Somali pirates hijacked two UK-flag ships, both operated by the same company, at the turn of the year adding to concerns that the situation off Somalia is still out of control despite the large international presence in the area. The incidents have also given greater urgency to talks between the seafarers union Nautilus and the government over the latter's opposition to the payment of ransoms. The 3,924 dwt Zodiac Maritime Agency-operated chemical tanker St James Park was seized on 28 December.

An EU Naval Force (EUnavfor) statement says that there are no UK citizens among the 13,924 dwt Zodiac Maritime-operated ship's crew of 26 who comprise Filipino, Russian, Georgian, Romanian, Bulgarian, Ukrainian, Polish, Indian and Turkish nationals. Then on New Year's Day, in the late afternoon, vehicle carrier Asian Glory was hijacked in the Somali Basin about 900 miles north of the Seychelles and 600 miles from the Somali coast. EU Navfor says the Asian Glory was well outside the naval group's normal operating area. The ship has a crew of 25, eight Bulgarian, 10 Ukrainians, five Indians and two Romanians.

Meanwhile foreign secretary David Miliband repeated his view that ransoms should not be paid to secure the release of seafarers in vessels hijacked by Somali pirates in a letter to Nautilus which is due to hold talks with the Foreign Office later this month.

In his letter, in response to one from Nautilus, Mr Miliband accepts the difficulties involved in trying to protect vessels in the Indian Ocean where many recent attacks have taken place.

On ransoms Mr Miliband says: “Although there is no UK law against third parties such as shipowners paying ransoms, we counsel against them doing so, as we believe that making concessions to pirates only encourages future hijacks.”

He is likely to be pressed on this point by the union at their meeting. Nautilus has repeatedly asked Mr Miliband what ship owners should do instead of paying ransoms if they are not to put the lives of captured crews at risk.

back to top

Maritime London has a busy year of promotional activity for 2010 planned. See below for further details.

back to top

Maritime London will be publishing a directory containing the contact details of UK based companies providing professional services to the international shipping industry.

Available online, the directory will also be distributed at the Maritime London pavilion during Posidonia 2010 and by post to shipping companies globally.

All companies will be provided with a free entry, but advertising space and enhanced listings are also available.

See www.maritimelondon.com/media_pack2010.pdf for full details or contact Will Bixby.
E: wbixby@navigatepr.com

back to top

Dubai port operator DP World has confirmed that it will continue to fund the London Gateway project, a £1.5bn development to create Europe’s biggest deep-sea container port and logistics park. The 1500 acre site is on the north bank of the River Thames near Thurrock in Essex. There had been doubts over the future of the project after DP World's parent company, Dubai World Corp., requested a freeze on some $26 billion of debt payments while it restructures the group.

British Prime Minister Gordon Brown and UK Business Secretary Lord Mandelson visited London Gateway's port construction site last week.

Prime minister Gordon Brown said, "The London Gateway is a significant foreign investment into the UK. It is a massive vote of confidence in the UK's economic recovery and in this region. UK Trade & Investment and other government departments have worked closely with DP World over a number of years to make this project possible. I am delighted with the decision to locate this world-class project here in the UK. It will help bring the largest deep sea vessels here and improve the efficiency of the UK's freight distribution, creating thousands of jobs, future growth and economic prosperity."

According to an independent survey commissioned by DP World, the development will generate 36,000 jobs in total, including 12,000 jobs in logistics and construction that will be created in the short term.

In a separate development DP World is planning a premium listing on the London Stock Exchange in the second quarter of 2010. The company publicly cites its dissatisfaction with its market valuation and sees the move offering access to investors, improved liquidity and a higher share price.

"The listing will give us more exposure to international markets. As far as investors are concerned, the listing in London will provide regional investors with confidence," explained Mohammad Alhashimy of DP World’s IR team.

DP World is one of the largest marine terminal operators in the world with 49 terminals and 12 new developments across 31 countries.

back to top

More support for UK seafarers forthcoming?

The UK prime minister Gordon Brown met a shipping industry delegation last week to discuss the industry’s joint proposals for improving the support for seafarer training. According to seafarers' union Nautilus, Mr Brown told the delegation that he would discuss the proposals with ministers and promised that a response would be delivered within a month.

Representatives from unions Nautilus and RMT together with Chamber of Shipping officials and MPs Gwyn Prosser and John Mc Donnell reportedly warned Mr Brown that the long-awaited action is essential if the UK is to build on the tonnage tax measures and to secure the skills and experience it needs not only for shipping but for the wider maritime infrastructure.

Nautilus general secretary Mark Dickinson described the meeting as ‘very positive’ and said he was encouraged by the fact that the industry’s concerns were being taken seriously at the highest levels of government.

He said after the meeting: “The prime minister received us in a very positive way and asked some very penetrating questions about the package. He indicated that funding might be available through the government’s initiatives on apprenticeships and job creation and whilst he could not make any promises, he would get us an answer quickly. We underlined the point that the cost of inaction on this critical issue for an island nation will be far, far greater than the cost of action.”

back to top

Maritime London member Lloyd’s Register is taking over 100% of the share capital of Norwegian-based independent risk management company Scandpower AS. It says the acquisition will be one of the largest it has made. Scandpower and its subsidiaries in Sweden, China and the US have 235 staff who specialise in providing risk management services. Approximately 60% of staff are based in Norway and 30% in Sweden. Other employees are based in offices in Houston and Beijing.

LR's energy director, Iain Light, said: "Strategically it will give us a very significant position in the Norwegian continental shelf – a region that is increasingly active as energy exploration and production moves further north into more harsh and challenging environments. Scandpower's expertise will provide Lloyd’s Register with substantial growth opportunities in the Arctic, Russia and the Barents Sea, building on our position as one of the leading class societies."

LR's CEO, Richard Sadler, said: "Bringing Scandpower into the Lloyd's Register Group is a critical element in the strategic growth of our business. Scandpower's reputation will not only open a new client base but also offer additional support to existing clients. There is a strong cultural fit which will make integration effective and we look forward to welcoming our new colleagues to the group."

back to top

The Chamber of Shipping says it is disappointed that the text of the 'Copenhagen Accord' is silent on the treatment of international shipping in the delivery of further CO2 emission reductions.

In a statement the Chamber says that the UK shipping industry, which “has led the way in terms of practical solutions with its advocacy of a cap-and-trade system as the only way to guarantee reductions”, remains firmly committed to reducing shipping’s carbon footprint. "Although shipping is the most carbon-efficient mode of transport, with about 500 times less carbon impact than air freight per tonne mile, it is such a large industry – carrying about 80 per cent of world trade – that its emissions are close to 3 per cent of the global total," said Mark Brownrigg, director-general of the Chamber of Shipping.

"We had hoped that the UNFCCC would at least empower the International Maritime Organization to set some clear targets and agree a process by which the Kyoto Protocol principle of 'Common But Differentiated Responsibility' could be reconciled with the important need for global rules on CO2 reductions for the carriage of world trade."

The Chamber argues that shipping is a uniquely international industry that can only work efficiently when operating within a framework of uniform global regulation that applies equally to all ships regardless of flag. 'Common But Differentiated Responsibility’, at least at ship or company level, will “simply not work” according to the Chamber. It argues that shipping companies would simply migrate their fleets to developing countries. Around 65% of the world fleet is already registered with ‘Non-Annex I’ nations under the existing Kyoto Protocol.

The shipping industry is still firmly committed, the Chamber says, to helping IMO develop a global solution for shipping on CO2 at the next meeting of the IMO Marine Environment Protection Committee in March 2010.

“But,” it warned, “it is vital for all governments to understand that, in the absence of a global package agreed by IMO, there is a serious risk that some countries will develop unilateral measures to regulate at national or regional level the CO2 emissions of ships trading internationally. Such unilateral measures would result in serious market distortions and – most importantly – be far less effective in ensuring the reduction of CO2 emissions by the global shipping sector as a whole.”

back to top

Plenty of opportunties for shipping and ports

The Crown Estate, which owns the seabed within the UK's Exclusive Economic Zone has granted licences for nine new offshore wind farms. These include a massive Dogger Bank project which could produce nine gigawatts of energy. In all, it is estimated, the new windfarms could generate up to 32 gigawatts of power or about a quarter of the UK's electricity requirements.

The granting of licences is however only one stage in the process. Plans for the project now have to get planning approval and 2014 is being mooted as the earliest possible date for starting work. Proposals for the wind farms will now go through planning and consent stages.

Meanwhile the development of offshore power is a major reason why agency and logistics company Cory Brothers said in December that is it was approaching 2010 optimistically. Its latest figures, for the six months to the end of August, showed the Braemar subsidiary had a turnover of GBP16m with a GBP1m operating profit - a five-fold increase in profits over the previous half-year.

Cory said the improved results were thanks to “increased business across the board and particularly through its involvement with the growing offshore windfarm sector”. The company said it had adapted – creating subdivisions Cory Energy and Cory Renewables – to react to the recent growth in the renewables and windfarm industry, particularly in the UK’s East Coast area.

Managing director John van Bergen said: “It’s an interesting operation bearing in mind that most of this goes on offshore. These windmills are huge, absolutely staggering things.”

back to top

The UK's Association of Port Health Authorities has joined with the International Shipping Federation (ISF), Hamburg Port Health Center and Germany's Institute for Occupational and Maritime Medicine, Germany to express concern at the way some port health authorities have been treating seafarers during the swine flu (H1N1) pandemic.

The group accepts that risk of transmission may be enhanced in crowded and semi-closed environments and that seafarers are recognised as a population at particular risk from the infection. It recognises that “public health interventions at borders may play a role to delay or at least mitigate the international spread of emerging or re-emerging infectious disease, the focus with Pandemic (H1N1) 2009 is now on the appropriate management of sick persons”.

But the ISF says that Free Practique is being denied or delayed when ships declare respiratory disease on board. It says: “This is inappropriate and not in line with the scope of the International Health Regulations 2005 that seafarers are denied timely medical care and assistance by port authorities in cases where Pandemic (H1N1) 2009 is identified onboard vessels within their jurisdiction.”

It also says that seafarers should be vaccinated against the virus wherever this is compatible with the national vaccination strategies of ports of call.

back to top

Global shipping, logistics and marine services group GAC is merging its UK operations “to better meet clients’ needs”. Shipping services company GAC-OBC, with more than 20 offices throughout the UK, becomes GAC Shipping (UK), alongside GAC Logistics (UK) which is GAC’s UK-based freight forwarding arm. In-house travel agency, GAC-OBC Business Travel, is rebranded as GAC Travel.

Former managing director of GAC-OBC, Peter Cole, has been appointed MD of the three companies, and sees the new structure as a major benefit for both national and international clients:

“We operate in a world where customers want more integrated service packages and the cost benefits that come with them,” he says. “I expect the new GAC organisation in the UK to be able to provide unique service options for our clients, from the Shetland Isles to Bournemouth and all stops in between.”

Mr Cole says that the linkage to GAC’s global shipping and logistic networks gives the company added strength and financial resources to develop local operations for international clients.

“Previously in the UK we spoke with several voices to our international clients,” he says. “Now we speak to them with one voice and I expect this to bring both immediate and long term benefits in how we respond to specific client needs.”

back to top

London has a new trade association armed with a broad mandate to represent and promote the health and medical interests of the world’s seafarers, port workers and cruise passengers as well as improve shipboard hygiene.

The International Maritime Medical Association (IMMA), will look after the medical interests of those involved in the shipping industry worldwide and work to lobby politicians and regulators who influence this important sector of the global shipping industry. It will work alongside, and draw on the medical expertise, of the International Maritime Health Association, an existing members’ association for maritime doctors and port clinics.

Michael Van Hall, president of Gezellig, Inc. and formerly president of van Hall Health Inc. and managing director maritime Ssctor at Health Systems International, Indiana, has been elected as the association’s first president.

Michael van Hall said: “Seafarer health has become such a crucial issue as concern over the seafarer shortage problem impacts on lengthening sea-time, longer working hours and less relaxation time. Conversely, crew managers and ship owners are finding it hard to balance the demands for higher operational output from their seagoing workforce with the needs for a healthy and contented crew base. And that is before we consider the insurance implications of rising health costs in a sector that suffers from a lack of understanding and empathetic regulatory structure.”

back to top

Maritime London member HSBC Insurance Brokers is set to be acquired by insurance giant Marsh following an announcement by HSBC that it will sell its insurance broking business for GBP135 million.

HSBC Insurance Brokers, which has a strong marine presence, focuses on brokering and advice, and has 1,400 employees in the United Kingdom, Asia and the Middle East. According to Marsh, HSBC Insurance Brokers has ambitious growth plans in Asia and the Middle East.

"We see this acquisition as a big win for Marsh, for our colleagues and certainly the clients and colleagues of HSBC Insurance Brokers as well," said Dan Glaser, chairman and chief executive officer of Marsh Inc., in a conference call. "It's an excellent cultural fit between two complementary businesses."

The acquisition also will augment services in important emerging markets, Glaser said. Possible job losses "are yet to be quantified," he said.

back to top

The BBC apologised in the English High Court in December to London-based trading house Trafigura for making false allegations made in May last year on the programme Newsnight and in a related website article.

The Newsnight stories concerned the discharge from the Probo Koala, a Trafigura-chartered vessel, in August 2006 of gasoline “slops” in Abidjan in the Ivory Coast in West Africa. The slops were then dumped illegally by an independent company called Compagnie Tommy. Trafigura describes the Ivory Coast company's action as “deplorable” and as something which it did not and could not have foreseen.

The BBC stories stated that Trafigura’s actions had caused a number of deaths, miscarriages and serious and long-term injuries in Abidjan in what Newsnight claimed “may be the biggest incident of its kind since….Bhopal.”

Trafigura said in a statement: “Faced with such grave, yet wholly false, allegations, Trafigura was left with no alternative but to commence libel proceedings. The BBC initially attempted to justify its allegations. However, having carried out a detailed further review of the available evidence and of Trafigura’s detailed response in its formal reply, the BBC has...confirmed that the allegations were simply wrong. At no stage did the BBC ever attempt to argue that the stories were defensible as 'responsible journalism'.”

back to top