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INTERNATIONAL MARITIME ORGANIZATION, 4 Albert Embankment, London SE1 7SR, United Kingdom. Tel: +44 20 7735 7611, Fax: +44 20 7587 3210 http://www.imo.org

INTERNATIONAL MARITIME ORGANIZATION

MARITIME KNOWLEDGE CENTRE ―sharing maritime knowledge‖

CURRENT AWARENESS BULLETIN

Volume XXV – No. 7 July 2013

The Bulletin is produced monthly and is free of charge To receive e-mail notification that the Bulletin is ready please send an e-mail to:

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MEETINGS

Click here for the programme of IMO meetings for 2013, the summary reports for meetings held so far and the provisional agenda.

PRESS BRIEFINGS

IMO NEWS (Issue 2, 2013) Digital version of latest issue

NEW IMO PUBLICATIONS

SECRETARY-GENERAL SPEECHES

THE UNITED NATIONS

UN News Centre UN Dispatch

INDUSTRY NEWS AND PUBLICATIONS: CONTENTS

SOURCES CASUALTIES AND SALVAGE IMO LAW AND POLICY MARINE TECHNOLOGY MARITIME SAFETY MARITIME SECURITY AND PIRACY NAVIGATION AND COMMUNICATIONS POLLUTION/ENVIRONMENT PORTS AND HARBOURS SEAFARERS

SHIPBUILDING AND RECYCLING OF SHIPS SHIPPING SPECIAL REPORTS

Important notice: this Current Awareness Bulletin is published by the Maritime Knowledge Centre and is not an official IMO publication. Titles of articles are reproduced in the Bulletin as they appear in the magazines or newspapers. Selection does not imply any endorsement by IMO of the article, journal, author or publisher. Please note that use of names of States, territories, land areas, bodies of water and adjectives of nationality may not be in concordance with United Nations and IMO guidelines and IMO bears no responsibility for them.

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The Bulletin and previous issues can also be found on the IMO website in the Maritime Knowledge Centre Pages. To unsubscribe send an e-mail to MaritimeKnowledgeCentre@imo.org

SOURCES New publications listed are all available for consultation in the MKC. For copyright reasons we are unable to send copies and you are advised to contact the publishers. Click here for the latest MKC Acquisitions List. Please note that the following list contains excerpts only. The full text of articles in this issue are available from the sources listed below: Fairplay International Shipping Weekly: http://www.fairplay.co.uk Fairplay Solutions: http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx IALA Bulletin http://www.ialathree.org/chapo/publications/publications.php?LeTypePub=11 Lloyds‘ List: http://www.lloydslist.com MER http://www.imarest.org Navigation News: http://www.rin.org.uk/ Ports & Harbours: http://www.iaphworldports.org/ Safety at Sea: www.safetyatsea.net Tanker Operator: http://www.tankeroperator.com TradeWinds: http://www.tradewinds.no

CASUALTIES AND SALVAGE Containers burn out on MOL Comfort - By Max Tingyao Lin ―MANY containers have burned out on the fore part of split boxship MOL Comfort as salvage teams and the Indian Coast Guard continue to fight the fire that started on Saturday, writes Max Tingyao Lin in Hong Kong. One tug boat and two rescue boats, managed by Smit and Nippon Salvage , and the ICG pollution-control ship Samudra Prahari are on the scene but have yet to contain the blaze.‖ LLOYD‘S LIST, 10 July 2013, p 7 Wild world - By Tom Leander "The saga of MOL Comfort is one of accident and near-disaster: it is short of being a tragedy, because its crew escaped unharmed, thanks to the quick response of a passing ship. That was on June 17, when the 8,200 teu vessel split in rough weather 200 miles from the coast of Yemen. The progress of the separate fore and aft sections, initially adrift in the Indian Ocean, has evoked the seriousness and unexpected consequences when things go wrong at sea. It has also highlighted the competence of the Indian Coast Guard and the valour of the salvage teams. The Indian Coast Guard was on hand to alert and guide passing ships when the still-unexplained incident occurred. It has since sent a firefighting vessel to battle a fire on the fore section that has now raged for six days. The two parts of the vessel were many miles apart when the stern section began to take on water about 10 days ago and sank. Smit Salvage and Nippon Salvage have been engaged in an operation since to tow the fore section to a port, presumably in the Middle East, with containers still on board. No one knows why the fire started, but it has burned long enough for owner Mitsui OSK Lines to report that: ―Observations show that most of the containers on deck have been burnt out, while we have not been able to confirm the situation in the cargo hold.‖" LLOYD‘S LIST, 11 July 2013, p 2 Tsavliris gets 'Katherine' Lloyds Open Form contract – By Adam Corbett ―Salvage operation has been complicated because of a direct reduced iron cargo, which has been behind a number of losses in the past. Tsavliris Salvage has been awarded the Lloyd‘s Open Form (LOF) contract to salvage the stricken 28,700-dwt handysize bulker Katherine (built 1997) in an ongoing salvage operation. The Blossom Maritime bulker, loaded with a cargo of direct reduced iron (DRI), was involved in a collision with the 16,200-dwt bulker Baru Satu (built 2001) off the Greek Island of Andros on Friday last week. Tsavliris tugs and anti-pollution vessels Megas Alexandros, Alexander 5, Aegis and Aghios Nekatarios were all involved in the salvage operation. The first stage involved separating the two ships, which were stuck following the collision, in challenging weather conditions.‖ LLOYD‘S LIST, 12 July 2013, p 31 ClassNK accelerates MOL Comfort probe - By Max Lin "ClassNK plans to speed up the investigation into the loss of MOL Comfort, the boxship that broke in half under its class. It expects to complete its preliminary findings in less than two months. Shipowner Mitsui OSK Lines, builder Mitsubishi Heavy Industries and ClassNK have been working to determine the cause of the casualty over the past few weeks. MOL has hired Lloyd‘s Register as a technical consultant. They had planned to examine the shipwreck in detail, but that will not be possible now that both parts of MOL Comfort have sunk in the Indian Ocean." LLOYD‘S LIST, 15 July 2013, p 9

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Loss of both hull sections is major setback for 'MOL Comfort' probe – By Adam Corbett ―The sinking of the fore part of the 8,110-teu containership MOL Comfort (built 2008) is a major setback for accident investigators who will now be left with no physical evidence to examine. Keeping hold of at least one part of the wreck was seen as crucial to determining what caused the containership to first crack then break in two in relatively calm weather in the Indian Ocean when it was not fully loaded. But without the additional evidence from the wreck, the yard has been unable to offer any explanation for what might have gone wrong. In a statement, it said: ―To date investigations have not been able to point to any plausible cause.‖ Experts suggest the testimony of the crew, all of whom were rescued, will now play the most important role, especially in explaining how the casualty progressed. They could also reveal if the ship had ever had a problem with fatigue cracking or if they had ever been asked to check the hull.‖ TRADEWINDS, 19 July 2013, p 30 MOL Comfort sisterships set to resume service - By Max Lin "Two sister vessels of MOL Comfort, the world‘s largest containership lost to date, are due to return to service in August after having their hull structures strengthened. According to the latest schedule of owner Mitsui OSK Lines, MOL Courage will enter the LP1 loop from Singapore on August 13 and MOL Celebration will enter the loop from Vung Tau on August 23. MOL has confirmed to Lloyd‘s List that the 2008-built, 8,110 teu vessels will resume service after completing their upgrades. After MOL Comfort broke in half last month, MOL withdrew its sister vessels from service to carry out hull-strengthening works as precautionary measures. MOL said the work, which takes one to two months to complete per vessel, will enhance the strength of the hulls ―twice as much‖ as the safety standard." LLOYD‘S LIST, 29 July 2013, p 1

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IMO Compromise EEDI solution pleases ferry operators ―A sector-specific Energy Efficiency Design Index (EEDI) for new ro-ro cargo and ro-pax vessels was agreed at the IMO‘s 65th Marine Environment Protection Committee (MEPC) meeting at the end of May, a decision hailed by the ferry industry as a ―victory for common sense‖. An Interferry-backed modification of the EEDI for the ro-ro ship sector will take effect from 2016 as an alternative to the ‗one size fits all‘ standard EEDI formula in force since January this year. The standard formula was agreed at MEPC 62 in 2011, but shortsea operators objected that it did not address the sector‘s specialised power requirements and varied ship types. They were granted a two-year extension to develop fairer solutions‖ FAIRPLAY SOLUTIONS, July 2013, pp 26-27 The 17

th session of the IMO Sub-Committee of Radiocommunications and Search and Rescue

(COMSAR) ―The 17th meeting of the IMO COMSAR Sub-committee took place at IMO Headquarters in

London from 21st to 25

th of January 2013. IALA was represented by the Deputy Secretary General. In

order to carry out its work, the Sub-Committee established working and drafting groups covering technical matters related to maritime communications, Search and Rescue (SAR), e-Navigation and LRIT, and the development of a mandatory Polar Code. The meeting considered the need for changes to IMO resolutions A.705(17) and A.706(17) which are concerned with the Promulgation of Maritime Safety Information and A.706(17), and the World-Wide Navigational Warning Service. The IMO Secretariat will, as a result, prepare draft revisions of these resolutions for submission to MSC 92 later in the year.‖ IALA Bulletin 2013, No.2, pp 42-43

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LAW AND POLICY US regulator targets insurers as new Iranian sanctions kick in - By Craig Eason "As the Iran Freedom and Counter-Proliferation Act 2012 comes into force today, the US financial regulator is already investigating non-US reinsurers said to fail to comply with the new laws against doing business with Iran. According to the Wall Street Journal, New York department of financial services superintendent Benjamin Lawsky has written to 20 non-US firms after a year-long probe found evidence that at least three non-US firms have insured shipments to Iran in that time. The new law expands the category of activities by non-US persons involving Iran that could end with them facing sanctions and makes it possible to block the property of additional Iran sanctions targets. It specifically targets Iran‘s energy, shipping and shipbuilding sectors and insurers such as P&I Clubs. Sanctions will be imposed on any person who provides significant goods and services, including underwriting services, insurance or reinsurance to or for the benefit of any Iranian person on the specially designated nationals list." LLOYD‘S LIST, 2 July 2013, p 3

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Rocketing 'Costa Concordia' bill threatens to fire further P&I pain – By Jim Mulrenan ―Postponement of refloating until 2014 means shipowners will face a higher reinsurance levy. The cost of removing the wrecked cruiseship Costa Concordia has soared as a result of adverse weather and technical challenges in a development that augurs badly for the cost of protection-and-indemnity (P&I) cover for the world‘s shipowners. The estimate for the wreck removal has risen to $917m, with the total P&I bill reaching $1.17bn, a near 60% increase on previous estimates. The 114,000-gt Costa Concordia (built 2006) had just over $500m of hull cover on top, so the total insurance claims is now $1.67bn, with no guarantee there will not be a further escalation in the cost. Shipowners faced a big rise in reinsurance costs at the February P&I renewal, mainly as a result of the Costa Concordia disaster, with the rocketing casualty bill suggesting there will be a further significant rate hike at the next renewal.‖ TRADEWINDS, 5 July 2013, p 5 Appeal decision keeps Costa Concordia lawsuits in Miami - By Liz McMahon "But ticket terms and conditions could eventually force US cases to Italy. Two lawsuits filed by Costa Concordia passengers will remain in a Florida state court in Miami following the opinion of the 11th Circuit Court of Appeal. The court‘s order affirmed the District Court‘s prior remand order, concerning two cases, Abeid-Saba, et al v Carnival Corporation et al and Scimone, et al v Carnival Corp, et al. The 104 passengers involved in the two cases claim that they were injured when Costa Concordia capsized after grounding close to the Italian island of Giglio. Both cases were initially commenced in the Florida State Court against Carnival as the parent corporation, as well as ship‘s designers and the architect." LLOYD‘S LIST, 8 July 2013, p 2 Shipowners welcome Brussels’ move to ease industry red tape - By Janet Porter "Shipowners have welcomed moves by the European Commission to encourage regional shipping services, while emphasising that more needs to be done to promote intra-European sea transport. Both the World Shipping Council, which represents the world‘s top container lines, and the European Community Shipowners‘ Associations, say the proposals outlined earlier this week by Brussels are a positive development. Central to the initiative are plans to reduce red tape to speed up customs formalities and shorten port delays to improve competitiveness. As part of the effort, the commission intends bringing out, before the end of the year, a proposal to create a harmonised electronic cargo declaration. The so-called eManifest will allow the shipping company to provide in all manifests — intra-EU and extra-EU — information on the status of goods to customs officials." LLOYD‘S LIST, 12 July 2013, p 4 BIMCO issues hull-cleaning clause for charter contracts - By Craig Eason "BIMCO has written a new charterparty clause to help owners and charterers benefit from better hull performance, writes Craig Eason. The clause for hull cleaning has been written, recognising that many vessels are not being operated at the ideal speed to prevent fouling, which then creates water drag. This in turn increases the vessel‘s fuel consumption in order to maintain its service speed. A recent BIMCO circular says that under ―common law and under most standard forms of time charter party, an owner is responsible for maintaining the vessel in a thoroughly efficient state throughout the charter period. This includes a requirement to keep the vessel‘s hull and other underwater parts free from fouling. ―If the owners fail to maintain the vessel and, as a result, the vessel‘s performance is affected, they may be exposed to claims by the charterers for under performance.‖" LLOYD‘S LIST, 16 July 2013, p 9 Shipping tax havens face tougher scrutiny - By David Osler "Increasing scrutiny of tax havens means shipping companies must closely observe local requirements or risk a sizeable retroactive tax bill, while some are likely to relocate their place of incorporation in response, experts have told Lloyd‘s List. The claims come ahead of the scheduled publication today of an action programme designed to curb so-called base erosion and profit shifting, drawn up by the Paris-based Organisation for Economic Co-operation and Development as the precursor to a likely significant shake-up of arrangements in G20 countries. The issue also featured prominently on the agenda of last month‘s G8 summit held in Northern Ireland, at which the UK government pledged its support for greater transparency. Political pressure over the question has been mounting since revelations earlier this year that companies of the stature of Amazon, Google and Starbucks are, in effect, taxed at rates far below those imposed on earners of modest first-world wages. With many countries now imposing austerity policies, there is a growing perception this is not entirely fair. Although the shipping industry is less in the public eye, many larger players currently pay negligible tax bills, either taking advantage of major breaks available through tonnage tax schemes, or registering themselves in low tax jurisdictions. However, Louise Higginbottom, head of tax at corporate law firm Norton Rose Fulbright, said tax havens face increasing pressure to disclose information about the companies they register." LLOYD‘S LIST, 19 July 2013, p 1 Taxing times - By David Osler "The ingenious combination of companies headquartered in the Irish Republic, the Netherlands and some obscure island chain in the middle of nowhere allows massive multinational companies to pay almost nothing in corporation tax. Recent revelations that the likes of Apple and Starbucks hand over less pro rata than a cleaner doing a minimum-wage job have generated

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calls for reform, and tomorrow the Organisation for Economic Co-operation and Development is publishing an action programme to tackle the issue. Whether it will have teeth remains to be seen. In a world where independent sovereign states are free to set their own tax rates, with many countries willing to undercut the first world on the grounds that a small fraction of a large sum is better than nothing, the emphasis is likely to be on transparency. Shipping companies, of course, were among the pioneers of the use of tax havens and, as Louise Higginbottom of Norton Rose Fulbright points out, they will need to be aware of what is going on.‖ LLOYD‘S LIST, 19 July 2013, p 2 'Prestige' condition in the spotlight at Spanish trial – By Jim Mulrenan ―Court told that aframax at the centre of major spill was considered ‗unfit to carry water‘ as class and the tanker‘s flag state defend the condition of the vessel in general and their role in particular.‖ TRADEWINDS, 19 July 2013, p 12 Columbia Shipmanagement fined $10m for US pollution - By David Osler "Two Columbia Shipmanagement entities have been fined $10.4m and placed on probation for four years, in the latest magic pipe case to come before the US courts. The penalties were imposed yesterday on Columbia Shipmanagement (Deutschland) of Germany and Columbia Shipmanagement Ltd of Cyprus by the federal court in Newark, New Jersey. The move follows a hearing earlier this year, at which the Schoeller Group affiliates admitted obstruction of justice and violation of the Act to Prevent Pollution from Ships, after deliberately concealing vessel pollution from four vessels that visited ports in New Jersey, Delaware and California. Some $2.6m of the fine will go to the National Fish and Wildlife Foundation to fund community service projects to restore the coastal environment of New Jersey and Delaware after the devastation wrought by Hurricane Sandy. The remaining $7.8m is designated a criminal fine." LLOYD‘S LIST, 25 July 2013, p 2 Insuring the insurers - By Liz McMahon "It comes as no surprise that the International Group of P&I Clubs‘ reinsurance programme is under stress. The insurance market is still reeling while it counts the mounting costs from the Rena and Costa Concordia losses in the same year. Two extremely different casualties — with one thing in common: nightmarish wreck removals. The disparity between the two incidents more than highlights the overriding concern that many potential casualties could hurt in much the same way. Problems with the availability of salvage equipment, juxtaposed with the continuous growth of vessels — especially in the cruise and container sectors — means this problem has the propensity to get a whole lot worse before anything is done to remedy it." LLOYD‘S LIST, 26 July 2013, p 2

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MARINE TECHNOLOGY Time to act "The slow and, one could hopefully say, steady take-up of scrubbers points to shipowners beginning to trust the technology. Emissions regulations are forcing shipowners to make a decision over fuel choice, but the decision to install abatement technology and then to use a cheaper grade of fuel is a difficult one to make. Even selecting the scrubber set-up once the leap of faith has been made is not easy. Some owners opt for multiple scrubbers and some for one multi-stream system, depending on space and operating profile of engines. Capital cost is as much a concern as the continual operating costs. What has not helped is regulatory uncertainty, due to the international 2018 fuel-availability review and the financial predicament that owners find themselves in." LLOYD‘S LIST, 2 July 2013, p 2 Owners opt for scrubbers as emissions deadlines loom - By Craig Eason "Despite the shipping industry‘s hesitancy, a growing number of shipowners have quietly decided to install an exhaust-gas cleaning system on one or more ships. Recently Finland‘s Wärtsilä, Sweden‘s Alfa Laval and Norway‘s Clean Marine have all won commercial orders to install systems either into newbuildings or existing vessels. Installations are planned on vessels owned by Color Line, Wilh. Wilhelmsen, AET Tankers, DFDS and a number of passenger vessels. Scrubbers have been around for years, used frequently on land-based power stations where environmental regulations have forced energy companies to install equipment to clean up the air to avoid damaging human health and the environment." LLOYD‘S LIST, 2 July 2013, p 7 Scrubber 101 - By Craig Eason "An exhaust-gas cleaning system is used to remove the sulphur oxides from the exhaust of a ship‘s engines. They do this by passing a medium through the exhaust gas, which extracts the SOx and particulate matter, leaving the exhaust gas within internationally permissible standards. Sulphur is found in ships‘ fuel. Another method to reduce the sulphur emissions to permissible levels is to use a fuel without sulphur in it, such as distillate fuels, liquefied natural gas or possibly methanol. Due to the scrubber‘s role in cleaning exhaust gas, it has to be located after the engine and more likely in a ship‘s funnel. For retrofitting in smaller vessels, this may raise questions of stability, due not only to the system‘s weight, but also the mass of water that is then constantly being sprayed through

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the unit. In its 2012 guide, UK-based class society Lloyd‘s Register estimated the overall weight of a 20MW system to be around 200 tonnes when all factors are taken into account. There are three main types of scrubber: a dry scrubber; a fresh water, closed loop scrubber; and a seawater open-loop scrubber. Some manufacturers have combined the latter two to into a hybrid unit." LLOYD‘S LIST, 2 July 2013, p 7 Small-scale FLNG grows – By Crystal Chan ―The development of LNG bunkering could encourage investments in small- and medium-scale floating LNG (FLNG) projects. While Shell‘s Prelude in Australia is the world‘s first FLNG project, it is a large-scale facility catering to LNG carriers. On the other hand, LNG bunkering would require facilities that would enable many smaller commercial ships to be bunkered simultaneously. Demand for LNG bunkering is set to grow with the introduction of emission control areas (ECAs) in Europe and the United States. Ships approaching these areas are required to use cleaner fuels, such as marine gas oil and LNG.‖ FAIRPLAY, 4 July 2013, pp 16-17 Emissions regulations could make wind a viable option ―Interest in wind-assisted propulsion has enjoyed something of a resurgence as successive rounds of stricter emissions legislation have been introduced and technological advances made in cutting fuel consumption and emissions. The only real unknown is how relevant wind energy as a source of marine power is to modern shipping, current and future trading patterns, and increasingly automated operations. Classification society Lloyd‘s Register is collaborating with several organisations that are developing wind power techno-logy so that the shipping industry can make confident decisions.‖ FAIRPLAY SOLUTIONS, July 2013, pp 28-29 European ferry trial tests methanol fuel to meet emissions legislation ―Stricter emissions regulations are driving engineers to design more vessels equipped to burn liquefied natural gas (LNG), but a project under way in northern Europe is looking at an even more environmentally friendly fuel – methanol. Global production of methanol is estimated to be around 90 million tonnes. With demand currently as low as 45 million tonnes, this provides an opportunity for the marine industry to deploy it as a fuel before other industries decide to, according to Timothy Wilson, principal specialist at classification society Lloyd‘s Register Fuel Oil Bunker Advisory Services. First conversion of marine diesel engines capable of operating directly on methanol is expected in 2014. Lloyd‘s Register expects to publish rules and regulations for the use of methanol as a fuel in the same year.‖ FAIRPLAY SOLUTIONS, July 2013, pp 31-32 Technological risks must be managed early – By John Pagni ――Managing uncertainty is challenging but not rocket science. In the best case it is an opportunity, at worst it is a risk,‖ said Jan Virtavuori, Wärtsilä risk manager, in a recent webinar on managing uncertainty in the maritime market. The session outlined the risks inherent in the current marine regulatory environment, as well as regulations to come. The risks discussed were technical, operational, financial, reputation, and health and safety, which are defined by ISO but are not yet certifiable. Edward Fort, Lloyd‘s Register (LR) global head of engineering systems, who presented the keynote address, said rules and regulations had traditionally been conceived because of accidents or incidents, but this model is changing. ―Sustainability is the greatest challenge. Safer, cleaner, more efficient ships need new materials, technologies, and designs. And of course they cannot be sustainable unless they are cost effective.‖ FAIRPLAY, 11 July 2013, p 26 MOL tests new NOx system - By Damian Brett ―MITSUI OSK Lines is to install and test a new system to reduce NOx emissions to meet regulations to be implemented in 2016. The Japanese carrier plans to install the selective catalytic reduction system, which it developed jointly with Namura Shipbuilding, on the three power generators of one of its freighters. The test aims to demonstrate that NOx denitration under real operations will meet the International Maritime Organization‘s 2016 Tier III NOx regulations.‖ LLOYD‘S LIST, 10 July 2013, p 7 California pushback on ballast water standards – By Eric Martin ―The shipping industry has received a brief respite from strict ballast water standards in California but some complain that the state stopped far short of aligning its rules with nationwide standards. The California State Lands Commission (CSLC) suggested a two-year pushback in implementation of the performance standards following a study to determine whether they can even be met by available shore-based and shipboard technology. In addition to finding no shore facilities anywhere in the US, ―the commission concludes that no shipboard ballast-water treatment systems are currently available to meet all of California‘s performance standards for the discharge of ballast water‖, the CSLC report says.‖ TRADEWINDS, 12 July 2013, p 31 Two-year plan to develop hull performance standards - By Craig Eason "Proposal will help owners to judge hull coating makers‘ competing eco-claims. Work has started at an international level to find voluntary standards to define ships‘ hull and propeller performance. The work, with the International Organisation for Standardisation (ISO), is seen to be important as it may offer more clarity over fuel-saving claims and performance statements from coatings manufacturers and other firms touting their

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products as greener and more fuel-efficient. The standards could also help a growing number of bodies seeking ways to measure overall ship efficiency, although the group developing them is keen for the standards to be seen first as a commercial tool that will benefit and be accepted by the industry. The work involves more than five shipowners and four class societies, some nine manufacturers of hull coatings and 10 monitoring companies, as well as one propeller maker and a second one being recruited. Trade groups BIMCO and Intertanko are also participating." LLOYD‘S LIST, 16 July 2013, p 9 All eyes on outcome of 2018 fuel availability study - By Craig Eason and Hal Brown "Inadequate low-sulphur stocks may lead to deferral of 2020 deadline Owners concerned they will have too little time to react to conclusions of study. Shipping is lurching through this era of emission legislation with uncertainties that not only impact shipowners, but also fuel suppliers, technology companies and refiners. While there is certainty that vessels operating in an emission control area will be required to use fuels that have a sulphur content of less than 0.1% after January 1, 2015, there is less certainty over the 2020 deadline that sees the global limit drop from 3.5% to 0.5%. The fuel availability study, which was written into the 2008 amendments of the emissions rules of the International Maritime Organization, is currently being planned. Annex VI of the marine pollution regulations says it should be completed by 2018. According to most of the shipowner associations, this is much too late. They believe it will give too little time for owners to react to the study‘s conclusions." LLOYD‘S LIST, 25 July 2013, p 6 LNG — bunker fuel of the future - By Craig Eason "It would seem that everywhere you look, there is a government project viewing the potential to build up the capabilities to supply liquid natural gas bunkers to shipping. LNG has become the buzz word for greener shipping and on paper, it is simple to understand why. The fuel is relatively cheaper than distillate fuels, the fuel type it is set to compete against in the future, and it has much lower harmful emissions than any of the fuels sourced from crude oil. Additionally, shipborne operations with LNG are a lot more straightforward than with heavy fuel oil. Strict safety regulations mean the LNG cannot readily leak — a concern not seen with heavy fuel oil bunkers, with engine rooms using the latter tending to be much messier as a result. LNG also requires much less pre-combustion preparation compared with HFO, which requires cleaning heating and settling before injection into the engine. Oil-fuelled shipping started only 101 years ago, and with the same lack of bunker supply chain seen with LNG developments, but the chain soon developed. Today, populist pressure is leading to governments to put strong emphasis on cleaning up the environmental impact of transport, and in many cases LNG is the poster boy of this crusade." LLOYD‘S LIST, 25 July 2013, p 7 Distillate dangers and residual problems - By Craig Eason "An industry-wide move to using distillate fuels could lead to increased incidents of engine failure and other mechanical problems if crews are not aware of the dangers. The problems of switching to or from a lighter distillate fuel compared with a heavy fuel oil have been widely publicised, but there are fears these warnings may be going unheeded. The composite difference between heavy fuel oil, which needs to be settled, purified and heated prior to injection into a diesel engines and a lighter distillate, which does not require as much treatment, are quite high. The result is that the distillate, with its lower-sulphur content, is not such a lubricant as HFO, leaving machinery at greater risk of problems. The solution is to select a lubeoil with the right base number, as this reflects the oil‘s viscosity and lubricating abilities. Ships‘ crews also need to be well-versed in the practice of changing over fuel grades when entering or leaving an emission control area." LLOYD‘S LIST, 25 July 2013, p 7 Cheap bunker fuel will do more harm than good - By Hal Brown "Fuels that do not meet specification can lead to engine damage There can be no scrimping on quality, says OW Bunker. Owners and operators tempted by cheap bunker fuel may end up with costly repairs to engines damaged by the low-quality fuel, warns a leading bunker supplier and trader. In an exclusive interview with Lloyd‘s List, OW Bunker global sales director Søren Christian Meyer says the higher price of low-sulphur bunker fuel is leading some buyers to seek ways of cutting costs by purchasing cheaper products that often do not meet the right specifications. ―However, in such cases, technical considerations, including the increased likelihood of engine damage and the ability for onboard purifiers to cope with low-quality, cheaper product are not taken into consideration,‖ he says. ―Ultimately, this could prove far more costly in terms of maintenance costs and downtime.‖" LLOYD‘S LIST, 25 July 2013, p 9 Rightship and IBM use ‘big data’ to aid risk assessment - By Nigel Lowry "Rightship is teaming up with computing giant IBM to overhaul its ship-vetting system to take risk assessment in shipping to a new level through harnessing the power of so-called ―big data‖. The dry cargo vessel-vetting company announced today it has charged IBM, a leader in data-mining services for corporate clients, with launching SVIS 2.0, a vastly more sophisticated version of its Ship Vetting Information System, in first quarter 2014. Public and private sector investment in big data has shot up as data collection increases exponentially, creating new potential for exponents in fields as varied as retailing, science and security. RightShip chief executive Warwick Norman said: ―The tool will enable us to push the boundaries further and we will be

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able to mine a lot more data much harder to identify substandard vessels and keep them out of our customers‘ supply chain.‖" LLOYD‘S LIST, 29 July 2013, p 2 Bridging the divide between research and shipboard equipment - By Craig Eason "New arrangements are sought to bring innovative maritime ideas into shipping more readily, tackling industry reluctance to embrace new technology. The plan is to launch a public-private partnership between marine technology companies, European institutions and the shipping industry to bring innovation more readily into shipping. Innovation in shipping often hits a stumbling block when it comes to market acceptance. Owners expect all shipboard technology and machinery to have the durability to withstand harsh environments, yet to be simple to operate. Meanwhile, technology companies that have invested heavily in research and development to create solutions to meet the challenges of the marine environment are keen to achieve a return on investment through sales. R&D funds, however, do not only come from suppliers‘ own reserves, but also from state and supranational funds, particularly when it concerns environmental solutions. The European Commission offers research and development funds through a range of different project structures over several years, but there is often a big gap between what can be seen as academic or scientific research and how it can become real solutions benefiting shipowners." LLOYD‘S LIST, 30 July 2013, p 9

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MARITIME SAFETY MSC pushes Italy for more Costa Concordia information - By Liz McMahon "The International Maritime Organization‘s 92nd Maritime Safety Committee has focused on passenger ship safety, following the Costa Concordia casualty, choosing to amend the International Convention for the Safety of Life at Sea. Solas regulations now require musters of newly embarked passengers before or immediately on departure, instead of within 24 hours, as the current regulations state. The amendments are expected to enter into force on January 1, 2015. The committee approved new measures to enhance the safety of passengerships that include harmonising bridge navigation procedures across a fleet or fleets, securing heavy objects, stowing life-jackets, extending the use of video for passenger emergency instruction notices and following voyage-planning guidance in the event of deviation. On the investigation into Costa Concordia, the committee invited Italy to provide more information regarding the recommendation for double-skin protection of watertight compartments containing equipment. It also endorsed the view that shoreside management is critical to developing and running an effective safety management system and invited member states to consider the mandatory application of evacuation analysis to non ro-ro passengerships. The MSC also invited the flag state implementation sub-committee to consider the Costa Concordia accident investigation report and to submit detailed comments and proposals to the next MSC session." LLOYD‘S LIST, 2 July 2013, p 5 Box clever "The International Association of Classification Societies has promised to look at how big boxships are designed, built and operated. We must hope, in the light of recent incidents, along with liner companies‘ belief that bigger is better, that the research is robust, open and honest. The ongoing concern over the MOL Comfort, a five-year-old vessel that suddenly split in two in a storm, and the well-documented report on why MSC Napoli had to be grounded deliberately once the vessel buckled, are simple reminders that something, somewhere is going wrong. Class societies have an important role safeguarding the high values of ship safety, environment safety and the lives of those who live and work on ships." LLOYD‘S LIST, 4 July 2013, p 2 Class societies to examine post-panamax boxship design - By Craig Eason & Liz McMahon "The International Association of Classification Societies has set up a working group to look at structural and design issues around post-panamax containerships. The new work was proposed at the official handover of the IACS chairmanship from Lloyd‘s Register head of marine Tom Boardley to Roberto Cazzulo, chairman of Italian class society Rina. The work comes amid a growing trend towards building oversized vessels and incidents in recent years in which ships have bent or broken in two. The recent MOL Comfort casualty saw a loaded vessel, only five years old, split in two as it sailed through a storm in the Indian Ocean. Elsewhere, the 15-year-old MSC Napoli buckled as it tried to sail in the English Channel, eventually being beached on the southern England coastline to prevent a major incident." LLOYD‘S LIST, 4 July 2013, p 3 MOL Comfort casts shadow over Japanese maritime reputation - By Max Lin "MOL, MHI and ClassNK should redeem themselves by releasing the full results of their investigation. For Japan‘s proud maritime cluster, MOL Comfort is probably their most unwanted problem child. The 8,110 teu, 86,692 gt vessel was one of the six same-type vessels that Mitsubishi Heavy Industries built for Mitsui OSK Lines in 2007-2008, classified by ClassNK. Back then, the series was hailed as the first using high-tensile strength

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steel, jointly developed by the yard and Nippon Steel under ClassNK‘s standards. In a company report dated in 2007, MHI proudly claims: ―This steel possesses both high strength and high toughness, which has made it possible to substantially improve the reliability of the hull structure of mega container ships against brittle fractures. ―In addition, its weight-reducing effect has also contributed to improvement in propulsive performance and cargo loading efficiency.‖ On June 17, MOL Comfort split in two off Yemen with AIS data showing it had sailed at 18 knots into a storm. Initially, the two sections maintained a surprising degree of balance on the water. A cross-section of the fractured ship seemed to suggest a relatively clean break. However, after 10 days, the stern part surrendered to rough seas and sank in 4,000 m of water, with 1,700 containers and 1,500 tonnes of bunker fuel on board. The threat to sea life and maritime safety is severe." LLOYD‘S LIST, 4 July 2013, p 7 Safety regulations in the spotlight – By Girija Shettar ―So-called soft topics have finally come under scrutiny by regulators. The Future of Ship Safety Symposium was a two-day conference that preceded IMO MSC92. It was a rare opportunity to discuss safety and the human element, which are often pushed aside. Delegates said regulations must address seafarer training and welfare, which are areas that put ships at risk. However, Intertanko MD Katharina Stanzel recommended a kind of risk-based approach, saying regulators must ―take into consideration the burden that any new or changing regulation places on our seafarers and how we can minimise that‖. She made her point effectively, asking if anyone had experienced problems switching from Windows XP to Windows 8 (most had), and then asked participants to consider the difficulties of switching to a ―fully instrumented bridge‖ with new or updated systems that seafarers would have to master. She said the training requirement for this kind of upgrade ―is quite daunting, in my view‖.‖ FAIRPLAY, 4 July 2013, p 25 MOL appoints Lloyd’s Register as technical consultant on casualty - By Mike Wackett and Max Tingyao Lin "Mitsui OSK Lines has appointed London-headquartered class society Lloyd‘s Register as a ―technical consultant‖ to determine the cause of the MOL Comfort incident. MOL said it would ―seek LR‘s counsel about measures to determine the cause and to reinforce the safety of sister vessels‖. It has already been announced that MOL, the ship‘s class society ClassNK and its builder Mitsubishi Heavy Industries would investigate the cause of the casualty and the safety of six sister vessels of MOL Comfort. Currently, those ships are either withdrawn or due to be withdrawn from G6 services to enhance hull strength as a precaution. LR, which has provided consultancy to more than 100 containerships larger than 8,000 teu, is expected to offer external advice to the ongoing investigation. The sister vessels will remain classified by ClassNK." LLOYD‘S LIST, 5 July 2013, p 5 Three eyes good? - By Craig Eason "There will now, it seems, be three separate investigations into how the five-year-old containership MOL Comfort managed to split in two. Mitsui OSK Line has the vessel‘s class society, Class NK, and shipbuilder Mitsubishi Heavy Industries looking at possible causes. Now, the owner has also brought in UK class society Lloyd‘s Register to act as a technical consultant. Meanwhile, the Bahamas Maritime Authority, with which the vessel was flagged, is expected to conclude its own investigation and submit a report to the International Maritime Organization. In a statement, IMO secretary-general Koji Sekimizu acknowledged efforts by the Bahamas‘ government to launch a marine safety investigation into the casualty and said he looked forward ―to the submission of any findings and recommendations at the earliest opportunity‖. It is only the Bahamas investigation that will be fully open to scrutiny once its findings are delivered to the IMO." LLOYD‘S LIST, 5 July 2013, p 5 Regulators green light proposals in Italy's 'Costa Concordia' report – By Adam Corbett ―Last week‘s Maritime Safety Committee (MSC) meeting at the International Maritime Organisation (IMO) selected a series of safety proposals from the Italian investigation into the January 2012 loss that it wants to take forward. The measures mostly apply to newbuildings but some involve existing ships and will be further assessed for possible adoption. One of the main changes to cruiseship construction is a proposal for a double skin that will protect watertight compartments containing vital electrical and propulsion equipment. But the IMO has asked for further information from the Italians on factors such as the depth of penetration of the Giglio Island rocks into the hull of the cruiseship before it takes a final decision. The IMO is also ready to consider that new ships should be built with a discontinuity between compartments that contain essential navigation and propulsion equipment. It will also look at possible changes to bilge pump capacity and distribution. The IMO also wants to explore a new limit on down flooding points on the bulkhead deck and there is also a recommendation that new cruiseships should be built with the provision of a second emergency diesel generator. Evacuation analysis may also become mandatory at the early stages of a newbuilding projects, while improved stability and flood monitoring equipment is being suggested for existing ships.‖ TRADEWINDS, 5 July 2013, p 34 Class set to get to grips with mega boxship safety – By Adam Corbett ―The International Association of Classification Societies (IACS) is to review post-panamax containership safety following the dramatic loss of the 8,110-teu MOL Comfort (built 2008). The biannual IACS Council meeting last week agreed to set up a working group into containership safety that will look at all aspects of the sector for which vessels

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up to 18,000 teu are being built — more than double the size of the MOL Comfort. Roberto Cazzulo, who took over the chairmanship of IACS last week, told TradeWinds he is concerned over the loss. ―We have set up an internal multidisciplinary expert group to look at the issue of post-panamax containerships from different angles. This will include factors such as design and verification and hydrodynamics, as well as operational issues such as cargo weight and loading,‖ he explained. ―All IACS members will participate and it is intended to provide Council and IACS with recommendations identifying areas of impairment,‖ he said.‖ TRADEWINDS, 5 July 2013, p 34 European research to review safety on board vessels ―A three-year European research project, part funded by the European Union, will look at how crew can reduce maritime accidents through better interaction with machines on the bridge. Almost 80% of collisions and groundings occur because of a failure to use bridge systems properly. The project uses safety-based scenarios to investigate bridge procedures. The researchers will use CASCADe, (Model-based Co-operative and Adaptive Ship-based Context Aware Design) to develop an adaptive bridge system that will recognise, prevent and recover from human errors. The main outcome will be a new human-centered design methodology that will support the analysis of agent interactions at early design development stages.‖ FAIRPLAY SOLUTIONS, July 2013, p 11 IACS tackles the challenge of ever-larger ships - By David Osler "The International Association of Classification Societies plans to step up collaboration in response to the arrival of ever-larger ships, even as members remain very much in competition with one another, the body‘s incoming president has revealed. In an interview with Lloyd‘s List, Roberto Cazzulo said the case for a central technical body dedicated to maritime safety remained undiminished, despite moves by affiliates to merge, diversify away from pure maritime activity or seek initial public offerings. Mr Cazzulo, chairman of the services division of Italian class society Rina, rejected suggestions that commercial considerations had made IACS members reluctant to share information garnered from a spate of recent high-profile casualties. Safety was the priority at all times, he said. ―Today, IACS is very much transparent because it publishes any rule, with the technical background, for possible use by other interested parties,‖ he said. ―If I go back to the history just a few years ago, the level of transparency that is given now, it was not there in the past." LLOYD‘S LIST, 8 July 2013, p 1 ClassNK stands by MOL Comfort design - By Craig Eason "Japanese class society ClassNK has said a review of the MOL Comfort design and plan approval process has shown they were fully compliant with ClassNK rules, as well as regulations agreed through the International Association of Class Societies, writes Craig Eason in Stockholm. Its comments support those made earlier by owner Mitsui OSK Lines. The five-year old MOL Comfort split in two in heavy weather last month and tugs are still struggling to tow the remaining forward section to a safe port. The vessel, and six other vessels of a similar design, were some of the first to be approved to be constructed using new high tensile steel. As a precaution MOL has withdrawn six sisterships from service. ClassNK said its investigation team continues to co-operate with MOL, the shipbuilder Mitsubishi Heavy Industries and the Japanese government to determine the cause of the casualty. ClassNK said that as well as reviewing its own plan approval process, a similar review was also made of the special survey of the vessel completed in May this year, showing it was carried out in full compliance with the regulations and guidance for special surveys, with no abnormalities being noted and the vessel remaining in full compliance of class requirements." LLOYD‘S LIST, 8 July 2013, p 2 IACS to show some class - By Michael Grey "When you face some worrying aspect of marine safety such as large containerships breaking in half, you need the most comprehensive technical firepower available. So it was good to hear that the International Association of Classification Societies moved speedily to establish an expert group on containerships, even before the salvage teams hauled the surviving forepart of MOL Comfort to sheltered waters. What IACS can provide, said its new chairman Roberto Cazzulo of Rina, is a ―collective approach‖ to technical knowledge on every aspect of this worrying casualty." LLOYD‘S LIST, 8 July 2013, p 4 All power to class societies as IACS pursues common structural rules - By Craig Eason "The announcement that the International Association of Classification Societies would bring together experts to look at containership design, construction and operation is a welcome, but certainly not surprising, development. Liner companies such as Maersk Line and CMA CGM continually out-compete each other in size, in a dizzying attempt to keep container slot prices competitive. The trend has been relatively sudden, with 6,000 teu vessels such as Regina Maersk rapidly replaced by 10,000 teu, 15,000 teu and now 18,000 teu-plus vessels. Emma Maersk and CMA CGM Marco Polo are being superseded by Maersk Mc-Kinney Moller which, in turn, will be beaten by larger yet-to-be-delivered vessels from China Shipping. The huge amounts of steel and design restrictions do not seem to be a problem. As class societies have been active in the design approval process for these behemoths, it should be welcome news that they are to come together within IACS to discuss common issues. Now, though, there is the issue of the five-year-old MOL Comfort splitting in two for yet-to-be-determined reasons." LLOYD‘S LIST, 8 July 2013, p 5

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Industry Viewpoint: How many eggs are safe in one basket? - By Michael Grey "The sad saga of MOL Comfort has reached its predictable end, with both halves of the severed ship many thousands of feet deep in the Middle East Gulf. With it may well have gone any chance of reaching firm forensic conclusions about why the largest containership lost to date broke in half. Whether we should blame weights, weather, fatigue, a fault in design or construction, or the formula of high-tensile steel with which the ship was apparently constructed, or a combination of factors, a definite conclusion is now far less likely." LLOYD‘S LIST, 22 July 2013, p 4 Symposium urges IMO safety review ―The IMO Symposium on the Future of Ship Safety, held at IMO Headquarters in London has recommended that the organisation carries out a full review of the existing regulatory regime. Participants advised IMO to consider how to improve data collection to support monitoring and development of safety regulations; how to better integrate risk-based methodologies and the latest analysis techniques into safety regulations, ways of encouraging a safety culture beyond mere compliance, and taking into account and minimising the burden any new or changing regulations place on seafarers.‖ MER, July/August 2013, p 7

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MARITIME SECURITY AND PIRACY West African states sign anti-piracy code The 22 signatory states - By Liz McMahon "Piracy in the Gulf of Guinea has hit the global news agenda at last, after African leaders signed an anti-piracy code and as the issue dominated discussions at the International Maritime Organization‘s 92nd Maritime Safety Committee. Although West African piracy is not new, it has been overshadowed for the last few years by attacks off east Africa. Now, however, as pirates operating in the Gulf of Aden face a combined offensive from international efforts, best management practices, capacity building and guns on ships, the world has turned its attention to attacks off West Africa. The African leaders agreed a code of conduct to adopt a regional strategy against piracy and other illegal maritime activities off West Africa." LLOYD‘S LIST, 2 July 2013, p 5 The fight against regional piracy needs greater resources - By Liz McMahon "Many industry sources question whether West African nations‘ plea for international support in the fight against piracy will be answered. Last week‘s summit of West and Central African leaders in Yaoundé, Cameroon, culminated not in an agreement to allow private armed guards into the region, but with the signing of an anti-piracy code and a call for an international naval force to forcibly confront piracy, similar to that launched in the Gulf of Aden in 2008-2009. C-Level Maritime Risks founder Michael Frodl doubts this will persuade the US, the European Union or even the UN to respond positively, however. The Gulf of Guinea is not as strategic as the Gulf of Aden, he said, and the navies that responded five years ago to the call to Somali waters have since faced serious budget cuts." LLOYD‘S LIST, 2 July 2013, p 5 Unwanted weapons pile up at Mombasa as attacks fall - By Liz McMahon "More than 7,000 firearms are gathering dust at the port of Mombasa as private maritime security companies struggle to move their weapons from base to base and as falling numbers of pirate attacks off Somalia have left firms scrabbling for business. However, critics have questioned the legitimacy of the abandoned weapons and are urging shipowners to exercise due diligence when it comes to PMSC firearm licensing. PMSCs are required by law to surrender their weapons on arrival before they go onto the mainland and most alight at Mombasa to allow for offloading cargo, a common practice at ports. The result, Kenya‘s inspector-general of police David Kimaiyo told local newspapers including The Star this week, is that the port now has a backlog of more than 7,000 pieces of weaponry. Unless PMSCs collect their weapons, he said, the arms will be taken to Nairobi to be destroyed. Eos Risk managing director David Johnson attributed the pile-up to dwindling business in the Gulf of Aden." LLOYD‘S LIST, 4 July 2013, p 1 West Africa code must excel in intelligence - By Girija Shettar ―The new code, signed last week by 22 states, is said to be a beefed up version of the Djibouti Code, addressing additional issues specific to the region‘s problems, such as fishing, drug and weapons smuggling, and people trafficking. Its broader remit will make it more expensive than the 2009 Djibouti Code, which has so far received about $14M from the international community for capacity building. Data and information sharing features in both codes, but considering the innovative kind of criminal activity to be addressed in West Africa, this aspect is considered a particularly important part of the new code. With tankers being the vessels most prone to piracy in the region, tanker owner/operator association Intertanko told Fairplay it had high hopes for this part of the agreement. However, some warn that the Djibouti Code is not very effective in this area and that the new code must exceed that performance. ―There is a gap in information sharing in [East Africa],‖

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Glen Forbes, head of OceanusLive, a maritime counter-piracy intelligence provider, told Fairplay.‖ FAIRPLAY, 4 July 2013, pp 24-25 Code Red "The West African nations‘ code of conduct to tackle the scourge of piracy is a step forward. Evaluating what needs to happen beyond that does not negate this important progress. States indicating a wish to co-operate with each other by signing a piece of paper is a start, but as marine security consultant Colin Snowball points out, it requires practical support, not debate. The lack of resources available to West African states means they need international support. However, it is difficult to determine the most productive way to deliver this. Mr Snowball suggests the private maritime security industry could provide training with government backing. This could work as long as there is enough financial support from the international community. The chosen private maritime security companies would have to be of a high standard and an initiative like this would certainly cause a bun fight in an already edgy industry. The answer could lie with information sharing." LLOYD‘S LIST, 5 July 2013, p 2 Weak navies undermine West Africa’s piracy code of conduct - By Liz McMahon "A regional initiative to counter piracy in West Africa will struggle to overcome domestic structural constraints in the next six to 12 months, say maritime security experts. Maritime security professional Colin Snowball says the newly signed West African anti-piracy code of conduct should be seen as an intent to co-operate and is urging international bodies to provide practical support. West African nations lack resources, he said. The Nigerian navy, for example, has few serviceable naval vessels. ―It is a known fact that service and maintenance of any vessel in West Africa, be it naval or civilian, is not good,‖ Mr Snowball said. ―The various navies are not trained in counterpiracy or how to operate on commercial shipping and in particular oil and gas tankers. Although the Ghana-based Marine Co-ordination Centre is slowly becoming established, Mr Snowball called for more co-ordinated support from international bodies. More than 10 projects support various initiatives to tackle maritime security challenges in West Africa, but these are disjointed and depend on availability of funding and have not delivered a coherent approach. ―The key to success is a joined-up strategy, practical support and knowledge transfer,‖ he said.‖ LLOYD‘S LIST, 5 July 2013, p 4 Australia clamps down on cargo crime and corruption - By Jim Wilson "Australia‘s federal authorities have announced a series of moves to harden international trade and protect the country‘s borders against cargo-related crime, corruption and infiltration. Australian justice minister Jason Clare has outlined plans to expand the counter-cargo crime operation into Brisbane by setting up a third taskforce. First came Taskforce Polaris, set up in July 2010 to investigate organised crime on the Sydney waterfront. It has made 44 arrests, leading to 196 charges, and has seized 199 tonnes of illegal tobacco worth A$77m ($70.5m), A$1m in cash and 11 firearms. Next came Taskforce Trident, established in Melbourne in July 2012, which has made 16 arrests and seized 71 tonnes of illegal tobacco, valued at A$61m. Now there is also Taskforce Jericho, modelled on Polaris and Trident, a multi-agency law enforcement initiative to target organised cargo-related crime in Brisbane." LLOYD‘S LIST, 8 July 2013, p 7 A helping hand "The European Union has confirmed that consultations and analytical work are underway to support member states‘ discussion this autumn on the future of Operation Atalanta, including the possibility of extending it beyond December 2014. Without predicting the outcome of those discussions, it is clear that there are very good reasons to extend the mandates of multinational operations in the Indian Ocean. That‘s the view of former UK Counter-Piracy Task Group commander Gerry Northwood, who cites the continuing need for World Food Programme shipments and the fact that conditions on shore are unlikely to have changed sufficiently to prevent piracy recurring. No one has waved a magic wand and made the problem go away; the reasons why vessels are not being attacked in greater numbers and with more success are very clear, not least because the international shipping community been making every effort to halt such attacks for the past five years. Naval patrols have become increasingly effective and shipowners have employed best management practices and hired commercial armed guards to protect their vessels." LLOYD‘S LIST, 9 July 2013, p 2 Gulf of Aden naval support likely to carry on after 2014 - By Liz McMahon "As pirate activity in the Gulf of Aden continues to decline, naval efforts are now focusing on the support that can be provided in the long term and experts expect mandates to extend beyond 2014. However, international navies‘ methods will bear little resemblance to when they first formed to tackle piracy in the Indian Ocean. Over the last five years, operations have become far more sophisticated in terms of intelligence sharing. Recent activity, such as the first onshore attack carried out by Operation Atalanta last year, illustrates how the anti-piracy strategy has evolved to become pre-emptive rather than reactive. The Combined Maritime Forces has announced that warships from six international navies are operating as part of the French-led Combined Task Force 150. The aim of the new project is to encourage maritime security co-operation, in close co-ordination with coastal states and regional partners, in the southern Red Sea, Bab el Mandeb strait and west of the Gulf of Aden." LLOYD‘S LIST, 9 July 2013, p 2

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Albedo sinks after being held for over two years - By Liz McMahon "Malaysia-flagged containership Albedo has sunk after being held by pirates for more than two years, and the fate of its 15 remaining crew is unconfirmed. Albedo was the last large vessel in Somali pirate hands and its crew endured a lengthy incarceration after the 1,066 teu boxship was captured in November 2010 in the Indian Ocean. EU Navfor confirmed the ship, owned by Majestic Enrich Shipping, remained under pirate control when it sank. A warship and maritime patrol aircraft have closed the sea area and are carrying out a search and rescue operation to look for any survivors. Although the whereabouts of the crew are not known, an EU Navfor spokeswoman has reported sightings of a liferaft and a beached lifeboat. Albedo was hijacked with 23 crew on board. In August last year, seven Pakistani hostages were released after a family-led campaign raised a $1.2m ransom." LLOYD‘S LIST, 9 July 2013, p 2 Togo Navy impacts piracy ―After a period of five months in which no pirate activity occurred in the Lome anchorage off the coast of Togo, a spate of four attempted attacks took place in May 2013 over a period of 12 days, piracy expert Dr Dave Sloggett told P&H. Each of the four attempted attacks off the coast of Togo in May 2013 was thwarted by the efforts of on-board security guards or the attendance at the scene by the Togo Navy.‖ PORTS AND HARBORS, Jul/Aug 2013, p 36 Albedo will be left to rot and crew’s families will receive no payout - By Liz McMahon "It is likely that families of the Albedo crew, held by Somali pirates since 2010, will receive no compensation, while the vessel is left to rot close to the Somali coast, according to insurance industry sources. Hull and machinery or possibly war-risk underwriters would have already paid out a total loss, several insurance experts agreed. Cargo claims from the Malaysia-flagged containership would probably have been paid by cargo underwriters given the length of time since the original seizure, the sources said. Ince & Co partner Stephen Askins said it was possible the hull had not been covered at all, based on the fact that no ransom was paid by the vessel‘s owner, Majestic Enrich Shipping. EU Navfor confirmed Albedo was sinking on Monday but has issued no further statements regarding casualty numbers. There are 15 crew members on the vessel unaccounted for. Following a phone conversation with a pirate, Reuters has reported that four crew members and seven pirates died while the vessel was sinking." LLOYD‘S LIST, 11 July 2013, p 5 Is the German armed guard accreditation worth it? - By Michael Karschau "From December 1 this year, companies offering security services for German-flagged vessels need to be licensed by German authorities. This costly and demanding accreditation surpasses the new industry standard ISO PAS 28007. Therefore it is important to ask: is the German accreditation worth it? German owners are suffering from the current shipping crisis. Tonnage-tax funded KG entities, the German tax-saving model which gave German owners the third-largest merchant fleet in the world, struggle because the promised revenue targets cannot be reached. German banks are reluctant to grant urgently needed loans. And now the cost for the private maritime security company accreditation has risen to €17,000-€24,000 ($21,800-$30,700). There is a strict requirement to employ teams of four guards with a high standard of training. Can German owners still pay for this? Or will this be the final nail in the coffin for the German flag?" LLOYD‘S LIST, 12 July 2013, p 7 Future of owner sinks along with ship – By Jonathan Boonzaier ―The fate of between 14 and 16 crew members of a Malaysian containership and an unknown number of pirates is unknown. This week‘s sinking of the hijacked 1,022-teu Albedo (built 1993) off the coast of Somalia with an estimated 14 to 16 crew and an unknown number of pirates on board effectively brings to an end the operations of its owner Majestic Enrich Shipping (MES) of Malaysia. The boxship, which was seized by Somali pirates in November 2010, was the only vessel in the company‘s fleet. MES was founded in Penang by Iranian national Omid Khosrojerdi in 2008. Announcements from the company at the time indicated that it was going to acquire ships and operate in the intra-asian liner trades. The Albedo, then named Cape Ann, was its first — and seemingly only —acquisition, despite rumours that a sistership had been acquired in the same deal.‖ TRADEWINDS, 12 July 2013, p 19 Regulating maritime security through the industry ―It is true that those working to provide robust solutions to guard the commercial shipping industry from the threat of piracy have had a positive impact over the past few years. The use of armed guards to protect commercial vessels have been pivotal. Still socio-economic and political conditions across parts of East and West Africa – poverty, poor governance and corruption remain the seedbed for the ever-evolving threat.‖ TANKER OPERATOR, June/July 2013, p 26 Maritime security pact focuses on long-term solutions - By Liz McMahon "India, Sri Lanka and the Maldives have agreed a long-term strategy to address threats to maritime security such as piracy, terrorism and gunrunning in the Indian Ocean. The three countries agreed the move at the Trilateral Co-operation on Maritime Security meeting in Colombo, Sri Lanka. Indian national security adviser Shivshankar Menon met the Maldives‘ defence minister Mohammed Nazim and Sri Lanka‘s defence

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secretary Gotabaya Rajapaksa. They discussed the need for sustainable development of the maritime environment, on which the three countries depend for free flow of trade and energy. It is hoped the agreement will be expanded to include other nations, especially allies on the eastern coast of Africa and Oman." LLOYD‘S LIST, 15 July 2013, p 8 Intelligence firm doubles its Togo risk area as piracy spreads - By Liz McMahon "The general risk area in the Gulf of Guinea has been doubled in Togo and extended in Benin and Nigeria by Bergen Risk Solutions to convey a rise in attacks on international shipping off the Niger Delta since December 2012. The move follows Lloyd‘s Joint War Committee‘s decision to include Togo in its Hull, War, Strikes, Terrorism and Related Perils Listed Areas. However, the Listed Area in the region is defined as Gulf of Guinea, but only the waters of the Togolese, Beninese and Nigerian Exclusive Economic Zones north of Latitude 3° N. In Bergen‘s latest report on activity in the region, the intelligence firm has extended its independent general risk area in Togo from ports and waters extending 50 miles from nearest land to 100 miles. In Benin and Nigeria, the area was increased 50 miles to 200 miles from the nearest land. The report showed that 10 attacks were recorded in April, five in May and four in June. The majority of attacks took place 20-30 miles off Bayelsa and Rivers states. In June, the four incidents occurred farther east — off Akwa Ibom and Cross River states near the Cameroonian border. Three attacks were carried out at great distances from shore in April, setting records for the offshore reach of pirates operating in the Bight of Bonny." LLOYD‘S LIST, 15 July 2013, p 8 Gulf of Guinea pirates target new vessel types - By David Osler "Piracy is becoming a growing problem in the Gulf of Guinea, with 31 incidents and four hijackings so far this year, as attackers broaden their range of targets beyond ships involved in the local offshore sector, according to the latest report from the International Maritime Bureau. Nigeria, in particular, has seen the problem escalate: piracy has reached the highest level seen in modern times, with 22 cases reported in the opening six months of 2013, up from 18 in the same period in 2008. The trend is all the more alarming, given the region‘s systematic under-reporting. The IMB believes this prevents the authorities from tackling the problem and endangers other vessels that then sail into the area of a previous attack unaware that a threat may exist. Pirates are adopting ever more sophisticated techniques, often deploying motherships that include seized offshore supply vessels. If the situation remains unchecked, attacks will become more frequent and more violent, warned Pottengal Mukundan, director of the London-based piracy monitor." LLOYD‘S LIST, 16 July 2013, p 2 North Korean weapons vessel seized in Panama - By Richard Meade ―Panama has detained a North Korea-flagged general cargoship suspected of carrying undeclared weapons hidden in sugar containers. The 14,000 dwt, 1979-built Chong Chon Gang was seized on Monday at the port of Coco Solo with what Panama media reports described as ―undeclared military cargo‖.‖ LLOYD‘S LIST, 17 July 2013, p 2 Once a pirate always a pirate? - By Liz McMahon "Although the heyday for piracy is over, criminal networks that have reverted to other illicit behaviour can easily shift to and from piracy for the right returns, the latest report from the UN Monitoring Group on Somalia and Eritrea has warned. It also warned that any move to relax private security measures and withdraw international naval forces could prompt a new spate of attacks. The UN body noted increasing deployment, as piracy wanes, of unregulated and untrained Somali security guards to provide armed protection on vessels involved in regional trade or fishing. In Mogadishu, local bodies such as Mogadishu Port Authority and the police control this business, it said. Such bodies provide guards,weapons and licences, charging shipping companies $500 a month per armed guard and providing these personnel with one-year licences. In Puntland, however, the enterprise is controlled by private businessmen linked to illicit maritime activities that threaten regional safety and security such as smuggling, illegal fishing and piracy. The monitoring group identified a network of individuals, including known pirate leaders, who provide this type of private security, whose names have been linked to weapons smuggling and to al-Shabaab networks in northeastern Somalia. Such connections enable the regional al-Shabaab leadership to secure a steady flow of weapons and explosives, much of it originating from criminal networks in Yemen, the report said." LLOYD‘S LIST, 19 July 2013, p 2 Somali pirates ‘gather Albedo hostages’ on their remaining captive vessel Naham 3 - By Liz McMahon "Fishing vessel Naham 3 remains under pirate control close to the Somali coast and EU Navfor believes that hostages, including crew from the sunken Albedo, are being held on it. Although numbers cannot be confirmed from the air an EU Navfor spokeswoman said the force believed that the pirate group was keeping hostages below deck. On Wednesday a helicopter from an EU Navfor warship flew over Malaysia-flagged Albedo and Naham 3 , which is tied astern of Albedo‘s visible superstructure. Naham 3 was seized by pirates on March 26 last year with 28 hostages on board. It is the final vessel to remain under pirate control in the region. The helicopter was able to confirm that there was still visible pirate activity on board Naham 3, but there were no sightings of Albedo or Naham 3 hostages on board the

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fishing vessel. EU Navfor could not therefore confirm its suspicion that hostages are being held below deck." LLOYD‘S LIST, 19 July 2013, p 2 Figuring it out "The under-reporting of pirate attacks has been highlighted in the Regional Co-operation Agreement on Combating Piracy and Armed Robbery against Ships in Asia‘s half-yearly report but it is certainly not a new issue to contend with. It is a problem intelligence companies and security firms have been discussing in relation to the Gulf of Aden ever since activity peaked in 2011. Recaap has claimed piracy levels have improved for the first half of this year, with actual and attempted incidents dropping by 11% to 57. However, Dryad Maritime Intelligence said 24 incidents of piracy had not been included in this figure. If they had, it would have taken the number to 81, which would indicate a relatively sharp rise in activity. When the issue was debated with the Gulf of Aden in mind, two reasons were mooted as to why incidents were not being reported: the reluctance of individual vessels to log an incident and difficulties surrounding classifying what actually constitutes a pirate attack." LLOYD‘S LIST, 29 July 2013, p 2 West Africa Guardcon will be published in September - By Liz McMahon "BIMCO is to publish an amended standard Guardcon contract for private maritime security companies operating in West Africa in September, after more than seven months at drafting stage. It told Lloyd‘s List in March that it was considering how to make Guardcon appropriate for operations in the Gulf of Guinea. Legal and contractual affairs chief Grant Hunter said then that he hoped the contract would be published in April. The delay reflects the complexities that surround the use of armed guards in West Africa. BIMCO chief security officer Giles Noakes said all the drafting committees had been consulted and that BIMCO was confirming replies before sending the contract to the documentary committee for sign off. He said the International Group of P&I Clubs had found the amendments acceptable and that certain clubs were already providing cover on similar terms. Port 2 Port managing director Andrew Varney welcomed the revised version of Guardcon. A best-practice model in the region is two unarmed security officers supervising local forces on a vessel. Too many companies are using local forces unsupervised, often at the client‘s behest to drive down costs, he said." LLOYD‘S LIST, 29 July 2013, p 4 Reported piracy levels fall in Southeast Asia - By Liz McMahon "Pirate activity in Southeast Asia during the first half of 2013 has dropped, according to the Regional Co-operation Agreement on Combating Piracy and Armed Robbery against Ships in Asia. However, underreporting of incidents seems to be a problem in the region and Dryad Maritime Intelligence said it had recorded 24 incidents this year that have not been included Recaap‘s half-yearly report. Recaap said 57 incidents, comprising 54 successful attacks and three attempted attacks, were reported during the period of January-June this year, compared to 64 actual and attempted crimes reported during the same period in 2012. It also said the overall severity of incidents reported during January-June had decreased." LLOYD‘S LIST, 29 July 2013, p 5

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NAVIGATION AND COMMUNICATIONS Egypt looks for more revenue as Suez transits decline following unrest - By Mike Wackett "Egypt is seeking to hike up its earnings from the Suez Canal by raising its fees or adding new surcharges, to offset the slump in tourism due to continued social unrest and to bolster the country‘s dwindling coffers ahead of fresh loan talks with the International Monetary Fund. However, the proposed push for more revenue from shipping lines — in addition to May‘s 2.5% hike — comes amid an almost 10% on-year fall in cargo vessels using the waterway in the first quarter of 2013 to 3,929 ships, compared to 4,347 a year ago. There were 106 fewer transits of containerships in the first three months of 2013 at 1,479 vessels — the lowest level in more than three years — as trade between Asia and Europe went into reverse. Disruption to shipping from social unrest and a further increase in fees could be the tipping points that drive ship operators to avoid the canal where schedules permit." LLOYD‘S LIST, 1 July 2013, p 7 China eyes Arctic – By Angela Yu ―With global warming melting sea ice, the Arctic route – running along Russia‘s northern coast and linking Europe with East Asia – is opening for longer periods each year. All kinds of weather forecasting models are adjusting the predictions for ‗ice-free summers‘ in the Arctic Ocean, according to the first symposium of China-Nordic Arctic co-operation, held in Shanghai. Until now it was widely held that the region would experience an ‗ice-free summer‘ in 2100, but now the prevailing view has pulled back to 2030, or as early as 2016 in the most extreme conditions. Should such ice-free scenarios eventuate, the Arctic route will share a large part of shipping trade between Asia and Europe. Xia Zhang, head of the polar strategic laboratory, Polar Research Institute of China, told the symposium that of the three prime oceangoing vessel types – container ships, tankers, and bulkers – container ships are the most likely choice for use by China on the Arctic route.‖ FAIRPLAY, 4 July 2013, pp 22-23

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ENC Calls for aggressive Galileo Launch Schedule ―At the European Navigation Conference in Vienna, Austria in April, the call went out: Galileo, the European Global Navigation Satellite System (GNSS) needs to turbocharge its launch schedule, to provide full operational capability by 2015.‖NAVIGATION NEWS, Jul/Aug 2013, p 4 South Korea to Install eLoran by 2018 ―In a surprise additional presentation at the ENC in Vienna, it emerged that South Korea plans to install eLoran as a countermeasure to GNSS jamming from the North. It has been well known in shipping circles for some time that with the understood vulnerabilities of GNSS signals (a weak signal spread over a wide area is easily and cheaply jammed, or more terrifyingly spoofed, so vessels don‘t know their positions are inaccurate), Earth-based enhanced Loran, or eLoran, systems are robust and have entirely different failure modes to satellites systems, making them largely ideal complementary navigation systems in the event of GNSS interference – either natural or malicious.‖ NAVIGATION NEWS, Jul/Aug 2013, p 5 UK acts to counter jamming of global positioning systems - By Hal Brown ―The UK government has granted approval for seven ship-positioning technology stations built along the country‘s south and east coasts to ensure safer navigation for ships. The stations aim to counter the threat of jamming of global positioning systems and to set a benchmark across the globe, say the project‘s stakeholders. The stations will provide alternative position, navigation and timing information to ensure that ships equipped with eLoran receivers can navigate safely if GPS systems fail.‖ LLOYD‘S LIST, 17 July 2013, p 12

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POLLUTION/ENVIRONMENT Brussels’ latest CO2 plans meet lukewarm reaction - By Craig Eason "Shipowners‘ associations have responded cautiously to news that the industry is to be subject to European rules on monitoring and reporting carbon dioxide emissions, but said it would be better if European Union member states were given more substantial input into international debates. The European Commission has announced its desire to create legislation making all ships of 5,000 gt and over, coming to or from a European port, monitor, report and verify their CO2 emissions. Both BIMCO and the International Chamber of Shipping have responded by saying that the commission‘s move is generally welcome, as it remains in line with similar developments at the International Maritime Organization. BIMCO deputy secretary-general Lars Robert Pedersen said the devil would be in the detail, while ICS secretary-general Peter Hinchliffe said it was positive to see the commission reinforcing its desire to find a global solution through the IMO, and the 2018 introduction of a Brussels scheme gives the IMO plenty of time to work on an international solution." LLOYD‘S LIST, 1 July 2013, p 1 Carbon-capping schemes spread to emerging markets - By Craig Eason "Reports that Brussels wants the European Union to be the test bed for the International Maritime Organization‘s desire to measure shipping‘s CO2 emissions annually may be true, but the European Commission is not renouncing its desire to bring shipping into its own emissions trading scheme if the IMO fails to deliver. The commission‘s proposals to mandate that all ships over 5,000 gt sailing to, from and between EU ports should report their CO2 emissions from 2018 is similar to US proposals being discussed at the IMO. However, the commission has made it clear that although it will work more closely with the IMO to find an international solution to further curb CO2, it will go it alone if the IMO continues to procrastinate and fails to deliver concrete proposals. It has taken a similar stance with international aviation, though it had its fingers burned when it introduced aviation into the ETS last year." LLOYD‘S LIST, 1 July 2013, p 5 Tiny plastic bead nightmare adds to massive 'Rena' bill – By Jim Mulrenan ―The Swedish Club is picking up the bill for a huge operation around the Bay of Plenty to recover millions of beads from the lost boxship, which are visually intrusive but chemically inert, at a cost so far of $10m. Tiny plastic beads are proving a headache as the Swedish Club tries to bring one of the most costly casualties of recent years to a conclusion. There were four containers of the low-density polyethelene beads destined for bean bags and manufacturing into everyday objects onboard the 3,032-teu Rena (built 1990) when the vessel grounded and subsequently broke up in 2011. The beads were in 25-kilogram sacks so there are many millions of them and the New Zealand authorities would like every one that is found removed.‖ TRADEWINDS, 5 July 2013, p 30 US to revamp ballast water reporting for foreign vessels ―Foreign vessels entering US waters would see their ballast water management reporting burdens reduced under a proposed rule. The proposal, from the US Coast Guard (USCG), would allow vessels entering the United States from outside the exclusive economic zone to submit ballast water reports after arrival at the port of destination. Current rules require vessels to submit ballast water management reports 24 hours before arrival and predict their ballasting

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operations, a procedure that requires owners and operators to later revise and resubmit their reports with the actual ballasting information. The USCG estimates that an average of 10,717 reports are amended and resubmitted every year for this reason. Because the new procedure would greatly reduce the need to file amended reports, it would save the industry an estimated $184,868 in administrative costs annually.‖ FAIRPLAY SOLUTIONS, July 2013, p 11 EU proposes regional emissions plan ―The European Commission (EC) has taken its first step towards setting the shipping industry mandatoryCO2 emission reduction targets in the European Union. On 28 June it unveiled draft legislation that will require shipowners to monitor and report annually the CO2 emissions of all vessels over 5,000gt calling at EU ports. The commission wants the legislation to come into force in 2015 but with the monitoring and reporting requirement applicable from 1 January2018.‖ FAIRPLAY, 11 July 2013, p 25 Europe and Asia join forces in bid to stave off emissions plan delays – By Adam Corbett ―A group of developed countries are attempting to block changes to upcoming emissions regulations and prevent further delays to the International Maritime Organisation (IMO)‘s environmental programme. The European Union (EU), Japan and South Korea are among those now gathering forces to vote in unison against the already approved changes, which would delay the introduction of tough new limits on nitrogen oxide (NOx) emissions from 2016 to 2021. The delay to the Marpol Annex VI NOx code Tier III limits was agreed at a recent Maritime Environment Protection Committee (MEPC) meeting following a proposal by Russia. It argued it would be too costly to meet the Tier III limits and the technology is not yet available. Both Japan and Korea, major shipbuilding and engine-manufacturing nations, are upset because of the massive investment that has already been made to develop technology to meet NOx limits by the original 2016 deadline.‖ TRADEWINDS, 12 July 2013, p 30 Capturing CO2 data is no easy task - By Craig Eason "When the European Commission revealed its plans to monitor shipping‘s carbon dioxide emissions from 2018, it trod very carefully, amid fears about how various parts of the industry would react. Brussels seeks to bring all parts of industrial Europe under some form of regulation that will lower the European Union‘s overall CO2 emissions. However, that aim is a controversial one that has yet to work as well as supporters may have hoped. Shipping is no exception to this plan, even though its contribution to CO2 emissions is relatively low at about 3% of the total. The argument is that as other regulations take effect in other industries, shipping‘s emissions will increase as a proportion of the total." LLOYD‘S LIST, 23 July 2013, p 7 Working better - By Craig Eason "The UK P&I Club has warned shipowners about the need to stay on the ball regarding the ballast water convention. As with many environmental rules that are coming into shipping, the aim may well be to reduce the impact of the industry on the marine environment, but it also comes at the cost of increased paperwork and shipborne responsibilities. The ballast water convention is more than the installation of a never-seen-before shipborne technology; it also features the addition of record books and management plans that focus responsibility on the crew. Ships‘ crews, already pressurised due to reduced numbers, have seen paperwork chains spring up on a range of topics relating to safety and environment in recent years." LLOYD‘S LIST, 30 July 2013, p 2 UK P&I warns over ballast water rule complacency - By Craig Eason "Shipowners are being warned not to take a relaxed approach to the pending rules on ballast water-treatment just because regulators are looking at easing a potential bottleneck over technology installation. The UK P&I Club has warned owners and operators that while the International Maritime Organization is deliberating over a potential easing of the requirements for owners to have a treatment system immediately installed on every existing vessel when the convention comes into force, it does not mean a lengthy period of non-compliance, and other issues relating to training and record-keeping need to be considered. The convention will come into force a year after flag states representing 35% of the global fleet have ratified it in their own regulations. According to the latest data from the IMO website, the percentage of the global fleet currently represented by the 37 signatories stands at 30.3%. If one major flag state with more than 4.7% of the global fleet registered ratifies the convention this year, it will come into force by the end of next year. Many newbuildings will need to be delivered with systems installed and, pending a final decision at the IMO later this year, existing ships may have until their next scheduled drydock to have a treatment system on board." LLOYD‘S LIST, 30 July 2013, p 2 Ballast water convention edges forward ―Germany has become the 37

th flag state to ratify the IMO‘s

Ballast Water Convention, bringing the tonnage in support of the convention to 30.32% when it signed the dotted line on 20 June 2013. The convention still requires 4.68% tonnage more to reach the 35% mark that would allow the convention to come in to force.‖ MER, July/August 2013, p 6

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PORTS AND HARBOURS

Singapore leads the charge to develop LNG as bunker fuel - By Hal Brown "Interest in liquefied natural gas as a cleaner bunker fuel for shipping is growing and Singapore is leading the charge, according to a leading industry player. ―The fact that major ports, such as Singapore, are already planning for new LNG terminals demonstrates its potential as an alternative fuel,‖ Dynamic Oil Trading chief executive Lars Møller told Lloyd‘s List. However, there are obstacles to the widespread adoption of LNG as a bunker fuel. The financial climate has been tough on shipping so it is too early to say what the long-term take-up of LNG will be, or whether it will be limited to a few specific regions and routes, says Mr Møller." LLOYD‘S LIST, 5 July 2013, p 12 Europe could face bunker drought after 2020 - By Hal Brown "There will be enough bunker fuel to meet demand from the global shipping industry in 2015, but potential shortages could arise in Europe after 2020 or 2025, according to an industry expert, writes Hal Brown. The issue of shortages arises because refineries are reluctant to invest in the expensive process of removing sulphur from bunker fuel, said OW Bunker global sales director Søren Christian Meyer in an interview with Lloyd‘s List. The lack of investment is because shipowners and operators are yet to define how they intend to comply with environmental regulations, he said. Owners and operators face three choices: onboard technology to clean the exhaust; liquefied natural gas as a cleaner fuel; or low-sulphur diesel. In 2015, owners and operators will have to use bunker fuel of not more than 0.1% sulphur content in European emissions control areas. But in 2020, or 2025 depending on the timeframe on pushing the regulation through, a global limit of 0.5% will be set. This will create a global demand for this type of fuel. New Middle Eastern and Asian refiners will play the major role in producing the new quality of fuel, says Mr Meyer. Europe, however, will not see enough refinery growth to produce sufficient quantities of fuel. Therefore, the fuel will need to be shipped from the new refineries into Europe, offering a boost to tonne-miles for tankers but raising the price of bunker fuel." LLOYD‘S LIST, 5 July 2013, p 12 IAPH heads to Hollywood ―The organisation returned to Los Angeles 58 years after its first inaugural meetings. P&H went to the heart of downtown LA to find out more. Around 500 delegates gathered in Los Angeles to discuss the environment, global economy, and piracy, to catch a glimpse of the famous Hollywood sign, and much more.‖ PORTS AND HARBORS, Jul/Aug 2013, pp 12-25 LNG interest keen at IAPH 2013 ―There was great interest in the liquefied natural gas (LNG) fuelled vessels working group from port representatives attending the IAPH World Ports Conference in Los Angeles in May, according to the group‘s chair Tessa Major. ―Seventeen ports expressed an interest in finding out more about LNG as a fuel and are being sent details of the issues we‘re tackling in the working group.‖ Major told P&H, adding that she was keen to hear from other ports interested in joining the dialogue on using LNG.‖ PORTS AND HARBORS, Jul/Aug 2013, p 34 Container weight debate intensifies ―Checking container weights prior to loading aboard ships sound simple enough but shippers warn that the cost of implementing the measure will be excessive. The debate about misdeclared container weights is set to come under the spotlight as the opposing parties prepare to do battle at the DSC (Dangerous Goods, Solid Cargoes and Containers) sub-committee of the International Maritime Organisation in September.‖ PORTS AND HARBORS, Jul/Aug 2013, p 35 US ballast water reporting reviewed ―Foreign vessels entering US waters would see their ballast-water management reporting burdens reduced under a proposed rule. The proposal, published in June by the US Coast Guard, would allow vessels entering the United States outside the Exclusive Economic Zone (EEZ) to submit ballast-water reports after arrival at the port of destination. Current rules require vessels to submit ballast-water management reports 24 hours before arrival and predict their ballasting operations, a procedure that requires owners and operators to later revise and resubmit their reports with the actual ballasting information.‖ PORTS AND HARBORS, Jul/Aug 2013, p 36 EU’s Blue Belt launched – By Andrew Spurrier ―The designers of the Blue Belt project wanted to make it as easy for ships to move between EU ports as it is for trucks to cross land borders, so helping to take traffic off the roads. It seems unlikely that the latest European Commission proposals to ease customs formalities for ships calling at EU ports will achieve this, but there is general agreement that they will be a significant step forward. If the proposals are approval by member states and the European Parliament, the commission believes the Blue Belt scheme will become reality by 2015, and with it the so-far elusive single EU shipping market.‖ FAIRPLAY, 11 July 2013, p 27 Ukrainian bulk cargoes found with excess moisture – By Adam Corbett ―The International Group of protection-and-indemnity (P&I) clubs is warning that East European shippers are attempting to export

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potentially dangerous cargoes with excess moisture content, while also placing restrictions on port access for cargo surveyors. The insurance group says it has received reports that iron ore concentrate and fine exports from the port of Yuzhny in Ukraine have been found with moisture content exceeding transportable limits. The dangerous levels were discovered following independent analysis outside Ukraine and, in some cases, have led to cargoes being redelivered from ship to shore. That has led the group to question the standard of testing and equipment in Ukraine. But it also points out that port-access regulations have been changed in a way that conflicts with international regulations and makes it more difficult for surveyors to access cargoes for testing.‖ TRADEWINDS, 12 July 2013, p 30 Beijing issues port guidelines for 18,000 teu vessels - By Max Lin "China's transport ministry has approved guidelines to the country‘s ports on how to receive 18,000 teu boxships, as the world‘s largest trading nation readies itself for Maersk Line‘s Triple-E ships. According to the ministry‘s website, the Chinese government has revised its Design Code of General Layout for Sea Port for containerships of 120,000 dwt or larger as the size of boxships grows ever bigger. Effective from August 1, the code‘s latest version sets guidelines for vessels up to 18,000 teu. The previous version, which took effect in 2008, has guidelines only for vessels up to 12,500 teu. ―The move is in line with the trend of containerships growing ever larger. It is to regulate the design work for large container terminals and [promotes] the rapid and sound development for ports,‖ the ministry said." LLOYD‘S LIST, 16 July 2013, p 3 World’s largest containership makes its maiden call at Busan - By Max Lin "The world‘s largest containership, Maersk Line‘s Maersk Mc-Kinney Moller, has entered service after making its maiden call at Busan, South Korea, with around 10,000 teu on board. With officials from Busan Port Authority and the Ministry of Oceans and Fisheries present, the first Triple-E vessel lifted 10,000 teu at DP World‘s Pusan Newport terminal — including 500 teu fully loaded and 9,500 teu empty. The 18,270-teu vessel begins its first commercial voyage at a time when Asia-Europe spot rates have started to soften again after restoration programmes at the beginning of the month. Maersk plans to operate the ship and its sisterships at the equivalent of 14,300 teu rather than their full capacity, to prevent oversupply in the trade and to allow for those ports that are still upgrading facilities for the giant ships." LLOYD‘S LIST, 16 July 2013, p 3 Asia port state control statistics improve with detention ratio below 5% - By Adam Corbett ―New figures from the Tokyo Memorandum of Understanding (MOU) of port-state-control (PSC) authorities indicate that the quality of ships trading in the Asian region is improving. In its assessment of inspections in 2012, the Tokyo MOU said the detention ratio had fallen below 5% for the first time since figures were recorded in 2002. The region‘s PSC authorities inspected 68% of ships trading in the area, conducting 30,929 inspections on 16,439 vessels, a new world record for the number of inspections carried out by one region in a year. A total of 1,421 of the inspected ships were detained and 19,250 inspections uncovered deficiencies. The detention per inspection rate was down to 4.59% compared to 5.46% in the previous year. The detention rate was as high as 6.9% as recently as 2008.‖ TRADEWINDS, 26 July 2013, p 35

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SEAFARERS A Whale master issues fresh plea for help with bunkers - By Tom Leander "As the circumstances become increasingly desperate, the master of the stranded crew on A Whale says that the ship‘s owner, Nobu Su-controlled TMT, has not responded to pleas for bunkers to provide the crew at least enough power to remain in contact with the outside world. Now, UK-based charity the Sailors‘ Society has appealed to the Liberian Registry to assist A Whale‘s crew by providing bunkers and supplies. In response, the registry has imposed a deadline of July 4 for delivery of bunkers and supplies to A Whale, which is off Suez. If the deadline is not met, the registry will seize the ship, repatriate the crew and sue TMT for the cost, a spokesperson confirmed." LLOYD‘S LIST, 1 July 2013, p 4 A Whale crew expect Liberian Registry to seize their ship - By Tom Leander "Seafarers on board A Whale, the TMT-owned 320,000 dwt combination carrier stranded off of Suez for six months, expected the Liberian Registry to seize the ship on Thursday and to send them home to their families. A Whale master Khan Jubair Niaz told Lloyd‘s List via email that the 20-strong crew were ―looking forward to flag‘s action... as it is quite clear that TMT and NOS Shipmanagement have failed to make arrangements as required by the flag state‘s letter of suspension‖. The Liberian Registry told TMT and shipmanager NOS Shipmanagement that if they failed to deliver bunkers and basic supplies by July 4, it would suspend the vessel from the register, seize the ship, repatriate the seafarers and sue for the costs." LLOYD‘S LIST, 5 July 2013, p 5

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Banks fail to release funds for 'A Whale' – By Adam Corbett ―Banks appear to be withholding payment to the abandoned crew of the Today makes Tomorrow (TMT)-controlled 320,000-dwt combination carrier (OBO) A Whale (built 2010), despite a court order allowing funds to be released. The ship‘s captain, Khan Jubair Niaz, who along with the rest of the crew has been stranded off Suez for six months, tells TradeWinds that one month‘s back-pay has been deposited to some, but not all, of the crew. He has been told that, despite the court order, money is being withheld because TMT‘s creditor banks are not prepared to release the cash. Around $428,000 is owed to the men in outstanding wages. In a more positive sign that creditor banks are ready to help, satellite communications have been restored after being cut off last month, leaving the crew to rely on mobile phones to maintain contact with the outside world. Captain Niaz says the crew are conserving energy on the ship, at times operating in a black-out in an attempt to save enough fuel to keep provisions fresh.‖ TRADEWINDS, 5 July 2013, p 8 Bunkers but no water and no escape yet for stranded seafarers - By Tom Leander ―Crew on board the TMT -owned 320,000 dwt combination carrier left stranded for six months off Suez by the Taiwan company‘s financial troubles have at last received temporary relief from the shipowner after the Liberian Registry stepped in, but their ordeal has yet to end. ―No assurance has been made for repatriation of the crew members who are due for sign-off by the company,‖ said A Whale master Khan Jubair Niaz. The Liberian Registry had suspended the vessel‘s flag, he said, ―and started arrangements for crew repatriation‖.‖ LLOYD‘S LIST, 10 July 2013, p 3 Flag-state Liberia helps out stranded 'A Whale' crew – By Adam Corbett ―The crew who have been stranded in Suez on bankrupt Today Makes Tomorrow (TMT)‘s 320,000-dwt combination carrier (OBO) A Whale (built 2010) for six months have been given fuel, but no fresh water, and more promises — but no tickets home or full pay yet. The crew has informed TradeWinds that they have been paid May‘s salary, although February, March and April‘s wages are still outstanding. They attribute the recent improvements to pressure applied on the owner and management by the vessel‘s flag-state, Liberia.‖ TRADEWINDS, 12 July 2013, p 2 Clearing up for MLC 2006 ―MLC 2006 will become one of the major regulatory documents of the maritime industry along with the SOLAS, STCW and MARPOL Conventions. This comprehensive document applies to more than 1.2 mill seafarers worldwide, including those working on ships whose flag states have not ratified the Convention. Many of the leading class societies together with major shipping organisations have issued guidelines.‖ TANKER OPERATOR, June/July 2013, pp 10-11 ICS clarifies MLC certificate requirements for shipowners – By Adam Corbett ―Shipowners need not panic if they do not have a Maritime Labour Certificate (MLC) 2006 in hand by the time the convention comes into force next month, according to the International Chamber of Shipping (ICS). In a note to shipowners ahead of the long-awaited enforcement of the so-called seafarers‘ super convention, the ICS says the MLC does not require flag states that have ratified to issue certificates immediately. It has also been agreed that port states should take a ―pragmatic‖ approach to policing the convention. But it cautions that shipowners should still take ―sensible precautions‖ and, even if they don‘t have a certificate, must still comply with the convention.‖ TRADEWINDS, 19 July 2013, p 30 ICS urges owners to adopt maritime labour convention - By Liz McMahon "Shipowners should adopt the Maritime Labour Convention 2006 globally, even though it is unclear how flag states will adopt a ―pragmatic approach‖ to implementation, says the International Chamber of Shipping. ICS secretary-general Peter Hinchliffe said the new enforcement mechanism was complicated by the fact the MLC did not require flag states that have ratified the convention to issue certification immediately. When the International Labour Organisation Diplomatic Conference adopted the MLC in 2006, it also adopted a resolution agreeing port states should take a pragmatic approach to enforcement for 12 months following their entry into force worldwide. However, Mr Hinchliffe said: ―It is still rather unclear how this will be applied in practice. Shipowners should therefore take sensible precautions.‖ He warned that, regardless of the progress that might or might not have been made by a vessel‘s flag state, ships were required to meet the standards in the convention." LLOYD‘S LIST, 22 July 2013, p 2 The same hymn sheet "Like it or not, the Maritime Labour Convention 2006 will enter into force on August 20. Or will it? As the International Chamber of Shipping points out, it is unclear how different flag states will implement the convention and although it applies internationally, the way it is interpreted at various ports may differ greatly. All this is headache-inducing information for shipowners who are now likely to face different requirements at different ports as they themselves struggle to work out what is expected of them. What is OK in one port may not cut the mustard in another." LLOYD‘S LIST, 22 July 2013, p 2 Mandatory bio-lubes increase paperwork for crew - By Craig Eason "Shipowners could face ever more difficult paperwork and administration demands when the US Vessel General Permit comes into

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force later this year. The workload will add to the already heavy administrative burden on crew and fleet managers as they struggle to comply with an ever-increasing array of environmental regulations. The updated Vessel General Permit controls discharges from a vessel including dirty water, ballast water and oils. The new rules require vessels to use bio-oils in stern tubes and other underwater parts of the vessel where lubricants are routinely used, excluding cylinder oil for a ship‘s main engine. There is a growing trend to using so-called bio-lubes." LLOYD‘S LIST, 23 July 2013, p 7 Maritime Labour Convention set to end abandonment nightmare – By Adam Corbett ―Unions are hoping that the upcoming Maritime Labour Convention (MLC) 2006 will see abandoned seafarers, faced with similar situations to those trapped for nearly six months on the combination carrier (OBO) A Whale (built 2010), leave with air tickets home and unpaid wages in hand. A total of 21 crew have been stuck on the 320,000-dwt OBO at anchorage near Suez, caught up in the financial problems of Taiwan‘s (Province of China) Today Makes Tomororw (TMT) Group. The situation was resolved this week when TMT finally agreed to pay the men and repatriate them. The convention comes into force on 20 August and protection- and-indemnity (P&I) clubs, as earlier reported by TradeWinds, have made repatriation cover available to owners from that date to try to make sure funds are available for crew to go home in cases of insolvency.‖ TRADEWINDS, 26 July 2013, p 35 Industry Viewpoint: World Maritime University turns 30 - By Michael Grey "Knowledge hub for shipping has built itself a reputation for academic excellence. Addressing the IMO recently, its secretary-general Koji Sekimizu spoke about the heights that some of these graduates have subsequently achieved, including government ministers, deputy ministers and ambassadors — and a fair number head their national delegations to the parent organisations. However, it is fair to suggest that what they all represent is a worthwhile injection of professionalism into the maritime world, often in places where that was previously absent." LLOYD‘S LIST, 29 July 2013, p 12

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SHIPBUILDING AND RECYCLING OF SHIPS Europe agrees compromise deal for demolition on Asian beaches – By Adam Corbett ―A new European regulation on ship recycling makes no mention of a beaching ban but can Asian yards still win approval from Brussels under its new stricter conditions? A direct European ban on the practice of ship demolition on the beaches of Asia appears to have been avoided by a compromise deal struck at the European Union (EU). A new regulation emerging from discussions between the European Council, European Parliament (EP) — where the policy on recycling was driven by Green politician Carl Schlyter — and the European Commission (EC) makes no specific mention of a ban on beaching. Such a ban had been the sticking point in an EP proposal, drawn up by Schlyter, that potentially put EU policy out of line with the 2009 Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the Hong Kong Convention).‖ TRADEWINDS, 5 July 2013, p 15 Europe delaying global ship recycling standards ―Norway, which originally brought to the attention of the International Maritime Organization (IMO) the need for safe and environmentally friendly ship recycling, has become the first country to accede to the global standard: the Hong Kong International Convention on the Safe and Environmentally Sound Recycling of Ships (2009). By contrast, if EU member states wish to ratify the convention, they are unable to do so because the European Commission‘s (EC‘s) recycling regulation is still in the approval process.‖ FAIRPLAY, 11 July 2013, p 23 South Korea’s Big Three set their sights on LNG - By Tom Leander "South Korea‘s three biggest shipbuilders could gain 40 or more orders for liquefied natural gas carriers from the fourth quarter through 2014, an analyst from Daishin Securities has estimated. That is close to half the expected total of some 80 LNG ship contracts up for grabs through 2014 for projects already approved or with approvals pending and scheduled to be underway in 2017, Seoul-based analyst Feynman Jeon said in a note on Wednesday. Also on Wednesday, South Korea‘s Ministry of Trade, Industry and Energy announced that shipbuilding orders for South Korean yards grew 60% in the first half to some 6m compensated gross tonnes compared to the same period last year. These developments reflect the widening performance gap between South Korean shipyards and those in China." LLOYD‘S LIST, 12 July 2013, p 1 Maritime Innovation Japan to grow - By Max Lin "Maritime Innovation Japan (Mijac), the latest product of consolidation efforts within the country‘s maritime sector, aims to become its leading platform for research and development projects that offer ship technology solutions to clients at home and abroad. Oshima Shipbuilding, Shin Kurushima Dockyard, Tsuneishi Shipbuilding and Sanoyas Shipbuilding established Mijac in April amid calls for Japanese yards to merge operations to create economies of scale.

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Although it welcomes Japanese shipbuilders and shipping line investors, Mijac is seeking foreign firms to jointly develop projects too, the company told Lloyd‘s List in an email." LLOYD‘S LIST, 12 July 2013, p 3 Risk and reward - By Tom Leander "A report by an analyst in Seoul describes the strong possibility of South Korean shipyards winning more than 40 contracts for liquefied natural gas vessels. The prediction is interesting, because the analyst, Feynman Jeon of Daishin Securities, bases the estimate on existing contracts that have been approved or are pending approval that are likely to be awarded before the end of 2014 for deliveries beginning around 2017, when the projects lift off. Japanese shipyards are also likely to be beneficiaries. South Korea‘s big three opted some time ago to diversify into several areas of high-value shipbuilding, LNG vessels included. Such investments might have looked risky at the time, but in fact they supported risk management." LLOYD‘S LIST, 15 July 2013, p 2 Rising sun "It is not unusual for Japan shipbuilders to seek an innovative approach. Maritime Innovation Japan (Mijac), the latest product of consolidation within the country‘s maritime sector, aims to become its leading platform for research and development projects that offer ship technology to buyers in Japan and overseas. Though it is not directly affiliated with a long-standing project in Japan, spearheaded by ClassNK, to organise and consolidate competitive research and development projects to support better marine design and innovation for lower fuel consumption, it is not unrelated. Japan has consistently provided the best platform for better industrial maritime research through its commercial sector. Foreign shipowners wasted no time revisiting Japan‘s shipyards as soon as the weaker yen made buying in Japan more cost-effective. That is because the quality of Japan‘s shipbuilding is supported by a national awareness that innovation is the best route to survival for the country‘s shipping industry." LLOYD‘S LIST, 15 July 2013, p 2 'Eco VLCC orders at least two years away' say tanker experts – By Andy Pierce ―Orders for fuel-efficient ‗eco‘ VLCC newbuildings have no place in today‘s market with contracting of the ships on any scale at least two years away, leading shipowners and brokers said this week. VLCC rates have spiked twice in the past couple of months — but while volatility is an encouraging sign, it makes no sense to invest in eco newbuildings, which cost around $90m right now, it is claimed.‖ TRADEWINDS, 19 July 2013, p 3 Japanese partners in bid to grab lead in Asian 'eco' vessel development race – By Adam Corbett ―Four Japanese yards, shipowner and class society set up adedicated joint venture to develop green technology. Four medium-size Japanese ship¬builders, along with shipowner Nippon Yusen Kaisha (NYK) and classification society ClassNK, have set up Maritime Innovation Japan Corp (Mijac) with an initial capital of ¥10m ($100,000) to research and develop maritime green technology. Oshima Shipbuilding, Shin Kurushima Dock, Tsuneishi Shipbuilding and ClassNK will each hold a 19.7% stake. Sanoyas Hishshino Meisho has a 14.95% share and NYK the remaining 6.25%. The partners are also said to be keen to bring in leading yard Mitsubishi Heavy Industries‘ expertise into the new company. Masato Nobuhara, who formerly worked with NYK technology company MTI, has been appointed Mijac president. The idea behind the project is that by combining expertise and funding, the Japanese companies will be able to compete with larger rivals in China and South Korea.‖ TRADEWINDS, 19 July 2013, p 8

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SHIPPING Red Ensign loses tonnage as Ofer fleet restructures - By Janet Porter "The UK‘s ship register has lost tonnage as the Sammy Ofer group reorganises its fleet, transferring 32 ships to other flags over the past 12 months. Nevertheless Zodiac Maritime, the UK arm of the shipping empire founded by Sammy Ofer and now owned by his sons Eyal and Idan Ofer, is still the largest UK-flag shipowner in tonnage terms. The UK-flag fleet stood at 16.7m gt at the end of June, having approached 18m gt last year as ships such as the 16,000 teu CMA CGM Marco Polo joined the fleet. Despite the recent dip, the register has still more than doubled its size since 2000, when the fleet dropped to 6.6m gt before a tonnage-tax regime was introduced." LLOYD‘S LIST, 2 July 2013, p 2 The sun rises again in Japan - By Max Lin "The world‘s third-largest economy is gaining poise and that is good for shipping. After nearly two decades of deflation and anaemic growth, Japan is regaining its poise as one of the top economies in the world. The country‘s gross domestic product expanded at an annualised 4.1% in the first quarter, a rapid pace not seen in years, putting it firm on the recovery track. In comparison, most European nations are seeing paltry growth if not contraction. China, India and Brazil are embracing prolonged slowdowns. Only the US economic recovery is seemly gaining momentum, albeit slowly. Much of the revival of fortune is attributed to the Shinzo Abe administration, which has ushered in

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a series of aggressive stimulus measures since taking office in December. The Bank of Japan‘s monetary expansion policy and inflation target have pushed down the value of yen, boosting consumer confidence and share prices. Extra government spending has supported domestic consumption. Prime Minister Abe has also promised tax cuts and liberalisation in several sectors, which he said would improve Japan‘s export competitiveness in the long run." LLOYD‘S LIST, 4 July 2013, p 7 P3 rivals warned to step up their game or be left behind – By Ian Lewis ―The new P3 Alliance will operate ships so large that competitors will need to order a spate of 16,000-teu ships to stay on the field in the Asia-Europe trade, says Danish analyst SeaIntel. Next year, the proposed alliance between Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM will be operating vessels on average 25% larger than those of he CKYH alliance and 12.5% larger than G6‘s. ―The name of the game is ‗size matters‘,‖ said SeaIntel. ―The industry has witnessed a perpetual ‗arms race‘, with each carrier constantly striving to either achieve the lowest unit costs — or gain access to the same low unit costs as their competitors.‖‖ TRADEWINDS, 5 July 2013, p 21 New Dutch tax breaks to support shipowners - By David Osler "Dutch shipowners are expected to be the major beneficiaries of a generous new tax break recently announced by the Netherlands council of ministers to boost investment in capital assets. Although the scheme is not shipping-specific, companies such as Vroon and Feederlines were among the largest users of a forerunner to the latest measure and the industry is likely again to take advantage of a generous tax break. Owners from other countries will also be able to take part, as long as they structure the strategic management of participating newbuilding vessels through a Dutch-registered company. The announcement is seen to be good news for local operators suffering from the wider shipping downturn, which has led to dozens of Dutch single-ship companies modelled on Germany‘s KG system going bankrupt. With some big names said to be holding restructuring talks, any direct or indirect support is certain to be well received by local owners." LLOYD‘S LIST, 9 July 2013, p 1 UK sets sail for shipping showcase - By Janet Porter "Britain‘s maritime industries are preparing for a major event at the end of the summer in a more upbeat and confident mood than has been apparent for years. Long gone are the days when the country‘s shipowners, port operators, shipbrokers, marine insurers, equipment manufacturers and other shipping interests that comprise the UK‘s broad-based maritime activities were complaining about disjointed policies and regulatory U-turns driving business away. Instead, a new understanding between government and shipping interests, underpinned by co-ordinated and regular communications that have fostered far better relations between the two sides, is providing the backdrop for London International Shipping Week to be held in two months‘ time. But the steering group stresses that this will be an opportunity to showcase the whole country‘s maritime strengths and skills, and not just to promote London. The underlying purpose is to reinforce the UK‘s status as a major maritime country and London‘s position as one of the few cities in the world that can offer both UK and foreign shipowners a complete range of support services, from ship finance, insurance, law, arbitration and shipbroking, to training, consultancy, technical and security expertise and advice. Visitors will also be reminded just how many international shipping organisations, associations and businesses are located in London; from the International Maritime Organization, Intertanko and Intercargo to Inmarsat and the International Association of Classification Societies." LLOYD‘S LIST, 9 July 2013, p 5 Egypt crisis raises spectre of bunker price spikes - By Hal Brown "Fears are mounting that civil unrest in Egypt will push up the price of bunker fuel, easily the biggest expense for shipowners. A senior executive from a shipowning company who asked to remain anonymous told Lloyd‘s List that bunkers could rise on the back of the climbing oil price. Bunker prices have been coming down, offering relief to struggling owners during the downturn, he said." LLOYD‘S LIST, 12 July 2013, p 5 New chief at helm as class body regains 'credibility' – By Adam Corbett ―Italian Roberto Cazzulo has taken over from Tom Boardley as head of IACS just as the association comes back into favour with regulators — but there are still challenges ahead. The Italian‘s appointment comes at what would appear to be a period of renaissance for the association, which fell out of favour with the International Maritime Organisation (IMO) and European competition authorities a few years ago. Brussels accused it of being a closed shop. Flag states mainly criticised it for allowing competition for business to influence the rule-making process. It was alleged that competition resulted in construction rules that were aimed more at winning work than ensuring safety. A more open policy has since seen new members join, appeasing the competition authorities. Also, the end of a rule-making harmonisation process, which will see common bulker and tanker class rules strengthened — and more closely aligned with the new goal-based standards principle at the IMO — is in sight. That has brought IACS right back into the fold and into favour with shipping‘s global regulator.‖ TRADEWINDS, 12 July 2013, p 12 Brussels allows Det Norske Veritas and Germanischer Lloyd merger - By Tom Leander "The proposed merger between Det Norske Veritas and Germanischer Lloyd has cleared a major hurdle,

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having secured approval from the European Commission, leaving only approval from antitrust regulators in China pending. The approval was handed down by the European Commission on July 15. It noted that ―the proposed acquisition would not raise competition concerns given the parties‘ generally moderate combined market positions resulting from the proposed transaction in ship classification and testing, inspection and certification services for the oil and gas industry, the presence of a number of strong players providing TIC services in the relevant sectors [and] the frequent and easy switching by customers between providers irrespective of the industry sector‖ . The merger was approved by anti-competition authorities in the US and South Korea in June." LLOYD‘S LIST, 19 July 2013, p 3 P3 could embrace new partners, says Maersk - Jing Yang "A senior Maersk official has raised the prospect of other lines joining the groundbreaking P3 network announced by the world‘s top three carriers last month. The joint fleet operations alliance is not limited to Maersk Line, Mediterranean Shipping Co and CMA CGM, and could include others if their profile fits, said Brian Noe Kristensen, vice-president of Maersk Line Far East Asia liner operations cluster. The three top lines together account for one-third of capacity in the east-west trades that will be covered by the P3 network. ―I don‘t think anybody has ruled out that others could join the P3 operating consortium. A fourth member into P3 — or P4 — I think that‘s on the cards for the next couple of years, if somebody comes in with all the right vessel types, as it will make a lot of sense,‖ Mr Kristensen said in an exclusive interview in Shanghai." LLOYD‘S LIST, 23 July 2013, p 1 Shipping digs itself into a deeper hole - By Paul Slater "The first half of 2013 has shown a lot of activity in all sectors of shipping, but is any of it going to help restore profitability to shipping? The last 10 years has seen a short boom followed by an apparently endless bust that has highlighted the fact that shipping is not an industry but an array of public and private companies that compete for business individually and rarely, if ever, work with each other. Thus appeals for consolidation have fallen on deaf ears, corporate mergers or takeovers are an extreme rarity and very few companies have developed any franchise or brand value. Meanwhile, the shipping orderbook has climbed to new heights, with medium range product tankers leading the way with a nearly 25% increase over the next two years and even loss-making suezmaxes showing a 10% increase. The container sector continues to grow, with the 7,000 teu-plus sizes adding nearly 40% capacity despite the fact that cargo growth is stagnant and future demand projected to remain so. Much of this activity has been stimulated by new engine designs and other fuel-saving measures that are as yet unverified." LLOYD‘S LIST, 26 July 2013, p 4 Switch to low-sulphur fuel brings mixed blessings - By Hal Brown "Opinions differ on the wisdom of investing in product tankers; some people are gung-ho, others prefer a more cautious approach. One future development, however, appears fairly solid — at first glance, at least. When the strict new low-sulphur bunker fuel regulations start in either 2020 or 2025, the fuel will need to be shipped into Europe from producers in Asia and the Middle East on product tankers. Europe will not have the refinery capacity to make the stuff. ―We need to consider where these fuel stocks will come from, as most future refinery capacity lies outside of the existing emissions control area zones,‖ Dynamic Oil Trading chief executive Lars Møller told Lloyd‘s List. Of the 150 refiners that will invest in building capacity for the production of middle distillates in the next 10 years, more than half are in the producing regions of the Middle East and Asia, rather than in the emission-control areas." LLOYD‘S LIST, 26 July 2013, p 9

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SPECIAL REPORTS Anti-piracy: TANKER OPERATOR, June/July 2013, pp 26-28 Ballast Water: TANKER OPERATOR, June/July 2013, pp 39-45 Brazil – in for the long haul: TANKER OPERATOR, June/July 2013, pp 12-18 Denmark: TANKER OPERATOR, June/July 2013, pp 20-25 ECDIS: FAIRPLAY SOLUTIONS, July 2013, pp 20-25 Emergency Response: TANKER OPERATOR, June/July 2013, pp 46-47 Emissions: TANKER OPERATOR, June/July 2013, pp 32-36 Japan: LLOYD‘S LIST, 4 July 2013, pp 7-9 P3 Alliance: LLOYD‘S LIST, 22 July 2013, pp 8-9 P3 Alliance: LLOYD‘S LIST, 23 July 2013, pp 8-9 Ship design: TANKER OPERATOR, June/July 2013, pp 30-31 Shipping software: FAIRPLAY SOLUTIONS, July 2013, pp 15-19 Global bunkering LLOYD‘S LIST, 25 July 2013, pp 6-9

Marine Lubricants: MER, July/August 2013, pp 14-19 Costa Concordia capsize: MER, July/August 2013, pp 32-35 Back to Contents