minimum standards." TRADEWINDS, 17 February 2012, p 16 Beware the lure of cheap orders, warns Polemis - By Nigel Lowry "International Chamber of Shipping chairman Spyros Polemis has urged shipowners everywhere to halt "unjustified" further newbuilding orders and to face up to the plight gripping the world economy, as much of the industry is now operating at or near a loss. "Until the crisis is over we need a moratorium on new orders for ships that have no economic purpose," said Mr Polemis, speaking as chairman of the World Shipping Congress conference in Athens. ICS, the principal trade association for owners, represents more than 80% of the world fleet. Mr Polemis warned that shipbuilders will aggressively seek to sell more ships, accusing the big three shipbuilding countries, China, South Korea and Japan, of "an almost obsessive commitment to market share"." LLOYD‘S LIST, 21 February 2012, p 3 Tax crackdown on shipbreakers - By Geoff Garfield "More than 200 tax officials are said to have been used in a ‗search and survey‘ operation involving some of India‘s top players. Authorities in India have raided some of the country‘s largest shipbreakers in a crackdown on alleged income-tax evasion. Leela Ship Breaking, Shree Ram Group of Industries and Bansal Group were targeted by income-tax officials. Five shipbreaking companies within these three groups are said to have been raided, as well as two courier companies. Evidence was found of INR 27 crore ($6.75m) of income not being disclosed, it is claimed. The focus has been on companies based in Bhavnagar, close to the ship-recycling beaches at Alang, the biggest vessel-scrapping location in the world." TRADEWINDS, 24 February 2012, p 3 Quality counts in scrap industry - By Gillian Whittaker "A commitment to excellence has put Turkey in the ‗big boys‘ league‘. Whether it is called demolition, scrapping, shipbreaking or the more politically

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correct ship dismantling or recycling, the business is one that many in the shipping industry do not think about too much until a bad market produces a glut of tonnage. And when talk does turn to this final stage in the life of a ship, it is often the big recycling countries that spring to mind — China, India, Bangladesh and, to a slightly lesser extent, Pakistan. But the fifth player in the ―big boys‘ league‖ is Turkey, which, although it recycles significantly less tonnage than the other four, has come to the forefront in terms of safety, environmental protection and organisation." TRADEWINDS, 24 February 2012, pp 28-29

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SHIPPING How big is the shipping finance market? "We take the "shipping finance market" to be the market for loans to purchase new and secondhand ships. This will include refinancing and restructuring debt, but not advisory or IPO fees. Comparison with last year is only natural and it is a truism that near-term forecasts tend to be similar to the current situation. In early 2012, we face a likely default by Greece in March and a break-up of the eurozone, more unrest in the Middle East and the US caught up in an election year. The general feeling is that 2012 is going to be worse for shipping finance activity than 2011. So an estimate of $60bn in 2012 seems reasonable, giving a range of $20bn-$60bn for 2012." LLOYD‘S LIST, 2 February 2012, p 9 Crisis calls for new financial order "New tools are being advocated to replace old methods and turn round shipping finance in 2012, reports Miriam Fahey. Marine Money London last week heard that in order to lift traditional ship finance from the prolonged crisis in which it‘s floundering, a ‗new order‘ for raising money for ships may be needed. Describing traditional ship finance as ―dead‖, Frank Dunne, partner at Watson Farley & Williams said: ―shipping is looking for radical solutions but it is a glacier.‖ He added that shipowners hope things will eventually go back to normal ―and they probably will‖." FAIRPLAY, 3 February 2012, p 18 The quest for energy "America‘s evolving diplomacy with China is partly built around both governments‘ desire to secure energy supplies; Iran‘s nuclear programme will have a major impact on world energy markets; it was feared that the Arab Spring of 2011 would affect the stability of energy trading from one of the key regions of resource. Three big questions hold The Quest together: finding enough energy to meet the needs of a growing world; securing supplies against established and emerging threats; and reconciling the need for energy with concern for the environment. It is ―near certainty‖, John Heywood, professor of mechanical engineering at Massachusetts Institute of Technology says, that the transport system of today will evolve over the coming decades but such is the dominance of the internal combustion engine that it will be ―some time‖ before the electric car takes over." FAIRPLAY, 3 February 2012, p 40 Wider financing crisis trumps spectre of Greek default - By Nigel Lowry "Whether Greece defaults on its sovereign debt or not, when it comes to financing the nation's owners have bigger problems to worry about. "Greek owners borrow in dollars, essentially like foreign companies. They are immune from any kind of Greek banking risk," says Dimitri Anagnostopoulos, whose ship finance career has included stints at Continental Illinois, ABN Amro and now Aegean Baltic Bank." LLOYD‘S LIST, 3 February 2012, p 4 Asia-Europe box growth stalls - By Janet Porter "Container lines saw a contraction in Asia-Europe volumes in the fourth quarter of 2011 and only very modest year-on-year growth. On a quarter-by-quarter basis, westbound growth slowed throughout 2011 from 6% in the first three months to 4.2% in the second quarter and 3.7% for the following three months. The slowdown in volume growth on one of the world's most important trade lanes comes as ocean carriers embark on a round of aggressive rate-restoration programmes. Lines are targeting hikes ranging from $600 to $900 per teu. If successful, those increases would more or less double spot rates, although lines are expected to settle for more modest price rises." LLOYD‘S LIST, 7 February 2012, p 3 UK shipping minister makes public pledge on tonnage tax - By Janet Porter "British shipping has finally won the assurances it has been seeking for years on tonnage tax, with a public promise from the government that there will be no changes to the regime introduced more than a decade ago. UK shipping minister Mike Penning told industry leaders attending the Chamber of Shipping's annual dinner on Monday evening that the government fully understood the need for stability. "We have no intention of touching the tonnage tax whatsoever," he said. Mr Penning's pledge followed strong support for the tonnage tax system late last year from former Treasury minister Justine Greening, who has since been promoted to Secretary of State for Transport." LLOYD‘S LIST, 8 February 2012, p 2

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Euro crisis could halve Chinese economic growth - By Eric van den Berg "If a full-blown sovereign debt crisis materialises in Europe, the Chinese economy would be hit disproportionately hard and see growth drop by as much as four percentage points in 2012 to just over 4%, according to the International Monetary Fund's latest China Economic Outlook report. Reduced growth in China would wipe out any support greatly needed to improve charter rates in dry bulk and container shipping this year, as these markets depend massively on Chinese importing raw materials and exporting manufacturing good." LLOYD‘S LIST, 8 February 2012, p 8 US stamps its presence on LNG export industry - By Hal Brown "The final piece of the jigsaw was slotted neatly into place on January 30. US company Cheniere Energy sold the remaining volumes of liquefied natural gas from its planned liquefaction project in Louisiana to South Korea. Cheniere's Sabine Pass liquefaction plant still requires the legal green light before construction starts this year. But securing buyers for the plant's maximum planned production of LNG makes achieving final consent from the authorities that bit easier, say analysts. It also heralds a new era for LNG shipping with the US set to liquefy and export its own natural gas to international markets on LNG carriers for the first time. It will open up opportunities for more flexible LNG shipping and boost investment in the infrastructure and ships required to cope with additional cargoes hitting the market." LLOYD‘S LIST, 9 February 2012, p 2 LNG demand to test the limits of vessel supply - By Claire Wright "The liquefied natural gas market faces a conundrum in 2012: how to meet rising demand for LNG with a limited pool of vessels that are already in high demand. With the vessel orderbook unable to ease the charter market's tightness until well into 2013, players will either need to accept that some voyages may not happen due to lack of capacity, or look for more ingenious ways of maximising the utilisation of the fleet. Structural problems may limit the opportunities for this. There is no doubt that demand for LNG is rising. Japan's need for LNG has remained consistently high since the Fukushima disaster in March last year restricted the country's nuclear output." LLOYD‘S LIST, 10 February 2012, p 12 Shipping loses out over fuel "The prospect of spiralling fuel and voyage costs for shortsea hauls in the north European sulphur emission control area is prompting a group of major Scandinavian shippers to plan to move freight away from ships. Swedish pulp and paper manufacturers that have combined their outbound logistics requirements in the freight forwarding joint venture ScandFibre Logistics would shift more cargo on to rail in the event of a marine fuel cost hike. Bunker expenses for trips across the Baltic and the North Sea are expected to soar when the 0.1% sulphur cap on marine fuel comes into force in 2015. ―The companies want to make sure they have a good back-up option,‖ explained Mats Erkén, managing director of ScandFibre Logistics at the BME/VDV rail forum in Neuss, Germany, last month." FAIRPLAY, 9 February 2012, p 36 Isle of Man forges ahead ―An illustration of a modern flag state was given in a statement issued by the Isle of Man ship registry regarding its significant entered tonnage growth.‖ TANKER OPERATOR, Jan/Feb 2012, pp 30-31 European Commission seeks views on state aid - By Roger Hailey "Brussels is consulting on whether it should adjust existing state aid rules for the maritime sector, guidelines that were last amended seven years ago. The European Commission is asking for stakeholders' views on the application of the 2004 European Union guidelines. The consultation deadline is May 14. The original 1989 guidelines on maritime state aid were formulated to address the large number of shipping companies going outside Europe to flags of convenience countries, where they could use cheaper crews and exploit looser safety conditions and a more favourable tax environment. In order to promote European flags and employment of European seafarers, the commission adopted the guidelines, which were amended in 1997 and 2004. After assessing the latest set of responses, the commission will decide whether the guidelines need to be revised, and will then consult further to determine whether new rules should be adopted." LLOYD‘S LIST, 16 February 2012, p 2 Sweden plans new shipping strategy - By Craig Eason "Sweden's remaining shipowners are hoping to hear about the government's new shipping strategy on Monday, when Swedish infrastructure minister Catharina Elmsäter-Svärd will lead a seminar to discuss the proposed strategy to help rebuild the country's shipping industry. The Swedish ship register has lost vessels in recent years as owners find more competitive conditions under other flags. Sweden cannot compete against many other European countries in terms of its tonnage tax regime, which drives many owners to switch flags. Ms Elmsäter-Svärd told Lloyd's List in an interview last year that she wanted to draw in as much information as possible during a lengthy consultation period, before revealing a strategy to strengthen the country's maritime competence. The minister said she had not ruled out the possibility of a new register, although owners doubted that the minister would offer much." LLOYD‘S LIST, 20 February 2012, p 2

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SkySails sacks half its staff - By Katrin Berkenkopf "German towing kite producer SkySails has had to sack about half its employees amid sluggish demand for its technology, as the Hamburg-based company expects the difficult economic environment to persist, writes Katrin Berkenkopf in Cologne. Despite some showcase contracts the SkySails system, which uses wind propulsion to support the main engine, has not yet made a breakthrough in the industry. According to the latest available financial data, SkySails generated a loss of €5.8m ($7.5m) in 2010 and a loss of €8m in 2009. Last year, the company was confronted with an unexpected financing gap of €5.3m. The financial database information suggests that this related to the insolvency of shipping group Beluga and its founder Niels Stolberg and the subsequent failure of a loan agreement." LLOYD‘S LIST, 20 February 2012, p 5 Banks 'will return to ship finance' in 2013 - By Craig Eason "Fears of the imminent demise of western, and in particular European, ship lending capacity may have been exaggerated, according to a leading analyst of trends in maritime finance. Despite the credit squeeze and a string of recent stories about banks looking to cut their exposure to the shipping industry, Ted Petropoulos of Petrofin classes 17 banks "active" in ship finance. According to Petrofin Bank Research, the banks active in shipping had a combined portfolio of more than $200bn. Banks that Petrofin believes have lending potential include three of the big five - DnB Nor, Nord LB and Nordea - and other European lenders, including Credit Suisse, HSBC, DVB, Unicredit and ABN Amro. Also on the list were Bank of China, Industrial and Commercial Bank of China and the Export-Import Bank of China. The importance of Europe to the industry was underlined by the Petrofin study, which showed that almost 90% of all ship finance came from the continent's banks; Chinese institutions provided 9%." LLOYD‘S LIST, 22 February 2012, p 2 Greece should look to shipping to fix economy - By Nigel Lowry "Greece and its shipping industry have been urged to leverage the country's competitive advantage in the maritime industry to rebuild its shattered economy. George Cambanis, global shipping and ports leader for Deloitte, said that the Greek shipping industry was the country's prime provider of business expertise and of jobs for the growing legion of young unemployed. "Shipping is a basic pillar of this country's economy and the involvement of the industry can bring about the change we desire," Mr Cambanis told the FT World Shipping Congress in Athens. "Your leaders need to get involved." One indicator of the country's advantages in the sector comes with the fact that 18% of European companies listed on the New York Stock Exchange and Nasdaq are Greek. And of these, 92% are shipping companies. The number of listings was second only to UK companies and ahead of French, German and Italian businesses." LLOYD‘S LIST, 22 February 2012, p 2 Australia seeks feedback on tax cuts for shipping - By Roger Hailey "Australia's Labour Party government has launched a consultation on its radical tax-cutting reforms to promote the nation's declining shipping industry. Transport Minister Anthony Albanese is seeking industry feedback on the package, set to enter force in July 2012, which is intended to stimulate investment in Australian shipping and to encourage Australian ownership of ships and ship operations. The government announced the headline measures of the Stronger Shipping for a Stronger Economy agenda in September 2011, but the details of the draft legislation are now available for shipping industry comment. Prime minister Julia Gillard's government wants to reverse the decline in Australia's flag." LLOYD‘S LIST, 22 February 2012, p 2 Expectations rise for Greek shipping ministry restoration - By Nigel Lowry "There is growing anticipation that Greece will shortly restore a standalone ministry of merchant marine, which was folded into a combined ministry in 2009. Both the current administration and the conservative political party, forecast to be the leading vote-winner at potential April elections, now appear to be promoting the move, which has been a persistent issue for the industry over the past two years. "We are optimistic that the shipping industry will be more prosperous in the future. For our part we will be supportive," said Nikolaos Litinas, general secretary of shipping and marine policy at the ministry of Development, Competitiveness and Shipping." LLOYD‘S LIST, 23 February 2012, p 2 Shippers urge call for global anti-conference campaign - By Janet Porter "A European shipper group is urging Brussels to keep up its campaign against liner shipping conferences that allow member lines to set prices collectively. The renewed call from the European Shippers' Council for global action to end antitrust immunity follows publication of the Federal Maritime Commission's study into the effect of the European Union ban on the US trades. Conferences were outlawed in Europe more than three years ago, but so far only Israel is preparing to take similar action, while New Zealand is planning a review of the law. But Jean-Louis Cambon, chairman of the ESC's maritime transport council, says in a statement that the council is convinced that the European decision to remove lines' exemption from competition law "is the right way to follow". The ESC, which now represents shipper groups from 10 European countries and several industry associations, led the campaign for regulatory reform." LLOYD‘S LIST, 24 February 2012, p 3

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LNG shipping needs greater flexibility and efficiency - By Hal Brown "The Informa LNG Conference in London last week brought to the fore a number of key issues in the liquefied natural gas shipping industry. One that cropped up on a number of occasions was the issue of flexibility and efficiency. The general consensus was that greater flexibility and efficiency are needed to make LNG shipping more like other shipping sectors. Ships on some trade routes are still stuck in a timewarp in which they relentlessly travel from A to B, often not with a full cargo, and do not deviate from that path, sticking to the old "floating pipeline" school of thought that has defined LNG shipping since its beginnings around 50 years ago. Lloyd's List Intelligence analyst Claire Wright brought this inefficiency into sharp focus when she told the audience that on average, vessels spent only 125 days laden in 2011. This meant the entire fleet spent nearly two thirds of the year idle, at anchor, waiting for repair or at a non-loading discharge port, she said." LLOYD‘S LIST, 28 February 2012, p 4 Asia will plug the finance gap, but selectively - By Tom Leander "One question has hovered over most discussions of ship finance for more than a year: will Asian banks plug the gap left by European financial institutions in ship lending? The answer, by way of bankers and private equity fund managers at the Marine Money conference in Hong Kong, is that Japan looks more positive than previously thought, China will do so selectively and conservatively, and South Korea has in effect made the choice to exit industrial shipping in a bid to capture the high value end of the market, which includes liquefied natural gas vessels, offshore vessels and ultra-large containerships. "Regarding industrial shipping, South Korean shipyards are leaving the business," said Tiger Group Investments managing director Julian Proctor. He noted that export-import funding entities in South Korea had tilted lending policy toward yards that bring in contracts for liquefied natural gas, offshore and other high-value vessels." LLOYD‘S LIST, 29 February 2012, p 1 Lawyer casts doubt on German owners' flag fundraiser - By Patrick Hagen "A well-nown German shipping lawyer has raised questions about the current reflagging campaign of Germany's shipowners' association VDR. VDR wants to significantly increase the number of vessels flying either the German or a European flag during the next few months. Part of the plan is that shipowners would have to pay an average fee of €15,000 ($20,100) for every permit to flag out a ship. This money would then be used to support training measures on German and European-flagged ships. Hans Heinrich Nöll, a Hamburg-based lawyer, doubts that there will be a feasible way to implement the scheme by legal means should owners not be willing to pay the fee, which he believes will probably be the case." LLOYD‘S LIST, 29 February 2012, p 2 Tight credit set to change the shape of shipping - By Tom Leander "Banks may yet become shipowners but need help to operate troubled companies. Harry Banga, vice chairman emeritus of Noble Group and owner of Hong Kong's Fleet Management, which he bought from Noble last year, believes that the industry is undergoing long-term restructuring, as weaker shipping companies go bankrupt and the industry recapitalises, bringing changes that he says will alter "global patterns forever". Mr Banga foresees "a spate of consolidation and bankruptcies of companies with little or no existing capital" in today's shipping market if economic demand lags further. Despite some positive indicators of a revival from the US and of Chinese monetary easing, there is no conclusive evidence yet of a global recovery and the prospect of a European recession remains a threat. If a recovery does not hold, demand will drop, and so will freight rates." LLOYD‘S LIST, 29 February 2012, p 3 DELOITTE GLOBAL SERVICES Challenge to the industry : Securing skilled crews in today's marketplace. London : Deloitte Global Services, 2011 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD) Review of maritime transport 2011. New York : UNCTAD, 2012 (UNCTAD/RMT/2011). Language(s): ENG, FRE, CHI. (ISBN 978-92-1-112841-3)

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SPECIAL REPORTS Accommodation and vibration: THE NAVAL ARCHITECT, February 2012, pp 41-48 Americas: SEATRADE, February 2012, pp 39-43 Bahrain: SEATRADE, February 2012, pp 59-67 Ballast Water: MER, February 2012, pp 22-25 Belgium: SEATRADE, February 2012, pp 45-47 Cruise Ship Technology: THE NAVAL ARCHITECT, February 2012, pp 31-37 Finland: THE NAVAL ARCHITECT, February 2012, pp 50-52

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Gibraltar: TRADEWINDS, 10 February 2012, pp 23-28 India & Bangladesh: THE NAVAL ARCHITECT, February 2012, pp 38-40 LNG: SEATRADE, February 2012, pp 15-19 Maritime Centres: Hamburg LLOYD‘S LIST, 23 February 2012, pp 1-7 Maritime Centres: Hong Kong LLOYD‘S LIST, 2 February 2012, pp 1-5 Oman: SEATRADE, February 2012, pp 49-57 P & I Insurance: LLOYD‘S LIST, 16 February 2012, pp 1-5 powerhouse Singapore: FAIRPLAY, 23 February 2012, pp 32-42 Safety: THE NAVAL ARCHITECT, February 2012, pp 24-28 Ships of the year FAIRPLAY SOLUTIONS, February 2012, pp 22-37 Training: MER, February 2012, pp 26-28 Turkey: TRADEWINDS, 24 February 2012, pp 21-34 Training and Crewing: SAFETY AT SEA, March 2012, pp 22-25 Tanker Safety: SAFETY AT SEA, March 2012, pp 34-38

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