daily collection of maritime press clippings 2015 –...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2015 – 003

Distribution : daily to 31800+ active addresses 03-01-2015

Number 003 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Saturday 03-01-2015

News reports received from readers and Internet News articles copied from various news sites.

HAL’s ZAANDAM disembarking the Chilean pilot at Cape Horn (the end of the world)

Photo : Willem Kappert (c)

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EVENTS, INCIDENTS & OPERATIONS

The tug TIGER 6 assisting the PRIDE OF AMERICA in Nawilliwilli-Kaua'i (Hawaii)

Photo : Albert Pool (c)

Nigeria: Piracy - JTF Nabs Five Suspects Over Death of Six Soldiers

The special team of the anti-kidnapping and sea robbery squad of the Joint Task Force Operation, code- named Operation Pulo Shield, has arrested five suspected sea pirates involved in the last week killing of six soldiers on duty along the Nembe waterways of the state. The six deceased soldiers were two days to Christmas, killed in separate attacks along Santa Barbara, a notorious river in Nembe, Nembe Local Government Area of the state.The bandits hijacked a military gunboat used by the victims to escort items from Port Harcourt, Rivers State, to Brass terminal owned by the Nigerian Agip Oil Company (NAOC). But the JTF, at a media briefing yesterday anchored by the Head of the Joint Media Centre of the Task Force, Col. Mustapha Anka, he said that five of the suspected killers of the soldiers were arrested during a sustained stop and search operations along the waterways and creeks of the state. Source : allafrica

The image taken by the drone of Wijk bij Duurstede in the newsclipping of 01-01-2015 was made by Willem Bol.

2014 was “The year of the Tanker”, Here’s to a Happy New Year for all

First of all, The Hellenic Shipping News Worldwide team would like to wish you all a Happy and Prosperous 2015! As 2014 leaves us, few can question that the past 12 months haven’t been a boon for tanker owners. According to a

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recent summary note from shipbroker Gibson, “geopolitics has certainly played a part with disruptions in Libya, ISIS in Iraq/Syria, protracted talks over Iran and the crisis in Crimea helping the oil price to peak at $116/bbI before falling to less than $60/bbl which is somewhat remarkable against a backdrop of such political instability”.The shipbroker noted that “OPEC ‘s decision to avoid cutting production has lent support to the tanker market despite slower oil demand growth. Whilst in the short term this is undoubtedly a positive for tankers, a persistently low oil price will discourage investment in higher cost fields. However, lower oil prices typically stimulate consumption and subsequent ta nker demand. Much was (and still is) said about floating storage, but the reality is that we just haven’t seen a wide enough contango structure to make tanker storage profitable. However, with a surplus of crude rapidly building, floating storage could make sense later in 2015 – a tantalising prospect for owners”.

The STENA PERROS navigating Algeciras Bay – Photo : Capt. Alex Castle ©

BUNKER EFFECT Gibson noted that “of course in the latter stages of this year owners have seen their earnings improve off the back of lower fuel costs. Bunker prices peaked to average $591/tonne (Rotterdam HSFO) in June but December to date averaged just $342/tonne. 2014 saw a strong start for the crude sector with TD3 (AG-Japan) averaging $35,000/day through January and February before softening to average $18,000/day over Q2/3. However Q4 failed to disappoint with earnings averaging $50,000/day for the period to date and VLCC earnings in excess of $80,000/day at the time of writing. On the whole, VLCC owners will end 2014 much better than 2013 with earnings averaging in the region of $29,000/day —the highest annual average since 2010. Suezmaxes we re able to achieve TCE eamings of $25,500/day over the course of the year, levels not seen since 2008 — prompting much attention to the sector as can been seen from the 48 orders placed this year. Aframaxes benefitted from a volatile market and subsequently earnings surged to average $24,500/day in part thanks to earnings of nearly $80,000/day in January”, the shipbroker said.

The RHONESTERN inbound IJmuiden locks for Amsterdam.

Photo : Lourens Visser © www.navcom.org

PRODUCT TANKER MARKET In the product market, Gibson said that “at times the product sector has been less inspiring, and sentiment has shifted towards the crude sector. MRs suffered throughout the year as growing fleet supply continued to impact upon earnings. 2/1C14 (UK Cont-USAC /USG -UK Cont) triangulation earnings struggled to average $11,500/day in Q1-Q3. However owners were able to achieve triangulation earnings of $29,000/day in the final quarter. LRs took a while to get going but were not as a sluggish as the MRs. LR2s trading between the Middle East Gulf and Japan earned just $11,000/day in the first half of 2014, but achieved $24,500 in the second half. The story was similar for LR1s which

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also achieved $11,000/day in the first half and generating better returns of $19,500/day for the second half of the year. These rate improvements mean LR1s/LR2s earnings are the highest since 2008 yet many owners will still require higher levels to breakeven on their investments”.

The RAY G outbound from Malta – Photo : Michael Cassar (c)

CRUDE TANKERS Finally, in the crude tanker markets, Gibson said that “overall crude tanker supply growth slowed in 2014 with VLCC deliveries outstripping scrapping/conversions to see year end fleet growth of 12 vessels. By comparison the Suezmax fleet grew by just 3 vessels, Aframax/LR2s contracted by 7 vessels and Pa na max/LR2s by 5. Of course the story is significantly different with MR/Ha ndies where supply grew by 79 vessels and a heavy orderbook set to deliver over the next 2/3 years. Tanker orders have been significantly lower at 172 units at the time of writing, down from 336 a year prior. Suezmaxes received the greatest attention with 48 units booked, VLCC ordering activity declined slightly to 38 orders. Aframax/LR2 orders declined significantly over 2013, with just 21 orders placed (coated/non coated) down from 63a year r ea rlier. I seems hard to believe that in 2013 not one owner pulled the trigger on LR1/Panamax orders and is therefore little surprise to see 27 orders make the cut this year. Fortunately MR ordering has nosedived this year following the realisation that 225 orders in 2013 was more than ample, subsequently we have seen just 38 orders placed for 2014. Looking ahead the theme of compliance continues.Owners will be faced with the challenge of complying with emission control regulations fro the 1st of January 2015. Additionally the ballast water management convention may finally be ratified in 2015, meaning it would enter in to force 12 months later-another significant cost for vessels without ballast water treatment facilities already on board”, Gibson concluded. Source : Nikos Roussanoglou, Hellenic Shipping News Worldwide

India: Shipping sector eyes major policy change in 2015

If Nitin Gadkari keeps his word, 2015 will see solid policy support to the shipping and port sector. Income Tax exemption to seafarers, cargo support to Indian flag-carriers, duty free-bunker to coastal shipping, incentives to shipyards and de-regulation of port tariff are among a host of promises he made from the time he took over as Shipping Minister.Expectations are that some of these measures may be announced during the upcoming Budget

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session.As 2014 draws to a close, captains of the industry are pinning hopes on policy support at home that could ease their life in the current challenging global market environment. The prospects of a significant pick up in ocean freight seem to be dim. Countries like Russia, Japan and China are facing economic slowdown. Rates for hauling dry bulk cargo such as iron ore, coal and grains have been under tremendous pressure for the past couple of months. The Baltic Index, the barometer of commodity freight, plunged to 782 points on December 24, from over 1,100 points in September. An immediate recovery seems unlikely in the coming days. Tanker rates have improved, but analysts are not sure whether the uptrend will sustain for long, though they expect supply pressure to ease with lesser number of new deliveries in the next year. Crude price Fall in crude price may be another positive factor. The bunker cost, which accounts for about 40 per cent of shipping lines’ operating expenses, fell sharply in recent months. However, a major worry for ship-owners is compliance with the new sulphur emission norms, coming into force from January 1. As per this regulation, all ocean-going vessels passing within the Emission Control Areas (including the English Channel, Baltic Sea, North Sea, North American and US Caribbean Sea areas) must use fuel oil with less than 0.1 per cent sulphur. Ship owners will have to incur additional cost. Either they have to mix fuel oil with gas oil or refit their vessels with new equipments to comply with the regulation.Ships operating in the Far East and Middle East routes will not be affected by the new regulation. However, they will have to gradually prepare for adhering to ‘green shipping’ norms which will become applicable in the future globally.Some of the reforms the Minister promised to introduce are crucial for domestic shipping lines to become globally competitive. It is a pity that Indian ships currently carry less than 10 per cent of the country’s own international cargo. Mounting difficulties Last year the country imported about 185 million tonnes of crude, but only 13 per of which was carried by Indian ships. The shipping ministry should take up the proposed hydrocarbon transportation policy with the Petroleum Ministry. Indian shipping tonnage has been stagnating around one million grt. Though ship prices have become attractive, Indian owners find it difficult to raise funds to buy them.One of the first things the Minister wanted to do was to encourage coastal shipping and inland water transport. Though he took the initiative, nothing much was done to divert more cargo to this economical and eco-friendly mode of transport.The Shipping Ministry spent a lot of time and energy to remove the discrepancy in the tariff regulations that has been stifling efficiency and growth in government ports, but it is yet to succeed. And TAMP, the tariff regulator, continues to follow the same old guidelines to fix the rates.Source: Hindu Business Line

December 31st the tug ZEUS arrived with the hull of a FCS/Damen Stan Patrol YN 549303 for Damen shipyards in Gorinchem. Photo : R&F van der Hoek- LEKKO (c)

Panama Canal expansion will allow transit of larger ships with greater volumes

Ships carrying crude oil and petroleum products are limited by size restrictions imposed by several of the main thoroughfares of maritime navigation: the Panama Canal, the Suez Canal, and the Strait of Malacca. These size restrictions provide another way to classify the large tankers that carry most of global crude oil and petroleum product trade.The Panama Canal, an important route connecting the Pacific Ocean to the Caribbean Sea and the Atlantic Ocean, currently has a limited role in global crude and petroleum product transport. The canal’s current size restrictions means smaller vessels, with capacities of approximately 400,000-550,000 barrels of light sweet crude oil,



are the only ships that can safely pass through the canal. These ships are referred to as Panamax tankers, and their smaller cargos lead to a higher per-barrel cost.However, the Panama Canal is undergoing an expansion that will allow for the passage of larger vessels with capacities of approximately 400,000-680,000 barrels of crude oil. These larger tankers have the potential to increase crude and petroleum product transport through the canal. Larger vessels or vessels that are slightly over the draft limit can use the Trans Panama Pipeline, which runs parallel to the canal and has both the loading and unloading points for a complete transfer, but doing so adds to shipment costs. In addition to oil transit, the expansion of the Panama Canal, now slated for late 2015, will be able to provide passage for up to 80% of global shipping of liquefied natural gas (LNG). It currently allows passage of only a small percentage of LNG shipping and only shipping by the smallest of LNG tankers. The Suez Canal in Egypt is a major transit route from the Persian Gulf to the Mediterranean and beyond that to North America. The Suez Canal saves an estimated 6,000 miles of travel around the Cape of Good Hope at the southernmost point of Africa. As the sizes of vessels in the global fleet have increased, the canal was deepened and widened. The current Suezmax limitation on vessels passing through the Suez is a draft of 66 feet and a width of 164 feet. A ship of this size has a deadweight tonnage of approximately 900,000 barrels to 1.3 million barrels. However, most vessels do not transit the canal fully laden; vessels instead unload into the Suez-Mediterranean (Sumed) Pipeline, which runs parallel to the canal, prior to transit and reload once having passed through the canal.The Strait of Malacca, located between Indonesia, Malaysia, and Singapore, links the Indian Ocean to the South China Sea and Pacific Ocean. The Strait of Malacca is the shortest sea route between Persian Gulf suppliers and the markets of Asia. However, the size of vessels that can safely navigate the strait (Malaccamax) is limited to a draft of 82 feet, along with length and width restrictions. This is approximately equal to a vessel classified as a Very Large Crude Carrier (VLCC), with a capacity of 1.9-2.2 million barrels of crude oil. Larger vessels, such as Ultra-Large Crude Carriers (ULCC), must use alternative navigation routes with deeper channels, adding time and cost to the voyage. Source: EIA

The last tow of the year 2014 into Rotterdam, the tug MSC ALIX arrived with the Wagenborg owned

accommodation barge ROSSINI in Rotterdam Photo : Leen van der Meijden (c)

Containerships With 24000 TEU Possible But Ship Size Approaching Limits

DNV GL’s latest Container Ship Forum and Bulk Carrier Forum looked at a broad spectrum of topics including environmental regulations, trends in ship design as well as the new DNV GL rule set. Some 150 representatives from the container and bulk industry met with DNV GL experts at the forums in Hamburg to hear the presentations and participate in informal discussions.As economy of scale is reducing transportation costs per box, the demand for ever

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bigger vessels is continuing. Business director Jost Bergmann said that in the near future it would be possible to build ultra-large containerships with a capacity of 24,000 TEU. Based on a current 19,000 TEU vessel design, these ships could be one hold longer, two rows wider, and one hold tier higher.

Due to stability factors and steel thickness requirements, it is easier to increase the beam than to increase the length. But besides coping with higher acceleration and gravitational forces, ultra-large wide-beam vessels would also be constrained by port and seaways limitations, such as crane outreach and drafts. In the Suez Canal, for example, restrictions for the ship’s cross-sectional area are leading to a permissible draft of only 15 meter for a 65 meter beam. This may be an acceptable design draft, Bergmann explained, but the scantling draft would be higher. Further height constraints could apply due to bridges in ports such as Hong Kong, Hamburg or Osaka. “We are slowly approaching limits in ship size development,” Bergmann therefore concluded.

Marcus Ihms, DNV GL’s ship type expert for container vessels, explained the advantages of Route Specific Container Stowage (RSCS). This new approach to determining accelerations on containers enables shipowners and operators to increase their vessel’s performance by better accounting for a ship’s individual characteristics and considering individual trade patterns, including weather conditions en route. “RSCS is not just a trend, it has become an industry standard,” Ihms said. “The respective notation has been available since May 2013 and we have already approved lashing computers and stowage plans for 411 ships,” he added. DNV GL expects this number to almost double by the end of 2015. Ihms also explained the advantages of StowLash, a free of charge tailor-made calculation tool for the verification of container securing on deck and in hold. StowLash also considers external lashing and twistlock clearance.

The pressures of the new regulation for Sulphur Emission Control Areas (SECAs) are already being felt – they come into force on the 1st of January 2015. Jörg Lampe, senior project engineer risk & safety and systems engineering at DNV GL, provided an overview of the rules set by the International Maritime Organisation. At the moment switching from heavy fuel oil (HFO) to marine gas oil (MGO) is the most feasible option to achieve compliance. As this procedure poses several challenges, DNV GL developed a Fuel Change-Over Calculator that can help customers determine the optimal lead time for switching to MGO. The tool takes fuel specification, consumption of machinery, fuel system layout and temperature change constraints into account. It increases both safety and efficiency during the change-over procedure.

Wolf Rehder of Veritas Petroleum Services gave an overview of new low sulphur fuel products that have recently entered the market. They are approximately 20 to 50 USD cheaper than MGO and claim to be compliant with the new sulphur limitations in SECAs. However, shipowners and operators still need to take issues such as microbiological contamination, flash points and lubricity into account when using low sulphur products.

Another pressing regulatory issue is ballast water management (BWM). “Due to ballast water shipping is the most important source of marine invasive species which currently create approximately seven billion Euros of losses to the global economy each year,” said Ralf Plump, ship emissions and environmental R&D expert at DNV GL. He gave an update about the current legal framework on IMO level, outlined the special circumstances in US waters, which are caused by US Coast Guard regulations, and talked about the potential changes that may occur in the future. The IMO Ballast Water Management Convention has been signed by 43 countries. That adds up to about 32,54% of the world’s fleet – the target is 35%. Important global players such as Panama, Greece or China are still holding back, but Italy and Indonesia have informed the IMO that they will sign the convention shortly, which would be enough to reach the target. To date, 53 ballast water management systems have obtained full IMO type approval.3DNV GL’s Bulker expert Sönke Pohl emphasized the value of vetting schemes for dry cargo vessels and explained which factors are vital to assessing the quality of a ship. Ship vetting is a risk assessment process carried out by charterers and terminal operators to determine whether a ship is suitable to be chartered. “This can be a very reliable risk management tool, but unlike certification or classification, vetting is a private, voluntary system that operators may opt to use,” he said. DNV GL’s condition assessment programme (CAP) is already well established within the tanker industry and could also improve risk assessment in the bulker sector. It examines the ballast tanks, cargo holds, machinery and the cargo system in depth – rating the quality of the vessel in a comprehensive, reliable way and calculating its strength.

Finally, Holger Jeffries, program manager class development at DNV GL, spoke about the new rule set that is due to be published in July 2015 and will come into force in January 2016. “It will be a comprehensive rule set that is easy and intuitive to use. Ship type rules summarize requirements specific to ship types and additional class notations are grouped to make them more transparent,” he explained. Ship managers are welcomed to interact in technical working groups, participate in hearings and take part in trainings for rules and tools during the implementation process. Source : Marine insight / Reference: dnvgl.com



The first large MAERSK containervessel, the 1996 built MAERSK KARLSKRONA arrived December 31st at the new APM Terminal at Maasvlakte II , the MAERSK KARLSKRONA is scheduled to stay at the terminal until January 20th to resume service again and to sail to Antwerp. Photo : Jan Oosterboer ©

Second 19100TEU Container Ship – CSCL Pacific Ocean Delivered

On Dec. 19th 2014, China Shipping (Group) Company and Hyundai Heavy Industries co-held a new vessel naming and delivery ceremony in Ulsan, Korea to celebrate the formal operation of the second 19100TEU container ship CSCL PACIFIC OCEAN. China Shipping vice president Yu Zenggang and Hyundai Heavy Industries representatives attended the ceremony. Hyundai Heavy Industries vice president M.K.Yoon made the welcome speech on the ceremony, CS vice president Yu Zenggang

also made a speech. CSCL vice president Feng Xingguo rewarded 5 excellent employees on behalf of the ship owner.

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China Shipping former president Li Kelin were also invited to the ceremony. After its delivery, CSCL PACIFIC OCEAN will sail out immediately and, together with CSCL GLOBE, join the Far East—Europe route to provide high-quality logistic service for cargo owners and further enhance the service ability and brand influence of China Shipping. Source : Marine Insight / CN Shipping

The DEEP PIONEER offshore Angola. Photo : Capt.Peter Lankester. Master DP3 AWB Lancelot ©

Is Carnival Cruise Lines about to change its name?

Add name confusion to the list of issues at cruise giant Carnival.

Since its first sailings in 1972, the brand has been known officially as Carnival Cruise Lines. But in recent weeks, the name Carnival Cruise Line (singular) has been popping up in some -- though not all – company communications.

While there has been no official announcement of a name change, parent company Carnival Corp. & plc refers to "Carnival Cruise Line" in a Dec. 17 press release about a new CEO. Ditto a Dec. 19 missive about a new ship order. Still, a separate announcement the same day about company earnings falls back on "Carnival Cruise Lines," and Carnival's brand and parent company websites show no sign of a switch.

So which is it? For now, apparently, both.

When asked about the discrepancy, a Carnival spokesman says that, indeed, a name change is in the works. But it's not happening overnight."Yes, we are gradually changing the name to Carnival Cruise Line(singular)," spokesman Vance Gulliksen tells USA TODAY. "This is agradual change that is more closely tied to how Carnival Corp. & plc refers to its other brands." Source : USAtoday

The MAERSK LEBU outbound at the Westerschelde – Photo : Walter de Groot ©

Revitalised Freight Services and a New Container Ship for Box Line African Intermodal and Logistics Coverage 'More Comprehensive'



Despite the tendency to harmonise freight services with other container lines there is still room for shipping lines to go it alone as evidenced by CMA CGM’s latest news. The French box carrier has announced details of its rejuvenated EURAF 1 and EURAF 2 services which will see twelve of the company’s 2,600 and 3,500 TEU vessels serving Africa from Western Europe in a move it says will enable customers to utilise the group’s bespoke intermodal solutions and logistics expertise throughout the continent.

The services will offer two weekly services from Europe and the Mediterranean to Africa instead of one, which CMA CGM says will improve reliability and punctuality, with a new calls distribution between the different EURAF services and strategic calls in Hamburg and London Gateway ports to Nigeria, Ghana, Ivory Coast and Senegal, and two weekly calls in Antwerp.

The EURAF 1 service will deploy six 3,500 TEU vessels on the following direct weekly rotation: Dunkirk, Antwerp, Le Havre, Montoir, Tangiers, Dakar, Abidjan, Dakar, Tangiers and Dunkirk. The first voyage will start from Dunkirk, on 22 January 2015, on the CS DISCOVERY

The EURAF 2 service will also deploy six 2,600 TEU vessels on the following direct weekly rotation: Antwerp, Hamburg, London Gateway, Tangiers, TinCan, Tema, Abidjan and Antwerp. The first voyage will start from Antwerp, on 25 January 2015, on the MV FRISIA HELSINKI

CMA CGM is also not standing still when it comes to a vessel replacement programme, on 22 December 2014 the company received delivery of the CMA CGM TIGRIS, destined to be a chartered bareboat sailing under the Maltese flag, and, like her sister ship the CMA CGM Litani, the result of collaboration between the Chinese shipyards NTS (New Times Shipbuilding’s, Jiangsu Province, People’s Republic of China), CIMC group and the CMA CGM Group staff who said the vessel, built within 10 months of her keel being laid, and delivered on-time, showed once again the proficiency of the NTS shipyards.

The CMA CGM TIGRIS , latest in the French lines ‘River’ series, is equipped with all the latest environmental technologies to significantly reduce CO2 emissions, and will operate the SEAS trade on the following rotation: Shanghai, Ningbo, Yantian, Hong Kong, Singapore, Santos, Paranagua, Buenos Aires, Montevideo, Rio Grande, Paranagua, Singapore, Hong Kong, Shanghai. Source : handyshippingguide

The NEWCASTLE MAX moored in IJmuiden – Photo : Erwin Willemse ©

Doyle gives thumbs up to Ocean Three-Hanjin vessel sharing pact

Federal Maritime Commission (FMC) member William Doyle cast his vote to allow a vessel sharing and slot charter agreement between members Ocean Three Alliance members and Hanjin Shipping.

The agreement, which is set to go into effect on 2 January, covers trades between the United Arab Emirates, Pakistan, India, Saudi Arabia, Egypt, France, Spain, Morocco and the US east coast with up to 15 containerships of up to 9,500 teu.



In addition to teaming up Hanjin of South Korea with the grouping made up of France’s CMA CGM, United Arab Shipping Co (UASC) and China Shipping Container Lines (CSCL), the deal adds the ports of Miami, Mundra and Livorno to the existing rotation, among other changes. Doyle voted for the FMC to take no action.“At this time it appears that the agreement is not likely, through a reduction in competition, to result in an unreasonable increase in transportation service or an unreasonable increase in transportation costs,” he said. Under the initial 11-ship rotation of the new agreement, UASC will provide seven vessels, CMA-CGM will provide two, and CSCL and Hanjin will each provide one containership.The ships will have nominal capacity of 6,500 teu.Doyle was the only member of the five-person FMC to broadcast his vote publicly. Source : Tradewinds

MSC REBECCA arriving at the Lyttelton container terminal Photo : Alan Calvert (c)

Shipping industry already shaping up to help environment

The excellent graphic "A heavy toll" on the back page of the South China Morning Post on December 30 may have left readers with the unfortunate message that the shipping industry is not aware of the effect of shipping emissions on human health and is not doing anything to reduce them. This is not the case.

As documented in the pages of this newspaper on more than one occasion, the members of the Hong Kong Shipowners Association and the Hong Kong Liner Shipping Association have for many years been deeply involved in the reduction of emissions from shipping, both in global negotiations and in local voluntary efforts. Locally, the Fair Winds Charter was developed by the industry in 2010, taking effect from 2011, as the world's only truly voluntary scheme to reduce shipping emissions at berth and at anchor.

In 2012, the charter was partially supported by the government with a three-year incentive scheme, and the government is now working on legislation to come into effect in 2015 to mandate the switch to low sulphur fuel by ocean-going vessels when at berth or at anchor. The industry fully supports it and is working with the government in the development of this regulation.In October, Shenzhen stated its intention to follow Hong Kong's voluntary efforts with an incentive scheme, and to work with Hong Kong towards an application to the International Maritime Organisation by 2018 to put in place an emission control area for the Pearl River Delta.

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Hong Kong's efforts to reduce emissions from shipping are well recognised and appreciated by Beijing, and we understand that Shanghai is considering adopting emission control incentives, initially based on Hong Kong's voluntary scheme, for the Yangtze River Delta.

The shipping industry, particularly in Hong Kong, is deeply aware of its obligation to reduce harmful emissions to protect human health, and is working both internationally and locally towards the necessary legislation.Shipping carries more than 90 per cent of world trade and, on a tonne-km basis, is the most efficient and environmentally friendly form of transport. It is our intention to continue to reduce the environmental footprint of this essential industry sector. Arthur Bowring, managing director, Hong Kong Shipowners Association Source : South China Morning Post

The OCEANA was the last one in on 2014 in Amsterdam stayed overnight New years eve and was the first one out in 2015 seen here departing from the Ijmuiden locks January 1st AM– Photo : Peter Herweijer Fotoservice IJmond

Panama Canal Board of Directors approves development of new port

The Panama Canal Board of Directors this week formally approved the development and construction of a transshipment port in Panama’s Corozal region. Upon completion, the port will have the capacity to handle more than five million TEUs within a 120-hectare area at the Canal’s entrance to the Pacific. The project is now awaiting the final step for approval from Panama’s National Assembly.

The two-phased port project will include the construction of a 2,081-linear-meter-dock, a container yard, offices and warehouse facilities within a 120-hectare area owned by the Panama Canal.

The project’s first phase will include 1,350 linear meters of docks, three docking positions for Post-Panamax ships, and an approximate handling capacity of three million TEUs. Currently, the Pacific side has an estimated capacity of five million TEUs. With the Expanded Canal, demand on the Pacific side is expected to reach six million TEUs and by 2020, eight million TEU capacity.

The National Assembly is expected to review the bill in the coming days. If approved, the Panama Canal will move forward with the development and tender process. The project is expected to create hundreds of new jobs during its construction phase, boosting the local economy. The Panama Canal will issue a call for bids to hire a company that will be responsible for all stages of the project. The contract will, most likely, consist of a 20-year concession, renewable once for 20 years.

“Advancing the terminal in the Corozal region is a priority. It is part of the Panama Canal’s goal to explore and develop areas, products and services that are close to our core business, and that add substantial value to our customers as a one-stop gateway with multiple services,” stated Panama Canal Administrator/CEO Jorge Luis Quijano. Currently, the Panama Canal is exploring several other projects in line with this objective. The advancements in the Corozal port represent great progress. The new port terminal will also include the construction of port facilities capable of handling Post-Panamax vessels. With a terminal of 16.3-meter-deep access canal and a depth of 18 meters along the dock, the new facility will provide docking facilities for five Post-Panamax ships.“This new facility will result in a significant increase in inter-oceanic cargo traffic, enabling the Canal to add value to the route and customers, consolidate



Panama’s position as an international logistics and maritime hub,” added Quijano.According to the Canal Administrator, the port may well increase Canal tonnage, given the close linkage between the Canal and the new port. Source : portnews

MV TANGER EXPRESS arriving in port Tanger Med from Algeciras. Photo : Capt Alex Castle ©

The SEAGO LINE SEAGO ANTWERP (2006), ex: MAERSK BOSTON until November 2012 arrived in Rotterdam

assisted by the KOTUG tugs SD REBEL and SD SEAL. Photo : Jan Oosterboer ©

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The second passenger liner which stayed overnight Amsterdam during the New year celebration was the QUEEN

VICTORIA above seen departing from Amsterdam January 1st approaching the Ijmuiden locks bound for Zeebrugge after passing the locks Photo : Joop Marechal (c)

Paragon Offshore Announces $25 Million Of Senior Notes Repurchases

Paragon Offshore plc today announced that Paragon repurchased an aggregate principal amount of $25.2 million of its senior unsecured notes in December 2014 at an aggregate cost of $15.3 million including accrued interest. The repurchases consisted of $15.2 million of its 6.75 percent senior notes due 2022 and $10.0 million of its 7.25 percent senior notes due 2024. Paragon repurchased the senior notes at an average purchase price of 60.6 percent of face value including accrued interest. These repurchases are in addition to previously announced repurchases which included an aggregate principal amount of $10 million purchased during the early fourth quarter of 2014. As a result of the repurchases, Paragon expects to recognize a gain on debt retirement in the fourth quarter of 2014, net of the write-off of issuance costs, of approximately $11.7 million, of which approximately $1.5 million is related to the previously announced repurchases and was previously disclosed. The repurchases were made using available cash and borrowings under our credit facility. Approximately $35 million remains of the original $100 million senior notes repurchase program authorized by Paragon's board of directors. Paragon is a global provider of offshore drilling rigs. Paragon's drilling fleet includes 34 jackups and eight floaters (five drillships and three semisubmersibles). In addition, Paragon is the majority shareholder of Prospector Offshore Drilling A.S., a publicly traded offshore drilling company on



the Oslo Axess stock exchange that owns and operates two high specification jackups. Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. For more information, please visit : http://www.paragonoffshore.com

The 2011 built DORADODIEP 4220-GT IMO-9518995 arriving at Ayr harbour on the Clyde with a cargo of Green

Heart Lumber from Guyana Photo : Brian Climie (c)

Aban Offshore slips on profit booking Aban Offshore fell 1.55% to Rs 499.10 at 9:31 IST on BSE, with the stock sliding on profit booking after

recent rally triggered by the ratings upgrade from CARE.

Meanwhile, the S&P BSE Sensex was up 40.11 points or 0.15% at 27,443.65.On BSE, so far 1.31 lakh shares were traded in the counter as against average daily volume of 6.49 lakh shares in the past two weeks.

The stock hit a high of Rs 513 and a low of Rs 496.85 so far during the day.

Shares of Aban Offshore had rallied 21.32% in three trading sessions to settle at Rs 506.95 on 30 December 2014, from a recent low of Rs 417.85 on 26 December 2014 after rating agency CARE in its release dated 26 December 2014, revised credit rating of bank facilities of Aban Offshore by 3 notches to BB- from D.CARE noted that the revision in the ratings assigned to the bank facilities of Aban offshore takes into account improvement in capital structure consequent to mobilisation of fresh equity during FY 2014 (refers to the period April 1 to March 31) and first half of FY 2015, improvement in the financial performance during FY 2014 and first half of FY 2015 and completion of refinancing of debt at the group level. CARE said that the ratings continue to be constrained by relatively high leverage at the consolidated level, high debt in relation to cash accruals, high utilization of working capital limits, non-

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deployment of few of its rigs and inherent risks in the offshore drilling industry. The ratings continued to factor in the strong competitive position of Aban Offshore in the industry, experience of promoters and management, CARE added.

Going forward, timely deployment of rigs going off the contract, optimum deployment of its fleet, changes in day rates, effective cash flow management notwithstanding improvement in liquidity position in the recent past would be key rating sensitivities, CARE said.

Aban Offshore's consolidated net profit jumped 91.5% to Rs 148.75 crore on 1.7% growth in net sales to Rs 1018.49 crore in Q2 September 2014 over Q2 September 2013.Aban Offshore, the flagship company of Aban group, provides offshore drilling services to companies engaged in exploration and production of oil and gas. Source : business-standard

The 2003 built 169 mtr long 28.481 DWT LILJA BULKER outbound from Rotterdam bound for Rouen

Photo : Willem Holtkamp - http://fotomaker.jalbum.net/FOTOMAKER/ ©

Vallianz buys stake in Holmen Heavy Lift Offshore

Singapore’s Vallianz Holdings has acquired a 45% share in Holmen Heavy Lift Offshore for $2.85 million. Holmen, a company incorporated in Singapore in 2011, is an investment-holding company.Holmen owns three submersible launch barges which are primarily used for the transportation and installation of jackets during the field development phase of the oilfield life cycle.Explaining the motives behind the transaction Vallianz has said that in order to achieve its goal of becoming a leading global player in the dynamic and rapidly growing offshore marine industry, the Company has been actively executing initiatives to expand its asset base, strengthen its operational capabilities and broaden its geographical coverage. Vallianz has added that the acquisition of interest in Holmen will diversify its product offering to include construction support vessels. Source : offshoreenergytoday

Optimism over O&G stocks despite earnings cut

PETALING JAYA: Malaysian oil and gas (O&G) companies are not directly afflicted by the oil price volatility, as they are service providers with operations in various segments along the value chain, according to CIMB Research.

“Service providers are not affected by the oil price volatility although SapuraKencana Petroleum Bhd and Dialog Group Bhd have exposure to the exploration and production (E&P) segment.

“SapuraKencana’s E&P operations are parked under SapuraKencana Energy Inc or SKEI (formerly Newsfield), which will also house upstream assets, including four blocks in Vietnam to be purchased from Petronas for US$400mil (RM1.35bil) and two blocks in Sabah that Petronas awarded to the consortium of SapuraKencana, Petronas Carigali and M3energy after a competitive bidding exercise,” the research house said in a statement yesterday, adding that Dialog’s E&P exposure through its participation in the D35, D21 amd J4 fields were located in the Malaysian waters.

It said companies had reported that their order books security was positive with the assurance that contractual terms and rates were intact, and not tied to oil prices.In the list of small to mid-cap companies, CIMB said Perisai Petroleum

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Teknologi Bhd, TH Heavy Engineering Bhd (THHE), Wah Seong Corp Bhd, Perdana Petroleum Bhd, Alam Maritim Resources Bhd and Uzma Bhd, among others had reiterated that their contracts were not dependant on oil prices.

“Bigger cap companies, namely SapuraKencana, UMW Oil & Gas Corp Bhd (UMW-OG) and Bumi Armada are the ones with significant operations outside Malaysia.“UMW-OG’s had said that their drilling contracts in various Asean countries remained secure and there are no provisions for price revisions, while Bumi Armada confirmed that its order book, mainly driven by long-term floating production, storage and offloading (FPSO) contracts (outside Malaysia) is locked with no oil price connection in it,” it said.

It added that SapuraKencana’s earnings came from the provision of various services in Malaysia and abroad, with the main contributor being the drilling business, backed by multi-year contracts.CIMB noted that five companies, which made up 42% of Malaysia’s O&G portfolio had fallen below the net tangible assets.

“Perisai traded at the steepest discount of 47%, followed by THHE (28%), Bumi Armada (27%), Alam (24%) and Wah Seong (6%).“Interestingly, 58% of the companies in our O&G portfolio are set for all-time net profit highs in calendar year 2015,” it added.Despite the earnings per share (EPS) cuts, it noted that Dialog, SapuraKencana, UMW-OG, Bumi Armada, Perdana, Uzma and Wah Seong were set for a record year in 2015.

SapuraKencana would be CIMB’s top pick due to its biggest exposure along the domestic O&G value chain. “At RM26.2bil, its order book is high, as the company is constantly on the lookout for new contracts.“In the small caps (segment), we pick Perdana, which benefits from active fleet expansion and improving charter and utilisation rates,” it added. Source : The Star

CASUALTY REPORTING

Boat runs aground on Savana Island, dumping debris, diesel fuel onto reef

A Sea Tow boat rescued six people from a sinking boat this weekend that crashed into a small island off the west coast of St. Thomas. Alan Wentworth of Sea Tow was on his 13-foot rescue boat when the call came in about 8:30 a.m. Saturday that a vessel was in trouble.

He went out to Savana Island and saw a 65-foot Sea Ray named Shangralee taking on water. A middle-aged man and his adult son were in a tender, or dinghy, next to the sinking vessel. Four women, two of them children, were still on the damaged boat.

Wentworth said he tried to talk to the man in the tender, but the man was not responding."I don't know if there was a language barrier, or he was in shock," Wentworth said."There were four females on the boat screaming. They were in shock. They were pale," he said. Wentworth said he rescued two of them off the bow of the boat, but the other two, a woman and a teenager, refused to leave the cockpit area of the boat. Putting himself and his vessel in danger,

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Wentworth tried to get as close as he could to the cockpit and managed to get the child transferred into his boat, he said.The woman fell into the water, but she grabbed a line from the Sea Tow boat and held on as Wentworth backed away from the sinking boat.

Wentworth said according to the owner/operator, Hugo de La Uz, the boat was on autopilot when it crashed into Savana Island. The people on the boat were from Puerto Rico and all seemed to be friends and family of the owner, who was the man Wentworth found in the tender. When the boat crashed, it ruptured the fuel tank and 500 gallons of diesel fuel spilled into the ocean, Wentworth said.Items such as life jackets and cushions began to pop up in the water around the boat, which Wentworth said meant the bottom of the boat had been ripped open. "I knew the bottom was coming out of it," Wentworth said. "This all was happening very quickly."

He and another boat that arrived to assist spent two hours picking debris from the sinking boat out of the water.

"We had a diver come out and decided it was too dangerous to salvage it," Wentworth said. Once they got back to Crown Bay Marina, Wentworth asked the owner what he wanted them to do with all the stuff they had collected from the water. The owner said he did not care, according to Wentworth."It was just a mess and they were like, 'I'm out of here, going back to Puerto Rico,' " Wentworth said.

Wentworth said the spot where the boat sank is a popular dive site, and now the reef in that location has likely been damaged and the area is still filled with debris from the crash. The U.S. Coast Guard responded to the distress call with two helicopters, according to Wentworth.U.S. Coast Guard spokesman Ricardo Castrodad did not return calls for comment about the incident. Source : virginislandsdailynews

Cargo ship runs aground off Turkey's Marmara Island, crew rescued

Ship's crew made distress call to Turkish authorities after engine room became flooded with water.

A cargo vessel ran aground late Wednesday night off Marmara Island on the Marmara Sea coast, Turkish authorities said. The ship's crew made a distress call to Turkish authorities after the engine room became flooded with water. The Sierra Leone-flagged ship was en route to Libya from Istanbul's Tuzla district.The Turkish coast guard was able to rescue all nine crew members and no injuries were reported Source : worldbulletin

Libyan-registered oil tanker collides with a Singapore-registered bulk carrier in

Singapore waters On 2 January 2015, at about 0600hrs (Singapore Time), the Maritime and Port Authority of Singapore (MPA) received a report that a Libyan-registered oil tanker, "ALYARMOUK" had collided with a Singapore-registered bulk carrier, "SINAR KAPUAS" in Singapore waters about 11 nautical miles north-east of Pedra Branca, MPA said in its press release. ALYARMOUK reported that one of her cargo tanks sustained damage, resulting in spillage of crude oil. Upon notification, MPA deployed a helicopter to assess the situation. Oil spill response resources have also been activated. As part of standard operating procedures for joint oil spill combat in the Straits of Malacca and Singapore, MPA has notified the Malaysian and Indonesian Authorities. The two vessels involved in the collision are currently safely anchored and in stable condition. MPA has issued navigational broadcasts for ships to navigate with caution when in



the vicinity of the incident site. There is no report of injury, and traffic in the port and the Strait of Singapore remains unaffected. Source : PortNews

NAVY NEWS

The San Antonio-class amphibious transport dock ship USS NEW YORK (LPD 21) arrived in Haifa, Israel for a scheduled port visit Dec.31, 2014. While in port, the ship's Sailors and Marines did have the opportunity to visit some local sights, experience the culture, and interact with the people of Haifa. Sailors and Marines will also have the opportunity to choose from various tours provided by Morale, Welfare and Recreation (MWR). Photo Peter Szamosi (c)"We have been presented with an excellent opportunity for the Sailors and Marines on board USS NEW YORK to enjoy liberty and embrace a culture few Americans get to witness first-hand. Additionally, we will be hosting several tours on board for personnel of the U.S. Embassy, which gives us a chance to share our ship's heritage and meaning. We are grateful for the opportunity to celebrate the New Year with the citizens of Haifa, Israel." - Capt. Christopher Brunett, commanding officer, USS NEW YORKThis is the first port visit for NEW YORK during its routine deployment in the U.S. 6th Fleet area of operation. The ship departed Naval Station Mayport, Florida, Dec. 11 and spent the past 20 days crossing the Atlantic Ocean, transiting through the Strait of Gibraltar and crossing the Mediterranean Sea. USS NEW YORK, deployed as part of the Iwo Jima Amphibious Ready Group/24th Marine Expeditionary Unit (IWO ARG/24MEU), is conducting naval operations in the U.S. 6th Fleet area of operations in support of U.S. national security interests in Europe. Along with USS NEW YORK the Iwo Jima ARG/24 MEU is comprised of embarked Marines from the 24th MEU, the multi-purpose amphibious assault ship USS IWO JIMA (LHD 7), the amphibious dock landing ship USS FORT MCHENRY (LSD 43). U.S. 6th Fleet, headquartered in Naples, Italy, conducts the full spectrum of joint and naval operations, often in concert with allied, joint, and interagency partners, in order to advance U.S. national interests and security and stability in Europe and Africa. Source : USNavy

China in search of naval base for its aircraft carrier

China is considering 'all options' to choose an exclusive naval base for its new aircraft carrier LIAONING "The aircraft carrier is not the stay-at-home type. It will need a home in the end," Chinese Defence Ministry spokesman Yang Yujun said.

The LIAONING moored in Dalian – Photo : Yang Janson (c)



"We will consider all options when choosing the naval base for the aircraft carrier," Yang was quoted as saying by state-run China News Service. Yang said elements like geography, the economy and defence will be comprehensivel .. Source : indiatimes.

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Fire damaged submarine chaser "Kerch" to be scrapped

The Kara-class missile cruiser "KERCH" of the Black Sea fleet that sustained damages in a fire in November this year will be decommissioned and scrapped, TASS reports citing sources in the shipbuilding industry familiar with the matter.

Russian Defense officials decided to scrap the KERCH as it would be too expensive to order overhaul and retrofitting of the outdated warship with armament that does not meed modern requirements. The name " KERCH " could be assigned to one of the new ships of the Russian Navy. The sources said the ship will be scrapped in 2015 at one of the Russian shipyards. Most likely, it will be one of the defense enterprises based on the Crimean peninsula, but not The 13th Shipyard. Source : PortNews

Ministry launches naval drills with new missile ship

The Taiwanese Ministry of National Defense launched a special naval exercise involving up to 13 warships and its new Tuo Jiang-class corvette with marine patrol maneuvers southeast of the nation. Led by the Keelung-class guided missile destroyer Ma Kung, the fleet left Greater Kaohsiung’s Chijin Harbor for the exercise set to coincide with the new year. With naval officials and crews aboard, the Ma Kung headed south in the Taiwan Strait toward the Pacific Ocean, about 104 nautical miles (192km) east of Orchid Island (also known as Lanyu).The two-day “New Year’s Day Naval Combat Readiness Patrol” was also to test the maneuverability and capability of stealth missile corvette, the ministry said. Ministry officials said the fleet would welcome the New Year by catching rays from the nation’s first sunrise this year on the Pacific Ocean, as this has great significance and can serve as a good omen for the coming year.The exercise also included Cheng Kung-class Kang Ding-class and Chi Yang-class frigates, as well as other patrol vessels. Ministry spokesman Major General David Lo said the exercise shows Taiwanese that military officers are on guard to protect the nation during the holidays, and stand ready to preserve security in the Taiwan Strait and surrounding marine territories.The exercise will have combined drills for naval ships and air force jets, with anti-submarine patrol missions and anti-invasion scenarios, to show the military’s combat readiness, he added. Source : TaipeiTimes

Singapore sends 5th navy ship for AirAsia QZ8501 search

A Republic of Singapore Navy (RSN) Bedok-class mine countermeasure vessel (MCMV) on Wednesday (Dec 31) was deployed to the search and rescue operation area to hunt for the missing AirAsia QZ8501 plane.The RSS Kallang has the capability to conduct underwater search operations as it is equipped with underwater sensors and a Remotely Operated Vehicle (ROV) to search for aircraft debris, the Ministry of Defence said in its press release. The RSS Kallang will join the other four RSN ships deployed - RSS Supreme, RSS Valour, RSS Persistence and MV Swift Rescue for the operation. Additionally, The Republic of Singapore Air Force (RSAF) is also flying an RSN Autonomous Underwater Vehicle (AUV) team to RSS Persistence. The ROV and AUV will help to cover a larger underwater search area as part of the search and rescue operation, MINDEF said. To date, the Singapore Armed Forces has contributed two C-130 aircraft, two Super Puma helicopters and five navy ships. Source : Channelnewsasia

Liow: Navy ship to be sent Malaysia is ready to provide navy vessel KD Lekiu as requested by Indonesian authorities for the search and recovery of the wreckage and victims of Indonesia AirAsia Flight QZ8501.

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After receiving news that the Badan SAR Nasional Indonesia (BASARNAS) had identified debris from the plane and bodies, Transport Minister Datuk Seri Liow Tiong Lai said he was saddened by the confirmation and assured Indonesia that Malaysia was committed to cooperate with them on their recovery plan.“Indonesian authorities have requested to use our KD Lekiu, a vessel equipped with a helicopter in order to recover the bodies in the sea and we will use that.

“We are committed in assisting Indonesian authorities as an Asean partner as we are all (in this) together. If they have any further requests, we will offer help,” he said.Liow said the search phase would change into a recovery phase and cautioned that a lot of work was needed to be done.

He said Indonesia had to identify the location of wreckage and then zoom into the area by using deep sea search equipment, a technique similar to the search for the missing Malaysia Airlines flight MH370.

"They will need to use site scan sonars and cameras to locate and pull up the wreckage. It is a massive job," he said. He added that he has been keeping in close contact with his Indonesian counterpart Ignasius Jonan and will continue to keep in touch on all recovery efforts.Liow offered his condolences to the next-of-kin of the passengers and crew onboard Indonesia AirAsia flight QZ8501. "It's a very sad thing that happened, our prayers are always with them," he said.As for the family of the sole Malaysian victim Sii Chung Huei, from Kuching, Liow said they will check with the family on any assistance they require.In a statement released to to the media yesterday, Liow said this was a trying time for those affected and Malaysia stood in solidarity with the families and loved ones of those onboard. Source : New Straits Times

SHIPYARD NEWS

The SEVEN SUN fitting out at Royal IHC in Kinderdijk – Photo : Arie Boer ©

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Williamstown shipyard workers expect to lose jobs in March

Workers at the Williamstown naval shipyards expect the axe to fall on their jobs within three months.Williamstown's owner, BAE Systems Australia, had told union delegates it would not be issuing any redundancies before Christmas to its 1100-strong workforce. However, the future remains bleak.

The shipyard's workers are finishing fitting out a Landing Helicopter Dock, and have a few months work left on the Air Warfare Destroyer project.Both projects are expected to finish early this year, leaving the shipyard without work, said Australian Manufacturing Workers' Union delegate Leon White, a boilermaker at the yard."There's nothing coming up. Once the second LHD's gone, we've got a few more AWD blocks after that.

"Everyone's just walking around on eggshells."

White is 43, and has worked at the yard for four years. After securing the job a couple of years ago he bought a house. He now holds concerns for his ability to continue paying it off."It's a worry. At the moment there's not much work about."

The Abbott government recently announced it was excluding local shipyards from tendering for a contract to build two new naval supply ships because the local yards lacked capacity and had poor labour productivity rates.

The AMWU has called on the government to reverse that decision, and bring plans to build a new fleet of frigates to maintain employment at current levels.In response to a detailed list of questions about the shipyard's future, BAE issued a statement through a spokesman.

"There are clearly pressures and decisions are required in the short term, but with the right strategy between government and the industry we believe we can manage an outcome that will not only retain much of our workforce but also strengthen shipbuilding capabilities over the long term," the statement read."We have written to the new minister and stand ready to meet with him at his convenience."Political leaders spent Wednesday pointing fingers at each other over the issue.

Newly-installed defence minister Kevin Andrews dismissed fears of job losses as speculation, and said the Coalition government was committed to increasing spending on defence."The former government's decisions led to 119 defence projects being delayed, 43 projects being reduced in scope and eight projects cancelled, risking critical capability gaps.

"Reports of massive job losses in the industry are speculative and nothing more than cheap Labor scaremongering tactics."

The minister said the government hoped to spend $4.2 billion on defence over the next four years, subject to the outcomes of the 2015 Defence White Paper being prepared by an external panel.

Premier Daniel Andrews said the local manufacturing jobs were "worth fighting for". He said Victoria, NSW and South Australia, the three "big manufacturing states with a defence procurement capability" would work together to put forward the "best argument" to the federal government for manufacturing locally.

"I think this is a very simple issue. If you don't support the strategic industry then it will die. Thousands of jobs will be gone and they will never come back," he said."My message is very simple to Mr Abbott: Now's the time to place an order. Place an order, save these jobs. We can build the best defence technology in the world and we have been and we will if only the Abbott government will put Australian jobs first."

Acting leader of the Opposition, Penny Wong, accused the government of inaction over the lack of work for the shipyards."Labor had a plan to bridge the 'valley of death' by bringing forward the construction of new supply ships and patrol boats, as well as the future frigates to be built here in Australia.

"Instead of taking action to protect these jobs, the Abbott government has spent months denigrating the skill and professionalism of the workforce." Source : The Age

Hyundai Heavy CEO clears 1st hurdle Korea Inc. is no stranger to violent clashes between unions and companies.

Hyundai Heavy Industries (HHI) saw some of the nation's most violent clashes in the 1980s and 1990s before achieving lasting peace on its shipyard.That peace was on the brink of collapse last year at the height of an industrial slump before HHI CEO Kwon Oh-gap and the union reached a tentative agreement to avoid a strike Wednesday. Of course, the agreement was tentative, so a strike can't be ruled out completely. Kwon was a respected figure in HHI before being sent to head Hyundai Oilbank, a subsidiary of the shipbuilder.



He was called back to lead a HHI in crisis last September and immediately set about fixing the firm.Together with his executives, he has appeared at the front gate of the Ulsan shipyard since Sept. 23 to persuade workers to end strikes.

In addition, he decided to stop receiving his salary until HHI's health improves.

Kwon has let 81 executives (30 percent) of his top officials go, and called on workers to take steep wage cuts, according to an HHI spokesman.

Hyundai Heavy recorded a whopping net loss of 1.46 trillion won (about $1.3 billion) in the January-September period largely due to lower contract prices to build ships with higher costs. It posted a net profit of 374 billion won in the same period last year.Kwon's ordeal is not over yet by any means, and not just because of the tentative nature of the agreement with the union, but because of the ongoing slump that has hit the industry, alongside the continued growth of Chinese shipbuilders.

"Hyundai Heavy workers made some concessions in the seven-and-a-half-month wage negotiations (since May) with the company to help it tackle declining orders and growing uncertainties this year," Kim Hyung-gyun, a spokesman for the union, said Thursday.

The tentative deal requires approval from more than half the company's 18,000-member union in a vote scheduled for Jan. 7. The unionized workers have held strikes four times since late October in the Ulsan shipyard to demand increases in their basic pay and bonuses.Under the tentative agreement, the workers agreed to an increase of 37,000 won in basic monthly salary and some stock as well as 2 million won in bonuses. Hyundai Heavy was established in 1973 and its labor union came into existence in 1987. Unionized workers staged strikes during the 1987-1996 period seeking higher wages and better working conditions.Afterwards, however, the shipbuilder managed to sign a wage contract with its workers meaning there were no strikes in the past 18 years since 1996. The recent strikes by Hyundai Heavy workers have brought criticism that their demands went too far, given the fact the shipbuilding business is still at rock bottom. In his new-year message, Hyundai Heavy Chairman Choi Kil-seon said Wednesday that the company suffered its "worst-ever difficulty" last year since it was established four decades ago as low-priced contracts led to huge losses that hurt the financial health of the company. Source : Koreatimes

ROUTE, PORTS & SERVICES

The tug EN AVANT 1 departed with the pontoon 6619 from VDS (Vlissingen Oost) bound for Teesport.

Photo : Wim Kosten – www.maritimephoto.com (c)

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US OKs Hanjin, UASC, CMA CGM, CSL Vessel Sharing Agreement

U.S. Commissioner William P. Doyle in an emailed statement announced approval of a proposed vessel sharing alliance between Hanjin, UASC, CMA CGM, and CSCL.

"Today, I am voting to take no further action on the Hanjin/UASC/CMA CGM/CSL Vessel Sharing and Slot Charter Agreement. This agreement is scheduled to become effective on January 2, 2015," said Doyle.

The Commissioner noted that the new agreement was simply a minor extension to the Ocean Three Alliance of United Arab Shipping Company (UASC), CMA CGM, and China Shipping Container Lines (CSCL) that went into effect in October 2014.

"This Hanjin/UASC/CMA CGM/CSL Vessel Sharing and Slot Charter Agreement is basically the Ocean Three parties plus Hanjin Shipping Company. However, the actual service being deployed under this agreement is based on a 2009 agreement between UASC and Hanjin with some limited port and carrier adjustments," said Doyle.

CMA CGM had been looking for new alliance partners since the collapse of planned P3 alliance with Maersk Line and Mediterranean Shipping Co. (MSC). Source :Ship & Bunker News Team

The 2009 built 129 mtr long FLINTERSTREAM in Rio Grande – Photo : Marcelo Vieira ©

Asia-Europe trade faces challenges as new year arrives

Ocean carriers face an uphill struggle to push through planned general rate increases on the Far East-North Europe trade in January amid deteriorating economic conditions at both ends of the world’s biggest liner route.

China’s Cosco was the latest carrier to announce a general rate increase, of $800 per 20 foot container effective Jan. 15, joining several other carriers including Hapag-Lloyd, CMA CGM and NYK, which have unveiled rate hikes of $500 to $880 per TEU early in the new year.

The carriers are hoping to emulate and maintain the initial relative success of the latest GRIs, in mid-December, which pushed up spot rates by $634 per TEU in a week to $1,353 per TEU. Rates then retreated in the run-up to the Christmas vacation period, closing the year at $1,085 per TEU on the Shanghai Containerized Freight Index. This is



significantly lower than the $1,511 per TEU spot rate at the end of 2013, but an improvement on the $738 per TEU rate in mid-October when forwarders were reported to be offering shippers rates as low as $600.

Carriers are optimistic that their latest GRIs will reverse the rate erosion in the past three weeks as shippers will be re-stocking their depleted inventories following the Christmas sales season. The spot market is increasingly important for carriers, accounting for around 50 percent of traffic on the head haul westbound leg of the Asia-North Europe trade.

The launch of the 2M and 03 alliances in 2015 is not expected to destabilize the trade as the seven member lines are increasing weekly capacity by a modest 2 percent from current levels. Some believe the alliances will allow carriers to better coordinate short-term capacity adjustment which could stabilize spot rate volatility.

The 2M carriers, Maersk Line and Mediterranean Shipping Co., will shrink their combined capacity by 2 percent, while the 03 lines — CMA CGM, United Arab Shipping Co. and China Container Shipping Line — will market 7.4 percent extra cargo space.The outlook on the junior Far East-Mediterranean trade is less certain as the two alliances will increase weekly capacity by around 19 percent, raising fears of a battle for market share that likely will result in further rate declines, according to industry analyst Alphaliner. Source : Journal of Commerce

Malacca Strait rampant with pirates Defense Minister Ryamizard Ryacudu has emphasized the importance of securing the Malacca Strait not only from illegal fishing but also from crime and environmental damage.“I will meet the Defense Ministers from Singapore and Malaysia to discuss the security situation in the Malacca strait,” Ryamizard said after attending a defense ministry executive meeting in Jakarta recently.

The Malacca Strait is a maritime area that borders four states; Indonesia, Malaysia, Singapore and Thailand. The strait connects three major oceans: the South China Sea in the North with the Indian Ocean in the South along with the Pacific Ocean to the East. Singapore, Indonesia, Malaysia and Thailand are still involved in joint sea and air patrols along in the Malacca area.

According to Ryamizard, there are several actual issues related to the strait that should be addressed immediately.

“We don’t want the [currently low security presence] in the Malacca strait to invite more pirates and as it is Indonesia has become the country that is expected to clean the strait of oil spills,” the minister said.

A center focusing on piracy and armed robbery, Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP), reported that there have been 129 sea attacks reported so far from January to September 2014, predominantly in Indonesia, the South China Sea, the Strait of Malacca and Strait of Singapore.

Of the total attacks, 117 were actual attacks and 12 others were attempted attacks.

The center said that the number of incidents has surpassed the 99 attacks in the same period in 2013. However, the center did not give any specific data on the crime cases in the Malacca strait alone.

The Indonesian Navy acknowledged the existence of criminals in the Malacca Strait. Even though the number was not high, it was still a serious problem for the strait’s security.

“The most common crime is ship robbery. The criminals attack small speed boats or fishing vessels and rob them on the spot,” Navy spokesman, Commodore Manahan Simorangkir, told The Jakarta Post recently. He said that the Navy was trying to secure the area, with assistance from neighboring countries like Malaysia and Singapore.

Last week, the Indonesian Navy apprehended six pirates involved in a sea piracy network operating in the straits of Malacca and Singapore. The perpetrators, who were residents of Terong island, Riau Islands province, had robbed three ships passing through the straits. The Navy confiscated 0.5 kilograms of marijuana, 104 small packages of marijuana and a package of crystal methamphetamine from the suspects. It was also reported that the Malacca strait was a favorite route for illegal migrants. A recent report from the United Nations High Commissioner for Refugees

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(UNHCR) revealed that hundreds of Rohingya people had chosen the Malacca Strait as their new route to reach Australia for safety. Source : The Jakarta Post

The SUOMIGRACHT enroute the Beringharbour in Amsterdam – Photo : Marcel Coster ©

Reliance’s ship purchases put India’s maritime policy shortcomings in focus

India’s bid to move up the shipbuilding value chain and start constructing sophisticated vessels received yet another jolt when Reliance Industries Ltd ordered six very large ethane carriers, or VLECs, the world’s first such ships, from South Korea’s Samsung Heavy Industries Co. Ltd for a combined $720 million. A very large ethane carrier is a hybrid of a liquefied natural gas (LNG) carrier and a liquefied petroleum gas (LPG) carrier. The ships, each costing $120 million, would be used to transport liquefied ethane from North America to the petrochemical plant of Reliance in India. Mitsui OSK Lines Ltd, Japan’s biggest shipping company, will first supervise the construction of the 87,000 cu. m capacity ships and, when delivered, operate and manage the vessels to ship the fuel. The blow is all the more severe because Reliance picked Mitsui OSK Lines to operate and manage the ships due to the expertise of the Japanese firm in running both LNG and LPG carriers. In the process, it overlooked local shipowners such as Shipping Corp. of India Ltd (SCI), India’s state-run firm which has gained sufficient capabilities in operating and managing LNG and LPG carriers. Very large ethane carriers are fast becoming a new opportunity for shipbuilders and shipowners/operators. Ethane, a natural gas component, is expected to be produced in huge amounts in North America due to the shale gas revolution, which has generated an abundance of LNG and LPG. Ethane is primarily used as a petrochemical feedstock, to produce ethylene by steam cracking. South Korea, the world’s biggest shipbuilding nation and Samsung Heavy Industries have gained by winning this prestigious order from Reliance to build the world’s first set of very large ethane carriers. It is undoubtedly a loss for India. The development also comes at a time when Prime Minister Narendra Modi is trying to give an impetus to local manufacturing, including shipbuilding through the “Make in India” campaign. Worse still, India’s bid to construct at least three of the nine LNG ships required by state-run natural gas firm GAIL (India) Ltd to haul the cargo from the US is in jeopardy because it is not able to get a technology partner to build these carriers. In view of this, GAIL was forced to extend time twice on a tender to hire nine LNG ships from shipowners and operators. Reliance will register these ships in overseas, tax-friendly jurisdictions, dealing a further blow to India’s plan to boost its home fleet—both owned and controlled tonnage—by an ambitious 400% to 43 million gross tonnage (GT) by 2020 from the current 10.31 million gross tonnage. India’s junior shipping minister P. Radhakrishnan informed the country’s Parliament of the ambitious target but did not reveal how this would be achieved. One of the first policy decisions that the Modi government took after coming to power in May was to formulate a controlled tonnage scheme for local fleet owners. According to this policy, local fleet owners can buy ships abroad and also flag them in the country of their choice. This decision is aimed at encouraging Indian shipping companies to have their registered offices in India itself while allowing them to acquire further tonnage without forming subsidiaries overseas to own such foreign flagged vessels.



This will enable Indian shipowners to have access to cheaper funds overseas to acquire additional tonnage while not having to set up multiple enterprises abroad to acquire and maintain such tonnage. The policy, however, prescribes that the additional tonnage that can be acquired and flagged abroad by these India-based enterprises is limited to the tonnage of the Indian flagged ships already registered by them in India. The additional tonnage that can be acquired abroad is also subject to the employment of a certain proportion of Indian crew, thereby creating additional employment opportunities for Indian seafarers. Almost six months after the policy was announced, none of the Indian shipowners have availed themselves of the scheme. Shipping experts say that the scheme needs further refinement before it can be tried out by local fleet owners. For instance, the scheme is of no use for new entrants to the sector—their first ship should be registered in India, then only can they buy and register matching tonnage overseas. But registering a ship in India is considered tricky and entails a variety of issues. As a result, an Indian-flag ship is not an acceptable flag for many of the global ship lenders. If India wants the Tata group and Reliance, which have big money and massive cargo interests, to help boost India’s tonnage or build their ships in India, the government has to create a conducive climate. The Tata group already has a joint venture shipping company based in Singapore with another Japanese fleet owner, NYK Line Ltd. Otherwise, the targets and schemes will remain only on paper. Source: Livemint

OLDIE – FROM THE SHOEBOX

1/ 11/ 1975, "ARIEGE" ex Valais 72, Aghios Haralampos 70, Justus Waller 66, built 1954 by A/B Gotaverken ,Goteborg, Yrd No 681, 10,933grt. She is seen in the livery of Petromar and about to depart from No1 North Jetty Grangemouth after discharging a cargo of Molasses. She is being assisted by the Tugs DALGRAIN built 1963 840bhp and CARRON ex Flying Witch 74, built 1960 1060 bhp, when tugs were tugs. ARIEGE was renamed CAPTAIN GREGOS during 1980, and arrived as such 11/2/1988 at Pakistan Shipbreakers. Photo : Iain Forsyth © The compiler of the news clippings disclaim all liability for any loss, damage or expense however caused, arising from the sending, receipt, or use of this e-mail communication and on any reliance placed upon the information provided

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…. PHOTO OF THE DAY …..

The barge H-406 moored at the stern of Heerema’s HERMOD as seen from the UNION PRINCESS

Photo : crew Union Princess (c)

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