CAB 171 January 2011

INTERNATIONAL MARITIME ORGANIZATION
MARITIME KNOWLEDGE CENTRE
CURRENT AWARENESS BULLETIN

Volume XXIII – No. 1
January 2011
“sharing maritime knowledge”
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CONTENTS
IMO
IMO PRESS RELEASES

MEETINGS
PUBLISHING
SPEECHES
NEWS FROM THE UNITED NATIONS
MARITIME NEWS IN THE PRESS
1. CASUALTIES
2. LAW AND POLICY
3. MARINE TECHNOLOGY
4. MARITIME SAFETY
5. MARITIME SECURITY
6. NAVIGATION AND COMMUNICATIONS
7. POLLUTION/ENVIRONMENT
8. PORTS AND HARBOURS
9. SEAFARERS
10. SHIPBUILDING AND RECYCLING OF SHIPS
11. SHIPPING
12. SPECIAL REPORTS
13. SOURCES
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Important notice: this Bulletin is published by the Maritime Knowledge Centre and is not an official IMO
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IMO PRESS RELEASES
IMO Secretary-General in ship-recycling talks with Bangladesh leader
29/01/2011 IMO Secretary-General Efthimios E. Mitropoulos met the Honourable Sheik Hasina, Prime
Minister of Bangladesh, in London Full Story »
Supply-chain security on the agenda as Mitropoulos meets top US official
28/01/2011 IMO Secretary-General Efthimios E. Mitropoulos met Janet Napolitano, Secretary of the
US Department of Homeland Security Full Story »
IMO Secretary-General and EC Environment Commissioner meet in London

27/01/2011 Mr. Janez Potočnik, European Commissioner for the Environment, visited the
Organization’s Headquarters on Thursday 27 January Full Story »
MEETINGS
Click here for the programme of IMO meetings for 2010, the summary reports for meetings held so far in
2010 and the provisional agenda. If you wish to receive such briefings regularly, please email your
request to Media.
PUBLISHING
Latest IMO News (Issue 4 2010).
The Publications Catalogue is now available in book and mini-CD format. Please ensure that you receive
your copies by emailing your requirements to the Publishing Service.
SPEECHES Secretary-General's speeches to meetings
For the latest IMO Publications please click here.
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NEWS FROM THE UNITED NATIONS
Gateway to the UN System’s Work on Climate Change
UN News Centre UN Dispatch
MARITIME NEWS IN THE PRESS
1. CASUALTIES
MSC Chitra salvage on track - By David Osler "Mediterranean Shipping Company ’s India unit hopes to
complete salvage operations on grounded boxship MSC Chitra by April 2011, according to local media
reports. The vessel was involved in a collision with bulk carrier Khalijia 3 on August 7, in an incident which
closed Mumbai and adjoining Jawaharlal Nehru Port for most of the week, in which it lost over 200
containers." LLOYD’S LIST, 4 January 2010, p 2
Japanese tanker sinks off Niigata - By Colum Murphy "At least one crew member died when a Japan-
flagged tanker sank off Niigata , north Japan, on Sunday morning. The 2004-built 1,247 dwt Seiyoh sank
in the Sea of Japan 90 minutes after notifying the Japanese coastguard that it was in distress, according
to reports by Japanese news wire Kyodo. Of the crew of five, four were rescued by a patrol ship.
However, the 46-year-old chief engineer, who was among those rescued, subsequently suffered a heart
attack and died. The ship’s master, Katsuoshi Sato, is missing and two patrol ships and a helicopter have
been deployed to search for him. The tanker was carrying 1,000 tonnes of vinyl acetate monomer from
Oita in the southern island of Kyushu to Niigata." LLOYD’S LIST, 11 January 2011, p 5
Clouded judgement? "Accident investigators reported a lack of cohesive control on the bridge as a
possible cause of the grounding of a 25,400dwt products tanker on an atoll in French Polynesia after a
radar target was dismissed as unimportant. Grounding incidents are often the result of a breakdown in
communication between those on the bridge. Indeed, the officers involved in the accident in February
2010 – two Russians, a 50-year old master and a 27-year-old second officer, and a 43-year-old first officer
from the Ukraine – were working together for the first time. The investigators’ report on the incident
revealed surprising failures in the decision-making processes of the officers on the bridge in the lead-up to
the grounding." FAIRPLAY SOLUTIONS, January 2011, p 33
2. LAW AND POLICY
P&I clubs warn owners over legal threat in Venezuela - By Janet Porter "Seafarers face jail
sentences of up to 25 years for drug offences in Venezuela, where a new law appears to shift the onus of
proof onto the defendant, shipowners are being warned. P&I clubs have expressed concern about
legislation that entered force in October and which increases the evidential burden and potential penalties
imposed on shipowners and their crews." LLOYD’S LIST, 4 January 2010, p 1
IMO rules push Ship-to-Ship transfers back into the limelight “News of classification societies,
notable Lloyd’s Register (LR), DNV and ABS, issuing plans and checklists specifically aimed at ship-to-
ship (STS) transfers proves just how much interest there still is today on this type of loading/discharge
methodology.” TANKER OPERATOR, November/December 2010, pp 11-15
EC brings in cargo rules despite delays - By Adam Corbett "The European Commission (EC) has
chosen to go ahead with new advanced cargo-declaration regulations since 1 January despite continued
problems in preparing related IT systems, the International Chamber of Shipping (ICS) has warned. The
ICS says it regrets the failure of the EC to grant a grace period to allow shipping companies and member
states time to overcome initial technical hiccups. Under the regulations, shipping companies have to pre-
notify EU member states of the cargo including container and bulk cargoes they are carrying so that a risk
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analysis can be carried out and cargoes that pose a threat to security rejected. Failure to do so could
mean ships being denied entry to port." TRADEWINDS, 7 January 2011, p 38
Maritime Labour Convention set to miss 2012 start - By Steve Matthews "The Maritime Labour
Convention 2006 is now unlikely to come into force before mid-2012 as government austerity drives slow
down commitments to sign up to it. It had been hoped that the ratification threshold would have been
reached by the end of 2010 or early this year, especially with European Union countries expected to add
their names. It is expected to take until about the middle of this year before the number of countries
required to ratify the convention is achieved. It will come into force 12 months later." LLOYD’S LIST, 12
January 2011, p 2
UK in push for equality rules on passengerships - By David Osler "Discrimination, harassment or

victimisation on grounds of age, disability, gender, race, religion, sexual orientation and gender
reassignment will be banned on British passengerships and non-UK passenger vessels in ports in
England, Wales and Scotland, under regulations that will establish the provisions of the controversial
Equality Act 2010 at sea. It is envisaged that new rules will apply from October 1 this year to UK vessels
anywhere in the world, but will include a local law defence for actions necessary to comply with the laws
of other countries." LLOYD’S LIST, 18 January 2011, p 2
Hope still exists for labour convention to fly this year - By Adam Corbett "The Geneva-based
International Labour Organisation (ILO) is hoping that the Maritime Labour Convention (MLC) 2006 can
still come into force this year despite continued delays over its ratification. Cleopatra Doumbia-Henry,
director of the ILO’s standards department, says that although it has now been five years since the MLC
was agreed and despite it being well short of the number of signatories required, it could still be ratified
this year. Eleven countries have ratified so far but 19 more need to commit before the convention
becomes mandatory." TRADEWINDS, 21 January 2011, p 47
Efforts to stem the flow of new oil spill law pay off - By Rajesh Joshi "Voices arguing for a measured
pace to new legislation are becoming guardedly optimistic. As A new year gets under way, and a new set
of lawmakers assumes office in Washington, hopes are brightening that the so-called ‘oil spill law’
spawned by Deepwater Horizon now will take its time in being enacted. Today’s guarded optimism in
shipping circles is a sharp contrast to the palpable tension and fear that gripped the industry in the
summer of 2010, when Congress failed by the proverbial whisker to enact Deepwater Horizon legislation."
LLOYD’S LIST, 24 January 2011, p 2
Cruise operators warned over risks in opt out clause - By Craig Eason "The International Chamber of
Shipping is urging member states to the International Maritime Organization not to sign up to an opt out
clause in the Athens Protocol on passenger insurance liability. ICS chairman Spyros Polemis warned
cruise and ferry operators at a conference in London yesterday that an opt out clause on limiting
passenger compensation to $1m in the case of an incident would see insurers refuse to sign contracts
with operators." LLOYD’S LIST, 27 January 2011, p 5
th
IMO Legal Committee – outcome of 97 session “BIMCO’s submission on fair treatment of seafarers
welcomed by many states. Agreement to review LLMC96 limits at future meeting of the Legal Committee.
Need for all states to have a comprehensive legal regime to prosecute pirates stressed. Future work
programme to consider liability and compensation issues for trans-boundary pollution damage resulting
from offshore oil exploration and exploitation activities.” BIMCO BULLETIN, December 2010, pp 32-33
Athens protocol too difficult to ratify - By Justin Stares "Member states told the European
Commission a proposal for simultaneous ratification of the 2002 protocol would not work because of the
differing parliamentary requirements across the 27-member bloc. “The commission was told this is simply
too complicated to do,” said one Brussels source. Given this, the Brussels executive reportedly dropped
its proposal in favour of drawing up legal guidance on the EU passenger liability regime due to come into
force by the end of 2012. This guidance could be ready as soon as next week, according to one report."
3. MARINE TECHNOLOGY
Europe’s Hercules project enters third phase with new partners - By Craig Eason "One of the
largest ever engineering research projects targeting reduced emissions from ships’ engines is gearing up
to enter its third and probably final phase. European engineering firms Wärtsilä, MAN Diesel and Turbo
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have been behind the long-running Hercules project since its conception in 2002 and launch in 2004. With
financial support from European Commission funds and the commercial partners in it, the project has
been researching a number of different avenues that can be followed to help reduce ships' emissions."
Class NK publishes guidelines for ships built with corrosion resistant steel - By Craig Eason
"Japanese classification society Class NK has published the first set of guidelines for the use of corrosion
resistant steel. The publication comes ahead of new rules from the International Maritime Organization on
the use of corrosion prevention measures within the cargo tanks of crude oil tankers." LLOYD’S LIST, 4
January 2010, p 5
IMO newbuild emissions controls are tightened - By Craig Eason "Any shipowners looking to place
an order for a new vessel will now need to make sure its engine or engines meet the second tier of NOx
emission limits, which are now in force. Under the amendments of Annex VI of the International Maritime
Organization’s marine pollution convention, any ship ordered from January 1 needs to have reduced NOx
emissions. Most engine makers have publicly stated their capability to meet these limits, which are global,
with their latest range of engine types." LLOYD’S LIST, 4 January 2010, p 5
The OPOC engine “Trial are taking place in the US of an engine that uses an opposed cylinder
arrangement, with two pistons to each cylinder, which is claimed to offer reduced emissions, a much
higher power density and a compact size.” MER, December/January 2011, p 5
Fuelling up "The bunker sector was subject to major regulatory developments in 2010. With no similar
milestones on the calendar, 2011 might be a year for adapting to recent and future changes, writes Unni
Einemo." FAIRPLAY, 6 January 2011, p 4
LA and Long Beach back seawater scrubber trial - By Roger Hailey "US west coast box port rivals
Los Angeles and Long Beach have joined forces to test air pollution-reduction technology on trial calls by
an APL boxship. The seawater scrubber device will be used for the first time on a containership visiting
southern California in a $3.4m project co-sponsored by the ports, starting in spring this year. The
technology, using seawater to filter pollutants from a ship’s auxiliary engines and boilers, is claimed to
reduce a vessel’s sulphur oxide emissions by up to 99.9% and particulate matter by up to 85%." LLOYD’S
LIST, 11 January 2011, p 2
Biofouling guidelines set to crack down onhull coatings - By Craig Eason "There is increased focus
once more on underwater hull coatings. Biofouling is the next topic to come under legislative control now
that the debates over ballast water treatment are set to wane with the pending entry into force of the
ballast water convention. But as invasive species use ships’ hulls and their multitude of small crevices,
nooks and crannies, as much as its ballast water, to get from one ecosystem to another, there are new
thoughts emerging about tougher regulations on hull coatings, where they should be applied and how the
hulls should be cleaned." LLOYD’S LIST, 11 January 2011, p 7
Business and academia brought closer together at Southampton - By Steve Matthews "Just before
Christmas Lloyd’s Register and the University of Southampton announced that they have agreed to
embark on a significant new joint project to collaborate in developing a major new maritime research
facility backed by huge investment. According to the university, it will be the largest research collaboration
of its kind in the UK and “will redefine the relationship between academia and business”. Such
collaboration is also highly significant for the wider maritime industry at a time when there is increasing
pressure for advances in maritime technology to improve vessel efficiency and to reduce the industry’s
greenhouse gas emissions, among other things." LLOYD’S LIST, 12 January 2011, p 4
DNV unveils environment friendly tanker design "Norwegian classification society DNV unveiled its
vision of an environment-friendly very large crude carrier design in a presentation in London last month.
The design takes into account recent interest in liquefied natural gas as a mainstream marine fuel and the
potential for more IMO approved emission control areas in the future." FAIRPLAY SOLUTIONS, January
2011, p 4
GL boasts hull-design benefits - By Geoff Garfield "FutureShip, a division of Hamburg-based

classification society Germanischer Lloyd (GL), claims to have cut fuel consumption by 10% in a series of
post-panamax containerships ordered in China by Schulte Group and Costamare. It says a joint venture
with Chinese design office Maric to optimise the hull design means carbon-dioxide (CO2) emissions have
been cut by more than 90 tonnes per day. The improvements will allow for the installation of a smaller
main engine in the six 9,000-teu newbuildings. The GL arm was launched to help owners achieve
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operational savings at the ship-design stage with the use of engineering software." TRADEWINDS, 14
January 2011, p 10
Rescue proves benefits of automated Amver input - By Adam Corbett "A dramatic rescue at sea has
highlighted how commercial-vessel-tracking operations and search-and-rescue systems can work
together to save lives. Vessel-tracking system operator Pole Star has teamed up with the US Coast
Guard (USCG)-operated Automated Mutual Assistance Vessel Rescue System (Amver) in a bid to
improve the network of ships that could assist in a rescue. The Amver system alerts ships of nearby
emergency situations but it relies on ships regularly reporting their position, something that can be an
inconvenience for masters. However, Pole Star has set up a system where a vessel automatically reports
its position to Amver without any manual input from the ship’s master." TRADEWINDS, 14 January 2011,
p 38
Nuclear propulsion for ships? “A consortium of British, American and Greek shipping interests is to
investigate the practical maritime applications of small nuclear reactors as commercial tanker owners
search for new designs that can deliver safer, cleaner and commercially viable forms of propulsion for the
global fleet.” PORTS AND HARBORS, January 2011, p 38
LR and partners back plug & play nuclear cassette “Nuclear power is an answer to this greenhouse
gas problem and one that a number of owners are considering says Vince Jenkins from Lloyd’s Register
(LR). Mr Jenkins says that nuclear power could allow an 800 TEU container ship to reach 30knots ‘no
problem’ and with refuelling only taking place during dry docking the emission free ship could be released
within five years.” NAVAL ARCHITECT, January 2011, pp 40-41
Containerships fits scrubber ahead of control rules - By Craig Eason "A Finish shortsea operator has
opted to install a SOx scrubber on one of its vessels ahead of tightening emission control rules. Helsinki-
based Containerships has signed a contract with Finnish engineering firm Wärtsilä to install a system on
one of its owned vessels which operates in the Baltic and North seas. Under the amended rule of the
International Maritime Organization, ships operating in designated emission control areas will have to limit
the amount of sulphur in bunker fuels from the current limit of 1.0% to a stringent limit of 0.1% as of
January 2015. The IMO rules allow for an after treatment system to be used on the ship’s exhaust to
achieve the equivalent emission level." LLOYD’S LIST, 20 January 2011, p 5
Maersk to use twin engines in giant boxships - By Janet Porter "A series of giant containerships that
AP Moller-Maersk is poised to order are expected to be twin-engined and oil-powered. Speculation that
Maersk would opt for alternative fuels, such as liquefied natural gas, has been played down by industry
sources, who think the Danish line will instal conventional marine engines in a new generation of 18,000
teu ships that could be ordered in the coming weeks. However, it looks as if Maersk has decided to fit two
propulsion systems so as to provide back-up, should an engine fail on such a huge vessel." LLOYD’S
Costing towards efficiency “Owners of coastal and intra-regional tonnage are taking the sector forward
in environmental and energy efficiency.” SHIPPING WORLD AND SHIPBUILDER, Dec/Jan 2011, pp 36-
38
Maritime Blogspot: Engines may be essential - but who needs a crew? "Crews are a huge cost,
second only to bunkers; they need to be sent to and from the ship at regular intervals and they need
feeding and generally looking after. They are also prone to making mistakes, especially when the
numbers on board are whittled down, the workload increased and the general lifestyle not conducive to
happy workers. The unmanned ship is not a new idea. Japan demonstrated the capability in the 1980s as
it faced huge crew costs. Autopilots, automated course tracking and course alterations, have been
available for decades. The answers, the technologies, the systems are all there. But without a master or
chief engineer on board, who will get sent to prison when it all goes wrong?" LLOYD’S LIST, 26 January
2011, p 6
Broker brings clarity to piracy clauses "Insurers want to clarify piracy coverage clauses for the benefit
of owner and underwriter alike. International broker Marsh has issued a new set of simpler clauses for
shipowner clients. Marsh says the complexity of the previous clauses had created confusion among
owners as to whether or not they were covered for piracy attacks and seizure." FAIRPLAY, 27 January
2011, p 18
Denmark puts out feelers to build LNG-filling stations - By Adam Corbett "Denmark has kicked off a
project to develop a series of LNG-filling stations for ships around Northern Europe in a bid to meet rising
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regulatory demand for cleaner shipping emissions in the region. It has called a tender for a feasibility
study to look into developing the fuel facilities in a bid to increase the number of ships using LNG as a
fuel." p 47
Crunch looming on low sulphur fuel - By Craig Eason "New plans to build up the supply infrastructure
for delivering natural gas as a ship’s bunker are being launched as more shortsea operators reveal plans
to build gas-powered ships. Denmark has said it wants to capitalise on the experience its neighbour,
Norway, has with gas fuelled shipping, but it wants such opportunities to develop commercially rather than
just through a successful emissions tax. Shortsea shipping in Denmark, much like that in the rest of
northern Europe, is to be hit by the low sulphur emission limits that tighten in 2015. Strictly speaking the
newbuilding project falls under a Danish programme to test the feasibility of LNG as a fuel, but it highlights
shipowners’ ability to get European Commission funds to meet an International Maritime Organization
mandate." LLOYD’S LIST, 31 January 2011, p 4
4. MARITIME SAFETY
Focus on dangerous goods at IMO – By Mike Compton “With the International Maritime Solid Bulk
Cargoes Code (IMSBC) becoming mandatory this month and the packaged dangerous goods code
(IMDG) extending its mandatory status to the training of shore based employees last year, Seaways takes
a look at the international provisions for the safe transport of dangerous goods by sea.” SEAWAYS,
January 2011, LLOYD’S LIST, 5 January 2011, pp 8-11
Pilot-boarding procedure under review after seafarer’s death - By Adam Corbett "A job seemingly as
simple as lowering a platform for a pilot to board claimed the life of a seafarer because of a lack of safety
awareness, according to a report by German and Antigua & Barbuda accident investigators. The joint
investigation was held into the death of a 27-year-old Filipino ordinary seaman (OS) on 4 November last
year on the 2,442-teu EMS Trader (built 2000) at the port of Hamburg. It found that the pilot boarding
point had been poorly designed and that the seafarer had not taken adequate safety precautions given
the dangers involved in the job." TRADEWINDS, 7 January 2011, p 38
Band-aid solution saves ship "A nuclear waste carrier was prevented from sinking off Norway last
month by a magnetic patch. The Danish ship Puma was on its return journey on 18 December, having
offloaded its cargo of spent nuclear fuel for reprocessing in Russia, when a valve burst on a pipe
supplying sea water to the ship’s sanitation system. The crew was unable to stop the flow of water into the
engine room and the ship was in danger of sinking. The ship was ballasted to bring the inlet above water
level and the patch was applied without use of divers. According to the Norwegian Radiation Protection
Agency (NRPA), the number of ships carrying radioactive cargoes has increased lately." LLOYD’S LIST,
13 January 2011, p 24
Busy MSC agrees SOLAS changes "Measures agreed at December’s meeting of the IMO’s Maritime
Safety Committee included amendments to SOLAS that will make the International Code for the
Application of Fire Test Procedures (2010 FTP Code) mandatory as from 1 July 2012. The MSC also
adopted amendments to SOLAS, introducing annual testing of AIS, updating pilot transfer arrangements
to improve safety aspects for pilot transfer and a new Chapter 9 of the International Code for Fire Safety
Systems (FSS Code), related to fixed fire detection and fire alarm systems. The whole package of
measures addressing the safety of lifeboat release and retrieval systems were referred back to an
intersessional working group." FAIRPLAY SOLUTIONS, January 2011, p 5
P&I clubs raise anchoring and mooring concerns "Anchoring and mooring are regularly undertaken on
board ships, but P&I clubs are concerned about a rising number of accidents caused by poorly trained
personnel, sometimes using badly specified or badly maintained equipment." pp 8-9
'Maintenance' death ups pressure on lifeboat front - By Adam Corbett "The seafarer who died in a
lifeboat accident on the 61,000-gt cruise ship Volendam (built 1999) was conducting maintenance rather
than the regular drills that have been linked to dozens of deaths over the past decade. But the incident is
still likely to add to the regulatory row over improving lifeboat safety." TRADEWINDS, 14 January 2011, p
39
On and off the hook “Approval of amendments to SOLAS, the LSA Code and associated guidelines on
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lifeboat on-load release mechanism have been deferred for a second time. The move by the 88
Maritime Safety Committee (MSC), held from 24 November to 3 December, met with the general approval
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of shipping industry observers at the International Maritime Organization.” SAFETY AT SEA
INTERNATIONAL, February 2011, p 11
5. MARITIME SECURITY
Somali pirates start the year with spate of attacks - By David Osler and Colum Murphy "An armed
standoff was under way on a German-owned combination tanker yesterday afternoon, after the crew
adopted citadel tactics following a boarding by Somali pirates off the coast of Oman. Reports relayed via
Falmouth Maritime Rescue Co-ordination Centre in the UK suggest that the pirates had smashed up
bridge equipment and that several warships in the area had been requested to proceed to the scene at
15°46’N, 59°49’E. The vessel has been named as 2010-built, 50,699 dwt CPO China, associated with
Hamburg-based Claus-Peter Offen. A company spokesman said that with the attack ongoing, no further
information was immediately at hand." LLOYD’S LIST, 4 January 2010, p 1
CPO China crew survive attack - By David Osler "The crew of a German-owned combination tanker
were all unharmed after a lengthy piracy ordeal off the coast of Oman on Monday ended following naval
intervention. The 2010-built, 50,699 dwt CPO China was boarded by pirates in the early afternoon local
time, with seafarers resorting to citadel tactics by locking themselves inside a strong point and contacting
the naval authorities for assistance. A spokesman for Hamburg-based operator Claus-Peter Offen said
that the standoff continued for around 10 hours until an Australian frigate arrived at the scene, at which
point the assailants departed. “They damaged some of the navigational equipment, although we have not
investigated the full extent of this yet,” the spokesman said." LLOYD’S LIST, 5 January 2011, p 2
Industry Viewpoint: Year of the seafarer or year of the pirate? - By Tom Ascot "Tom Ascot looks at
why existing naval policies may be encouraging piracy, rather than preventing it." LLOYD’S LIST, 5
January 2011, p 6
United Nations backs IMO’s anti-piracy effort - By Richard Meade "International efforts to tackle
Somali piracy are set to receive an injection of high-level political capital from the United Nations from
next month. A year-long programme spearheaded by the International Maritime Organization to better co-
ordinate the current sprawling multi-agency approach to anti-piracy measures will be formally launched by
UN secretary-general Ban Ki-moon in London on February 3. The high-profile backing from the top of the
UN, together with a public display of support from government representatives from all IMO member
states, is being pitched as a serious effort to correct the limited effectiveness of existing international
measures." LLOYD’S LIST, 7 January 2011, p 2
Plan to hit pirate bases supported - By David Osler "Danish shipowner grouping Danmarks
Rederiforening has come out in favour of calls to give international special forces the option of destroying
pirate bases on land in Somalia, as part of a wider drive to combat piracy. The organisation’s vice-
president Jan Fritz Hansen confirmed in a telephone interview with Lloyd’s List yesterday that he had
backed the plan on Danish television and radio broadcasts, with the stance appearing to gather a head of
steam behind it in what is an election year for the Scandinavian country." LLOYD’S LIST, 7 January 2011,
p2
Spread of piracy prompts west coast India rate premium - By Tom Leander "The extended arm of
Somali piracy has chafed its way into contractual discussions between owners and charterers fixing dry
bulk voyages to and from India’s west coast, writes Tom Leander. Brokers, owners and charterers say
that negotiations over which party should be responsible to pay a war risk premium to cover liability of
pirate attacks has become a constant feature in spot charter contracts covering this booming trade. In the
last year, the coal trade into India from Indonesia and Australia has soared. Exports of iron ore from the
nation’s west coast to China have remained robust despite state restrictions. Owners fear that increased
activity will draw Somali pirates into action closer to India’s west coast." LLOYD’S LIST, 7 January 2011, p
8
Niger Delta piracy ‘will escalate in 2011’ - By Adam Corbett "Tankers and supply ships are facing an
increased threat of hijacking off Nigeria, according to analysis by maritime-security firm Risk Intelligence,
which is predicting an escalation of violent attacks against ships this year. Although overall maritime
attacks in the Niger Delta in 2010 fell to just 58, as compared to 91 in the previous year, the bad news is
that there was an increased focus on offshore merchant shipping as the pirates spread out from their
usual sphere of operation. Risk Intelligence found that as a result of the failure of an amnesty
programme, militants are moving away from the inshore rivers and offshore kidnappings for ransom are
becoming more common." TRADEWINDS, 7 January 2011, p 39
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Industry Viewpoint: An inversion of values that allows piracy to thrive - By Michael Grey "Is it moral
relativism, or just feeble-mindedness that allows violent pirates to enjoy the same rights as the seafarers
they terrify with their indiscriminate use of weapons on the high seas?" LLOYD’S LIST, 10 January 2011,
p6
Georgia urged to intervene in hijack case - By Steve Matthews "Relatives of seafarers held hostage in
Somalia since last September are stepping up pressure on the Georgian government to intervene. To
date, the government has refused to negotiate with Somali pirates for the release of 15 Georgian
seafarers held hostage on board the tanker Olib G, which was seized in September last year. Georgian
deputy foreign minister Nino Kalandadze was reported as saying that although the government would not
engage in talks with pirates, it would assist in maintaining contact with the vessel’s owner and its lawyers.
In October it was reported that the pirates had demanded €15m ($19.4m) for the ship’s release but the
owner had only offered $150,000. The latest report suggests the pirates have demanded $1m for the
release of the 15 Georgian crew members." LLOYD’S LIST, 11 January 2011, p 2
Seafarers seized in robbery off Nigeria are set free - By David Osler "Three Filipino seafarers taken
hostage earlier this week after a robbery on board a combination tanker off the coast of Nigeria were freed
on Wednesday, according to a statement from the vessel’s Greek managers. It is unclear whether a
ransom has been paid. The 2009-built, 39,999 dwt Dominia was en route from Ghent to Lagos at the time
of the incident, laden with 39,175 cu m of unleaded gasoline. Millenia Maritime has confirmed media
reports that a criminal gang had boarded the ship in the early hours of Tuesday, abducting three men in
the process and heading towards the shore in one of the vessel’s lifeboats. The mariners where returned
yesterday and all 22 crew members were safe and well, it added." LLOYD’S LIST, 13 January 2011, p 2
Pirates continue to extend their reach "The 28 December seizure of the fishing vessel Vega 5 near
Beira, deep within the Mozambique Channel, is a really significant extension of pirate range that may be
connected to the pirates’ use of larger mother ships. The larger vessels (particularly trawlers) they are
now using are able to stay at sea for longer periods – which is the key point. The further south the pirates
go, the harder it will be for the navies of the world to provide any form of meaningful security." LLOYD’S
Get tough "In 2011 navies should do more to protect merchant shipping from the scourge of piracy.
There are almost 800 seafarers held captive on more than 40 vessels seized by Somali pirates. In spite of
the increased naval presence in the region, acts of piracy there and elsewhere in the world have
continued on a relentless upward trend for far too long. The penalty for piracy or attempted piracy used to
be death – today, life imprisonment would not be an unreasonable alternative." FAIRPLAY SOLUTIONS,
January 2011, pp 1-2
Pirates’ motherships extend attacks - By John Drake "Record numbers of larger boats see more ships
targeted off the coasts of India, Oman, Kenya and Tanzania. Somali pirates altered their area of focus in
2010 and extended their range to attack ships in waters previously considered ‘safe’. The year saw far
more attacks taking place off the coasts of India, Oman, Kenya and Tanzania than recorded previously.
The key factor which allowed for this increase in range was the use of motherships. Motherships are
boats larger than Somali skiffs, which are hijacked and used to transport pirates further out to sea. While
initially these were fishing vessels usually seized from Yemen, last year saw a rise in the number of
vessels with other nationalities being taken." LLOYD’S LIST, 14 January 2011, p 8
Pirates’ motherships extend attacks - By John Drake "Record numbers of larger boats see more ships
targeted off the coasts of India, Oman, Kenya and Tanzania. Somali pirates altered their area of focus in
2010 and extended their range to attack ships in waters previously considered ‘safe’. The year saw far
more attacks taking place off the coasts of India, Oman, Kenya and Tanzania than recorded previously.
The key factor which allowed for this increase in range was the use of motherships. Motherships are
boats larger than Somali skiffs, which are hijacked and used to transport pirates further out to sea. While
initially these were fishing vessels usually seized from Yemen, last year saw a rise in the number of
vessels with other nationalities being taken." LLOYD’S LIST, 14 January 2011, p 8
Maersk sets the anti-piracy pace - By Terry Macalister "The Danish giant’s move to appoint an anti-
piracy manager is an investment others should imitate. But the decision by AP Moller-Maersk to appoint
its own anti-piracy manager is a belated and laudable recognition that this is a big problem that will not go
away. The fireworks that went off from Sydney to Seville to celebrate New Year’s Eve have been
matched by physical “bangs” around the Middle East Gulf as the pace of piracy increased in the first two
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weeks of 2011. Around half-a-dozen attacks have been launched on ships so far this year, including one
on a vessel operated by John Fredriksen." TRADEWINDS, 14 January 2011, p 2
Continued lull in Nigeria piracy may hinge on elections - By Eoin O’Cinneide "Attacks on maritime
assets off Nigeria could increase this year if a raft of elections set for April throw up unfavourable results,
a security report claims. Offshore vessels and installations would most likely be targets for pirates should
the current amnesty in the West African country falter. The warning comes as the number of piracy
incidents in Nigeria and the surrounding region dropped at the end of last year and threat levels for the
beginning of 2011 remain at “low” and “moderate” in some areas. A continued lull in maritime crime
could, however, hinge on the outcome of three elections to be held on successive weekends in April, the
report from analyst Bergen Risk Solutions claims." TRADEWINDS, 14 January 2011, p 38
Leopard crew thought to be kidnapped by Somali pirates - By David Osler "The six-strong crew of a
Danish general cargoship laden with arms and explosives have probably been kidnapped by Somali
pirates without their vessel, military sources have told Lloyd’s List. The development is thought to be the
result of a one-off reaction to specific circumstances and is unlikely to mark a new tactic in the ongoing
anti-piracy fight in the Gulf of Aden. It is unclear whether or not the attackers were aware of the sensitive
nature of the cargo. It is known the 1989-built, 1,780 dwt Leopard came under fire from two skiffs last
Wednesday, and that the following day it was boarded by special forces personnel from Turkish frigate
Gaziantep." LLOYD’S LIST, 17 January 2011, p 2
Somali pirates step up hijackings - By David Osler and Colum Murphy "Somali pirates captured two
further vessels, with the seizure of a Greek bulker carrier yesterday and a South Korean chemtanker on
Saturday. The development is unlikely to affect freight rates, which already factor in piracy risk for vessels
transiting the Gulf of Aden. Piraeus-based manager Perosea Shipping has confirmed on Monday that
pirates had seized 1985-built, 52,163 dwt Eagle, bound for India ex-Aqaba laden with phosphates. Some
24 seafarers, all Filipinos, were on board. It is understood that none was injured during the attack, which
included the use of a rocket-propelled grenade. Meanwhile, two months after paying a record $9.5m
ransom for the release of the very large crude carrier Samho Dream, South Korea’s Samho Shipping has
been hit by another pirate attack." LLOYD’S LIST, 18 January 2011, p 2
Average payments rise as pirates grab $238m in 2010 - By David Osler "Somali pirates secured
aggregate ransoms of $238m last year, with average payments rising from $150,000 per ship in 2005 to
$5.4m in 2010, according to a new report. The overall cost of piracy worldwide may be as high as $12bn
per year, research from US non-governmental organisation One Earth Future claims. In a paper, The
Economic Cost of Piracy, the group estimates that additional insurance premiums cost the industry
anything up to $3.2bn a year, depending on assumptions about how many vessels take out war risk
cover. The cost of naval operations off the Somali coast is put at $2bn, while the bill for piracy trials and
imprisonment is thought to be around $31m." LLOYD’S LIST, 18 January 2011, p 2
Aponte calls for security in key Indian Ocean corridors - By Janet Porter "Gianlugi Aponte has
personally intervened into the fight against piracy with a proposal for secure corridors covering key routes
across the Indian Ocean. The Mediterranean Shipping Co chairman has drawn up a specific plan
designed to improve safety for commercial ships in the region following the hijack of one of the line’s
chartered vessels last month, and a number of unsuccessful attacks on some of its containerships and
cruise liners. He also revealed that MSC is considering the employment of armed guards on its ships
because of the growing threat of piracy incidents, many of which occur well away from the Gulf of Aden,
which is heavily patrolled by navy ships." LLOYD’S LIST, 19 January 2011, p 2
Dutch report finds ships need armed guards - By Julian Macqueen "A report commissioned by the
Dutch government has recommended that accredited armed guards should be allowed on board
vulnerable Dutch-flagged ships. “Our recommendations are an expression of the principle,” said Mark
Waanders, secretary of the committee of Peace and Security at the Advisory Council on International
Affairs, which produced the report. The public and private sectors should work together to turn the
recommendations into workable solutions, he told Lloyd’s List. The report identifies a range of issues,
such as rules of engagement, use of violence and the way incidents are recorded." LLOYD’S LIST, 19
January 2011, p 2
Danish owners demand piracy exit strategy - By Craig Eason "The Danish Shipowners’ Associa-tion
has urged international bodies to take more concrete action to build up local coastguard forces and to
develop an exit strategy. DSA vice-president Jans Fritz Hansen said recent developments had highlighted
the levels of sophistication shown by the pirates that were now using hijacked vessels as motherships and
were able to kidnap crews off ships. Mr Hansen has backed earlier calls for the development of local
coastguards and even the use of force against pirate bases in Somalia. He is now pushing for the
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International Chamber of Shipping to press for a stronger strategy from the international community,
including the International Maritime Organization and the UN." LLOYD’S LIST, 19 January 2011, p 2
Answer to piracy patterns is blown’ in the wind - By Roger Hailey "New research appears to confirm
the effects that seasonal weather changes have on the frequency of attacks by Somali pirates in the Gulf
of Aden and Indian Ocean, while there may also be increased piracy after ransom payments have been
made and vessels released. The study looked at a 42-week period from May 2009 to March 2010 using
data collected from the Piracy Analysis and Warning Weekly reports issued by the US Office of Naval
Intelligence. It was written by Risto Talas, research fellow at Hull University Logistics Institute and
Konstantinos Kasapoglou, MSc student at the School of Engineering and Mathematical Sciences, City
University." LLOYD’S LIST, 21 January 2011, p 4
Kidnap for ransom on rise off Nigeria - By David Osler "Piracy attacks off Nigeria fell sharply in 2010,
although paradoxically there was a dramatic turn towards kidnap for ransom, according to analysis from
Danish consultancy Risk Intelligence. A report from the consultancy suggests that there were 58 pirate-
related maritime security incidents in the West African country’s inshore and coastal waters last year, a
big drop from the 114 seen in 2008 and the 91 witnessed in 2009. However, it seems that militants have
switched their attention to hostage taking, with 18 kidnaps rather than the eight seen the two previous
years." LLOYD’S LIST, 21 January 2011, p 4
Pirates costing shipping billions - By Adam Corbett "Both the number of ships taken and ransoms
payments have soared as the bandits expand their remit. Despite an increased naval presence and the
improved security and intelligence measures taken by shipowners, Somalian piracy is still succeeding.
Two new reports this week show that not only are Somalian pirates taking more ships and crew but they
have increased ransom payments and are costing the industry billions of dollars. Lobby group Oceans
Beyond Piracy has taken a look at the economic costs of piracy and reports that ransoms have increased
by a whopping 59% in the past year as pirates expand operations and target higher-value tonnage."
TRADEWINDS, 21 January 2011, p 15
Korean ships ‘targeted’ by pirates - By Adam Corbett "A senior South Korean politician says she fears
the nation’s merchant shipping is being targeted by pirates following the capture of the 19,900-dwt
chemical tanker Samho Jewelry (built 2001) in the north-western Indian Ocean last weekend. National
Assembly member Song Young-Sun adds that the record $9m ransom paid out by Samho Shipping to win
the release of the 319,000-dwt VLCC Samho Dream (built 2002) late last year may have prompted the
latest incident. Speaking on CBS radio in Korea, she said there are rumours that Korean ships are being
targeted but that at present there is nothing the country’s navy can do in response once a ship is
captured. She noted that her Grand National Party is seeking a review of the terms of engagement."
TRADEWINDS, 21 January 2011, p 46
Softly, softly on pirates "Such is the degree of animosity many in the shipping industry rightly feel
towards piracy that some will positively welcome the deaths of eight Somali chemtanker hijackers at the
hands of South Korean commandos on Friday. Comparisons will be drawn instantly with the milquetoast
tactics of Nato and EU Navfor, which refrain from boarding captured ships, precisely lest anybody gets
hurt. On the rare occasions that pirates are apprehended, they are frequently told not to be such naughty
boys, and then are allowed to return home." LLOYD’S LIST, 24 January 2011, p 6
Industry Viewpoint: IMO to launch action plan on piracy - By Efthimios Mitropoulos "Piracy has, for
too long, been a thorny issue for IMO and the maritime community as a whole, with seafarers always
bearing the brunt of it. So it was, with seafarers in mind, the IMO Council decided the 2011 World
Maritime Day theme should be ‘Piracy: orchestrating the response’, with the aim of encouraging a
decisive and effective response to the scourge that is modern-day piracy." LLOYD’S LIST, 25 January
2011, p 6
Dobson to run private anti-piracy scheme - By David Osler "Dobson Fleet Management has been
awarded the contract to run Jardine Lloyd Thompson ’s controversial private navy scheme to protect
merchant vessels from piracy in the Gulf of Aden, the Cyprus-based shipmanager has confirmed. The
intention is to provide shipowners with a piracy solution favourably priced in relation to existing
alternatives, with the scheme offering both an armed escort vessel and insurance coverage on a flat-fee
premium, based on speed rather than value of the ship." LLOYD’S LIST, 25 January 2011, p 2
Maersk crews given anti-piracy advice - By Janet Porter "AP Moller-Maersk has revealed some of the
precautions taken by its ships when entering waters where pirates are known to operate. As well as
posting extra lookouts on the bridge, a minimum speed of at least 18 knots must be maintained at all
times, while the accommodation block is locked to prevent access from the outside. Fire hoses are rigged
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to repel any pirates that attempt to board, should the ship come under attack. Vessels must also register
with the naval authorities whose ships are patrolling the area, the company says in an article on tackling
the challenges of piracy, published in the latest issue of the company’s staff magazine, Maersk Post."
Increased use of security guards unlikely to cut insurance premiums - By Julian Macqueen
"Increased use of armed security guards on board ships threatened by piracy is unlikely to generate a
benefit on insurance premiums. Marine insurance sources say that since deals are negotiated individually
and details kept confidential, there is no way of knowing if paying less for war risks cover might be linked
to the presence of armed guards. “Confidentiality is a massive issue,” said Martin Hubbard, of London-
based insurance broker Tysers. “Shipowners don’t want to advertise the fact that they have armed guards
on board.”" LLOYD’S LIST, 25 January 2011, p 2
Unity in adversity “The plague of piracy is spreading across the Indian Ocean but, as Stephen Spark
found at a meeting in Mauritius, ports and states are fin ding common cause against the threat. As pirates
reach the outer edges of the High Risk Zones, the region’s states and ports say the solution lies on land in
Somalia.” PORTS AND HARBORS, January 2011, pp 32-33
Seafarer union calls for action on piracy - By Roger Hailey "Seafarers’ union Nautilus International
has called for a meeting with UK government ministers following new evidence that the threat to ships and
seafarers is “greater than ever”. A report from the International Maritime Bureau found that pirates
captured 1,181 seafarers and killed eight during 2010, and a total of 53 ships were hijacked. Naval
commanders and security experts have warned that Somali pirates are becoming more aggressive and
are using captured merchant vessels and their crews as motherships." LLOYD’S LIST, 21 January 2011,
p2
Somali pirates hijack Vietnamese bulker - By Julian Macqueen "Somali pirates have seized 22,835
dwt bulker carrier Hoang Son Sun approximately 520 miles southeast of the Omani port of Muscat. The
crew of the ship, which was not registered with the Maritime Security Centre for the Horn of Africa and
had not reported to the UK Maritime Trade Operation, are Vietnamese nationals and the vessel is
registered under the Mongolian flag. EU Navfor said that the carrier had a crew of 24 on board. The ship
is owned by Vietamese shipping company Hoang Son, which has confirmed to Lloyd’s List that the vessel
has been hijacked." LLOYD’S LIST, 21 January 2011, p 2
The Somali conspiracy “Far from being deterred by naval vessels patrolling as part of EU NAVFOR
operations, Somali pirates are intensifying attacks away from their own coast. Could it be that western
governments are reluctant to fight piracy in the Gulf of Aden because of a fear that Somalia would
become an Islamic State?” SHIPPING WORLD AND SHIPBUILDER, Dec/Jan 2011, pp 16-19
Biometric identity card system mired in delays - By David Osler "Biometric identification for seafarers
has been on shipping’s regulatory agenda ever since September 11, 2001, when the US fast-tracked it
through the International Labour Organisation with no votes against. But it appears in retrospect that
getting agreement in principle was the easy bit. At the time of writing, just 18 nations had signed up to
Seafarers’ Identity Documents Convention (Revised) 2003, colloquially known as ILO 185. All that such a
system is being asked to do is to convert fingerprints into a biometric template which will then be encoded
into a bar code on the seafarer’s identity document, known as an SID. Thus all seafarers will be issued
with a unique personal identification proof that can be used all over the world." LLOYD’S LIST, 27 January
2011, p 4
UK vows tougher action on pirates - By Roger Hailey "UK shipowners will be able to use “every force”
needed to combat piracy, shipping minister Mike Penning has told the industry. Speaking to a UK ports
audience, Mr Penning said: “In a perfect world, we would not dream of having armed security people on
board ships, but we do not live in a perfect world. I know for a fact that ships under my flag are using
private security services. Mr Penning said he was working with the Foreign Office and the International
Maritime Organization in an effort to ensure there was “a sustainable policy”. “I want the pirates caught, I
want them prosecuted - and I want them in prison,” he said." LLOYD’S LIST, 27 January 2011, p 2
IUMI urges swift end to threat facing crew - By Christopher Munro "International Union of Marine
Insurance president Ole Wikborg has accused the governments of maritime nations of prevaricating too
long over the the threat of piracy. Mr Wikborg, who is also a director at the Norwegian Hull Club, urged
governments to take urgent action to remove the threat of piracy from the seas." LLOYD’S LIST, 27
January 2011, p 2
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Call to set up East Africa courts and prisons for piracy crimes - By David Osler "Special courts and
prisons to prosecute and hold suspected pirates should be established in a number of East Africa
locations, according to a new report from the United Nations adviser on piracy issues. Jack Lang, a former
French government minister, told the UN Security Council that as things stood, nine out of 10 pirates were
freed on capture because there was no place to hold trials or imprison them." LLOYD’S LIST, 27 January
2011, p 2
Germany edges closer to armed guards onboard - By Patrick Hagen and Katrin Berkenkopf
"German owners are cautiously optimistic after a meeting with government representatives that their wish
to have armed officials on board their vessels as protection against pirates will be fulfilled. “We have
moved a small step forward,” said Max Johns, spokesman for Germany shipowners’ association VDR.
The German Ministry of Defence and the Ministry of the Interior were now ready to evaluate whether it
was possible to send German police or soldiers on board vessels, Mr Johns said." LLOYD’S LIST, 27
January 2011, p 5
Life, liberty and the pursuit of pirates "The storming of the Samho Jewelry should mark the end of
sterile debate and the start of an effective response. South Korea’s president, Lee Myung-bak, needed to
rebuild his credibility at home after aggressive behaviour from his northern neighbour. He found an
opportunity to do so earlier this month in an unlikely place: on a 10-year-old products carrier in the
Arabian Sea. The ship, Samho Jewelry, had been boarded by pirates and the lives of 21 seafarers (from
South Korea, Indonesia and Myanmar) threatened. The president’s backing of a military raid on the
vessel, which led to the killing of eight pirates and the seizure of five others, brought praise from
opposition politicians." FAIRPLAY, 27 January 2011, p 3
An intractable problem - By Neville Smith "It will only be possible to defeat Somalia’s pirates on land –
but this could leave the failed state in an even more unsafe position. Judging purely by the statistics, the
battle against piracy and armed robbery is being lost. Figures from the International Maritime Bureau
show that 2010 was a record year for hostage taking, with the waters off Somalia accounting for the lion’s
share of incidents. Average ransom payments to Somali pirates alone rose to a claimed $5.4M in the
same period, according to US think-tank One Earth Future, with additional insurance premiums costing
owners as much as $3.2Bn. In the IMB’s annual review, its report notes that the total number of attacks
against ships has risen every year for the past four years." FAIRPLAY, 27 January 2011, pp 4-5
Somalia drought may dry up piracy "Nature may have unexpectedly intervened to take some of the
string out of Somalian piracy. A severe drought in the south of Somalia may see piracy operations
reduced as residents flee the country for neighbouring refugee camps, insurers and brokers have been
told. Natznet Tesfay, head of African forecasting at insurance intelligence firm Exclusive Analysis, said
events on the ground in Somalia have thwarted the attempts of Islamic militias to seize control of the
piracy gangs. “The Islamic militia al-Shabaab had seen piracy as a good revenue stream and there were
concerns they would seek to control the country’s piracy operation to fund their armed conflict with the
Somali government.”" FAIRPLAY, 27 January 2011, p 18
Slow steaming offsets security toll "The steep cost of placing armed guards on board ships running
through the Gulf of Aden can be partially offset by the savings made by operating at a slower speed,
according to Anglo-Eastern Ship Management managing director Ashok Prasad. Some shipowners have
called for guards to join ships at Port Louis, Mauritius or Sri Lanka on westbound voyages and in Suez or
Djibouti on the eastbound route and stay on board for about five days." FAIRPLAY, 27 January 2011, p 20
Sanctions watchdog ‘blesses’ ransoms - By Greg Miller "The US’s Somali ransom vetting system
turns out to have a huge loophole. President Barack Obama’s emergency order targeting Somalis with
ties to terrorism and piracy sent shockwaves through shipping in April 2010. Obama’s ban on financial
assistance to certain Somalis created a perceived threat that ransom-paying shipowners could face
crippling US sanctions. But that fear proved unfounded. A system to comply with Obama’s order has
evolved among shipowners, insurers, lawyers and America’s sanctions watchdog, the Office of Foreign
Assets Control (OFAC)." FAIRPLAY, 27 January 2011, p 24
The ‘ultimate insanity’ "Blank Rome partner John Kimball voiced dismay on the “unbelievable” financial
and legal framework that has evolved for ransom payments. “There are now players in the industry
whose job is to facilitate ransom payments, so it has become almost a vested interest – which is the
ultimate insanity,” lamented Kimball. “The shipping industry, including law firms, has developed a whole
system to grease the wheels to facilitate ransom. That is definitely not the solution,” he asserted to
Fairplay. He acknowledged that owners must do everything possible to rescue crew, but noted that
ransom per vessel has doubled over the past year. “I’m firmly convinced that the industry is going in the
wrong direction.”" FAIRPLAY, 27 January 2011, p 24
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UN backs IMO piracy message "UN secretary-general Ban Ki-moon and his International Maritime
Organization opposite number Efthimios Mitropoulos will use World Maritime Day on 3 February to launch
a year-long programme to improve the response to piracy off the coast of Somalia and elsewhere.
Industry groups, while publicly supportive of the IMO and its work, are clearly exasperated that their
efforts are being undermined by the release of suspects and their immediate return to active duty. For Ban
and Mitropoulos, their most obvious measure of success will be whether they can whet political appetites
to support a new criminal process at a time when many governments are desperate to save money."
FAIRPLAY, 27 January 2011, p 25
Protection of a higher calibre "A film that can be applied to the inside of ships’ windows will make them
bullet proof, according to UK company Idarat Protection, following ballistic tests. The protective system,
dubbed Water Dragon Clear Composite, is applied by trained technicians and can be done in about 48
hours, either during a normal port call or by a riding crew." FAIRPLAY, 27 January 2011, p 26
Consultants weigh up citadel option "Citadels are most effective when used alongside other piracy
count-ermeasures onboard ship, according to security experts. “We use citadels in all our clients’ vessels
as they are invaluable,” said Graham Freeman, director of Elite Maritime Protection Services, which
provides armed guards/escort vessel assistance to commercial ships. On 5 November 2009, one of his
teams came under attack by armed pirates 200 miles south of Oman. The pirates were arrested by
coalition forces while trying to gain access to the bridge area. “Due to the citadel, anti-piracy preparation
and the training given to the crew by our team, there was no loss of life and the pirates were captured,”
said Freeman." FAIRPLAY, 27 January 2011, p 26
African trade pays the price for piracy - By Konstantin Tsolakis "East African ports bear the brunt of
Somali pirates’ effect on supply chains. In mid-2008, when the gravity of the threat Somali piracy posed
to shipping began to be felt, nobody could have anticipated how vast a portion of the Indian Ocean it
would affect. Recent hijackings have taken place nearer to India and Tanzania than to Somalia."
Shippers blast Brussels over box security - By Gavin van Marle "Shippers serving Europe have
criticised the European Union’s new container security regulations introduced at the beginning of the
month as having caused confusion among carriers and their customers. Under EU Regulation 1875/2006,
since January 1 all container shipping lines bringing goods into the customs area of the EU have been
required to lodge an entry summary declaration (ENS) with the customs authority of the destination EU
port at least 24 hours before the cargo is loaded at the non-European port. However, reports from shipper
bodies suggested some lines have extended that time-frame to as much as five days before loading,
which they claimed included providing information before the shipper was in possession of it." LLOYD’S
Pressure mounts to arm vessels - By Adam Corbett "Leading shipowner association and unions could
be set for a dramatic U-turn on their policy on arming ships as the piracy situation worsens and military-
style security companies are increasingly used by their members." TRADEWINDS, 28 January 2011, p 10
Fears of pirate retaliation follow retaking of 'Samho Jewelry' "Fears of further escalation in violence
have emerged following the retaking of the 19,000-dwt chemical tanker Samho Jewelry (built 2001) by
force by a South Korean Navy frigate, resulting in the death of several pirates. Pirates responded by
promising retaliation and death to Korean seafarers but some analysts suggests they are unlikely to take
such action." TRADEWINDS, 28 January 2011, p 10
UK court confirms ransom payments are not illegal - By David Osler "Ransom payments to pirates
are not illegal or contrary to public policy, the UK Court of Appeal confirmed last week in upholding an
earlier decision in Masefield vs Amlin . The decision from Lord Justice Rix also confirms that capture by
pirates does not render a ship a total loss, either constructive or actual, averting the potential for a deluge
of actual total loss claims, according to a lawyer who acted for the respondents. Chris Dunn, a partner at
law firm Waltons & Morse, said that the decision was significant in updating piracy law for the 21st
century." LLOYD’S LIST, 31 January 2011, p 2
Stena Bulk plants armed guards on three vessels - By Craig Eason "Stena Bulk has become the
latest shipowner to put armed guards on its vessels passing through the Gulf of Aden. The Swedish
tanker operator made the decision this week and currently has three vessels in the region with guards on
board. Stena Bulk chief executive Ulf Ryder confirmed the company had secured Russian guards after
requests from ships’ crews for added protection when transiting the region. Up to six heavily armed
14
personnel will be on each ship for north or south passages between the Suez Canal and a suitable point
south of the risk area." LLOYD’S LIST, 31 January 2011, p 2
Bristol is leading the way in Port Security Regulations 2009 - By Roger Hailey "West coast port
Bristol - currently planning a 1.5m teu container terminal - is leading the way on port security, being the
only UK maritime facility so far to have met the requirements of the Port Security Regulations 2009. A
spokesperson for the UK’s Department for Transport confirmed: “Bristol is the only ‘pilot’ port to be
designated under the Port Security Regulations 2009. “The remaining UK ports at which the regulations
will apply will be designated in two tranches. Planned completion for the first tranche is end of 2012 and
the second at the end of 2013.” Port of Bristol Co chief executive Simon Bird echoes the thoughts of many
in the UK ports industry, who thought the 2002 International Ship and Port Facility Security code would
prove the definitive regulations on security." LLOYD’S LIST, 31 January 2011, p 7
6. NAVIGATION AND COMMUNICATIONS

Teaming up for Strait Safety – By Kevin Vallance “While the introduction of the traffic separation
scheme in the Dover Strait led to a reduction in accidents, recent high-profile incidents have led to new
guidance being developed for adoption at IMO. This article explains the process, and shows that when
the industry pulls together, it can come up with positive results.” SEAWAYS, January 2011, LLOYD’S
LIST, 5 January 2011, pp 24-25
New York ports could raise Bayonne Bridge roadway - By Rajesh Joshi "Challenge from Panama
Canal spurs bid to accommodate post-panamaxes. Raising the roadway span of the Bayonne Bridge
rather than deepening the channel depth or digging a tunnel has emerged as the Port Authority of New
York and New Jersey’s preferred option to addressing the challenge posed by the Panama Canal
expansion. The decision follows a grant of up to $1bn by the port authority’s board in its capital planning
process in October last year to fund the Bayonne Bridge solution, which is designed to allow post-
panamax ships to transit under the bridge after 2014." LLOYD’S LIST, 6 January 2011, p 2
Panama Canal evolution on track "Shipping routes expected to be revolutionised in three years. The
Panama Canal Authority (ACP) is entering 2011 with more optimism – fully expecting volumes to rebound
at a faster rate from recession lows. The agency now predicts volume of 304.5M tons (measured by the
Panama Canal Universal Measurement System, or PCUMS) for FY11. That would represent a 1.5%
increase compared with the previous year, which runs from October to September." pp 32-33
Work proceeds slowly on IMO polar code "There is the hope, say ice class experts, that the work of a
correspondence group organised by the International Maritime Organization will lead to a set of
mandatory polar guidelines in 2012. The problem, in typical IMO fashion, is no-one knows which existing
guidelines will become mandatory, and which will stay recommendations. There is also uncertainty over
how the unified ice class rules developed by the International Association of Classification Societies will
be utilised. It is hoped that these issues will be resolved by 2012, but says ABS research director Roger
Basu, the only certain development so far has been the inclusion of Antarctic as well as the Arctic in the
IMO’s scope." LLOYD’S LIST, 13 January 2011, p 4
Reliance on AIS blinds ferry master to safety risk - Jeffrey Thomson "Mr Justice Teare’s recent
Admiralty Court judgment is a salutary reminder of the importance of proper bridge management and
effective radar watchkeeping in conditions of restricted visibility. Mr Justice Steel indicated: “The primary
instruments for safe navigation must remain an alert and systematic visual and radar lookout. Information
derived from AIS may be erroneous.”" LLOYD’S LIST, 19 January 2011, p 7
An ECDIS State of Mind – By Andy Norris “In the period 2012-2018, many ships will be compulsorily
fitted with ECDIS - the Electronic Chart Display and Information System. It is estimated that around 60%
of ships already have an Electronic Chart System (ECS) onboard but these are not approved by IMO and
can only be used as a secondary aid to the full use of paper charts.” NAVIGATION NEWS, Jan/Feb 2011,
pp 21-23
Alphaliner says 18,000 teu vessels viable - By Gavin van Marle "The 18,000 teu containerships
thought to be shortly placed on order by AP-Moller Maersk will come nowhere near to being the largest
possible box vessels to transit the Malacca Straits, according to new research from Alphaliner. The Paris-
based consultancy yesterday released a report that suggests boxships of nearly double that could
effectively transit the approach waters of the world’s largest transhipment hub, Singapore. The Singapore
Straits has a maximum draught of 21 m, which has effectively limited bulk carriers and tankers to around
the 240,000 dwt mark, but Alphaliner claims that due to the much lower cargo density of a box vessel, a
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containership with a 21 m draught could have a carrying capacity of 35,000 teu." LLOYD’S LIST, 26
January 2011, p 3
7. POLLUTION/ENVIRONMENT
US ups the ante on ballast water - By Adam Corbett "There is little time left for owners to kit out
newbuildings before new federal rules on ballast water go into force. Shipowners will have to act fast to fit
newbuildings with ballast-water treatment systems (BWTS) following the US Coast Guard (USCG)’s
decision to finalise its rules for ballast-water treatment. The USCG rules are expected to go into force in
April and, contrary to expectations, its final wording is now regarded as fairly similar to the standards laid
out in the international ballast-water convention developed by the International Maritime Organisation
(IMO)." TRADEWINDS, 21 January 2011, p 46
Tanker man proposes a tax on funnel emissions - By Adam Corbett "Tanker-industry veteran Jack
Devanney, an outspoken critic of shipping regulators’ efforts to reduce carbon emissions, has put the first
case forward for a tax on carbon-dioxide (CO2) emissions measured directly from the stack as the way
forward." TRADEWINDS, 21 January 2011, p 47
New York in deep water over new ballast regulations - By Gavin van Marle "At the beginning of next
year, New York State is set to introduce the toughest ballast water treatment regulations in existence,
some 100 times the standards set down by the International Maritime Organization’s ballast water
management regulations adopted in 2004, despite the fact that the technology capable of fulfilling New
York’s requirements has yet to be developed. The issue of invasive marine species transported in ships’
ballast is a problem the world over, but it is a particularly emotive one in the northeastern regions of the
US, given their proximity to the Great Lakes. Not only do invasive marine species have an environmental
impact on the huge natural bio-diversity of the Great Lakes, but a massive economic cost as well."
Wisconsin backtracks on ballast policy - By Gavin van Marle "The state of Wisconsin was one of the
states that sought far higher ballast water regulations than the US federal government proposed.
However, on Wednesday, Wisconsin will hold a public hearing as officials explain their reasons for looking
to backtrack on a policy that has received wide public support, and modify the requirements introduced
last February for general permits issued to ocean-going vessels." LLOYD’S LIST, 24 January 2011, p 4
Is Brussels up to the task of setting CO2 legislation? - By Justin Stares "Those in the European
Commission who are busy drawing up legislation on the inclusion of the maritime industries within the
European Union emissions trading scheme are probably slightly depressed. The latest discovery of
“security breaches” in the existing EU emissions trading scheme has undoubtedly given its credibility a
good knock. News that criminals last week hacked into the accounts of legitimate traders, stole
allowances worth millions and quickly sold them on the spot market raises questions as to whether
Brussels is up to the task." LLOYD’S LIST, 25 January 2011, p 4
Sweden to study effect of emission restrictions - By Craig Eason "The Swedish government is set to
assess if the future sulphur emission rules for shipping will have a negative effect on its businesses. A
number of heavy industries in Sweden, such as mining and forestry, rely on shipping for exporting goods.
Shipowners and manufacturers say that the stringent restriction on SOx emissions set by the International
Maritime Organization will force them to switch to expensive distillate fuels and then increase freight rates
to remain in profit." LLOYD’S LIST, 28 January 2011, p 2
Green lobby keen on California shortsea plan - By Gavin van Marle "Environmental lobby group
Friends of the Earth said it would support plans to introduce shortsea shipping to California, if a number of
its recommendations over how the services should operate are met. Developing shortsea services that
result in cargo moving off the US road network is one of the key objectives of the Maritime
Administration’s Marine Highways programme - but a Friends of the Earth report said the environmental
benefits may not be as great as the shipping industry claims. Report author John Kaltenstein said:
“Shortsea shipping has the potential to be greener than other types of freight transport." LLOYD’S LIST,
31 January 2011, p 2
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8. PORTS AND HARBOURS
Spain’s PSCs are used to make money "Spanish Port State Control authorities are making money from
their inspections, alleges Nicolas Wirth, head of Geneva’s Doris Maritime Services. His claim comes as
the Paris MOU starts its new inspection regime, intended to focus inspections and reward quality
shipping. In a note to Fairplay, he drew attention to a report circulated in November by the P&I club
Skuld, which claimed that, due to the current financial situation in Spain, “the Spanish government
urgently needs income.” The report quoted a club correspondent as suggesting that “the Spanish
government has instructed the head office of the PSC in Madrid to trace, arrest and fine vessels in order
to get extra income.”" p 28
Low-risk vessels are likely to bypass Paris MoU checks - By David Osler "Many ships on low-risk
flags will go through 2011 without getting a single inspection in European ports, Paris Memorandum head
Richard Schiferli said on Friday, the seventh day of the New Inspection Regime which entered into force
on January 1. Some shipowners have been worried that they stand to be unfairly penalised by the shake
up, under which vessels can be banned from European ports for periods from three months upwards, in
certain circumstances after just two detentions. Crucial to the weightings now in operation is the quality of
the flag state, and Mr Schiferli said on Friday that the list of flags deemed low risk had grown from just 11
at the start of December to 22 as of that day. Belgium, China, France, Hong Kong, Ireland, Italy, Japan,
Luxembourg, Marshall Islands, Russia and Singapore join Cyprus, Denmark, Germany, Greece, Liberia,
Netherlands, Norway, Poland, Spain, Sweden and the UK in this category." LLOYD’S LIST, 10 January
2011, p 3
Shortsea shipping looks to Blue Belt to ease port access "The programme should enable ships to
enter and leave port more easily. It could turn out to be the breakthrough that the European Union
shortsea shipping community has been waiting for. The EU’s Blue Belt programme, which was given the
go-ahead by the council of transport ministers in early December, aims to create a “European maritime
space without barriers”, enabling ships to enter and leave the ports of member countries with the same
ease as lorries crossing road frontiers. For the moment, ministers have launched a pilot project in
collaboration with member states and the European Maritime Safety Agency, which is stepping out of its
normal safety role to take part in its development." LLOYD’S LIST, 13 January 2011, p 22
Brisbane to remain shut until Sunday - By Gavin van Marle "Shipping operations at the Australian port
of Brisbane are unlikely to resume until Sunday at the earliest, according to a statement from the port
authority, which said conditions continued to be too dangerous. “Subject to results from our hydrographic
surveys, river conditions and navigational hazards, the earliest possible movements of priority shipping in
the port would be Sunday, January 16,” it said. The port added that once conditions had improved,
shipping movements would be prioritised, although it warned that the main shipping channel may continue
to be blocked by debris and sunken hazards for some time afterwards." LLOYD’S LIST, 14 January 2011,
p2
Cargo surveyors hounded in Asia - By Neil Connor and Adam Corbett "Claims that police and
shippers are intimidating surveyors add to concerns about potentially lethal nickel-ore cargoes. Shocking
pictures obtained by TradeWinds reveal the worrying trend of liquefied nickel ore being loaded onto
bulkers and now some shippers are being accused of intimidating cargo surveyors with violence and even
death threats. The loss of three vessels and 44 lives in just over a month highlighted the dangers of
loading nickel ore and protection-and-indemnity (P&I) clubs immediately warned operators to have the
moisture content of cargo independently tested. But surveyors in Indonesia and the Philippines have told
Trade-Winds that while there are many professional exporters, at some locations they are facing
harassment from shippers and are being prevented from doing their job." TRADEWINDS, 14 January
2011, p 3
Lay-ups look likely into 2012 “Seasonal lay-ups of container ships are going to be repeated until the
second quarter of 2012 when global slot supply and demand are expected to even out, according to
Germany’s Institute of Shipping Economics and Logistics (ISL).” PORTS AND HARBORS, January 2011,
p5
Proposed cuts for US foreign scanning “The US government is proposing deep cuts in funds to check
containers destined for USA by scanning them in the foreign ports of origin. Under the proposal, funding
for the International Container Security (ICS) and the Secure Freight Initiative schemes would be almost
halved to $83M in 2011, from $162M in 2010, according to a report from the bipartisan Congressional
Research Service.” PORTS AND HARBORS, January 2011, p 8
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Security from both sides “IMO’s Chris Trelawny would like to see ports adopting a collaborative and co-
operative approach to security that looks seaward as well as landside. With measures in place that are
both effective and proportionate, ports can play their part in assuring national security.” PORTS AND
HARBORS, January 2011, pp 12-13
UK law could lift the lid on ports’ commercial secrets - By Roger Hailey "Confidential port contracts
and agreements previously filed away from prying eyes may soon become available for public scrutiny in
the UK. The Westminster government’s Ministry of Justice has put forward proposals to extend the
Freedom of Information Act to harbour authorities in England and Wales, a move which could lift the lid on
commercial contracts within an industry where the private sector is a major player." LLOYD’S LIST, 17
January 2011, p 7
Valencia tests system to ease congestion - By Roger Hailey "The Spanish port of Valencia and China
Shipping have helped trial Flagship-RTS, a real-time optimisation system to reduce congestion in
container terminals, writes Roger Hailey. The system is able to plan transport resources, container
repositioning movements and inventory levels, leading to fewer “empty miles” and lower carbon dioxide
emissions. Julian Stephens, technical development manager at MJC², the sub-project leader, said: “The
system has shown that it is capable of reducing wasted repositioning movements by up to 25% while
saving 10%-20% of transport costs through improved planning and faster response times.”" LLOYD’S
Brisbane port starts to reopen - By Gavin van Marle "The flood-hit Australian port of Brisbane partially
reopened to shipping movements yesterday and is expected to be fully operational tomorrow. Fears
receded that the deluge that has seen the state of Queensland become a disaster zone could also affect
the supply chains serving the entire country, as ships might be rerouted to already-congested Sydney and
Melbourne . The port said that nine vessels had berthed at its Fisherman Islands facilities yesterday
morning, with all berths up to the Gateway Bridge expected to open by Wednesday." LLOYD’S LIST, 18
January 2011, p 5
Port clean-up effects unclear "Anti-pollution schemes could mean big changes for vessel operators.
Tighter pollution regulations on trucks that haul boxes in and out of US ports could eventually put pressure
on vessel operators to readjust their supply chains. Programmes barring older, dirtier trucks from port
areas have spread throughout the US after gaining ground at the ports of Los Angeles and Long Beach in
southern California several years ago. “If costs increase significantly for vessel operators, they may well
move operations to alternative ports and may even use the Panama Canal to access east coast ports,”
the Harbour Trucking Association said in a 4 January court filing in support of the ATA." FAIRPLAY, 20
January 2011, p 30
Port Klang to end bagged cargoes in three months - By David Osler "Malaysia largest container port
is to stop handling all bagged cargo in three months’ time, and has ceased handling dangerous or
hazardous bagged material with immediate effect, according to a circular to port users last week. Capt
Padman wrote. What is more, damaged bags containing hazardous substances could cause serious and
even fatal injuries to stevedores." LLOYD’S LIST, 24 January 2011, p 2
Brussels names core ports of next 20 years - By Roger Hailey "Independent research has identified
which European maritime hubs can benefit most from the Trans-European Transport Network of core
infrastructure corridors for passengers and freight. The report, for the European Commission’s
Directorate-General Mobility and Transport, recommends 57 “ports, port pairs or port groups”, which
together handle 2.5bn tonnes annually, some 65% of the total traffic throughput by European ports. It is
estimated that total growth in all European port volumes to 2030, after allowing for an expected reduction
in crude oil traffic, will increase by 650m tonnes, an increase of 16.3% over the current yearly volume of
3.9m tonnes." LLOYD’S LIST, 26 January 2011, p 2
Hamburg gears up for giant boxships Ports - By Patrick Hagen "Germany’s biggest port recognises
its recovery can only continue if it is ready for the next generation of container vessels. Ultra large
containerships with a capacity of 18,000 teu or more only make sense for a small number of carriers, a
leading German port manager has suggested. “The top three carriers can make use of them, but that’s
about it,” says Stefan Behn, a member of the management board of Hamburg-based terminal operator
HHLA and the man responsible for the group’s container business. “An 18,000 teu ship is only useful if it
is full. If you do not have the necessary volumes to fill it, it makes no sense,” he says." LLOYD’S LIST, 27
January 2011, p 4
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9. SEAFARERS
Crewing needs put a premium on qualified masters - By Craig Eason "Tanker operators have been
forced to entice senior retired officers back to sea to meet the crewing requirements demanded of oil
majors wishing to charter their tonnage. A continued sticking point between the oil majors’ safety
requirements and Intertanko, the tanker lobby group, is the crew matrix requirement onboard vessels. It
calls for a number of combined years of experience from senior officers, something some tanker operators
are struggling to meet. While there is a focus on the safety and security of the vessel, the crew matrix is
also an important part of the demands that an oil major places on the tanker owner. Even the most
modern and safely built vessel becomes a liability when in the hands of an inexperienced master."
A continuing tight labour market forecast “There is a 2% shortage in the supply of officers this year to
cope with the higher demand. However, there is a fine balance between the demand and supply ratio for
ratings, a comprehensive seafarer study has found.” TANKER OPERATOR, November/December 2010,
p6
Crewing costs to continue to rise “Vessel operating costs are expected to rise by 3.2% per cent this
year and by 3.5% in 2011.” TANKER OPERATOR, November/December 2010, p 7
Brussels plans end of UK pay opt out for European crews - By David Osler "Brussels appears set to
order Britain to bring pay for all European Union and European Economic Area seafarers into line with
domestic rates, in what would mark a partial end to the controversial opt-out from race discrimination laws
enjoyed for decades by Red Ensign shipowners. The Chamber of Shipping warned that any such move
would cause “significant damage” to the UK flag, and ultimately to EU shipping as a whole, with a large
number of operators certain to respond by flagging out." LLOYD’S LIST, 6 January 2011, p 1
Policy rethink for Malaysia "For all its attributes, seafaring is not a sought-after job in Malaysia.
Evidence from the Maritime Institute of Malaysia shows many Malaysian-registered vessels are manned
by foreign crews. The reasons for this shortcoming range from family considerations to health, welfare
and security matters. The Malaysian government persistently emphasises its aspiration to shape the
country into a leading maritime nation. But while this has been stated as a policy several times, there is
lack of drive to move it in a clearer direction." LLOYD’S LIST, 13 January 2011, p 27
Shipowners ‘reluctant’ to back seafarer welfare group - By Colum Murphy "The head of the German
Seamen’s Mission in Hong Kong has slammed shipowners for paying lip service to supporting seafarers
and warned that if funds are not more forthcoming, the mission may have to shut down. The Reverend
Martina Platte, port chaplain for the mission, said shipping companies had been “really reluctant” to come
forward with monetary support to keep the centre operating." p 5
Shipowners ‘reluctant’ to back seafarer welfare group - By Colum Murphy "The head of the German
Seamen’s Mission in Hong Kong has slammed shipowners for paying lip service to supporting seafarers
and warned that if funds are not more forthcoming, the mission may have to shut down. The Reverend
Martina Platte, port chaplain for the mission, said shipping companies had been “really reluctant” to come
forward with monetary support to keep the centre operating." LLOYD’S LIST, 14 January 2011, p 5
Straight talking on seafarer training - By Anna Healy Fenton "While employing seafarers from around
the world, India is still the cornerstone of Anglo-Eastern’s recruitment. “We get 2,000 applications for 120
cadets,” says Anglo-Eastern Chief Mr Cremers. “That allows us to be selective. India is an extremely good
recruitment ground for officers. If companies want properly trained, properly educated officers, I don’t think
there’s any alternative to India.”" p 11
STCW changes look to training needs - By Steve Matthews "Although most of the initial attention
following adoption of the amendments to the Standards of Training, Certification and Watchkeeping
Convention was focused on the agreement on rest hours, making it compatible with the Maritime Labour
Convention 2006, there were also wide-ranging changes agreed to training and certification requirements.
Amendments due to come into force at the beginning of 2012 will require extensive revisions to some
training programmes and development of new schemes covering additional requirements, such as
leadership training." LLOYD’S LIST, 27 January 2011, p 3
EU legal action over pay ‘unfair’ - By David Osler "Under a procedure known as a reasoned opinion,
employment commissioner Lazlo Andor is threatening to take the UK to the European Court of Justice
19
unless it brings salaries for all European Union and European Economic Area seafarers into line with
domestic rates. Significantly, the changes will not apply to officers and ratings from the most popular
labour supply countries in the third world. But even that stipulation may backfire on the industry in public
relations terms, by prompting accusations of lingering colour-based racism. The Chamber of Shipping has
previously warned such a step would cause “significant damage” to the UK flag — and ultimately to EU
shipping as a whole, with a large number of operators certain to respond by flagging out." LLOYD’S LIST,
Worldwide supply and demand for seafarers “BIMCO and the International Shipping Federation (ISF)
have published the results of their latest comprehensive study of the worldwide supply and demand of
seafarers, presenting their conclusions, on 30 November to governments attending the IMO Maritime
Safety Committee meeting in London.” BIMCO BULLETIN, December 2010, p 6
Condition of abandoned crew a 'disgrace', says ITF - By Adam Corbett "Crew on the 3,300-dwt
general cargoship Most Sky (built 2006) remain in distress two months after the Turkish ship was arrested
in the UK port of Birkenhead with conditions so poor that crew were forced to use a kebab cooker as a
heater, according to unions. Officers' union Nautilus International says the owner of the ship, which is still
detained in Birkenhead, is refusing to conduct repairs on it, so it cannot continue to trade, leaving several
crew with no alternative but to stay on board." p 47
10. SHIPBUILDING AND RECYCLING OF SHIPS
Hazardous material to be a bigger factor in secondhand vessel values - By Liz McCarthy

"Inventories of hazardous materials will increasingly be used as a negotiating tool in the pricing of
secondhand vessel sales as the awareness and removal of harmful substances on ships becomes a more
common practice. The value of a vessel could be reduced if there was a large volume of a hazardous
material on board, such as asbestos. That is because the cost of removing dangerous substances would
be reflected in a ship’s price, Germanischer Lloyd lead auditor Jens Rogge told the Capital Link Green
Ship Recycling seminar." LLOYD’S LIST, 17 January 2011, p 5
Indian ship-recycling yards striving for green certification - By Liz McCarthy "Nearly 40% of India’s
ship-recycling yards have attained certification from the International Organisation for Standardisation
showing they are operate facilities that undertake safe and environmentally sound operations. Of the total
of 175 breaking yards in operation in India, 65-70 are ISO-certified, according to the world’s largest cash
buyer GMS. This number is set to increase as a handful of Western and Japanese development banks, as
well as non-governmental organisations, work towards growing India’s green recycling capacity."
Yard blast halts all Bangladesh breaking - By Hal Brown "Progress to resume shipbreaking at
Bangladesh has stalled after an explosion on January 18 at a Chittagong yard killed four workers and
possibly 26 others. The NGO Shipbreaking Platform said that Bangladesh’s High Court issued an
immediate halt to further shipbreaking in the country, which had already been limited to permitted
companies since the April 2010 ban on the industry on environmental and safety grounds. “After this
incident, the court decided to go against the Bangladeshi government and say they had to stop
shipbreaking right now,” a spokesperson for the Brussels-based human rights group said." LLOYD’S
Green recycling momentum builds "Momentum is building behind the campaign for voluntary
implementation of the technical requirements of the Hong Kong International Convention for the Safe and
Environmentally Sound Recycling of Ships. Intenational shipowners’ associations, including the
International Chamber of Shipping, Bimco and Intertanko, are supporting the move that could see key
requirements for green recycling in place before the convention is formally ratified." FAIRPLAY, 27
January 2011, pp 22-23
11. SHIPPING
Oil majors to take harder line on ship vetting - By Craig Eason "An overall tightening of standards is
on the way as the impact of the Deepwater Horizon disaster cascades through the industry. Frontline
chief executive Jens Martin Jensen told investors that the vetting inspection regime will likely help remove
excess tonnage from the pressed very large crude carrier market, which has been swamped by a
combination of newbuildings and depressed trade. The indication was that younger ships would be
20
preferred by the oil majors, pushing older vessels - perhaps vessels only 15 or 20 years old - towards the
scrap yard." LLOYD’S LIST, 5 January 2011, p 4
European cruise sector fearful as EU mulls tax harmonisation plan - By Justin Stares "Plans to
harmonise value-added tax on transport have triggered a power struggle within the European
Commission. Officials in the commission’s directorate-general for transport (DG Move) say taxation rules
on international passenger transport are “rather onerous” and too fragmented. On some services and
products, such as onboard food and drink, VAT is not levied at all whereas other transport modes charge
VAT according to the distance travelled. DG Move is proposing to “align taxation with environmental
goals” and “to harmonise VAT levels across transport modes on international passenger transport inside
the European Union”. The plan has been revealed in a leaked copy of the upcoming White Paper on the
Future of Transport." LLOYD’S LIST, 6 January 2011, p 1
Deutsche Bank sounds positive note on ship finance - By Julian Macqueen "While the ship finance
banks have taken a bit of bashing in the maritime press for their lack of presence in the market, at least
one ship financier is looking at the New Year with a bit more positivity. Simon Booth, who moved from
Citigroup in September to become joint global head alongside Ralf Bedranowsky at Deutsche Bank’s
shipping arm, said that his positive outlook is compounded by the fact that Deutsche Bank is one of the
few ship finance banks in a position to operate as a lender and as an investment bank." LLOYD’S LIST,
Bill for Somali piracy could hijack global economic development - By Steve Matthews "Substantial
economic losses from rerouting and reduced traffic on the Asia-Europe route could hit $30bn. There have
been studies estimating the direct costs of piracy, including the increased cost of insurance cover, costs of
preventative measures such as shipboard equipment and additional security personnel, and the cost of
paying ransoms and other associated costs. Writing in the latest issue of Maritime Policy and
Management, which is devoted to maritime security, Peter Marlow, of Cardiff Business School, made a
key point that any measures adopted to address piracy and terrorism must cover the whole of the
international logistics supply chain and not just the shipping component of distribution channels."
India sets out 10-year maritime blueprint - By Roger Hailey "India has launched a comprehensive 10-
year maritime policy agenda for growth whose target issues include port capacity, the Indian flagged fleet,
shipbuilding, P&I and seafarers. One initiative in the 450-page Maritime Agenda 2010-2020 document is
to create total Indian port capacity of around 3.2bn tonnes to handle forecast traffic volumes of 2.5bn
tonnes by 2020. Another aim is to increase Indian flag and Indian controlled vessel tonnage and to raise
the share of Indian ships in transporting the nation’s import-export trade." LLOYD’S LIST, 14 January
2011, p 2
Luxembourg to sign labour convention - By Gavin van Marle "Luxembourg is the latest flag state to
indicate that it will sign the International Labour Organisation’s Maritime Labour Convention 2006 on
seafarer employment. According to the ILO, Luxembourg’s Minister of Economy and Trade Jeannot
Krecké said that Luxembourg might be ready to ratify the ILO Maritime Labour Convention 2006 by May
2011. “The Luxembourg flag will have to be a flag of quality,” he said." LLOYD’S LIST, 17 January 2011, p
2
UK coastguard prepares to enter into new age of austerity - By David Osler "Britain's Maritime and
Coastguard Agency is about to witness the sharpest cuts to its resources since those suffered by its
predecessors in the Thatcher years. Recently appointed chief executive Admiral Sir Alan Massey has
been mandated by the Department of Transport to slice the budget by 22% over the next four years, in
order to achieve savings of £80m ($127m) by 2015. This is obviously going to mean pain, with hundreds
of jobs to go, including 226 of the 600 or so that work for the coastguard service. Moreover, a contract
with a private company for the provision of 24/7 emergency towing vessel cover nationwide will not be
renewed when it expires in September. While both Adm Massey and UK shipping minister Mike Penning
are adamant that this can be achieved without compromising safety standards, others are not so sure."
Brussels imposes financial ban on Côte d’Ivoire ports - By David Osler "European Union-registered
ships and EU companies have been barred from all new financial dealings with the two main cocoa-
exporting ports in Côte d’Ivoire, under sanctions imposed after last November’s disputed election.
Although full details were not immediately clear last night, the ruling is understood to apply to Abidjan,
where France’s Groupe Bolloré holds the port concession among its many interests in the former French
colony, and San Pedro. The move will also have an impact on adjoining countries, as Abidjan serves as a
regional hub for Francophone West Africa. EU sources told Reuters that the decision had been taken
21
because revenues from the ports provides funds to the government of Laurent Gbagbo, which it considers
illegitimate." LLOYD’S LIST, 18 January 2011, p 1
Brussels transport directorate faces further restructuring - By Justin Stares "Of key interest to
industry will be the fate of maritime director Fotis Karamitsos, following the next round of musical chairs.
Mr Karamitsos, perhaps the best known official in DG Move, joined the commission when Greece became
a member state in the 1980s and is considered a supporter of both industry and the International Maritime
Organization. He has played a key part in the drawing up of much of the past decade’s maritime
legislation." LLOYD’S LIST, 18 January 2011, p 2
New code brings more opportunities to Turkey - Steve Matthews "Turkey's National Assembly has
approved the New Turkish Commercial Code, which includes some significant changes affecting shipping.
The changes will generally bring Turkish law closer into line with international conventions and practice,
making it easier for international shipping companies and charterers to conduct shipping business and
finance in the country and involving Turkey-flagged ships. The new code is scheduled to come into force
at the beginning of July 2012." LLOYD’S LIST, 20 January 2011, p 2
Ship registries: Panama’s quality drive pays dividends "Despite the challenges of rising quantity,
Panama’s flag is sticking to its focus on quality. Panama, the world’s largest ship registry, is hoping to
build upon recent gains in Paris MoU status and attain a place on the coveted ‘white list’, Panama
Maritime Authority (AMP) director of merchant marine Alfonso Castillero told Fairplay. To become a
member of this exclusive circle, a flag must not exceed an average detention rate of 4.5% over three
years, explained Castillero. “Panama has reduced its average detention rate from 7.95% in 2008 to
6.01% in 2009 and to 3.18% during the first 11 months of 2010, which means we are approaching the
white list,” he reported." FAIRPLAY, 20 January 2011, pp 16-17
Ship registries: Marshall Islands’ Wall Street view "Having corporate structures familiar to US
investors proves key to registry’s success and growth. Shipowners launching public companies in tough
economic times are finding that the Registry of the Republic of the Marshall Islands (RMI) offers an
advantage over many of its competitors: a corporate structure well known to Wall Street investors. RMI is
modelled on the laws of the state of Delaware, where many US and international companies register
when listing on the New York Stock Exchange, NASDAQ and other exchanges." FAIRPLAY, 20 January
2011, p 17
Ship registries: Liberia issues fresh call for co-operation on standards "Scott Bergeron, chief
operating officer for LISCR, which runs the Liberian Registry, has little time for flags that fail to comply
with required standards. He told Fairplay the way forward is through “a high level of collaboration and co-
operation”, and this is well understood by shipowners and operators, crews, port state control and other
partners. “Put simply, there should be no such thing as a non-compliant administration,” he said."
Ship registries: The Bahamas cruises into new decade "The Caribbean minnow has focused its
attention on cruise ships and yachts. The Bahamas register has grown rapidly since the country’s
government passed the Merchant Shipping Act of 1976. Now one of the largest flag states in the world,
the Bahamas flag fleet aggregated only 1M dwt at the time of passing of the act. It is now a major register
for cruise liners. Earl Deveaux, the minister responsible for Bahamas Maritime Authority (BMA) relations,
said: “Global shipping is expanding rapidly in Southeast Asia, Africa and South America, and because of
the location of the Bahamas, there’s every good reason to think we should be growing at 8-10% a year, in
tandem with the growth in shipping as it expands.”" FAIRPLAY, 20 January 2011, p 19
Ship registries: Belize revamps registry framework "Belize has enacted changes to make its flag
regime more appealing to shipowners. The International Merchant Marine Registry of Belize (IMMARBE)
retooled its legislation in November to facilitate the registration of vessels and ease the way for
shipowners to obtain financing. The so-called ‘new act’ “gives confidence and security to financiers
through its modern system of mortgages and liens, while being friendly to owners because of its
reasonable fees and response to owners’ needs”, lawyer Carlos De Puy of Morgan & Morgan told
Fairplay." FAIRPLAY, 20 January 2011, p 20
Patient banks likely to spare many weak shipowners - By Liz McCarthy "The shipping industry is
likely to see continued patience from banks in 2011 as financiers avoid bringing down asset values with
distressed sales. Even if banks do “pick off” a few owners this year, the vast majority will “continue to get
the patience treatment”, Watson Farley & Williams chairman Frank Dunne told the Marine Money London
Ship Finance Forum." LLOYD’S LIST, 21 January 2011, p 3
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FMC launches slow steaming investigation - By Julian Macqueen "The US Federal Maritime
Commission has mounted a formal investigation into the economic impact of slow steaming on the wider
supply chain. The commission voted unanimously at a meeting yesterday to start an information-gathering
exercise known as a notice of enquiry, directed at shippers, ocean carriers and other interested parties
such as environmental experts. A year ago, the commission allowed liner companies under the
Transpacific Stabilization Agreement to discuss slow steaming under antitrust immunity. But this
agreement applied to rates and not capacity. “One of the things the commissioners wanted to be vigilant
about is to make sure [the liner companies] don’t use slow steaming as a back door way to manage
capacity,” said FMC spokesman Lowry Crook." LLOYD’S LIST, 28 January 2011, p 2
12. SPECIAL REPORTS

China: SEATRADE, December 2010, pp 23-31
Coatings: NAVAL ARCHITECT, January 2011, pp 16-28
Denmark: SEATRADE, December 2010, p 65
Finland: SEATRADE, December 2010, pp 57-58
France: SEATRADE, December 2010, p 52
Germany FAIRPLAY SOLUTIONS, January 2011, pp 44-46
Gibraltar: SEATRADE, December 2010, pp 37-43
Greece: SEATRADE, December 2010, p 53
Green Ship Technology: NAVAL ARCHITECT, January 2011, pp 33-43
Ice Class LLOYD’S LIST, 13 January 2011, pp 2-4
Ice Class Vessels: NAVAL ARCHITECT, January 2011, pp 54-61
Italy: SEATRADE, December 2010, pp 33-35
Malta: SEATRADE, December 2010, pp 49-51
Norway: NAVAL ARCHITECT, January 2011, pp 62-65
Norway: SEATRADE, December 2010, pp 60-63
Norway: TANKER OPERATOR, November/December 2010, pp 17-26
Offshore vessels FAIRPLAY SOLUTIONS, January 2011, pp 24-30
Spain: SEATRADE, December 2010, pp 45-47
Training Systems: TANKER OPERATOR, November/December 2010, pp 35-43
Turkey LLOYD’S LIST, 13 January 2011, pp 28-38
Wind turbine installation vessels FAIRPLAY SOLUTIONS, January 2011, pp 10-17
Top European Ports: LLOYD’S LIST, 20 January 2011, pp 1-4
Liner Shipping: TRADEWINDS, 21 January 2011, pp 20-27
Americas Focus: LLOYD’S LIST, 24 January 2011, pp 1-4
Training and crewing: SAFETY AT SEA INTERNATIONAL - January 2011, pp 16-19
Container ship safety: SAFETY AT SEA INTERNATIONAL - January 2011, pp 20-25
Ship servicing: SAFETY AT SEA INTERNATIONAL - January 2011, pp 26-30
Training and Crewing LLOYD’S LIST, 27 January 2011, pp 1 - 4
13. SOURCES
In this issue:
BIMCO Bulletin: http://www.bimco.org

Fairplay International Shipping Weekly: http://www.fairplay.co.uk
Fairplay Solutions http://www.solutionsmagazine.co.uk/
Lloyd’s List: http://www.lloydslist.com
MER http://www.imarest.org
Naval Architect: http://www.rina.org.uk/tna.html
Navigation News: http://www.rin.org.uk/
Ports & Harbours: http://www.iaphworldports.org/
Safety at Sea International: www.safetyatsea.net
Seaways: http://www.nautinst.org/Seaways/index.htm
Shipping World & Shipbuilder http://www.shippingworld.org/
Tanker Operator: http://www.tankeroperator.com
TradeWinds: www.tradewinds.no
23

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