Panama Canal Begins Countdown for Centennial Celebration

28 Aug 13 - 12:24

Centennial to highlight present operations and expansion program

The Panama Canal Authority (ACP) has begun the countdown for the centennial celebration as it commemorates its 99th anniversary. The countdown's events will highlight the waterway's contribution during the past 100 years and the efforts underway to face the challenges of the upcoming decades.

The countdown began with the presentation of the Panama Canal Centennial logo on the control house balcony at the Miraflores Locks in a ceremony attended by members of the ACP Board of Directors and Panama Canal executives.

"During the year of celebration that we start today, we will pay tribute to the different representations of human ingenuity that made uniting two oceans a possibility," Panama Canal Administrator Jorge L. Quijano said.

"These representations include the human epic, the technological innovations, and the cultural, economic and social impacts that will forever define the Panama Canal in the world."

The Canal's Impact

Since its opening 99 years ago, the Panama Canal has impacted the world in different areas, making its construction and operation possible. The Panama Canal has become a facilitator of international trade by making distances shorter, reducing costs and navigational times to get goods to the market faster.

"The Panama Canal has connected the world since August 15, 1914," ACP Board of Directors Chairman Roberto Roy said.

"Proof of this is the 14,000 ships that transit each year, reaching 1,700 ports in 160 countries."

The construction of the Panama Canal was possible through the contribution of more than 56,000 men and women from all around the world. This mixture of cultures provided the foundation for Panama's rich cultural diversity.

Committed to the protection of the natural resources, the Panama Canal has become a leader in new and innovative environmental protection programs and reforestation initiatives to ensure the coexistence of humans with their natural surroundings.

Honoring its past, the Panama Canal Centennial will highlight the present operations of the waterway, while emphasizing how it prepares to face the challenges of the next couple of years through the Expansion Program.

Tags: Panama Canal, Centennial Celebration, Expansion

Wartsila to Provide Propulsion Solutions for Six New Pipelayers

28 Aug 13 - 17:32

Pipe Laying Vessels to operate in Brazilian waters

Wärtsilä has received a significant order to supply the propulsion solutions for six new offshore pipe laying vessels being built by IHC Merwede, a global leader in delivering efficient vessels and equipment.

Three of the ships are to be built for Subsea 7, the seabed-to-surface engineering, construction, and services contractor to the offshore energy industry. The other three vessels have been ordered by Seabras Sapura, the Sapura Kencana and Seadrill partnership entity.

All six vessels are scheduled to be delivered during the first half of 2015 and the second half of 2016. They will be deployed to serve the Brazilian offshore market by Petrobras, the multi-national energy corporation. Wärtsilä signed its supply order for the first vessel in the second quarter of 2013, and the remaining orders in the third quarter. The scope of supply for each ship comprises six 8-cylinder Wärtsilä 32 engines, two transverse thrusters, two retractable thrusters, and three steerable underwater de-mountable thrusters. Wärtsilä's ability to secure easy and quick changing of the underwater de-mountable thrusters was especially important to the customer.

The contracts call for a tight delivery schedule, and Wärtsilä's ability to meet this requirement with equipment and machinery that provide the necessary quality, reliability and efficiency, was another key factor in the award of the contracts. Wärtsilä will begin deliveries already in February 2014, with further deliveries following at four month intervals.

"These are very important orders that underscore Wärtsilä's outstanding reputation for serving the offshore sector with solutions that meet the most demanding expectations. The delivery schedule is challenging, but we have frequently demonstrated that our world class manufacturing and logistics processes can handle fast-track projects such as these,"  says Mr Aaron Bresnahan, Vice President Sales, Wärtsilä Ship Power.

Both Subsea 7 and Sapura Kencana already have vessels with similar Wärtsilä equipment installed, and Wärtsilä has enjoyed a long-standing and successful relationship with IHC Merwede. Furthermore, for Subsea7, Wärtsilä has an existing worldwide services and spare parts contract.

Source: Wartsila

Merchant Navy ratings' training to boost UK employment for young people

28 Aug 13 - 16:37

Companies can apply to be part of UK Tonnage Tax system

President of the UK Chamber of Shipping, Kenneth MacLeod, has called for shipping companies in the UK's Tonnage Tax system to be allowed to train Merchant Navy ratings as part of their training commitment under the regime - to boost employment and careers for young people in the UK.

Shipping companies can apply to be part of the Tonnage Tax regime - a system of taxation that allows UK shipping to be internationally competitive. Being part of tonnage tax means that shipping companies must train one new officer cadet annually for every 15 officers they employ. Merchant Navy ratings are the support staff on board a ship - they are skilled seafarers who work in the deck, engine, catering or communications departments on all different types of ships.

President Kenneth MacLeod said:

"The UK Chamber has long believed that changes are needed to include the training of ratings as one of the options for fulfilling the UK Tonnage Tax training commitment.

"I went to sea as a junior rating, working in the galley on a Clyde steamer, and that gave me a taste for life in the Merchant Navy.

"I want others to have the same opportunities for training that I had, so that we can boost the numbers of UK ratings and give more young people the chance of a career at sea."

The UK Chamber President has written to the Shipping Minister asking for changes to allow UK ratings to be formally included as an option in the Tonnage Tax training commitment. Previous discussions between industry, Government and trade unions supported a new provision for companies to be able to take on three trainee ratings per 15 officers, as a another option alongside the one cadet per 15 currently included in the scheme. These proposals were put forward some years ago jointly by the UK Chamber, Nautilus UK and RMT, but since then talks have stalled.

Kenneth MacLeod said:

"The UK Chamber has for a long time said that it will do all it can to help move discussions on the tonnage tax training commitment forward quickly and successfully, but it is time for this also to be taken up actively by the seafaring unions, particularly the RMT.

"At a time of continued youth unemployment, it is vital to make this work both for the success of the industry and of the future workforce."

"Demand for quality UK ratings exists particularly in the off-shore and ferry sectors, and the tools within tonnage tax remain the best mechanism available to widen training opportunities and meet this demand."

Report of starving Chinese crew members proves untrue

28 Aug 13 - 10:25

China Daily reports

Image Credit: Shipspotting

Local media in Belgium had repeatedly reported that 11 Chinese sailors wereon the brink of starvation in their "blocked" cargo ship MV C Ladybug in theAntwerp port and their personal freedom had been compromised. However,Fu Jing from China Daily reports that he communicated with the Chinese embassy in Belgium. Officials there told that the embassy had sent an emergency team to the port, about 70 km from Brussels, to seek firsthand information.

The team later told local media that the media had exaggerated the dire situation of the Chinese crew, who have been forced to stay in Antwerp since March 14 due to the Taiwan ship owner's financial difficulties.

Chinese Ambassador Liao Liqiang led another team to the freight vessel to talk with the captain and other sailors.

The brand-new vessel, Ladybug, usually transports China-made new cars and European secondhand automobiles to African countries. The 13-deck ship can carry 7,600 cars. The ship was ordered by a Belgian court to dock in Antwerp's port because the ship owner, Taiwan Maritime Transportation Co Ltd, a bulk shipper and energy transportation firm, had filed for bankruptcy protection.

According to China Daily Wang Zhenfu, 36, the Ladybug captain, said the supplies in the ship are adequate for one month. The Captain also stated thathe hopes that the ship owner acts quickly to pay their wages because they haven't been paid since May. And the ship owner should also find ways to let them sail the vessel to Africa where they can unload the used European vehicles.

The vessel has been out of the media spotlight for a while, Wang said. But last week, a new international pact on sailors' rights took effect. Then the International Transport Workers' Federation, which has been following the ship for a long time, sent European media on board to cover the event.

A similar situation has been reported by Maltese media about twenty-one seafarers who have been abandoned off the port of Malta on board MV A Ladybug for months and are looking for compensation from the financially stricken company. The Taiwanese company has abandoned them at ocean with no fuel and restricted nourishment and water.

Port of Gothenburg welcomes world's largest container ship

27 Aug 13 - 17:12

Maersk Lines new Triple E class vessel welcomed in Gothenburg

The world's largest container ship docked at the Port of Gothenburg. "We have the pleasure of welcoming Maersk Line's new Triple E class vessel to Gothenburg. This a very strong symbol of the growing trade between Sweden and Asia," says Magnus Kårestedt, Port of Gothenburg Chief Executive.

Following detailed preparations and test runs on a simulator, the Port of Gothenburg is set to receive the new super post Panamax vessels. These vessels are so large that no port in North or South America can receive them and there are only a few in Europe and a number in Asia. Fairways that are sufficiently deep and wide are required along with the very largest of cranes.

"Thanks to focused, large-scale investment over the years, the Port of Gothenburg is capable of receiving vessels of this size," says Magnus Kårestedt.

Image Credit: Port of Gothenburg

New sister ships on the way 

Maersk Mc-Kinney Möller, which is the name of the new ship, will operate tween Asia and Europe. She left the shipyard in South Korea in June and is currently on her maiden voyage. New sister ships of the same size are due to be built and Maersk Line aims to launch 20 vessels in this class within two years. Other leading shipping lines around the world have also placed orders for similar vessels.

Maersk Mc-Kinney Möller is 400 metres in length and has a beam of 59 metres. She has nine levels above deck and ten below. She can carry more than 18,000 containers which, if placed to end to end, would create a line 110 km long. Placed on top of each other, they would result in a 47 km high tower. The load capacity is 16 per cent greater than the largest vessels currently operating anywhere in the world.

"It is extremely positive for Swedish industry that the capacity on direct services between Sweden and Asia is increasing. If a company is to invest in Sweden it is vital to have good deep-sea shipping to other continents. This also requires major ports such as Gothenburg that can attract such lines," says Magnus Kårestedt.

The majority of the export containers to Asia contain paper, timber products, steel, industrial components and automotive parts. Imports mainly comprise all forms of consumer goods - electronics, clothes, furniture and food. There is also quite a high proportion of input goods for industry.

Triple E will serve the following 13 ports: Gdansk (Poland) – Århus (Denmark) – Gothenburg – Bremerhaven (Germany) – Rotterdam (Netherlands) – Port Tangiers (Algeria) – Singapore – Yantian (China) - Hong Kong – Kwangyang (South Korea) – Ningbo (China) – Shanghai – Tanjung Pelepas (Malaysia).

Cargo ship in Cebu maritime tragedy in the wrong lane

27 Aug 13 - 10:20

TransAsia captain says

The cargo ship that collided with a passenger ship in Cebu on August 16 was in the wrong lane, the captain of a third ship told the Special Board of Marine Inquiry (SBMI), which is conducting an investigation on the accident, according to GMA News, Carmela G. Lapeña/RSJ.

"Captain Galipher Ian Faller, vessel master of Trans Asia Nine, supported the report of 2GO skipper Captain Reynan Bermejo that M/V Sulpicio Express Siete was on the inbound lane contradicting the statement of Captain Rolito Gilo of Sulpicio," 2Go Group, the operator of the sunken ship, said in a statement. MV St. Thomas Aquinas sank within minutes of colliding with MV Sulpicio Express Siete at around 9 p.m. on August 16. The death toll rose to 81, while 39 remain missing.

TransAsia Nine Captain Galipher Ian Faller confirmed that the outgoing Sulpicio used the inbound lane, prompting his decision to overtake on its starboard (right side of the ship), they said.

TransAsia, which was in the area when the accident happened, was called to the hearing by SBMI for failure to respond to the distress call.

2Go said Faller also contradicted Sulpicio's claim that MV St. Thomas Aquinas 1 was on red signal. "Gilo said since M/V St. Thomas Aquinas was showing a red light, he thought the passenger vessel would turn to its right side," 2GO said.

According to Bermejo, at 8:23 p.m. the MV St. Thomas Aquinas detected on its radar an outbound vessel from the port of Cebu entering their inbound lane. Bermejo said the MV St. Thomas Aquinas radioed the vessel, but received no response from Sulpicio.

M/V Thomas Aquinas was traveling at around 15 knots and was a mile away from the Sulpicio Express, 2Go said. With .7 knots between the ships, Aquinas veered to the left, while Sulpicio veered to the right. By the time Aquinas veered toward the opposite direction, it was too late.

Bermejo explained that it takes around eight minutes for them to stop the propeller of the ship completely because the ship runs on a fixed-propeller system.

Before the collision, Faller said that M/V Sulpicio Express Siete asked them to shift to Channel 12, 2GO said.  Communication of ships should be in the official marine operations frequency of Channel 16 as indicated in the rules, according to Director Arnie Santiago of the Maritime Industry Authority. Faller explained that since there was interference in channel 16, he communicated with Sulpicio Express Siete and replied to a request to change radio channel to channel 12.

The investigation, which began on August 23, is expected to be completed within two weeks, as ordered by President Benigno Aquino III.

Image Credit: GMA News

Piracy - Frequently Asked Questions

27 Aug 13 - 13:45

The Japan P&I Club issues revised edition of Piracy FAQs

The Japan P&I Club has published a revised edition of Piracy related issues - Frequently Asked Questions. The document contains a total of 16 questions, covering issues such as armed guards, weapons of war, PMSCs insurance, ransom and guidance for attacks.

Find here below some of them answered by the Japan Ship Owners’ Mutual Protection & Indemnity Association (JPI) Club.

1. Do clubs cover piracy?

International Group (IG) club rules contain no definition of (or exclusion for) piracy. The thirdparty liabilities insured by the clubs remain covered when arising out of incidents of piracy.

These liabilities are potentially most likely to involve loss of life/personal injury/illness, trauma/stress treatment and counseling, crew substitution and repatriation, and crew/passenger loss of effects. Liabilities could also extend to pollution, wreck removal, and potentially cargo liabilities/General Average (GA) in the case of a shipowner's contributory fault or negligence. In relation to strict liability claims under International Conventions, the "intentional act" defence may provide some protection where/if applicable.

Such liabilities are, however, excluded from cover if caused by the use/engagement of certain "weapons of war" specifically named in club rules or "other similar weapons of war" to those specifically named. Also, while P&I liabilities arising from acts of piracy are not an  excluded risk, those arising from terrorism are excluded (and would fall under the shipowner's war risk cover). Furthermore, where primary war risk P&I underwriters include piracy as a specific named peril, there may be overlap between P&I liabilities arising from piracy covered by the war risk P&I underwriters and those covered by the IG clubs.

These FAQs are focused on piracy in the High Risk Area in the Indian Ocean. However, the following general principles apply equally in the Gulf of Guinea:

Conducting a voyage-specific risk assessment;

• Exercising due diligence in the selection of a private maritime security company (PMSC) (if their engagement is deemed necessary, based on the risk assessment); and
• Entering into contractual arrangements for the performance of security functions by a PMSC/privately contracted armed security personnel (PCASP) that do not prejudice club cover.The clubs also recommend shipowners take all lawful, prudent and appropriate measures to harden ships against attack as outlined in the most recent version of the Best Management Practices (BMP)(now in version 4 published in August 2011).

2. What does "similar weapons of war" mean?

"Weapons of war" are identified as being mines, torpedoes, bombs, rockets, shells and explosives. While club rules have no definition of "similar weapons of war", the specifically identified weapons of war indicate that something more than guns/rifles/conventional ammunition would be needed to trigger the operation of the exclusion.

The arms typically used by pirates to date (hand guns, rifles, AK47s, and RPGs) are treated by IG clubs as not triggering the exclusion. However, the increased use of PMSCs on ships could result in pirates resorting to heavier weapons of a type that triggers the exclusion. In this event, the liabilities would usually be covered by the shipowner's war risk P&I policy.

3. What do hull underwriters cover and what do war risk underwriters cover?

Depending on the shipowner's particular insurance arrangements, hull and machinery (H&M) underwriters and war risk underwriters will between them provide property cover (H&M/GA/salvage etc.) and war risk P&I cover. If a piracy incident triggers the club war  exclusion (by virtue of the weapons of war provision), the consequent liabilities are likely to be covered by war risk underwriters. Also, as stated in FAQ 1 above, some primary P&I war risk underwriters also cover piracy as a specific named peril.

4. Should shipowners carry guards?

There is no cover restriction or prohibition per se on the engagement of PMSCs or the use of convoy escort protection, and appropriately trained and competent PCASP may well assist in enhancing on board security procedures and the response to a piracy incident.In each case, the decision as to whether or not to engage a PMSC is an operational one for shipowners, which should be based on a voyage-specific risk assessment.The IG clubs expect their members to exercise due diligence in the selection of a PMSC, including following the latest version of the IMO's "Interim Guidance to Shipowners, Ship Operators, and Shipmasters on the use of privately contracted armed security personnel on  board ships in the High Risk Area", which was based upon industry guidelines and was issued by the IMO as Circular 1405 on 23 May 2011. Circular 1405 was subsequently revised in  September 2011 and May 2012.

The IG clubs also recommend that shipowners obtain positive confirmation of the steps being taken by the PMSC to secure compliance with the new International Standard for PMSCs, ISO/PAS 28007 and that the PMSC complies with the IMO's "Interim Guidance to Private Maritime Security Companies providing Privately Contracted Armed Security Personnel on board ships in the High Risk Area".

It is expected that PMSCs will be able to seek to be accredited against ISO/PAS 28007 in late 2013, following a pilot scheme that is currently underway.

There are some private and tate sponsored initiatives to develop systems for accreditation of PMSCs which initiatives are being monitored and, to the extent appropriate, supported by the industry, including the IG clubs. However, as far as the IG clubs are aware, no such initiative is yet sufficiently developed so as to be of much help to shipowners in choosing a competent, safe and professional PMSC. Development of industry standards will assist but not replace a shipowner's obligation to conduct appropriate due diligence in respect of individual PMSCs.

Consideration should also be given to the appropriate number of guards deployed. BIMCO GUARDCON provides for a minimum team of four persons. This is thought to be a good starting point for most vessels but the minimum number is best determined through a voyagespecific risk assessment that takes into account the relevant characteristics of the vessel (speed, freeboard, hull length, any areas vulnerable to boarding, etc.) as well as local factors in the High Risk Area to be transited (history of recent attacks, reports of suspicious vessels, anticipated weather conditions, etc.)

Whilst a failure to use a prescribed or recommended minimum number of guards will not automatically result in any restriction on cover, this could, depending upon specific circumstances and causation, potentially impact on cover.

The deployment of armed or unarmed security should not be a substitute for, but in appropriate cases, a supplement to effective compliance with the latest version of the joint industry BMP. A key part of compliance with BMP is the liaison with naval forces, who can provide valuable intelligence and in some cases physical help to ships whose owners have followed the BMP procedures to make contact with the Maritime Security Centre Horn of Africa (MSCHOA) and with the UK Maritime Trade Office Dubai (UKMTO) before entering the High Risk Area. Contact details are set out in BMP and where PCASP are to be carried, shipowners should make this known to MSCHOA and UKMTO.

5. Should guards be armed?

The previous strong opposition of industry associations to guardsbeing armed has softened in the light of increasing levels of piracy activity in areas distant from naval protection and against a background of increasing aggression against crews. There has been a shift from general opposition to neutrality, and in high risk cases, positive support for the deployment of PCASP.

The underlying reasons against arming security personnel remain the risks inherent in the use of arms by untrained/improperly trained persons, the enhanced risk of loss of life/injury through armed engagement, and the risk of encouraging the escalation of armed engagement and the use of more potent and warlike weaponry.

Flag and Port State restrictions and licensing requirements or prohibitions on carrying PCASP (and their weapons) on board vessels must also be carefully considered in any decision relating to the deployment of PCASP. It is important to ensure that the PMSC is able to demonstrate that their weapons have been purchased, stored, exported and transferred in accordance with all applicable laws, including by providing appropriate supporting documentation, clearly identifying the relevant issuing authority. The IG is advised that the International Chamber of Shipping (ICS) is maintaining a comparison of Flag State laws  applicable to PMSCs and PCASP which may be considered helpful in this regard.

Floating armouries are frequently used by armed guards, but the legality of their use is the subject of debate. Shipowners should be aware that the use of illegally sourced weapons (whether hired-in or owned) may potentially give rise to uninsured civil and criminal liabilities. Shipowners can mitigate this risk by obtaining evidence from their PMSCs that they do not use unlicensed floating armouries.

As of August 2013, the UK Government has announced that it will make available licences for  floating armouries on a case by case basis, as appropriate.

Where armed guards are used, if there is a choice between vessel protection detachments  made up of serving members of a military force, or PCASP, the former should be preferred, other things being equal.

A thorough voyage-specific risk assessment should be carried out in deciding whether to  deploy PCASP. In the event that the decision is to deploy PCASP, shipowners should follow the IMO's "Interim Guidance to Shipowners, Ship Operators, and Shipmasters on the use of  privately contracted armed security personnel on board ships in the High Risk Area".

It remains the firm view of the IG clubs, States and industry associations that crew should not be armed.

Learn more information in The Japan P&I Club document

Piracy Frequently Asked Questions, revised edition

St. Thomas Aquinas captain faces probe

26 Aug 13 - 18:14

Captain answers SBMI query on collision accident

The Manilla based 2GO Company, operator of the ferry MV Thomas Aquinas announced that the captain of the ill-fated M/V St. Thomas of Aquinas (STA) submitted himself for an initial investigation by the Special Board of Marine Inquiry (SBMI) at the Headquarters of the Coast Guard District Central Visayas in Cebu City.

Capt. Reynan Bermejo, vessel master of STA that was hit by cargo ship M/V Sulpicio Express 7 and sank at the vicinity off Lawis Ledge, Talisay, Cebu last August 16, appeared before the formal hearing in connection with the collision incident.

Bermejo formally presented before the Special Board of Marine Inquiry the signed affidavit narrating the events prior to and during the collision. During the hearing, Capt. Bermejo was asked by the SBMI to plot the waypoints of STA entering Lawis Ledge.

Positions before the collision was recalled by Capt. Bermejo and was asked by the SBMI to plot on the chart. The impact point was also identified and was pointed by Capt. Bermejo on the chart.

In addition, Bermejo said that many attempts to communicate with the M/V Sulpicio Express 7 vessel at Channel 16, which is the Official radio public frequency used by ships to communicate, were unanswered. Bermejo cited that only radar contact was made with the approaching cargo vessel. Further more, Bermejo stated to the SBMI that he was forced to alter the course because he did not get any response from the cargo ship's captain, Capt. Rolito Gilo.

Capt. Bermejo narrated the proper actions he has taken when danger was sensed. Through his testimony, Bermejo was able to establish that he was inbound, while M/V Sulpicio Express 7 was outbound with a point of collision on the inbound lane of the traffic separation scheme. This cleary states that the M/V Thomas Aquinas was in the correct lane as intended. The Master of STA also testified that he took evasive actions to avoid collision.

Bermejo also mentioned that he ordered hard port (Turing to the left side of the ship) to avoid collision as he could not go to starboard (Right side of the ship) due to shallow depth. After having turned left, Bermejo said he quickly maneuvered to the right in an attempt to avoid the "very imminent" collision, however, Bermejo cited that the Cargo ship also maneuvered to the right, thus resulting in the collision which could have been avoided if the Cargo ship remained in her course.

Master was able to explain why he could not maneuver to starboard because of landmark and shallow waters. STA communicated with outbound vessel (occupying inbound lane) but no response from outgoing vessel. Speed of STA upon approaching fairway - 16 knots with slight reduction to 15 knots upon order to stand-by.

When BMI asked why STA did not stop at 4 minutes before collision, Capt. Bermejo explained that STA was fixed propeller and it would take her 8 mins to stop, thus he decided to instead turn left to avoid collision. Master also explained the tide condition during the incident.

The M/V Sulpicio Express 7 occupied the inbound lane which was read on the ARPA (Automatic Radar Plotting Aid), which serves as a navigation guide for ships to plot courses and help detemine proximity to other ships and shorelines. Capt. Bermejo also explained that he was entering and following the inboud lane as stated in the "Traffic Separation Scheme (TSS)" and, thus, not a crossing situation.

Read also

Coast Guard may start probe on Cebu maritime tragedy

RS contributes to the container transportation safety enhancement

26 Aug 13 - 12:13

ACEP to organise a flexible container inspection scheme

According to the Russian Maritime Register of Shipping the IMO  CSC.1/ Circ.143 circular by IMO Maritime Safety Committee whichapproved Guidelines for Development ofApproved Continuous Examination Programme (ACEP) shall play a significant role in enhancing container transportation safety.

ACEP allows the owners of containers to organise a more flexible container technical inspection scheme which allows avoiding container withdrawal from the transport process in strictly defined intervals. The tool is foreseen by the International Convention for Safe Containers (CSC) as a container inspection scheme along with Periodical Examination Programme.

While ACEP have been widely spread worldwide, until now there has been no unified approach to the development, review and approval of such programmes, which in fact contributed to free interpretation of the CSC provisions. Yet, there is no consolidated list of such АСЕР programmes, whereby it is difficult to monitor which of the ACEP programmes are effective, what are the terms of application, etc.

Russian Maritime Register of Shipping (RS) as an organisation carrying out container inspections under its authorisation by the Administration, was among those at IMO who took lead in the discussion on the issue. On behalf of the RF Ministry of Transport RS participated in the meetings of the Sub-Committee on Dangerous Goods, Solid Cargoes and Containers (DSC) of IMO, including plenary sessions and working group on the Guidelines drafting as well as in a pilot project to model and maintain a list of ACEP programmes.

The consideration of ACEP programmes list maintenance for general use is included into the agenda of the forthcoming session of DSC Sub-Committee to be held on 16 - 20 September, 2013 in London.

In the container industry RS has performed its activities since 1973. RS activities cover all stages of the container production cycle. RS cooperates with the majority of companies from Russia, CIS coun-tries and Baltic states dealing with design, manufacture, testing, transportation and operation of containers. RS represents Bureau International des Containers (BIC) at the former USSR territory, is a full-member of the International Tank Container Organization (ITCO), participates in the development of the regulatory base on containers within the International Organization for Standardisation (ISO) and GOST R Technical Committee "Containers". RS performs container examination as per Periodical Examination Programme and also carries out its activities according to АСЕР programmes in compliance with the latest requirements.

Charges laid over discharge of oil into the sea

21 Aug 13 - 15:37

Maritime New Zealand charges vessel operator

Maritime New Zealand (MNZ) issued a media release according to which three charges have been laid against a vessel operator. This followed after an investigation into alleged illegal dumping of oil into the sea of New Zealand’s Exclusive Economic Zone from the Korean foreign charter fishing vessel Pacinui.

The company is charged with illegal discharge of a harmful substance – oil – from the vessel (under s237 of the Maritime Transport Act), failing to notify MNZ of the discharge (s238), and failure to notify a pollution incident (s239).

The discharge of a harmful substance charge carries a maximum penalty of two years imprisonment or a fine of $200,000.

The two other charges each carry a maximum fine of $100,000, and for a continuing offence, a further fine not exceeding $20,000 per day or part day the offence is committed.

The charges follow an extensive investigation since January 2013 by MNZ investigators, including examination of the ship in Timaru, gathering of photographic and video evidence, forensic examination of samples, and interviews with a number of Indonesian crew members.

Crew members will be available to appear as witnesses in the case, if required.The case is due to be called for the first time in Timaru District Court on 26 August, 2013.

MZN noted that as the matter is before the courts,it is unable to comment further on the detail of the case.

CLIA welcomes entry into force of Maritime Labour Convention

21 Aug 13 - 13:29

Cruise industry maintains strict workplace standrads

Cruise Lines International Association (CLIA) announced it welcomes the entry into force of the International Labour Organization's (ILO) 2006 Maritime Labour Convention (MLC).   The MLC provides further worker protections and rights for crewmembers, providing them specific rights related to all facets of employment, including wages, hours, medical care, annual and shore leave, and room and board.

The cruise industry maintains strict workplace standards set by the ILO and the International Maritime Organization (IMO) - both international regulatory bodies.  The ILO governs labor conditions, including the standards for hours of work and rest for crew aboard ships, and requires member States to ensure ships comply with applicable international labor conventions and associated national laws. Additionally, all CLIA members must comply with all international regulatory requirements governing the safety, security and fair treatment of seafarers.

"We welcome the entry into force of the MLC and our member lines are committed to fostering safe, professionally rewarding, and enjoyable work environments onboard their ships," said Christine Duffy, President and CEO of CLIA.  "CLIA and its members strongly support robust worker protections for crewmembers."

CLIA members have previously adopted and implemented a Shipboard Workplace Code of Conduct that calls for the highest level of business integrity and fair treatment of employees and addresses a wide range of issues that could arise in the ship-board work environment. Under this long-standing policy, among many other provisions to protect seafarers, all ships are to maintain an environment in which crewmembers may express complaints and obtain resolution of those grievances without fear of retaliation or retribution.

For more information read the CLIA Shipboard Workplace Code of Conduct

Long-term potential for increased shipping efficiency

21 Aug 13 - 16:57

ICCT study finds industry-leading ships twice as efficient as laggards

A novel analysis that connects 2011 in-use fleet characteristics, global satellite data on ship movement, and literature on ship technology to assess the long-term prospects for increasing shipping efficiency has been published recently by the International Council of Clean Transportation (ICCT).

Maritime shipping is highly fuel-efficient, but its sheer volume and rapid growth make it a major consumer of energy and source of carbon emissions. As the shipping industry and governments seek ways to reduce shipping's overall energy and carbon footprint, the answers to many questions remain elusive. Among these questions are how much variation in shipping efficiency is seen in the real-world fleet, and how quickly shipping can move to embrace best technical and operational practices to increase shipping efficiency.

This research offers a novel analysis that connects 2011 in-use fleet characteristics, global satellite data on ship movement, and literature on ship technology to assess the long-term prospects for increasing shipping efficiency. The underlying satellite-based data allows for more in-depth knowledge of real-world operational ship speed and its relation to ship efficiency than previous analyses. This analysis also investigates how efficiency characteristics (age, size, technology, operational practices) influence the efficiency of the shipping fleet, and develops a ship stock turnover model to independently track technical and operational efficiency practices in ships.

The findings indicate that industry-leading ships are about twice as efficient as industry laggards across major ship types. To put this in perspective, for example, the top 5% of container ships have a carbon dioxide (CO2) emission intensity (i.e., emission rate per unit of cargo carried) that is 38% lower than industry-average container ships,whereas the bottom 5% have 48% higher CO2 emissions. Even broader efficiency variation is seen between shipping industry leaders and laggards across the other major ship types. Part of this variation is a matter of how quickly new ship technology is entering the fleet, and how new, generally larger ships are increasingly and substantially more efficient, and have more sophisticated engine controls that allow them to more fully and more frequently benefit from speed reduction, so that their operational in-use efficiency more closely matches the technical efficiency as designed.

These findings indicate that the sector has a long way to go before best operational practices and best available efficiency technologies fully enter the shipping fleet. This report analyzes several low-carbon pathways that investigate the expansion of best in-use ship efficiency practices across the shipping fleet over the long term. The Figure here below illustrates the high-level fleet findings from the analysis. the figure illustrates scenarios for the existing energy efficiency Design index (EEDI) standards, technical efficiency that goes beyond EEDI compliance, additional operational strategies for efficiency, and a final scenario in which the whole fleet embraces today's leading efficiency practices.

Figure: Shipping fleet CO2 emissions with efficiency standards, additional technologies, and full deployment of best available technology and best practices for in-use ship efficiency

This analysis indicates that, by fully embracing the available technical and in-use practices of the low-carbon industry leaders of today, there is the potential to reduce CO2 in absolute terms even while business-as-usual freight movement doubles. Moving to industry-leading ship efficiency practices could amount to reductions from business-as-usual efficiency practices of 300 million metric tons of CO2 per year and 2 million barrels of oil per day by 2030.

This study has important implications for the shipping industry, shippers, and perhaps ultimately consumers. Analytical approaches such as the one utilized here suggest that data and methods are at hand that shipping companies can use to more precisely compare their own practices with those of their peers. Shippers could increasingly demand a more precise accounting of ships' age, technical efficiency, and in-use shipping efficiency. Based on the data in this assessment, there is the potential to develop a tool to be used by shippers to quantify, evaluate, and compare their supply chain carbon footprints in a manner that does not rely on more aggregated fleet-average simplifications.

Ship efficiency and CO2 emissions

If each ship type, on average, operated at its design efficiency, the fleet would have about 38% lower CO2 emissions in operation, although some types, such as containerships, already operate much closer to their design efficiency.

One ship type stands out: the product tanker data are much higher than the average design efficiency due to the inclusion of boiler fuel use in the operational in-use data but not in their design efficiency data. the figure also illustrates the much greater in-use  efficiency, and much lower CO2 emissions, of the "top 10%" and "top 5%" leading ships compared to the industry average.

The data within the figure for the "top 5%"efficiency leaders illustrate the efficiency-leading subsets of ships that haul 5% of the cargo within each type, and have 38-65% lower CO2 than the ship type average.

These leading efficiency practices, in turn, underlie the analysis below about the potential impact of leading industry practices within each ship type being adopted over the next several decades.

Figure: In-use ship efficiency, technical efficiency, and industry-leading efficiency within each ship type

ICCT study Conclusions

The analysis shows the two faces of international shipping. Shipping, on a globally averaged basis, is a highly efficient, low-carbon-intensity freight transport mode. At the same time, the sector's contribution to climate change is large due to the sheer volume of international ship-based commerce.

Figure 13 summarizes the overall carbon intensity and goods movement volume of different freight modes in 2011. The shipping data shown in the figure are from this study, with the range defined by the averages of the nine different ship types, and with the error bars representing the full range from the bottom 5% and top 5% efficiency practices in each ship type. The data from the other modes are from a number of different sources. For rail freight and heavy-duty vehicles, the carbon emissions are based on the range of national average CO2 emission rates from the ICCT's roadmap model (Façanha et al, 2012).

The range for air freight carbon intensity is derived from the fuel consumption of representative dedicated air freighter and belly freight, based on ICCT modeling with Piano-X. The freight activity data (i.e., cargo carried times distance traveled) for the various modes are also from the icct roadmap model, as well as from Boeing (2012) for air freight activity.

Figure 13 shows how international shipping can have substantially lower carbon intensity than other freight modes. Shipping, in the aggregate, can offer similarly low-carbon freight transport as seen in the rail sector. Shipping's carbon intensity is, on average, about one-tenth that of heavy-duty vehicles and about one-hundredth the average carbon intensity of air freight (note that the left y-axis for carbon intensity is in log scale). However, overall goods movement activity, measured in cargo carried times distance traveled, from ships is greater than that of freight activity by rail, heavy-duty vehicles, and air combined.

Figure: Carbon intensity and global transport activity of different freight modes

Shipping offers a substantially lower carbon intensity than the other freight modes.

However, this analysis reveals how much further the shipping industry can reduce emissions if it can achieve a level of efficiency near the current industry leaders within each ship type. For example, within the containership segment, the top 5% leading efficiency ships have 38% lower carbon intensity than the sector average, while the bottom 5% industry laggards emit 48% more CO2 emission than average to move one unit of cargo over a given distance. This means a shipper putting its goods on the laggard ship would have a carbon intensity (and therefore an associated fuel use per cargo unit) 2.4 times higher than the industry-leading group employing the best technology and in-use operational practices. Similar variation is seen across the ship types. The wide variation indicates that moving the entire fleet to top 5% industry practices for the major ship types of tanker, containership, general cargo, and dry bulk carriers would reduce fuel use by approximately 40-60% from the 2011 industry average.

This research points to an overall low-carbon pathway for international shipping whereby such industry-leading practices are more widely adopted. The shipping industry has made great efforts to increase its energy efficiency and reduce its carbon emissions from new ships, and these efforts could be extended into substantial in-use efficiency improvements. As global goods movement expands, shipping activities could continue to grow at a rate that outpaces overall economic growth, placing an even greater importance on efficiency improvements. On the fleet level, a combination of new ship efficiency standards (the EEDI) and much greater penetration of technologies and operational practices could cut ship carbon intensity in half by 2035-2040. These efficiency gains can negate business-as-usual CO2 emission and oil consumption growth that would occur from the doubling of shipping activity in the 2040 time frame. The findings here indicate that moving to industry-leading ship efficiency practices could reduce emissions of CO2 by 300 million metric tonnes per year, and oil consumption by 2 million barrels per day, by 2030.

Mitigating the industry's climate impact can be fully compatible with the business bottom line if done with appropriate lead time. As fuel costs increasingly erode the shipping industry's profitability, raising efficiency will become an important way to preserve profits. The technologies and practices underpinning the low-carbon pathways explored here lead to net savings and are proven by 2011 industry leaders that make up 5% of international maritime commerce across ship types. Achieving such efficiency requires a high level of sophistication in logistically managing a more highly efficient fleet, including incorporation of slow steaming, greater integration of various energysaving practices and implementation of more rigorous maintenance and repair practices. As fuel savings by more efficient fleets begin to drive down freight rates, and as market barriers to efficiency begin to be addressed, the industry will have more direct incentive to follow such low-carbon pathways.

This analysis lays forth a fresh approach that could enable shipping companies to examine their efficiency against industry peers. the underlying technical method and data offer a novel opportunity for shippers to more precisely and more proactively seek more efficient ships although this analysis has focused on high-level aggregate findings, its ship-by-ship analytical basis tells a clear story about just how wide the variation in ship efficiency, and therefore fuel consumption, is-and this variation has not been conventionally acknowledged or made publicly available in any usable form.

This analysis is only a first step to help shed light on efficiency differences in the fleet. Greater acknowledgement of, and transparency about, ships' in-use efficiency could help inspire a "race to the top" to reduce goods' carbon footprint through the supply chain. Shippers are critical players in the race, and the tools are at hand for them to demand greater information about how their goods are being transported. Policymakers with an interest in moving the entire shipping fleet toward industry-leading practices to drive carbon reductions may have a role as well.

Learn more about the study, by reading the ICCT paper

Long-term potential for increased shipping efficiency through the adoption of industry - Leading practices

Tanker Shipping - Improving asset prices for product tankers

20 Aug 13 - 10:59

BIMCO report shows freight rates elevated in crude sectors

BIMCO has published the results of the report for the tanker shipping sector.The first half of 2013 has passed and there is a positive note as we enter into the second half of the year. Freight rates have been elevated in all crude sectors in recent weeks.

Apparently, too much tonnage leaves charterers spoiled for choice and owners anxious whenever the tonnage lists get too long. However, gravity has been defied recently, as earnings did not return to the devastating levels seen earlier in 2013 as forecast, but instead went close to USD 25,000 per day in the first part of July.

The market for crude oil tankers hasn't been particularly upbeat in the first half of the year. While a few pick-ups in earnings did arrive, the overall impression is one of discomfort. In the oil market as such, China stays the positive factor for now, unless it too begins to produce more crude domestically. Some signs of that have surfaced during the first half of the year. It remains a negative event for the crude oil tanker market if China, like the US, becomes more self-sufficient than is the case today.

All focus continues to be on product tankers, as the crude oil tanker segment is still experiencing some very tough times in the freight market. In short, product tanker supply growth is expected to see its lowest level of new deliveries in a decade, as BIMCO projects 4.3 million DWT to be delivered for the full year.

The product tanker orderbook now holds 38% more tonnage at 14.3 million DWT, comprising 229 ships, up from the January low at 10.4 million DWT. One hundred and thirty of these 229 ships are in the “hyped” MR segment, but LR2 product tankers are also in fashion, with 40 new ships ordered in the past 14 months.

In the meantime, the crude oil tanker segment is still bracing itself for the expected impact of 22.7 million DWT of new tonnage, offset by 10 million DWT of tonnage sold for demolition. This will see the fleet grow by 3.4%.

When will “normality” again prevail in the chartering market? The poor freight market has turned the charter rates upside down since the collapse back in 2009. In todays’ market, the longest-lasting time charters also reap the highest freight rate. This goes for all oil tanker segments. Whether rates have reached the bottom for crude oil tankers is unlikely, as illustrated by the falling Aframax t/c rates.

BIMCO expects that T/C equivalent average earnings for the VLCC segment will settle somewhat from recent highs in the interval of USD 7,500-17,500 per day. Suezmax crude oil carriers are seen up from recent lows at USD 10,000-20,000 per day. For the Aframax segment, expectations are that earnings will remain around USD 8,000-18,000 per day.

In the product segment, BIMCO expects earnings on benchmark routes for LR1 and LR2 from AG to Japan will pick up a bit after some weakness recently to hit the interval of USD 7,500-17,500 per day.

Handysize rates have seen significant volatility lately, but are expected to be more stable in coming months at USD 8,000-13,000 per day. MR clean rates hold up nicely nowadays and are expected to spend more time in the sun. For the coming two months, BIMCO expects freight rates around USD 9,000-14,000 per day.

For more information, read the BIMCO report Tanker Shipping - Improving asset prices for product tankers