International Chamber of Shipping secretary Simon Bennett has responded to an onslaught on the shipping industry by the Mail on Sunday. In its 22 November edition the MoS carried an article by Fred Pearce, an environmental consultant to New Scientist magazine, under the headline “How 16 ships create as much pollution as all the cars in the world”. The introduction also referred to a Daily Mail story of the previous week that “54 oil tankers are anchored off the coast of Britain, refusing to unload their fuel until prices have risen”.

In a letter to the MoS Mr Bennett says that its article “portrayed shipping a bit unfairly”. He wrote: “Sulphur in ships' fuel will be just 0.1% in the North Sea by 2015 (compared to the 4.5% permitted until recently) and in EU ports (where health is most at risk) from January 2010. Ships have no wish to burn dirty bunkers, but the agreed switch to 'clean' fuel requires a massive expansion of oil refining capacity which takes time. (Because shipping is such a big industry, it will also mean that diesel used by motorists is predicted to go up [in price] by about 50%).”

The MoS also attacked the shipping industry over its alleged attitude to reducing CO2 emissions, saying that the “ shipping companies are keeping their heads down”.

The MoS claimed: “A meeting of the IMO in July threw out proposals from the British Chamber of Shipping, among others, to set up a carbon-trading scheme to encourage emissions reductions.”

Mr Bennett responded: “With regard to CO2, the report of International Maritime Organization discussions was completely inaccurate. Mr Pearce should talk to a more reliable source - no proposals have been ‘thrown out’. Ships, which transport almost 90% of world trade, are by far the most carbon efficient form of commercial transport, at least 30 times more so than aviation. Far from ‘keeping their heads down’, shipping companies are actively lobbying to be covered by the climate change deal in Copenhagen, and the industry has not objected to the very ambitious EU proposal that it cuts emissions by 20% by 2020 (aviation is being asked to cut by just 10%)”.

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A Lloyd's of London news report highlights the complex operation, typically based in London, that is triggered when a ship and crew in hijacked. Lloyd's notes that the efforts of ship owners, supported by their insurers and advisers, means that the vast majority return home safely.

Responding to the criticism that, by paying ransoms, insurers and ship owners are fuelling piracy Rupert Atkin, chief executive of Talbot, says piracy off the Horn of Africa is a complex problem and will not be eradicated by the non-payment of ransoms. Moreover, he argues, the payment of ransoms by insurers and ship owners helps save the lives of crew and protects the interests of ship owners. Once a ship owner has been notified that one of its vessels has been hijacked, a specialist law firm is usually instructed, according to Mr Atkin. This is because piracy claims involve many insured parties and coverage is typically very complex, said Atkin, who is a former chair of the London insurance market’s Joint War Committee.

In a similar vein the report quotes Rhys Clift of law firm Hill Dickinson as explaining that resolving a piracy claim can involve many expert parties, according to Clift, whose firm has handled several such claims. Insurers, brokers, ship owners, ship managers, solicitors, average adjusters, security consultants and professional hostage negotiators are all often involved, he added. “There is a highly professional machine working hard to resolve a difficult situation. Time is of the essence because people are being held and because ships and cargo can be detained for many months: Time is money.”

Suzanne Williams, a security and K&R consultant Special Contingency Risks, a subsidiary of Willis also points out that there are many more stakeholders involved in a piracy hijacking, with ship owners, charterers, crewing agents, and others, she said. Marine piracy is also under the media spotlight far more than land-based kidnappings and this can interfere with negotiations, according to Ms Williams, who until recently headed up the Hostage Crisis Unit at new Scotland Yard. She has been working with ship owners, training crisis management teams and putting them through realistic scenarios.

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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.

Space is also available within the Maritime London pavilion at Posidonia. Contact Bill Lines for further details. Email: blines@maritimelondon.com

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The master of the Svitzer tug hijacked last year has highlighted at a international conference held in London last week the dangers of warships becoming involved in piracy incidents once vessels have been hijacked and crews held hostage. Answering questions at the International Shipping Federation (ISF) Manning and Training Conference, Colin Darch also said he was against arming merchant seamen but thought some anti piracy equipment could be effective. In particular he said that fitting razor wire around his vessel's stern could have prevented the pirates getting onboard.

Capt Darch said a US warship had come on the scene shortly after the Svitzer Korsakov was forced to anchor off the Somali harbour of Eyl. The warship's commander did his best to scare the pirate gang into leaving. Capt Darch said however that once it was clear US forces were neither going to attack nor, as they said they would do, prevent resupply of the hijacked vessel the only effect the warship's presence had was to raise tension among the pirates and make the situation more dangerous.

At one stage Capt Darch and his crew barricaded themselves in the steering flat after blacking out the ship and sending a coded message to the owners of his intentions. The plan was that US forces would mount an attack while the crew were out of harm's way. It appears that the message was never passed on to the Americans.

Capt Darch said he later understood that in any case it would have been very unlikely such an attack would have been sanctioned.

Capt Darch had tried hard to avoid capture and had been successful in keeping at bay the pirate skiff that initially tried to put men on board. He used the tug's twin thrusters to alter course violently and it was only when a second skiff appeared that he was unable to hold off the gang. He said that even with two skiffs the the pirates probably would not have been able to board had razor wire been fitted aft.

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The members of the London-based Council of the Greek Shipping Co-operation Committee told the Greek Minister of Economy, Competitiveness and Merchant Shipping, Luka Katseli, last week of their concerns over the restructuring of the the country's shipping administration.

During a working lunch at the GSCC's offices at the Baltic Exchange, the main topic of discussion was the separation of the Greek Ministry of Merchant Marine and of the Hellenic Coast Guard.

The GSCC members told Ms Katseli that the unanimous position on the issue of the Greek shipowners was that it was an absolute necessity for Greek shipping and especially the national register, to be administered by a separate and independent Ministry, which operated as a single and comprehensive entity, covering all aspects and operations of the merchant shipping.

They added that it was equally absolutely necessary, for this Ministry of Merchant Marine to be administered and supported by an equally undivided and encompassing body, the Hellenic Coast Guard, which guarantees its smooth operation and inspires the necessary trust.

The Minister responded that the government wanted to work for the best interests of the Greek shipping industry, to boost the competitiveness of the Greek registry and ensure better representation of Greek shipping positions in the European Union and internationally. She said she is guided by the principle that ocean shipping, as a global industry needs to be regulated by global measures taken at IMO. Steps will also be taken to attract youths to a career at sea and to update marine training.

Ms Katseli confirmed that the Greek Government was open to proposals and that as minister she was eager for collaboration and dialogue so that the issues that arise are resolved quickly and successfully.

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Maritime London member Lloyd's Register Group says it has made several changes to its management structure which “streamline reporting lines” within its marine division. All the key roles will report directly to Tom Boardley, Lloyd's Register’s marine director, who joined the company from CMA CGM in April 2009.

Mr Boardley said: “These changes ensure that we have a balanced management team to lead the Marine business through what is bound to be a difficult period, as new ship building activity returns to more ‘normal’ levels, after the spike of activity over the past two to three years, and we adjust our strategy and organisation accordingly. The team will also be actively supporting Group objectives and co-operating with other Lloyd's Register Group businesses. Particularly important is working with our energy stream on offshore projects.”

Tim Kent, currently marine strategy and planning director, will assume the role of technical director designate, commencing in January next year. He will replace Vaughan Pomeroy who is retiring in June 2010 after more than 29 years at Lloyd's Register.

John Curley, recently moved from Dubai where he was Lloyd's Register EMEA's senior vice president, marine, for Middle East and Africa, will take on a new and enhanced role as head of global marine sales and marketing.

Chris Walters continues in his role as marine operations director while Anne-Marie Warris, who joined the marine business from LRQA in July 2009 as marine environmental advisor, will continue to work with marine stakeholders in addressing environmental matters.

A further new position, marine finance director, has been filled by Simon Nice. His appointment completes the creation of a senior financial management team for the Lloyd's Register Group, representing region and business divisions."

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A new venture described as being aimed at easing premium flow for the international marine insurance market and its clients has been launched in London, managed by Insurance Premium Finance Ltd (IPFL).

The new independent company says it has secured a line of credit from a leading international bank to underpin premium finance for such covers as Hull and Machinery, and Protection and Indemnity, for ship operators.

The financing also extends to cargo owners and charterers, and others taking out insurances in the marine market. Insurers will receive their premiums “up front” while their clients will be able to spread the payment of premiums over several instalments, in either US dollars, euros or sterling. The facility will be available to assureds paying at least USD75,000, or the equivalent in the other currencies, for their annual marine insurance premiums.

Neil Barlow, a director of IPFL, said: “At present, domestic insurance business such as household or motor can be the subject of premium finance and the premiums can be paid over several instalments. Similarly, for commercial insurance placed within the same market as the country of origin, premium finance can be arranged. Our research showed financing of premiums has until now been unavailable for cross-border transactions. For example, a Greek shipowner arranging cover in the global marine insurance market in US dollars would not be able to obtain finance to spread the cost of the insurances over multiple instalments, other than using the existing limited facilities granted by the insurance companies themselves.”

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Tough outlook for European container ports

Container ports have not been as severely affected by the recession as container shipping lines according to a new study from Ocean Shipping Consultants (OSC).

Nevertheless North European Containerport Markets to 2020 expects the decline in container port volumes in 2009 to range between 10-12 per cent on Europe’s western north continent and British Isles, around 15 per cent in Scandinavia, some 18 per cent on the eastern north continent and close to 25 per cent in the eastern/southern Baltic.

According to the report, the reduction in demand means that container terminals have capacity to spare for the first time in many years. However, average ship sizes continue to increase, driven by deliveries of large vessels ordered in huge numbers before the recession, and reinforced by lay-offs and scrapping of older, smaller vessels. And handling these larger vessels remains a challenge for some ports.

OSC expects recovery to be gradual, rather than surging, due to anticipated continued restraints on bank credit and the dampening effects on consumer expenditure of the fiscal measures which will be needed to repay government debt.

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The International Union of Marine Insurance (IUMI) is to widen its membership following a decision to establish a new class that will be known as IPP (IUMI Professional Partners). IUMI says that applications will be considered from legal firms, surveying/adjusting firms, and business intelligence and software providers.

Membership is not open to re/insurance brokers, nor firms or companies directly insured through marine insurance channels, such as shipbuilders, freight forwarders etc.

Fritz Stabinger, IUMI’s secretary general (SG), says: “The benefits for an IPP will be membership in the IUMI community; admittance for up to two representatives at our annual conference; an advance list of conference attendees; identification on IUMI’s IPP webpage, including a link to the IPP’s own website; one page advertisement in the conference package; and consideration of IPP members as guest speakers at the annual conference. We look forward to welcoming our first IPPs in January 2010.”

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The Lord Mayor at the Baltic Exchange

Newly elected Lord Mayor of London Alderman Nick Anstee has warned Baltic Exchange members that change is on the horizon for the freight derivatives sector. Addressing the Baltic Exchange’s board of directors and guests at a lunch hosted by the Baltic Exchange, he said that the over-the-counter (OTC) freight derivatives market had evolved successfully, but “change is coming and it is important for the Baltic to be in the right position to respond to that change.”

He added: “The City Corporation will continue to advocate the need for international co-operation on a global regulatory framework – with transparent, high and mutually recognised standards, in line with G20 commitments.”

Baltic chairman Mark Jackson said that the Baltic is: “looking hard at how the FFA market will need to evolve in its next phase, particularly in the context of screen trading and against the backdrop of a changing regulatory environment.”

Also noting that there were now a number of hedge funds active in both physical shipping and freight derivatives, the Lord Mayor explained that the Corporation is “arguing against some of the more unhelpful elements of proposed EU regulation on hedge funds and private equity.”

The Lord Mayor re-iterated the City’s commitment to supporting the provision of an attractive business environment and said that he recognised the mobility of shipping. “We know that a number of shipping interests have reduced their presence in London. It would be very valuable for us to have some quantitative evidence of the scale of the migration. Part of this work will be trying to ensure that the UK’s immigration policy for skilled people will remain proportionate and fair.”.

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Freight capacity employed on UK short sea freight roro, lolo and Channel Tunnel services has been reduced by 4.1% (600,000 units) over the last 12 months according to a report by consultant PRB Associates. The impact has been felt across all market sectors except on the Irish Sea where capacity employed has actually increased by 5.9%.

According to the UK Short Sea Freight RoRo and LoLo Capacity Analysis and Report 2009, UK short sea capacity now stands at 14.2 million trailer / 40 foot container units serving five distinct market sectors: Near Continent, Channel (including Eurotunnel), Irish Sea, Scandinavia and the Baltic. The roro mode provides the greatest share of short sea capacity (79%) with the lolo mode contributing 11% of capacity. The Channel Tunnel shuttle and through train services currently provide the remaining 10% of UK short sea capacity, with shuttle train capacity having been held back to match prevailing demand during 2009.

P&O Ferries remains the market leader employing nearly 22.5% of the total market capacity on a range of North Sea, Channel and Irish Sea routes. The Port of Dover handles more capacity than any other UK port (26.3%).

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The London P&I Club's Committee has announced a general 5% increase for P&I premiums for the 2010/2011 policy year, much in line with that of other clubs which have so far set premium levels.

But the club says: “Claims continue to run at a high level in Freight, Demurrage and Defence (FD&D) and the Club's Committee has authorised a general premium increase of 20% for that Class for the 2010/2011 year to reflect this.” The club says that its open P&I policy years are “developing in line with expectations, and the general increase for the forthcoming P&I year reflects the Committee's determination to consolidate improvements made to the Club's financial position”.

Ian Gooch, chief executive of the club's management team, comments: "It is still too early to assess the full impact of the economic downturn, and the P&I industry continues to face challenges on various fronts. These include exposure to random, substantial claims and uncertain investment conditions. Although there are signs of moderation in the cost of attritional claims and our investment portfolio has produced a positive year to date, we will continue to adopt a cautious approach moving forward."

All P&I deductibles currently below US$15,000 will increase by US$1,000.

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The Department for Transport has arranged a series of three consultation events to help inform responses to the current consultation on a draft National Policy Statement (NPS) for Ports.

The new Infrastructure Planning Commission will be required to determine ports planning applications in accordance with the NPS, but it will also inform decisions on smaller developments that fall below the threshold for referral to the IPC. Admission is free and anyone interested in the NPS is welcome to attend, subject to prior arrangement and confirmation that space is available.

The events take place:
7 December, Queen Alexandra House, Cargo Road, Port of Cardiff (10:30 to 3:00)
10 December, Royal Armouries Museum, Leeds (10:30 to 4:00)
14 January, Methodist Central Hall, London (10:00 to 4:00)

There will be a series of presentations in the morning, followed by the opportunity to discuss the NPS issues informally and in group sessions.

Contact Mike Davey via portsconsult@dft.gsi.gov.uk for further details.

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Global recruitment group and Maritime London member Faststream has expanded its presence in the oil and gas industry and is recruiting for the sector from its offices in the UK, USA, Norway and Singapore. With a 65 strong team of specialist recruiters, the company is already the market leader for technical and commercial roles in the shipping industry and now offers its services globally across the full energy value chain.

Faststream chief executive officer Mark Charman commented: "We've been active in the UK oil and gas sector since 2002 and I'm delighted that we will now be able to offer our clients a globally integrated service."

"We've enjoyed rapid growth throughout our other industries through being good at what we do, and this is no different. We have a strong database of candidates, a detailed knowledge of the industry and a team of proven specialist consultants so there is a strong structure behind this expansion".

Faststream will service the market for upstream, midstream and downstream candidates on behalf of clients throughout the world. The group's headhunting division The Meeting House will undertake specialist oil and gas search assignments.

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At the recent International Bulk Journal Awards Dinner, held in Amsterdam’s prestigious Bers van Berlage, the Bulk Ship of the Year award, sponsored by Maritime London member RightShip UK, was won by Fednav’s m.v. Umiak 1. In 2010, the awards ceremony will be held in London. Photo L-R – David Peel (RightShip UK), Suzanne Bleau-Myrand (Fednav), Ray Girvan (International Bulk Journal).

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