Ban Ki-moon to focus on UN's response to piracy

Next week sees the launch of an action plan at IMO’s London headquarters to promote the 2011 World Maritime Day theme “Piracy: orchestrating the response.”

The launch will include speeches by UN secretary general Ban Ki-moon, IMO’s secretary general Efthimios E. Mitropoulos as well as the executive directors of the World Food Programme, United Nations Office on Drugs and Crime. Shipowners’ organistation BIMCO is sending its president Robert Lorenz-Meyer to address the meeting and David Cockroft, secretary general of the International Transport Workers’ Federation will also be present.

The International Maritime Bureau's (IMB) latest annual report shows that more people were taken hostage at sea in 2010 than in any year on record. Pirates captured 1,181 seafarers and killed eight during the year, and a total of 53 ships were hijacked. The number of pirate attacks against ships has risen every year for the last four years, the IMB revealed. Ships reported 445 attacks in 2010, up 10% from 2009. While 188 crew members were taken hostage in 2006, 1,050 were taken in 2009 and 1,181 in 2010.

At the same time, naval commanders and security experts warn that Somali pirates are becoming more aggressive, and are using captured merchant vessels and their crews as ‘motherships’ to extend the range of their operations.

On Friday South Korean commandos stormed the hijacked chemical carrier Samho Jewelry and rescued 21 crew members. Eight Somali pirates were killed and the five captured in the rescue operation by the anti-piracy commando unit, which has been deployed as part of a joint international campaign since 2009.

UK seafarers union and Maritime London member Nautilus is seeking a meeting with UK government ministers. Nautilus general secretary Mark Dickinson has written to Africa minister Henry Bellingham to voice concern about the ‘deeply disturbing’ developments. He said Nautilus is particularly concerned about the potential impact of defence expenditure reductions on the already limited ability of naval forces to protect merchant ships and their crews in the expanding danger area.

"I believe that it is important for the Foreign Office to reconvene discussions on these issues and to consider further initiatives that could be pursued to ameliorate the increasing threat to merchant ships and their crews," he added.

The next Maritime London networking lunch takes place at Ince & Co on 2 February and will focus on piracy. Open to Maritime London members and their guests. Contact Doug Barrow for further details. Email: dbarrow@maritimelondon.com

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UK Shipping Minister Mike Penning and Irish Minister for Transport Noel Dempsey have reached an agreement that will see aids to navigation off the coast of the Republic of Ireland wholly funded from domestic sources there by 2015-16. At the moment the Commissioners of Irish Lights (CIL) effectively receives a subsidy for its activities in the Republic of Ireland from levies paid by ships calling at UK ports. This is to be phased out.

The Chamber of Shipping has welcomed the move. Its director-general of the Chamber of Shipping, Mark Brownrigg, said: “The Chamber of Shipping is delighted by the abolition of the costly subsidy of Irish Lights – a move that will provide a saving of GBP12m a year. The Shipping Minister has personally committed a great deal of energy to the cause and we congratulate him on his success.”

He added: “The Prime Minister has repeatedly said that he wants to encourage the international community to increase its trade with the UK. We hope that the removal of this subsidy will act as a precursor to an overall reduction in Light Dues paid by shipowners, making the UK a more competitive place with which to do business.“

The two ministers also confirmed their support for the existing structure of three General Lighthouse Authorities, comprising the Northern Lighthouse Board (in Scotland and the Isle of Man), Trinity House (in England and Wales) and the Commissioners of Irish Lights (for the whole island of Ireland). A further agreement was reached to share all relevant information on light dues charging to assist the CIL in their transition to self-sufficiency.

Mr Penning said: "The safety of all who sail round our coasts is paramount and aids to navigation play a crucial role in keeping our waters safe. I am grateful to my Irish counterpart for his understanding of the concerns of those who pay light dues in the UK, and this agreement will enable us to continue our support for the UK shipping industry, while ensuring the future of the all-Ireland Commissioners of Irish Lights."

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Maritime London member Lloyd's Register says its teams in China and Korea have established a strong position in terms of ships ordered in 2010 which will be built to Lloyd’s Register class. Lloyd’s Register’s share of 2010 orders is, respectively, 29.6% in China and 28.3% in Korea. The classification society says that, while orders are from traditional areas of strength such as Greece, the continued expansion of shipowning in Asia is also driving demand.

“It’s been an exciting year,” said Nick Brown, Marine Country Manager, China. “We have made a huge investment in China and have developed innovative services to support Chinese shipbuilders and both Chinese and international owners building in China. We have been listening to yards and owners and providing the services that they need. It’s very rewarding to see the market recognising this investment and placing their trust in Lloyd's Register in China.”

In their annual survey LR was recognised as the leading classification society by the Korean Shipbuilders’ Association (KOSHIPA). Country manager in Korea, Luis Benito: “We are doing all that we can to help ensure consistent, safe, service delivery and we see this recognition as a great honour – as well as a reflection of the hard work put in by our teams to support Korean newbuilding projects.”

LR stresses that its training programme is also important. A third wave of delegates graduated last September from LR's 25 week intensive programme at the Marine Surveyor Training Institute (MSTI) in Shanghai.

The MSTI’s innovative programme provides a highly structured approach to technical training and is the bedrock of ongoing staff development, comprising training in corporate values and ethics and interpersonal skills as well as technical aspects under the mentorship of dedicated MSTI instructors. The MSTI graduates are now in the field putting their knowledge to good use.

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Steamship Mutual P&I Club has warned its members against calling at ports in Cote D’Ivoire. The club has issued a circular to its members on the recently implemented EU measures to widen the scope of sanctions imposed on a number of individuals, entities and bodies. UN Security Council Resolution 1572 was adopted on 15 November 2004, introducing financial sanctions against persons designated by the UN Sanctions Committee as being a threat to democracy in Cote D’Ivoire.

The latest EU regulation imposes wider restrictions, including an asset freeze, on persons, entities and bodies who are considered to be obstructing democracy and interfering with the proper outcome of elections in the Ivory Coast.

The Regulation has immediate effect upon all natural persons and legal persons, entities and bodies that are nationals of, or are incorporated or constituted under the law of an EU member state, or are doing business within the EU. The circular warns that, as well as prohibitions on certain other bodies and individuals, it is probable that the use of the ports of Abidjan and San Pedro could amount to a breach of EU sanctions if that involves payments to the port authorities.

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Specialist mutual insurer International Transport Intermediaries Club (ITIC) has warned its members about the potential pitfalls associated with entering into Master Service Agreements (MSA) with their clients.

ITIC has warned its clients that MSAs must be read carefully prior to signing, and a full understanding established of which companies in the group are potentially bound by its terms and conditions. It points out that such agreements do not have to be signed by the parent company or head office in order for them to be binding on all offices, subsidiaries and affiliated companies within a group, and adds that signing them without first carefully studying their terms and conditions may unwittingly bind an entire organisation to the MSA.

An MSA is frequently used when two companies engage in a long-term relationship involving a number of projects. The MSA will usually provide general terms covering the contractual relationship between the parties. There may also be separate agreements and negotiating provisions covering individual projects involving the same clients and, in the event of there being a clash between such agreements and the MSA, it is usual for the MSA to take precedence unless specifically agreed otherwise.

ITIC cites a recent case where a US subsidiary of a UK company, as a contractor, signed an MSA with a US-based client which bound the contractor, including all its ‘subsidiary and affiliated companies’. This meant that all the contractor’s offices worldwide, including the UK head office and all subsidiary and affiliated companies, were bound by the terms agreed in the MSA. These included provision for US jurisdiction and unlimited liability, and stipulated that the terms of the MSA would take precedence over any subsequent verbal or written work orders.

The claim involved an overseas affiliated company of the contractor entering into a specific transaction with the client. The overseas affiliate had no knowledge of the MSA and provided a quotation which, it thought, was subject to its own standard trading conditions. These trading conditions limited its liability to USD1m and provided that any dispute would be subject to English law.

However, when a dispute arose, the MSA’s existence was revealed, whereupon the overseas affiliate found itself named as a defendant in US proceedings in which the client was claiming more than USD45m. The overseas affiliate had never seen the MSA and did not know of its existence. Furthermore, the US subsidiary which signed the MSA was also surprised to be named in the claim, as this was the first it knew about the job that was undertaken for the client by the overseas affiliate.

The final claim was settled well below the claimed amount, but for a sum well in excess of the $1 million limit of liability which the company had originally thought was in place.

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Tougher line is being taken with seafarers entering UK

A half-day seminar on current UK immigration issues affecting seafarers is to be held at the Chamber of Shipping on 17 February. Natasha Gya Williams of Nicholas Moore Specialist Employment Lawyers will be the principal presenter.

Following the introduction of a points based system, which determines eligibility for work permits, the coalition government has pledged to cap immigration by imposing a limit on the number of workers allowed to enter the UK. The cap is soon to be implemented, in spite of concerns from employers’ groups, who believe that such moves will ultimately damage the UK economy by preventing employers from importing the skills that they need. Employers face heightened pressure to avoid employing illegal workers, as UKBA fines have increased to £10 000 for every worker found to be working illegally.

According to the Chamber, immigration officials from the UK Borders Agency (UKBA) have shown a willingness to take a tougher line with seafarers arriving in the UK to join ships. It says it has received reports from several member companies of seafarers being denied leave to join their ships, even where those ships are engaged in trades to which work permit restrictions do not apply.

Further problems have arisen because of an over-strict application of a guideline provided to UKBA officials, which states that a seafarer arriving in the UK to join a ship should leave the UK with that ship within seven days of his arrival. This has resulted in seafarers being refused entry into the UK to join ships operating on spot markets, based in the UK and undertaking frequent call outs into international waters, awaiting instructions in UK ports and even undergoing sea trials following refit. In some cases, the decisions are being taken by British Embassy staff in foreign capitals, with inadequate consultation with the UKBA officials.

Attendance for Chamber of Shipping Members is free of charge, for non members the seminar fee is £200 + VAT.

To book a place email pat.ruthven@british-shipping.org

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Sea Vision works to raise awareness of the maritime sector amongst 13-22 year olds

Sea Vision, a UK nationwide campaign working to raise awareness of the sea and the maritime sector with particular focus on the 13 to 22 year old age group, now has a full-time director. Ewen Macdonald has taken up this new position following a varied career in the Royal Navy.

Establishment of this post was made possible through the support of the Lloyd’s Register Educational Trust, an independent charity which funds advances in transportation, science, engineering and technology education, training, and research worldwide.

Mark Brownrigg, chairman of Sea Vision says: “We are delighted to see the much needed post of Director come into being, demonstrating our clear intent to ensure that our young people appreciate both the importance of the maritime sector to the UK economy and the wealth of career opportunities available to them. How many young people in this country realise that so much of what they take for granted for example: trainers, TVs, computers – arrive by ship? In fact, some 90 per cent of all of the goods in our shops! How many know how much the whole sector contributes to the UK economy? A whopping £55 billion every year, and 400,000 jobs! Awareness of the importance of the sea to the UK as an island nation is fundamental to the sector attracting the best talent from the rising generation, an absolute must in keeping UK at the forefront of a highly competitive and dynamic international maritime market.”

Sea Vision is a not-for-profit initiative, supported by more than 400 organisations, associations and businesses across the UK maritime sector – everything from conservation to leisure sailing to container ships and maritime museums.

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Promote your company to the international maritime market by listing your firm in the UK Maritime Services Directory 2011. Building on the success of the 2010 issue, the directory contains the contact details of professional international maritime service providers from around the UK.

• x5000 print distribution
• Online and emailed to x15,000
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Printed in a high quality 4 colour A4 format as well as available on-line, the directory will be published by maritime public relations firm Navigate PR in conjunction with Maritime London.

Sent to 3000 international shipping contacts and available online, the directory will also be distributed Norshipping 2011.

Companies featured in the directory will gain further exposure as the directory is distributed via high level Maritime London promotional roadshows in China.

The publication will not only contain contact details, but also editorial looking at the UK's maritime services scene and featuring commentary from leading players.

To book your paid for listing, please contact Will Bixby.

Tel: 020 7369 1650
Email: wbixby@navigatepr.com

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