Alderman David Wooton has appealed to all UK political parties and the public to think about the long-term consequences of undermining the position of London as a leading financial and maritime services centre.

Addressing delegates at last week's Marine Money Forum in London he said: "What we need now is a period of common sense, consolidation and stability and an absence of unilateral national action."

He added:"Our key message to government, to all parties, to the public - and even to the European Union, is that we need you to think long term."

Highlighting the UK's leading role in shipbroking, ship finance, maritime legal and insurance work he said: "Undermining London as a financial centre is a foolishness that looks very like cutting off your nose to spite your face - tempting though that is. We cannot take it for granted that people will stay here. If a shipowner operating from London no longer feels the UK provides the right kind of environment, no longer feels valued, - and moves elsewhere, ancillary business and work will go with that. And that's bad for London and bad for the UK. "

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Overall confidence levels in the shipping industry have stabilised, according to the latest Shipping Confidence survey by shipping accountant and adviser Moore Stephens. The London-based firm says however that a sustainable recovery in the markets still appears to be some way off.

The survey finds that shipping companies believe depressed freight rates are likely to persist amid continued concerns about the level of newbuildings set to enter the market over the next two years. On a scale of 1 to 10, the average confidence level expressed by respondents in November 2009 in the markets in which they operate was 5.7, the same as in the previous survey in August 2009, which itself was the highest level recorded for twelve months. But this is still significantly down on the 6.8 recorded in the first Moore Stephens survey, in May 2008.

As previously, the survey revealed a continuing level of concern over the newbuilding orderbook. “There are too many ships already in operation, and even more to come, so there will be very little scope to increase freight rates,” said one respondent, echoing the thoughts of a number of others who responded to the survey.

Other comments included, “There is only enough cash to fund half the orderbook, so something has to give”, and, “The massive orderbook is a great cause for concern”. One respondent said that the key to the massive orderbook crisis was for “the banks not to finance any more projects and for shipyards to agree to delays in delivery dates”.

For the fourth successive survey, respondents identified demand trends as the most important factor likely to affect their business performance over the coming year, followed by competition and the cost and availability of finance.

Respondents’ expectations of making a major investment or significant development over the next twelve months remained unchanged at 5.1 overall out of a possible maximum of 10.0. Owners were the most confident in this regard, scoring 5.4, although this represented a marginal drop on the figure recorded in the last survey.

Confidence was down in Asia, from 5.4 to 5.0, and marginally up in Europe and Latin America. Owners, charterers, managers and brokers all expected finance costs to rise over the next twelve months, the overall percentage for all respondents in this regard rising 3 percentage points from 45 to 48%, having fallen one percentage point at the time of the previous survey. The biggest percentage rise was recorded by ship managers, from 46% to 51%. .

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Dry bulk bounce

A dry bulk market “which has been stronger than many expected during much of 2009, particularly in the latter part of the year” has given Maritime London member Braemar Shipping Services a boost.

In an Interim Management Statement for the period since the six months ending 31 August, the company says that the unexpectedly buoyant dry market has mainly been due to the continuing high demand from China, and to a lesser extent India, for the import of raw material. These factors have been sufficient to absorb the arrival of new tonnage and for the return of port congestion. The Baltic Exchange Dry Index, a daily index of dry bulk freight rates, averaged 3123 points between 1 Sept 2009 and 1 Jan 2010, compared to 2178 points over the same period last year.

Braemar says that it has also benefited from a good level of sale and purchase activity and demolition broking remains extremely active as the scrapping of older ships, particularly in the container and tanker sectors, continues to grow. For much of 2009 the tanker market rates have been weak due to lower global industrial energy demand and the impact of newbuilding deliveries.

The company says: “There has been some improvement in rates in recent months and the Group’s transaction numbers remain strong. Additionally, Braemar’s specialised tanker team has won some important new business in recent weeks and the Group is growing its presence in the wet FFA (Forward Freight Agreement) market.”

The company adds that its established Technical, Logistics and Environmental divisions are all performing in line with expectations. Braemar concludes: “The Group’s activities are strongly aligned with world trade – a key driver of shipping – which alongside most large economies has been improving over the past six months. The prospects for the Group are positive while this recovery continues.”

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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

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The European Commission has opened a formal antitrust investigation into the Baltic Max Feeder scheme in which European ship owners collectively agree to cover the costs of removing feeder vessels from service. The EC says the scheme may be aimed at reducing capacity and therefore at pushing up charter rates for such vessels. The Commission says it will particularly look at whether the scheme has the explicit aim of reducing the available capacity of feeder vessels in Europe, which in turn could increase the rates of chartering feeder vessels.

The investigation comes as signs of a recovery in the container trades start to appear.

Container trade is picking up

Liftings from Europe to Asia by the container shipping lines belonging to the European Liner Affairs Association continued to pick up in November, the most recent month covered in newly published ELAA figures.

The global lines have all laid up significant amounts of tonnage and cut services. At the same time where possible they terminated charters of vessels, putting intense downward pressure on vessel charter rates.

Eastbound containers volumes were 463,402 TEU, 30% up on the same month a year earlier. This was third successive month of double digit increases.

There were also sign of a slight recovery in westbound liftings. While, at 953,517 TEU October liftings were 11% down, November's, at 960,783 TEU, were 2% up. Freight rates for all export trades from Europe have been edging up with the Asia trade leading the way after falling more than the other routes and reaching a low point of 60% of their December 2008 levels and recovering to just under 90% by October.

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Specialist provider of governance, risk and internal audit services AHL Business Assurance has merged with major shipping accountant and Maritime London member Moore Stephens. No financial details of the deal were available, but Moore Stephens says the merger will not only boost its significant shipping practice, but it will also facilitate continued growth in other specialist industry sectors such as insurance and financial services and the public sector, where Moore Stephens is also active.

The firm's shipping partner, Richard Greiner, said the firm was delighted that AHL had chosen to join Moore Stephens. “Demand for governance, risk and assurance services is increasing as meeting the requirements of both best practice and the regulators is now critical for many businesses and with the AHL team’s skills and credentials, we will be even better placed to help them.”

AHL’s two directors, Sarah Hillary and Robert Noye-Allen, have become partners in Moore Stephens LLP.

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IMEC, the International Maritime Employers’ Committee, says that its members are still under pressure as a result of the economic downturn. An IMEC statement implies that seafarer unions looking for an increased pay deal may be disappointed.

IMEC says: “The same key challenges that faced the industry during 2009 continue to affect us during 2010. The world financial situation is still in a critical period with continued pressure being applied to all industries to cope with the drop in trade and curtail expenditure. Whilst an understanding was reached during 2009 that IBF pay reviews would be kept on hold until the end of 2010, in order to asses any change to the fortunes of the industry over a longer period, initial indications seem to show that the industry will not undergo any large change during the foreseeable future.”

It adds: “IMEC is committed to the negotiation process of the International Bargaining Forum and fully intends to comply with the agreement to meet with the ITF during 2010 with a view to pragmatically examining the continued effect of the financial crisis on the ability of the ship owners to agree to any future increase in minimum salary levels, for seafarers employed by its members.” The statement was issued at a press conference to “provide the industry a brief retrospective on the events of 2009 that had occupied so much of the organisations’ time and also to provide a look ahead to the many significant challenges that face IMEC and the industry as a whole during 2010”.

In 2009 IMEC changed both in the location of the organisation’s head office and also in the position of secretary general. It moved out of the offices it shared with the International Chamber of Shipping and International Shipping Federation on Carthusian Street to a new modern office space in St Katharine’s Dock, next to Tower Bridge, London. IMEC’s long serving secretary general, David Dearsley, retired in 2009 and was replaced by Giles Heimann.

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BIMCO has revised its well-used Stowaways Clause “in the light of continuing problems with stowaways in order to further clarify the allocation of responsibility for stowaways between owners and charterers”.

The Stowaways Clause for Time Charter Parties 2009 is now available for download.

BIMCO says in a statement: “Owners are covered by their P&I club for costs in connection with stowaways, but this Clause gives the Club a recourse claim against the charterers. The Clause also now includes stowaways gaining access to the vessel in relation to the cargo operation, such as hiding in grabs whereas previously, the charterer’s responsibility for stowaways was limited to those gaining access by concealing themselves in the cargo.”

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Global chartering software and database provider AXSMarine says it plans to boost its presence in the European, Middle Eastern and African (EMEA) shipping markets with its new representative office in London which opened last week.

Based in Cannon Street, the London operation is headed up by Hugo Rousse who has relocated from AXSMarine’s Paris office.

AXSMarine specialises ininteractive databases and online knowledge tools for charterers, owners and operators in the dry bulk, wet bulk, offshore, and liner shipping sectors.

The London office will manage all of AXSMarine’s commercial activities for the EMEA markets. Up to 50% of AXSMarine’s existing shipping clients are based in London and European centres.

Welcoming the opening of the Cannon Street office, Stephen Fletcher, AXSMarine commercial director, said: “Our London office will provide a vital role in providing sales and post sales support to our existing as well as potential client base. London is a very important shipping centre, for example the majority of the world’s broking houses are either head quartered here or have a presence here. Our London team will add that crucial hands-on element our clients need, whether it is on-site training, contract discussions or just keeping them abreast of latest developments or new products we may be launching.”

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Shipping, transport and insurance lawyers Scott Yates and John Habergham have launched a new niche law firm in Hull. Myton Law will provide wet shipping, dry shipping, insurance and technical shipping advice. Both partners were previously partners at rival firm Andrew Jackson.

“Myton Law draws together some of the most highly renowned shipping lawyers in the North to create a vibrant, new, niche law firm in Hull,” said Scott Yates. “We are proud to be based in this maritime capital of the Humber sub region – the UK’s largest ports conurbation. Here we are well placed to serve the many major shipping and transport companies in this area, as well as national shipping, transport and insurance clients throughout the UK.”

John Habergham added: “Our international experience and strong links with lawyers, consultants, experts and shipping communities on the near Continent, especially the Netherlands, will extend our reach far beyond Yorkshire.

“Being based in Hull and operating as a lean, capable, specialist team with a pragmatic commercial approach we offer a competitive service with absolutely no compromise on quality.”

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According to the UK Ship Register (UKSR), 13 ships joined the register during the last quarter with a combined gross tonnage of 210,000 GT. Of these new registrations 10 were new builds, whilst the remainder transferred in from other flags. These new registrations include a container ship, a general cargo ship; three supply ships; one vehicle carrier; one bulk carrier and six vessels of other types.

Companies registering ships with the UKSR in the last three months include Carisbrooke Shipping, Wilhelmsen Lines Car Carriers, Rio Tinto Shipping, Gulf Offshore and Serco Denholm Marine Services.

The average age of vessels flagging-in during the last quarter was two years, whilst the average age of vessels leaving the register was 22.

At the end of December 2009 the UKSR’s fleet stood at 1,553 ships with a gross tonnage of 17,464,490 gt.

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Somali pirates captured the Singaporean chemical tanker M.T Parmoni with 24 crew members aboard in the Gulf of Aden on New Year's Day.

The head of the European Union's EUNAVOR anti-piracy security mission Capt Paul Chivers will address the concerns of the managers and operators of smaller tankers at the Chemical & Product Tanker conference in London on 9 March. With two chemical tankers already hijacked in the Gulf of Aden since Christmas seemingly no end in sight to the continuing high level of attacks on shipping in the region, attendees will also be briefed on the development of the Somaliland coastguard programme.

According to the event organisers, IPTA and Navigate Events, the wide-ranging programme will also focus on a mix of commercial and operational issues. Under the spotlight will be petrochemical, biofuel and vegoil trends; legislation, finance and vetting issues. Speakers lined up include ICAP Shipping, Inge Steensland, Bureau Veritas, John T. Essberger, DVB Bank and Hudson Systems.

“We’ve put together a programme designed to be of interest to both senior commercial and technical managers. The event has developed into the leading annual gathering for the sector and attracts owners and operators to London from across the world,” said event director Bill Lines.

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Global accountancy PricewaterhouseCooper (PWC) and Southampton Solent University are the latest firms to join Maritime London. PWC has an established global network of shipping experts and provides the industry with a comprehensive range of advisory services. Southampton Solent University offers a wide range of maritime related degrees and training courses including BSc (Hons) Ship and Port Management and BSc (Hons) Maritime Business.

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UK-based training provider Videotel has made a hard-hitting film aimed at preventing deaths of seafarers in enclosed spaces. It says that despite much effort being put into training programmes and new legislation, experienced seafarers continue to die as a result of forgetting or ignoring the most basic of rules.

Its new film sets out to explore the main reasons why so many seafarers lose their lives in such tragic circumstances. Based on real case studies, the programme shows how five highly experienced seafarers lost their lives and how another almost suffered the same fate because of that natural human instinct, to help as quickly as possible a person in trouble.

Videotel says it hopes that by distributing this programme, it will make seafarers think much more seriously before entering enclosed spaces.

Captain Timothy Crowch, a former commercial airline pilot who now works with organisations around the world in the development of safety management systems, presents the programme. In so doing, he points out that the airline industry has for many years endeavoured to understand the factors that lead to human error; “simply to attribute a death or injury to human error and leave it at that is no longer acceptable, if it ever was”.

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