The North of England P&I club has advised shipowners and charterers to avoid using charterparty clauses that require ships to be “approved” by independent ship vetting specialist RightShip. The CEO of the Melbourne-based independent ship vetting specialist, Warwick Norman, says he broadly agrees with club's advice. North’s head of loss prevention,

Tony Baker, in the latest issue of the club’s loss-prevention newsletter ‘Signals’ says: “RightShip...presents subscribers with a rating of a vessel’s suitability for a particular task on a particular date. However charterparty clauses that oblige owners to have a vessel 'RightShip approved' on delivery – and to maintain such approval throughout the period of the charterparty – can give rise to disputes and problems of interpretation.”

According to the club, the problems stem from the fact that RightShip approvals are specific to the time they are given, and are given to a particular customer of RightShip subject to that customer’s confidential requirements. ‘It therefore cannot properly be said that a ship has RightShip approval at any other time,’ says Mr Baker.

RightShip approvals are also not time limited and nor do they have a particular period of validity. As such the North says it is not really within the power of an owner to maintain such an approval throughout the period of a charterparty.

Mr Baker points out that the position is further complicated if say, on a given day, a ship is approved for a RightShip customer with one set of requirements but not for another customer with a different set of requirements.

“Is that ship RightShip approved or not? As there is no decided law on the point, it is impossible to say.”

Until the legal position becomes clearer, North is advising its shipowner and charterer members to avoid charterparty clauses requiring a ship to have or obtain RightShip approval. “Their effect is currently unclear and they are likely to give rise to disputes that may be difficult and expensive to resolve,” says Mr Baker.

Speaking from Melbourne, Mr Norman said that the club's warning was not a problem for RightShip and his company has been discussing these problems with the club. He said: “I endorse what the club says. People should not sign anything if do they not understand the ramifications. There is nothing in it for us if people use these clauses.”

He added: “We are however working with industry on new, neutrally-worded RightShip clauses. This is taking a while but hopefully they will be available in the near future.”

LPG move for Braemar

Braemar Seascope has acquired LPG broker and consultant LPG Connect International, for an undisclosed amount, to form a product broking division called Braemar LPG Connect.

In a statement the shipbroking arm of Braemar Shipping Services says: “Creation of the product broking division, to take effect from April 21st, 2009, is based on Braemar’s strong belief in the future growth of the global LPG trade. It will enhance Braemar’s presence in this sector and provide a greater service to both companies’ customer base and the market overall.”

Braemar LPG Connect will be located in Braemar Seascope’s London office and will be headed by Stuart Anderson who will also be part of Braemar’s gas department team, with Allison Isaac-Hierscher joining in operations. Stuart has significant broking and trading experience in this sector and will bring a new LPG broking discipline to Braemar through the move.

Stephen Wilson, head of Braemar’s LPG division, said the acquisition would greatly add to the services Braemar already provides to the global LPG markets. LPG Connect International's training course partnership is not affected and will continue unchanged.

The Chamber of Shipping has responded to recent articles on vessel emissions in the press. It has written letter to the Sunday Times, which ran a story headlined "Ships’ fumes kill thousands every year" and one on a similar theme in the Guardian, “Health risks of shipping pollution have been ‘underestimated’”.

The Chamber seeks to put the Sunday Times article into context by highlighting the “considerable work” that is being done to reduce emissions from ships both by the IMO and by the European Union.

The Chamber's letter refutes the reported “ absence of international regulation”. The Chamber points out that ongoing work includes Annex VI to the International Maritime Organization’s International Convention for the Prevention of Pollution from Ships (MARPOL), the EU Directive on the Sulphur Content of Liquid Fuels (2005/33/EC) and the recently agreed revision to MARPOL Annex VI which has been the vehicle for the recent US & Canada proposal to establish an Emissions Control Area (ECA) in waters close to their shores.

The Chamber stresses: “Indeed, far from countries adopting legislation in the absence of international regulation they are, in fact, using the appropriate global regulatory framework to apply regional solutions to regional problems. Mr Leake also fails to mention the fact that shipping is the most energy-efficient and therefore carbon efficient means of transporting goods, producing – per tonne mile – a fraction of the greenhouse gases of other modes.”

Responding to the Guardian article the Chamber deals with a suggestion that Europe has resisted regulations on the emissions of ships, saying: “ This does not fit well with the fact that Europe, in addition to existing legislation at IMO, has already adopted stringent regulations under the Directive 2005/33/EC (Sulphur Content of Liquid Fuels Directive). Amongst other provisions, this Directive requires all ships at berth to burn fuel with a sulphur content of no more than 0.1% from 2010 and requires all passenger ships to burn low sulphur fuel when on a voyage between two community ports.”

The letter to the Guardian also draws attention to IMO's work and the problems of comparing the emissions of a ship and privates car which “actually tells us very little”.

Offshore support vessels operators will take heart from a new study which predicts a likely downturn in offshore drilling will be only short-lived and the oil companies will soon be again increasing their spend in this sector. Global spending on offshore drilling is forecast to rise 32% over the period 2009-2013 compared with 2004-2008, despite reduced spending in 2009 and 2010.

The latest edition of the ‘World Offshore Drilling Spend Forecast 2009-2013’ from specialist consultants Douglas-Westwood and Energyfiles, USD278bn was spent between 2004 and 2008 on offshore drilling.

The report forecasts lower spends in 2009 and 2010 followed by a return to previous levels of growth, to total $367bn over the five year period. By 2013 the global drilling market will be worth an estimated USD89 billion, more than doubling since 2004.

“Approximately 18,310 offshore wells were drilled over the last five years. The forecast is of a decline in 2009, followed by consistently rising numbers including a sharp jump in 2011, to total 19,570 by 2013. Asia is still seeing the highest activity, followed by North America and then Western Europe,” said report author Dr Michael Smith of Energyfiles.

He added: “Due to a lack of opportunity shallow water exploratory drilling has been on a declining trend albeit with a modest price-led resurgence in 2006 and 2007. Shallow water exploratory drilling levels are not expected to ever return to their most recent 2007 peak but growth in deepwater drilling has supported exploratory drilling over the last five years – to reach 40% of all exploratory wells by 2013. The steady growth is a result of new ultra deepwater targets becoming increasingly viable, as the capability of deepwater production systems is improved, giving additional encouragement to explorers to take these expensive risks.”

Steve Robertson, of Douglas-Westwood, commented, “The impact of the recent downturn is clearly more marked within the shallow water segment which in turn has impacted on jackup utilisation and dayrates. However, high-spec floating rigs capable of working in deepwater and harsh environments continue to be in demand and utilization and dayrates are holding up well.”

Dr Smith also points out that engineering makes up the biggest cost sector in offshore drilling followed by rigs. “In 2006 and 2007 there was a disproportionately large surge in rig costs as the higher specification, high dayrate rigs most required were in short supply. But relative spends for engineering and rigs are expected to remain fairly constant through to 2013 with a wave of new rigs entering the market. Modest declines in rig utilisation are expected over the next two or three years.

“Although global economic recessions have always led to declining energy demand, the resultant lower prices soon engineer a recovery in demand and then prices, especially as OPEC acts to rein in output. Thus in early 2009 the supply/demand balance for oil had already stabilised, despite the worsening recession. The numbers in this report point to a return to stability in 2010 and, by 2011, a strong growth in the offshore drilling industry is forecast, especially in high technology areas,” says Dr Smith.

London and Singapore based W-O Shipping Group has agreed on terms for the formation of a joint venture with Heidmar to manage its small tankers. The intent of the joint venture is to provide tanker owners in this market segment with worldwide market coverage and it will initially have a combined fleet of over thirty tankers ranging in size from 3,750DWT to 16,700DWT.

Commenting on the transaction, Tim Brennan, CEO and president of Heidmar, a unit of Morgan Stanley said, "We are pleased to be able to expand our commercial management business by way of this joint venture and immediately provide global fleet coverage to our customers in the small tanker sector."

Captain Rajesh Mehrotra, CEO of W-O Shipping said, "We are excited that this combination of our collective strengths in the small tanker markets will provide our current and future customers with enhanced service and increased global access."

The transaction is expected to close on May 1, 2009. Financial terms were not disclosed.

The Shipowners’ P&I Club, which specialises in liability insurance for the owners of smaller vessel worldwide, is opening a branch in Singapore. Initially serving the membership in Singapore, Malaysia, Thailand and Indonesia it is intended that the branch will eventually extend its sphere of operation into other countries in Asia as well.

The says that over 20 years since it began underwriting there, South East Asia is now one of its largest operating areas with over 500 members and nearly 5,000 entered vessels representing around 25% of the total tonnage entered.

Club chief executive Charles Hume said: “We are very pleased to be opening this branch of the Club to our membership in Asia which we hope will add an extra dimension to our service by making us more accessible to them and to their brokers. In these uncertain times, our Asian office demonstrates the certainty of our commitment to serving our Members in the region for the long term.”

The UK P&I Club says that some 70% of the ships visited by its own inspectors in 2008 were given a high rating with no comment or formal suggestions for improvement. This was 6% higher than the previous year. Five per cent of the ships inspected, 23 in total, were deemed below standard in one or more areas and five, or 1%, were considered sufficiently unsatisfactory to require a full condition survey. Two of these were general cargo vessels, two were oil tankers and one was a bulk carrier. Three were over 20 years old. The remaining 25% attracted comments relating “almost entirely to service and maintenance and safety standards, which the inspectors focus on during their four-hour checks”.

A club statement notes: “Again, there was a marked improvement on 2007.”

The club added: “Ship visits enable managers to keep an eye on the quality of entered fleets. The inspectors, four ex-masters and a former chief engineer, visited 479 vessels in 2008----around 15 per cent of the total entered fleet. They concentrate on areas which could produce accidents and injuries, and other liability claims. If there is serious concern over quality standards on a vessel, a full condition survey is instigated by the inspector and carried out by an independent surveyor.”

Ships over 20 years old are particular targets for the club's inspectors, especially if they have not been visited recently or have not undergone condition surveys in the past five years. In 2008, 85 such vessels, including some with shortcomings noted in 2007, were inspected with 22 incurring recommendations for repair.

The club says: “For some time, the age profile of the UK Club’s entries has been younger than the average for the world’s oceangoing merchant fleet. Currently, 56% of vessels are under nine years old and only 18% are over 20. The world fleet averages are 52% and 21% respectively."

Major international tanker broker and Maritime London member ACM Shipping Group says it expects it results for the year ended 31 March 2009 to be “significantly ahead of current market expectations”.

The company says that trading across the group has continued to be strong since it announced its interim results on 3 December 2008 with most areas business outperforming expectations. The Group’s spot brokerage desks continued to perform well while its UK, Singapore and Indian desks all “performed well in the second half”.

ACM says: “Harris & Dixon, the specialist small oil tanker broker, which ACM acquired at the end of the first half flourished and the integration of the two businesses has worked well and is producing a strong performance. The continued high level of activity in the freight futures market also resulted in significant returns for the Group’s 50 per cent joint venture with GFI Group, Inc. In addition, the strengthening of the US dollar against the pound in the second half had a positive impact on the Group’s profitability.”

Johnny Plumbe, chief executive of ACM, said: “The Board is delighted with the continued performance of the Group. This is down to our excellent team of highly committed brokers and our excellent knowledge of the tanker market, which remains our main focus. The Group’s time charter business remains robust and our current order book stands at USD25m. Due to the strong fundamentals of the business, the Board continues to be confident for the outlook for 2009/2010. However, whilst the Group is not immune from the wider economic environment which naturally affects both currency and oil consumption, ACM continues to work to minimise these fluctuations and the Group remains optimistic about the next financial period but enters it with caution.”

The famous manned model ships will move to Romsey

Warsash Maritime Academy’s is investing GDB1.5m to move its manned model training to a new location in order “to keep it at the cutting edge of maritime training”.

Mariners from all over the world have been getting vital training at the 10-acre Marchwood facility – one of only a handful in the world - for more than 20 years, learning shiphandling skills on scale model vessels in conditions that emulate real-life maritime experiences. But from 2011 the manned model ship handling facility will be based in Timsbury, near Romsey. The entire Marchwood based manned model operation will be moved to the new lake in the winter of 2010, as part of a major investment to ensure the continued development of the University’s highly specialised maritime training facilities.

The new Manned Model Shiphandling Centre at Timsbury will build on the expertise gained from the Marchwood operations, as it continues to provide first class training to the international shipping industry. Using various ship models, berths, basins and channels on the new lake, a variety of port scenarios, canal transits and berthing operations can be simulated for ships’ officers and pilots under training. Complex and potentially hazardous manoeuvres can be practised in complete safety in the manned models, making them a key training tool for the shipping industry.

John Millican, dean and director of Warsash Maritime Academy said: “The purchase and planned development of Timsbury Lake for Warsash Maritime Academy’s manned model operation reflects Southampton Solent University’s commitment to remaining at the very forefront of maritime training, not only in the UK, but worldwide.’’

Law firm Clyde & Co has extended its Middle Eastern presence via an affiliation with the Law Office of Abdulaziz A Al-Bosaily in Riyadh, Saudi Arabia.

Clyde says that Abdulaziz Al-Bosaily is an experienced Islamic finance specialist who has worked on some of the largest deals in Saudi Arabia. He was formerly General Counsel of the Saudi Arabian General Investment Authority (SAGIA), before becoming a senior member of the Projects Team at Clifford Chance's affiliate Saudi Arabian law firm, and subsequently co-head of DLA Piper’s Saudi Practice Group.

In May 2008 he established an independent Saudi law office in Riyadh, prior to affiliating with Clyde & Co in early 2009.

Tom Boardley

Tom Boardley, has succeeded Alan Gavin as marine director, assuming responsibility for Lloyd's Register's global marine activities.

Mr Boardley said:

“I am very excited by the challenge of managing an organisation that sits at the heart of marine safety, marine technology and shipping operations. As a technical organisation, I believe that Lloyd's Register will continue to play a key role in working with ship operators, shipbuilders and regulators to support continued progress in the global shipping business. We have more than 2,800 marine surveyors, naval architects, engineers and supporting personnel in our network around the world - I am looking forward to helping all of them to realise our potential to support safety at sea.”

London and Singapore-based marine tracking specialist Pole Star has launched a new Long Range Identification and Tracking (LRIT) package to enable owners to comply with new IMO regulations.

Paul Morter, Pole Star’s head of commercial marine products, said, “By using proven technology and our expertise we are confident that this new package will provide LRIT compliance for our customers and their ships. "This new product is a part of the range of marine information products and services that we supply to over 12,000 ships and further demonstrates our commitment to provide complete solutions.”

Pole Star is a member of Maritime London.

Greenwich Maritime Institute is giving potential candidates the chance to see and experience what studying for a maritime postgraduate degree is like. On 22 April staff will be available from 1pm - 9pm for for questions about any of the courses on offer aas well as the opportunity to observe a class, meet current students and attend the presentation of an academic paper by a PhD student.

The Greenwich Maritime Institute offers: MA in Maritime Policy, MA Maritime History and MBA Maritime Management. More information on these can be found at ww.gre.ac.uk/gmi

To book a place contact the GMI Office on 020 8331 7688 or email gmi@gre.ac.uk

Now in its 18th year, the ShipRepair & Conversion will be held at Olympia 's National Hall, London 28-30 April. New for this year, organiser IIR Exhibitions has developed an educational programme for the show. Lloyd's List Events will be holding a two-day conference on Condition Monitoring, which will open with a keynote address – How condition monitoring can pay - by Andy Trumble, chief engineering superintendent, BP Shipping.

The organisers say: “This year's practical, interactive event will highlight how advances in condition monitoring can facilitate effective maintenance regimes as well as looking to the future.”

Lloyd's List Events will also hold an integrated, post-conference workshop on the final day of the show, and in addition, Lloyd's Maritime Academy (LMA) will run a succession of seminars on Shipbuilding Conversion and Repair Contract Management.

The event also incorporates the Passenger Shipping Expo. Focusing specifically on the cruise and ferry market - on the products and services, interior refurbishment, outfitting, repair and maintenance essential to passenger shipping, the show will feature examples of developments that are transforming the cruise experience.

A group of Maritime London cadets were in London last month and were given a tour of the Lloyd’s building and an overview of maritime services in the City. The Maritime London Officer Cadet Scholarship is funded by a range of shore-based companies and pays for the training of UK deck and engineering cadets.

Pictured above are the scholarship fund chairman David Cobb, Lloyd’s of London chairman Lord Levene and the scheme’s executive director John Noble with the cadets.