Michael Molloy of Maritime London member Lloyd’s Register says that the process of implementing the International Safety Management Code began badly and is still struggling. After a detailed survey of the Code in practice, and suggesting five distinct remedial steps, Mr Molloy – who is manager, ISM and International Ship and Port Security Code Regulatory Affairs at LR – comments:

“The code has long-term implications for the regulation of shipping that go far beyond its significance as a piece of regulation per se, and it is important to realise that what has been created is a foundation, not an edifice.”

He says that the Code can be made to work better and that there is no doubt that things could be improved.

He adds: “Many elements need to be brought together, in a systematic way, before the building is complete. Endlessly chipping away at the cornerstone will not get the job done.”

Mr Molloy is one a number of experts answering the question, “Is the ISM Code working in the way it was intended?” in the latest issue of Currents, the American P&I Club’s magazine. The club says that, although the code marked its 10th anniversary on 1 July last year the date went by with relatively little fanfare and no particular retrospective look into how effective it has been in addressing the human element at sea.

Dr William Moore, senior vice president, risk control, at Shipowners Claims Bureau Inc., the club’s managers, writes that there are many reasons to develop and implement the code when there is a growing awareness of the role that the human element plays in maritime casualties.

As part of its ongoing promotional activities, Maritime London will be visiting a number of leading maritime centres around the world, promoting the UK’s professional maritime services sector. The trips will take place in conjunction with the Lord Mayor’s international programme and involve meetings with a range of local companies, receptions and presentations.

The trips are open to attendance by any Maritime London member.

Schedule

If your company is interested in participating, please contact Doug Barrow.

E: dbarrow@maritimelondon.com
T: 020 7929 4999

The managers of the Britannia P&I Club, Tindall Riley Marine and Liverpool John Moores University have become the latest organisations to join Maritime London. There are currently 80 companies in membership.

Click here to learn more about joining Maritime London.

Thomas Miller managed insurer International Transport Intermediaries Club (ITIC) has advised shipbrokers against using the term ‘first-class charterers’ when conducting fixture negotiations, following a claim made by shipowners against one of its broker members in respect of the failure of charterers to perform a contracted fixture.

Writing in the latest issue of its Claims Review, ITIC explains, “Norwegian shipbrokers were involved in negotiations for a voyage charter. When entering the market, they described the charterers as ‘first-class’. It was also alleged that, during the negotiations, they made positive representations that the charterers had the money to perform the fixture. Ultimately, however, after the voyage had been fixed, the charterers did not perform the contract. The owners obtained an arbitration award but the charterers had no assets to satisfy it.

“The owners subsequently sued the shipbrokers, stating that they had been induced into the charter party because of misrepresentations made regarding the financial standing of the charterers. The claim totalled approximately US$3m.”

ITIC discourages the use of the expression ‘first-class charterers’. It says, “If, as is often the case, brokers do not wish to identify the charterers, it is better to use the more neutral term ‘private clients’ than anything that could imply a financial reference. In this case, although many of the representations were oral, lawyers advised that there was a real possibility that the broker could be held liable. Accordingly, a settlement was agreed at $650,000.”

Maritime London member and respected shipping market analyst Fred Doll has teamed up with Navigate Events and the International Parcel Tanker Association to run the Chemical & Product Tankers event which takes place 10-11 March in London.

Sponsored by the American Bureau of Shipping, the programme features looks at the outlook for the market as well as regulatory, coatings and safety issues.

Speakers include Heidmar UK’s chartering director John Edmonson, the managing director of Essberger Tankers Hugo Finlay, vice commandant Charles Darr of the US Coast Guard and Svend Foyn-Bruun of Odfjell Seachem Parcel Tankers.

Maritime London member, the London P&I Club says one of its members recently suffered an onboard fire as a result of the willful mis-description by shippers of a chemical cargo. And it warns that there is a danger of further such incidents occurring, given the nature of modern transport logistics.

The cargo involved was calcium hypochlorite, a chemical in widespread use throughout the world, most commonly in the treatment and purification of water, and which has some inherent properties which can make it extremely dangerous. For example, if it becomes too hot, or contaminated with impurities, a reaction may set in, leading to fire or explosion.

Several such incidents occurred in the late 1990s, some involving explosions in onboard containers which resulted in extensive damage to large oceangoing ships. Subsequently, both the International Group and IMO issued guidance on the carriage of calcium hypochlorite, and the IMDG Code was amended. A number of carriers went further and simply refused to accept any calcium hypochlorite cargoes.

In the latest issue of its StopLoss Bulletin, the London Club says, “A Club member recently experienced a fire on board one of its ships which originated in a calcium hypochlorite cargo which, in order to circumvent the carrier’s prohibition of carriage, had been deliberately mis-described by the shipper as ‘calcium chloride’.”

It adds: “Given the nature of modern transport logistics, there is a strong likelihood of further such mis-descriptions occurring, either intentionally or inadvertently, particularly since international rules to ensure the safe transportation of chemicals are not applied universally.”

Alderman Ian Luder

The City of London’s Lord Mayor has welcomed plans for a new approach to taxing multinational companies as “a huge plus for the UK” that could reverse 2008's drift of companies to more attractive tax regimes. But Mr Luder, a tax expert who became head of the City of London in November, warned that Britain’s appeal could be blunted by new restrictions on interest relief that are part of the mooted reforms.

The government’s latest plans mark a shift away from Britain’s tradition of taxing corporate profits earned abroad, as well as at home, towards a “territorial” approach, in line with the European norm. Their publication last month was welcomed by businesses.

Alderman Luder, whose main role as Lord Mayor is to be an ambassador for financial services and professional businesses, said the latest proposals were “very fundamental reforms” that could create a perception of Britain as an attractive centre for headquarters.

“The driver has been the exodus of well-known multinationals. If handled correctly, [the proposals] could not only reverse this but could turn the UK into a competitive headquarters location for companies,” he said in an interview with the Financial Times.

Christian Lange has become the managing partner of Faststream AS, the Oslo based arm of international maritime recruitment specialist and Maritime London member Faststream Recruitment.

Commenting on the appointment, Faststream Group CEO Mark Charman said: “Christian is a shipping man through and through with years of shipbroking experience under his belt who really understands the sector. After two years with Faststream, I’m delighted that he has become a partner in our fast growing firm. Under his leadership our Oslo office has gone from strength to strength and we continue to expand.”

According to Christian Lange, there are still many good opportunities for senior and mid-level shipping positions across Scandinavia and northern Europe, despite the sharp market downturn.

“We still have many clients who are looking for people on both the technical and commercial side of the business and we will be taking on new recruitment consultants to handle the demand. There is certainly not a lack of jobs for experienced candidates. Companies always need good people, particularly in a downturn and we are able to deliver better candidates than ever before for the available positions.”

Maritime information provider and publisher Lloyd’s Register-Fairplay has signed a global distribution agreement with US-based Orbcomm AIS LLC which allows LR-Fairplay to distribute information obtained from Orbcomm’s AIS equipped satellite constellation. Orbcomm's “constellation” of more than 30 spacecraft includes six recently-launched satellites carrying AIS receivers, making Orbcomm the first commercial provider of globally collected AIS data from space.

Richard Silk, joint managing director of LR–Fairplay said: “AIS data, when used appropriately, is of significant benefit to both government and industry. The fusion of both terrestrial and satellite derived AIS data provides an unrivalled view of the global maritime domain.”

Newly-established Dutch company Global Response Maritime has been awarded the contract to remove the stern of the wrecked container vessel MSC Napoli. The contract, placed by the vessel owners, calls for the clearance of a stern section with an estimated weight of around 3,800 tonnes. Zodiac-operated MSC Napoli became a casualty during a violent Channel storm in January 2007. The UK-flag vessel was beached deliberately, in order to prevent her sinking in the English Channel.

Subsequent operations, by other contractors, included recovery of bunkers, containers and the forepart of the ship. The work scope under the new contract involves the total removal of the stern, including main engine, together with delivery of all scrap to the recovery facility of Scheepssloperij Nederland Gravendeel. Work should start within the first quarter of this year and be finished by August.

The Secretary of State's Representative for Maritime Salvage and Intervention, Hugh Shaw said:

"I am delighted that the owners have placed another contract for the removal of the final section of the MSC NAPOLI. From the onset of the incident they have shown tremendous resolve and commitment to remove the bunkers, cargo and the wreck. This contract marks the final piece of the jigsaw and I look forward to a successful operation."

The Merchant Navy Training Board (MNTB) is asking for comments on the final draft National Occupational Standards (NOS) for Shore-Based Ship Management activities and occupations which it made just before Christmas.

It is to be submitted to the UK Commission for Employment and Skills for official approval early this year.

The MNTB says: “We would be pleased to hear if you have any comments on the drafts, and would particularly appreciate you letting us know, by email, if you feel the standards are a fair reflection of good practice in the ship management activities covered. Please respond direct to glenys.jackson@mntb.org.uk.”

For a copy of the National Occupational Standards (NOS) List and Overview for Shore-Based Ship Management visit www.british-shipping.org.

K Line LNG carrier

The in-service fleet of LNG carriers has passed the 300-ship mark. Reporting the development, specialist UK-based LNG carrier publication, LNG World Shipping, notes that it took 34 years for the fleet reach 100 vessels and a further eight years for it to break through the 200-vessel barrier.

“Now,” the publication reports, “the 300-ship mark has been reached just over two and one-half years later.”

The 155,000 cu m membrane tank vessel Tangguh Jaya became the 300th member of the current fleet of gas carriers engaged in the deepsea movement of LNG on its delivery by Samsung Heavy Industries (SHI) to K Line and PT Meratus Line on 29 December 2008. Tangguh Jaya is one of a fleet of seven LNG carriers being built in Korea for the carriage of LNG from the new Tangguh LNG export plant in Indonesia’s Papua province for carriage to customers in China, Korea and the west coast of North America.

LNG World Shipping reports that the seven-ship fleet comprises two 145,700m3 LNG carriers built by Daewoo Shipbuilding & Marine Engineering for Sovcomflot/NYK, two 155,000m3 vessels from Hyundai Heavy Industries for Teekay and three 155,000m3 ships from SHI for K Line. The LNG carriers are being delivered over the November 2008-May 2009 period and Indonesian shipping lines hold minority stakes in the vessels.

The Tangguh LNG plant is scheduled to commence operations in the second quarter of 2009. There are a further 89 LNG carriers on order worldwide for delivery through 2011, according to LNG World Shipping.

LNG World Shipping comments: “The pace of LNG carrier ordering has slowed in recent years due to delays in final investment decisions for further new LNG export projects. As a result, the pace of LNG carrier construction that has taken place over the last 30 months is unlikely to be equalled for some considerable time.”

Greater transparency is needed for the shipping industry

Shipowners should do more to welcome television camera crews and other media professionals on board their vessels if the industry is to get the public support it properly deserves, according the latest issue of North of England P&I club’s bulletin North News.

Club director Mike Salthouse says: “As an industry, we have allowed a situation to develop in which the only time that shipping comes into the public eye is when disaster has struck. The public can thus hardly be blamed for having a poor image of the shipping industry - but it is this poor perception that lies at the root of many our problems.”

Mr Salthouse points out that the public currently expects its elected politicians to penalise shipowners and their crews whenever something goes wrong - despite their increasing dependence on shipping for day-to-day living. However, he blames the industry’s opacity and complacency for the current state of affairs. He calls for a wholesale change of mindset.

“Shipowners, charterers, P&I clubs, classification societies, shipbuilders - in fact all of us within the industry - need to start promoting ourselves by explaining what we do to everybody and anybody who will listen,” he says.

In particular Mr Salthouse urges the industry to capitalise on media initiatives such as The Box, a BBC News project launched in September 2008 to track a shipping container around the world for a year.

“Such opportunities to explain on mainstream media the nature of goods transported, the type of ship used and even the carriers involved, do not come by very often,” he says.

“Interviews could be given by the master and the crew, and cameras should be welcomed aboard to view the conditions in which the crew operate.”

Salthouse concludes that continuing to ignore its true customers is not an option for the shipping industry.

"If we do this, seafaring will become an increasingly unpopular profession, increasing the difficulty of sourcing crew - which, in turn, will have a knock-on effect in terms of casualties. Legislators will further penalise shipping interests and restrict shipowners’ liability rights. More worryingly, the tendency to compel the shipping industry to compensate parties for loss, irrespective of fault on the part of the shipowner, will gain momentum and the cost of P&I claims will continue to rise."