Monitoring, reporting and verification of CO2 emissions from maritime transport

28 Jun 13 - 17:30

European Commission proposal d to act on climate change and greenhouse gas emissions from ships

In December 2010, Parties of United Nations Framework Convention on Climate Change (UNFCCC) recognized that global warming must not exceed the temperatures experienced before the industrial revolution by more than 2˚ C. This is vital if the negative consequences of human interference with the climate system are to be limited.

This long-term goal requires global greenhouse gas emissions to be reduced by at least 50% below 1990 levels by 2050. Developed countries should reduce their emissions by 80 to 95% by 2050 compared to 1990 levels. In the medium term, the EU has committed to reduce its greenhouse gas emissions by 20% below 1990 levels by 2020, and by 30% if conditions are right. This commitment forms part of one of the EU's five headline targets in the Europe 2020 Strategy.

Additionally, both the European Council and the European Parliament have agreed that all sectors of the economy should contribute to reducing emissions5.In the view of contributing to the EU 2020 Strategy, the 2011 Commission White Paper on Transport6 states that EU CO2 emissions from maritime transport should be reduced by 40% (if feasible 50%) from 2005 levels by 2050.

In 2010 the total CO2 emissions related to European maritime transport activities (including intra EU routes, incoming voyages to the EU and outgoing voyages from the EU) were estimated to be of the order of 180 Mt CO2. Despite of the introduction of minimum energy efficiency standards for certain categories of new ships ("Energy Efficiency Design Index", EEDI) by the International Maritime Organisation (IMO) in 20117, the emissions are expected to increase.

Main driver is the still expected increased demand for maritime transport triggered by growth of world trade. This projected growth is expected to happen despite the availibility of operational measures and existing technologies to reduce the specific energy consumption and CO2 emissions of ships by up to 75% (according to IMO figures).

A significant part of these measures can be regarded as cost-effective as the reduced fuel costs ensure the pay-back of any operational or investment costs.

This contradiction can be explained by the existence of market barriers for the uptake of such technologies and operational measures such as the lack of reliable information on fuel efficiency of ships or of technologies for retrofitting ships, lack of access to finance for investments into ship efficiency and split incentives as ship owners would not benefit from their investments into ship efficiency as fuel bills are paid by operators.

For more information read European Commission's Proposal for a Regulation of the European Parliament and of the the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport and amending regulation (EU) No 525/2013

Agreement on EU ship recycling regime

28 Jun 13 - 15:51

This new regulation will establish a list of EU approved ship recycling facilities

Ireland's Minister for the Environment, Community and Local Government, Phil Hogan TD, has welcomed the agreement reached with the European Parliament on the EU Ship Recycling Regulation, heralding it as an important instrument to achieve the safe and environmentally sound recycling of EU ships at end-of-life.

This new regulation will establish a list of EU approved ship recycling facilities requiring high standards to ensure that EU flagged ships are properly recycled and that waste materials contained therein are properly managed throughout the recycling process, preventing negative environmental impacts while also safeguarding the health of workers in the facilities.

The EU regulation is the first legislative instrument adopted at regional level in respect of this significant waste stream containing hazardous substances.

Minister Hogan said:

"Up to now, EU ships have generally been dismantled and recycled at sub-standard sites operating to low standards in 3rd countries. From the date of application of this regulation, this practice will now have to cease in respect of EU-flagged ships. Ships will instead have to be properly recycled in approved facilities operating to high environmental and worker safety standards."

"I would also hope that this new EU regulation will act as an important stimulus to facilitate the early ratification of the Hong Kong Convention on Ship Recycling which was adopted in 2009 and that, on foot of this EU initiative, other global regions will follow the EU lead in respect of this important waste stream" added the Minister.

The agreement reached concludes 6 months of intensive negotiations under the Irish EU Presidency.

Source: eu2013.ie

Philippines Supreme Court rules on the implication of payments of sick wages in illness claims

26 Jun 13 - 12:17

The Standard P&I Club Alert

The Supreme Court in the Philippines recently made a ruling which could, if followed, set an unfortunate precedent in determining whether an illness is work related.

A crewmember had been working aboard crude oil tankers since 2004. In 2006 he was diagnosed as suffering from 'malignant fibrous histiocytoma' in his left foot. In order for this illness to be considered work related the company doctor stated that the crewmember had to have been exposed to various substances such as arsenic compounds, and vinyl chloride whilst aboard. The crewmember brought a claim for full disability benefits on the basis that his illness was work-related.

The Labour Arbiter held that the crewmember was entitled to full disability benefits. The NLRC agreed. The Court of Appeal reversed this, saying that the illness was not listed as an occupational disease under section 32 of the POEA and the crewmember failed to prove the illness was work related. The Supreme Court reversed the decision of the Court of Appeal and reinstated the NLRC's decision.

The Court referred to the 'disputable presumption' of work related illness at section 20(A)(4) of the POEA in the situation where the illness in question was not listed in section 32. It also made reference to the fact that the company doctor could not say for certain that the illness was not work related. In these circumstances the illness was construed in favour of the crewmember. Of perhaps more significance was the Court's finding that the employer, by paying the crewmember sick pay, had effectively accepted that the illness was work related and therefore the employer could no longer not argue to the contrary. The Court found that under section 20 of the POEA sick wages were only payable when a seafarer suffered a work related injury or illness during the term of his contract.

The Court's decision that the payment of sick wages is tantamount to an acceptance that an illness is work related is very difficult to accept as correct. There are often occasions when sick wages are paid because the issue of whether the illness is work related has not been established (for example where there is a disputable presumption that the illness is work related).

Whilst the wording of section 20 of the POEA suggests that the 'liability' to pay sick wages only attaches when an illness is 'work related', it is arguable that allowance must be made for situations where the question of whether an illness is work related is not clear cut.

In such situations, where there is a disputable presumption that the illness is work related, Members are advised to make it clear to the crewmember that the payment of sick wages is made strictly without prejudice to any future argument as to whether the illness actually is work related. This may help to avoid a similar situation to that reported above.

Source: The Standard P&I Club

US coal exports beat Chinese coal imports as the most influential coal trade

26 Jun 13 - 15:57

The influence of American coal exports on seaborne transportation has grown significantly

The influence of American coal exports on seaborne transportation has grown significantly over the past decade. In 2002, the US exported 20.1 million tons by sea, but in 2012 that number had increased to 106.7 million tons. The effect on shipping has multiplied due to the fact that much of the demand growth has come from East Asian countries. With a large part of the US Coal destined for East Asia being shipping out of the US East Coast ports, this will increase the demand for tonnage.

Chief Shipping Analyst at BIMCO, Peter Sand, says: "As a consequence, the transportation demand stemming from US coal exports has surged from 84.7 billion tonne-miles in 2002 to an estimated 707.3 billion tonne-miles in 2012 (835% over the period). In comparison, Chinese coal imports in 2012 accounted for an estimated 697.6 billion tonne-miles of demand for seaborne transportation. This means that US coal exports were more important to the dry bulk shipping market than Chinese coal imports in 2012".

(Source: BIMCO)

Dissection of US coal exports

The US exported 22.0 million tons of coal to the East Asian countries of South Korea, Japan and China in 2012, of which 5.1 million tons came from Pacific ports. The Pacific ports export thermal coal to East Asia, while the US East coast and Gulf coast (USEC/USGC) ports export both thermal coal and coking coal. Of the total 22.0 million tons exported to East Asia in 2012, coking coal made up 14.9 million tons (68%) and thermal coal made up 7.1 million tons (32%). 40% of the coal exported to East Asia came from Baltimore, a Capesize-accommodating port that attracts Asian buyers, who also has to accept an extended distance of more than 14,000 nautical miles to reach the port of discharge.

Likewise, the US exported 51.3 million tons of coal to the EU in 2012. The main destinations were The Netherlands and the UK with a total of 23.1 million tons. A part of the coal exports to The Netherlands are subsequently transhipped to German buyers. Traditionally, most of the European trade has been for coking coal, but 2012 marked the year where this pattern changed. In 2012, the US exported 27.9 million tons of thermal coal to the EU (54%), but only 23.4 million tons of coking coal (46%). Unlike the exports going to East Asia, all coal exports to Europe came from USEC/USGC ports making the transit distances substantially shorter. The result is that the exports to East Asia are more beneficial for the shipping industry than the exports to the European Union, despite involving much lower volumes.

To view full article please click here.

Source: BIMCO

Seagate and Timor Stream Collision Accident

26 Jun 13 - 12:25

MAIB Accident Investigation report 17/2013

MAIB issued a report on the investigation of the collision between mv Seagate and mv Timor Stream 24 nautical miles north of the Dominican Republic on 10 March 2012 at 05.40 local time.

At 0540 on 10 March 2012, the bulk carrier Seagate and the refrigerated-cargo ship Timor Stream collided while transiting open waters, in good conditions of visibility, 24 nm north of the Dominican Republic.

There were no injuries, but both ships were badly damaged and there was some minor pollution.Timor Stream left port 3 hours before the collision and was proceeding to the United Kingdom; Seagate was on passage to the west coast of Africa.

Seagate's chief officer saw Timor Stream but assumed it was an overtaking vessel which would keep clear of Seagate. The master of Timor Stream, who was alone on the bridge, was not keeping an effective lookout. Neither watchkeeper realised that the two vessels were on a collision course until less than a minute before the accident.Poor watchkeeping standards, driven by complacency, led to the collision.

The officer in charge of the navigational watch on both vessels failed to keep a proper lookout, did not assess the risk of, or take appropriate action to avoid collision. In summary, both officers failed to comply with some of the most fundamental elements of the International Regulations for Preventing Collisions at Sea 1972 (as amended) and the written navigational procedures issued by their respective company managers.

The managers of both vessels have taken action designed to prevent similar accidents in the future which address the safety issues identified in the MAIB's investigation. Accordingly, no recommendations have been issued with this report.

To view the Accident Investigation report please click at, MAIB Report 17/2013.

Source: MAIB

MPA cancels licences of two bunkering service providers

26 Jun 13 - 11:25

MPA Singapore Press Release

The Maritime and Port Authority of Singapore (MPA) has cancelled the licences of two bunkering service providers in the Port of Singapore with effect from 24 June 2013. The licences of Golden Lights HS Bunkering Pte Ltd, a bunker supplier, and Shing Li Shipping Pte Ltd, a bunker craft operator, were cancelled as they had contravened the terms and conditions of their bunkering licences.

Golden Lights HS Bunkering Pte Ltd was found to have breached Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier) by allowing another company to use its Bunker Delivery Note (BDN) to supply bunkers to the customers of that company.

Shing Li Shipping Pte Ltd was found to have breached Clause 31 of the terms and conditions of the Bunkering Licence (Bunker Craft Operator) for delivering bunkers on behalf of an unlicensed company to customers of that company.

With the cancellation of its bunkering licences, Golden Lights HS Bunkering Pte Ltd and Shing Li Shipping Pte Ltd will no longer be allowed to operate as a bunker supplier and a bunker craft operator in Singapore, respectively. All bunker suppliers and bunker craft operators operating in the Port of Singapore are required to be licensed by MPA.

MPA would like to emphasise to all licensed bunker suppliers that the bunker supplier's licence is not transferable under the terms and conditions of the bunkering licence. All licensed bunker craft operators are also advised not to make use of any bunker tankers to deliver bunkers on behalf of any person, firm or company that is not a bunker supplier licensed by MPA.

Source: MPA Singapore

The P3 east-west service network promises much for the container industry

25 Jun 13 - 14:24

Drewry reports

Maersk's, MSC's and CMA CGM's intention to provide jointly run schedules in the Asia/Europe, transpacific and transatlantic tradelanes promises much for the container industry.

The P3 east-west service network initiative to be implemented by Maersk, CMA CGM and MSC in 2Q 2014 must be considered a positive development for the liner industry since it will help reduce carrier costs and stabilise the market. There are still more than 15 competing carriers on most trade routes, so the combination of Maersk/MSC/CMA CGM in an operating alliance in the transpacific, Asia/Europe and transatlantic tradelanes should not damage competition.

But, it will contribute to the trend towards lack of service differentiation in container shipping, which is something that will continue to worry shippers. At this early stage, the Asian Shippers' Meeting (ASM) and European Shippers Council (ESC) have merely expressed deep concern over the Maersk/MSC/CMA CGM alliance, stating that it should in no way jeopardize or impair the free choice of shippers, and fair competition based on price, service level and routing.

The P3 network will be based on existing capacities of each member, and initially operate 255 vessels providing a capacity of 2.6 million teu in 29 loops. Maersk Line will contribute 42% of the capacity, followed by MSC with 34%, and CMA CGM with 24%. Vessels provided by the lines will continue to be owned and chartered.

According to Drewry's records, the three carriers currently deploy 305 vessels offering a total capacity of 2.6 million teu in 42 loops on the three routes, so some serious culling will have to take place somewhere. The analysis excludes the Mediterranean/East Coast of North America tradelane where Maersk is currently phasing out its direct service, although it will eventually become part of the P3 network.

Should the new initiative be fully approved by the regulatory authorities, it will mean 13 of the top 20 lines being in a structured alliance on the main east - west trades, leaving UASC, Evergreen, CSCL and Zim out on a limb.

According to Vincent Clerk, chief Trade and Marketing Officer in Maersk Line, all regulatory bodies, including the European Commission and FMC, have been approached, and are basically in agreement with the proposal providing there is no flow of information between the members' commercial departments and the independent operating centre that will be established to manage vessel schedules, allocations and utilisation. It is not yet a done deal, however. The operational  firewall is unnecessary in other alliances and consortia as their market shares are below the EU's 30% ceiling.

Under EU antitrust rules, consortia are exempted up to this cargo market share level. Above this level, agreements can nevertheless be compatible if the efficiencies brought about by the cooperation outweigh the harm to competition (Article 101(3) of the Treaty on the Functioning of the European Union).  In principle, it is the responsibility of each company to assess whether an agreement complies with EU antitrust rules, although the European Commission may of course decide to examine the situation.

The following table reveals that Maersk, MSC and CMA CGM had a combined vessel capacity market share of 37.6% in April across the Asia/Europe, transpacific and transatlantic routes, so could be interpreted to be in a dominant position. The position is most sensitive between Asia and the Mediterranean (55%), followed by Asia/Northern Europe (46%), transatlantic (35%) and transpacific (29%).

Notes: Snapshot as of April 1 and does not include vessels not attached to loops for temporary idling or if vessels are being phased in or out of a service
Basis vessels operated by Maersk, CMA CGM and MSC only in all services and does not include slot charter agreements
Maersk AE6/TP6 is a pendulum service which incorporates both the Asia-N Europe and transpacific trades and is not counted twice in this analysis

Source: Drewry

EU Commission refers Spain to Court over rules for the recruitment of port workers

21 Jun 13 - 17:01

Press Release

The European Commission has today decided to refer Spain to the EU Court of Justice over its rules on hiring port labour in several Spanish ports. Currently, cargo-handling companies in these ports are not allowed to resort to the market to employ their staff.

On the contrary, the rules in place oblige cargo-handling companies to participate financially in the capital of private companies, which in turn provide them with the required workforce. It is only when the workforce proposed by these private companies is not suitable or not sufficient that cargo-handling companies may freely hire staff from the market.

The Commission considers that cargo-handling providers from other Member States wishing to establish themselves in Spanish ports may be discouraged from doing so because of these restrictive labour practices.

Treaty rules on freedom of establishment fully apply to port activities. In particular, the Treaty precludes any national measure which, even though not discriminatory on grounds of nationality, hinders or renders less attractive the exercise of the freedom of establishment.

Spanish law provides that private companies called SAGEPs (Sociedad Anónima de Gestión de Estibadores Portuarios) should be set up in ports of general interest. SAGEPs are in charge of recruiting dockers and putting them at the disposal of cargo-handlers.

These rules are applicable to the largest Spanish ports, including the ports of Barcelona, Algeciras, Valencia and Bilbao. The same law obliges all companies wishing to provide cargo-handling services to join and financially participate in the capital of a SAGEP.

Cargo-handling companies can be exempted from this obligation only in very marginal cases. Moreover, the cargo-handling company has to rely on workers recruited and put at its disposal by the SAGEP. Only if the dockers proposed by the SAGEP are not sufficient or not suitable, may the cargo-handling companies freely recruit workers from the market, but even then only for one working shift.

This causes a forced alteration of the companies' existing employment structures, recruitment policies and ultimately business strategies. Such changes may entail serious disruption within companies and have significant financial consequences. Cargo-handling companies may consequently be discouraged from establishing themselves in Spanish ports of general interest.

Source: EU Commission

First gas carrier loaded at the new LPG transhipment terminal in Northwest Russia

21 Jun 13 - 13:20

A formal ceremony to mark the first loading of a gas carrier with liquefied petroleum gas (LPG)

A formal ceremony was hosted today at the Ust-Luga commercial sea port to mark the first loading of a gas carrier with liquefied petroleum gas (LPG) at SIBUR's new transhipment facility for LPG and light oils.

SIBUR's Ust-Luga terminal is the largest in the CIS and the first in Northwest Russia to tranship LPG. The terminal is capable of handling up to 1.5 million tonnes of LPG and up to 2.5 million tonnes of light oils each year. SIBUR's estimated investments in the project totalled approximately RR 25 billion.

The terminal's distinguishing feature is its isothermal LPG storage tanks and its compatibility with almost all existing vessels, including refrigerated ships. The cooling process enables liquefied gas to be transported in large shipments; a refrigerated vessel using cooled LPG can carry up to ten times that of pressurised gas carriers.

Its functionality allows for transhipment of up to 1.1 million tonnes of cooled LPG and up to 0.4 million tonnes of pressurised LPG per annum. The terminal is capable of simultaneously storing 40 thousand cubic metres of LPG in isothermal tanks and 10 thousand cubic metres in pressurised tanks. Light oil transhipment facilities with a storage capacity of 100 thousand cubic metres have opened up another export opportunity for Russian oil and gas companies.

Vessels can be loaded at the same speed as other similar terminals globally - a gas carrier with a capacity of 40 thousand cubic metres requires no more than 24 hours to be filled while loading a 52 thousand cubic metres tanker takes 36 hours at most.

The terminal's location offers excellent access to the Northwest European markets. Until now, Russian LPG has been delivered to Europe either by land or via foreign ports on the Black Sea or Baltic Sea.

The Ust-Luga terminal represents the first stage in creating a sea transhipment infrastructure in Russia which will reduce dependency on foreign ports. The new facility, which is navigable all year round, allows SIBUR to optimiseits transportation costs by redirecting existing export flows through a more efficient route.

SIBUR's terminal will also improve the economic potential of associated petroleum gas (APG) utilisation as it is processed into LPG, light oils and other products.

The terminal in Ust-Luga is a federal project supported by the Government, whose involvement is reflected in a partnership agreement between SIBUR and Russian Railways until 2020, and a trilateral agreement between SIBUR, Rosmorport, and the Russian Federal Agency for Maritime and River Transport.

Following the official loading ceremony, Alexander Drozdenko, Governor of the Leningrad Region, and Dmitry Konov, CEO of SIBUR, signed an agreement for a social and economic partnership until 2015. The agreement will help SIBUR to improve the social environment in the region by partnering with regional authorities on environmental protection efforts, chemical research and education initiatives

Source: SIBUR

Forth Ports and Port of Zeebrugge in Strategic Agreement

20 Jun 13 - 10:28

Aiming at attracting new container cargo volumes

Forth Ports Limited and Port of Zeebrugge / MBZ signed a Memorandum of Understanding (MoU) which marks the start of a strategic agreement between the Port companies with the aim of the exploring mutual opportunities to attract new container cargo volumes.

Both ports have complementary assets both in current trade arrangements and geographical positioning and through this MoU, Forth Ports and Port of Zeebrugge have agreed to explore initiatives to develop these current trade links and connections. The agreement will initially focus on enhancing container cargo volumes at Port of Zeebrugge and London Container Terminal (LCT) in Tilbury which is the UK's 3^rd largest container terminal.

Zeebrugge's container volumes are largely dominated by deepsea Far East volumes, while LCT has a particularly strong position on the South America trades. LCT at Tilbury has a unique geographical position as London's key port, while Zeebrugge has a unique deep-water location near the seagoing trade lanes.  Zeebrugge also has a significant South America cargo base demand while Tilbury is an excellent gateway for Far East cargo for the London consumer markets.

Independent business advisors Maritime & Transport Business Solutions (MTBS) completed the market analysis for LCT which has led to the MoU being agreed by both Ports. MTBS will remain on board to provide further support as the project develops.

Source: Port of Zeebrugge

Foreign flagged vessels operating in Australian near-coastal waters

20 Jun 13 - 10:57

AMSA Marine Notice No 8.2013

Australian Maritime Safety Authority (AMSA) has issued Marine Notice No. 8/2013 regarding foreigh flagged vessels operating in Australian near- coastal water.

With the commencement of the Navigation Act 2012 and the Marine Safety (Domestic Commercial Vessel) National Law Act 2012 (National Law) on 1 July 2013, jurisdiction over foreign flagged commercial vessels in Australian waters will be via the Navigation Act 2012.

This includes foreign flagged vessels solely engaged in intra-state operations (i.e. voyages within the waters of an Australian State or Territory). Given the complimentary nature of the application of the new acts, foreign flagged vessels will not be able to operate under Australian State or Territory jurisdiction nor to "declare out" of the Navigation Act 2012.

Port State Control

The operator of a foreign flag vessel operating domestically in Australia must ensure the vessel complies with the requirements of the flag State with regard to certification and manning appropriate to the vessel size, power and operations. This reflects the fact that the flag State is ultimately responsible for the vessel.

From 1 July 2013 AMSA will have the ability to conduct port State inspections on all foreign flag vessels in Australian waters, irrespective of the nature of the voyage they are undertaking. Relevant documentation must be available for inspection by port State inspectors.

Options for foreign flagged vessels operating under Australian State/Territory arrangements

AMSA is aware of cases in which flag States have issued manning documents to vessels accepting Australian coastal qualifications and manning. This is appropriate and is in line with international practice.

AMSA is also aware that a number of foreign flagged vessels operating domestically employ Australian crews under documentation issued by Australian State or Territory maritime regulators.

After 1 July 2013 this practice is no longer acceptable and, as for any other foreign flagged vessel, the minimum manning, including the qualifications of crew, must be determined and documented by the flag State.

Accordingly, AMSA, along with Australian State and Territory Maritime Regulators confirm that:

• The flag State has sole responsibility for certification and safe operations of vessels under their flag, regardless of voyage or operating area.

• The flag State is responsible for determining minimum manning levels and qualifications on their vessels and for issuing associated documentation.

Recognising these principles and in order to deliver continuity of operations AMSA and the Australian State and Territory Maritime Regulators confirm that compliance with the Navigation Act 2012 can be achieved by the following means:

• A flag State issuing evidence that it accepts Australian seafarers and Australian near-coastal qualifications on a particular vessel under its control, or

• A flag State requesting AMSA issue a minimum safe manning document in accordance with their instructions, on their behalf, as permitted in SOLAS Regulation I/13.

AMSA will accept an assessment under either option 1 or 2 for port State control purposes so long as:

• the manning and qualifications are no less than that required for an Australian vessel of similar size with similar operations; and

• the vessel has an appropriate safety management system in place (see next section).

To assist flag States in assessing these requirements AMSA or its National Law Delegates (i.e. officials representing Australian State and Territory Maritime Authorities) can provide advice on what would be acceptable had the vessel been Australian flagged and operating under either the Navigation Act 2012 or National Law.

In no circumstance will AMSA override, or object to, any ruling by a flag State that they will not accept Australian manning or near-coastal qualifications.

As an alternative to options 1 and 2 above, a foreign flagged vessel can reflag to Australia under the AustralianShipping Registration Act 1981 and operate with domestic qualifications under either the National Law or theNavigation Act 2012. Australian flagged vessels operating on purely domestic operations will generally come under the National Law, however if the vessel is certified for operations beyond the exclusive economic zone (approximately 200 nautical miles to seaward), or wishes to opt in, the vessel can be regulated under the Navigation Act 2012.

Safety Management

Determination of manning and qualification requirements for Australian flagged vessels operating domestically are made having regard to the total operating environment of the vessel, including the National Law requirement to have appropriate safety management systems in place.

Accordingly, for Australian manning and qualification requirements to be accepted for foreign flagged vessels, evidence of safety management systems will be required as follows:

• for foreign flagged vessels of 500 gross tonnage and upwards a fully certified ISM Code system in accordance with Chapter IX of SOLAS must be in place.
• for foreign flagged vessels of less than 500 gross tonnage the minimum requirement will be a safety management system equivalent to the relevant operational standards of National Standard for Commercial Vessels Part E, verified by the flag State, AMSA or a National Regulator Delegate.

Compliance timeframes

AMSA recognises that time is required to achieve the above outcomes.

Accordingly AMSA will accept operations without a formal manning and qualifications document recognising Australian near-coastal manning and qualifications from the flag State until 31 August 2013, provided there is evidence on the vessel that:

• the arrangement was in place for the vessel prior to 1 July 2013; and

• formal approval of the flag State has been sought.

Source: AMSA

The World 's Fastest Ship is dual fueled

18 Jun 13 - 14:45

Incat High Speed Ferry Excels

Australian ferry builder Incat Tasmania's world first high speed dual-fuel vehicle and passenger ferry is now officially fast with a lightship speed of 58.1 knots - (107.6 kilometres an hour) and a thrill for the designers of the 99 metre high speed vessel Francisco (Incat hull 069).

This is certainly the fastest ship in the world, of course there's a few speed boats that could surpass 58 knots but nothing that could carry 1000 passengers and 150 cars, and with an enormous duty free shop on board.

(photo credit : Incat)

Last week at 1516 tonne displacement trial she achieved 51.8 knots at 100% MCR operating with one turbine on LNG and one on marine distillate, exceeding the results achieved on 1st June when Francisco was sea trialled with full ballast comfortably exceeding 50 knots at full power and maintaining a steady 49 knots at 90 per cent power while operating on marine distillate.

On Saturday 15th June, with the water ballast removed, and with both Port and Starboard Gas Turbines operating on LNG; Francisco achieved 58.1 knots at 100% MCR.

The vessel's high speed can be attributed to the combination of Incat wave piercing catamaran design, the use of lightweight, strong marine grade aluminium, and the power produced by the two 22MW GE LM2500 gas turbines driving Wartsila LJX 1720 SR waterjets. The extensive and luxurious interior made significant increases to the weight of the interior fitout, however the Incat team worked diligently to maximise weight savings during construction wherever possible.

Francisco has been constructed for South American company Buquebus, for service on the River Plate, between Buenos Aires Argentina and Montevideo, Uruguay.

Incat is still not claiming 58.1 as the end point of lightship trials as there was a full load of LNG on board (two 40 cubic metre tanks) in addition to about 35 tonnes of marine distillate, with Incat Chairman Robert Clifford, saying "When we have less fuel on board, and delivery spares removed, we will see that speed go higher still in the shallow waters of the River Plate (Rio Plata). We are delighted with the efficiency of the design and sure that our customer, Buquebus, will be pleased with the results, enabling the ferry to compete with airline traffic on the River Plate route."

Francisco has capacity for 1,000 persons and 150 cars. A luxurious fit out has been incorporated, including a 1,100 square metre duty-free shop.

Buquebus has clearly demonstrated their preference for Incat technology over a twenty year period and Francisco (hull 069) is the eighth Incat vessel to be operated by Buquebus and their associated companies. It will be the largest catamaran they have operated, the world's first dual fuel high speed ferry to operate on LNG as its primary fuel, and the fastest, environmentally cleanest, most efficient, high speed ferry in the world.

Source: Incat

Maersk Line, MSC and CMA CGM to establish an operational alliance

18 Jun 13 - 10:22

'The P3 Network'

Maersk Line, MSC Mediterranean Shipping Company S.A. and CMA CGM have in principle agreed to establish a long-term operational alliance on East - West trades, called the P3 Network. The aim is to improve and optimise operations and service offerings.

The P3 Network will operate a capacity of 2.6 million TEU (initially 255 vessels on 29 loops) on three trade lanes: Asia - Europe, Trans-Pacific and Trans-Atlantic.

While the P3 Network vessels will be operated independently by a joint vessel operating centre, the three lines will continue to have fully independent sales, marketing and customer service functions.

Improving services for the customers

The P3 Network will provide customers with more stable, frequent and flexible services.

Each of the lines will offer more weekly sailings in their combined network than they do individually. As an example, the P3 Network plans to offer 8 weekly sailings between Asia and Northern Europe. In addition the P3 Network will offer more direct ports of call.

The improved network is expected to reduce the disruptions for customers caused by cancelled sailings.

In order to provide customers with a consistent service offering across the network, the lines will establish an independent joint vessel operating centre.

Need for efficiency

Declining volume growth and over-capacity in recent years have underlined the need to improve operations and efficiency in the industry. This has prompted the creation of other operational alliances such as G6 and CKYH. Using the P3 Network the lines expect to be able improve their efficiency through better utilisation of vessel capacity.

Subject to approval 
The lines intend to start operations in the 2^nd quarter of 2014, but the starting date will be subject to obtaining the approval of relevant competition and other regulatory authorities.

Source: Maersk

The first Triple-E has a name

14 Jun 13 - 17:40

Christening Ceremony of World's Largest ship

Ane Mærsk Mc-Kinney Uggla  naming the first Triple -E vessel ( Image credit: Maersk Line)

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During the official naming ceremony held in Okpo today, South Korea, Ane Mærsk Mc-Kinney Uggla who is the chairman of the Moller Foundation, had the honour of naming the first vessel.

Maersk Line's newest vessel, the first of the Triple-E series, was named Friday morning in a ceremony at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea. It bears the name of the late Mærsk Mc-Kinney Møller, who passed away in April 2012 at the age of 98.

Maersk Line CEO, Søren Skou, began the ceremony by welcoming all the special guests and recounting the important tradition of naming ceremonies in Maersk ever since the first event in 1906 welcomed Peter Mærsk as the second vessel in the fleet.

Godspeed!

He then handed the podium and the honour of naming the first Triple-E vessel to Ane Mærsk Mc-Kinney Uggla, the youngest daughter of Mærsk Mc-Kinney Møller.

"I name you Mærsk Mc-Kinney Møller," she said.

"As you sail the waters of the world, may your journeys be smooth and your tasks successful. May you bring happiness to your crew, may you be a safe haven for all who board you and may you bring pride and prosperity to all. I wish you Godspeed!"

Celebrating new standards

The Mærsk Mc-Kinney Møller is the largest ship in the world, and along with the other 19 Triple-E vessels on order from DSME, sets new standards in the container industry, not just for size, but also of energy efficiency and environmental performance. With unique design features for slower speeds and maximum efficiency, this vessel will emit 50% less CO2 per container moved than the current average on the Asia-Europe route.

The 20 Triple-E vessels will be phased in gradually over the next couple of years on the existing route between Asia and Northern Europe (AE10).

Special guests

Guests at the ceremony included Mærsk Mc-Kinney Møller's other two daughters Leise Mærsk Mc-Kinney Møller and Kirsten Mærsk Mc-Kinney Olufsen, the Danish ambassador to Korea, Peter Lysholt Hansen, members of the vessel crew, as well representatives from Maersk Line, Maersk Maritime Technology and the DSME shipyard.

For more information on Triple-E vessels please visit Maersk's dedicated website http://www.worldslargestship.com

Source: Maersk

Paris MoU New targeting lists

13 Jun 13 - 16:34

These lists will take effect from 1 July 2013

At its 46th meeting last month, the Paris MoU Committee approved the 2012 inspection results and adopted new performance lists for flags and Recognized Organizations. These lists will take effect from 1 July 2013.

The "White, Grey and Black (WGB) List" presents the full spectrum, from quality flags to flags with a poor performance that are considered high or very high risk. It is based on the total number of inspections and detentions over a 3-year rolling period for flags with at least 30 inspections in the period. On the "White, Grey and Black list" for 2012 a total number of 78 flags are listed: 45 on the "White list", 19 on the "Grey list", and 14 on the "Black list". The "White List" represents quality flags with a consistently low detention record.

Compared with last year, the number of flags on the "White List" has increased by 2 flags to a total number of 45 flags. New on the "White List" are the United States and Thailand, which were still on the "Grey List" last year.

France has been placed highest on the list in terms of performance. The next in line of the best performing flags in 2012 are Germany, Hong Kong, Sweden and Greece. Flags with an average performance are shown on the "Grey List". Their appearance on this list may act as an incentive to improve and move to the "White List".

At the same time flags at the lower end of the "Grey List" should be careful not to neglect control over their ships and risk ending up on the "Black List" next year. On this year's "Grey List" a total number of 19 flags is recorded. Last year the "Grey List" recorded 20 flags. New on the "Grey List" are the Syrian Arab Republic, which were last year still on the "Black List".

The poorest performing flag is Bolivia (very high risk), followed by Tanzania, Togo, Sierra Leone, Honduras and Moldova (medium to high risk). New on the "Black List" are the flags of Honduras and Dominica. A flag's ranking is taken into account when targeting ships for inspection and ships flying flags listed on the "Black" and "Grey" list are liable for banning from the region after multiple detentions.

The Paris MoU also agreed on the performance listing of Recognized Organizations (ROs). ROs have been delegated with statutory responsibilities by flag States. This list uses the same method of calculation as the flag State table but counts only those detentions, which the Paris MoU considers to be directly related to a statutory survey carried out by the Recognized Organization and a minimum number of 60 inspections per RO are needed before the performance is taken into account for the list.

In 2012 30 ROs are recorded on the performance list. Among the best performing Recognized Organizations were: American Bureau of Shipping (ABS) Det Norske Veritas (DNV) Lloyd's Register (UK) (LR).

The lowest performing Recognized Organizations were: Phoenix Register of Shipping (Greece) (PHRS) INCLAMAR (Cyprus) Register of Shipping (Albania) (RSA) On 1 July 2013 the performance lists will be used for calculating the ship risk profile and flags on the "Grey List" and "Black List" are subject to the more stringent banning measures in force since 1 January 2011.

More information can be found in the 2012 Annual Report, which will be released in July 2013.

To view the full Press Release please click here.

Source: Paris MoU

 

Maersk Container Industry Teams Up with UN to Combat Global Food Waste

13 Jun 13 - 09:47

Increasing international food logistics efficiency

Maersk Container Industry has joined the United Nations' SAVE FOOD Initiative to help make international food logistics more efficient

The UN food organization FAO, under which SAVE FOOD is organised, estimates that globally up to 50 % of fruits and vegetables are lost between farm and fork. Transport and distribution may account for between 5% and 20% of the loss depending on the specific region of the world.

Technologies like Star Cool CA and AV+ are used to control a refrigeration container's temperature, humidity, air flow and air composition. This enables longer transports and better care for fruits and vegetables.

As part of SAVE FOOD, MCI and other companies in the food industry will share expertise. SAVE FOOD sees a benefit from sharing knowledge throughout the food logistics chain where actions in one link invariably affect the next.

FAO:

"Food losses in industrialized countries are as high as in developing countries, but in developing countries more than 40% of the food losses occur at postharvest and processing levels, while in industrialized countries, more than 40% of the food losses occur at retail and consumer levels." (Source: FAO report "Global Food Losses and Food Waste")

To view the full FAO report please click here.

Source: Maersk

South China Sea, Mediterranean And North Sea are shipping accident hotspots

10 Jun 13 - 10:15

A new study, released by WWF for World Oceans Day

The waters around the British Isles are home to one of the highest numbers of shipping accidents in the world, according to a new study released by WWF for World Oceans Day (8th June).

The busy shipping lanes around the British Isles, North Sea and Bay of Biscay had the fourth largest number of shipping accidents in the world, with 135 reported incidents between 1999 and 2011 including fires, collisions and leakage of toxic waste. The North Sea is one of the most intensively sailed seas in the world with over 120,000 ship movements taking place there every year.

The South China Sea and East Indies, east Mediterranean and Black Sea, were also found to be dangerous hotspots for accidents involving ships.

Since 1999 there have been 293 shipping accidents in the South China Sea and East Indies, home of the Coral Triangle and 76 per cent of the world's coral species. As recently as April this year a Chinese fishing boat has run aground on a protected coral reef in the Philippines that had already been damaged by a US Navy ship in January.

Image credit: WWF

Fishing vessels accounted for nearly a quarter of the vessels lost at sea but general cargo ships account for over 40 per cent. Cargo ships often operate short shipping routes, associated with the tramp trading where ships don't have a set route and pick up opportunistic trade, particularly in Southeast Asia.

The risk to the environment is directly linked to the type and amount of hazardous substances, including oil, being transported and the sensitivity of the marine area where any accident could occur. In 2002, the Prestige oil tanker sunk resulting in over 70,000 tonnes of oil being released into the Atlantic Ocean off the Spanish coast.

Climate change models show increased storm surges, changing wind and wave patterns and extreme weather events which are likely to exacerbate the risks of foundering leading to potential catastrophic environmental destruction. Fifty per cent of all accidents are caused by foundering, where a boat sinks due to rough weather, leaks or breaking in two.

As the global fleet continues to expand rapidly and begins to operate routinely in more risky areas the probability of accidents and likely severity of impacts will again increase unless precautionary measures are put in place to address identifiable risk factors.

You may view Report Summary by clicking here

To learn more about marine conservation and how you can help, visit the websites of environmental groups Greenpeace, the WWFand the Nature Conservancy.

Source: WWF