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CURRENT AWARENESS BULLETIN | Vol.XXV | No.8 | August 2013 1

INTERNATIONAL MARITIME ORGANIZATION

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CURRENT AWARENESS BULLETIN

Volume XXV – No. 8 August 2013

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IMO

PROGRAMME OF IMO MEETINGS FOR 2013 IMO PRESS BRIEFINGS

IMO NEWS (Issue 3, 2013)

NEW IMO PUBLICATIONS SECRETARY-GENERAL SPEECHES

UN NEWS CENTRE 23 August 2013 – UN chief urges collective action to fight piracy…

WORLD MARITIME DAY 2013: Sustainable Development: IMO's contribution beyond Rio+20

will be observed during the week of 23 -27 September

About our sources For copyright reasons, the Current Awareness Bulletin contains excerpts only. Titles of articles are reproduced as they appear in the original publications. If you require the full text of any article, please contact your library, the publishers or access publishers‘ websites where articles may be freely available or accessible with the payment of a fee. The section ―ARTICLES OF INTEREST‖ includes links to publishers‘ sites when available. Online First refers to articles which may be copyedited and typeset but not yet paginated for inclusion in an issue of the journal. (OA) refers to Open-access articles which are digital, free of charge, and free of most copyright and licensing restrictions (please verify the publishers’ sites). ―INDUSTRY NEWS AND

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Fairplay: http://www.fairplay.co.uk Fairplay Solutions: http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx Lloyds‘ List: http://www.lloydslist.com Safety at Sea: www.safetyatsea.net Tanker Operator: http://www.tankeroperator.com TradeWinds: http://www.tradewinds.no

ARTICLES OF INTEREST…………………………………………………………………………………..……20 INDUSTRY NEWS AND PUBLICATIONS

CASUALTIES AND SALVAGE ................................................................................................................. 3 IMO ........................................................................................................................................................... 4 LAW AND POLICY ................................................................................................................................... 4 MARINE TECHNOLOGY .......................................................................................................................... 6 MARITIME SAFETY ................................................................................................................................. 8 MARITIME SECURITY AND PIRACY ...................................................................................................... 9 NAVIGATION AND COMMUNICATIONS .............................................................................................. 12 POLLUTION/ENVIRONMENT ................................................................................................................ 13 PORTS AND HARBOURS ..................................................................................................................... 14 SEAFARERS .......................................................................................................................................... 14 SHIPBUILDING AND RECYCLING OF SHIPS ...................................................................................... 17 SHIPPING ............................................................................................................................................... 17 SPECIAL REPORTS .............................................................................................................................. 22

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CASUALTIES AND SALVAGE Validus doubts viability of 'Costa Concordia' wreck removal plan – By Jim Mulrenan ―The loss of Costa Concordia has a high risk of turning out to be significantly more costly than current market estimates, according to the Validus insurance group. Validus is putting a near $1.9bn loss estimate on the Costa Concordia, $200m higher than figures being used by most other insurers and reinsurers. The decision to raise the provision reflects doubts the New York-quoted underwriter has about the revised wreck-removal strategy, which involves the ship being righted this autumn with operations suspended over the winter months and the vessel refloated and towed from Giglio Island next summer. Validus chief executive Ed Noonan is ―not convinced this is advisable or even workable‖, so the company had revised its reserve should the plan fail and the 114,000-gt Costa Concordia (built 2006) has to be demolished in situ.‖ TRADEWINDS, 5 August 2013, p 27 Blast on Indian submarine leaves 18 crew trapped ―The Indian Navy said 18 sailors were trapped in a submarine that submerged after an explosion, but that rescue operations had already begun. The diesel-powered INS Sindhurakshak was berthed at a Mumbai dockyard when a blast occurred early today. A subsequent fire was extinguished in two hours, but it remains unclear whether any crew on board were killed or injured, AP reported.‖ (LL News online - 14 August 2013) Collision focuses attention on Philippine carrier’s safety record - By Jing Yang "The sinking of the passenger ferry St Thomas Aquinas, which resulted in the death of at least 65 people last week, has once again thrust a spotlight on the safety record of Philippine Span Asia Carrier Corp, owners of the general cargo vessel Sulpicio Express Siete, which was involved in the fatal collision. PSACC, formerly known as Sulpicio Lines, has recorded 51 casualties since its establishment in 1972, according to Lloyd‘s List Intelligence. Among them, five fatal incidents claimed more than 5,600 lives, including the notorious Doña Paz disaster that killed more than 4,300 people, the deadliest peacetime maritime accident. " LLOYD‘S LIST, 21 August 2013, p 5 Cebu declares state of emergency - By Jing Yang "Cebu Province in the Philippines declared a state of emergency to clean up an oil spill after a collision between a general cargoship and a ferry, in which at least 65 people died and the vessel foundered. The Provincial Board of Cebu has declared a state of emergency after the oil slick reached the shorelines of eight villages in Cordova town, endangering the livelihood of fishermen and the local ecosystem. ―It is a rare happening to issue such a declaration, as the anticipation is the oil spill could possibly affect the whole island of Cebu,‖ said Nelson Oliver A Del Mar of the public information office, Cebu Provincial Government." LLOYD‘S LIST, 21 August 2013, p 5 Mystery surrounds bulker loss in grounding off Richards Bay - By Adam Corbett ―Did the Smart break its back because of a heavy swell or did mechanical problems cause it to run aground? Mystery surrounds the causes behind the loss of the 157,000-dwt bulker Smart (built 1996), which broke its back as it departed Richards Bay, South Africa, in a grounding last week. The ship, which has protection-and-indemnity (P&I) cover from the North of England Club, now looks set to be the subject of a lengthy and costly salvage operation.‖ TRADEWINDS, 30 August 2013, p 35 Pilot ladder claims another life - By Adam Corbett ―Danish report reveal another case of a seafarer losing his life attempting to disembark using a pilot ladder. The simple act of disembarking from a ship is continuing to cost lives, according to a new a report into the death of a chief engineer on the 50,000-dwt tanker Nord Goodwill (built 2009). The man died in a routine crew exchange while the vessel was at the Tema Offshore Oil Terminal, Ghana, West Africa in October last year. The DMIB‘s probe uncovered a couple of problems. Firstly the launch was not suitable for the job because there was nothing for the crew men to grab hold of, making safe boarding unsafe and difficult. The crew on the barge also did not immediately give the chief engineer cardiopulmonary resuscitation (CPR).‖ TRADEWINDS, 30 August 2013, p 35

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IMO IMO makes accounts public for the first time – By Adam Corbett ―Shipping‘s regulator the International Maritime Organisation (IMO) has made its accounts public for the first time in an apparently more transparent policy under secretary-general Koji Sekimizu. The release of its 2012 financial statements at a recent council meeting comes as Sekimizu attempts to tackle costs at the organisation with what he describes as ―stringent austerity and efficiency measures‖. The figures reveal that at the end of last year the IMO had total assets amounting to £53m ($81m) against liabilities of £37.6m, giving it net assets of £15.3m. Staff costs are the largest part of the IMO‘s expenditure and are the focus of its cost-cutting programme.‖ TRADEWINDS, 16 August 2013, p 35

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LAW AND POLICY Eight declared guilty but escape jail in Sea Diamond trial - By Nigel Lowry "A Greek court has handed down suspended sentences to the master and seven other individuals found guilty in the trial linked to the sinking of the cruiseship Sea Diamond off the Aegean island of Santorini six years ago. Capt Ioannis Marinos received a sentence of 12 years and two months which, like the other jail terms, can be bought off at a daily tariff under the Greek system for certain categories of penalty. Among others found culpable were the ship‘s navigation officer, a Louis Hellenic executive and the company‘s designated person ashore. However, the court reserved the second-harshest sentence for a surveyor from the ship‘s classification society, Det Norske Veritas." LLOYD‘S LIST, 2 August 2013, p 4 Bid to streamline tanker oil spill compensation fails – By Jim Mulrenan ―Lack of agreement between P&I clubs and IOPC Funds may delay payouts to victims. A bid to speed payment of compensation to victims of tanker spills has hit the rocks over protection-and-indemnity (P&I) clubs‘ fears that they could end up overpaying. The clubs and the International Oil Pollution Compensation (IOPC) Funds have failed to reach agreement on a deal despite more than three years of discussion. The P&I clubs acting for shipowners, and the IOPC Funds, paying cargo owners‘ contribution, are agreed that speedy compensation payments are desirable, but have run into difficulties on the practical details of an accord.‖ TRADEWINDS, 5 August 2013, p 26 Skuld's 'Hebei Spirit' deal seen as a model for efficient handling of tanker spills ―Interim payments in a number of major tanker spills have proved successful and straightforward, but in the case of other casualties there have been huge difficulties that help explain the problems P&I clubs have had in reaching a deal with the IOPC Funds. A major spill by the 270,000-dwt, Chinese-controlled Hebei Spirit (built 1993) is regarded as a model for how payment to victims can be expedited despite a big claim that ran through the International Group‘s claims pool into the reinsurance being involved. Handling of the 2007 spill claim has been on the basis of an agreement between the Skuld P&I club and the South Korean government. The Norwegian insurer is making interim payments to victims in full, but the government has undertaken to pick up the bill if the national courts require a limitation fund to be established.― TRADEWINDS, 5 August 2013, p 26 Greeks mull ban on Filipinos as whistle-blower cases mushroom - By Georgios Hatzimanolis ―Shipowners in Greece are seriously considering calling a halt to hiring Filipino crews because it is feared they can no longer be trusted. Owners have told TradeWinds that they feel crews from the Philippines are more likely to become whistle-blowers and, motivated by the financial rewards, make false allegations of pollution incidents. Some say Filipinos are exploiting the US Environmental Protection Agency (EPA), which encourages whistle-blowing by offering money for information.‖ TRADEWINDS, 9 August 2013, p 5

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Conventions muddy waters over ship definition – By Jim Mulrenan ―The IOPC Funds have been struggling with the definition of a ship since the 27,650-dwt products tanker Santa Anna (built 1975) grounded in ballast on New Year‘s Day 1998, off Lyme Bay on the UK‘s south coast. The 1992 Fund Convention, providing for compensation from the IOPC Funds, then compounds the problem by stating that the word ―ship‖ shall have the same meaning as in the 1992 Civil Liability Convention CLC.‖ TRADEWINDS, 9 August 2013, p 28 What makes a vessel a ship? – By Jim Mulrenan ―Long-running conundrum puts question of who pays for big pollution cases back on the agenda. The problem of defining exactly what is a ship is continuing to prove elusive, despite extensive efforts to clarify what those steel fabrications bobbing around on the water are.‖ TRADEWINDS, 9 August 2013, p 28

Schröder-Hinrichs, Jens, E Hollnagel, Michael Baldauf, Sarah Hofmann, and Aditi Kataria. ―Maritime Human Factors and IMO Policy.‖ Maritime Policy & Management 40, no. 3 (2013): 243–260. doi:10.1080/03088839.2013. Diana officers face prison after magic pipe conviction - By David Osler ―Two Greek officers face lengthy prison terms after they were convicted alongside their employer Diana Shipping Services, the in-house management arm of Diana Shipping , in the latest magic pipe case to come before the courts in the US. For its part, the company could be fined up to $5.5m and put on probation for up to five years when sentencing takes place on November 8, according to a statement from the US Department of Justice.‖ LLOYD‘S LIST, 14 August 2013, p 9 Ballast convention could cost millions – By Jon Guy ―A leading P&I club has told shipowners that the cost of new regulations on ballast water management has the potential to drive a big hole in their ability to trade. The UK P&I Club has said adherence to the Ballast Water Management Convention 2004 is likely to cost millions of dollars and will require a detailed understanding of what is expected. In a briefing to its membership, the UK club stated: ―The new rules on the management of ballast water will require them [ship-owners] to understand compliance standards, develop a ballast water management plan, select and install a treatment system, and train personnel to operate the system. Their ships will be subject to surveys and inspection to maintain certification.‖‖ FAIRPLAY, 15 August 2013, p 26 Concordia sentencing begins ―Francesco Schelettino, master of Costa Concordia when it grounded and capsized off the Italian island of Giglio last year, is now the only person on trial for his role in the tragedy in which 32 people lost their lives and many others were seriously injured. Four of his fellow officers aboard the ship and a Costa Cruises executive have already been sentenced by the court in Grosseto, Tuscany, which is hearing the Costa Concordia case, after it accepted their applications for plea bargains.‖ SAFETY AT SEA, September 2013, p 7 Panama charges Korean crew ―Panamanian authorities have arrested and charged the crew of a North Korean ship that was transporting weapons in a sugar cargo from Cuba. Prosecutor Javier Caraballo charged the 35 people identified as crew members with endangering public security by illegal transport of the munitions, the BBC reported. Chong Chon Gang a 14,000dwt general cargo ship, was seized on 15 July by the Panamanian authorities after military equipment was found hidden under thousands of tonnes of sugar. The haul included SA-2 surface-to-air missiles systems and two Mig-21 jets. The Cuban government has insisted these were ‗obsolete and defensive weapons‖ and were heading to North Korea to be repaired.‖ SAFETY AT SEA, September 2013, p 9 Mega vessels not welcomed by insurers – By Jon Guy ―The arrival of the first of Maersk Line‘s Triple-E series, the Mærsk Mc-Kinney Møller, has delivered new economies of scale and energy efficiency but it has furthered debate over the insurance market‘s concerns with the rising scale of vessels. The Triple-E is the world‘s largest ship and sets new standards in the container industry, not just for size but for energy efficiency and environmental performance. With a unique design for slower speeds and maximum efficiency, the vessel will emit 50% lessCO2 per container moved than the current average on the Asia-Europe route. Marcus Baker, chairman and MD of the global marine practice at broker Marsh, said the insurance industry was wrestling with the new risk environment.‖ FAIRPLAY, 22 August 2013, p 19

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P&I clubs must buy into a general average solution - By Liz McMahon "P&I clubs have been urged to buy into a marine insurance market solution to the general average problem of large containerships. Club consent is the ―last hurdle‖ to clear before the industry can offer some kind of solution to the problem, said Lloyd‘s Joint Hull Committee chairman Pete Townsend in an exclusive interview with Lloyd‘s List ahead of this year‘s International Union of Marine Insurance gathering in September. The committee is investigating a solution involving industry investment in salvage equipment to be spread evenly across major trade routes. The new generation of mega-containerships presents significant challenges to the insurance and salvage industries. Both fear that the current complexities in calculating general average, and lack of salvage resources, would severely hinder the industry‘s ability to tackle a major casualty of this nature." LLOYD‘S LIST, 29 August 2013, p 6

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MARINE TECHNOLOGY Evolution in design, not revolution - By Craig Eason ―There is no such thing as an eco-ship. What lies is behind often presumptuous marketing claims by both yards and owners is the latest evolution in ship and engine design. There is no revolution. Vessel designs ordered today are the result of years of work by naval architects, engineers and research institutes that were largely ignored by most shipowners and shipyards during the boom years, when everyone was clamouring to get on to the burgeoning orders bandwagon.‖ LLOYD‘S LIST, 8 August 2013, p 6 Using the EEDI to prove economy in design - By Craig Eason ―Shipyards without their own design teams are likely to be at a disadvantage in the near future as complying with the energy efficiency design index becomes more challenging. The EEDI, agreed by the International Maritime Organization, and now mandatory for many new ship orders, is a way to ensure that ship designers draw up plans for vessels that are more fuel-efficient and therefore have potentially lower CO2 than they would otherwise.‖ LLOYD‘S LIST, 8 August 2013, p 7 Designers face increased pressure By Craig Eason ―Ship design is set to become more competitive as owners seek more proven designs that offer the best fuel efficiency on the market. Designers will also have a tough job ahead, as they not only need to understand the exacting challenges of environmental regulations, but also will need to incorporate existing and new rules on safety and stability. The whole process of deciding to order a new vessel is long and protracted, with an owner either using its own in-house design team, possibly an external design consultant, to work on initial concepts. This will often develop from their own known designs, adapting them to meet any new requirements.‖ LLOYD‘S LIST, 8 August 2013, p 8 Eco-ships debate has owners at crossroads – By Jonathan Boonzaier ―As the new generation of eco designs begins to hit the water and the true data on fuel-efficiency savings begin to slowly trickle through, shipowners are now having to make up their minds on whether to buy into the latest designs or retrofit their older tonnage to maximise efficiency.‖ TRADEWINDS, 9 August 2013, p 16 Insatech launches smart sulphur emissions system ―Danish company Insatech A/S has developed the Smart Sulphur Switch S3 system (S3) to help ships meet the cap on sulphur emissions in Emission Control Areas (ECAs) in North America, the Caribbean, the Baltic, and the North Sea through blending and adjusting two fuels to the desired sulphur content. The system logs and reports nett fuel sulphur content, density, and the ship‘s position and speed. Shipping companies could save money through only having two types of fuel aboard. ―Irrespective of the ship‘s destination, it is only necessary to carry a marine gas oil (MGO), and a heavy fuel oil (HFO). Outside ECAs the cheapest fuel can be burnt and when entering an ECA, the MGO and HFO blend can be adjusted in order to meet the allowed sulphur emission in the area,‖ said Insatech.‖ FAIRPLAY SOLUTIONS, August 2013, p 9

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The way forward may need to be remapped – By Malcolm Latarche ―Future propulsion options for shipping are the subject of a report, Future Ship Powering Options: Exploring alternative methods of ship propulsion, from the UK‘s Royal Academy of Engineering released at the end of July. At that time the academy said shipping had great potential to reduce its environmental impact through new and modified propulsion technologies but that there was no single or simple answer that would meet every need or that could be applied to every type of vessel. Instead, it was said, further work was needed in two directions: ―to adapt current technologies from the maritime industries and elsewhere to broader application in different types of ship‖; and ―to research and develop innovative technologies specifically for maritime propulsion‖.‖ FAIRPLAY, 8 August 2013, pp 26-27 Developed nations still hold sway with innovation, says SNAME president - By Craig Eason "Europe and North America still retain the creative edge with ship design, despite the majority of commercial vessels being built in Asia. While the western countries have lost their shipbuilding industries under commercial pressure from competitive Asian yards, the skills associated with innovative ship design and engineering application remain strong, according to the president of the Society of Naval Architects and Marine Engineers, Peter Noble.." LLOYD‘S LIST, 12 August 2013, p 7 The essence of compliance ―As maritime expertise leaves the industry, operators and seafarers need advice on complying with the many regulations. Regs4Ships products is Digital Maritime Regulations, which combines flag state regulations with IMO, ILO, and EU legislation. It is constantly updated by a team of maritime experts and aims to provide a single source of regulatory expertise. The electronic management systems offered for both merchant ships and yachts enables a two-way information exchange between offices and ships. This is enhanced by customised solutions for individual clients, which leads into consultancy services for maritime and non-maritime clients. Cases have included port operations, ECDIS, ISM compliance, SOLAS compliance, navigation risk, and personal injuries.‖ FAIRPLAY, 15 August 2013, pp 28-29 Technology sees Germans through tough times – By Malcolm Latarche ―Although German shipbuilding seems to be staggering towards a fate that has befallen several of its European neighbours, the country can still claim to be home to probably the most diverse marine equipment and technology centre in the world. German companies collectively produce every component of a modern ship, either domestically, overseas, or through licensing arrangements. Although this market coverage is not unique, it is unusual and makes Germany the envy of competitor nations.‖ FAIRPLAY, 22 August 2013, pp 28-29 Ramsauer steps on the gas ―German transport minister Peter Ramsauer visited the Caterpillar factory at Rostock earlier this month and took the opportunity to show government support for liquefied gas as a fuel. As part of Germany‘s fuel strategy for the transport sector, Berlin is ready to support pilot projects such as retrofitting engine fuel systems on ships, Ramsauer said.‖ FAIRPLAY, 22 August 2013, p 30 The $72m sulphur headache - By Craig Eason "Danish ro-pax operator DFDS has decided to install expensive exhaust-gas cleaning systems, commonly called scrubbers, on 11 vessels this year and next. The decision has been made in the belief that being forced to switch the group‘s fleet to using more expensive distillate fuel, which has the required ultra-low sulphur content the 2015 sulphur rules demand, is not an alternative. Shipowners with vessels working in emission-control areas know full well that in just over 16 months they will need to use different fuels to ensure that emissions are below a 0.1% limit. DFDS boss Smedegaard talks scrubber spending risks and conflicts to come in 2015 There could still be the scenario in which, due to inaction by many owners, the European Parliament, or national governments, offer a grace period of a number of years after 2015." LLOYD‘S LIST, 29 August 2013, p 7

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MARITIME SAFETY MOL seeks urgent answers on break-up of Comfort ―Mitsui OSK Lines is urgently looking into what caused container ship MOL Comfort to suddenly snap in two off the coast of Oman. The 8.110teu vessel split in poor weather about 430 nm southeast of the port of Salalah on 17 June en route from Singapore to the Arabian port of Jeddah with 4.382 on board.‖ SAFETY AT SEA, August 2013, p 8 New report examines tanker risk ―HIS Maritime has contributed to a major report on tanker safety in Canada. The report, compiled by energy intelligence provider IHS Cera with collaboration from IHS Maritime and Wave Point Consulting, looked at the risks involved in increased tanker activity transporting oil from the country‘s west coast.‖ SAFETY AT SEA, August 2013, p 8 Mystery continues over chemical tanker blasts – By Adam Corbett ―Flag states do not seem to be helping uncover the causes of a series of tanker accidents that have shaken the industry since last year and cost the lives of 20 seafarers. A TradeWinds survey of accident reports filed to the International Maritime Organisation (IMO) reveals there are only two full and final investigations into the tragic accidents, which have cost the lives of 20 seafarers since January 2012. One is not publicly available, and the other involves an accident caused by navigational problems rather than the carriage of a hazardous cargo.‖ TRADEWINDS, 5 August 2013, p 25 Public spending cuts put marine accident reports under pressure – By Adam Corbett ―National maritime accident-investigation bodies admit that investigation resources are being overstretched as a result of tighter budgets and new regulations from Brussels. The cutbacks are doubly painful as they come just as a European Union (EU) directive has now set higher performance standards on marine accident-investigation organisations.‖ TRADEWINDS, 9 August 2013, p 32 MOL to work with Tokyo on boxship safety measures - By Max Lin "Mitsui OSK Lines has vowed to work with the Japanese government on safety issues concerning large-sized containerships, having lost MOL Comfort, a 2008-built, 8,110 teu vessel, to a hull crack in June. Japan‘s Ministry of Land, Infrastructure, Transport and Tourism has launched a committee to review safety standards for boxships in the industry, after MOL Comfort split during a force-seven storm off Yemen on June 17 and eventually sank in the following weeks. ―MOL has extended and will extend all possible co-operation to the Committee on Large Containership Safety,‖ the carrier said in a statement. The committee, chaired by Yokohama National University professor Sumi Yoichi, comprises shipping lines, yards, class societies and research institutes. It plans to publish new safety guidelines for containerships by end-September." LLOYD‘S LIST, 13 August 2013, p 7 Carnival training and hardware faulted ―Human error and insufficient training, in addition to faulty equipment, played a pivotal role in Carnival Splendor’s November 2010 fire and propulsion loss, according to the US Coast Guard (USCG). Previous reports on the Carnival Splendor casualty focussed on the failure of the ship‘s CO2 system to activate. But in its final assessment, released on 15 July, the USCG found far more than hardware to blame.‖ SAFETY AT SEA, September 2013, p 10 MOL Comfort probe reports progress - By Max Lin "Damage leading to a hull fracture in MOL Comfort did not originate from the vessel‘s upper deck area or the hatch side coaming, ClassNK said after an investigation into the causes of the casualty. While the Japanese class society did not elaborate further, the statement suggests a strong possibility that MOL Comfort may have buckled before breaking in two amid high seas in June. The 8,110 teu, 86,692 gt vessel, the world‘s largest containership lost to date, was one of the six same-type vessels that Mitsubishi Heavy Industries built for Mitsui OSK Lines in 2007-2008, classified by ClassNK, LLOYD‘S LIST, 14 August 2013, p 4

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'MOL Comfort' sisterships undergo hull strengthening – By Adam Corbett ―Mitsui OSK Lines (MOL) is halfway through a programme to strengthen the hulls of a series of six sisterships to the 8,100-teu MOL Comfort (built 2008), which broke in half and sank in the Indian Ocean after massive structural failure. The Tokyo-based company declines to comment on how much steel it has added to the three ships upgraded so far. It only specified, when questioned, that it amounted to double the quantity required by the standards set by the International Association of Classification Societies (IACS) and applied to the ships by class society ClassNK. It did clarify that the extra steel had been placed in the midships of the vessels, in the area where the MOL Comfort suffered hull failure. Three more in the series are undergoing strengthening at Mitsubishi Heavy Industries, which built the ships, and are due for completion at the end of September or early October.‖ TRADEWINDS, 16 August 2013, p 6

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MARITIME SECURITY AND PIRACY Owners warned over uncredited bodies offering armed guard standard - By Liz McMahon "Shipowners are being warned that certifying bodies offering certification for the international private maritime security standard ISO 28007 may do so without any national accreditation. This means shipowners should avoid blindly accepting international certification. When a private maritime security company presents its ISO PAS 28007, it would be wise to question which body awarded it and what credentials it has to do so. The UK is the only flag state undergoing a pilot process to ensure certifying bodies have been accredited to offer the new certification. The UK Accreditation Service is now half way through the process of accrediting three certifying bodies: Lloyd‘s Register Quality Assurance, MSS Global and RTI Forensics." LLOYD‘S LIST, 6 August 2013, p 4 Security industry questions flag state regulatory ‘strain’ - By Liz McMahon "Maritime security industry insiders have criticised the current ―patchwork‖ of ―competing‖ security standards amid renewed calls for a global armed guard certification process. Germany‘s decision to pass a demanding new certification process for private maritime security companies, coming into force on December 1, has put a spotlight on an industry divided over whether national legislation is desirable or necessary. Those involved in the pilot accreditation of the International Organisation for Standardisation‘s industry standard, ISO PAS 28007, hope it will be completed by the end of the year. Germany‘s decision to adopt new legislation governing the licensing of PMSCs while the international process is ongoing has been met with a mixed response. Certain factions have questioned why states need to impose additional requirements, above and beyond a standard that has been supported at the International Maritime Organization." LLOYD‘S LIST, 6 August 2013, p 5 Safeguarding legal certainty for ships flying German flag - By Liz McMahon "LLOYD‘s List: Why did Germany decide to opt for regulation that is more demanding than anything presently available? Rehberg Eckhardt: In order to safeguard legal certainty for shipping companies flying the German flag and ensure safety at sea, Germany has adopted two new regulations governing the licensing of private security firms on seagoing vessels and making more concrete a law which created the commercial law and firearms law framework for armed private security firms on the high seas. These provisions are based on the existing International Maritime Organization provisions." LLOYD‘S LIST, 6 August 2013, p 5 Foiled port attack highlights threat to shipping off Yemen - By Bob Morrison ―Marsh marine vice-president. A PLOT to blow up pipelines and take control of at least two ports in the south of Yemen may have been thwarted by local authorities, but the incidents further indicate that all shipowners should take this threat extremely seriously, says BIMCO chief security officer Giles Noakes. Yemeni security forces have been placed on a state of high alert amid fears of an al-Qaeda attack. In the capital, Sanaa, tanks and troops have surrounded foreign missions, government offices and the airport, according to the BBC.‖ LLOYD‘S LIST, 8 August 2013, p 2

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The International Ship and Port Facility Security Code explained - By Liz McMahon ―ISPS is an International Maritime Organization code related to ship and port security arrangements — all ships and all port states and their port area authorities must have planned their standard day-to-day operations to accommodate ―security‖ of assets and personnel against violent or armed attack by anyone , politically motivated or not. In particular, both ships and ports must liaise before or upon the ship‘s arrival to make sure that their plans correlate, that is, that the ship does not require services that the port cannot give, or bring in armed guards which the port state does not allow, for example, and allow for the standard levels of alert.‖ LLOYD‘S LIST, 8 August 2013, p 2 Maritime security mud-slinging on social media as competition heats up - By Liz McMahon "A dwindling demand for business has forced the maritime security industry to become increasingly cut-throat and social media is being used, ever more frequently, as a medium to air its dirty laundry in a battle over market share.‖ LLOYD‘S LIST, 7 August 2013, p 8 PMSCs not alone in ‘viral spiral’ - By Liz McMahon "Social media is seemingly used within the private maritime security community to react to news, and also to freely criticise former employers, or competitors, writes the Security Association for the Maritime Industry maritime director Steve Jones. There is a danger in thinking that such a phenomenon is solely a problem for PMSCs; the fact is, it is not. The ―viral spiral‖ is something which is known in many other industries. Disgruntled former employees and competitors can hurt companies in many ways, and taking to social media is perhaps one of the easiest option — and one less likely to see any legal recourse." LLOYD‘S LIST, 9 August 2013, p 8 UK gives floating armouries the go-ahead - By Liz McMahon "The UK Department of Business Innovation and Skills has issued 50 licences for floating armouries operating in the Indian Ocean and Gulf of Aden. In theory, PMSCs will be able to apply for licences for floating armouries anywhere in the world. ―We are assessing all requests to use a floating armoury vessels on a case-by-case basis, and may adopt specific restrictions to manage identified but acceptable risks,‖ a BIS spokeswoman said. Authorisation of UK vessels, however, will take more time to resolve, she said. BIMCO chief security officer Giles Noakes said UK‘s move was positive ―in principle‖, as PMSCs involved in the International Organisation for Standardisation‘s ISO PAS 28007 pilot audit will no longer be hindered by potential non-conformance." LLOYD‘S LIST, 9 August 2013, p 9 Complicated and lengthy process "Floating armouries have long been an issue for UK-based private maritime security companies as the government has struggled to establish a formula to assess the risk posed by such vessels. In a letter to Lloyd‘s List in May, UK shipping minister Stephen Hammond acknowledged one of the most pressing problems for PMSCs was the fact that floating armouries were operating in a legal grey area, leading the industry to demand clarification. BIS is responsible for licensing but the department has had to work closely with other government departments such as the Foreign and Commonwealth Office and the Department for Transport to find a way to manage the risks associated with these platforms." LLOYD‘S LIST, 9 August 2013, p 9 Plea for Operation Atalanta to stay despite fall in piracy – By Adam Corbett ―European shipowners are calling for the EU Navfor Operation Atalanta to be maintained off the east coast of Africa amid fears that a reduction in piracy will tempt cash-strapped governments to pull the plug. European Community Shipowners‘ Association (ECSA) secretary-general Patrick Verhoeven says Atalanta has ―strongly contributed to the decline of successful piracy attacks‖ along with other self-protection measures by shipowners. He added: ―We are concerned that the decrease of piracy attacks around the Horn of Africa may incite member states to withdraw, mainly for budgetary reasons. The situation remains very fragile and is easily reversible.‖ TRADEWINDS, 9 August 2013, p 13 Hijack flick to open London Film Festival ―Such is the remarkable fictional seagoing career of Oscar-winning actor Tom Hanks, who plays the title role in the upcoming film ―Captain Phillips‖. The British Film Institute has announced that the film‘s European premiere will take place on the opening night of its annual festival in October. The movie portrays the hijacking off Somalia of the 1,068-teu Maersk Alabama (built 1998), which in 2009 became the first US-flag vessel to be seized by pirates since the 19th Century. Capt Richard Phillips, the ship‘s master, and his men were received as American heroes after they resisted the hijacking attempt.‖ TRADEWINDS, 9 August 2013, p 42

Maritime Knowledge Centre

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West Africa unites on security – By Savahna Nightingale ―The chiefs of naval staff of states in the Gulf of Guinea concluded the first three-day Regional Maritime Awareness Conference (RMAC) in Cross River State, Nigeria, last week with a call on their governments to facilitate the establishment of effective legal frameworks for the enforcement of maritime law. The conference, themed ‗Regional maritime awareness capability systems: a key for enhancing maritime security in the Gulf of Guinea‘, will now be held annually to monitor and mark security improvement as well as agree action in the region. .‖ FAIRPLAY, 8 August 2013, p 24 Transit corridor said to be free from Yemen threat - By Liz McMahon "Vessels transiting the Gulf of Aden via the Internationally Recommended Transit Corridor do not need to adjust their ship security plans, according to G4S Risk Management head of maritime security Martin Ewence. ―As I understand it, the [UK Government‘s] level three warning this week only applies to vessels proceeding into ports on the Yemeni coast, and not to those proceeding along the IRTC,‖ he said. The fact that the IRTC runs closer to the Yemeni coast than it does to that of Somalia should make no difference to ship security plans, he added. ―The risk to vessels proceeding along the IRTC remains the same, but the heightened threat level is justified if moving closer to the Yemeni coast."" LLOYD‘S LIST, 12 August 2013, p 4 UK collaborates with industry on national maritime security - By Liz McMahon "The UK government‘s new committee monitoring national maritime security indicates a readiness to share information with the insurance industry and other key sectors, according to the Lloyd‘s Market Association. LMA head of underwriting Neil Smith attended the inaugural meeting of the Department for Transport‘s National Maritime Security Committee, which now overseas security arrangements for UK-flag vessels, as well as the country‘s ports and harbours. The committee, which will meet in central London every six months, is comprised of government officials, the Ministry of Defence, counter-terrorism officers, the UK Border Agency, the Chamber of Shipping and a range of other relevant organisations. Mr Smith said the UK, as an island nation, had a long list of maritime security exposures which needed to be managed." LLOYD‘S LIST, 12 August 2013, p 4 TWIC ‘may not be worth continuing’ ―An American maritime security programme that has so far taken more than a decade to put in place at a cost of $500m may not be worth a continued effort to see that it gets off the ground. That was the fear conveyed by several lawmakers in the US Congress at a recent hearing on the status of the Transportation Worker Identification Card, known as TWIC, a programme the US Department of Homeland Security (DHS) created in the wake of 9/11 to help prevent a maritime-based terrorist attack in the US.‖ SAFETY AT SEA, September 2013, p 12 Asian piracy falls in first half of 2013 ―Cases of piracy and armed robbery have dropped during the first half of this year compared with the same period in 2012, according to the ReCAAP Information Sharing Centre. Fifty-seven incidents comprised of 54 actual and three attempted incidents were reported in the first half this year, against 64 incidents reported in the same period of 2012.‖ SAFETY AT SEA, September 2013, p 13 Indian Ocean’s piracy dividend - By Stephen Spark ―Piracy in the northern Indian Ocean has stimulated infrastructure development along the east African coast. There are hopes this will drive economic development. Action to combat piracy brought benefits for some. Port Louis gained traffic and bunkering business from shipping that routed east of Madagascar and is now looking to become a regional bunkering hub.‖ FAIRPLAY, 22 August 2013, pp 6-7 Somali attitudes are changing – By Richard Clayton ―Over the past year a form of central government in Somalia has turned attitudes against piracy, believes International Maritime Bureau (IMB) director Pottengal Mukundan. ―Local village support is rebelling against the pirates,‖ he told an IHS Maritime seminar last week. ―Pirates brought in drugs, abused the young girls, and behaved arrogantly because of their money.‖ The last significant merchant vessel hijacked was in May 2012. ―Investors no longer see this business model as successful.‖ FAIRPLAY, 22 August 2013, p 7

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German security standard puts squeeze on providers – By Girija Shettar ―Awash with standards, squeezed security firms feel forced to bet on the most significant ones. Discussing recent security standard developments, Ambrey Risk commercial director John Thompson said: ―You can only work to so many standards. With a huge price war going on in the security industry right now, there‘s a pinch-point with rising standards but reduced money to pay for it‖.‖ FAIRPLAY, 22 August 2013, p 26 Coastguard ‘undermines agreements – By Girija Shettar ―The federal government of Somalia‘s move to set up a national coastguard with the help of Netherlands-based Atlantic Marine and Offshore Group has been rejected by the two de facto independent states of Somaliland and Puntland. They have accused the government of trying to claim more territory and thus more resources.‖ FAIRPLAY, 29 August 2013, p 24

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NAVIGATION AND COMMUNICATIONS Statoil to trial Arctic route with Dynagas LNG carrier - By Lucy Hine ―Greek newbuilding poised to be second LNG carrier to transit Northern Sea Route after Gazprom made history with one of the owner‘s ships last year. Norway‘s Statoil is poised to send an LNG carrier newbuilding through the Northern Sea Route (NSR) from the east. The LNG carrier transits along the NSR are all potentially good news for the upcoming Yamal LNG project, which plans to send shipments to Asia along the passage during the season when it is open. The NSR is attracting a lot of interest this season as changes in weather patterns have thinned the Arctic ice, reducing the amount in the passage during its summer months. The route can shave 10 to 12 days off a sailing from the west to Japan compared to taking a voyage through the Suez Canal.‖ TRADEWINDS, 9 August 2013, p 22 Arctic door opens for China - By Craig Eason "China is sending its first vessel westbound through the northern sea route, which crosses Russia‘s Arctic. The Cosco-owned, Hong Kong-flagged, 2002-built multipurpose vessel Yong Sheng is set to become the first Chinese commercial vessel and first vessel with container capacity to sail westbound to Europe, according to data from Lloyd‘s List Intelligence." LLOYD‘S LIST, 13 August 2013, p 1 The Russian Arctic rush - By Craig Eason "The newly-formed Northern Sea Route Administration has issued 372 permits for vessels to operate in Russia‘s Arctic waters so far this year, and the number grows daily. These permits may not give an accurate picture of the number of full cargo transits through the northern sea route, but they do reflect the number of vessels swarming into the region during the short summer window. Lloyd‘s List has learned that 13 vessels have so far made, or are about to make full transit voyages, shipping 302,000 tonnes of cargo, either east or westbound between the Kara Strait and the Bering Strait. That number will increase until the season ends when ice levels get too thick at the end of the year. Permits being issued this year do include over 130 vessels without any ice class notation and some vessels are likely to be exempt from icebreaker escorts, an issue which has already raised questions over the region‘s preparedness for an incident." LLOYD‘S LIST, 13 August 2013, pp 1-2 Northern sea route suffers a summer chill - By Craig Eason ―Photographs of the reefer vessel Atmoda heading west through the northern sea route have highlighted the challenges of the voyage even in the height of summer. The 1989-built, 13,305 dwt Atmoda has been transiting the northern sea route with the voyage taking longer than the vessel‘s operators, Greece-based Laskaridis Shipping, expected.‖ LLOYD‘S LIST, 22 August 2013, p 5

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ECDIS users must find their course – By Malcolm Latarche ―Much has been written about the potential benefits or otherwise of the Electronic Chart Display and Information System (ECDIS) in the years running up to it becoming mandatory, and since the launch of the rollout programme for its introduction on board ships. The issue of ECDIS training has received much less attention, although manufacturers have been pushing training from the outset. ECDIS represents a major step in passage planning and navigation, and is arguably the greatest change in navigation since the invention of radar. Unlike GPS and AIS, which only provide basic information, ECDIS has the potential to alter the way ships are operated navigationally. Therefore it is essential that navigators get to grips with the new technology in a way that will benefit them and make shipping safer.‖ FAIRPLAY, 29 August 2013, pp 26-27 Opinion: Russia must play fair if Northern Sea Route is to realise its potential – By Terry Macalister ―The Russians — who are busy trying to improve the charts, ports and other infrastructure along the route — understandably see a major commercial opportunity. But they also remain nervous of the strategic implications of an area traditionally off-limits to foreigners becoming a busy international thoroughfare. This explains the nervousness over the appearance of an unpredictable and potentially very critical organisation such as Greenpeace turning up in the Russian Arctic. Still, Moscow should be brave and accept that in 2013 if you want oil exploration and commercial shipping to take place around your environmentally sensitive coastline, you have to be prepared to answer tough questions from all quarters.‖ TRADEWINDS, 30 August 2013, p 11

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POLLUTION/ENVIRONMENT Aussies nail Neptune MPP for Brisbane spill – By Gary Dixon ―The Queensland government has pinned the blame for an oil slick at Brisbane on a Neptune Pacific Line (NPL) multipurpose (MPP) vessel. Up to 10 tonnes leaked on Sunday night in the Brisbane River, causing a slick stretching 1.4 kilometres (0.875 miles) at the port. Transport and Main Roads minister Scott Emerson said a detention order had been issued to the master of the 9,600-dwt Danny Rose (built 1988), ABC reported. Emerson said: ―We have been examining samples from three vessels and comparing it to the spill and also looking at CCTV footage. ―But we still have to get a brief of evidence now and have the case go before the court.‖‖ TRADEWINDS, 5 August 2013, p 25 Iran demands $1.5m for release of Indian tanker - By Craig Eason "The Ports and Maritime Organization of Iran is demanding a $1.15m bank guarantee for the release of the Indian tanker Desh Shanti. LLI casualty reports state the vessel remains in the custody of Iran‘s Hormozgan Ports and Maritime Office, which is demanding compensation for the pollution it has allegedly caused through its protection and indemnity insurance coverage. Lloyd‘s List has seen a letter addressed to Steamship Insurance Management Services, dated August 19, requesting $1.15m bank guarantee in ―order to release the vessel immediately‖. Owners Shipping Corporation of India, are pleading the vessel‘s innocence, pointing to satellite imagery that suggests an oil sheen was already in the Middle East Gulf where the spill is said to have occurred before the company‘s vessel was in the region." LLOYD‘S LIST, 20 August 2013, p 3 Sanctions block Desh Shanti’s release from Iran - By Craig Eason and Liz McMahon "Sanctions against Iran could block moves by Shipping Corporation of India to secure the release of its tanker Desh Shanti. Iran has demanded a $1.15bn bank guarantee from the vessel‘s P&I club for the release of the vessel, which it has accused of causing an oil spill in the Middle East Gulf. The vessel, which is laden with a cargo of Iraqi crude oil destined for India, was accused by Iranian authorities of causing the spill while it was in ballast and heading through Iranian waters en route to Basrah‘s oil terminal in late July. SCI has confirmed that there may be difficulties in making the payment, even if it was decided to do so to expedite the release of the vessel. Experts in insurance and the sanctions regime agree that there is no possibility for P&I clubs to pay any fine, either to Iran or to Memac." LLOYD‘S LIST, 23 August 2013, p 5

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Maritime Knowledge Centre

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PORTS AND HARBOURS

Port states launch ship propulsion and machinery inspection campaign - By Craig Eason "Port State Control authorities under the Paris Memorandum of Understanding and the Tokyo Memorandum of Understanding have launched an inspection campaign focused on propulsion machinery. The 45 port states under both MOUs will instigate the concentrated inspection campaign to ensure vessels are compliant with the relevant chapter in the Safety of Life at Sea Convention relating to the upkeep of marine engines, propulsion systems and auxiliary equipment.." LLOYD‘S LIST, 6 August 2013, p 9 Warning issued over threat of random inspections at Port Said – By Adam Corbett ―Shipowners are being warned that vessels may face random inspections at Port Said in Egypt following civil unrest in the country and the recent military overthrow of President Mohamed Morsi. The policy of the military in the country so far has been to protect shipping and the Suez Canal to prevent any potential economic damage. However, there is still a concern that ships may be used to carry weapons into Egypt, leading the military to orchestrate random searches. The International Group of protection-and-indemnity (P&I) insurers indicate there is a chance vessels will be inspected at the port.‖ TRADEWINDS, 9 August 2013, p 32 'Unsafe' Kashima starts work to combat dangers – By Adam Corbett ―Work has begun to improve safety at Kashima in Japan, which was declared an ―unsafe‖ port by a recent UK High Court ruling. There have been long-standing concerns among mariners as to the safety of the port and its exposure to bad weather. Development plans drawn up by Japan‘s Ministry of Land Infrastructure and Transport (MLIT) include measures to extend the main southern and central breakwaters by 900 metres in length. The idea is to shelter the port from two of its major safety issues, a long tidal swell and tendency to attract sand and gravel deposits that cause anchor dragging.‖ TRADEWINDS, 16 August 2013, p 35 World’s largest boxship makes maiden European call at Rotterdam - By Damian Brett "The world‘s largest containership, Maersk Mc-Kinney Moller, made its maiden call in Europe when it arrived at APM Terminals‘ facility in Rotterdam. The 18,270 teu ship began its first commercial voyage on July 15 at the South Korean port of Busan. It arrived at Europe‘s busiest container port on Friday, before leaving for Bremerhaven on Saturday. APM Terminals‘ Europe portfolio manager Ben Vree said the company was ready to meet the challenges presented by these new ultra-large vessels. He said that when its new facility opened on the Maasvlakte II development at Rotterdam in November 2014, it would be able to handle three ships of this size at one port." LLOYD‘S LIST, 20 August 2013, p 2

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SEAFARERS Britain ratifies the Maritime Labour Convention - By Liz McMahon "The UK has become the 41st International Labour Organisation member state to ratify the Maritime Labour Convention 2006, less than two weeks before it enters into force. The MLC consolidates and updates more than 68 international labour standards in the maritime sector. It sets minimum global standards for seafarers‘ living and working conditions. The UK Maritime and Coastguard Agency said the ratification of the convention had been a lengthy process that involved a number of government departments alongside extensive contributions from the UK Chamber of Shipping, Nautilus International, the RMT union and other stakeholders." LLOYD‘S LIST, 9 August 2013, p 9

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UK declares MLC ratification imminent – By Kari Reinikainen ―Norman Baker, member of parliament and parliamentary under-secretary of state for transport, said last week that the United Kingdom‘s ratification of the Maritime Labour Convention (2006) is expected to be formalised by the International Labour Organization (ILO) this week. Commenting on the news, Jon Whitlow, secretary of the International Transport Workers‘ Federation (ITF) seafarers‘ section, told Fairplay: ―This is expected but good news. Every ratification – and we expect a significant number more this year – is not just a vote of confidence in the MLC, but further strengthens its potential as a true agent of change for seafarers.‖ The convention, which covers 1.2M seafarers, aims to achieve both decent work for seafarers and secure economic interests in fair competition for quality shipowners.‖ FAIRPLAY, 8 August 2013, p 25 MLC is not just a tick box exercise - By Nigel Cleave If the shipping industry thought the International Safety Management Code was a difficult regulatory instrument to get its head around, then the weeks following the coming into force of the Maritime Labour Convention will be an interesting time. MLC 2006 is the single most important seam of shipping regulation to come out of the International Maritime Organization in recent years. LLOYD‘S LIST, 14 August 2013, p 4 A look at MLC: shipmanagers’ views on challenges and changes - By Liz McMahon "Adopted in February 2006, the Maritime Labour Convention is seen as the fourth pillar in the international maritime regulatory regime, establishing minimum working and living standards for the 1.2m seafarers around the world. It is envisaged the MLC will act as a seafarers‘ bill of rights and will give welfare the same regulatory powers as safety and security, the prevention of pollution and training now enjoy. The convention covers almost every aspect of work and life on board, including: minimum age, employment agreements; hours of work and rest; payment of wages; paid annual leave; repatriation; onboard medication; use of recruitment and placement services; accommodation; food and catering; health and safety provisions; and seafarer complaints handling.." LLOYD‘S LIST, 16 August 2013, p 6 Now get the operational side right, says IMEC - By Liz McMahon "The most significant challenge for shipowners struggling to comply with the Maritime Labour Convention has been the sluggish and differing production of flag state legislation, according to International Maritime Employers‘ Council chief executive Giles Heimann. While the convention itself was adopted in 2006, it has been necessary for flag states to translate the requirements of the convention into their own national legislation. ―Some have been very quick, some very slow and some have still not produced the necessary legislation. It is impossible for a ship operator to produce operational procedures manuals if there is no legislation available on which to base their manuals,‖ Mr Heimann said." LLOYD‘S LIST, 19 August 2013, p 4 Flag states must be ready for MLC so that shipowners can be, says ILO - By Liz McMahon "The Maritime Labour Convention enters into force on Tuesday, but shipowners are still in the dark on how certain flag states intend to interpret the new requirements, according to International Labour Organisation department of standards director Cleopatra Doumbia-Henry. The ILO has steered the development, adoption and entry into force of the MLC and Dr Doumbia-Henry say that she thinks the shipping industry is ready for the MLC, on the whole. ―The shipping industry has been very engaged in the development of the MLC from day one. The idea of having a MLC initiative was actually derived from shipowners and seafarers,‖ she said. Widely known as the seafarers‘ bill of rights, the MLC is unique in its effect on both seafarers and quality shipowners." LLOYD‘S LIST, 19 August 2013, p 5 We should take pride in MLC - By Masamichi Morooka "Shipping is the only major industry with such a comprehensive framework for acceptable standards of employment. The MLC‘s development is particularly impressive because of the incredible degree of co-operation." LLOYD‘S LIST, 20 August 2013, p 4 Liberia brings MLC inspection in-house - By Liz McMahon "Liberia was the first state to ratify the Maritime Labour Convention and has taken the decision not to delegate flag state inspections to class societies, preferring to take a hands-on approach. The Liberian International Ship & Corporate Registry maritime operations and standards chief David Pascoe said Liberia was also one of the first flag states to adopt in-house initiatives to pre-empt MLC. ―We chose not to delegate reviewing the declaration of compliance to class societies. We decided it would be easier for us to deal with shipowner questions directly,‖ he said." LLOYD‘S LIST, 20 August 2013, p 5

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US vessels trading internationally urged to comply - By Liz McMahon "The US Coast Guard has issued last-minute advice encouraging vessels operating internationally to opt for voluntary Maritime Labour Convention 2006 compliance. The USCG published formal guidance on the inspection of US vessels for voluntary compliance with the MLC 2006. The US has not ratified MLC 2006 and, as a result, the coast guard will not enforce compliance on US-flagged vessels or foreign-flagged vessels while navigating within US waters. Despite the fact the US has not ratified MLC, law firm Blank Rome points out that US-flagged vessels may be subject to port state control action in other countries. In light of this potential risk, which could include detention at a port in a country that is a party to the convention, the USCG has encouraged shipowners and operators to comply with the convention." LLOYD‘S LIST, 20 August 2013, p 5 MLC takes first step into the unknown - By Liz McMahon "Long-awaited convention comes into force with questions still to be answered over its operation The ILO has specifically asked flag states to be pragmatic and gradual during this process." LLOYD‘S LIST, 20 August 2013, p 6 Maritime students get a real-world insight ―The transport management school of Dalian Maritime University launched an ―entrepreneur mentor project‖ in May this year, initially signing up 28 business people to tutor its maritime students. These are senior executives from industry sectors including logistics, shipping, e-business, and trade. They will tutor second-year students in 27 classes, give lectures and provide internship opportunities. The project aims to teach students professional ethics and about the personal qualities needed, and to pass on to them experiences that will give them a clearer view of their potential career development.‖ FAIRPLAY, 22 August 2013, p 27 MLC 2006: who is the shipowner and why does it matter? - By Liz McMahon "Confusion over the lines of responsibility in the new MLC 2006 could disrupt its implementation as shipmanagers call for legal clarity to define the term shipowner. Under the MLC, the shipowner is described as ―the owner of the ship or another organisation or person, such as the manager, agent or bareboat charterer, who has assumed the responsibility for the operation of the ship from the owner and who, on assuming such responsibility, has agreed to take over the duties and responsibilities imposed on shipowners in accordance with this convention, regardless of whether any other organisation or persons fulfil certain of the duties or responsibilities on behalf of the shipowner‖. This definition has caused confusion, leading both shipowners and managers to seek to clarify their roles." LLOYD‘S LIST, 27 August 2013, p 8 What do class societies, acting as recognised organisations, think? "Class societies have found themselves playing piggy in the middle, as companies request their service but they act on behalf of the flag states. This worries the class societies on an operational level and they have generally found the ILO's use of the term shipowner in relation to MLC to be "unhelpful". In practice, although some responsibility remains with the shipowner, much of it falls to the shipmanager or operator, but it is not always clear who will sign the Declaration of Maritime Labour Compliance." LLOYD‘S LIST, 27 August 2013, p 9 ILO stands by the definition set out in the labour convention - By Liz McMahon "The International Labour Organisation has responded to calls to clarify the Maritime Labour Convention‘s definition of the shipowner, the single entity responsible for seafarer welfare, stating that this can be a third-party manager even if another entity carries out certain MLC shipowner duties and responsibilities. ILO department of standards director Cleopatra Doumbia-Henry said the confusion voiced by shipmanagers, including V.Ships, seemed to relate to a misunderstanding of the phrase ―regardless of whether any other organisation or persons fulfil certain of the duties or responsibilities on behalf of the shipowner‖. Dr Doumbia-Henry said the phrase was explanatory and not a category of shipowner. To avoid this confusion, she said, it may be advisable in applying the MLC definition of shipowner in a given case, to first identify who is the MLC shipowner, and then look at the ―regardless...‖ phrase.‖ LLOYD‘S LIST, 27 August 2013, p 9

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MLC: cruiseship employees are working ever longer shifts - By Liz McMahon ―Cruiseship employees are working longer hours than ever before, despite the Maritime Labour Convention 2006 coming into force, says cruise expert and lawyer Jim Walker. ―Crew members tell us that they are working 12-14 hour days, seven days a week, with no days off, throughout their contracts of six to eight months,‖ he said.― Crew members are routinely told not to record their time accurately. They often work 30-45 minutes before they are permitted to officially check in and another 45 minutes after they check out at night,‖ he said.‖ LLOYD‘S LIST, 28 August 2013, p 6 Seeking Indian seafarers ―Capt Kersi Deboo, director and principal of the Anglo-Eastern Maritime Training Centre in India, explains the difficulties of training and retaining high-quality seafarers. The BIMCO manpower update in 2010 showed that, worldwide, there were 747,000 ratings and 637,000 officers. Approximately 12.8% of the latter were from the Indian subcontinent. In 2009 the Indian Ministry of Shipping asked consulting firm McKinsey to carry out a study and propose initiatives to increase the share of Indian seafarers in the world shipping fleet. That study, published in July 2010, indicated that active seafarers from India accounted for only 7% of the total.‖ FAIRPLAY, 29 August 2013, pp 22-23 Thailand shipping feels MLC squeeze – By Michael Mackey ―The Maritime Labour Convention (MLC), promoted by the International Labour Organization (ILO), aims to kick-start a new regime of both decent work for seafarers and fair competition among shipowners. While some, especially the quality lines, have accepted it with enthusiasm, there is a suggestion in Thailand that it might consolidate the sector by driving some lines out of business.‖ FAIRPLAY, 29 August 2013, p 25

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SHIPBUILDING AND RECYCLING OF SHIPS Rush of owners to ink more ‘eco’ VLGCs threatens to bust market – By Trond Lillestolen ―Fierce competition appears to be raging among owners with a huge appetite for new ―eco-friendly‖ very large gas carriers (VLGCs) — but concern is growing that the additional orders now threaten to wreck the market.‖ TRADEWINDS, 9 August 2013, p 9 DSME wins another three 18,000 teu containerships - By Jing Yang "Contract‘s value put at $421.5m in total MSC is linked again to charter-back deal. Another contact suggested that if MSC was behind the ―bold‖ order, the thinking could be that the vessels would complement Maersk Line‘s 18,000 teu Triple-E ships in readiness for the P3 Networkstructure on the Asia-Europe trades. The P3 tie-up is due to launch in the second quarter of 2014." LLOYD‘S LIST, 30 August 2013, p 1

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SHIPPING Beijing axes some shipping administration fees - By Max Lin "Beijing has moved to abolish administration fees nationwide for parts of the maritime sector from August, in an attempt to restructure government and ease pressure on fee payers. From August, the Chinese government will stop charging visa and certification fees for ships, application fees for safety rechecks and oil film examination and recovery fees, according to the finance ministry. The government will also waive certification fees for loading, maritime arbitration fees, charges for using coastal radio and fees for examining Filipino crews. Foreign law firms will not need to pay application fees for setting up offices in China and annual check fees, the finance ministry document said." LLOYD‘S LIST, 2 August 2013, p 4

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MOL stands by full-year profit forecast despite July's 'Comfort' loss – By Andy Pierce ―Mitsui OSK Lines (MOL) is standing by its full-year profit forecast despite suffering a costly boxship casualty this summer. Masahiro Tanabe, executive managing officer at MOL, told reporters at a results briefing in Tokyo that the company would carry a ¥1bn loss relating to the disaster.‖ TRADEWINDS, 5 August 2013, p 15 Beijing reveals plan to boost shipbuilding industry - By Jing Yang "Beijing has released a long-anticipated plan to support the country‘s beleaguered shipbuilding industry to expedite the restructuring of excess capacity and the march into offshore, but it offers little detail about implementation. On Sunday, China‘s State Council, or cabinet, laid out seven-point guidance for 2013-2015 that encourages shipyards to ramp up innovation efforts, secure more offshore orders and so-called eco-ship orders in compliance with new international standards and expand overseas for a bigger global market share." LLOYD‘S LIST, 6 August 2013, p 1 Zhoushan pours money into shipping - By Max Lin "The Chinese city of Zhoushan, where one of China‘s largest maritime clusters is located, has announced it will provide direct subsidies to shipping lines expanding their fleet sizes, as well as port firms and cargo owners that are willing to use their services. While Beijing has been studying a stimulus package for shipping since last year and cut administration fees for some players, cash handouts have been rarely discussed, except for owners scrapping old tonnage." LLOYD‘S LIST, 9 August 2013, p 4 LNG fuelling body holds first board meeting in London - By Lucy Hine ―A first board meeting has been held for a new LNG fuelling body, the Society For Gas as a Marine Fuel (SGMF). An initial four-man board for the non-governmental organisation (NGO) met at London‘s Baltic Exchange building this week. The Society of International Gas Tanker & Terminal Operators (Sigtto), which has been instrumental in setting up the SGMF, was also represented. Sigtto general manager (GM) Andrew Clifton has been appointed acting GM of the new Bermudan-registered society. Clifton says a number of fundamental decisions were made at Tuesday‘s first board assembly that establish how the SGMF will operate. He adds that the first full board meeting is scheduled to take place next month, after which the society is expected to open its doors to members.‖ TRADEWINDS, 9 August 2013, p 4 Isle of Man targets South Korean market - By Max Lin "The Isle of Man flag administration is looking to win more deals from South Korean owners by offering flagging facilities supported by Korean Register of Shipping for statutory matters. KR could become an Isle of Man Recognised Organisation. It recently took nine KR-classed 13,000 teu boxships operated by Hanjin Shipping under its flag in a pilot project. ―The pilot project working with KR has gone extremely well for both sides. We were deeply impressed with the approach taken by KR, which demonstrated once again that it is one of the world‘s leading classification societies,‖ Isle of Man flag director Dick Welsh said in a press release. ―The Isle of Man flag believes this could be the first step towards a deeper working relationship with KR and the Korean shipping community in general.‖" LLOYD‘S LIST, 13 August 2013, p 2 Global container volumes surge to busiest June for two years - By Damian Brett "June saw the highest year-on-year growth rate in monthly global container export volumes so far this year, while total volumes for the month reached their highest level in the past two years. Figures just released by Container Trades Statistics show global export container volumes increased by 3% in June compared with the same month last year, to reach 10.9m teu. The 3% increase is the highest growth level recorded this year, beating May‘s increase of 2.5% to 11.3m teu into second place. May was also the month with the highest total number of container exports. ―The CTS Global Price Index, however, failed to reflect this positive change in the global trade volumes, pertaining to chronic overcapacity problems, which continue to plague the industry,‖ Mr Weber of Container Trades Statistics said." LLOYD‘S LIST, 13 August 2013, p 6

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Shipping downturn will bottom out in 2016, says SWS official - By Jing Yang "The shipping market is yet to bottom out and the industry will reach the real trough in 2016 when some credible owners and yards crumble, a senior official of Shanghai Waigaoqiao Shipbuilding said. ―The shipping market is nowhere near the bottom yet,‖ SWS vice-president Chen Jun told Lloyd‘s List in an exclusive interview. ―Some shipowners still can scrape by this year and next. Not until 2015 and 2016 will a big bankruptcy wave emerge to bring the market to the lowest point,‖ he said. More scrapping is needed to expedite the return to market equilibrium, despite the record demolition volumes seen in 2011 and 2012, according to Mr Chen." LLOYD‘S LIST, 15 August 2013, p 4 Bundesbank imposes quarterly shipping reports - By David Osler "Germany's powerful central bank has ordered all German shipping lenders to send quarterly reports on their shipping portfolios, apparently in fear of the implications flowing from huge write-offs expected to be necessary in the coming months. The move comes after Bundesbank director Andreas Dombret earlier this year warned that the industry is in ―deep crisis‖ and German banking‘s three-digit-billion-dollar exposure to the sector represents ―a significant regional and sectoral risk‖ for the system as a whole." LLOYD‘S LIST, 16 August 2013, p 1 Comment: Recession-ending data proves there is light at end of the tunnel ―Rising freight rates and stronger ship values are being underpinned by more positive economic data from around the world, bringing greater confidence that the end of this year really will mark the start of the recovery‖ TRADEWINDS, 16 August 2013, p 10 Greece will use EU presidency to boost shipping – By Georgios Hatzimanolis ―As president from January to June 2014, Greece will support a strategy set out by the European Commission (EC) that aims to strengthen shortsea shipping by reducing red tape, cutting delays in ports and making the industry more competitive. The EC says many freight forwarders and exporters complain that if they send goods across Europe by sea, the heavy administrative burden at ports causes additional costs and significant delays. Ships can wait for hours and sometimes days in ports for customs clearance, making maritime transport less attractive than other forms, especially road, forcing more trucks onto already congested highways.‖ TRADEWINDS, 16 August 2013, p 19 Indonesia takes crooked path to maritime maturity ―Indonesian shipping clamours for a coastguard and an end to corruption as it strives for recognition in the big league, writes Zoe Reynolds.‖ FAIRPLAY, 29 August 2013, pp 6-7 Blacklist flag admits to mislaying ships – By Stephen Spark ‖The transport ministry of the Indian Ocean archipelago nation of Comoros has admitted it does not know how many ships fly its flag or where they are, according to Comorian newspaper Al-Watwan. The World Shipping Directory lists 203 merchant ships over 500gt, but former registry personnel suggest the total may be closer to 500 vessels. The problem is not new. In July 2011 Le Mohelien quoted presidential transport adviser Ahmed Abdullah as saying: ―Tens or hundreds of Comoros flag [ships] drag about all over the world. In addition, they are not registered with us…We need to do some research about it.‖ FAIRPLAY, 29 August 2013, p 19 New wave of Chinese banks eye up ship finance opening – By Bob Rust ―A new set of Chinese players is waiting in the wings to provide bank finance for foreign and domestic shipowners because established banks struggle with challenged legacy portfolios. ―First-tier and second-tier Chinese commercial banks‖ that have not yet made an appearance on the ship-finance scene are eager to step in where established players have been burned, according to DNB‘s head of shipping, offshore and logistics in China, Cissy Zhou, who has been in talks with state-owned commercial banks looking to make their start in the industry. The motivation is mainly commercial and, although there is a political agenda involved, it has nothing to do with recently announced government policies aimed at strengthening China‘s shipbuilding industry.‖ TRADEWINDS, 30 August 2013, p 2

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Maritime Knowledge Centre

CURRENT AWARENESS BULLETIN | Vol.XXV | No.8 | August 2013 20

ARTICLES OF INTEREST

Acomi N, Acomi O (2013) Steps towards the energy efficient ship. Analele Universitatii

Maritime Constanta 14: 17–20.

Batalden B-M, Sydnes AK (2013) Maritime safety and the ISM code: a study of investigated

casualties and incidents WMU Journal of Maritime Affairs Online First

Bhardwaj S (2013) Technology, and the up-skilling or deskilling conundrum. WMU Journal of

Maritime Affairs Online First

Bloor M, Sampson H, Baker S, Dahlgren K (2013a) The instrumental use of technical doubts:

Technological controversies, investment decisions and air pollution controls in the global

shipping industry. Science and Public Policy Online First (OA)

Bloor M, Sampson H, Baker S, Walters D, Dahlgren K, Wadsworth E, James P (2013b) Room

for Manoeuvre? Regulatory Compliance in the Global Shipping Industry. Social & Legal Studies

22: 171–189.

Cullinane K, Cullinane S (2013) Atmospheric Emissions from Shipping: The Need for

Regulation and Approaches to Compliance. Transport Reviews 33: 377–401.

Hallwood P, Miceli TJ (2013) An examination of some problems with international law

governing maritime piracy. Maritime Policy & Management 40: 65–79.

Harris A (2013) CAP’N CARBON. Engineering & Technology 8: 50–51.

Kang HJ, Yang Y-S, Choi J, Lee J-K, Lee D (2013) Time basis ship safety assessment model for

a novel ship design. Ocean Engineering 59: 179–189.

Khan MY, Ranganathan S, Agrawal H, Welch WA, Laroo C, Miller JW, Cocker DR (2013)

Measuring in-use ship emissions with international and U.S. federal methods. Journal of the Air

& Waste Management Association 63: 284–291.

Loverving A (2013) Koji Sekimizu, Secretary-General, International Maritime Organization

« Research Media – Europe Research & Scientific Dissemination. (OA)

McArthur DP, Osland L (2013) Ships in a city harbour: An economic valuation of atmospheric

emissions. Transportation Research: Part D 21: 47–52.

Mestl T, Løvoll G, Stensrud E, Le Breton A (2013) The Doubtful Environmental Benefit of

Reduced Maximum Sulfur Limit in International Shipping Fuel. Environmental Science &

Technology 47: 6098–6101.

Nechita M, Mocanu C-I, Popescu G (2013) The influence of shell’s shape in ship design. Analele

Universitatii Maritime Constanta 14: 125–128.

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CURRENT AWARENESS BULLETIN | Vol.XXV | No.8 | August 2013 21

Nikolakaki G (2013) Economic incentives for maritime shipping relating to climate protection.

WMU Journal of Maritime Affairs 12: 17–39

Obokata T (2013) Maritime piracy as a violation of human rights: a way forward for its effective

prevention and suppression? International Journal of Human Rights 17: 18–34.

Papa P (2013) US and EU strategies for maritime transport security: A comparative perspective.

Transport Policy 28: 75–85.

Pearce F (2013) Ships must kill off the beasties in the ballast water. New Scientist 216: 24–25.

Petrig A (2013) The Use of Force and Firearms by Private Maritime Security Companies Against

Suspected Pirates. International & Comparative Law Quarterly 62: 667–701.

Piniella F, Silos JM, Bernal F (2013) ¿Quién se ocupará de dar cumplimiento al Convenio sobre

el trabajo marítimo, 2006? (Spanish). Revista Internacional del Trabajo 132: 69–98.

Schröder-Hinrichs J-U, Hollnagel E, Baldauf M, Hofmann S, Kataria A (2013) Maritime human

factors and IMO policy. Maritime Policy & Management 40: 243–260.

Sinking under a big green wave. (2013) Economist 406: 69–69.

Struett MJ, Nance MT, Armstrong D (2013) Navigating the Maritime Piracy Regime Complex.

Global Governance 19: 93–104.

Thai VV, Balasubramanyam L, Yeoh KKL, Norsofiana S (2013) Revisiting the seafarer shortage

problem: the case of Singapore. Maritime Policy & Management 40: 80–94.

Trelawny C (2013) Piracy in West Africa: A symptom of wider problems? (Cover story). New

African 16–21. (IMO Author)

Van Leeuwen J, Kern K (2013) The External Dimension of European Union Marine Governance:

Institutional Interplay between the EU and the International Maritime Organization. Global

Environmental Politics 13: 69–87.

Vedaprakash L, Dineshram R, Ratnam K, Lakshmi K, Jayaraj K, Mahesh Babu S, Venkatesan R,

Shanmugam A (2013) Experimental studies on the effect of different metallic substrates on

marine biofouling. Colloids & Surfaces B: Biointerfaces 106: 1–10.

Venus Lun Y., Lai K, Wong C, Cheng TCE (2013) Green shipping practices and firm

performance. Maritime Policy & Management. Online First

Yang ZL, Wang J, Li KX (2013) Maritime safety analysis in retrospect. Maritime Policy &

Management 40: 261–277.

Zheng J, Hu H, Dai L (2013) How would EEDI influence Chinese shipbuilding industry?

Maritime Policy & Management 40: 495–510.

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Back to Contents

SPECIAL REPORTS Ballast water treatment: FAIRPLAY SOLUTIONS, August 2013, pp 14-26 Bulker safety: SAFETY AT SEA, September 2013, pp 16-21 Container and ship safety: SAFETY AT SEA, August 2013, pp 18-21 Denmark powerhouse: FAIRPLAY, 29 August 2013, pp 20-21, 32-35 Engine Technology: FAIRPLAY SOLUTIONS, August 2013, pp 28-37 Hamburg: FAIRPLAY, 22 August 2013, pp 34-45 Navigation and Bridge: SAFETY AT SEA, September 2013, pp 22-25 Piracy and Security: SAFETY AT SEA, August 2013, pp 28-32 Road to MLC: LLOYD‘S LIST, 16 August 2013, pp 6-7 Road to MLC: LLOYD‘S LIST, 20 August 2013, pp 4-6 Safety at Sea Awards review: SAFETY AT SEA, August 2013, pp 22-27 Security News: SAFETY AT SEA, August 2013, pp 14-15 Tanker safety: SAFETY AT SEA, September 2013, pp 26-31 Training News: SAFETY AT SEA, August 2013, pp 16-17 UK Ports: LLOYD‘S LIST, 23 August 2013, pp 6-9 UK shipping: FAIRPLAY, 15 August 2013, pp 16-41

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