1

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 XXV – No. 5 May 2013

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

2

MEETINGS

Click here for the programme of IMO meetings for 2013, the summary reports for meetings held so far and the provisional agenda.

PRESS BRIEFINGS

IMO NEWS (Issue 1, 2013) 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 AND SALVAGE 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

3

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: Fairplay International Shipping Weekly: http://www.fairplay.co.uk Fairplay Solutions: http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx Lloyds‘ List: http://www.lloydslist.com MER http://www.imarest.org Navigation News: http://www.rin.org.uk/ Ports & Harbours: http://www.iaphworldports.org/ Safety at Sea: www.safetyatsea.net 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 AND SALVAGE Last Word: $7.5m clean-up bill for Rena "A member of New Zealand‘s parliament says the nation‘s taxpayers will have to contribute at least NZ$8.8m ($7.5m) towards cleaning up after the Rena boxship casualty that has cost around NZ$47m thus far. When the breakdown of costs to agencies was published last week, Green Party MP Gareth Hughes accused the government of ―not being prepared‖ to deal with such an incident. The Costamare-owned, Mediterranean Shipping Co-chartered 3,351 teu ship grounded and then broke up on Astrolabe Reef, North Island, after taking a short-cut into Taurango‘s container port on October 5, 2011. The ship spilled around 350 tonnes of heavy fuel oil and many of its 1,368 containers into the environmentally sensitive Bay of Plenty, prompting a massive salvage response that at one point involved almost 1,000 people working on the oil-spill alone." LLOYD‘S LIST, 7 May 2013, p 12 Messina ro-ro collides with Genoa control tower - By Max Tingyao Lin and Janet Porter "JOLLY Nero, the 37-year-old ro-ro/containership that hit a harbour wall and toppled the control tower in Genoa on Tuesday night, had been checked by port state control inspectors just days earlier. Minor deficiencies were uncovered during an inspection in Spain on May 2, according to Lloyd‘s List Intelligence, but nothing sufficiently serious to detain the vessel: a fire safety operational booklet was said to be incomplete. An inspection in the same Spanish port of Castellon a year earlier found that some hatchway covers had not been properly maintained. The ship was involved in one previous casualty before this week‘s fatal incident, in 2001. Seven people were confirmed dead as of Wednesday afternoon after the Italy-flag Jolly Nero collided with the building. Several more were injured and others still missing, according to media reports. The 1976-built ship is owned and operated by Italy‘s Ignazio Messina and was leaving Genoa for Naples at the time of the incident, having arrived from Castellon a few days earlier. As many as 14 people were in the control tower at the time, more than usual as staff were changing shift. The cause of the incident is not confirmed and search operations were ongoing." LLOYD‘S LIST, 9 May 2013, p 8 Voices rise to demand? refuge ―Salvors have had enough of being thrown around in the winds of political and economic interests, which they say significantl¬y threaten salvage and wreck removal operations. One senior salvage executive told Fairplay: ―We need the guidelines on places of refuge (PoR) to be more widely adopted. The Flaminia took 52 days, the Stolt Valor something like three months. It is just stupid. But the salvage industry can‘t do it on its own. We need wider backing, so we are talking to the shipping industry. We‘re not sure what direction things will go in. Probably not IMO; maybe Europe.‖ The International Salvage Union (ISU) is due to publish its position paper on PoR later this year and has

4

had preliminary meetings with the shipping industry to discuss areas of common ground.‖ FAIRPLAY, 9 May 2013, pp 6-7 ‘Mega burden’ looms over salvors and owners ―Flooding on the E-class Emma Maersk in February was dubbed a wake-up call by salvors and insurers. As for shippers, so for salvors: the safety of life is primary, followed by safety of the environment, and of property. But while the UN Convention on Safety of Life at Sea (SOLAS) has reduced the loss of life by initiating ship design and operational improvements, salvors are concerned that when accidents do happen, regulations focus on prevention rather than on managing the aftermath. The incident of the Emma Maersk ―got speculation going even further in relation to ‗what ifs‘ about container casualties and their associated costs‖, Michael Kelleher, director in charge at West P&I Club‘s claims management division, told a meeting of the salvage industry in March. He said costs were significantly increased by cargo recovery and disposal, especially where the customers were involved. A recent Lloyd‘s report, The challenges and implications of removing shipwrecks in the 21st century, said: ―The difficulty of salving a wrecked ship is not a design consideration‖ and highlights ‗mega vessels‘ as a cause of concern.‖ FAIRPLAY, 9 May 2013, pp 28-29 Officer 'bridge blunders' led to Singapore collision – By Adam Corbett ―A probe by the Danish Maritime Accident Investigation Board (DMAIB) into the June collision between the 3,000-teu Josephine Maersk (built 2002) and 93,000-dwt Spring Glory (built 2011) blamed an inexperienced watch, hesitation and the use of a VHF radio. The Hong Kong flag Spring Glory, fully laden and heading east in the Singapore traffic separation scheme (TSS), had spotted the Josephine Maersk heading west, 10 minutes before the ships collided. However, the Chinese controlled bulker‘s options for avoidance were limited because of heavy traffic in the area, says the DMAIB, adding that the Spring Glory‘s officer on watch waited for the Maersk ship to take action. Last minute attempts to contact the Josephine Maersk by VHF only delayed collision avoidance action and did nothing to help the situation, the DMAIB notes. Both ships took avoiding action when it was already too late, resulting in the smash. Although there was no pollution or injury, the Spring Glory had significant damage to the bow and forecastle, while the Josephine Maersk sustained damage to its containers and stern section.‖ TRADEWINDS, 17 May 2013, p 33 BP admits to Malacca VLCC incident – By Adam Corbett ―BP Shipping confirms that one of its spot chartered VLCCs was forced to lighter its cargo after it struck an unidentified object in the Malacca Strait. A fully laden BP Shipping chartered VLCC was involved in a grounding off Malaysia in an incident that is being blamed on an uncharted object. The 300,000-dwt Eliza (2008) was fixed for a cargo to a Southeast Asian destination but hit something off Linggi, Malaysia, just north of Malacca in the Malacca Strait. Although the incident happened earlier this month and was not widely known, it was immediately acknowledged by the UK based oil major when approached by TradeWinds. The company did not disclose exactly when the incident happened but said an unidentified and uncharted object is thought to have been the cause. The collision appears to bear similarities to a 2004 incident involving the Tsakos controlled, 61,000-dwt tanker Athos I (built 1983), which hit a discarded anchor in the Delaware River in the US. However, that casualty led to a major spill.‖ TRADEWINDS, 17 May 2013, p 33 Passengers flee ferry blaze ―More than 100 passengers have been evacuated from a Turkish ferry that caught fire in the Sea of Marmara. Sabret had been en route to the Prince‘s Islands from Istanbul when fire took hold about 17:00 on 2 April. A tug and several rescue vessels came to the aid of the distressed ferry. Its passengers were evacuated to another ferry called Caddebostan.‖ SAFETY AT SEA, June 2013, p 8 Shipping industry must invest in salvage or face national legislation - By Liz McMahon "The capability gap between what salvors can provide in terms of specialist equipment and what shipowners need is a growing problem that will be dealt with by national legislation unless all parties in the shipping industry come to the table, says Swiss Re head of marine Pete Townsend. Mr Townsend, who is also chairman of Lloyd‘s Joint Hull Committee, told Lloyd‘s List the industry should look to close a gap that is becoming ever more difficult with the biggest vessels — especially the largest containerships — leaving all parties more exposed. He said getting the parties to participate in the debate — including salvors, shipowners, P&I clubs and hull underwriters — was like ―herding cats‖." LLOYD‘S LIST, 30 May 2013, p 7

Back to Contents

IMO Lively MEPC looks likely ―Next week‘s MEPC 65 will be another chance for the IMO to resolve two controversial issues that have become a sticking point for the industry in recent years. Heated debate can be expected over the implementation of the IMO Ballast Water Management Convention when the final ratifications it requires are eventually received. The industry is concerned that without some concessions

5

on the installation deadlines, insufficient yard capacity will be available to meet the expected rush.‖ FAIRPLAY, 9 May 2013, p 31 MEPC reviews ballast water bottleneck - By Craig Eason "Shipowners could find out this week whether they will receive some leniency over deadlines to install ballast-water treatment technologies. Shipping is facing an expensive bottleneck when the ballast water convention comes into force. The convention, written and agreed by the members of the International Maritime Organization in 2004, states that when it does come into force certain deadlines become active. When the convention eventually comes into force — a year after administrations representing an additional 6% of the global fleet have ratified it — thousands of ships will need to comply with it. Owners will have to install thousands of expensive treatment systems across the world‘s fleet unless discussions at this week‘s IMO marine environment protection committee go in their favour and produce agreement to adopt a more phased approach." LLOYD‘S LIST, 14 May 2013, p 3 IMO brings hope to shipowners facing ballast-water bottleneck - By Craig Eason "Delegates attending this week‘s marine environmental protection committee meeting at the International Maritime Organization have agreed to work on easing the installation bottleneck of ballast-water treatment systems. A resolution is to be written, and hopefully agreed at the IMO assembly later this year, amending the requirement to install systems by a certain deadline, instead allowing vessels to have systems installed at their next scheduled drydock. The ballast water convention is on the cusp of coming into force. After additional IMO member states representing about 6% of the world‘s fleet have signed it, it will come into force a year later. Once in force, a series of retrospective convention deadlines, for when ships need to have ballast discharges that are clear of organisms, will come into force. Without this resolution to give shipowners more leeway with the installation of systems on their vessels, thousands of ships would need to have systems installed almost simultaneously." LLOYD‘S LIST, 17 May 2013, p 4

Back to Contents

LAW AND POLICY Chinese law creates marine maze – By Angela Yu ―Maritime companies involved in China‘s offshore sector risk a complex web of potential multiple lawsuits stemming from accidents, if the unfolding case of ConocoPhillips‘ mishap in the Peng Lai 19-3 oilfield in 2011 is anything to go by. About 3,000 barrels of oil and mud leaked in Bohai Bay between June and August 2011, according to ConocoPhillips China (COPC). China‘s State Oceanic Administration (SOA) said leaks at two rigs polluted more than 5,500km2, affecting about 7% of the Bohai Sea. Most marine damage has since been cleaned but the legal damages mount. Part of the problem is that, at present, China has no special laws on compensation for damage to marine ecological resources caused by platform leakage.‖ FAIRPLAY, 2 May 2013, p 31 Conflicts of interest – tragedy in PNG – By Zoe Reynolds ―When Chris Kamilus Rupen, CEO of the National Maritime Safety Authority (NMSA) of Papua New Guinea (PNG), testified at the statutory commission of inquiry into the February 2012 sinking of the Rabaul Queen, he spoke frankly. NMSA was open to a conflict of interest, he said. The softly spoken CEO with a master of science degree in general maritime administration from the IMO World Maritime University in Malmö, Sweden, went further, proposing how to rectify the matter. PNG, he said, required a separate maritime safety investigation body. His recommendation was ultimately adopted when the inquiry released its report last September. The inquiry confirmed conflicts of interest. Two ships belonging to the then chair of the NMSA board, Hamish Sharp, sank during his tenure. Both ships had breached safety regulations, the inquiry found.‖ FAIRPLAY, 9 May 2013, pp 16-17 Legal recognition ―The International Maritime Law Institute (IMLI) has recognised the work of the IMO‘s legal committee with the Award for Meritorious Contribution towards the Progressive Development and Codification of International Maritime Law. IMO secretary-general Koji Sekimizu presented the award to committee chairman Kofi Mbiah, CEO of the Ghana Shippers Authority. Mbiah separately received the IMLI‘s Graduate International Achievement Award for his contribution to the international maritime community, in particular the IMO‘s legal committee.‖ FAIRPLAY, 16 May 2013, p 40 Indonesia frees tanker ―A tanker held in Indonesia for six months following a collision has been released, its operator confirmed. Norgas Cathinka was freed on 9 April but two of its crew members are still being held by Indonesian authorities ―awaiting completion of trial re: their role in the events leading to the collision and the loss of lives‖. Cathinka is alleged to have collided with Indonesian ro-pax Bahuga Jaya in the Sunda Strait, Indonesia, on 26 September 2012. The ro-pax sank after the collision, leaving eight people dead.‖ SAFETY AT SEA, June 2013, p 8

6

Marine warranty surveyors body ensures global standard - By Liz McMahon "The recently launched International Association of Marine Warranty Surveyors will give insurers the extra confidence the sector is operating to a universal standard, says co-founder Peter Baggaley. The new body will assess and provide accreditation to practising marine warranty surveyors to ensure they operate to an acknowledged minimum professional standard and code of ethics. Marine warranty surveyors attend marine operations as part of an assurance process that gives independent, third-party review and approval of high-value, high-risk marine operations. The prime objective of the marine warranty surveyor is to ensure the marine risks associated with offshore oil and gas construction are reduced to an acceptable level." LLOYD‘S LIST, 22 May 2013, p 7 Cargo insurers beware different definitions of terrorism - By Liz McMahon "Insurers and consumers of cargo insurance need to be more aware than ever of important differences in the definition of terrorism, depending on which law applies to their policies, according to Clyde & Co consultant John Dunt. He said courts of different countries currently give quite different meanings to words such as terrorism and riot, requiring insurers and consumers of cargo insurance to be more aware than ever of these distinctions. Mr Dunt said recent attacks on vessels off the coast of West Africa, with losses of bunker oil cargoes, have highlighted the need to scrutinise marine cargo insurance cover for piracy, terrorism and related war and strikes risks, such as riots and insurrections. The potential threat from Bangladesh-based pirates shows this is likely to be an ongoing risk, he said." LLOYD‘S LIST, 22 May 2013, p 7 Myanmar to upgrade maritime laws - By Crystal Chan ―As Myanmar continues its march towards a free market economy it is seeking to bring its maritime laws in line with current international standards. In April the southeast Asian country‘s transport ministry appointed veteran Singapore shipping lawyer Jude Benny as a consultant. Benny, managing partner of Singapore law firm Joseph Tan Jude Benny LLP, will assist in updating Myanmar‘s maritime laws, which have not been reviewed for 30 years due to the country‘s isolation under the former military junta.‖ FAIRPLAY, 23 May 2013, p 36 Ropax collision blamed on propulsion setting failure – By Adam Corbett ―German maritime safety investigators say overfamiliarity with on board systems could have led to a smash between two ropax vessels in the port of Travemunde last year. A collision between two ro-ro vessels was caused when the command on one of the ships failed to change the setting on its pod propulsion system, according to an accident investigation. The 36,468-gt ropax Nils Holgersson (built 2001), owned by TT Line, was conducting a turning manoeuvre at the German ferry terminal of Travemunde in May 2012 when it collided with the 13,144-gt Danish ropax URD (built 1981), which was tied up at the pier. An investigation by the German Federal Bureau of Maritime Investigation (BSU) concluded that the Nils Holgersson had reduced manoeuvrability because the setting for its two pod propulsors had not been changed from sea mode to harbour mode by the ship‘s command. The report described this failing as a ―momentary lapse‖ that was to have disastrous consequences.‖ TRADEWINDS, 24 May 2013, p 31 Elusive arbitration ruling seen as threat to bargain piracy cover – By Jim Mulrenan ―Shipowners are facing a challenge to their ability to recover kidnap and ransom premiums from charterers. An elusive arbitration ruling that challenges the accepted view that the cost of piracy cover can be passed on to charterers is sparking insurance market concern. The issue at the centre of the row is whether kidnap and ransom (K&R) insurance, as well as some other additional covers, are ―necessary‖, and thus a cost that shipowners can recover from charterers. An arbitration panel has apparently taken the view that K&R as well as loss of hire cover taken out before a vessel transits the Gulf of Aden is not ―necessary‖, with the result that an owner is unable to charge the premium to the charterer. Although only scant details of the arbitration are available, the ruling could have a major impact on the war risks and related insurance market, possibly disrupting what has become one of the more lucrative lines of business for marine underwriters.‖ TRADEWINDS, 24 May 2013, p 32

Back to Contents

MARINE TECHNOLOGY ENC services upgraded ―ChartWorld has launched an updated version of its ChartBrowser digital chart catalogue application. The free software allows users to import, calculate, or manually create routes, select charts, manage a chart inventory, and create a basket file that can be used to order selected products direct from ChartWorld. Orders can be executed by email directly from a vessel and delivered chart data, such as permits and updates, can be received directly from within ChartBrowser. This can then be exported to be applied to ECDIS/ECS systems. ChartBrowser 2.0 supports all official ENC formats from UKHO, Primar, and IC-ENC, as well as the ACES (S)ENC format for eGlobe, S-ECDIS, and Imtech ECDIS. In addition, ordering of ARCS and paper charts is supported.‖ FAIRPLAY, 2 May 2013, p 35

7

Scorpio Tankers boss hits back at eco vessel skeptics – By Andy Pierce ―Scorpio Tankers has fired a broadside at critics who continue to question the merits of investing in eco-ships. Cameron Mackey, chief operating officer at the New York-listed owner, this week dismantled each of the key criticisms the cynics have put forward. Scorpio revealed that its medium-range (MR) tankers carrying the eco stamp earned $20,726 daily in the three months to the end of March. This is $4,300 above the average daily cheque posted for the company‘s chartered MR fleet. In a presentation to investors, Mackey gave a real-life example, suggesting the eco-ships offer an advantage of $3,400 daily on a TC2 round trip from Rotterdam to New York.‖ TRADEWINDS, 3 May 2013, p 14 US accepts nine ballast water systems ―Nine ballast water treatment systems have been accepted in the United States to allow shipowners to comply with new ballast water regulations. The US Coast Guard announced on 15 April that vessel operators could use any of the systems to treat their ballast water discharges in lieu of ballast water exchange – the flushing out of ballast water tanks with deep sea water – while they undergo type-approval testing to federal standards. The nine systems are from: Alfa Laval Tumba (two systems); Ecochlor; Hyde; NK Company; Qingdao Headway Technology Company; RWO Marine Water Technology, Veolia Water Solutions and Technologies; Severn Trent De Nora; and SunRui.‖ FAIRPLAY SOLUTIONS, May 2013, p 6 Automatic chart updates with iECDIS ―Martek Marine is soon to launch iECDIS with built-in GSM mobile connectivity technology. This will provide wireless updates without the need for physical disc updates, VSAT, or broadband downloads. The iECDIS chart correction service takes Notices to Mariners and applies them to a chart overlay, which is automatically downloaded and updated. The same applies to chart updates. iECDIS time-stamps chart downloads and provides proof that the ship has been carrying the latest version, as well as showing the next date of download to show full PSC compliance. Martek‘s says that the GSM modem update service will use 2G and 3G connectivity as a cost-effective alternative to expensive VSAT data transfer and time-consuming manual installation.‖ FAIRPLAY SOLUTIONS, May 2013, p 7 Eco-ships under fire ―Precious Shipping managing director Khalid Hashim has dismissed the hype surrounding ‗eco ship‘ designs that promise to counter high bunker prices. Speaking at a pre-Sea Asia round-table in Singapore in March, Khalid dismissed eco-designs as nothing more than a gimmick by shipbuilders, adding that the design concept is inapplicable to bulkers. Khalid, who heads Thailand‘s biggest bulker owner, cited GL research to prove his point. ―The eco-ship concept is really just a marketing ploy by almost-dead shipyards to try to get a short lease of life,‖ he claimed.‖ FAIRPLAY SOLUTIONS, May 2013, p 10 Mitsubishi Heavy and Chengxi Shipyard in ballast retrofit tie-up - By Tom Leander "Mitsubishi Heavy Industries of Japan and China‘s Chengxi Shipyard (Xinrong) have agreed to collaborate in shiprepair through retrofitting ballast-water treatment systems. The project will tap into demand for retrofitting the systems in response to the International Maritime Organization‘s ballast- water convention, due to come into full force in 2017. At that time, new and existing ships will be required to install a system to purify ballast water before the water is discharged from the vessel. The entry of a Chinese yard into collaboration with MHI, which has a reputation for sophisticated design, is aimed at presenting a lower-cost alternative to retrofitting the systems amid vocal and long-running criticism that the convention‘s requirements are expensive for shipowners in a depressed market." LLOYD‘S LIST, 8 May 2013, p 5 Counting the cost of lube oil - By Craig Eason "Vessel maintenance and operational costs are rising as slow steaming increases lube oil consumption. A number of key factors have been leading major oil manufacturers to invest in developing new lubricants capable of treating engines operating under slow steaming conditions, working with low sulphur fuels and now with new US rules, biodegradable oils. One of the key factors used to determine a lube oil is its base number, mostly referred to as BN and its kinematic viscosity. Traditionally a lube of around BN70 was used to handle all sulphur content in fuels. Engine makers such as MAN Diesel would recommend a feed rate into its engines according to its operating conditions and the qualities of the lube oil." LLOYD‘S LIST, 8 May 2013, p 8 Dutch outfit launches EEDI verification training course - By Craig Eason "A course has launched to teach experts how to verify the now-mandatory energy efficiency design index. Naval architects have welcomed the EEDI, saying it allows them to become more innovative with ship design, freeing them to focus on efficiency and not only on maximising cargo capacity. However, since the International Maritime Organization made it mandatory for all ships to have an EEDI value — and for it to be under a specific level for the year of build — there have been no independent auditors capable of assuming the verification role. As of January, any newbuilding has to have a calculated EEDI value that must subsequently be verified during sea trials. Because the shipyard, owner and classification society involved with verification may have vested interests in the vessel meeting its EEDI benchmark level, there are concerns over who can take on this role. Dutch marine engineering research group Marin has now launched a week-long

8

course to offer various parties the opportunity to master the lengthy calculations needed to prove that the design criteria of a vessel meet the EEDI benchmarks, and to attend the verification sea trials prior to the vessel being handed over to the shipowner." LLOYD‘S LIST, 8 May 2013, p 8 Environmentally acceptable lubricants ―New guidance from the US EPA has clarified the definition of environmentally acceptable lubricants.‖ MER, May 2013, p 26 Ships of the future could be made of plastic and controlled from land - By David Osler "Vessels will look very different within 20 or 30 years‘ time, with widespread use of alternative materials and sweeping advances in automation that will see remote-controlled ships come in a matter of time, the audience at the Lloyd‘s List Summit was told. Seaspan chief executive Gerry Wang highlighted the use of composite material in aircraft and pointed out that ships carry their own weight, for which the operator makes no money. Mr Wang said he had encouraged his son to study materials science, on the grounds that if he successfully finds a way to get rid of steel on ships, he stands to become a billionaire. Rolls-Royce marine vice-president of innovation Oskar Levander said that although change was inevitable over the next decade or two, it would not come in one large increment but step by step. Skyrocketing fuel prices were likely to encourage innovative ideas. These include developments in wind power and in harvesting wave energy." LLOYD‘S LIST, 13 May 2013, p 7 Shipping can learn from car industry - By Hal Brown "Shipping could learn from the regulations imposed on the car industry to improve engine efficiency, according to Carbon War Room president José Maria Figueres. Regulations from Washington on the US car industry have enhanced engine efficiency, making vehicles more fuel efficient and less polluting. President Barack Obama has said he wants fuel efficiency standards raised to 55 miles per gallon for new vehicles by 2025. The aim, he has said, is to conserve oil and help drivers spend less at the pumps. ―This could be replicated in the shipping industry as well,‖ said Mr Figueres at the Lloyd‘s List Summit. Stricter regulations to improve ships‘ engine efficiency would have the added advantage of saving shipowners money, improving their bottom lines, he said." LLOYD‘S LIST, 14 May 2013, p 4 Collaboration is key to innovation in ship design - By Craig Eason "Shipbuilders and shipowners are being urged to collaborate more closely with each other and with other industry players to push forward innovation. The shipping industry increasingly sees innovative ideas as the way to overcome cost inefficiencies in ship design and operations. The so-called eco-ship is a mere next step in ship design and represents how things should have been 10 years ago, Seaspan chief executive Gerry Wang told the Lloyd‘s List Summit audience last week. However, the ship designs emerging with the latest newbuilding orders are step changes and, in many cases, are achieved without much effort. Rolls-Royce head of innovation Oskar Levander pointed out that these designs were often achieved by applying basic naval architecture. It was also easy to make bold claims over a new design by comparing it to a poorly designed predecessor, Mr Levander said." LLOYD‘S LIST, 15 May 2013, p 8 Eco-ships offer shipowners no competitive advantage - By Craig Eason "A leading financial institution has poured cold water on industry claims about the benefits of ordering so-called eco-ships just as leading shipowners forge ahead with orders. In its latest transport industry analysis, Barclays Research has said that although the economics of ordering a new vessel might be incrementally positive, each new vessel order lengthens the duration of the overcapacity overhang and reduces the value of all existing vessels. This goes against the rationale for some recent orders placed by prominent cash-rich owners such as Copenhagen-listed Norden seeking to be at the cusp of ordering new fuel-efficient tonnage to gain a market advantage from low yard prices and eventually more economical tonnage. This is the definition of the shipping industry, says Barclays Research in its Wheelhouse report: ―The endless quest to order ever more fuel efficiency — read larger — vessels to reduce unit cost.‖" LLOYD‘S LIST, 16 May 2013, p 1 Ballast muddle "The fact that member states of the International Maritime Organization have now agreed to consider in one committee some text regarding the ballast-water technology bottleneck, then pass it to another committee, should be seen as somewhat positive. Finally, a problem that was of its own making has been noticed. In a very short time all ships will need to have a piece of technology installed that, until the ballast water convention was written, never existed before and to date is still barely seen in operation. If all goes well, the IMO assembly will agree to shift deadlines for installing treatment technology, giving vessels until their scheduled surveys after the ballast-water convention comes into place." LLOYD‘S LIST, 16 May 2013, p 2 Is there a cloud over LNG ambitions? - By Craig Eason "Larger newbuildings subject to teething problems. Norway has successfully marketed itself as one of the leading players in the development of gas-powered shipping, but there are some tell-tale signs the road is not as smooth as the country‘s experts would have the industry think. While a growing number of Norwegian smaller ferries and offshore

9

vessels are being powered by liquefied natural gas, there appear to be some delays in the delivery of one or two of the larger vessels on order. Fjord Line, Sea-Cargo and Nor-Lines have all ordered larger ro-ro or ro-pax vessels that will utilise LNG. All six vessels are subject to substantial delays. The delivery of two gas-powered ferries to Fjord Line has become a bit of an embarrassment for Bergen Group. The Norwegian shipyard has had to notify the ferry operator — and the Oslo exchange — at least three times of delays in the delivery of the vessels." LLOYD‘S LIST, 22 May 2013, p 9 Clean ahead on fuel ―Norway has taken a leading role in clean technology, especially in the search for alternatives to heavy fuel oil. The country‘s NOx tax on shipping and grants from the resulting NOx fund to vessels that incorporate means of reducing emissions was a definite spur to the interest in using LNG to fuel ships. And while it is true that LNG is cleaner than fuel oil, there is a nagging suspicion that the Norwegian government has more interest in increasing the value of its gas reserves than anything else. Since the European Union, most classification societies and pioneering owners switched to gas, Norway is now looking at other technology, currently battery power. Viking Lady, the PSV owned by Eidesvik, which was a pioneer of fuel cell technology, is now fitted with a battery pack for experimental purposes.‖ FAIRPLAY, 23 May 2013, pp 38-39 Nor-Shipping: Keeping it in the family ―Today the transfer of technology from developed to developing countries is being seen by some not affected as less of a theft of intellectual property rights and more a necessity in order to meet aspirational goals set by the UN and the IMO. Surprisingly, this is being seen in some quarters in Norway as not so much a threat but more a spur to Norwegians to go one better and develop new ideas as their hold on existing technology weakens.‖ FAIRPLAY, 23 May 2013, pp 38-39 Intertanko and ASF hail new ballast-water schedule - By Tom Leander "Intertanko and the Asian Shipowners‘ Forum have praised the decision by the International Maritime Organization‘s Marine Environmental Protection Committee to ease the schedule for implementing the ballast water management convention. The committee last week agreed to reschedule the implementation dates and to other measures that include a trial period for port state control and new guidance on ballast water management system type approvals. The measures were in line with an Intertanko-led joint proposal last year. The proposal is subject to approval at an IMO meeting in November. Crucially, it recommended that ships will not be required to install a ballast water management system until the first renewal survey after entry into force of the IMO‘s ballast water management convention. ―This revised schedule is more logically pinned to the entry into force date of the ballast water convention,‖ said Tim Wilkins, Intertanko‘s senior manager, environment." LLOYD‘S LIST, 24 May 2013, p 2 Ferry and ro-ro operators get their own energy efficiency index - By Craig Eason "Ferry and ro-ro owners have welcomed a final decision on how their future vessels will be incorporated into current carbon dioxide emissions-reduction regulations. The energy-efficiency design index had previously been agreed for a range of vessel designs, coming into force in January this year. Any general cargo vessel newbuilding design is required to have an EEDI calculated and then verified during sea trials. The International Maritime Organization has created a set of benchmarks for verifying an EEDI, which is essentially an index of the amount of CO2 emitted for the cargo carried. Ferries and ro-ro vessels were exempt as the cargo space is difficult to calculate in a similar way to a tanker or bulk carrier‘s tonnage. Further, due to the nature of their activities, ferries and ro-ro vessels tend to have larger engines to give emergency power reserves. Fuel efficiency will be required to improve 5% over existing designs from 2016, by at least 20% from 2020 and by a minimum of 30% from 2030. Future vessels are therefore expected to be extremely innovative and advanced to meet these strict requirements, but Mr Roos added that the IMO outcome was the best way forward to improving the design and energy efficiency of new ferries while remaining competitive." LLOYD‘S LIST, 29 May 2013, p 7 Distillates will rule the ECA markets in 2015 ―Distillate prices, availability after 2015, and shortages around 2020 were key topics at a bunker conference in Amsterdam. In the bunker fuel market, the consensus expressed at the Platts European Bunker Fuel Conference in Amsterdam last week was that 2015 is so close that the only option for operation in the two emission control areas (ECAs) would be to switch to distillate fuels. With about 19 months to go before 1 January 2015, presenters were in agreement that there was insufficient time to consider alternatives.‖ FAIRPLAY, 30 May 2013, pp 16-17 Maersk trials fuel saving technologies on VLCC guinea pig – By Jonathan Boonzaier ―Maersk Tankers‘ bright blue ‗Maersk Ingrid‘ has been spending a lot of time in drydock at Keppel Shipyard in Singapore as the VLCC has become a platform for testing methods to improve fuel performance. The device consists of stator fins installed inside an eccentric duct positioned ahead of the propeller. The function of the fins is to generate a pre-swirl in the propeller inflow, thus reducing rotational losses. The duct is not itself new technology but Maersk is trying out something new. It has also added a boss cap fin to the Maersk Ingrid‘s propeller, which is also designed to reduce rotational losses. Maersk is hoping that the combined effect of the two devices will result in fuel savings of between 7% and 8% — which could

10

result in a significant cost saving given that VLCCs burn between 70 and 100 tons of bunkers per day depending on how fast they are steaming.‖ TRADEWINDS, 31 May 2013, p 28 Norway claims LNG fuelling crown – By Lucy Hine ―The spread of gas powered vessels is becoming more international and the country will need to look to its own supply chain to make bunkering an attractive proposition. It is 12 years since Norway saw the launch of its first LNG fuelled ship. Today, the country has claimed the lion‘s share of the world‘s LNG fuelled fleet with 35 such ships already operating. But it is unlikely to hold on to that title in the years ahead. Few would disagree that Norway has had something of a head start. Under the country‘s pioneering nitrogen oxide (NOx) fund, shipowners wanting to take the LNG route can get 10% to 20% of the cost of their vessels paid for by the state.‖ TRADEWINDS, 31 May 2013, p 77

Back to Contents

MARITIME SAFETY Deadly failures - By Tom Leander "Hong Kong‘s Marine Department has come in for intense and withering criticism in a report released this week from the inquiry into the ferry casualty off Lamma Island in October that claimed 39 lives. In response, the government has promised Marine Department reform. But has its response been strong enough? The charges against the department in the report by Mr Justice Michael Lunn and Benjamin Tang include a ―systemic‖ failure to ensure safety of small vessels navigating Hong Kong‘s waters. Criticisms included focus on several crucial areas in which proper inspection might have reduced the number of lives lost in the casualty. On the ferry Lamma IV, which sank quickly following the collision, seats fell on passengers as the vessel pitched, leaving many people trapped. Inspectors had failed to spot unsecured seats. The report said that the Marine Department also failed to spot the absence of a watertight door within the vessel that might have prevented it sinking so fast." LLOYD‘S LIST, 3 May 2013, p 2 Danish casualty probe reveals lifeboat inspection loophole – By Adam Corbett ―Some of the shortcomings of international regulation to tackle the persistent problem of lifeboat-drill accidents have been exposed by an investigation by Denmark into a fatality on the containership Anna Maersk. One seafarer was killed during a routine rescue-boat drill on the 8,272-teu vessel in March last year at the port of Kobe in Japan. A report by the Danish Maritime Accident Investigation Board (DMAIB) revealed that the drill, required once a month, had been conducted safely once but was then repeated to give an able seaman (AB), who was to die in the accident, the required experience in rescue-boat operation. Investigators found that it was a locking split pin attached to the swivel arrangement — a part of the lowering and release mechanism from the ship‘s stores crane — that had failed.‖ TRADEWINDS, 3 May 2013, p 31 Concerns raised about fixed CO2 extinguishing systems ―The Gard P&I Club is the latest organisation to raise concerns about the use of fixed CO2 fire-extinguishing systems and has issued a circular attempting to heighten awareness of what it called their ―inherent risks‖ and limitations.‖ FAIRPLAY SOLUTIONS, May 2013, FAIRPLAY SOLUTIONS, May 2013, pp 48-49 Incident reports highlight potential CO2 dangers ―In December 2012, the US Coast Guard issued a safety alert that highlighted some of the potential issues surrounding the use of fixed CO2 fire extinguishing systems. The alert focussed on the location of fire suppression system pressure switches aboard vessels. These switches sense the activation of the system and then secure the ventilation systems in the protected space. As highlighted by Gard, securing the ventilation is essential in extinguishing a fire with a CO2 system because it isolates a fire, minimises the introduction of oxygen to fuel it, and prevents the loss of fire suppression agents from the space. The coastguard said that recently a vessel with an installed fixed CO2 system suffered extensive damage due to a fire that started in the engine room. During the firefighting efforts, the crew reported that the engine room ventilation could not be secured. A post-casualty damage survey of the vessel revealed that the pressure switch used to secure the ventilation was located in the engine room. Regulations require that all controls and valves for the operation of the system to be outside the space protected, and notes they cannot be located in any space that might be cut off or made inaccessible in the event of fire in the protected spaces.‖ FAIRPLAY SOLUTIONS, May 2013, p 50 Chemical tanker data guidance ―A comprehensive information paper on the requirements for safety data sheets (SDS) for chemical tankers has been completed by Intertanko, the International Parcel Tankers Association, the Chemical Distribution Institute, the European Chemical Industry Council, and the Dangerous Goods Advisory Council. The paper brings together the regulatory requirements and guidance governing the provision of SDS and outlines the key information that they should contain. It is intended as

11

a single point of reference for seafarers, owners and shippers. A safety data sheet conveys hazard information to anyone who may be involved in the preparation, handling, use, and/or carriage of substances or mixtures that may be hazardous.‖ FAIRPLAY SOLUTIONS, May 2013, p 8 Industry weighs in on towing – By John Gallagher ―US safety regime may raise costs for shipowners. Six years into developing a safety inspection regime for towing vessels and the US government could still be more than a year away from actually promulgating rules – and those rules are likely to increase costs for shipowners. The timeframe is based on estimates by industry experts and government insiders, who point out that the US Coast Guard (USCG), the agency tasked with developing and implementing the rules, has no control over the other bureaucrats who have to sign off the regulations.‖ FAIRPLAY, 9 May 2013, p 24 Better safety and efficiency require greater transparency - By Hal Brown "Transparency and information sharing needs to be greatly improved to enhance efficiency and safety in the shipping industry, industry experts told the Lloyd‘s List Summit. ―There‘s a long way to go,‖ said RightShip chief executive Warwick Norman. There are still too many substandard vessels operating on the water, despite vetting procedures, the summit audience was told. Industry players are often concerned over legal barriers to sharing information on a vessel. ―When it comes to transparency, everyone hides,‖ said DP World group chief executive Mohammed Sharaf. ―Everyone talks to each other once in a while but no one is willing to share information.‖" LLOYD‘S LIST, 13 May 2013, p 7 Strict vetting standards may come at a price - By Hal Brown "A row broke out at the Lloyd‘s List Summit, with some saying quality shipowners are being ―squeezed to death‖, opening the way for substandard vessels to fill the gap. Other experts, however, said vetting of tankers and using benchmarking indices is an opportunity to raise the bar, ensuring that only quality shipping is used to transport oil, products and chemicals around the world. However, Intertanko said the current weak shipping market means high-quality owners face going to the wall. The oil, however, still needs to be shipped, paving the way for lower-quality tankers." LLOYD‘S LIST, 14 May 2013, p 5 Ageing Ukrainian fleet fears raised ―Ukrainian seafarers have no choice but to sail on dangerous vessels due to the age of the national fleet, according to an industry veteran. Shipmaster Yuri Beluga, the former head of the Black Sea Sailors Trade Union , told SAS that seafarers undertook voyages at their own risk, but had no other option than to sail on such vessels.‖ SAFETY AT SEA, June 2013, p 10 Asbestos survey accreditation puzzles UK industry – By Girija Shettar ―Lloyd‘s Register has urged caution as questions hang over new asbestos accreditation. The potentially fatal silicate mineral asbestos is banned in many countries for use in buildings, but its frequent appearance in ship surveys is a source of serious long-term concern for ship workers and owners. Current IMO guidelines on asbestos are considered insufficient and are being amended.‖ FAIRPLAY, 23 May 2013, pp 34-35 Potentially 'catastrophic' fire puts ro-ro safety centre stage – By Adam Corbett ―Concern over the safety record of ro-ro ships has grown after it emerged that the Atlantic Cartier, which caught fire in the Port of Hamburg earlier this month, was carrying a dangerous cargo that could have caused a ―catastrophe‖, according to local residents. Hamburg authorities confirmed this week that Atlantic Container Lines (ACL)‘s 3,372-lane-metre ro-ro containership (conro) Atlantic Cartier was carrying a cargo of the radioactive substance uranium hexafluoride. Around nine tonnes of the product was on board destined for a uranium enrichment facility in Lingen, Germany. The product has been routinely carried on conro ships into Hamburg port in the past, according to local sources. It took a day for the fire to be brought under control, during which time the hazardous cargo containers were removed. Green Party spokesperson Anjes Tjarks said: ―Hamburg just managed to scrape past a catastrophe.‖ The recent fire safety record of ro-ros has been poor, a fact that will add to the questions over why the Atlantic Cartier was chosen to carry such a high risk cargo.‖ TRADEWINDS, 24 May 2013, p 31 Norwegian accident investigators slam Hurtigruten’s safety culture - By Craig Eason "An accident investigation into the fatal fire on board a Norwegian cruise ferry in 2011 has heavily criticised shipowner Hurtigruten and called for a review of fixed CO2 firefighting systems. The cruise ferry Nordlys caught fire as it approached Ålesund in September last year. Two crew died and two were seriously injured. All 207 passengers were safely evacuated from the vessel, which had 55 crew on board; nine, including two cadets, were engineers, and the two dead men were engine staff. The report by the Norwegian Maritime Accident Investigator blamed the fire on poor vessel maintenance and training and while Hurtigruten has responded to much of the report‘s content it does raise questions about the application of the International Safety Management code. The report highlighted that although the operator had a validated ISM code on paper, there were serious questions over its ability to put it into practice." LLOYD‘S LIST, 29 May 2013, p 7

12

Safety report ―The report into the capsizing of the Costa Concordia was, rightly, sent to the IMO before it went on general release. Maritime safety experts will have had a pretty good idea of what the Italians were proposing well ahead of the final delivery, so there should be little surprise. This is a maritime safety report, focusing on flooding, capsizing, and how to prevent recurrence. However, there‘s another report yet to be written on how this incident evolved over years of bad practice.‖ p 5 Read More Africa‘s maritime structural transformation ―Shipping gets priority as the Programme for Infrastructure Development, now approved by all of Africa‘s heads of state, gets under way, Savahna Nightingale reports.‖ FAIRPLAY, 30 May 2013, pp 6-7 Italian report set to spark cruise reform – By Adam Corbett ―The official response to the ‗Costa Concordia‘ tragedy flags up how the cruiseship industry needs to raise its game to ensure such an incident does not happen again. Italy‘s release of the long awaited final safety report on the loss of the Costa Concordia was overshadowed by the news, on the same day, that Francesco Schettino, the ship‘s master, is to face manslaughter charges related to the January 2012 tragedy. However, although at times let down by awkward and poor use of English, the Ministry of Transport and Infrastructure findings are set not only to provide the basis for an upgrade in construction standards for cruiseships based on improved survivability but also prompt changes in emergency procedures and crew training. That process is likely to begin at the forthcoming Maritime Safety Committee meeting at the International Maritime Organisation (IMO) next month.‖ TRADEWINDS, 31 May 2013, p 32 Focus on dry bulk code awareness in campaign to combat casualties – By Adam Corbett ―A pocket safety guide for seafarers is the latest step by the industry to tackle losses linked to the liquefaction of dry bulk cargoes. When the UK Club, Intercargo and Lloyd‘s Register (LR) launched a seafarers‘ pocketbook safety guide to carrying dry bulk loads last week, it was probably the least significant development in an industry wide campaign to end cargo related losses. Because, as UK Club loss prevention head Karl Lumbers admits, claims figures show dry bulk cargo related casualties tend to be caused more by shoreside rather than shipboard failings. ―It is the first time we have ever seen this in our claims figures,‖ he said. Nonetheless, the intention of the pocketbook, ―Carrying Dry Bulk Cargoes Safely‖, is to familiarise crew with the details of the International Maritime Solid Bulk Cargo (IMSBC) code outlining the safe carriage requirements for cargoes.‖ TRADEWINDS, 31 May 2013, p 44

Back to Contents

MARITIME SECURITY AND PIRACY Kidnappings in the Gulf of Guinea are ‘not linked to terrorism’ - By Liz McMahon "The shift in focus to kidnapping and ransom operations in the Gulf of Guinea has re-ignited the debate over whether regional maritime piracy is connected to terrorism. If a connection is proved between piracy in the Gulf of Guinea and regional insurgency, it will present a major problem for kidnap and ransom insurance. Insurance broker Marsh said: ―Many countries, including the US and the members of the European Union, specifically prohibit any payment of funds that could be used to fund terrorism." LLOYD‘S LIST, 2 May 2013, p 4 Attack highlights piracy threat to commercial shipping - By Liz McMahon "The kidnap of five crew in the Gulf of Guinea from the containership City of Xiamen highlights the increasing threat to commercial shipping in the region from pirate attacks. Observers have noted a shifting pattern of attacks in the Gulf of Guinea this year. Although regional attacks initially targeted ships‘ oil cargoes, this year has seen a rise in kidnappings for ransom of crew. Initially, attacks on maritime interests by the Movement for the Emancipation of the Niger Delta and other militant groups targeted tankers, offshore platforms and other craft serving the energy industry. However, commercial traffic targeted in the past six months ranges from a fishing vessel to containerships." LLOYD‘S LIST, 2 May 2013, p 4 Owners and security firms slam bid to class armed guards as seafarers - By Liz McMahon "Shipowners and private maritime security companies have voiced concern over moves by the Maritime Labour Convention to class armed guards as seafarers, questioning how this will work in practice. When the MLC comes into force in August, security personnel deployed on ships could be classed as seafarers if they meet the definition outlined in Article II.1 of the convention. If the matter is unclear, it may be left to the individual flag administration to decide whether it considers the guards to be seafarers. Industry watchers have urged flag administrations making that call to consider factors such as duration of the guards‘ stay on board, frequency of work on board, the location of his or her principal place of work, the purpose of that work and protection cover for labour and social conditions. The Security Association for the Maritime Industry said shipowners and security firms were united in uncertainty about the practical effect of the convention. It highlighted particular concern that flag states are already divided over how to designate security personnel." LLOYD‘S LIST, 2 May 2013, p 5

13

Leopard crew freed after 28-month hostage ordeal - By Liz McMahon "Shipcraft has paid ―considerable millions‖ to release six crew of Danish vessel Leopard taken hostage by Somali pirates more than two years ago. Shipcraft is the vessel‘s third-party operator and managing director Claus Bech said the firm is ―a very small company and the pirates‘ expectations to the ransom have been completely unrealistic‖. Mr Bech said the firm could not reveal the size of the ransom as that might affect future hostage negotiations. However he said: ―Shipcraft has paid considerable millions, substantially more than previous kidnappings where Danish citizens have been involved‖." LLOYD‘S LIST, 2 May 2013, p 5 Security giant backs human rights ―Security company G4S, one the largest private employers in the world and a key security solutions player in the ports sector, has launched a policy to safeguard the human rights of its employees. The policy, which is in line with the UN Guiding Principles on Business and Human Rights – 2011, aims to identify risky operating practices and support the communities in which the company operates, it said. The policy has been introduced in three phases. The final phase – implementation – will start this year and the company said it would be supported by ―company-wide communications, awareness and training programmes‖. The initiative is part of G4S‘s corporate social responsibility drive and will be communicated to its more than 620,000 employees who work in 125 countries and ―in some very challenging environments‖.‖ FAIRPLAY, 2 May 2013, p 32 Defining terrorists "The question of whether there is a link between piracy and terrorism has loomed over insurers ever since the maritime kidnap and ransom market really took off. If it was possible to prove an irrefutable link owners and underwriters could find themselves at risk of prosecution. This is due to the fact that many countries, including the US and members of the European Union, prohibit payments that could be used to fund terrorism. In the Gulf of Aden there were suggestions of a connection between pirates and al-Shabbab but a tangible link was not made. The cynical among us could argue that it has been in the best interests of far too many people to deny this link as piracy has been a rather lucrative business for some." LLOYD‘S LIST, 3 May 2013, p 2 Danish film brings piracy hijacking drama to life ―A compelling film that shows how it really is when a ship‘s crew are held hostage by Somali pirates is about to go on general release. ―A Hijacking‖ comes from Danish director Tobias Lindholm, who has written scripts for the cult Danish TV drama ―Borgen‖, and stars two of the main actors from that series. It hits UK cinema screens on 10 May, followed by a US release in June and a number of other European countries in July. The film has already played in Scandinavia and there are plans for it to be shown in Asia. The film follows a 127-day drama played out in the Indian Ocean on the general cargoship Rozen and back at the owner‘s head office where company chief executive Peter Ludvigsen insists on heading up the ransom negotiations against professional advice. Not only was the Rozen actually hijacked by Somali pirates in 2007 but some of its crew are also in the film, which was shot on the cramped vessel off the coast of Somalia.‖ TRADEWINDS, 3 May 2013, p 42 Piracy: the anchorage challenge ―The arrival of private security companies aboard vessels moving through the dangerous waters of the Gulf of Aden, the Arabian Sea and the Indian Ocean has had a decisive effect on the level of piracy in the region. But while Somali piracy may now be in terminal decline, Dr Dave Sloggett told P&H, the shipping industry is turning its attention to the perennial problem of piracy, inside territorial waters.‖ PORTS AND HARBORS, May/June 2013, p 38 US targets high-risk vessels for security upgrades ―Vessel owners transporting certain high-risk cargoes will be required to purchase electronic readers for their crew‘s security card credentials, the US government has proposed. A long-awaited notice of the proposed rule from the US Coast Guard (USCG), released in March, would require vessels transporting those cargoes in bulk – as well as the terminals that handle them – to purchase the readers to check fingerprints embedded on crew ID cards prior to them being granted unescorted access to secure areas at US ports.‖ PORTS AND HARBORS, May/June 2013, p 39 Shipowners must still vet accredited armed guards - By Liz McMahon "Hiring a private maritime security company with International Organisation for Standardisation accreditation will not obviate shipowners‘ responsibility to carry out thorough due diligence, according to British vetting company Gray Page. ―Stakeholders such as the flag states and P&I clubs are perfectly justified in expecting PMSCs to be checked and vetted by shipowners, outside the ISO 28007 process,‖ it said. It is unclear exactly how different nations will view ISO PAS 28007 , as their opinions are already divided, according to Security Association for the Maritime Industry chief executive Peter Cook. He hoped that ISO PAS 28007 would set the foundation level for all PMSCs and that additional national requirements that were ―bolted on‖ to this would not be for overly onerous." LLOYD‘S LIST, 8 May 2013, p 2 Southeast Asian piracy drops but resurgence is still possible - By Liz McMahon "Pirate activity in Southeast Asia has decreased in the first quarter of this year, in comparison with the like period for the

14

last two years, according to the latest report from the Regional Co-operation Agreement on Combating Piracy and Armed Robbery against Ships in Asia. A total of 28 incidents, comprising 27 actual incidents and one attempt, were reported in Asia in the first-quarter, according to Recaap. Of the 27 actual incidents, five were classed as moderately significant, eight were deemed lesser incidents and 14 were petty theft, said the report. No very significant incidents were reported during the first quarter of 2013. In the first quarter 2011 there were 38 actual and 10 attempted attacks. In first quarter 2012 there were 37 actual and three attempted attacks, according to Recaap. Improvement was most apparent in the South Asian region, particularly the port and anchorages in Bangladesh, said Recaap. In Southeast Asia, the improvement was most apparent in the Straits of Malacca and Singapore, with no incidents reported there during January-March 2013. However, there had been an increase in the number of incidents at some ports and anchorages, with relatively more incidents occurring during daylight hours." LLOYD‘S LIST, 8 May 2013, p 2 Asian piracy success rate low but not to be ignored – By Adam Corbett ―Maritime intelligence and investigation outfit Gray Page is playing down the recent rise in criminal activity and attempted oil-cargo thefts against ships in Southeast Asia. In a paper released by the Oxford-based company, it suggests recent attacks are more likely to be the work of opportunistic criminals. Gray Page said in its report: ―While a slight rise in piracy might — on the surface — look like the rumblings of more organised criminal operations in Southeast Asia, the success rate has been low, throwing considerable doubt over the capability of perpetrators in the region.‖‖ TRADEWINDS, 10 May 2013, p 31 Maritime security industry needs more support - By Liz McMahon "The UK government has failed to give adequate support to the fledgling private maritime security industry and has yet to ratify guidelines for the impending International Organisation for Standardisation accreditation, according to Protection Vessels International managing director Barry Roche. Since private maritime security companies were in effect legalised by Prime Minister David Cameron in October 2011, the UK has dominated the industry. A majority of PMSCs are either based in the UK or have UK connections but are registered elsewhere due to legislative restrictions, on firearms training, for example. Speaking at the Security in Complex Environment Group‘s annual conference Enhancing Security in Complex Environments held in London last week, Mr Roche said: ―I have been concerned by the lack of support from the UK government in terms of legislation, training, diplomacy and operations." LLOYD‘S LIST, 14 May 2013, p 2 Bangladesh-based pirates pose a growing threat to shipping - By Liz McMahon "Bangladeshi pirates will become a threat to global shipping in the next two years, according to C-Level Maritime Risks founder Michael Frodl. The Bay of Bengal has long been known as a hot spot for smash-and-grab style robberies, but such attacks have been localised and the area has not been seen as a major threat to shipping for two good reasons. First, no commercial shipping channels run through the bay for pirates to exploit and second, the nearest port is Chittagong, which is chiefly home to a large breaking yard and rarely attracts high-value vessels or cargoes. Nevertheless, Mr Frodl argues that piracy in Somalia and Nigeria showed that localised preying on local fishermen or merchant vessels coming into port, if left unpunished by local authorities, graduates into attacks against shipping as ambitious and effective gangs seek to corner a market out of reach to amateur rivals. ―The most ambitious pirates just go out further, and take crazier risks that the locals won‘t dare to take, and those risks are accompanied by out of proportion return on investments,‖ he said. ―Somalia and now Nigeria teach us that — and Bangladesh will show us that too, and soon.‖" LLOYD‘S LIST, 17 May 2013, p 3 Fishing boats bear brunt of attacks "Bangladesh piracy is an ongoing issue, the pirates are operating in the coastal rivers and bays and attack fishing boats. It has been an continuing problem since at least 1971, but there has been massive growth over the last few year. In 2011 and 2012, the statistics are frightening: •More than 1,000 fishing vessels were attacked; •More than 3,000 fishermen were kidnapped and 45 were killed; •Ransoms amounted to over $1.3m; •This year alone there have been a number of murders, including 30 fishermen killed in one incident in early April; •No evidence of pirates specifically targeting vessels, more a case they loiter in an area and strike at fishing vessels that come into view." LLOYD‘S LIST, 17 May 2013, p 3 Hammond denies failure to support private maritime security firms - By Liz McMahon "UK shipping minister Stephen Hammond has disputed claims that the government has failed to give adequate support to the fledgling private maritime security industry and has yet to ratify guidelines for the impending International Organisation for Standardisation accreditation. Both Mr Hammond and PVI chief executive Barry Roche spoke at the Security in Complex Environments annual conference held in London last week. Lloyd‘s List reported Mr Roche‘s assertion that the maritime security industry needed more support from the UK government. In a letter to Lloyd‘s List, Mr Hammond said: ―This could not be further from the truth — the UK government has in fact offered considerable support to the industry.‖ One of the most pressing problems for private maritime security companies is the fact that floating armouries operate in a legal grey area, leading the industry to demand clarification. Mr Hammond said: ―We are working towards a

15

resolution on the use of floating armouries which has presented a number of complex jurisdictional and security challenges." LLOYD‘S LIST, 17 May 2013, p 8 Another day, another accreditation for our industry - By Russ Armstrong "The PMSC sector has been quick to self-regulate and individual firms promote quality benchmarks and standards. The shipping community continues to demand more from this most controversial aspect of the supply chain and careful due diligence has become the watchword for the armed deterrent. But this adherence still causes concern as most of the more established PMSCs now comply. How does a shipowner distinguish one security provider from another if they all share the same badges of excellence? Step forth the International Organisation for Standards, which has developed the publicly available specification: ISO PAS 28007:2012. Endorsed by the International Maritime Organization, it has been introduced to ―instill confidence and ensure the safety, efficiency and reliability of this solution‖ and is further backed by other international corporations, Interpol, the European Commission and the contact group first established by United Nations Security Council Resolution 1851. Truly international, it is hoped that the same standards expected and audited in the UK will be upheld in other countries to a similarly high standard of certification; the key for ISO is to ensure that this happens." LLOYD‘S LIST, 17 May 2013, p 8 Accreditation of armed guards certification bodies begins - By Liz McMahon "The pilot scheme for the International Organisation for Standardisation‘s accreditation for armed guards is under way. The UK Accreditation Service will begin assessing the certification bodies in June, aiming to complete the pilot project by year-end. UKAS is the sole national organisation recognised by the UK government to assess evaluating organisations, such as certification bodies, against international standards. Most private maritime security companies are based in the UK or have a UK connection. However, it is expected that other flag states will appoint a similar national body." LLOYD‘S LIST, 17 May 2013, p 9

Piracy trends drop in first quarter ―Global piracy and armed robbery incidents fell during the first three months of the year compared to the same period in 2012, the International Maritime Bureau (IMB) quarterly report showed. There were 66 attacks from January to the end of March, compared with 102 attacks in the corresponding period in 2012.‖ SAFETY AT SEA, June 2013, p 7 Gulf of Guinea piracy at ‘stalemate’ ―The battle between pirates and Nigeria‘s navy has reached stalemate, a maritime security analyst has told SAS. There have been 14 pirate attacks this year in the Gulf of Guinea. of which 12 have occurred off the Nigerian coastline in its exclusive economic zone (EEZ); an area of 286,000km

2. While suspicions remain that the overall level of piracy is underreported, figures

generated by the International Maritime Bureau show that the level of pirate activity in the Gulf of Guinea is barely changing. ―A stalemate exists, where the pirates seem able to continue hijacking vessels with the Nigerian Navy seemingly unable to halt further attacks,‖ said maritime security analyst Dave Sloggett.‖ SAFETY AT SEA, June 2013, p 16 France could allow ship guards by summer ―Legislation that will allow French ships to have armed guards on board could be passed within the next couple of months, according to the country‘s transport minister, Frederic Cuvillier. He told shipowners at the Armateurs de France (AdF) annual reception in early April that he was in favour of their request to be able to use armed guards and that it would be addressed by defence legislation due to go through parliament shortly.‖ SAFETY AT SEA, June 2013, p 17 Germany passes maritime security accreditation laws - By Liz McMahon "Firms must pay a minimum $10,000 fee under new national rules. Germany is the latest flag state to adopt a national licensing procedure for private maritime security companies. The Federal Office of Economics and Export Control will enforce the licensing in co-operation with the country‘s police. Marine Risk and Quality, the firm that has the mandate to prepare and assist PMSCs to apply for a licence, says companies must ensure they have suitable and reliable staff. From December 1, 2013, the licensing requirement applies to all security companies with headquarters in Germany and to foreign providers carrying out security duties on Germany-flagged oceangoing ships. Licensing applications can be submitted as soon as the new regulations come into force." LLOYD‘S LIST, 20 May 2013, p 2 Estonia and Slovenia pull out of Atalanta piracy operation - By Liz McMahon "Estonia and Slovenia are to end their participation in the European Union anti-piracy operation Atalanta, despite a renewed warning from EU Navfor that Somali pirates are still determined to get out to sea and will attack if presented with an easy target. The Estonian navy has participated in Operation Atalanta since 2010. Five 10-member Estonian ship protection crews have taken part in the operation, serving on Germany and France-flagged ships along the coast of Somalia. Local reports indicate Estonia will withdraw support this month. Slovenia, which has a lesser presence, will pull out at the end of June. International Chamber of Shipping secretary-general Peter Hinchliffe said the threat of piracy remains and urged shipowners and flag states not to become less vigilant. ―The report that these two countries are withdrawing support, if true,

16

is to be regretted, but the EU Navfor mandate is set until the end of 2014 and therefore we do not expect overall force levels to be unduly impacted.‖" LLOYD‘S LIST, 22 May 2013, p 3 Typhon rethinks its business model - By Liz McMahon "Reduced Somali threat sees private security sector diversify with new focus on West Africa business opportunities. Glencore-backed private security company Typhon has shelved its plans to launch a close-vessel protection service as numbers of attacks in the Gulf of Aden by pirates continue to dwindle. Having struggled to secure funding in Europe, the firm is reconsidering its original plans born out of the Somali threat to diversify beyond counterpiracy. Dwindling numbers of attacks off Somalia and an increase in incidents off West Africa have forced the lucrative maritime security sector to reconsider its business models, having carved out a precarious niche in offering protection to shipping. Typhon has also seen a management shake-up with former chief executive Anthony Sharp stepping aside to take an advisory role on the board and replaced by investment banker Penny Freer. The shake-up comes five weeks before the nascent operation is due to open its new London-based headquarters in St James." LLOYD‘S LIST, 23 May 2013, p 1 Green light for reasonable force ―The 100 Series Rules for the Use of Force have finally been published after a 20-month consultation process. They follow an earlier submission to the IMO for MSC 92 in April, and ISO TC8 prior to that. David Hammond, author of the 100 Series Rules, says this is the first time a commercial model set of rules for the use of force has been released and is fully applicable to the maritime industry. ―These rules are not simply industry guidance, of which there is much. They go one step further than current guidance, although they remain complementary to the likes of BIMCO‘s GUARDCON,‖ said Hammond, speaking at the Shipping Professional Network London briefing hosted by the Shipping and Marine Finance team at Investec Bank last week. ―It is believed that it will go some way further to weeding out unscrupulous PMSCs [private maritime security companies] that are unprofessional and unlawful in the conduct of their business,‖ he told Fairplay.‖ FAIRPLAY, 23 May 2013, p 37 Gulf of Aden pirates move towards unpredictable attacks - By Liz McMahon "In the next six months the offshore threats to maritime assets in the Gulf of Aden, whether calculated or opportunistic, will operate outside the normal modus operandi, according to Ambrey Risk Intelligence. The private maritime security company said this unpredictability is disarming to public and private bodies that rely on trend analysis to inform violent risk forecasts. ―As demonstrated by recent reports, the benchmark for ratifying incidents is neither integrated nor always time sensitive,‖ Ambrey said. Ambrey said a suspected pirate action group armed with a shoulder-mounted, rocket-propelled grenade approached a Panama-flagged vessel in Bab el-Mandeb strait on May 18. The PMSC said the master ordered the armed team on board to respond with force, which deterred the pirates from any further attempts to target the bulk carrier. Ambrey said this incident was the third advance in as many days and one of at least 15 in the region in the five months to May." LLOYD‘S LIST, 28 May 2013, p 2 Two-hour assault highlights confidence of West African pirates - By Liz McMahon "A recent attack on a chemical tanker anchored at Lomé is highly unusual, the prolonged assault indicating pirates‘ growing confidence, according to Mast Security. The incident began on May 17 at 0230 hrs, when 11 pirates approached the vessel in an unlit boat. Mast said the crew raised an alarm, activated the firehoses and contacted the Togolese navy. Two pirates tried and failed to scale the anchor chain. However, the attackers returned to the tanker half an hour later with more men, this time armed with grappling hooks, Mast said. The crew noted that even though the fire hoses threatened to flood the pirate boat, the pirates continued to try to board the tanker for more than an hour, before giving up at around 0420 hrs, Mast reported. The Togolese navy arrived on the scene at 0500 hrs. Mast said: ―The prolonged nature of this attack is unusual. Under most circumstances pirates will break off an attack once it becomes clear that boarding attempts have failed, though it is not unheard of for the attackers to return later in the evening." LLOYD‘S LIST, 28 May 2013, p 2 Tackling piracy - By Liz McMahon "The rise and fall of Somali piracy has taken up many newspaper column inches. The shipping industry is acutely aware that the dominant school of thought believes the downturn is due to the tripartite approach of international navies, armed guards and best management practices by shipowners. But although these short-term remedies have had the most dramatic impact, much has also been said about the need for longer-term solutions on shore. With half of all Somalis living on less than $1 per day, it is painfully clear that they need options other than piracy that can offer a meaningful livelihood and provide for families in the long term." LLOYD‘S LIST, 29 May 2013, p 2 Somalia needs land-based reforms to safeguard shipping - By Rory Lamrock and Rachel Squire "More than a year has passed since the crude oil tanker Smyrni became the last commercial vessel to be hijacked off Somalia. Since then, Somali piracy has been on a steep downward trajectory. The combined efforts of the maritime industry and international navies have been pivotal in reducing the number of attacks. Most incidents reported over the past six months have been suspicious approaches or simply curious fishermen straying too close to a commercial vessel. The reduction has been caused by

17

addressing security standards at sea, not fixing the land-based root causes of piracy. Ships are more difficult to board, naval patrols harder to dodge, and serious attempts at hijacking are now relatively rare. However, deep-seated economic and security issues plaguing Somalia may run the risk of destabilising these efforts in the long term. Half of all Somalis live on less than $1 a day and will continue to suffer extreme poverty for the foreseeable future. As an alternative, piracy offers a well-established source of criminal revenue for those wishing to collect unprecedented cash payouts." LLOYD‘S LIST, 29 May 2013, p 5 Pirates free Hansa Marburg crew - By Liz McMahon "The four seafarers kidnapped from the boxship Hansa Marburg have been released after 31 days in captivity, but it is unclear whether a ransom has been paid for their release. Ship manager Leonhardt & Blumberg, operator of the 2007-built, 1,740 teu vessel, said it would not divulge details concerning the release to avoid encouraging similar criminal acts. According to Lloyd‘s List Intelligence, the ship‘s P&I insurance is covered by Steamship Mutual Underwriting Association. The Hamburg firm said the four seafarers — citizens of Ukraine, Russia and Kiribati who were taken from the vessel by armed men 130 miles southwest of Malabo, Equatorial Guinea — were ―safe and in good spirits‖. The seafarers were taken hostage when the vessel was attacked by criminal gangs in the Gulf of Guinea on April 22." LLOYD‘S LIST, 29 May 2013, p 5 Lloyd’s Market Association reviews proposed rules for the use of force - By Liz McMahon "The Lloyd‘s Market Association‘s Joint War Committee will review proposed international standard the 100 Series rules for the use of force at its next meeting, despite insurance industry concerns about its potential liability problems. At Lloyd‘s Old Library yesterday, 9 Bed Row Chambers barrister and 100 Series author David Hammond appealed to underwriters to support the proposed rules, which he hopes will be adopted as an international standard. It has taken 22 months to get to this stage with the 100 Series. Mr Hammond said this was ironic given that it is a nine-page document and four rules, but added that the delay reflected the vital need for stakeholder input. The document has been submitted to the International Organisation for Standardisation and is on the agenda when the International Maritime Organization‘s 92nd maritime safety committee meets next month." LLOYD‘S LIST, 30 May 2013, p 4 Seafarers kidnapped from Nigerian chemical tanker - By Liz McMahon "Seven Pakistani crew members have been kidnapped from Nigerian chemical tanker Matrix 1 in the latest signal that West African pirates are moving from cargo thefts into kidnap for ransom, says private maritime security company chief Andrew Varney. The 1992-built, 5,800 dwt vessel was hijacked at 0200 hrs on May 25 42 miles off Nigeria‘s Akwa Ibom State, according to an incident report from Oceanus Live. Of 17 crew on board, Oceanus Live reported seven Pakistanis kidnapped. It is understood that the vessel and its remaining crew have been released. Mr Varney, managing director of Port 2 Port, said Matrix 1 had a very low freeboard, at approximately 2.5 m, and a service speed of 12.5 knots, making it vulnerable to being boarded." LLOYD‘S LIST, 30 May 2013, p 4 Rules for force "The market has, however, experienced a sea change in the case of armed guards and now a hefty discount for their employment in high-risk areas is an accepted component of a war-risk policy. The issues surrounding liability and the use of force remain, but have yet to really be tested, in a commercial sense. One of the biggest foreseen problems is that of competing jurisdictions and the fallout from this can be seen to a certain extent in the ongoing Enrica Lexie saga. This is perhaps the area that makes insurers most uneasy, which is not unreasonable. However, it could be argued that overlooking the 100 Series rules for the use of force as an unrealistic and naive document is really a case of the market cutting its nose off to spite its face." LLOYD‘S LIST, 31 May 2013, p 2 States unite on piracy – By Savahna Nightingale ―Piracy in west Africa could finally be getting the attention it needs. The implementation of a new code of conduct relating to the prevention and repression of piracy, armed robbery against ships, and illicit maritime activity in west and central Africa is being taken seriously by the heads of states in the region – the level where action is needed. The code is expected to be opened for signatures at the meeting of the heads of state and government of central and west African states, to be held in Yaoundé, Cameroon, next month.‖ FAIRPLAY, 30 May 2013, p 26 Gulf of Guinea needs tailored solutions ―West African piracy is a mounting problem, but private security providers can be frustrated by local controls, according to Solace Global Maritime. Over the past few years, the Gulf of Guinea has become one of the most dangerous regions of the world for maritime and offshore operations. An area rich in natural resources, including recent discoveries of oil and hydrocarbon deposits, the region‘s security problems are claiming increased international and political interest. PMSCs are unable to operate in the Gulf of Guinea with their own firearms. They tend to provide an advisory and support function, while the final use of force, if required, is provided by host nation troops. This creates a number of concerns for both the vessel owner/operator and the PMSC in terms of legality, jurisdiction, reliability, and level of provision.‖ FAIRPLAY, 30 May 2013, p 27

18

Back to Contents

NAVIGATION AND COMMUNICATIONS Carriers slam Suez Canal toll hike - By Mike Wackett "Operators of containerships transiting the Suez Canal must now pay an extra 2% to cover a rise in toll fees. The May 1 rise in the tolls for all ships traversing the 192 km waterway has led shipping bodies to complain that the increase is unacceptable in a downturn, at a time when ocean freight rates are under renewed pressure. Some have warned that the move could see owners route their ships via the Cape of Good Hope, especially as bunker prices are now falling. The London-based International Chamber of Shipping has been scathing of the increased fees, as reported by Containerisation International when the new rates were announced in May. ICS secretary-general Peter Hinchliffe said at the time: ―This is not the time for the [Suez Canal Authority] to be announcing increases, which for some trades seem very dramatic indeed, and which many shipowners will find impossible to pass on to their customers.‖" LLOYD‘S LIST, 3 May 2013, p 4 Singapore sound alert on collisions ―Singapore authorities have issued a ‗safe navigation‘ warning to all ships calling at the port, following a spate of collisions in March. The Maritime and Port Authority of Singapore reminded masters and watchkeeping officers through a circular to ‗fully comply‘ with the International Regulations for Preventing Collisions at Sea 1972 to ensure safety of navigation.‖ PORTS AND HARBORS, May/June 2013, p 38 Green light for MONALISA 20.0 ―A pioneering e-navigation project has been granted $31M of new funding by the European Commission. MONALISA 2.0 (Motorways and Electronic Navigation by Intelligence at Sea 2.0) will run until 2015 and has been set up by the Swedish Maritime Administration (SMA) in conjunction with a consortium of public, private and academic partners from across the European Union to develop and test new technologies intended to improve vessel safety and scheduling. The project will build on results gathered during MONALISA 1.0, which ran from 2010-12.‖ PORTS AND HARBORS, May/June 2013, p 39 COLREGs - education and examination – By Kavin Vallance ―All collisions should be avoidable if everyone follows the Colregs. But an increasing number of serious incidents suggests the way we teach them needs a rethink.‖ SEAWAYS, May 2013, p 4 Chinese Public Transport Goes BeiDou ―Information technology authorities in Beijing have said the city‘s buses and taxis will be equipped to use the BeiDou satellite navigation system by the end of 2013. ‗BDS‘ at present has 16 satellites which were launched from October 2000 to 2012, and by the end of 2012, the system had over 130,000 military and civilian users. A full thirty satellites will be needed before BDS can provide complete global coverage.‖ NAVIGATION NEWS, May/June 2013, p 4 Japan Expands QZSS ―The Japanese government has ordered three new navigation satellites to expand the country‘s GPS augmentation programme. The three new satellites will join Japan‘s first quasi-zenith satellite, launched in September 2010, forming a four-satellite constellation. GPS signals are currently only available around 90 percent of the time in Japan, but satellite navigation will be possible 99.8 percent of the time with the QZSS satellites, Japanese officials claim.‖ NAVIGATION NEWS, May/June 2013, p 5 First Galileo Fix Achieved – A Useful Constellation is Born ―The European Space Agency (ESA) has achieved the very first determination of a ground location using the four Galileo satellites currently in orbit. The ESA claims that this fundamental step confirms that the Galileo system works as planned. A minimum of four satellites is required for a 3-D position. The first two satellites were launched in October 2011, with the second pair in October 2012. At the moment, the four satellites are visible together for a maximum of two to three hours daily, but this frequency will increase as more satellites join the constellation, with initial operational capability (IOC) – with 18 satellites – due by the end of 2014.‖ NAVIGATION NEWS, May/June 2013, p 5 Thailand becomes first Non-Chinese client for BeiDou ―Thailand has become the first overseas user of the Chinese satellite navigation system BeiDou. A 2 billion yuan agreement to promote the use of BeiDou in Thailand‘ public sector was signed in Bangkok in early April. The system will initially be used in disaster relief, power distribution and transport, among other areas. BeiDou is expected to provide global service by 2020, with five geostationary orbit satellites and 30 non-geostationary orbit satellites.‖ NAVIGATION NEWS, May/June 2013, p 6 Look north "Six nations, including China, were granted observer status to the Arctic Council on Wednesday, a move that underscores the increasing importance of the region as a global resource for energy and transport. The nations with authority in the council are Russia, Canada, the US and the

19

Scandinavian nations. Observers are those with a strong interest in Arctic energy development or transport, with China joined by India, Italy, Japan and South Korea. Although they do not have direct decision-making authority, they attend meetings, which allows them some influence. They are expected to respect the sovereignty of nations bordering the Arctic region but also to contribute to the work of the full members." LLOYD‘S LIST, 20 May 2013, p 2 China at work to 'pry open the Arctic' – By Bob Rust ―China and other Asian powers looking to protect their global shipping interests have captured one strategic flag with their admission to permanent observer status at the Arctic Council. Diplomatic observers say China‘s diplomacy is in large part motivated by a desire for allies to stand up against Russian control of the Northeast Passage — or in Russia‘s official designation, the Northern Shipping Route (NSR) — and of natural resources. Foreign ministers of the Nordic countries voted late last month to grant a permanent guest pass to China, India, Italy, Japan, Singapore and South Korea — but not to the European Union (EU). China‘s keen interest in the increasingly feasible NSR, along with energy and mineral resources — and some would say military opportunities — had drawn it to demand a presence at meetings of the eight nation club of Arctic powers.‖ TRADEWINDS, 31 May 2013, p 30 Gaining an influence in Arctic state ―China mounted a correspondingly accelerated diplomatic campaign to win votes for its permanent observer status from a majority of ministers of the Arctic Council countries, which are Russia, Finland, Sweden, Norway, Denmark, Iceland, Canada and the US. Chinese media frankly characterised a recent free trade agreement with Iceland as a move by their country to ―pry open the door to the Arctic‖, and have even openly speculated about their government‘s ambitions to extend its military reach under the polar ice. Iceland president Olafur Ragnar Grimsson has, in fact, become a spokesman for letting China in on Arctic policy deliberations. However, all five Nordic countries had long signalled that they were sympathetic to China‘s interest, including Norway, despite China‘s diplomatic ongoing freeze out of that country over the 2010 Nobel Peace Prize. The US had taken a wait and see stance on Chinese permanent observer status and finally went along with the majority. Canada and Russia were the holdouts in preferring to keep the Arctic Council a closed club for the countries with territory above the Arctic Circle. Sino Russian rivalries have also played a part, despite co-operation on many fronts between the countries.‖ TRADEWINDS, 31 May 2013, p 31

Back to Contents

POLLUTION/ENVIRONMENT Canadians lambast US ballast-water rules – By Alex Binkley ―Looming US ballast-water treatment rules will threaten the economic viability of the Canadian Great Lakes fleet, the Canadian Shipowners Association (CSA) has warned. By next March, when the 2014 navigation season opens on the St Lawrence Seaway-Great Lakes route, crippling conditions will be imposed on the Canadian fleet by the US Environmental Protection Agency (EPA), according to CSA president Robert Lewis-Manning. The EPA Clean Water Act Vessel General Permit for incidental discharges, as previously reported by Fairplay, will enter force on 19 December 2013. The EPA rules ―threaten the commercial viability of our members‘ ships and the industries they serve‖, Lewis-Manning insisted. He pointed to a requirement for any ship built after December 2013 to be equipped with a ballast water treatment system. He maintained no systems had been proven to work in the cold freshwater of the Great Lakes. The US Coast Guard has identified nine ballast-water treatment systems that are acceptable under the new American regulations, but none works in freshwater, he said.‖ FAIRPLAY, 2 May 2013, p 32 Opinion: Shipping must have a Plan B if the 'Carbon Bubble' sticks – By Terry Macalister ―Deep measures by governments to wean us off fossil fuels are conspicuous by their absence, even as we are bombarded by apocalyptic warnings of climate change. What does that mean for the world‘s shipowners? Scratch your heads and think of how to survive if there‘s no longer much oil and gas to move from A to B.‖ TRADEWINDS, 3 May 2013, p 11 Options open in the low-sulphur outlook ―There are probably 100 different perspectives on how emissions regulations are supposed to develop, said Professor James Corbett who chaired the 34th International Bunker Conference held recently in Gothenburg. Unlike previous fuel changes in shipping, such as the switch from coal to oil, ―this is a fuel switch with more opportunities than a single alternative,‖ he said. As a percentage of world oil consumption, fuel oil has been declining. One solution proposed was a straight switch to distillates. However, more sophisticated engines capable of burning more kinds of oil, new technologies (scrubbers), and non-traditional fuels (LNG) are now competing as solutions for shipowners.‖ FAIRPLAY, 9 May 2013, p 13

20

Waste not, want not ―In January new MARPOL requirements for waste management onboard ships came into force, specifying that all onboard waste except food has to be collected or incinerated. Adding to the ever burgeoning administrative burden of ship operators, every vessel of 100gt or more or certified to carry fifteen people or more has had to ensure that its Garbage Management Plan complies with the new resolution. Plus ships of 400gt and above on voyages which fall under the jurisdiction of any other authorities must carry a Garbage Record Book.‖ SHIPPING WORLD AND SHIPBUILDER, May 2013, pp 42-43 Sniffing gas "One of the issues tucked into the list of environmental debates at the International Maritime Organization this week is how to measure a ship‘s emissions. It is part of the long drawn-out compromise over how shipping could eventually be lumbered with a market-based mechanism to curb the impact of greenhouse-gas emissions. Officially it is known as a measurement, report and verification system, a way to obtain a rolling picture of how much CO2 is emitted by shipping. There are four ways this can be done: bunker delivery note reporting, flow meters of fuel into the bunker tanks or into the engines, or direct measurement of the emissions out of the exhaust. There is, however, a very limited way this information will be used. While it can indeed give a more accurate way to see the global industry‘s fuel consumption and its direct CO2 emissions, the reporting and verification aspect is clearly geared towards an emission-trading scheme, or other financial mechanism." LLOYD‘S LIST, 15 May 2013, p 2 PIB ban must fly "Discharge of polyisobutene from ships into the Channel this year, much of it entirely legal, has created avian carnage on a grand scale. The chemical, a form of synthetic rubber known as PIB for short, is not in itself toxic. Indeed, it is widely used in chewing gum, being the very ingredient that provides the confectionery with its extraordinary unwanted tenacity once it has been uncouthly spat on to the pavement. But once it comes into contact with seawater, PIB coats the plumage of seabirds, restricting their movements and preventing them feeding. As a result, up to 4,000 have washed up on Britain‘s beaches in recent months. Understandably, the Royal Society for the Protection of Birds, the Royal Society for the Prevention of Cruelty to Animals and the Wildlife Trusts are aghast that vessels are, in certain circumstances, entitled to release PIB under the terms of the Marpol convention." LLOYD‘S LIST, 15 May 2013, p 2 Pollution regulation sparks owners’ concern - By Liz McMahon "Concerned shipowners have appealed to the UK P&I club for clarification of their new obligations under the recent amendments to Annex V of the International Convention for the Prevention of Pollution from Ships. The club said the amendments to Marpol had created a tougher regime for shippers and crews over discharges into the sea. The club said it had received many inquiries from members concerned about their obligations under the amended regulations. In response, the club has issued advice that focuses on the concept, requirements and process of classifying cargoes that are harmful to the marine environment and the processes involved in the eco-toxicity testing. Any discharge of garbage at sea is regulated by Marpol. The UK Club said the aim of the convention was to eliminate and reduce the amount of garbage being dumped into the sea. This included all kinds of food, domestic and operational waste that are likely to be disposed of during the normal operation of a ship. The club added that under the recent amendments, there had been a focus on the discharge of wash water created in cargo holds, with any non-recoverable cargo residues or cleaning agents contained within wash water being classed as garbage under the convention." LLOYD‘S LIST, 15 May 2013, p 7 Sea-reliant Finland finds it is not that easy being green - By Craig Eason "Impending environmental legislation from the European Union and International Maritime Organization is weighing heavily on Finnish shipowners. Any vessel working in the Baltic Sea or involved in shortsea freight between the Baltic and the rest of northern Europe — as most Finnish vessels do — is facing a number of challenges. These include the low-sulphur rules of 2015, the probable NOx rules of 2016, the ballast-water rules of the coming years and a host of others. In rising to these challenges, Finland is no different from any other country. But it is, to all intents and purposes, an island and its trade is almost exclusively through its ports. Almost all of its exports and imports go by sea. Shipowners point to the pending ballast-water technology requirements." LLOYD‘S LIST, 21 May 2013, p 8 Greenland wants to stay green - By Craig Eason "Denmark is determined that highest standards must be applied to operations in the Arctic and this ambition is being mirrored by the new Greenland government, which has expressed concern over the activities of international oil majors. Greenland is part of the Danish kingdom, and both countries are working to ensure that the wording of the Polar Code and other Arctic rules enshrine the highest levels of safety and experience. By creating a high entry barrier, the countries hope it to benefit players with know-how and experience. This will give an extra impetus to their workforces and ease concerns about the Greenland landmass and waters being inundated by international companies sending in poorly trained workers with inadequate resources." LLOYD‘S LIST, 23 May 2013, p 8

21

Back to Contents

PORTS AND HARBOURS

Shanghai admits hub shortcomings - By Max Lin "Shanghai, the world‘s busiest port, is seeking to redefine its identity. Because it is not enough just to handle more containers than anybody else, Shanghai aims to create top-class clusters of ship insurers, shipbrokers and financiers by 2020. Its ambition is to position itself to rival the status London enjoyed in the 19th century. Now, however, the Shanghai government has admitted that compared to other maritime hubs in Asia, ―its shortcomings in regards to shipping services and market freedom are relatively large‖." LLOYD‘S LIST, 7 May 2013, p 1 Recycling slow to gather momentum ―Major ports, especially those visited by cruise ships, have been caught out by regulations that since January ban the dumping of nearly all kinds of waste at sea. Although cruise companies say most ports are equipped to process large quantities of standard garbage, they complain that too many have inadequate facilities for handling not only hazardous waste but also recyclables.‖ PORTS AND HARBORS, May/June 2013, p 6 European Commission sets LNG bunkering target – By Andrew Spurrier ―The European Union‘s executive body wants to oblige leading ports to develop LNG bunkering facilities by 2020.‖ PORTS AND HARBORS, May/June 2013, p 16 Embarrassment for Yara as 'green ship' detained – By Adam Corbett ―A vessel involved in one of shipping‘s most environmentally and safety sensitive trades has found itself at the centre of a major port state control (PSC) controversy after it was detained in the UK with a whopping 16 deficiencies. The 2,056-gt Yara Embla (built 2005), which is involved in carrying liquid carbon dioxide (CO2) as part of an environmental trade involving Norway‘s Yara ASA, was held last month with UK inspectors saying they had uncovered ―objective evidence of a serious failure, or lack of effectiveness of the implementation of the International Safety Management [ISM] code‖. However, the Yara Embla‘s owner, Larvik Shipping, which operates it on behalf of chemicals company Yara, says a misunderstanding over which rules should apply to the ship were at the centre of the detention. Larvik managing director Espen Tollevik says there is an ongoing discussion between the Norwegian Maritime Directorate over whether the Yara Embla should be considered a gas carrier or bulker.‖ TRADEWINDS, 17 May 2013, p 33 Ports gear up for 18,000 teu leviathans - By Mike Wackett "With only 37 days remaining to the delivery of Maersk Line‘s first Triple-E 18,270 teu ship, and the prospect that this size of containership will become the ‗new normal‘ on the Asia-Europe trade lane, ports are investing in new cranes and upgrades to accommodate these leviathans. In Antwerp, Kalmar— part of the Finnish Cargotec group — has just completed the heightening of six cranes at the MSC Home Terminal. The project involved increasing the hoisting height of the gantry cranes from 38 m to 42 m above quay level. This required jacking up the crane and inserting a heightening construction." LLOYD‘S LIST, 23 May 2013, p 5 Genoa accident highlights infrastructure deficit ―The president of Italy‘s logistics association has linked the recent fatal accident in the port of Genoa to a chronic failure to invest in the country‘s port infrastructure. ―In Europe, port infrastructures are growing to keep pace with the dimensions of the vessels that call at them. In Italy ports remain static and are in danger of becoming increasingly small-scale and therefore dangerous as ship sizes increase,‖ Assologistica president Carlo Mearelli told Italian media last week.‖ FAIRPLAY, 23 May 2013, pp 42-43 Brussels port guidelines generate a mixed response - By Roger Hailey "Critics say reforms tangle players in red tape yet fail to tackle restrictive practices. Shipping players have greeted Brussels‘ proposed new guidelines for ports with a mixed response, despite claims that the changes by the European Commission will ―prevent possible price abuses by operators with exclusive rights‖. Management at Rotterdam, Europe‘s top container and freight gateway, claims the proposals will increase bureaucracy. Meanwhile, the Brussels-based European Community Shipowners‘ Associations has demanded further discussion, questioning why the Brussels regulator has not pushed harder on cargo handling, passenger services and port labour issues. Ecsa secretary-general Alfons Guinier said: ―The recently published study on behalf of the European Commission extensively documents that although port labour in many [European Union] ports works very well, there... exist many restrictive practices in several ports.‖ However, the EU freight forwarders‘ lobby Clecat described the policy package from vice-president Siim Kallas, commissioner for mobility and transport, as a ―step in the right direction‖ although it, too, had reservations about restrictive practices." LLOYD‘S LIST, 30 May 2013, p 2 Legislation ‘harmful’ to UK ports - By Roger Hailey "Brussels‘ proposed reforms have not played well with the UK ports industry, in which private-sector ownership is now the norm, whereas many ports in

22

Continental Europe are owned by municipal landlords. The UK Major Ports Group has slammed the proposed port services legislation as ―ill-timed, unnecessary and potentially harmful and unfair to UK ports‖, saying it would worsen ―legal and policy instability‖. In a statement, the group called the Brussels proposals ―ill timed‖, noting that the EU was still considering ―earlier commission legislative proposals on public concession agreements and the nature and financing of the EU transport network including ports‖. It said the proposals were ―unnecessary... because the commission‘s current policy of applying general EU rules on state aid and competition, combined with guidance, has been enabling UK and EU ports to improve performance and invest. Port users and stakeholders have not been asking for any new policies‖." LLOYD‘S LIST, 30 May 2013, p 2 Big ships impose big demands on ports – By Kari Reinikainen ―Container terminal operators have to find a way to boost efficiency of their facilities: ever larger vessels employed on major trade lanes such as Asia-Europe have a cascading effect, by which ships displaced from major routes are used to replace smaller ships on other routes. ―The ever larger ships will strain the operational capability of ports, with a requirement to deliver faster handling speeds in order to maintain turnaround times,‖ noted London consultancy Drewry in a weekly report on the container shipping markets.‖ FAIRPLAY, 30 May 2013, p 19 Europe goes tactical on port services ―The commission takes softly-softly approach on port reform legislation. The European Commission laid a lot of emphasis on the need for the European Union‘s lesser ports to improve their performance in the initiative it announced last week but gave little information about the legislative measures it is planning to achieve its objectives. Thus, it said 319 key seaports out of a total 1,200 would be helped by its initiative, enabling them to handle a bigger share of the 50% growth in cargo volumes it predicts for the European Union between now and 2030.‖ FAIRPLAY, 30 May 2013, pp 30-31

Back to Contents

SEAFARERS Lloyd's relaxes ban on financial guarantees to allow crew cover – By Jim Mulrenan ―Underwriting of crew-repatriation costs will be exempted from a ban dating back to 1924. A near 90-year prohibition on writing financial guarantees at Lloyd‘s is being relaxed to allow syndicates to offer cover for ships‘ crew. The move recognises that new liabilities to seafarers are arising from the Maritime Labour Convention (MLC), which is due to enter into force on 20 August. Lloyd‘s is exempting the underwriting of seafarer-repatriation costs, following the insolvency of a shipowner, from a general ban on financial-guarantee business.‖ TRADEWINDS, 3 May 2013, p 7 Possibility of criminal charges terrifies seafarers – By Adam Corbett ―A survey of 3,500 seagoing personnel has revealed the extent to which seafarers consider their basic human rights ‗theoretical and illusory‘, rather than ‗practical and effective‘. Around 85% of seafarers say they live in fear of facing criminal charges in the event of a maritime accident, according to a new survey. The study, conducted by the International Transport Workers‘ Federation (ITF)-funded Seafarers Rights International (SRI), uncovered a deep-seated concern among seafarers about how they are treated by the authorities. Some 3,500 individuals were questioned on their views of how their basic human rights are protected, some seven years after the introduction of the International Maritime Organisation (IMO)‘s ―Guidelines on the fair treatment of seafarer‘s in the event of a maritime accident‖.‖ TRADEWINDS, 3 May 2013, p 31 Tax-free shopping is a hit with seafarers - By Janet Porter "Southampton is becoming the port of choice for some seafarers — not because of the weather, nightlife or entertainment facilities, but for something quite unique. In the few hours of shore leave that crew may have when in port, most look forward to some retail therapy after weeks at sea. But if they shop in local stores, they will almost certainly end up paying more than they need to. That is unfair for the majority of ships‘ crews who are from outside the European Union and therefore not required to pay value added tax, and yet have little opportunity to claim a refund. In Southampton, though, a service offers tax-free shopping for crew calling at the south of England port." LLOYD‘S LIST, 7 May 2013, p 12 ‘Only one of our 18 VLCCs has a cargo,’ TMT shipmanager says - By Tom Leander "―Only one of our 18 VLCCs has a cargo,‖ said NOS Shipmanagement fleet personnel manager TK Nathan. Mr Nathan was responding to questions about the status of the crew of A Whale, a VLCC that is at anchor in Suez, Egypt. The lack of business is causing a ―bad fund flow‖, he said. Singapore-based NOS Shipmanagement is owned by TMT, which has seen its ships arrested in several locations recently, including Singapore and Ningbo, where a court is supervising the sale of an arrested ship. As for A Whale, the crew sent out an email early on Wednesday to Lloyd‘s List and other press, saying that they were owed nearly $300,000 in wages following four months of non-payment." LLOYD‘S LIST, 9 May 2013, p 5

23

A Whale crew will be paid ‘imminently’, says TMT - By Tom Leander "TMT, shipowner led by Nobu Su, says it will soon pay the crew of A Whale, a very large crude carrier anchored near Suez. A spokesman for TMT said that ―this is an isolated incident due to a series of unforeseen events. TMT will pay the crew‘s salary imminently and hopes that this will put an end to a situation which neither side wanted‖. The spokesman added: ―The A Whale crew have done a fantastic job in what has been a difficult time in Suez and we are very grateful for their professionalism and co-operation.‖ An email signed by the 21 crew of the 2010-built, 319,869 dwt A Whalewas sent to Lloyd‘s List and other organisations on Wednesday saying they had not been paid in almost four months and were owed about $300,000 in total by NOS Shipmanagement, which is owned by TMT." LLOYD‘ LIST, 10 May 2013, p 7 Maritime unions urge fresh action on job fraudsters – By Adam Corbett ―The International Transport Workers‘ Federation (ITF) is urging seafarers to report recruitment scammers following TradeWinds‘s expose of the latest fraud to hit the maritime employment market. However, past history has shown that police and flag states have regularly failed to halt the activities of the recruitment con men who evade the law only to reappear under a different guise. Responding to TradeWinds‘s article uncovering an e-mail recruitment scam — which seeks to win commissions for bogus jobs from Eastern European seafarers by falsely claiming to represent the likes of Lomar Shipping, NS Lemos and AM Nomikos and other London-based Greek owners — the ITF says it is taking action. It adds that it is not only targeting the fraudsters but other forms of ―malpractice‖ that are prevalent in the seafarer employment market.‖ TRADEWINDS, 10 May 2013, p 31 Philippines election strengthens Aquino’s maritime reform effort - By Tom Leander "The outcome of the mid-term Congressional election in the Philippines has strengthened the Aquino administration‘s hand in reforming the maritime administration, according to a senior maritime official. ―The election improves our prospects of getting necessary support for much-needed legislative reforms when it comes to the education and training of maritime professionals,‖ said Nicasio Conti, officer in charge of Office of the Administrator of the Maritime Industry Authority, known as Marina." LLOYD‘S LIST, 17 May 2013, p 4 'A Whale' crew remain unpaid in Suez limbo – By Adam Corbett ―Managers have failed to pay outstanding wages owed to the crew of the Today Makes Tomorrow (TMT) controlled, 320,000-dwt combination carrier (OBO) A Whale (built 2010), who remain stranded on the ship at an anchorage in the Suez Canal. Last week, representatives from Singapore based, TMT linked management company NOS Ship Management told TradeWinds that the men would be remunerated shortly. But the crew were sceptical of the claim and on Wednesday reported to TradeWinds that there was still no sign of months of outstanding back pay. A message from the laid up tanker, signed on behalf of the 21 seafarers on board, read: ―As of now, there has been no development on the backpay situation on board. The company has not kept its promise one more time and we have not yet received our wages for even a single month. It‘s already been four and a half months now without salary.‖‖ TRADEWINDS, 17 May 2013, p 8 Bank forces judicial auction of TMT's 'C Whale&' – By Jonathan Boonzaier ―The High Court of Singapore has ordered that the arrested ‗C Whale‘ be sold to the highest bidder, with brokers suggesting buyers will most likely go down the conversion route. An auction date for the vessel, one of several TMT ships under arrest around the globe, has yet to be set. Legal sources say this will be decided once it has finished discharging its cargo. The identical E Whale (built 2010), which has been under arrest off Cape Town, South Africa, for more than a year, is expected to be the next TMT ship to come up for auction. South African maritime attorney Alan Goldberg, who is representing the E Whale‘s crew, says an agreement has now been reached that will see Mega pay their back wages. The crew has in return agreed to remain on board until the vessel has been sold. The bank has yet to formally petition for the E Whale to be auctioned off but this is expected to happen very shortly.‖ TRADEWINDS, 17 May 2013, p 8 Revised club cover offers no help to TMT crew – By Jim Mulrenan ―Abandoned seafarers face another three months‘ wait for the P&I clubs to provide cover for repatriation. Changes to the rules of protection and indemnity (P&I) clubs to provide cover for abandoned seafarers appear to offer no succour to the unpaid crew of a Today Makes Tomorrow (TMT) vessel running out of supplies at a Red Sea anchorage. The P&I clubs revised their rules at the 20 February start of the new policy year to provide repatriation cover required under the Maritime Labour Convention (MLC), but are waiting until the new regime comes into force on 20 August to implement this change.‖ TRADEWINDS, 17 May 2013, p 34 Insurance market clashes on MLC unpaid wages clause - By Liz McMahon "Maritime Labour Convention 2006 does not require shipowners to provide financial security by taking out insurance cover for unpaid wages, the International Group of P&I Clubs has claimed — a view that Seacurus, which provides a new seafarer-abandonment product, hotly contests. The MLC comes into force on August 2013 and, said IG secretary and executive officer Mr Bardot, will place several new financial security requirements on shipowners. Mr Bardot said Standard A2.5 of the MLC requires seafarers to be

24

repatriated at no cost to themselves; shipowners will provide financial security for the liabilities established in the standard. But what the standard does not include, Mr Bardot said, is a provision on unpaid wages owed to abandoned seafarers, a feature of the principles that the International Labour Organisation agreed in 2009. However, Seacurus managing director Tom Brown hit back, saying that the IG has its facts wrong when it argues that the MLC does not cover unpaid wages or make any requirement to provide financial security against unpaid wages. Rightly or wrongly, Mr Brown said, the intent of MLC standard A1.4 is to place an obligation on member governments to regulate companies within their territories that supply crew to ships around the world. ―Herein lies the insurance or equivalent measure obligation to protect the seafarer from his or her monetary loss in the event of the shipowner‘s contractual default,‖ he said. " LLOYD‘S LIST, 22 May 2013, p 2 Industry must support survivors of piracy - By Christopher Munro "London‘s insurance market has been asked to give its support to the thousands of seafarers who have been left traumatised after being captured by pirates — many of them struggling to come to terms with experiences of being beaten, tortured and threatened with death — and to their families. The Maritime Piracy Humanitarian Response Programme was established in 2011 with the remit of helping seafarers at threat of pirate hijack. The waters surrounding Somalia have justifiably gained notoriety in recent years as a piracy hotspot, and the risks for the 20,000 vessels and 300,000 seafarers that transit the Gulf of Aden each year are high. Indeed, since 2007, an estimated 4,000 crewmen have been held against their will, having fallen victim to a pirate hijacking. MPHRP briefs seafarers on the risks posed by piracy, helps those that are taken prisoner and supports freed captives after their release, as they come to terms with a highly traumatic experience." LLOYD‘S LIST, 23 May 2013, p 12 Last Word: Galley slaves "Forced labour is still present in the shipping industry, not just in developing countries but in nations such as New Zealand, Russia, Turkey, South Korea, Britain and Ireland, delegates to a Vatican conference heard. Indeed, Fr Giacomo Martino of the Pontifical Council for Migrants and Itinerant Workers argued there has been little progress since the Ships, Slaves and Competition report of 2001, which claimed 10%-15% of global seafarers work in conditions tantamount to slavery. He also highlighted issues of owners operating vessels with the minimum number of crew and the fragmentation of national groups, which he claimed increased seafarers‘ sense of isolation. Additional problems include lack of health care and social insurance. Fr Martino expressed the hope that the Maritime Labour Convention, which comes into force in August, will establish minimum standards regarding social security, conditions of employment and welfare conditions on board." LLOYD‘S LIST, 30 May 2013, p 12 Africa seeks new talent – By Savahna Nightingale ―As an increasing number of shipping agencies are looking to hire crew members in Africa, campaigns have started in several African countries to recruit younger people to the industry. With the high rate of expansion in many coastal countries of Africa, the need for skilled labour and training to effectively support a domestic shipping sector is becoming more urgent. Although there has been an improvement in the training provided to seafarers, there is a need for increased and continued training and manpower development, particularly in line with advancing technology.‖ FAIRPLAY, 30 May 2013, p 22 Mystery cash gets TMT controlled ships freed – By Bob Rust and Jonathan Boonzaier ―As TradeWinds went to press, Nobu Su controlled Today Makes Tomorrow (TMT) appeared to be in the process of recovering the 43,800-dwt woodchip carrier Donald Duckling (built 1997) from arrest at Gibraltar. That follows a similar favourable outcome for the 276,000-dwt bulker F Elephant (built 1989) and a settlement of a capesize charter default claim with shipowner NewLead Holdings. A court ordered auction of the 320,000-dwt combination carrier (OBO) E Whale (built 2010) at Cape Town by the mortgagee bank remains on track, however (see story below). Gibraltar authorities originally detained the Donald Duckling over crew wage claims going back some six months. Now, however, they are seeking to cover their own costs of custody.‖ TRADEWINDS, 31 May 2013, p 19

Back to Contents

SHIPBUILDING AND RECYCLING OF SHIPS Hyundai Heavy Industries confirms CSCL order for 18,400 teu vessels - By Max Lin "China Shipping Container Lines and Hyundai Heavy Industries have sealed a deal to build five 18,400 teu containerships, which will be the largest in the world when they hit water. The deal had been anticipated for some time, with the South Korean shipbuilding giant tipped to win the CSCL tender to build the world‘s largest boxships after submitting the lowest offer. According to a regulatory filing from CSCL, the contract price for the vessels is $136.6m each, marginally less than the headline figure of $140m HHI provided earlier. Nevertheless, the price is sharply less than Maersk Line paid Daewoo Shipbuilding & Marine Engineering

25

when it booked 20 18,000 teu vessels at $190m apiece in 2011. The Chinese state carrier, part of China Shipping Group, is seeking to take advantage of bottoming newbuilding prices." LLOYD‘S LIST, 8 May 2013, p 4 China eyes lead on innovation - By Craig Eason and Jing Yang "A Chinese drive to spearhead its recovery in shipbuilding through research and development could have dramatic impacts on other shipbuilding nations and help redefine the industry. The country‘s yards are at the forefront of claims of new fuel-saving designs, which are being bought by those owners with the cash to invest as the industry heads into growth mode. Critics say these designs are not offering the fuel savings the yards claim and are nothing more than slight adjustments of the vessels being built when yards had full orderbooks. Yet efforts to develop more home-grown innovation, a policy known as zizhu chuangxin, could prove China‘s credibility as a quality shipbuilder as well as a cost effective one." LLOYD‘S LIST, 9 May 2013, p 2 Li Shaode confirms joint service for 18,000 teu ships - By Janet Porter and Jing Yang "China Shipping Group chairman Li Shaode has confirmed for the first time that the 18,400 teu ships his company has just ordered will be deployed in a 10-year joint service with United Arab Shipping Co. He noted that the cost of $136.5m for each newbuilding is way below the $190m that Maersk is paying for its Triple-E ships that have a nominal capacity of 18,270 teu. Co-operation between China Shipping Container Lines, the container business of China Shipping Group, and UASC had been assumed ever since the Middle East line revealed that it was in talks to order ships of 18,000 teu earlier this year." LLOYD‘ LIST, 10 May 2013, p 1 Brussels’ proposed beaching ban is bad news for ship recycling - By Nikos Mikelis "Four years ago, the International Maritime Organization adopted the Hong Kong Convention as a global standard for safe and clean recycling of ships. Now, a new challenge has arisen as a result of the European Union‘s unwillingness to wait for the new convention‘s entry into force: during the next few weeks, regulatory developments in Brussels risk wrecking and nullifying the Hong Kong Convention. This article explains the background to the negotiations that are now taking place in Europe and forecasts the dire consequences that could follow if the current position of the European Parliament wins the day." LLOYD‘ LIST, 10 May 2013, p 8 Maersk Line cuts 'Triple-E' newbuildings bill – By Andy Pierce ―The Danish operator has secured a $100m reduction on its bill with DSME in the same week CSCL leapt ahead in the race to have the largest boxships on the water. Maersk Line ordered its 18,000-teu Triple-Es at a huge $190m each in early 2011. It is now paying a shade over $185m for each of the vessels after negotiating a reduction with the yard, a spokesperson for parent AP Moller-Maersk confirms.‖ TRADEWINDS, 10 May 2013, p 2 EU beaching ban 'could scupper global standards' – By Geoff Garfield ―Nikos Mikelis, the former shiprecycling chief at the International Maritime Organisation (IMO), warns that worldwide attempts to raise vessel-recycling standards could soon be scuppered by a European ban on beaching. Mikelis fears that the still-to-be-ratified Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is in jeopardy if a sequence of meetings beginning this week in Brussels sees Europe introduce tougher, unilateral measures.‖ TRADEWINDS, 10 May 2013, p 15 EU beaching ban could cost owners millions - By Liz McCarthy "A European Parliament proposal to ban European Union-flagged ships being scrapped using the beaching method could cost shipowners millions if brought into force. Beyond the fact that it could make years of effort drawing up the International Maritime Organization‘s Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships a waste of time, it would have the potential to very quickly reduce the amount of money that European owners could generate from selling ships for scrap. To put this in perspective, using demolition data from shipbroker Clarksons we calculate that shipowners generated around $6bn from shiprecycling in 2012. That is a significant amount of cash at a time when owners are earning so little that they are struggling to cover operating expenses, let alone finance costs, and publicly listed companies are posting quarterly losses." LLOYD‘S LIST, 13 May 2013, p 1 Don’t ban beaching - By Tom Leander "Negotiations under way this week and later in May could play a crucial role in whether the European Union undermines the International Maritime Organization‘s Hong Kong Convention as a global standard for the safe and clean recycling of ships. In March 2012, the European Commission proposed a regulation on ship recycling to the European Parliament and the EU‘s council on ship recycling. Underlying the proposal was a sense in the EU that the Hong Kong Convention was not moving quickly enough to improve conditions for ship recycling in south Asia, where ships are grounded and broken up on beaches — an approach that has been criticised as harmful to workers and damaging to the environment. To become law in the EU, the proposal needs to be agreed by the EU and the council. Along the way, the European Parliament introduced an amendment for an outright ban on beaching EU-flagged ships. The proposal is now subject to negotiations between the European

26

Parliament and the European Council in the presence of the European Commission, first this week, and then tentatively for May 26. An outright ban will encourage European owners to flag out to avoid the consequences of the EU‘s stricture — and to continue to have the opportunity to sell ships for scrapping in south Asia." LLOYD‘S LIST, 14 May 2013, p 2 China’s shipbuilders step up their quest for innovation - By Craig Eason and Jing Yang "Economic and regulatory drivers underpin shipowners‘ interest in new vessels that offer improved fuel efficiency, which in turn is forcing shipyards with shrinking orderbooks to rethink their relationship with owners, who now have the upper hand. At the forefront are Chinese shipbuilders with vast orderbook shortages, who are rapidly losing money. China‘s industrial policy may have seen it become the global manufacturing hub, and this is certainly true in shipbuilding. The country‘s strength as a shipbuilder is set to grow: all the scenarios painted recently in a Lloyd‘s Register forecast for 2030 put Chinese shipbulding in front in terms of numbers and tonnage. Yet China has a problem demonstrating its capability to be innovative." LLOYD‘S LIST, 15 May 2013, p 9 A soft landing for shipbuilding - By David Osler "Shipbuilding is set to avoid the apparent fall over a cliff that seemed so certain 15 months ago, and is likely to enjoy a soft landing as it downsizes one-time record orderbooks, according to analysis produced by BIMCO, writes David Osler. The suggestion chimes with anecdotal evidence that lower prices, quicker delivery times due to the end of yard congestion, and an increasing belief that shipping markets have bottomed out, are working together to boost collective confidence in future prospects." LLOYD‘S LIST, 20 May 2013, p 7 I’m sorry, Ollie "The rush is on to buy eco-ships — in all three sector flavours. Even the mightily struggling crude tanker sector is seeing a rush of buying, with 13 very large crude carriers ordered in the last six months. Capesize vessels have been ordered en masse since the turn of the year. And every day seems to bring a new announcement or rumour of new boxships to be built in China or South Korea. Eco-ships will be less expensive to run than today‘s gas guzzlers, but with too many of them hitting the fleet at once and outpacing supply, it will just add up to another hungry crowd. Mr Stopford has likened the industry‘s cycles to a Laurel and Hardy skit in which the benighted fellows push a piano up a long flight of stairs only to rest at the top and watch it go crashing down." LLOYD‘S LIST, 24 May 2013, p 2 Owners should order eco-ships to maintain competitive edge - By David Osler "Tougher environmental regulations and high fuel costs are strong incentives for shipowners to invest in the new generation of so-called eco-ships to cut operating expenses, Moody‘s believes. The agency singles out Annex VI of Marpol, mandatory energy-efficiency design index for new ships and the introduction of ship energy-efficiency management plans for all vessels. ―As environmental regulations are likely to continue tightening globally, while freight rates are likely to remain relatively low because of the sustained oversupply of vessels, operators with more efficient, greener fleets will have an important competitive edge,‖ Moody‘s says." LLOYD‘S LIST, 24 May 2013, p 7 Get it while you can - By Tom Leander "With the rush to buy new ships on, even a disappointing market in 2013 will not deter overordering. Policy banks in China, South Korea and Japan have ensured that there is financial support through local yards for foreign owners to buy into the eco-ship boom. With money on the table, a sustained period of today‘s low rates is unlikely to deter them if they feel they need the ships to survive in the evolving market in which eco-ships are the norm." LLOYD‘S LIST, 30 May 2013, p 2 The new yardstick: verifying the efficiency claims - By Tom Leander "Brian Østergaard Sørensen, head of newbuilding and conversion at AP Moller-Maersk‘s inhouse design group Maersk Maritime Technology, has this to say about the promise of eco-ships. ―We have done comparisons between designs and the operational gains claimed by shipyards and we think they are very, very optimistic,‖ says Mr Sørensen, who is also the head of Maersk‘s Singapore branch off at MMT. Mr Østergaard‘s opinion matters because he is one the key figure overseeing construction of the Maersk giant Triple-E class ships, the first of which will be launched in June from Daewoo Shipbuilding and Marine Engineering. In his parlance, the Triple-E class ships are less eco-ships than a step in an incremental advance toward more efficient fuel consumption. ―We don‘t think we are facing a revolution in ship design. The ships haven‘t changed that much, we have not passed the line. We need to think of it as an evolution,‖ he says." LLOYD‘S LIST, 30 May 2013, pp 8-9 Is Europe’s multi-forked fightback winning? - By Craig Eason "The European Union has thrown millions of euros into research and development programmes in recent years to ensure the region‘s industrial sectors remain competitive with the advances of other nations. The technology and shipbuilding industries are no exception and support comes from a variety of European Commission sources, such as the Ten-T, Marco-Polo or FP7 funds. These funds can be used to improve shipping‘s environmental or sustainability footprint or to enhance the competitiveness of the technology industry in the face of the

27

shipbuilding onslaught Europe faces from its Asian rivals, notably China and South Korea. However, shipbuilding and technology in these countries will soon reach a new level of maturity and will increasingly focus on innovation and niche construction, threatening the last preserve of Europe." LLOYD‘S LIST, 31 May 2013, pp 6-7 Eastern shipyards build on the lessons learned from the west - By Craig Eason "The industrial art of shipbuilding is barely 70 years old; the skill of welding steel plates and girders was invented by the west to replace riveting and has now been mastered by the east. It is a labour and capital-intensive industry and it is often seen by economists to offer national lifelines to countries struggling with financial woes. Nations — whether the US, Japan, South Korea, China or from Europe — seem to follow a similar development model. As a country‘s economic trade develops, so does its seaborne trade, relying initially on merchant vessels from other countries for shipments, then buying new or secondhand ships to meet demand. This creates a need for shiprepair yards then, as international trade increases, to a demand for shipbuilding as owners look for domestic facilities and governments see the benefits in trade security. Any increase in industrial demand for steel will also raise employment and self-dependence if produced nationally. As competence grows so does competitive advantage, which then begins to translate into international orders." LLOYD‘S LIST, 31 May 2013, pp 6-7

Back to Contents

SHIPPING Singapore poised to take LNG imports to the next level - By Hal Brown "Qatari liquefied natural gas ship Umm Slal is now back in the Middle East Gulf, having carried the first ever cargo of LNG to Singapore around a month ago, kickstarting a new trade dynamic that will grow and offer further cargoes for the fleet. That first shipment was, in effect, a trial run before Singapore starts to import in earnest this quarter. The figures reveal just how promising this trade is. Singapore‘s import terminal capacity will start off at 3m tonnes, to be supplied by BG Group, rising to 9m tonnes in two or three years. However, the terminal may have to expand significantly to cope with Singapore‘s expected rising demand for LNG, which, according to the government, could rise to 15m tonnes a year by 2025." LLOYD‘S LIST, 1 May 2013, p 8 Cexim’s ambition faces an uphill march - By Jing Yang "The Export-Import Bank of China has made its ambitions for a bigger share in ship finance no secret in the market. With a $12bn portfolio, it ranks as the world‘s 12th-largest shipping bank, according to Petrofin. But its pledge to help quality shipowners ride out the current crisis has raised eyebrows. Some argue that unabated shipyard capacity and financing ammunition from the export credit agency would prolong the crisis, or act as a catalyst for the next one." LLOYD‘S LIST, 2 May 2013, p 8 Cyprus promises shipping undersecretary within weeks - By Nigel Lowry "Cyprus will create a new governmental position of undersecretary for shipping ―within the coming weeks‖ to deliver the campaign promises of the country‘s new president, Nicos Anastasiades, whose first days in office were derailed by the island‘s banking shock. The move has been a longstanding goal of the shipping community based on the island and appears to signal strengthening bonds between the industry and the government in the wake of the crisis. Mr Anastasiades has pledged measures to reinforce the sector and to intensify efforts to end the long-running Turkish embargo against Cyprus-flag ships, which constitute the third-largest fleet in the European Union." LLOYD‘S LIST, 3 May 2013, p 2 Shipowners learn to live with new laws and levies - By Nigel Lowry "A year ago the Greek shipping community was in the grip of uncertainty. Electoral fever and fears of a ―Grexit‖ from the eurozone were not the only worrying trends that seemed to be at their zenith. Many shipping companies were developing contingency plans to relocate in case the next administration tried to solve the country‘s debt dilemma by taxing its richest industry to the point of asphyxiation. As it happened, the shipping community got something like the government that it wanted — a three-party coalition led by Antonis Samaras of the conservative, pro-business New Democracy party. Although it has struggled to manage a national economic meltdown, the government has achieved a certain number of goals and one has been to restore calm in shipping circles. New tax laws brought in earlier this year are meant to wring an additional €140m ($184.5m) out of shipping annually. However, these were the result of lengthy negotiation with the industry. They keep in place a tonnage tax system that is broadly favourable to owners and, at the same time, have given the industry the sense of stability that it craves." LLOYD‘S LIST, 3 May 2013, p 8 Greece waits for registry boost as flagging-out tax advantage ends - By Nigel Lowry "In theory, one beneficiary of Greece‘s new measures should be the Greek flag. The new tax system is in effect flag-neutral, meaning that all Greece-based shipping operations will pay the equivalent of the Greek flag tax. For those with tonnage under foreign flags, if the owner owes tonnage taxes to the flag state they can be

28

deducted from the tonnage tax levied in Greece. Since the Greek flag is considered top-tier in safety and a patriotic choice as well, the effect should be to give it a boost. While this may come true in the longer term there has been no immediate flood of applications to register ships now that having a different flag has no tax advantage." LLOYD‘S LIST, 3 May 2013, p 8 Looking for glory at Nor-Shipping ―From car carriers to container ships, Solutions profiles the diverse candidates vying for the Next Generation Ship award and explores their innovative attributes.‖ FAIRPLAY SOLUTIONS, May 2013, p 14-15 The recovery starts here - By Richard Meade and Tom Leander "Lloyd‘s List launches industry platform to support sustainable shipping upturn. Jesuits advise always knowing your next two moves, using a chess metaphor for strategic decision-making. China Shipowners‘ Association chairman Zhang Shouguo says that is not enough: shipowners should command a view of the entire game. Yet the majority of shipowners stick religiously to the familiar, and wait until others — John Fredriksen, Maersk, the Chinese government — make a move, then respond. This is no way to run an industry. Today, the shipping landscape is delineated by the existence of failed one-move strategies. The shipping industry needs to shift from following the leader to leading itself. Simply embracing a winner-take-all view of the shipping market, in which a few brilliant individuals play a better hand than their slower-witted rivals and exploit the distortions of state subsidies to their advantage, is unsustainable." LLOYD‘S LIST, 9 May 2013, p 1 China Shipping chief Li calls for new carrier-shipper partnerships - By Jing Yang "Shippers and carriers should explore various forms of partnerships to solve the volatility that afflicts the shipping industry, China Shipping Group chairman Li Shaode told the opening panel of the Lloyd‘s List summit in London. ―Contract of affreightment has been effective to some extent. But we should innovate new methods and explore new business models, including joint ventures and cross-stakeholding,‖ Mr Li said." LLOYD‘ LIST, 10 May 2013, p 2 London sees no special case for UK flag incentives – By Andy Pierce ―The UK‘s coalition government will not introduce specific measures to draw shipowners back to its shores despite hopes that the industry could aid an economic recovery. Transport Minister Stephen Hammond says any lure for owners to relocate to the UK will come as a by-product of an attractive registry and a positive environment for business in the City of London. Addressing an industry event in the Square Mile, Hammond spoke of the maritime sector as a ―national treasure‖ and described a shift in government that has made transport infrastructure ―a key for our growth‖.‖ TRADEWINDS, 10 May 2013, p 17 Lloyd’s Register predicts the future ―Classification society Lloyd‘s Register has issued a report into ‗Global Marine Trends 2030‘ which indicates strong growth for the maritime sector and an even bigger role for China – owning a quarter of the merchant fleet. The report predicted seaborne trade will increase from 9bn tonnes annually to between 19 and 24bn tonnes.‖ SHIPPING WORLD AND SHIPBUILDER, May 2013, p 3 A bridge to better days "Shipping is going through troubled times, indeed perhaps the darkest hours in the memory of any of its current practitioners. But the mood at the inaugural Lloyd‘s List Summit in London should leave no one in any doubt that ours is a resilient industry, more than capable of battling its way through stormy weather and emerging intact on the other side. What is increasingly clear is that recovery will not come tomorrow or the day after tomorrow, and the consensus on when it will happen appears to be drifting. Asked when they foresaw the upturn, attendee opinion was split, with 6% saying 2014, 26% 2015, 38% 2016, and a full 30% even later than that. Given that the financial crisis commenced in 2008, it is clear that at least the Biblically-allotted seven lean years are likely to elapse before the fat years will return, with no less a figure than DryShips chief executive George Economou warning that nobody should expect to make big bucks in the interim." LLOYD‘S LIST, 13 May 2013, p 2 No escape from boom and bust - By Liz McMahon "Financiers say shipping will remain a cyclical business. There is no chance of a paradigm shift that will see shipping move away from its violent cycles of boom and bust, according to finance experts speaking at the Lloyd‘s List inaugural summit. HSH Nordbank management board member Torsten Temp said the last time the industry spoke of such a change was in 2004. That discussion intensified in 2006, leading to the 2008 disaster. He said the industry had experienced ―big problems‖ in the 1970s and 1980s but pointed out that there had been a 25-year gap between the end of the 1980s and the present downturn. ―I don‘t know of any other financial industry that has had 25 years of uninterrupted growth. This is a wonderful industry that makes many mistakes and I am concerned, but not because of any change in paradigm. It is the cycle,‖ Mr Temp said." LLOYD‘S LIST, 13 May 2013, p 3

29

Intra-Asia trade set for rapid growth - By David Osler "Region must look to its own strength to offset US and European malaise. Asia will almost certainly have to look to its own economic strength in the years ahead, whether it wants to or not. In shipping terms, that is likely to lead to a sharp rise in intra-Asian trades, albeit in a complicated fashion that will throw up its own winners and losers. Even without the ongoing weakness of the European economy and sluggish growth in North America — which just about seal the deal — the dynamics set in play by the region‘s development in recent decades have been such as to make this outcome inevitable. According to a prediction from Dubai-based investment firm Asiya Investments, intra-Asian trade is likely to quadruple from an annual $5trn at present to $20trn just seven years from now." LLOYD‘S LIST, 13 May 2013, p 8 Washington faces increasing pressure to export US crude oil - By Hal Brown "Pressure is growing on the US government to allow exports of its crude oil, with dramatic implications for the international tanker trade, experts said on Monday. New shipping trade lanes will develop as US light sweet crude is carried to international markets, potentially matching the boom being seen now in exports of refined oil products from the US to Latin America, said analysts at a London oil conference. The Jones Act, which bans the shipping of crude between US ports by foreign vessels, would also have to change to allow foreign ships to take full advantage of a new export market. Pressure is increasing to allow the US to export crude as more states benefit from growth in extraction of domestic light sweet crude." LLOYD‘S LIST, 14 May 2013, p 3 Holth cracks glass ceiling at DNB - By David Osler "Women are starting to make their presence felt in all areas of the business world, but in ship finance, the glass ceiling has remained very much intact. When Lloyd‘s List recently interviewed eight of the world‘s leading shipping bankers, the picture of heads and shoulders in a row hammered home the point that every single one was a middle-aged white man. One doesn‘t need to subscribe to political correctness gone mad to notice that gender balance is not a prominent feature of this niche financial specialism. But now this monopoly is broken. Following the promotion of Harald Serck-Hanssen at DNB, Kristin Holth has taken over as head of shipping. As far as is known, she is the only woman at this level of seniority in shipping banking anywhere in the world." LLOYD‘S LIST, 14 May 2013, p 12 North American crude exports will reshape tanker shipping - By Hal Brown "North America‘s oil production boom will transform the global oil market over the next five years in the same way that Chinese demand changed the market over the last 15 years, and could reshape the international tanker market, according to the International Energy Agency, writes Hal Brown. Oil from North America, which includes tight oil and Canadian oil sands, is a new source of supply that experts believe will soon be exported on tankers to international markets. The technology that has enabled greater extraction of this oil will be applied elsewhere around the world, IEA executive director Maria van der Hoeven told the launch of the energy watchdog‘s medium-term oil report at a Platts conference. That spread could create more new tanker trades as countries access their own tight oil and seek to export it to international markets, say tanker analysts." LLOYD‘S LIST, 16 May 2013, p 5 Frustrated Poles still priced out of flying the flag ―In Poland the battle lines have for some time been drawn between sections of the local shipping industry and the government, with the former accusing the latter of recalcitrance in clearing the way for domestically-owned ships to sail under the Polish flag. Poland‘s largest shipping company, Polsteam, owns 75 of the country‘s 120 ocean-going vessels, which are operated under six different flags of convenience. That is a situation the company‘s management wishes did not exist. What Polsteam and other companies want is for seafarers to be freed from tax and national insurance obligations, given that they spend so much time away from their homeland. Yet in early April the finance ministry once again declared itself steadfastly opposed to the idea, arguing that its implementation would lead to preferential treatment for seafarers over other groups of workers.‖ FAIRPLAY, 16 May 2013, pp 28-29 Chinese banks ink more deals for Greek shipowners - By Nigel Lowry "An agreement that could generate hundreds of millions of dollars‘ worth of lending from Chinese credit institutions to Greek shipowners has been initialled on the sidelines of an official visit to China by Greece‘s prime minister, Antonis Samaras. Mr Samaras, whose visit included a meeting with premier Li Keqiang, aimed to build on existing warm Greco-Chinese relations to drum up increased Chinese investment for his cash-strapped country. He was accompanied on the trip by several top shipowners. Shipping dominated the two premiers‘ ceremony to sign bilateral business accords today, although much of the fanfare concerned business still in the pipeline. The largest single piece of lending to feature in the ceremony was an offer by the Export-Import Bank of China to finance three very large crude carriers for the Angelicoussis Shipping Group." LLOYD‘S LIST, 17 May 2013, pp 1-2 Commerzbank eyes internal warehousing scheme - By David Osler "Commerzbank is planning to acquire ships from existing borrowers and to operate the tonnage for a transitional period with unnamed

30

partners, before selling up when the shipping market recovers, the German bank has confirmed. Although the bank has not spelled out the selection criteria for the intended acquisitions, the obvious presumption is that the primary targets will be vessels unable to meet their loan obligations, not those whose loans are performing. The scheme is to be run through a wholly owned subsidiary, Hanseatic Ship Asset Management, a limited company based in Hamburg that will act as what the world‘s number two ship lender describes as ―an independent internal restructuring platform‖." LLOYD‘S LIST, 17 May 2013, pp 1-2 Nordic ship banks better placed than Germans, argues Fitch - By David Osler "Scandinavian banks are better placed to ride out the shipping crisis than their German counterparts, a prominent ratings agency has claimed. Factors that Fitch highlights in its analysis include lower Nordic exposure to the industry as a proportion of overall lending and the toxicity of the KG lending clocked up by the Germans in better times. Naturally, there are those in Germany who are trying to put a brave face on things. Nord/LB chief executive Gunter Dunkel, for instance, last month averred that things were probably now as bad as they were going to get." LLOYD‘S LIST, 20 May 2013, p 7 Swedish shipping sends an SOS - By Craig Eason "The demise of the Swedish fleet has been well documented. A once-influential shipowning nation with a strong heritage of shipbuilders is now a shadow of its former self. What remains of the shipping community points the finger of blame at political indifference, half-promises and no action. Many owners have reflagged Swedish vessels, notably to Denmark, Norway or the Faroe Islands. Some, of course, have gone bust, though it is difficult to blame politicians for that. What remains of Swedish shipping must prop up the whole cluster, which is focused heavily on Gothenburg, the country‘s largest port." LLOYD‘S LIST, 20 May 2013, p 8 Faroes register finds its feet - By Craig Eason "The Faroe Islands may be part of Denmark, but its ship register is independent and competes for tonnage with the Danish International register. Both are active vibrant registers, although they are scales apart in terms of size and maturity. Both have benefited massively from government encouragement as shipping is seen as a key industry for growth. Although just 87 vessels are registered to fly the Faroese flag, the number represents a steady increase since the government began to build the register up in 2008." LLOYD‘S LIST, 23 May 2013, p 7 Nor-Shipping: Banks buck the trend – By Rajesh Joshi ―Norwegian shipping banks are not joining the global rush to abandon the business. Like all shipping banks, those from Norway are bracing to endure losses in the toughest industry downturn in a generation. Yet compared with most global peers, they are holding up rather well and might even emerge from the crisis stronger. Norway has two primary shipping banks. DNB is the authentic all-Norwegian player: the 191-year-old institution has grown organically and through expansion within its homeland. Nordea is a pan-Nordic company – the name is believed to be a conflation of ‗Nordic idea‘. It came into being when Finland‘s Merita, Sweden‘s Nordbanken and Denmark‘s Unidanmark merged in 2000, later absorbing Christiania Bank of Norway, which was DNB‘s main domestic rival at the time.‖ FAIRPLAY, 23 May 2013, p 20 Nor-Shipping: Balancing the boardroom – By Penny Thomas ―Getting a better mix at the top is good for business, so it‘s important to draw more women to the ports sector. Thirty women in professional positions from ports across the world met over lunch earlier this month to discuss ways to get more females interested in a career in ports. It was championed by the IAPH (International Association of Ports & Harbors) Women‘s Forum and formed part of the organisation‘s biennial conference in Los Angeles. Later, a conference session again focused on women working in the ports sector.‖ FAIRPLAY, 23 May 2013, p 28 Marco Polo nears end of its shift ―The European Union‘s Marco Polo modal shift programme may not have lived up to the expectations raised when it was created in 2003, but it has produced significant measurable results, according to the European Commission. Moreover, it says, as the only existing EU funding mechanism devoted to improving transport efficiency, the project should be pursued – even if in a different form – when the current second edition of the programme comes to a close at the end of 2013.‖ FAIRPLAY, 23 May 2013, p 44 Rule changes force time charters on to balance sheets - By David Osler "• New accounting standards front-load liabilities, eating into companies‘ profits • Assets leased for more than 12 months would have to be listed • Suggestions could hurt companies seeking sudden expansion. Off-balance sheet operating leases such as time charter deals as currently constituted could in effect be banned if one of the most fundamental shake-ups in accounting standards for many years comes into force, according to accountants specialising in shipping-industry issues. The likely changes appear in a so-called exposure draft by the International Accounting Standards Board and the US-based Financial Accounting Standards Board, the organisations responsible for the IFRS and GAAP accountancy codes respectively. Put simply, the standard-setters want to see all leased assets and liabilities with a duration of more than 12 months

31

taken on balance sheet, rather than relegated to footnotes in the annual report, as is widespread current practice." LLOYD‘S LIST, 24 May 2013, p 1 Shipping crisis may intensify, warns HSH Nordbank chief - By David Osler "The shipping crisis may get worse before it gets better, the chief executive of the world‘s biggest shipping lender has warned, with further decline not ruled out this year and next. HSH Nordbank‘s Constantin von Oesterreich‘s remarks formed part of a briefing for business journalists in Hamburg, at which he gave them prior knowledge of the bank‘s net income of €71m ($91.5m) for the first quarter, officially confirmed on Thursday. Mr von Oesterreich was pessimistic about the outlook for the sector, saying that he did not exclude the possibility that the crisis will intensify over the next year and a half. ―We do not believe that the sun will begin to shine again before the end of 2014, so it is important that we dress warmly,‖ he said." LLOYD‘S LIST, 24 May 2013, p 3 No sign of 'A Whale' back pay as crew get desperate – By Adam Corbett ―Morale is sinking to a new low on the Today Makes Tomorrow (TMT) combination carrier (OBO) A Whale (built 2010), according to the crew, who are stranded on the ship with still no sign of outstanding wages, fresh supplies or fuel. The 320,000-dwt ship, now at the Suez anchorage in Egypt, has been caught up in the financial problems of the owner and the seafarers on board have not been paid since late last year. The crew alerted TradeWinds to the problem more than three weeks ago. An update from the vessel says the outstanding back pay is mounting, while fuel is running low along with the mens‘ spirits.‖ TRADEWINDS, 24 May 2013, p 8 China moves towards national flag reform - By Jing Yang "China has laid out a pilot project that aims to reform its rigid ship registration system and to lure convenience-flagged Chinese vessels to reflag in the People‘s Republic. The Ministry of Transport has given the nod for Dongjiang Free Trade Port Zone, Tianjin, to experiment with a new register that slightly loosens the requirements covering foreign capital and crew, state-run China Communication News has reported. Ships on the China register must be no less than 50% owned by Chinese capital and employ only Chinese nationals as crew. Under the new Tianjin Dongjiang flag, however, capital from overseas Chinese companies can be regarded as domestic and up to 30% of crew can be made up of senior foreign seafarers. However, the local authorities are still finalising regulatory details, enforcement measures and a time line, to be released next week, a Tianjin Maritime Administration spokesperson told Lloyd‘s List." LLOYD‘S LIST, 31 May 2013, p 2 He who has the pipeline calls the tune - By Andy Sparkes "As Iran continues its threat to block the Strait of Hormuz in response to tighter US and European sanctions against the country, the world is looking to diversify its sourcing of crude oil in ways that allow exporters to bypass this narrow but vital seaway. Around 40% of the world‘s seaborne crude shipments passes through the strait that divides Iran from its Arab neighbours Oman and the United Arab Emirates. No wonder, then, that the oil markets were so relieved to see the opening of the Abu Dhabi to Fujairah pipeline in July 2012. The 400 km pipeline, said to have cost around $4bn, is thus far operating at limited capacity, but when it is fully operational it will be able to transport 1.5m barrels of crude per day. Over a month this equates to more than 22 very large crude carrier shipments. Eventually, the pipeline will allow the UAE federal capital Abu Dhabi to export as much as 75% of its crude at periodic intervals from Fujairah, the emirate that lies wholly outside the Strait of Hormuz on the Gulf of Oman. Tankers will therefore load in Fujairah and will not need to sail through the strait into the Middle East Gulf." LLOYD‘S LIST, 31 May 2013, p 12

Back to Contents

SPECIAL REPORTS Accreditation for armed guards: LLOYD‘S LIST, 17 May 2013, pp 8-9 Communications: FAIRPLAY SOLUTIONS, May 2013, pp 34-38 Focus on the Nordic and Baltic: Sweden: LLOYD‘S LIST, 20 May 2013, pp 8-9 Lifesaving appliances: FAIRPLAY SOLUTIONS, May 2013, pp 40-45 Lifesaving appliances: SAFETY AT SEA, June 2013, pp 22-28 Lloyd's List Awards - Asia 2013 LLOYD‘S LIST, 22 May 2013, pp 10-11 Low Sulphur: MER, May 2013, pp 18-22 New horizons: LLOYD‘S LIST, 16 May 2013, pp 8-9 Nordic & Baltic focus: Denmark: LLOYD‘S LIST, 23 May 2013, pp 7-9 Nordic & Baltic Focus: Estonia, Latvia, Poland and Lithuania LLOYD‘S LIST, 24 May 2013, pp 8-9 Nordic & Baltic Focus: Finland LLOYD‘S LIST, 21 May 2013, pp 8-9 Nordic & Baltic Focus: Norway LLOYD‘S LIST, 22 May 2013, pp 8-9 Nor-Shipping 2013 preview: SAFETY AT SEA, June 2013, pp 30-40 Nor-Shipping Preview: FAIRPLAY SOLUTIONS, May 2013, pp 14-32

32

Norway TRADEWINDS, 31 May 2013, pp 50-77 Offshore safety: SAFETY AT SEA, June 2013, pp 42-46 Shipbuilding - Part 1: eco-ships and government-backed finance LLOYD‘S LIST, 29 May 2013, pp 8-9 Shipbuilding: LLOYD‘S LIST, 31 May 2013, pp 6-7 Spearheading the recovery: LLOYD‘ LIST, 10 May 2013, pp 1-5 Spearheading the recovery: LLOYD‘S LIST, 13 May 2013, pp 3-7 Views on innovation: LLOYD‘S LIST, 15 May 2013, pp 8-9 Views on intelligent shipping: LLOYD‘S LIST, 14 May 2013, pp 4-5 Women in shipping: FAIRPLAY, 23 May 2013, pp 28-33

Back to Contents