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29 July 2008

A free fortnightly publication produced by Maritime London

Maritime sector gets One Voice
Steamship Mutual support for Maritime London cadet
Court cases concern
Lloyd's Register hails “safer, more robust” tanker
Draught survey caution
New claims directors for Aon
Clyde & Co advises on major port expansion in Yemen
UK firms bid for Panama Canal contracts
Surveying seminar
Raising funds for Sierra Leone

Maritime sector gets One Voice

Faststream advert

Maritime London has been a significant participant in One Voice, a new grouping representing British shipping, ports and maritime business services sectors to speak with a single voice on key strategic and practical issues of joint concern. One Voice will meet at a high level on a quarterly basis to provide a forum for discussion and action on current issues. A speedy consultation process has also been established to allow quick responses to issues when required.

Maritime London chairman Robert Woods said: “One Voice is of key importance for a huge range of UK based companies and will help ensure a greater understanding of maritime related matters at the highest levels of government, nationally and at EU levels. By working together we hope to secure a better deal for companies across our vast maritime economy.”

“The aim is to achieve greater influence and simplify relationships with UK Government, MPs, officials, other UK maritime-related sectors, international organisations and associations, and other relevant points of influence,” said Martin Watson, president of the Chamber of Shipping. “The UK Government openly states that it sometimes has difficulty identifying whose voice should be considered truly representative on some specific sectoral and cross-sectoral issues.”

The chairmanship of One Voice will rotate between the three sectors making up the grouping (business services, ports and shipping) with Richard Everitt, chairman of the UK Major Ports Group, taking the role for the first six months. The day-to-day secretariat will be undertaken by the Chamber of Shipping.

One Voice will speak as a single group on agreed issues, either through the chairman of the day or through the individual member organisation which is most concerned with the issue. The participating organisations – include the Baltic Exchange, the British Ports Association, the Chamber of Shipping, the Federation Council of the Institute of Chartered Shipbrokers, Maritime London and the UK Major Ports Group. Other bodies may be invited to join in due course.

One Voice aims to unite and represent the UK’s maritime services cluster and seek recognition as such by Government, international audiences, including the EU, and the outside world.

The One Voice members will identify together common strategic goals, try to reach common positions among the constituent organisations on key high-level issues, and, (once agreed) maintain the discipline of a single voice in discussions with the relevant audiences.

  • Build greater political and policy weight behind the positions taken by these vital sectors, thereby expanding their individual and collective influence
  • Take advantage of new opportunities to build consensus between the partners and dispel any confusion which may have resulted in the past from the projection of several different (even if parallel) messages on key high-level issues
  • Facilitate closer working between the participating organisations, thereby increasing their effectiveness and enabling their professional resources to be used/shared better in the future.

“Many associations represent the interests of the wider maritime sector,” commented Michael Drayton, chairman of the Baltic Exchange. “This is in stark contrast to the close-knit public profile of, for instance, the aviation industry. In the past, our message to government has been diluted by the number of groups speaking. We are determined to work effectively together to secure the long-term future of UK-based shipping and wider maritime services by making sure the government receives and understands our messages clearly.”

Increased coordination of the maritime sector is expected to be matched by a greater cohesion within government and especially with the key departments and agencies that work with maritime businesses, including the Departments for Transport, for Business Enterprise and Regulatory Reform, and for Environment, Food and Rural Affairs, and the Maritime and Coastguard Agency.

The two ports associations, UKMPG and BPA, will be relocating to the Chamber building in the autumn. This will give rise to obvious practical opportunities to work with the ports groups even more closely – not least on training matters.

Richard Everitt said: “The One Voice initiative on top of the action we are already taking to develop co-working between ports and shipping sectors is, I believe, unparalleled elsewhere in Europe. I look forward to chairing the One Voice group over the next six months.”

 

Steamship Mutual support for Maritime London cadet
Maritime London cadet Gregory Taylor at SIMSL

The Maritime London Officer Cadet Scholarship (MLOCS) is a charity which provides the funds to enable young people to undertake the three to four year training required to become a Merchant Navy deck or engineer officer. Funding for the charity is provided by commercial companies from across the shipping services sector.

One supporter is Steamship Mutual. With finance from The Ship Safety Trust, the P&I club is currently sponsoring the training of a Maritime London navigating officer cadet. According to Steamship Mutual, the organisation supports the Maritime London scheme as it represents a positive move to address the current shortage of officers in the industry. The club also adds that with a requirement for its staff include individuals with the skills and experience gained from time served at sea, this sponsorship helps to preserve that pool of resources for the future.

The club's sponsored cadet, Gregory Taylor has recently completed Phase 3 of his training at Warsash, and visited the London office of Steamship Insurance Management Services (SIMSL), prior to embarking upon the next sea-going phase of his training.

For further details on the scheme and how to sponsor a cadet see www.maritimelondon.com/ml_cadet.htm.

Court cases concern

Shipping industry organisations have issued a vigorous joint protest at the “continuing unjust and unreasonable detention” of the master and mate of the tanker Hebei Spirit while concern is mounting over the jailing of a ship's master in Greece for alleged drugs offences. The Hebei Spirit officer were acquitted by a South Korean court recently of all charges of violating the nation’s ocean pollution law, following last year’s oil spill when a floating crane collided with the Hebei Spirit. However they have not been allowed to leave the country because the because the prosecution has appealed against the acquittals.

Hebei Spirit
Hebei Spirit case causes concern

The statement reads: “We - the Round Table of international shipping associations (Bimco, International Chamber of Shipping (ICS), International Shipping Federation (ISF), Intercargo and Intertanko), the International Transport Workers’ Federation (ITF), the International Group of P&I Clubs (IG), and the Hong Kong Shipowners’ Association - wish to convey to the government and authorities of the Republic of Korea our surprise, disappointment and great concern at the news that Korea’s courts have determined to continue to detain the ship’s officers, despite their acquittal, for possibly as long a year pending further hearings. Such measures appear to be unjustified, unreasonable and in contravention of the men’s rights. We strongly believe that they should be permitted to leave the country.”

Meanwhile industry concern is growing over guilty verdict and 14-year jail sentence on the master of the reefer vessel Coral Sea, Kristo Laptalo. Capt Laptalo, a Croatian national, was arrested over a year ago after the Greek coast guard found 51 kilograms of cocaine in boxes of bananas being discharged. He was also fined Euro 200,000.

The arrest, trial and conviction of Laptalo, who was indicted has attracted considerable attention in Croatia. Croatian diplomats attend the trial and afterwards the country's foreign ministry issued a statement saying it could not comment on the verdict “because the ruling is not final” but it added that it would continue to provide Capt Laptalo with consular protectionist said would also assist him in other ways, in accordance with the Vienna Convention on Consular Relations and other international regulations.

Capt Laptalo has already spent over a year in detention and the trial has been postponed twice. The International Transport Workers Federation described the verdict as “unexpected and impossible to reconcile with all the evidence heard in court which pointed to his innocence.”

International Transport Workers' Federation general secretary David Cockroft said: “This is not a proud day for Greek justice. There is more than a whiff of scapegoating about this verdict, which will take anyone who has followed the case by surprise. Despite the lack of any evidence linking the Captain to the drugs discovered hidden on the Coral Sea he has been sentenced to 14 years for no better reason than conjecture and guilt by association. Everyone involved will be saddened that it will now take more time in custody and a legal appeal to establish his innocence.”

ITF Maritime Coordinator Steve Cotton says that the manner of the trial has caused real concern among Greek legal observers.

Mr Cotton reported: “What I’m hearing here backs up the opinion of our observers that the way the trial was conducted was fatally flawed. It was rushed, it was wholly lacking in any hard evidence, and it relied in the end on an argument – that the master is guilty because even though he perhaps didn’t know about the drugs he probably should have – that has no precedent in the Greek Code of Penal Procedure.”

He added: “The ITF acknowledges the efforts of the ship’s owner to defend the Captain and his colleagues, two of whom were cleared – even though obstacles seem to be being put in the way of their leaving the country. We want more action to protect innocent seafarers. If we as an industry cannot get this situation under control then the current crew shortage will turn into a famine.”

Spinnaker advert

 

Lloyd's Register hails “safer, more robust” tanker

Lloyd's Register has classed the world’s first tanker built to Common Structural Rules (CSR) for the Dubai-based, ETA Star Group. To mark the delivery, John Curley, Lloyd's Register EMEA’s senior vice president, marine presented a certificate to Syed M. Salahuddin, managing director of ETA Star Group at a recent event in Dubai.

At the presentation ceremony, Mr Curley said, “Lloyd’s Register is honoured to have delivered the first CSR tanker into the ETA fleet. This certificate presentation is a significant milestone in the development of CSR tankers.”

The Common Structural Rules for tankers and bulk carriers, based on global best technical practice and aimed at creating a new generation of more robust and safer ships, were unanimously adopted by the International Association of Classification Societies (IACS) Council for implementation on 1 April , 2006.

ETA director, Ahmad Al Ghurair, said: “Shipping is, undoubtedly, among the more dynamic industries, which requires ship owners and operators to be proactive and come forward to ensure compliance with international rules and regulations. We are committed to upgrading and maintaining our fleet to meeting the highest standards of the industry.”

Abu Dhabi Star is the first of four CSR tankers to be delivered to the ETA Star Group by STX. The group already operates and manages a fleet of 35 oil tankers and bulk carriers, and has a newbuilding order book for a further 40 ships, equivalent to 3.7m dwt.

 

Draught survey caution

The North of England P&I club has warned its members to keep a closer watch on draught surveys to avoid costly cargo shortage claims.

Tony Baker, head of the club’s loss-prevention department: “We have recently witnessed a number of incidents where draught surveys have been manipulated to show short delivery of bulk cargoes. Some of the resulting shortage claims have involved large sums of money, particularly as the values of some cargoes have risen dramatically in recent months.” In the latest issue of its loss-prevention newsletter Signals, the club says masters in some regions are being asked to stamp and sign initial draught figures in such a way that allows a third party to falsify final draught results.

“Subsequent allegations of shortage are then difficult to defend as they are supported by a signed and stamped draught survey, showing the master’s apparent acknowledgement of final draughts at the load port,” says risk-management executive Andrew Glen.

The club advises masters to place their signatures immediately adjacent initial draught survey figures and add the remark ‘for initial draught survey’. According to the club this should ensure that final draught results are subsequently re-submitted for signature. North of England has also warned its members not to accept third-party surveys commissioned by shippers rather than conducting their own surveys. “It is the master’s responsibility to ensure figures submitted by the shipper are a true reflection of the cargo loaded and discharged,’ says Mr Baker.

He notes: “Article III, rule 3 of the Hague Visby Rules places an obligation on carriers to confirm that the figures declared on the bills of lading are a true representation of the cargo carried on board.”

The Meeting House advert

New claims directors for Aon

Two specialist claims directors have been named to Maritime London member Aon’s marine operation. Gordon Brown will manage hull and liability claims from London whilst Robert Dobson, who will work from London and Aon’s regional offices in the United Kingdom, will head claims management in cargo and logistics liability.

Dobson is former European marine claims manager for Chubb Insurance Co. Brown was marine claims manager for Hiscox.

“Aon has achieved considerable success in using electronic claims files and now Robert and Gordon are the ones to continue this drive in marine,” said Peter Dobbs, chairman of Aon’s marine team, in a statement. “It means we can be more efficient in our processes so more time can be spent on complex claims face to face.”

 

Clyde & Co advises on major port expansion in Yemen

International law firm and Maritime London member Clyde & Co has advised the Yemen Gulf of Aden Port Corporation on a significant joint venture with DP World that is set to establish Aden as a key trans-shipment cargo port in the region and will further develop the port as a domestic cargo gateway for Yemen.

The joint venture to operate, manage and develop the container terminal facilities at the Port of Aden includes the lease of both Aden Container Terminal and of nearby Ma'alla Container Terminal, and a commitment by the joint venture to make an initial investment of $200m in further developing the port.

The Yemen Gulf of Aden Port Corporation is an entity owned by the Government of Yemen, while Dubai headquartered DP World is one of the largest marine terminal operators in the world, with 45 terminals and 13 new developments across 29 countries.

The Gulf of Aden itself is a deepwater basin running between Yemen and Somalia and is a part of the important commercial shipping route from the Indian Ocean to the Mediterranean Sea by the Suez Canal. Clyde & Co's Middle East and London offices advised on the transaction, including negotiating the joint venture agreement, the lease, port services agreement and management services agreements.

The core advisory team consisted of partners David Bennet and Andrew Watson, based in London and Abu Dhabi respectively, assisted by Dubai based associate Mansi Kochhar.

 

UK firms bid for Panama Canal contracts

 

Panama Canal
The Panama Canal

Two UK-based firms are among five bidding provide consulting services for three contracts supporting the Panama Canal expansion programme. The Panama Canal Authority (ACP) says it will “thoroughly review the submissions and a winner will be announced in the coming weeks”.

The ACP has published the quotes which range between less than US$1m and over US$3m. The bids are: Jardine Lloyd Thompson, UK, $1.86m; Arthur Gallagher, US, $3.66m; Willis, UK; $0.69m, Marsh USA, $0.83m and AON Global, Mexico, $1.17m.

“The first step in identifying the best insurance plan for the remaining expansion projects is to choose a knowledgeable and experienced advisor with a competitive price,” said ACP contracts administration manager for engineering and program management Francisco Miguez. “We’ve received bids from some of the industry’s best and look forward to beginning a successful partnership to continue the ACP’s progress in expanding our waterway.”

The chosen firm will assist the ACP in obtaining construction risk policy and general liability insurance coverage for the new locks and the fourth and fifth dry excavation projects of the new Pacific locks access channel. This channel will link the new third set of locks on the Pacific end of the Canal with the existing Gaillard Cut, the waterway's narrowest stretch.

 

Surveying seminar

Two London-based speakers, Zareena Hussain of British Marine Insurance and Peter Morgan of Lithgow Associates, will be addressing a a one-day seminar, ‘Keeping Up with the Future’, in Hamburg on 10 September.

The International Institute of Marine Surveying has arranged a variety of speakers from around Europe with an “eclectic mix” of critical issues relevant to marine surveying will being debated.

Coming under the microscope will be cargo loss and fraud, infra-red imaging for fault finding, problems associated with marine tank inspection, pre-purchase surveys of cargo vessels, and whether corrosion protection is improved by international coating standards.

The seminar will be held on board the Cap San Diego which is moored at Überseebrücke. The cost for the day will be Euro 125, including lunch, and there will be a pre-seminar dinner the evening before at a cost of Euro 50.

For further information see www.iims.org.uk.

 

Raising funds for Sierra Leone

Tony Foster, managing director of Marine Capital is seeking industry colleagues to participate in the London triathlon on 9 - 10 August to raise money for global charity Concern Worldwide, with which he is connected.

The Bank of Scotland, JLT Group, and Ince & Co are among the companies that have already committed to participation.

Money raised will go towards Concern's Progress 2008 projects in Sierra Leone, which will help impoverished locals regenerate their livelihoods after years of civil war. This includes installing water pumps for clean water, rebuilding schools, and planting perennial crops to combat famine. Readers can either enter their own team or donate to Progress 2008 directly.

For more information, contact Matthew Foster at MCL tel: +44 (0)20 7898 9335), or download a copy of the application form.