Thursday, October 30, 2008

Casilda fined for US dumping

30 Oct 2008
Rio Gold
Rio Gold

CASILDA Shipping of Malta, owner of the bulker Rio Gold, has been fined $750,000 for the vessel’s illegal dumping of before docking at Oakland in May. 

The company pleaded guilty yesterday to conspiring to falsify waste disposal records. A court found that a ‘magic pipe’ had been used to bypass the pollution control system. 

The 39,695dwt ship’s operator at the time, Genesis Seatrading, has been given three years’ probation and ordered to follow a strict environmental compliance programme. 

The chief engineer, Pantelis Thomas of Greece, was fined $5,000 and put on three years’ probation. They pleaded guilty to conspiracy and failing to maintain an accurate oil record book. 

Under a plea agreement, $250,000 of the fine will be used for coastal restoration. Crew members blew the whistle on the dumping.

Wednesday, October 29, 2008

Pilot Commission Finds Cosco Busan Pilot John Cota At Fault

Pilot Commission Finds Cosco Busan Pilot John Cota At Fault
October 25th, 2008

Carl Nolte of the San Francisco Chronicle writes:

According to a report released Thursday by the state pilot commission…
“There was unequivocally pilot error,” said Gary Gleason, an attorney for the state Board of Pilot Commissioners, which is appointed by the governor to regulate ship pilots in San Francisco, Suisun and San Pablo bays.

John Cota was in control of the 901- foot-long container ship Cosco Busan when it smashed into one of the towers of the Bay Bridge on Nov. 7. The crash caused a 220-foot long gash in the side of the ship and punctured the ship’s fuel tanks. More than 50,000 gallons of heavy fuel oil spilled out, fouling 26 miles of shoreline and killing more than 2,000 birds.
Gleason presented the report to the seven members of the commission and closed with a recording of Cota’s voice, made on the Cosco Busan just after the accident.
“Oh, yeah, it’s so foggy. I shouldn’t have gone,” the pilot said. “I’m not going to do well on this one.” As Cota spoke, the mournful sound of the ship’s fog signal was heard in the background.

Monday, October 27, 2008

Today in Great Lakes History

Today in Great Lakes History

October 28

On 28 October 1891, DAVID STEWART (3-mast wooden schooner, 171 foot, 545 gross tons, built in 1867 at Cleveland, Ohio) was dragged ashore off Fairport, Ohio by a strong gale. She was stranded and declared a total loss. However, she was salvaged and repaired in 1892 and lasted one more year.
The CANADIAN PIONEER's maiden voyage was on October 28, 1981, to Conneaut, Ohio to take on coal for Nanticoke, Ontario.
The CANADIAN TRANSPORT (2) was launched October 28, 1978, for Upper Lakes Shipping Ltd., Toronto, Ontario.
Cleveland Tankers GEMINI was christened October 28, 1978, at Huron, Ohio.
The GEORGE M. CARL (2) was launched October 28, 1922, by American Ship Building Co. at Lorain, Ohio as a.) FRED G. HARTWELL (2) (Hull# 781) for the Franklin Steamship Co.
D. M. CLEMSON (2) (Hull# 716) was launched October 28, 1916, at Lorain, Ohio by American Ship Building Co. for the Pittsburgh Steamship Co., Cleveland, Ohio.
CHARLES M. WHITE was launched October 28, 1945, as a C4-S-A4 cargo ship a.) MOUNT MANSFIELD for the U.S. Maritime Commission (U.S.M.C. Hull #2369).
On 28 October 1887, BESSIE BARWICK, a 135 foot wooden schooner built in 1866 at St. Catherines, Ontario as a bark, left Port Arthur for Kingston, Ontario with a load of lumber during a storm. For more than ten days, her whereabouts were unknown. In fact, a westerly gale drove her into the shallows of Michipicoten Island and she was pounded to pieces. Her crew was sheltered by local fishermen and then made it to the Soo in a small open boat.
On 28 October 1882, RUDOLPH WETZEL (wooden propeller tug, 23 tons, built in 1870 at Buffalo, New York) was racing for a tow with the tug HENRY S. SILL when her boiler exploded 12 miles north of Racine, Wisconsin. She quickly sank. All three on board were killed and none of the bodies were ever found.
Data from: Joe Barr, Dave Swayze, Father Dowling Collection, Ahoy & Farewell II and the Great Lakes Ships We Remember series. This is a small sample, the books include many other vessels with a much more detailed history.

More for MOL

Mitsui OSK Lines (MOL) has posted a bigger interim profit, but has cut its annual earnings forecast as markets take a turn for the worse.

The Japanese owner, one of the big three in the country, said net profit in the six months to 30 September was JPY 124bn ($1.34bn), compared to JPY 87bn in the same half of 2007.

Revenues broke through the trillion barrier, reaching JPY 1.09 trillion, up from JPY 940bn a year ago.

It said bulker profits rose due to contracts banked during all-time highs in the summer, but rates fell sharply thereafter.

Crude tanker rates remained high in the period, and products carriers improved from July, leading to a slight rise in overall earnings.

The combined tanker and bulker division made an operating profit of JPY 171bn, against JPY 126bn in 2007.

The containership business was hit by weaker trade on key east-west routes, plus yen appreciation against the dollar and bigger fuel bills. Earnings were down at JPY 2bn from JPY 8bn the year before.

Profits for its domestic ferries fell due to higher bunker prices.

MOL cut its full-year net earnings forecast by 7% to JPY 195bn and its shares plunged 6.9% to JPY 379, its lowest close for more than five years.

Saturday, October 25, 2008

Dry fall rolls on

Dry-cargo owners were again posting heavy losses on stock exchanges throughout Europe Thursday following further falls among their Asian and US-listed peers.

The Oslo Stock Exchange.

Goldenport, Jinhui, Golden Ocean, Norden and Torm all saw further percentage points disappear from their market values as fears of recession and a drop in commodity prices persist.

Paris Dragnis-led Goldenport headed the fallers as its stock was hit hard for the second successive day in London.

It dropped 13.33% to £1.30 ($2.10) per share at the time of writing to top the TradeWinds Shipping Index of today’s worst performing shipping stocks.

Over in Oslo, Jinhui dropped 13.18% during morning trading to continue a trend which has seen its share price fall by 58.81% during the past month.

John Fredriksen’s Golden Ocean was also showing further reversals in Oslo as dry-cargo charter rates flounder. Golden Ocean was trading down 7.26% at NOK 8.81 ($1.23) per share at the time of writing, a decline of more than 53% this year.

Bulker owners enjoyed similar fortunes in Copenhagen today as Norden and Torm both dropped by nearly a tenth.

Torm plunged 9.55% to DKK 80.50 ($13.81) per share, while Norden shed 9.46% of its value in slipping to DKK 174.75 per share.

TradeWinds reported earlier today that shipping stocks had struggled throughout Asia, with Pacific Basin Shipping and STX Pan Ocean among the biggest fallers. 

The slump in Asian stocks was hot on the heels of further pain for US-listed shipowners Wednesday.

London-based Britannia Bulk Holdings and Peter Georgiopoulos-led Genco Shipping & Trading saw their market values hit, while rivals Eagle bulk Shipping, TBS International, FreeSeas and DryShips also fell. 

Maersk Line has cut Asia-to-Europe capacity by a tenth due to the global economic slowdown.

Maersk Line has cut Asia-to-Europe capacity by a tenth due to the global economic slowdown.

The world’s largest containership owner will chop its AE8 service from 10 November, confirming reports in TradeWinds print edition this week.

Maersk said: “The changes are made in light of the challenging market conditions.”

The temporary suspension of the AE8 service, between Le Havre and Yokohama, will reduce weekly capacity by 7,600-teu, it says.

It was rumored Maersk would lay up tonnage after cutting the service. But it is understood the ships are only temporarily idle, with the line ready to follow others and put ships into semi-layup over Christmas, TradeWinds newspaper reports today.

Conditions are bleak with Far East Freight Conference (FEFC) figures showing Asia-to-Europe trade shrinking 2.7% during the third quarter.

Maersk’s move comes hot on the heels of rival APL’s decision to slash Asia-to-Europe activity by a quarter as part of a major reshuffle.

The NOL unit will bin its China Europe Express (CEX) service from 2 November. It has also frozen its Pacific South Express 3 (PS3) service, the Pacific South West (PSW) run and the Singapore Subcontinent Express (SSX) service in the intra-Asian market.

Friday, October 24, 2008

Trivia on Tonnage Measurement

(Tonnage Measurement, 1762)

There are three ways of measuring ships now in use:—

Mr Baker's Old Rule — The old way, which was established in Queen Elizabeth's time, and never questioned all King James time, is this: The length of the keel, leaving out the false post, if there be any. Multiply by the greatest breatdh within the plank, and that product by the depth taken from the breadth to the upper edge of the keel produceth a solid number which divided by 100 gives the contents in tons, into which add one third part for tonnage, so have you the tons and tonnage.

The Adventure of Ipswich

Length 63.6 1802 7737
Breadth 26.2 1417 8037 Within ye plank.
Depth 11 1041 3927 To ye upper edge of the keel.
Divisor 100 70
Tons 182,80 1261 9701
One third for tonnage 60,93

243,73 tons and tonnage.

It is credibly averred by Sir H. Mervyn and Sir H. Palmer that the old way of measuring was to take the breadth without ye plank and the depth from the breadth to the lower edge of the keel. And this was Bakeräs way of measuring.

Second Way — The second way is assumed by the shipwright of the river to be the old way, but it is not, which makes the ship to be 28 in the hundred greater than the former, and is this: The length of the keel taken as before, or ought to be. The breadth from outside the plank to outside. The depth or draught of water from the breadth to the bottom of the keel all multiplied together and divided by 94 (say they) give the content in tons, into which add one third for tonnage.

Length 63.6 1802 7737
Breadth 26.8 1426 230 Without ye timber and plank.
Depth 12.3 1088 1361 To ye lower edge of keel.
Divisor 94 8026 8721
Tons 220,71
One third for tonnage 73,57

294,28 tons and tonnage.

If you divide this by 100 (which is said to be here done by 94) it is ye true old way, called Baker's way.

Third Way — The third way was proposed by Mr Gunter, Mr Pett, Mr Stevens, Mr Lyddiard, and myself, who were required by warrant from my lord Duke of Buckingham and the commissioners for the navy (then being) to measure the Adventure of Ipswich, the greatest bilged ship in the river, and from her dimensions to frame a rule that in out best judgements might be indifferently applicable to all kinds of frames. This we performed and yielded our reasons for it, which, to avoid the abuse of furred sides and deep keels and standing strakes, which increaseth the burden but not the hold, was thus: the length by the keel as the first; the depth in hold from the breadth to the seeling; the mean breadth within that seeling at half that depth multiplied together, and the prpduct divided by 65, gives the tons, into which add one third part for tonnage.

Length 63.6 1802 7737
Breadth 22 1342 4227 Within the seeling.
Depth 9.8 985 4265 To the seeling.
Divisor 65 8187 866
Tons 207,83 2317 7095
One third for tonnage 69,27

277,10 This increaseth 12 per 100 above the old rule.

There is a fourth way, devised by the shipwrights and Trinity masters, but exploded for the great excess which makes the ship 30 in the hundred greater than the first, and it is thus: length of the keel as at first, middle breadth beneath the greatest, viz. the breadth at the wrunghead, depth to the outside of the plank, all multiplied together and divided by 70.

Length 63.6 1372 5438
Breadth 23.7 1051 1525 Without timber and plank.
Depth 11.3 1802 7737
Divisor 70 8154 9019
Tons 240,68 1381 3719
One third for tonnage 80,22


Box blues

There is a crisis on the boxship front with up to 60 ships out of work as the slump bites hard.
Up to 60 containerships are unemployed around the world as demand dries up from beleaguered carriers.
Hamburg-based market sources estimate that some 50 to 60 boxships of all sizes are likely to be looking for charters by the end of this week. Others quote a lower number of vessels but using a capacity cut-off of 1,000 teu.
However, vessels up to 3,500 teu are joining the queue for business and some analysts forecast that slowing trade will hit even the biggest ships next year with up to 70 of 6,000 teu to 9,000 teu possibly surplus to demand.
"Overall, the build-up of spot or very prompt tonnage continues with [more than]35 vessels above 1,000 teu in this position worldwide," said London's Braemar Seascope Containers in its latest weekly report.
Other brokers contacted by TradeWinds came up with a similar number of 35 ships bigger than 1,000 teu immediately available without employment. The numbers include half-a-dozen available as sublets.
"Some ships have been waiting for quite a long time," added one broker with most sources pointing to the heaviest pressure on vessels of around 1,700 teu.
Unusually, bigger ships are suffering as well. "The 3,000-teu geared Wadi Alrayan (built 2000) has been without business in the Mediterranean for six weeks," said Hamburg-based shipbroker Harper Petersen in a report. The 3,400-teu Johannesburg (built 2006) was another ship said to be seeking a charter this week.
And AXS-Alphaliner estimated: "Between 60 to 70 ships of 6,000 teu to 9,000 teu could be surplus to demand if world seaborne trade stagnates, before allowance for extra slow steaming." ( see story, right ).
Crashing freight markets are largely to blame for a lack of fixing appetite. Fast-falling cargo rates and volumes on the once mighty Asia-to-Europe trade "have led more operators to curtail or halt services, meaning many potential charter requirements can be covered internally as the lines reshuffle their deployment and more relets come to the market seeking employment," Braemar Seascope said ( see story, page 14 ).
Freight rates had started to recover slightly on the Asia-to-Europe trade but spot prices have nosedived below $400 per teu again to lows of $350 reported in some cases as a rate-war intensifies over falling volumes. Insiders describe the rates as suicidal and without precedent.
Brokers say hopes of an autumn pick-up for the Christmas shipping and shopping period can be largely forgotten as carriers would have to be fixing ships by now to get them in place in time.
Many ships are being fixed for periods of just a few days to weeks and are therefore in and out of work at different times. Some of those handed back by China's Shandong Yantai International Marine Shipping (SYMS) in late August are said to still be idle or taking short-term jobs.
Charter rates for 1,700-teu ships have been hit hardest by the lack of employment. Levels are slipping down below $12,000 per day with that figure quoted for a 12-month fixture of the 1,675-teu ACX Magnolia (built 1998) by TSK Line. The rate is down some 33% in the past five months including a $1,250-per-day drop in the past 30 days.
Vessels in the 1,100-teu category had stood up better than bigger boxships, despite a large number being handed back, but rates are now dropping below $10,000 per day down $1,500 in the past month. French giant CMA CGM is said to have extended the Delmas Maroc (built 2006) for six months at $9,700 per day.
By Paul Berrill, London

Thursday, October 23, 2008

Vietnam Discovery Update

SOCO International plc

The second of two planned drill stem tests on the Te Giac Den (“TGD-1X-ST1”) discovery well on Prospect “E” has recovered black oil, condensate and gas, indicating the presence of oil with similar qualities to that of the Ca Nu Vang Field, which will begin production later this month. The well encountered approximately 120 metres of good oil and gas shows in a combined gross interval of 570 metres. Permeability and porosity were preserved and compared favourably with pre-drill estimates.The “E” Discovery well confirms the presence of a working hydrocarbon system in a high pressure environment necessary to recover hydrocarbons at these depths. Therefore, appraisal drilling will commence following the well data analysis and seismic reprocessing. The well design and drilling programme will also be revised to allow a better evaluation of each of the hydrocarbon bearing formations. The Adriatic XI rig will immediately move to the Te Giac Trang Field and drill the TGT-7X appraisal well on the H3 north fault block.

Ed Story, President and Chief Executive of SOCO, commented: ”As we previously highlighted, the significance of the TGD discovery, at this stage, is the confirmation of the Appraisal Area. Furthermore, the presence of a working hydrocarbon system on such a vast structure underscores the future value of this Discovery and the potential to continue to significantly grow the Company’s reserve base in Vietnam.”

Wednesday, October 22, 2008

London falling

George Karageorgiou-led Globus Maritime saw its stock battered in London Wednesday on another dark day for bulker owners.

Shares in Hellenic Carriers and Goldenport were also ravaged as a lack of trade financing continues to blight bulker rates.

Globus stock plunged by over 31% during the day to close at £1.20 ($1.95) per share. Hellenic Carriers saw 18.27% sliced from its market value, while Goldenport finished the day 18.03% down at £1.50 per share.

One analyst said: “People are clearly concerned about the issues faced by the dry-cargo market and the impact of the lack of trade financing and the letters of credit situation on individual companies.”

He adds that each of the three stocks is relatively liquid with trading volumes far lower than some of their dry-cargo peers.

Addressing the fall in Globus’ shares, the analyst says the recent sale of a vessel adds additional complexity as falling rates and declining asset values in the sector raise fears about whether sale and purchase deals will be completed.

“There is a change buyers might walk away in the present market,” he said.

There is no evidence to suggest that Globus’ sale of the 43,200-dwt Ocean Globe (built 1995) to Nikator Navigation for $52.25m will fail.

Dry-cargo stocks also suffered in Oslo, with Jinhui diving 10.30% and Golden Ocean down 4.04% at the close.

Yard bankrupt

Havyard Solstrand shipyard is fighting for its future today after filing for bankruptcy, company sources say.

Solstrand, which is 80% owned by the Havyard Group, says bankruptcy was inevitable due to rising production costs.

“This has been coming for some time because the contract prices are much lower than the production costs of the vessels,” a spokesperson said.

“The owners and the banks won’t finance it so there is no other way than bankruptcy.”

Company sources say meetings are currently ongoing in Norway in the hope of rescuing the situation.

An insider says the yard is now a “going concern but there is still hope the company can be saved".

“It is good news and bad news today as we hope to be taken over,” he said.

The spokesperson confirms Havyard, owned by the Saevik family, is considering taking full control of the yard.

Solstrand currently has seven newbuildings on its books, comprising three platform supply vessels (PSVs) and four fishing boats.

The yard still hopes to complete the PSV orders but it is unlikely all seven ships will be built, TradeWinds is told.

Construction of the three PSVs is underway but the yard has yet to start building the other four units and is now unlikely to do so.

Siem, Trico and Havila are said to have vessels on order at the yard.

Tuesday, October 21, 2008

US stocks dip

US shipping stocks shed value Tuesday, following Wall Street on a down day, but the movement was milder than in many recent one-day drops.
The day saw measures of broad industry exposure post losses, with the Philadelphia Stock Exchange’s Marine Shipping Index losing 2.3% to hit nearly 220 points.
US stock exchanges have taken shippings stocks for a wild ride.The Claymore/Delta Global Shipping fund, meanwhile, closed 1.5% lower, settling at $12.59.
Shipping shares joined broader markets in a day that saw the Dow Jones Industrial Average lose 231 points, or 2.5%, after a 413 point jump the day before.
The financial media are blaming the slip on the beginning of the financial earnings season, which already has seen profit drops among major companies.
Bulker owner stock prices painted a mixed picture Tuesday, after another day of falling spot fixtures.
OceanFreight jumped by 15.7% to $7.61 and Navios Maritime Partners gained 13.1% to close at $7.61 after both companies said they would keep their third-quarter dividends at previously announced levels.
But George Economou’s DryShips dropped by 8.6% to $22.69 and fellow Greek bulker owner Navios Maritime Holdings lost 6.6% to reach $3.80.
Among the biggest decliners, Miami-based cruiseship owner Royal Caribbean Cruises dropped 9.8% to close at $18.68, even though rival Carnival Corp remained relatively unchanged at $29.92.
Grupo TMM and US Shipping Partners, with their shares trading for just pennies, continued to take wild percentage swings. The Mexican tanker owner lost 19% to close at $0.64, while the US tanker and tank-barge player shed 14.6% to hit $0.94.

Sunday, October 19, 2008

Trading quizzed

Trading quizzed
Dry-bulk stalwart Jinhui Holdings has been forced by the Hong Kong Stock Exchange to comment on “unusual price and volumes movements” as its shares took another battering.
The Hong Kong and Oslo-listed outfit has now seen its share value plummet over 450% in three months and they currently sit well below the HKD 1 ($0.13) mark.
Another almost 23% drop on Friday was cause for concern but clearly what caught the eye of authorities at the city’s exchange was the large number of Jinhui’s shares traded through the day.
“The board is not aware of any reasons for such unusual movements,” was Jinhui’s response to the exchange’s request for an explanation for the slump in price and unusual volume of shares traded.
“The board also confirms that there are no negotiations or agreements relating to intended
acquisitions or realizations which are¿Neither is the board aware of any matter¿which is or may be of a price-sensitive nature.”
Like many dry-bulk owners, Jinhui’s share price has suffered as freight rates wane, particularly in the capesize and panamax sectors. Jinhui has a large fleet of handymaxes, however, a segment which, although hit by the current market malaise, has produced some of the more resilient rates of late.
Jinhui’s share price dropped from HKD 0.84 to HKD 0.65 during the course of Friday.
However, it is the volumes of trades on Friday which is likely to have caught the exchange’s attention. The start of the day saw 55,000 shares being traded with 2,068,000 going by closing time.
On the 17 July Jinhui’s share price in Hong Kong stood at HKD 4.70. A month later it was still at HKD 3.99 but fell to HKD 2.70 on 17 September.
Since then, apart from a rise on 9 October the share price has dipped continuously and finally fell below the HKD 1 mark on Wednesday.
Jinhui’s shares listed in Oslo fell off 3.5% on Friday to currently sit at NOK 12.45 a piece.
By Eoin O'Cinneide in London

Saturday, October 18, 2008

Nations agree to slash sulphur ship emission by 2015

Nations agree to slash sulphur ship emission by 2015 The Guardian
Sunday, 19 October 2008

LONDON, Oct 10 (Reuters) - Countries have agreed new sulphur limits for ship fuels that will slash air pollutants and clean up the world's oceans, but raise costs for the oil and ship industry, a maritime industry source said on Friday. Governments agreed the new measures, which will sharply cut harmful sulphur dioxide (SO2) emissions from ships through a staggered timetable to 2015, at a U.N. International Maritime Organisation (IMO)...

Friday, October 17, 2008

EC pressures U.K. on Maritime Law

October 16, 2008

EC pressures U.K. on maritime law

The European Commission is to take the United Kingdom to the European Court of Justice for failure to respect EU legislation on ship-source pollution and on penalties for those responsible for polluting discharges.
It also decided to send a reasoned opinion to the U.K. authorities for incorrectly transposing into national law legislation on the European vessel traffic monitoring system.
The Commission says that the United Kingdom has failed to notify its national measures fully transposing Directive 2005/35/EC. This piece of legislation aims at ensuring that all persons responsible for polluting discharges at sea are subject to adequate penalties. These penalties should be effective and dissuasive and may be of criminal or administrative nature. Their application to any person found responsible for an infringement is expected to enhance the protection of the marine environment from pollution by ships and to improve maritime safety. Member States should have transposed the directive into their national law by April 1, 2007.
The United Kingdom has also failed to correctly transpose into national law Directive 2002/59/EC on ship monitoring. This directive aims at enhancing the safety of maritime traffic by improving the response of authorities to incidents, accidents and potentially dangerous situations at sea and thus contribute to a better prevention and detection of pollution by ships. The Commission says the directive is an essential part of the second maritime package adopted in the wake of the Erika disaster. It should have been transposed by May 1, 2004.The Commission found fault in the UK provisions relating to the exclusion of all fishing vessels and traditional ships from the scope of the Directive.

Thursday, October 16, 2008

Simulator training overlooks fatigue

FATIGUE is not being assessed in simulator training, a senior marine surveyor told delegates at the MarTech 2008 conference in Singapore today. FATIGUE is not being assessed in simulator training, a senior marine surveyor told delegates at the MarTech 2008 conference in Singapore today. Capt Khoo Gek Hung of the Maritime and Port Authority in Singapore was responding to a question after presenting a paper on training instructors of simulator training. The Training of Trainers course provides applicants with non-technical background on the role of an instructor in simulator training. The training focuses on bridge and engine room simulators for deck officers and marine engineers. The overall relationship between the trainer and trainee is evaluated, as well as identifying ways to overcome barriers, but it became clear that no instruction was given on preventing fatigue, which is often a factor in accidents.

Crew crunch is even more worrying

Crew crunch is even more worrying
15 Oct 2008

SHORTAGE of officers could prove to be of greater significance to shipping than the credit crunch, Jan Morten Eskilt, chairman of OSM Group, told the Marine Money conference in Singapore today. SHORTAGE of officers could prove to be of greater significance to shipping than the credit crunch, Jan Morten Eskilt, chairman of OSM Group, told participants at the Marine Money conference in Singapore today. In May this year there were predictions of a shortfall of 84,000 officers globally. It is already at 34,000 – and so far there has been too much talk and not enough action, Eskilt said. Even though the BIMCO/ISF manpower study released in 2005, and the Drewry/PAL analysis forecast shortages, they both underestimated the full extent of the problem. One reason for this is that more ships than predicted are being delivered from shipyards, and the boom in offshore shipping is also creating new demand for certificated officers. Part of the problem is that shipping has failed to take the issue seriously, he added, with few vessels providing cabins for cadets. More than 4,000 officers will be needed for ships to be delivered in 2009 and 2010, although it's not known where they will be found. Sadly, insurer Gard predicts this will result in under-qualified officers on the bridge, and predicts an increase in maritime accidents of 20-30% attributable to inexperienced crew.

Tuesday, October 14, 2008

1727 - Handwritten Bareboat Ship Charter Signed by Joseph Marion - First American Insurer

Stumbled upon this item while crawling through the Web captioned as "A Magnificent Handwritten Maritime Contract From Colonial America Signed by Joseph Marion (1686-1750) who established The First American Insurance Company in Boston in 1724."

Thought that you may have some use of it.

Monday, October 13, 2008

Seamen Working Entirely Within Three-Mile Limit

If a seaman is employed by a company that operates exclusively within a three-mile limit of a state's shore, then state wage and hour laws may apply. This is a rather complicated area where federal and state laws may overlap and conflict. In general, it is important to understand that seamen working within a three mile radius of shore may be protected by several laws, including the possibility of collecting double wages under some circumstances.

Marine Pollution - NEWS !!!

Filipino seamen get USD900,000 for testifying against employers in ocean-pollution cases

MANILA, Sept. 24 (PNA) ? For cooperating with the U.S. government in prosecuting their former employers in a major case of oil pollution, 12 Filipino seamen were awarded on Tuesday a total USD 900,000 (about P41.5
million) in check-cash during ceremonies at the U.S. Embassy.

Six of the Filipinos were crew members of the "M/V Windsor Castle," a bulk carrier vessel owned by the Italian shipping company, B. Navi Ship Management Services. The other six were members of the "M/T Clipper Trojan," a carrier owned by the Danish company Clipper Marine Services, according to the U.S. Embassy.

The owners and operators of the two ships were prosecuted for illegally dumping sludge oil and contaminated waste water into the ocean in separate instances in years 2006 and 2007, the embassy said.

The rewards ranged from USD25,000 to USD175,000 per seaman, depending on the extent of their individual testimony in the two cases.

As a result, B. Navi pleaded guilty of breaking the anti-pollution law in 2007. It was sentenced by the Texas federal court in February this year to pay USD1.4 million in fines.

Clipper Marine Services also pleaded guilty of illegally discharging oil sludge in 2006, and the New Jersey federal court sentenced the company in June this year to pay a USD4.75 million penalty.

The embassy said that in addition to the fines, Clipper Marine Services pledged to install state-of-the-art oil water separators and other new equipment in five of its ships to allow the U.S. Coast Guard to monitor the ships' waste oil levels in real time, via satellite.

International and U.S. law prohibit the discharge of a ship's waste oil without treatment by a device known as an oil water separator. U.S. law also requires that all of the waste oil be kept in tanks and recorded in the ship's book for accounting during U.S. Coast Guard inspections. (PNA) LAP/GJB

Wednesday, October 8, 2008

How to Become a Millionaire

Start by being a Billionaire. It’s an old joke. But the concept has two very important truths that you need to consider. The First Truth: Whatever level of income you are at, if you spend more than you earn, you are not on the path to wealth. If you are a billionaire and spend your money lavishly and foolishly, you very well might end up as a millionaire. The Second Truth: The concept of “The Rich get Richer…..” is true. If you are a Billionaire, with $1 billion in the bank, overnight for one night, your money has earned $2,192. That would be $66,667. per month. In less than 14 months, your invested billion dollars will create another million dollars. But, even without starting as a billionaire, it is very conceivable that if you focus on your goal and follow the laws of money, you WILL be a millionaire.



But the current shortage of officers being experienced by the shipping industry is forcing the Philippines to take an initiative in search of quality if it wants to retain its leading position in the maritime labour market. To achieve this goal the industry has to dig down to the root cause of the problem, which is education. The recent ISF-Bimco study estimated that there is a shortage of 10,000 officers. Though the Philippines surplus of ratings and junior officers, the shortage of senior officers will act as an incentive for promotion. The question today is how the industry can turn up the surplus of ratings and junior officers to higher ranks, Adonis Donato, the president of Masters and Mates Association of the Philippines. Because of the situation, Donato says some ship management firms have been forced to turn down crew management offers because they cannot provide the senior officers needed to man new tonnage. “An opportunity lost,” revealing that some managers “have been feeling the pinch” as a consequence. It is estimated that 70,000 Filipino merchant marine officers are working in deck and engine positions onboard various foreign flagged vessels. With a total deployment of 248,055 seafarers last year, the number of officers has still to catch up with ratings to fill the demand.

Austal USA launch 113 meter Advanced High Speed Catamaran

Austal USA Launch 113 Metre Advanced High Speed Catamaran

September 30 2008, Austal
The second of two high speed vehicle-passenger catamarans for Hawaii Superferry has been launched at Austal USA – further strengthening the shipyard’s experience in advanced aluminium vessels over 100 metres in length.

The achievement comes just months after Austal USA successfully launched its revolutionary 127 metre Littoral Combat Ship (LCS) “Independence” – a state-of-the-art near-shore combat ship built for the US Navy.

With a service speed of 40 knots and the capacity to transport 866 passengers and 282 cars, the high speed catamaran joins sister vessel “Alakai” - which was delivered to Hawaii Superferry last year - as the largest aluminium catamaran ever built in the US.

False Oil Record Book is a Crime

Coming Into U.S. Port With False Oil Record Book is a Crime

Coming Into U.S. Port With False Oil Record Book is a Crime

Winston & Strawn's Maritime and Admiralty Practice issues briefing on oil record book entries and the consequences of false entries made offshore – or anywhere else.

The Ruling:

On June 30, 2008, the U.S. Court of Appeals for the Fifth Circuit in New Orleans ruled that bringing an oil record book known to have false entries into a U.S. port constitutes a criminal offense under U.S. law without regard to where the false entries are made or where the associated oil discharges occur, and even if such false entries or discharges occur outside U.S. territorial waters. However, the Court declined to resolve the question of whether multiple port visits with the same false oil record book entries would be treated as separate violations for purposes of U.S. sentencing law, remanding the case to the district court for consideration of that issue. The ruling was issued in the case of U.S. v. Jho and Overseas Shipholding Group, Inc.

Panama Canal Expansion

Ambitious Panama Canal Expansion to Raise Ship Tolls

Panama has unveiled plans to increase tolls on the Panama Canal to help pay for an ambitious US$5.25 billion expansion of the world famous waterway, a senior government official said.

The Panamanian Congress has formally approved the ambitious plan to widen the Panama Canal, its biggest expansion since it opened in 1914, in order to accommodate modern ships which have now become too wide to go through the canal. And even those ships that can pass have to queue for hours.

“It’s a lot of money, it’s about a third of the economy,” said Ricaurte Vasquez, Panama’s minister for canal affairs, referring to the cost of the project.

Panamanians overwhelmingly approved the plan in a referendum on October 22 and the overhaul will allow their inter-oceanic canal to handle mammoth modern cargo ships.

Panama has already put canal customers on notice that it would like to double canal tolls over the next 20 years to finance the expansion.

US vessels remain the biggest users of the canal, followed by Chinese and Japanese ships, and also Chile, according to the Panama Canal Authority.

Vasquez said Panama’s possible need for external financing to overhaul the canal would depend on its toll revenues. “The financial needs will be increased or reduced accordingly.” he said.

The 80-kilometer Panama Canal, which was controlled by the United States until 1999, handles nearly 5% of global trade. At present, it can only handle ships carrying up to 4,000 containers, known as Panamax vessels. But with wider locks and deeper and wider access canals, it could take ships carrying up to 10,000 containers. The current locks are 33 meters wide, but the new locks would be 50 meters. A third lane of traffic would be able to handle the wider loads.


The UN Security Council has passed a much-awaited resolution sanctions continued deployment of naval vessels and military aircraft against pirates in Somalia water.

Resolution 1838 "calls upon all states interested in the security of Maritime activities to take part actively in the fight against piracy in the high seas off the coast of Somalia...

MSC charters sail-assisted cargo ship

The 400-foot Beluga SkySails, the world's first cargo ship to use a SkySail, departed Newport, Wales, Oct. 5, 2008 following the first of three European port calls the ship will make loading U.S. Army and U.S. Air Force cargo for return to the United States.
The ship is under a Military Sealift Command charter.
MSC frequently charters U.S. and foreign-flagged commercial ships to move U.S. military supplies and equipment around the globe. However, chartering a modern, partially sail-powered cargo ship like Beluga Skysails is a first for DOD's ocean transportation agency.
The SkySail a giant, computer-controlled kite that can rise 100 yards into the air and uses wind power to help propel the ship during long ocean transits.
Developed by SkySails GmbH & Co. KG, Hamburg, Germany, the SkySails system has three main components: A towing kite with rope, a launch and recovery system, and a control system for automatic operation.
The has a shape comparable to that of a paraglider and can operate at altitudes between 100 and 300 m where stronger and more stable winds prevail.

Tops for Hallin in US$280 Million Port Expansion

Singapore’s Minister for Trade and Industry has today launched a US$280 million (S$400 million), five year development of the country’s offshore petroleum services facility, declaring it will “further enhance” the nation as a leading oil and gas centre “next to Houston and Aberdeen.”
Minister of State Lee Yi Shyan ceremonially “broke the ground” at the Loyang Offshore base using a gold shovel. In a speech to invited industry heads at the newly named TOPS (Toll’s Offshore Petroleum Services, formerly known as SOPS) offshore service facility, he said: “We want to work with our world class shipyards, companies offering complex oil and gas systems and offshore-related services to build new capabilities.
“We want to encourage them to undertake a wider range of activities, encompassing manufacturing, headquarter services, training, research and development, engineering and regional distribution.”
Hallin Marine is leading the move to the new complex, already committing to a new, purpose built 8,000 square metre waterside centre for its Eastern Operations Division, and expects to move to the facility in 18 months time.

Asian shipyards face prospect of bankruptcy

Asian shipbuilders face an abrupt downturn in demand that could result in some yards going bankrupt as ship owners cancel or postpone orders, according to executives, bankers and analysts.
The problems could be particularly acute in China, which is now challenging South Korea as the world’s leading shipbuilding nation but where many of the new yards are privately owned and rely on additional funding for their expansion.
The shipbuilders’ problems stem from those of both the shipping and banking sectors, as a slowdown in trading is compounded by the inability or reluctance of banks to extend financing for orders. The Baltic Dry Index (BDI), the global benchmark for the cost of shipping commodities, has slumped to a quarter of its level four months ago.
“We see banks withdrawing financing options for new ships,” said Arthur Bowring, managing director of the Hong Kong Shipowners’ Association. “To have built up such a large shipyard capacity is quite worrying in such doubtful economic times.”
Asian shipyards filled their order books until 2011 on the back of a decade-long Asian economic boom. That still provides a cushion for larger and more efficient yards, but some Chinese fledgling companies now scramble to put refund guarantees in place to secure contracts.
“Activity has come off very rapidly right across the board, with the big ships affected most,” said Michael Birley, managing director of shipbroker Wallem. “I’m sure that there are orders now which are not being completed.”

Nuclear fusion energy project could lead to limitless clean electricity

The power of the sun is to be recreated in a new £1 billion science project which aims to provide a clean and almost limitless source of energy. British scientists will this week begin work to create a nuclear fusion reactor, which will use the same powerful reactions that take place in the Sun to provide energy and, ultimately, electricity.
Scientists have previously only been able to replicate the reaction inside hydrogen bombs. Now, however, they believe they are on the verge of achieving controlled fusion in a laboratory for the first time. Laser beams with enough power to light up every home in Britain for a few microseconds will be used to heat up the nuclear fuel to millions of degrees centigrade in order to trigger the reaction. If successful, the reactor will be a prototype for future commercial power stations, providing a cleaner and safer replacement for conventional nuclear power stations, which use nuclear fission to produce energy.
Unlike nuclear fission, which tears apart atoms to release energy and highly radioactive by-products, fusion involves squeezing two ""heavy"" hydrogen atoms, called deuterium and tritium together so they fuse, producing harmless helium and vast amounts of energy.

Shipbuilding Orders Reduce

James Yoon of BNP wrote in a new report: “In the face of tighter market liquidity, increased trepidation toward further global economic slowdown and orders books of longer than three years, we forecast Korean orders will shrink by 19% next year amid another 25% drop in global orders.”
Following the warning, the French investment bank has downgraded the shipbuilding industry from “neutral” to “overweight”, reports TradeWinds.
In September orders for new vessels reached seven million deadweight tons, Morgan Stanley says.
Analysts Park Sang Kyoo and Lee Hyun Jae say the figure represents a 66% fall from a year earlier despite the fact ship prices are starting to soften.
The twin reports led to further pain for South Korean shipyard stocks Monday.
STX Shipbuilding was hit hardest, dropping 9.3% to KRW 19,000 ($14.97) per share at one point.
Hyundai Heavy Industries lost 8.5% to trade at KRW 231,500 per share at midday, while Hyundai Mipo shares sank 9.1% to KRW 145,000.
Daewoo Shipbuilding & Marine Engineering saw up to 12% slashed from its market value amid renewed speculation its sale may fall through.

Getting Lease for Oil Drilling is Just the Start

HOUSTON—The national debate over opening more offshore areas to oil and gas exploration has begged the question: Just what are the companies doing with the tens of millions of acres they're already leasing from the federal government?In particular, congressional Democrats who oppose President Bush's plan to expand offshore drilling point to 68 million acres of federal land and offshore sites now leased by oil companies that sit idle.It's part of nearly 2 billion acres overseen by two federal agencies -- the Bureau of Land Management and the Minerals Management Service -- that have potential for oil and gas exploration, the bulk of which is strictly off limits.The acreage includes vast stretches of land that spread out over Nevada and reach north and east over the Rockies, thinning as they stretch toward Canada to disparate specs on the map.There are smaller and more isolated patches to the east along the mountain ridges of Appalachia and further to the south above the Gulf of Mexico, and huge chunks of northern Alaska and lesser stretches on its southern banks.A huge chunk of the overall acreage is the U.S. Outer Continental Shelf, the zone of federal waters extending about 200 miles offshore.The 68 million acres under lease to oil companies has potential reserves to nearly double U.S. oil production and increase natural gas output by 75 percent, the Democrats claim.So why the lack of activity, particularly when oil prices are at historic levels?
It depends on your definition of "activity."An oil company can spend several years after it negotiates a lease securing the permits and other approvals it needs to begin actual production.

MLC Convention

Lloyd's Register's Nordic Committee met last September 12 in London to discuss current issues and share information. Key topics discussed were the Maritime Labour Convention, control of greenhouse gas emissions from ships and implementation standards to drive improved environmental performance.Roland Ives, Lloyd's Register's Manager, Human Element & ILO issues told the assembled delegates that the new International Labour Organisation (ILO) Maritime Labour Convention, 2006 when it comes into force will address the causes of fatigue, occupational health and safety, recruitment and the working and living conditions for seafarers, with the potential for improving crew retention and motivation and the safety and status of shipping.

Offshore Energy 2008

Offshore Energy 2008 is the Dutch trade fair with a wide spectrum encompassing the offshore and energy market. On November the 27th 2008, Navingo BV in association with Development Company Holland North is organising the trade fair and seminar Offshore Energy 2008, location; The Old Civil Shipyard in Den Helder, The Netherlands.
It takes place in the 'Capital of the North Sea' for a reason, as it is a meeting point for companies and organizations that are active in the international (supplying) offshore and energy branch. The trade fair offers firms the possibility to generate new business, expand their relation network and bring their career options under the attention.
In addition Offshore Energy 2008 provides a diverse seminar programme during which up-to-date topics will be presented: the most important developments and product innovations related to the offshore, upcoming activities in the North Sea and the future of the Netherlands as an offshore nation. During an interactive reading the career possibilities in this flourishing sector will be highlighted as well.
Offshore Energy 2008 focuses on offshore, upstream oil and gas, wind energy, petrochemical industry, maritime services, equipment, training facilities and career. The visitor profile mainly consists of decision makers in het offshore industry, directors, buyers, project managers and engineers of oil companies, subcontractors, offshore services, operators and students in their final year of offshore technology

Namegiving of newbuilding L 214 from Odense Steel Shipyard

Last Saturday 4 October 2008, Odense Steel Shipyard named its latest newbuilding, a 7,000 TEU container ship, for the A.P. Moller - Maersk Group. Mrs Yumiko Arakawa, married to Mr Shoshi Arakawa, Chairman of the Board, CEO and President, Bridgestone Corporation, honoured A.P. Moller – Maersk and the Yard by naming the newbuilding METTE MÆRSK. METTE MÆRSK is the fourth ship in a series of six container ships. The ship is designed and built to meet the highest demands for safe, precise, environmentally friendly and economic transportation of goods all over the globe. Among other things, a waste heat recovery system is installed to optimise the use of the energy produced.METTE MÆRSK is a highly automated ship thoroughly monitored by advanced computer systems to ensure an optimal and efficient operation.
To minimize the fuel consumption and thereby CO2 emissions, the 12-cylinder Wärtsilä RT-flex diesel engine has been optimised for a more efficient and economical service speed. The propulsion machinery on METTE MÆRSK develops 84,000 BHP.

Offshore Shipping - Jaya Holdings Sets New Record

SGX-listed Jaya Holdings Ltd set a new record in net attributable profit (PATMI), raking in S$149.8 million for the full year ended 30 June 2008 (FY08).
This represents an increase of 24 per cent year-on-year (yoy) despite flattish revenue of S$307.2 million.
The ship building division was the largest contributor to overall revenue, making up S$234.7 million or 76 per cent of Group sales. Although revenues dipped slightly yoy, PATMI rose 14 per cent yoy to S$59.6 million (33% annual increase).
Revenue was recognised on the basis of percentage completion on 14 vessels – mainly anchor handling, tug/supply (AHTS) vessels – at an average progressive recognition rate of 60 per cent in FY08, as opposed to 15 vessels at a similar recognition rate of 60 per cent in FY07.
The ship chartering division upped its revenue by 3 per cent yoy to S$71.2 million. Gross margin for the division remained strong at 54 per cent despite a weakened US dollar. The sale of nine vessels from the chartering fleet further lifted earnings 27 per cent yoy, with PATMI rising to S$84.6 million.

Risk Management in Shipping

Every organisation faces risk and must balance its attitude towards risk and reward. The key question is: ‘What is the acceptable risk?’
High-risk ventures may collapse, yet they can also deliver the biggest reward. Conversely, fewer, safer and more conservative risks within an organisation may mean modest returns but long-term survival. Risk Management in Shipping report examines the major risk sectors and recommends potential methods for best practice.
Key issues of Risk Management in Shipping
*Best practice – focus on a risk management system in a shipping company
*Risk – the exposure and the uncertainty
*Understanding risk appetite and how it shapes management strategy
*Quantitative and qualitative elements in risk management evaluation and strategy
*Ship ownership and strategic risks
*Risks to the vessel, people and systems
*Corporate risks
*On multi-levels/Multi-layered
*Take account of the ‘big picture’
*Take account of day-to-day operations

Saturday, October 4, 2008


Thanks and Good Day to all of you guys!