The Chamber of Shipping last week hosted a meeting of its members to consider the merits of market-based instruments which could help shipping reduce its carbon emissions. The Chamber has endorsed the need for action by all parties – government and industry – to achieve a positive outcome to the current discussions within International Maritime Organization (IMO) on carbon emissions. It has warned that the only alternative could be a brake on world trade.

The UK shipping industry's representative body says it is fully in support of the IMO’s commitment and efforts to achieve a common position in good time before the UN summit on climate change in Copenhagen next year.

A statement stresses: “There is a duty upon the industry to achieve a practical outcome which contributes to the global effort to reduce global warming. In order to achieve this, the Chamber stresses the importance of keeping all options under active investigation and remains open to any economic or “market-based” instruments provided they fulfil the nine principles for any future IMO regulatory framework agreed at its Marine Environment Protection Committee in April.”

The Chamber warns that, with local and regional authorities in different parts of the world contemplating unilateral action, it is clear that there is likely to be considerable political pressure for some measure which goes beyond allowing the impact of the market alone to exercise the required pressure.

It cautions: “The industry is already engaged at IMO in discussing practical measures which can facilitate the reduction of CO2 emissions by both existing and new ships. However, if industry cannot deliver sufficient carbon reductions as required by regulators through technical and operational means it may be that market-based measures will have to be invoked to bridge the gap. The only alternative is the unthinkable prospect of limiting the number of ships’ voyages, thus effectively putting a brake on world trade.”

Robert Ashdown, the Chamber's head technical expert says: “Our experience of the debates on air pollutants (sulphur and nitrogen) shows that IMO can be trusted to deliver ambitious targets that are both environmentally sound and practically achievable. If industry can unite in agreeing a common position and inject its findings into the debate at IMO, we have every confidence that an equally acceptable solution can be found for carbon. This process is gathering pace in IMO and it is important to allow that to run its course, before ruling out specific options.”

Iraq's Ministry of Trade and the Grain Board of Iraq have been given leave to appeal against a ruling by the English Commercial Court dismissing their challenge under Section 67 of the Arbitration Act 1996 to challenge an award to Tsavliris Salvage under the Lloyd’s Open Form of salvage agreement.

According to David Martin-Clark’s Shipping & Transport Case Notes, the challenge was made, firstly, on the grounds of lack of jurisdiction, there being, so it was alleged, no valid arbitration agreement, and secondly on sovereign immunity, in that the Grain Board of Iraq was part of the Ministry of Transport and therefore immune from the arbitration proceedings. The application failed on both grounds.

The Baltic Dry Index dropped to its lowest level since February this year, closing at 7201 points on Friday, down 320 points on the previous day. Made up of key dry bulk shipping routes covering capesize, panamax, supramax and handysize vessels, the index has had a rollercoaster year, hitting an all time high of 11793 points at the end of May and recording huge rises and falls.

Last week saw falling rates in the Atlantic and Pacific for all vessel types with plenty of available tonnage.

Maritime London member Steamship Mutual has appointed Stephen Quartermaine as its head of underwriting. He takes over the role from Gary Rynsard, the chief operating officer. Quartermaine will be responsible for overseeing and co-ordinating Steamship Mutual’s global underwriting strategy.

Earlier this year Steamship Mutual posted record results with a 9% growth in entered tonnage and a 17.5% increase in free reserves.

Steamship ceo James Stockdale commented: “The P&I market continues to experience record levels of large claims and, in such a challenging environment, we must pursue a strong policy of prudent risk and financial management combined with sound underwriting if Steamship Mutual is to flourish as a top tier Club.”

The UK P&I Club says it has issued US$100 million of capital securities. A statement adds that “application will be made to the UK Listing Authority on the 22 August for the Capital Securities to be admitted to the official list of the London Stock Exchange expected on the 26 August. The Club expects to be in receipt of funds on 22 August.”

Already the largest P&I club, total entered tonnage increased to over 110m gt as of 20 February 2008. More than half the club's mutual tonnage is less than ten years old. It has an "A" strong rating with Standard & Poor's.

The club’s chairman Tullio Biggi, said: “We are delighted with the result and the support which has been given from our membership. For the Issue to have attracted orders in excess of $100 million in current market conditions is a great achievement.”

London-based ICC International Maritime Bureau (IMB) says it has uncovered a series of spurious timber shipments, which allegedly originated in South East Asia.

The irregularities were found following routine due diligence checks on behalf of member banks. The bills of lading, purportedly for containerised shipments from Malaysia to North Africa and the Middle East, all feature the same supplier and carrier. The IMB quickly established however, that the stated vessels had not called at the port of loading around the stated time of loading. Additional enquiries indicated that the port of loading had no record of the stated cargo, nor could the respective cargoes be traced at the nominated discharge ports.

IMB assistant director Michael Howlett stated: “These recent examples indicate that fraudsters are producing documents that on their face and at first glance, appear like the genuine document. In these cases, the names of vessels used by the big liner companies have been used along with container numbers that would also appear to be owned or operated by some of the larger firms. A number of checks with third parties, however, indicated that it was simply impossible for the stated cargo to have been loaded on board the vessel as per the bills of lading presented to our member banks.”

The IMB is advising members of the shipping and investment community to be alert to irregularities occurring in timber trades originating from this region. For those conducting business of this nature, the IMB strongly recommends thorough background checks on all parties and verification of all shipping and sales documents.

Better rail connections to UK ports needed

A major UK ports group has criticised what it says is a lack of government investment in modern rail connections to the country's ports.

“It is time for action. We need a rail network that will finally support UK businesses by providing true benefits for our economy and especially the environment. Compared to road transport, rail is a much more environmentally friendly transport option producing 5 to 10 times fewer emissions,” says Martyn Pellew, group development director at PD Ports.

He adds: “Considering that many strategic rail routes throughout the UK are unsuitable for transporting today’s modern, taller containers, we must seriously start to question the government’s commitment to actually reducing the country’s carbon emissions.”

PD Ports argues: “What UK plc needs is better use of rail for freight over shorter, (less than 100 miles) and not just longer (over 200+ miles) journeys. Using regional ports such as Teesport with its good rail links the potential exists to significantly reduce road miles.”

However Mr Pellew argues: “While shipping lines and importers increasingly favour the use of modern high cube containers, many of the UK’s key freight rail routes are not able to handle them, greatly reducing the use of rail as a viable alternative to road transport. We want to maximise the use of rail to move containers inland, but our efforts are being severely impaired by the current gauge restrictions.”

The Chamber of Shipping has welcomed a report by Joint Committee of Parliament into the draft Marine Bill. It notes many of the concerns expressed by industry were included in the report’s recommendations.

The draft Marine Bill proposes to set up a new network of marine conservation zones around Britain’s coast and implement changes in fisheries and marine management to help to prevent damage to the marine environment.

In particular, the Chamber says it is pleased that the Joint Committee recommended the need for:

The Chamber says it is confident that given the excellent consultation process and two-way engagement to date that these concerns will be fully taken into consideration by the Marine Bill team and a satisfactory outcome reached.

Six of London’s major shipbroking firms - ACM, Braemar Seascope, Clarksons, Gibsons, Galbraiths and SSY - have backed the project to secure the future of the world’s most famous sailing ship, Cutty Sark, by donating a cheque for £50,000 to aid conservation work following last year’s fire.

Although only 2% of the Cutty Sark’s original structure was damaged by the fire, the scope of this landmark project, designed to safeguard the future of this international maritime icon, has been significantly increased.

Denis Petropoulos, joint managing director of Braemar Seascope, said the Cutty Sark was an important part of London’s heritage and all six companies believed it was a very good cause.

“As brokers, we almost have an obligation to help educate the world going forward about the splendours of our shipping heritage and of shipping in general. Shipbroking is a very important part of the international maritime industry,” he said.

Keith Amato, director of ACM, said: “A lot of work has been undertaken on the project and we all felt it was right to contribute to the conservation project.”

When the project is completed in March 2010, Cutty Sark will ‘float’ once more, suspended three metres above the bottom of her dry berth. This space will become a magnificent gallery and will also give visitors a unique opportunity to see the shape of the ship’s hull.