DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2015 – 225

Number 225 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Wednesday 12-08-2015 News reports received from readers and Internet News articles copied from various news sites.

The SPARTAN outbound from Rotterdam Photo : maritime photo maassluis www.photomaassluis.com ©

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EVENTS, INCIDENTS & OPERATIONS

The OCEAN BLOOM handling cargo in Rotterdam-Waalhaven Photo : Peet de Rouw © CLICK on the Photo ! Infographic: Radical US Cargo Shift to East Coast

The COSCO OCEANIA handling boxes in Seattle Photo : Aart van Essen ©

Import and export data specialist Zepol has found that a hefty chunk of businesses have switched from using Pacific to Atlantic and Gulf ports this year. Total imports along the East Coast have increased by 15%, while import traffic on the West Coast is down 4%.Zepol contend that China is the leading culprit for the supply chain shift with imports along the West Coast declining by 3%, yet Chinese imports on the East Coast continue to skyrocket. Atlantic ports increased containers from China by 20% this year alone, and Gulf ports by a dramatic 43%.“Shipments are setting sail for Eastern ports even before the Panama Canal expansion is complete,” explains Zepol’s CEO, and trade data expert, Paul

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Rasmussen. “Shippers may be tired of West Coast backups, and with carriers adding more lines from Asia to the East Coast, it’s hard to blame them.”The ports of Newark/New York, Savannah, and Houston had the highest increase in imports for the first half of 2015 (compared with the same time in 2014). The Port of Newark/New York increased in imports by 12%, Savannah rose by 32%, and Houston by another 26%.The port of Houston also had a surge in containers from China, bringing in 53% more Chinese containers already in 2015.“Looking at these numbers, the port of Newark/New York’s imports are becoming competitive with Long Beach,” adds Rasmussen. “Upgrades to the Suez Canal and the focus on larger vessel infrastructure at Eastern ports certainly help pull traffic away from the Pacific.” Source : porttechnology

UASC AL MURABBA leaving Rotterdam Europoort – Photo : Kees Torn © CLICK on the photo ! Under fire Noble to slash 16% of workforce Under fire commodity trader Noble Group looked to reassure investors by bringing out its Q2 results a few days early to staunch losses in its share price on the Singapore Exchange. By choosing a holiday to announce the results, the Hong Kong based firm will have to wait until Tuesday to see if its performance has done enough to quell concerns about its financial viability. The group saw its Q2 net profit slip 5% to $62.61m as revenues fell back on sliding commodity prices. The company said it is looking to slash 16% of its workforce by the end of the year.Noble also revealed that an investigation it had commissioned by accountants PwC had shown that its mark-to-market (MTM) models, valuations and governance framework comply with relevant requirements and standard industry practices. Noble employed PwC in the wake of a series of stinging attacks from February this year on the company and its accounting practices by Hong Kong-based Iceberg Research, criticism that has seen Noble’s share price decimated over the past six months.Looking at the PwC review and the Noble results, Iceberg sent out a note this evening in which it noted: “Enron was also largely in compliance with accounting rules. This review will fail to answer the market’s concerns. The market wants to know the real value of these MTM, not whether Noble successfully exploits accounting loopholes.” Source : Splash 24/7

Seafarers you are AMAZING!!!

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You keep the world turning, delivering our products and services - but what about you? Are you happy? Please take 2 mins to complete the August Happiness Index (https://www.crewtoo.com/happinessindex ) so that we can inform those making decisions about your lives, how YOU really feel!

CLICK at the Photo above to see the 37 metre Heesen yacht ILONA sailing at 28 knots ! China Orders Cosco-China Shipping Merger

The m.v. “CSCL ARCTIC OCEAN” sister ship of the “CSCL GLOBE” with a capacity of 19.100 Teu’s on of the biggest container vessels in the world Approaching Rotterdam – Europoort . Photo : Cees van der Kooij ©

Beijing has ordered two of China’s leading container lines – China COSCO and China Shipping group – to merge in a bid to recover from a slump in the industry, according to the South China Morning Post.The proposed merger is expected to be a rather complicated process due a tangle of stock listings and distinct earnings records. However, rumours have already sparked a share price jump from between 10% and 24%.

The COSCO DENMARK moored at the Euromax terminal in Rotterdam Europoort – Photo : Rolf Theunissen ©

One source for companies said: “Unlike the merger between China CNR and CSR, which took a bottom-up approach to pen a deal and were combined via an asset swap at the listed companies’ level, the shipping companies will have to

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study a top-down avenue, consolidating the parent companies first.” A second source was reported as saying: “Unlike train making, China’s shipping companies operate in a global market. A government-ordered merger will definitely raise alarms to competition authorities worldwide.”China Cosco has recently been involved with the order of ten 19,000 TEU ships at a total cost of US$1.4 billion in a bid to dominate the world’s busiest trade lanes.China Cosco and CSCL rank as the world’s sixth and seventh largest respectively by fleet size but are said to belong to different operational blocks. Source: porttechnology

The COSCO PORTUGAL spotted Westbound in the Singapore Straits last Sunday – Photo : Piet Sinke © CLICK on the Photo!

Shell en Routiers Restaurants op Maasvlakte Plaza Shell en Routiers Restaurants gaan zich vestigen op Maasvlakte Plaza, het internationaal transportpark met een grootschalige truckparking en moderne voorzieningen voor chauffeur en vrachtwagen in het westen van de Rotterdamse haven. Shell gaat daar een brandstofverkooppunt met de focus op vrachtwagens exploiteren. Routiers Restaurants ontwikkelt er een wegrestaurant dat plaats biedt aan 175 personen. Daartoe hebben de twee bedrijven een contract ondertekend met het Havenbedrijf.De opening van Maasvlakte Plaza is voorzien op 1 mei 2017. De bouwwerkzaamheden beginnen in september 2015. Het eerste wordt de Vogelvallei heringericht.

Shell

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Shell bouwt een onbemand tankstation op de locatie. Het station zal vier opstelplaatsen speciaal voor vrachtwagens krijgen; allen voorzien van een high-speed dieselpomp, een reguliere dieselpomp en AdBlue. Daarnaast komen er twee opstelplaatsen voor personenwagens, waar diesel en Euro 95 getankt kan worden. Naast het reguliere brandstofaanbod, is het mogelijk om in de toekomst op het nieuwe tankstation ook een verkooppunt van liquefied natural gas (LNG) toe te voegen. Shell vervult een voortrekkersrol bij de introductie van LNG als brandstof voor het wegtransport en werkt momenteel aan de ontwikkeling van een initieel netwerk.

Routiers Restaurants Routiers restaurants richt zich vooral op het voorzien van een kwalitatief goede en gezonde maaltijd voor zowel de beroepsmatige weggebruiker, zakenmensen en dagtoeristen De nieuwe vestiging op Maasvlakte Plaza wordt een restaurant met vele mogelijkheden, van een snelle hap tot een heerlijk diner. Ook voor de omliggende bedrijven op de Maasvlakte zal Routiers restaurants zijn service blijven verlenen, o.a. door het verzorgen van catering of overwerkmaaltijden. Het nieuwe restaurant krijgt circa 175 zitplaatsen, uiteraard met een open (cockpit) keuken. Het huidige Routiers restaurant aan de Malakkastraat 16 blijft open totdat het nieuwe restaurant op Maasvlakte Plaza in gebruik is genomen.

Maasvlakte Plaza Maasvlakte Plaza wordt een bewaakte truckparking met 359 parkeerplaatsen, zie ook https://youtu.be/wyaHE7VuuVA . Daarvan worden ruim 80 plaatsen geschikt gemaakt voor vrachtwagens met gevaarlijke stoffen (ADR). Ook komen er voorzieningen voor trailers, ECO-combi’s (extra lange vrachtwagens), koelcontainers en bijzondere transporten. Naast de truckparking komt een centraal gelegen gebouw met de voor dit park gewenste voorzieningen (informatiebalie, horeca, sanitair -douches en toiletten-, was- en droogmachines, WiFi, lockers en in de toekomst ‘Virtual Gate’ functies), aangevuld met bijpassende kantoorvoorzieningen. Onderdeel van het project is de herinrichting en uitbreiding van de bestaande Vogelvallei. Daarmee ontstaat een groot aaneengesloten natuurgebied van 21 hectare, bestaande uit diverse eilanden, met daartussen ondiepe waterpartijen.

Truckparking Rotterdam De Rotterdamse haven heeft sinds 2012 de beschikking over drie truckparkings. Truckparking Waalhaven heeft een capaciteit van 124 parkeerplaatsen. Truckparking de Punt in de Botlek en Truckparking Distripark Botlek hebben allebei een capaciteit van 85 parkeerplaatsen. Sinds de opening van deze betaalde parkeerplaatsen is de veiligheid van geparkeerde vrachtwagens aanzienlijk verbeterd en de hinder afgenomen. Sinds januari 2015 is de bezettingsgraad van de truckparkings: Waalhaven 95%, De Punt 71% en Distripark Botlek 80%.

The HERCULES LEADER spotted Westbound in the Singapore Straits last Sunday Photo : Piet Sinke © CLICK on the Photo!

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Maryland officials airlift cruise ship passenger to hospital The Maryland State Police says one of their helicopter crews has airlifted a cruise ship passenger from a ship in the Chesapeake Bay to a Maryland hospital. State Police say they were notified by the Coast Guard on Friday night that an adult male passenger onboard a Royal Caribbean cruise ship needed to be taken to a hospital for cardiac care. State Police say the helicopter crew stationed at St. Mary’s County Airport in Hollywood, Maryland, was the closest aircraft to the ship, the Grandeur of the Seas, which was located southwest of Tangier Island. According to a Maryland Port Administration website, the cruise ship was scheduled to sail Friday from Baltimore to Florida and the Bahamas on a 7-night cruise. The airlifted passenger’s condition was unknown Saturday. Source: Associated Press / wtop. Asia-Europe Rates in Record Nosedive

The LAHORE EXPRESS in Melbourne Photo : Dale E.Crisp ©

Asia-Europe weekly spot rates have dropped by the largest amount ever recorded in history after the Shanghai Containerised Freight Index (SCFI) noted a fall by US$276 to $833 per TEU, according to the Journal of Commerce. According to SCFI data, the Asia-Mediterranean trade is also said to have continued along the same path, as its spot rate dropped from $240 to $879 per TEU, down from $1,119 last week.Richard Ward of FFA, said: “Instead it’s a case of business as usual with further GRI’s being announced for September 1, [2015]. Both Hapag-Lloyd and NYK have announced increases of $1,000 and $970, respectively. However, can there be any hope of this latest round of increases being maintained? On current reflection it appears not.”Kenneth Glenn, President of NOL liner arm APL, said: “We have seen enormous rate pressure in the Asia-Europe trade this year, as everyone knows, and that has had an impact on (beneficial cargo owner) rates we negotiated earlier this year.”Spot rate volatility has previously exceeded 40% according to Drewry Shipping Consultants, with suggestions that shipping had reached a tipping point, as a result of overcapacity and weak demand, among other factors. Source : porttechnology

The 2007 delivered 183 mtr long NYK VESTA inbound for Rotterdam-Europoort Photo : Krijn Hamelink ©

Due to travelling in Australia this week the newsclippings may reach you irregularly

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Iskes BEVER departed from Gdynia towing a barge loaded with conveyor belt bound for Narvik in Norway Photo : Capt Kees Pronk Jr – Master Bever ©

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Crowley Awarded Technical Management Contract for Six MSC Marine Prepositioning Ships Crowley Maritime Corp.’s global ship management group continues the support work it is providing the U.S. Government with the announcement today of a new technical management contract for six Military Sealift Command (MSC) Maritime Prepositioning Ships (MPS). Services provided by Crowley will be full turnkey operation and management of the fleet, including crewing, and scheduled and unscheduled repair and dry-docking. The turnover phase will begin in late September.“Crowley is honored to have been selected to provide technical management for such an elite government fleet,” said Crowley’s Mike Golonka, vice president, government services. “This contract is a perfect fit for Crowley, and would not be possible without the hard work and determination of our remarkable government team and the tremendous support we received from MSC.”These ships are used to preposition U.S. Marine Corps vehicles, equipment and ammunition throughout the world. Prepositioned ships in each squadron have sufficient equipment, supplies and ammunition to support about 17,000 personnel for 30 days, and are self-sustaining with cranes that enable them to unload their own cargo.The Crowley contract covers five of MSC’s 14 Bobo Class ships – including the MV 2nd Lt. John P. Bobo, MV Pfc. Dewayne T. Williams, MV 1st Lt. Jack Lummus, MC Sgt. William R. Button and MV 1st Lt. Baldomero Lopez – and the USNS Gunnery Sgt. Fred W. Stockham.“Vessels in the Bobo Class are named after recipients of America’s highest military recognition, the Medal of Honor,” said Crowley’s Sam Ailes, program manager. “It’s humbling and rewarding to provide service to this distinguished fleet as it fulfills its military duties. This is yet another critical government program and we realize what a privilege it is to serve it.” The Bobo Class is named in recognition of USNS 2nd Lt. John P. Bobo, a Vietnam War hero who was killed while saving the lives of his fellow marines during an ambush in 1966. He was posthumously awarded the Medal of Honor. Crowley’s ship management group provides all phases of commercial ship management, along with full technical management and government contracting. Crowley, founded 1892, is one of the oldest ship- owning and managing companies in the U.S., providing marine solutions, energy and logistics services in the domestic and international markets. As a third-party ship management company, Crowley provides technical services and crew management as well as a broad range of back-office services. With offices in the U.S., Mumbai, Goa, Hong Kong and Amsterdam, Crowley’s international ship management group, including Crowley Accord, manages over 70 vessels of nearly every type and variety. The company shows a strong focus on value-added management models and safe, operational efficiency. To learn more about Crowley, visit www.crowley.com. OOIL sees 32% rise in H1 profit despite tough environment By : Vincent Wee from Hong Kong

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Hong Kong-based container line group Orient Overseas (International) Limited (OOIL) turned in a creditable set of first half figures amid a tough market environment, with net profit rising a third to $238.6m from $181.3m in the same period in 2014, a performance made all the more remarkable by revenue actually falling from $3.24bn in the first half of last year to $3.04bn in the current period.While the profit included investment income of $27.2m from its investments in Hui Xian REIT and a net fair value gain of $9.8m on the revaluation of its Wall Street Plaza property, OOIL attributed the good results mainly to good yield management and cost gains. On the cost side OOIL benefitted from a 38% drop in bunker costs to $329m in the first half from $529m in the previous corresponding period, while it managed to control bunker use so well that total bunker consumption remained the same despite a 17% increase in net operating capacity.

The OOCL JAKARTA seen handling boxes at the Singapore Brani Container Terminal Photo : Piet Sinke © CLICK on the Photo!

OOIL chairman CC Tung said: “The first half of 2015 was an eventful six months for the global economic environment. Greece’s ongoing challenges, and the US / Iranian nuclear negotiations acted as a backdrop to a slow but improving global economy. At this time, the Eurozone had reached a preliminary agreement with Greece, and the US and Iran had concluded their negotiations, subject to respective domestic legislative approval, paving the way for the gradual reintegration of Iran into the global economic system.”"In the latter half of the reporting period, with idling ships reactivated and new build capacity delivering, freight rates moved rapidly downwards, forcing margins to narrow. It is likely that the industry as a whole will report mixed results for the half year”, added Tung.Acting cfo Alan Tung said: “The Group continues to have sufficient borrowing capacity and remains comfortably within its target of keeping a net debt to equity ratio below 1:1.” He added that “the Group is deliberate in its efforts to balance the need for a strong and liquid balance sheet, necessary in a capital intensive business, with an industry-competitive shareholder return.” Source: Seatrade Maritime

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Ecospeed wins Energy Globe Award 2015 On June 25, 2015 two delegates from the Austrian Chamber of Commerce at the Austrian embassy in Brussels, Mrs. Martina Madeo and Mr. Henry Simon, visited Subsea Industries nv in Antwerp to present the company with the National Energy Globe Award for sustainability for 2015. Subsea Industries won the award for Belgium for its Ecospeed non-toxic hull coating project. Production Executive Mr. Manuel Hof accepted the award on behalf of the company. According to the jury report, “this year´s National Winner of the Energy Globe Award in Belgium set out to replace these toxic antifouling coatings with a non-toxic alternative, stopping water pollution and also reducing fuel and greenhouse gas emissions. A win-win situation for both: Humans and environment.”"It is our duty and responsibility to assure that our young people will have an intact environment tomorrow." With these words Wolfgang Neumann launched the ENERGY GLOBE World Award for Sustainability in 1999, today’s most prominent and prestigious environmental prize.From all over the world, projects are showcased that conserve and protect our resources or that employ renewable energy. The goal is to present successful sustainable projects to a broad audience, for many of our environmental problems already have good, feasible solutions. More than 1.500 projects and initiatives from a total of 177 countries were submitted for this year’s award.For more information contacts us at [email protected]

The POLLUX and FRIESLAND assisting the tanker VERIGE into the Ijmuiden Locks – Photo : Patrick Deenik © SIMULATING MARINE COLLISIONS FOR A SAFER FUTURE Collisions at sea have always been a major risk for seafarers and while the exact numbers of incidents that take place across the globe each year are hard to quantify, the number is significant. The Marine Accident Investigation Branch (MAIB) reports on average six collisions between merchant vessels in British waters every year and for every collision reported to the appropriate authorities there will be many more near-misses that go unreported. Paul Morter, Business Line Manager at BMT ARGOSS discusses how simulation can be used as both an effective training aid to prevent collisions and a powerful diagnostic tool to help improve the forensic examination of casualties. Despite widespread adoption of the International Regulations for Preventing Collisions at Sea 1972 (Colregs), the implementation of vessel traffic services (VTS) and traffic separation schemes in busy seaways major collisions still take place. There is no excuse for this in an age of highly sophisticated electronic navigational aids. Whether the cause is poor lookout, poor decision making or poor manning levels, serious collisions have multiple effects. Too often crew or passengers are injured, or there is tragic loss of life. The cargo carried on board may become damaged, often causing serious disruption to commercial relations between seller and buyer, which can be more damaging than the pure material loss. If oil or other harmful substances are accidentally spilled, the environment may become seriously affected, harming not only the aquatic fauna and flora, but too often also the coastline, affecting those who earn their living from the sea or the coast. Expensive clean-up operations may follow as well as disputes with aggrieved third- parties. Finally, the ship-owner or charterer and the relevant H&M insurers can be seriously affected by a collision. Huge financial losses may result not only from the cost of possible salvage and repairs, but also from the loss of time. The old saying goes that there are two sides to every story, and in marine casualty investigation that’s never truer. In a situation where there has been a collision far from land, the only witnesses will be the crew-members on watch at the time of the incident, and their accounts of the event will often be contradictory. While physical evidence such as the type and extent of damage sustained by either ship can help investigators form a conclusion, the final verdict is more likely to be formed from the balance of probabilities rather than specific hard evidence. In order to address this issue by utilising all the available data relating to the incident, BMT ARGOSS and BMT Surveys, subsidiaries of BMT

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Group Ltd, the leading international design, engineering and risk management consultancy, have partnered to use the REMBRANDT ship manoeuvring simulator as part of the maritime casualty investigation process. Operating directly from S57 ENC chart data, REMBRANDT is a highly accurate, capable and flexible alternative to Full Mission Bridge (FMB) marine simulators, allowing the user to load the parameters of any port. REMBRANDT utilises high fidelity ship models that include over 750 parameters, ensuring that the user experiences identical ship to ship interaction, ship to bank interaction, squat and shallow water effects as the real ship would in the same conditions. Simulations can be replayed in video format with track plots and data information printed or saved electronically, providing an opportunity to analyse the trainees’ performance. REMBRANDT has enhanced tidal current and wind settings to accommodate the unique features of a given port or shipping lane. It can also provide Client Server, a multi-user mode which enables multiple vessels to operate in a single operational scenario; each with independent human control, making it a powerful and effective training tool. BMT has deployed REMBRANDT worldwide in over 125 projects working with an international client base of cruise, ferry, LNG, tanker, container and bulk carrier operators and port authorities. Utilising REMBRANDT, the newly formed Collison Reconstruction and Simulation Team will be able to accurately reconstruct specific incidents involving collisions in order to identify the root cause and any lessons that can be learned. BMT’s team, which includes experienced master mariners, chief engineers, navigation and hydrodynamic modellers and weather experts, has the essential skills, depth of maritime knowledge and crucial technology to reconstruct incidents using a visual format and readily understandable process. The simulation uses the actual shipboard Voyage Data Recorder (VDR) data, radar images and regional AIS information combined with high fidelity ship models, which can be re-modelled to required parameters, to produce meaningful three-dimensional simulations. Voice, radar and position data sets are automatically synchronised, together with environmental data and navigational circumstances, to present a complete and seamless reconstruction of events for in-depth analysis. Once an accurate simulation of events has been established, it can be viewed from multiple angles in order to consider the incident from each crews’ perspective. Control inputs to each vessel can also be calculated to assess at what point changes of course or speed took place. Combining the highly accurate simulation with the skilful analysis of marine experts, failings can be identified to create an unbiased appraisal of how and why an incident has occurred. The resulting incident reconstruction can be used to identify what happened not only for litigation purposes, but to help improve maritime safety. Once the root cause is determined the first steps towards future prevention can be implemented. This knowledge and also the liaison with the client can produce a range of “what if” scenarios that can be thoroughly investigated and evaluated to produce specific training needs, valuable lessons and operational policies and procedures. The technology can also be used as part of a ship operators QA procedures whereby random downloads of VDR data are input to REMBRANDT for shore based review for compliance with company ISM navigation policy. The recreated visuals can then be used for deck officer training. These results can be implemented to create a cost effective and safe approach to assist in the prevention of marine collisions and casualties. This can help lead to the development of safety and promote pollution prevention which ultimately can support the industry from within.

Paul Morter, Business Line Manager at BMT ARGOSS

Paul MorterPaul is a Master Mariner who leads the ship manoeuvring simulation team at BMT ARGOSS. Following a 15 year career at sea he has worked ashore in operational and safety related roles and has written safety management systems for shipping companies during the initial introduction of the ISM Code. Paul’s business development role at BMT ARGOSS includes expanding the scope and capabilities of its ship manoeuvring and navigation risk assessment simulator REMBRANDT.

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The CALAMITY JANE seen inbound for Rotterdam – Photo : Jan Oosterboer © Japan after 10 years back in the top 2 of world shipbuilders Japan captures 2nd place in first half NB order volume

According to preliminary statistics released by IHS Inc. (formerly known as Lloyd's Register-Fairplay), Japan returned to the second place in terms of newbuilding orders it received during the first half (January-June) of 2015. It is the first time in about 10 years since 2005 that Japan ranked second in the world's newbuilding market. ranked first, pushing China, the world's top power for the past several years running, down to third place. The market shares were 37%, 26.4% and 25.9% for each of the three, respectively. Their rankings were influenced considerably by the changes to the newbuilding market environment which was featured by the persistently anemic bulker freight market and subsequent dull order placement for bulkers and relatively buoyant orders for containerships and tankers. Meanwhile, 917 newbuildings totaling 36.52 million grt were ordered worldwide, a 31% decline from the same period of 2014. The global newbuilding market was less active compared to a year earlier despite the last-minute jump in demand before the effectuation of the International Association of Classification Societies' (IACS) H-CSR (Harmonized Common Structural Rule).The above statistics are comprising of IHS' January-March firm figures and April-June preliminary figures. In the event newbuilding orders continue to be placed at as good a pace as have been thus far, the year's final results would exceed 70 million grt. Considering that the April-June figures are preliminary, it is conceivable that some of the orders placed in an attempt to beat the implementation in July of H-CSR were not reflected in the statistics, which indicates that the final first half year results could turn upward than shown above. There currently is seen some deceleration in the pace of newbuilding order placement partly in recoil from the last- minute rise in demand seen because of the H-CSR, and some industry people predict another such jump in demand later this year as some shipowners will attempt to dodge the application of IMO's Tier-III NOx regulations that are slated to go into effect starting with ships whose keels are laid on/after Jan. 1, 2016.As for newbuilding order receipts by country during the first half of this year, China, which had been taking the top spot since 2009, sustained a massive drop in order receipts, giving up its position to South Korea, once the world's No. 1 shipbuilding power. Japan overtook China this time although its lead by a thin margin. In specific terms, Korea bagged orders for 127 ships of 13.1 million grt, down 6% from a year earlier, Japan landed orders for 228 vessels of 9.65 million grt, down 26% and China won orders for 286 ships of 9.46 million grt, down 56%. As for their respective shares to the global total, Korea accounted for 37%, Japan 26.4% and China 25.9%. The kinds of ships they excel in had a definitive influence on the volume of newbuilding orders received. China, whose specialty is bulkers, fought an uphill battle while Korea piled up orders for mega-containerships and tankers. Korea's shift of emphasis to merchant vessel construction away from the depressed offshore segment was also conducive to it increasing newbuilding order intake.By kind of ship, the worldwide newbuilding orders placed with yards during the period under review included 97 boxships of 13.12 million grt, 176 tankers of 10.64 million grt, 196 bulkers of 7.93 million grt and 36 gas carriers of 2.42 million grt. Bulker orders, which constituted a majority of the total newbuilding orders last year, decreased about 70% in tonnage term while in contrast orders for containerships, which are in blooming demand, doubled.Amount of completions slightly increased with the global results growing 4% year-on-year to 1,377 ships of 36.64 million grt. Japan completed 274 ships of 7.42 million grt, down 2%, Korea completed 188 ships of 12.26 million grt, up 9% and China completed 470 ships of 13.45 million grt, up 4%. China bested the other two in terms of completion volume.The world's order backlogs as of the end

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of June stood at 6,122 ships totaling 203.62 million grt (109.95 million cgt), roughly equal to the previous year's results. By country, Japan had in its order book 952 ships of 37.42 million grt, Korea, 837 ships of 64.16 million grt and China, 2,405 ships of 78.53 million grt. Based on completion volume in 2014, the world's total order backlogs as of the same date were worth about 3.2 years of workload. Source : Kaiji Press via Justus Schoemaker Dutch - Japanese Maritime Desk K.K. / www.dujamdesk.com

Ultrapar keen to acquire some Petrobras gas assets, paper says Ultrapar Participações SA , which owns Brazil's largest natural gas distribution company, is interested in acquiring some assets from state-controlled Petróleo Brasileiro SA that could be listed as early as this year, O Estado de S. Paulo newspaper reported on Monday.Ultrapar would be willing to acquire Liquigás, a rival controlled by the state firm commonly known as Petrobras, Chairman Paulo Cunha told Estado in an interview. However, such a move could face tough regulatory scrutiny, Cunha told the paper.The company was also interested in some assets controlled by BR Distribuidora SA, a fuel distribution firm that Petrobras plans to list on the local exchange within months, Estado said. Ultrapar wants the fuel and gas distribution assets operating in Brazil's northern and northeastern regions that Petrobras and BR Distribuidora kept as part of a $4 billion joint acquisition of Grupo Ipiranga SA with Ultrapar in 2007, he told Estado. The company "would pay more for those assets than they could get in an initial public offering," Cunha said.A formal proposal has not been made for Liquigás and the BR Distribuidora assets, he said.Cunha's interest in the assets comes as Petrobras relies increasingly on asset sales, spinoffs and investment cuts to stabilize rapidly growing debt in the face of a corruption scandal. Saddled with the debt amid weak oil prices, Petrobras plans to put on the block almost $60 billion in assets through 2018. Efforts to contact Ultrapar, Brazil's No. 4 conglomerate by revenue, to confirm the content of the interview were unsuccessful. Source : Reuters (Reporting by Guillermo Parra-Bernal; Editing by Bernadette Baum) Bill introduced to concentrate shipping disputes in Rotterdam Legislators in the Netherlands have introduced a bill which seeks to concentrate the majority of Dutch maritime law cases in the Rotterdam District Court. It is expected that this will enhance the quality of justice and the efficiency of the judicial process, and further the development of knowledge and expertise of the Rotterdam District Court.

Changes to Code of Civil Procedure

The bill to amend the Code of Civil Procedure deals with the issue of which court has territorial jurisdiction over specific disputes in the Netherlands. Based on the bill, the Rotterdam District Court either will have additional jurisdiction to hear cases involving maritime law or will be the only court with jurisdiction. The bill merely amends Dutch procedural law and is without prejudice to, for example, the provisions of treaties and EU regulations. If, for instance, a jurisdiction clause in a commercial contract gives jurisdiction to the Amsterdam District Court, this choice of forum will not be affected by Dutch procedural law.

Reasons for change

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With effect from January 1 2013, the territorial division of the Dutch courts was amended by the Judicial Map (Revision) Act. As a result, there are now 11 courts, as opposed to the previous 19, with four courts of appeal (previously five). The changes were intended to enhance the quality of the judicial system. Due to the larger number of cases that they handle in specialised areas of law, the courts can develop more sophisticated legal expertise. The reduced number of courts means that there is now less need to concentrate cases in specialised courts. However, in a limited number of legal areas, this need still exists. According to the Assessment Framework of Legal Concentration of the Council for the Judiciary, this is the case where a particular type of case requires special judicial expertise and at least one of the following conditions is fulfilled:  A limited number of such cases are heard each year;  The presence of partners (eg, specialised law firms and/or insurers) in a given location makes concentration in that location desirable; and  Concentration would help to enhance the efficiency of proceedings.

Comment

Maritime law is one of those areas in which legal concentration is deemed desirable. It is a highly specialised subject and disputes are often complex. The Rotterdam District Court has both legal and substantive expertise and a good reputation in the field. In commercial contracts concluded between Dutch and international parties, the Rotterdam court is regularly specified as the forum of choice, because of this expertise. The Rotterdam court already handles most maritime cases heard in the Netherlands. The Council for the Judiciary predicts that the concentration will involve a limited number – between 50 and 100 – of cases each year. The presence of owners, stevedores, shipping agents, shipbuilders and specialised law firms in Rotterdam is a further argument in favour of the concentration of maritime cases at the Rotterdam District Court, where their handling by specialised judges should improve the efficiency of proceedings and assist the court in developing its specialist maritime legal expertise. The concentration of shipping cases at the Rotterdam District Court has been a longstanding objective in judicial circles. The bill should have a positive effect on the Netherlands’ position as a key transport hub. Source: AKD

The CANOPUS arriving in Willemstad-Curacao – Photo : Kees Bustraan © Oil Rig Maker Blamed for Fatal Collapse By CAMERON LANGFORD Twenty-six workers injured when an oil rig collapsed, killing one in the Bay of Campeche, sued the rig manufacturer in Federal Court. Plaintiffs include the estate representative of Isidoro Solorzano Castillo, who was fatally injured in the May 5 incident. The workers sued rig maker Friede & Goldman Ltd., a Houston company, and its affiliates Friede & Goldman LLC, FG Engineering Ltd. and FG Engineering Ltd. fka Friede & Goldman Ltd. The Aug. 6 lawsuit includes scant details of the accident, but places all the blame on Friede & Goldman."F&G knew of the design defects, yet knowingly marketed and sold the vessel and placed the vessel into the stream of commerce instead of warning of the defective and dangerous condition of the vessel," the complaint states. The workers say they were forced to abandon the rig as it collapsed, and they were "left to a horrifying fate," all of them seriously injured and traumatized. Mexico's national oil company Pemex contracted the Troll Solution to do maintenance on wells in Pemex's Abkatun-Pol-Chuc shallow water oil field, Reuters reported after the fatal accident.Pemex said a faulty leg made the rig collapse, and that 101 workers were evacuated and two died. The workers were employed by Typhoon Offshore, an oil service firm owned by Mexican conglomerate Grupo Salinas, according to Reuters and Offshoreenergytoday.com.The workers seek lost wages, medical expenses and punitive damages for gross negligence, products liability, negligent design and negligent misrepresentation. They are represented by Francis Spagnoletti of Houston. A Friede & Goldman manager

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said Friday that he was not aware of the lawsuit The final two defendants are the American Bureau of Shipping and ABS Group of Companies. The lawsuit does not explain their connection to the incident.This has not been a good year for Pemex operations in the southern Gulf of Mexico, from which the company pumps 70 percent of its crude oil production. Four people died in a fire on a Pemex platform on April 4, and a June 22 fire on another Pemex platform forced three workers to evacuate, maritimenewstoday.com reported. Source : courthousenews

Problem-plagued Cook Strait ferry Kaiarahi in need of more repairs New name, same old story.

Interislander's newest Cook Strait ferry Kaiarahi – formerly known as the Stena Alegra – has encountered more problems while in dry dock in Singapore, meaning its return to New Zealand will be delayed by about a month. The ship was due to go into service between Wellington and Picton in September, but Interislander's operator KiwiRail has now pushed that back to October, with the exact date to be confirmed closer to the time. The delay means about 100 people who have already booked passages on the Kaiarahi for September will have to be accommodated on Interislander's other ferries, the Kaitaki and Aratere. The same goes for a small amount of freight. NZ First leader Winston Peters said the latest problem had reinforced his view that the Kaiarahi was a "lemon". She had been undergoing sea trials in Singapore after receiving upgrades, including new lounges, a bar, stabilisers, navigation, engine room equipment, and gangway access.KiwiRail spokeswoman Julie Buchanan said the trials identified some wear inside the stern tubes, and it made sense to replace them while the ship was still in dry dock. "Carrying out this work now is preferable to risking delays to our customers later," she said. "Kaiarahi has undergone a major refit, so it was always possible that further issues would come to light. We would rather remedy any issues now, while she is in Singapore." It was too early to say how much the repairs would cost, or who would bear that cost, she said. The Swedish-owned Stena Alegra was drafted on to the Cook Strait run in late 2013 to fill in for the crippled Aratere, which had to have major repairs after losing a propeller in Cook Strait. But the Stena Alegra did not fare much better. It broke down in Wellington Harbour in its first week of service, had propeller problems, and suffered a gash in its hull when it hit a Wellington wharf. In December 2014, KiwiRail opted to charter the Stena Alegra for five years as a replacement for the 31-year old Arahura, rather than spending $250 million on a new ferry. It did not say how much it paid for the ferry, which it rebranded the Kaiarahi. The decision drew criticism at the time from Peters, who labelled the Swedish ship a "rust bucket".Peters said on Monday that the latest problems showed the ship was not fit for purpose."A lemon is always going to be a lemon," he said. "They've done so much work on this boat ... it's not working out."It was clear "after five minutes" in dry dock that refitting the Stena Alegra was not the way to go. It was yet another "horrible" and "expensive" decision by KiwiRail, he said. "This is really a disgrace. It goes on and on." Source: Stuff.co Mumbai port shippers hit with surcharges from terminal closure

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Ocean carriers have begun levying surcharges on Jawaharlal Nehru Port Trust cargo to compensate for operational cost increases caused by the prolonged shutdown of APM Terminals-operated Gateway Terminals India, even as JNPT maintains it is taking all the necessary steps to mitigate supply chain disruptions at India’s largest container gateway. In a customer advisory on Monday, OOCL said all cargo shipped on its services from Asia for discharge at JNPT will attract an emergency surcharge of $150 per 20-foot-equivalent unit and $300 per 40-foot-equivalent unit, starting Aug. 15. “With the current terminal conditions at Nhava Sheva, we have decided to apply an emergency surcharge,” the Hong Kong-based carrier said.The move follows a similar surcharge announcement by Middle East-based Emirates Shipping Line covering its trades from the Far East, Southeast Asia, the Middle East and East Africa to JNPT. With mounting delays and no end in sight to the labor standoff, rival carriers are expected to follow suit in the coming days.GTI, or APMT Mumbai, has been closed to all operations since August 4 due to a labor contract dispute between RTG operators and their unionized workers.“There is no change in the situation (at GTI). All operations continue to be at a standstill,” Line India said in a notice to customers. The Danish carrier said it is making alternative arrangements to berth its next voyages of the F13 service — the DS Dominion (voyage 1515) and Maersk Sentosa (voyage 1515) — and of the ME3 service — the Nedlloyd Barentsz (voyage 1510) — at the adjacent DP World facility. At the same time, JNPT said it is coordinating with all stakeholders to minimize vessel berthing problems and truck congestion in the harbor.“Some of the vessels meant for the APMT terminal are being handled at the neighbouring terminals of NSICT and NSIGT, both operated by DP World Nhava Sheva, while JNPCT, the port-owned facility,is handling reefer export cargoes of GTI,” the port trust said in a trade notice.India’s busiest container port said handling the diverted traffic meant additional pressure on gate activity at the other terminals in the complex, leading to congestion on connecting road arteries.“In order to ease congestion, truck traffic is being diverted to the GTI and NSICT parking area for all undocumented factory-stuffed containers, in addition to the newly developed centralized parking facility in JNPT,” the port said.A joint operation between APMT and state- owned rail operator Container Corporation of India, GTI currently accounts for roughly 45 percent of JNPT’s total throughput and about 20 percent of India’s overall container volumes routed via major public port complexes. Steady congestion has taken its toll on the terminal, as April to July volumes fell 2.86 percent from 655,570 TEUs to 636,839 TEUs on a year-over-year basis. Source: Journal of Commerce Maersk Giant Rig Wins North Sea Work with DONG Energy Denmark's Maersk Drilling announced Monday that it has secured a contract for its Maersk Giant (350' ILC) rig with DONG Energy. The $16-million contract will see the Maersk Giant used to work on the Nini and Siri field in the Danish North Sea for 150 days. The contract is a direct continuation of Maersk's current contract with Talisman Energy, which will keep the Maersk Giant employed until March 2016. The Maersk Giant is an ultra-harsh environment jack-up rig. It is equipped for high-pressure/high-temperature drilling and is designed for year-round operation in the North Sea in water depths of up to 350 feet. Maersk Drilling CEO Claus Hemmingsen commented in a company statement: "We are very pleased to continue our good corporation with DONG Energy, one of our key customers in the North Sea."In order to navigate the low visibility in the current market, it is essential that we reduce our exposure by securing a solid contract backlog. Therefore, it is also rewarding to see that we secure employment for the Mærsk Giant, which otherwise would have been stacked." Source: rigzone Cosco Corp suspends trading of shares pending announcement By : Ann Williams Mainboard-listed Cosco Corporation (Singapore) has requested a trading suspension on its shares with immediate effect pending the release of an announcement.This announcement relates to the plan by its parent firm China Ocean Shipping (Group) Company on a significant transaction that may have an impact on the company's securities, and which may or may not materialise, it said."The company is of the view that as it cannot ascertain if the proposed transaction may or may not have a material impact on the company's securities, it is not appropriate for trading in the company's securities to continue until the proposed transaction is finalised and/or announced," Cosco said n a filing with the Singapore Exchange on Tuesday morning. Bloomberg News reported on Monday that Beijing may merge Cosco, the largest shipping company in the country by fleet size, with China Shipping Group, citing unnamed people familiar with the matter. If not a full merger, the government could instead combine some of their

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businesses, the report added. Several arms of the two shipping giants halted trading in their shares pending an announcement on Monday, in both Shanghai and Shenzhen, as well as in Hong Kong. Source : Straitstimes Automation plans could see Auckland port slash workforce by more than 10% As New Zealand’s leading port gets more automated more than 10% of its workforce could be made redundant, it has warned today. Ports of Auckland said 53 of its 500 employees face the chop if it gets the go ahead to partially automate straddle operations at the site on the North Island of New Zealand. A six-week consultation between management and workers is now set to get underway.A decision on the automation proposal will be made in early 2016, and any redundancies would take place once the straddle carriers are in place – by mid-2017 at the earliest. “For anyone that works down at the port it is crippling news particularly for long serving loyal employees at the port,” said the secretary of the Auckland branch of the Maritime Union of New Zealand, Russell Mayn. He added that the union would fight the proposal.Similar automation plans have seen Hutchison Port Holdings make 97 staff redundant last week across the Tasman Strait at its two Australian terminals, a move that has sparked a wave of protest. Source: Splash 24/7 CASUALTY REPORTING

Bulker hits reef off Zhoushan Chinese bulker JIANG QUAN 6 (31,000dwt, built 2013) hit a reef near Zhoushan on Saturday while it was trying to avoid a collision with a fishing vessel. The bow of the ship suffered damage and the ship started to sink. Shanghai Fuxing Shipping, an affiliate company of Shanghai International Port Group, sent two tugboats for the rescue at the request of Zhoushan maritime authorities, and rescued all 19 crewm embers on the ship. The tugboats also towed the vessel to shallow water and avoided the sinking of the vessel. The vessel is operated by Huasheng Jiangquan Group, a multi-sector group mainly engaged in the business of trading steel, cement and ore products. Source: Splash 24/7

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NAVY NEWS

The Indonesian KRI SPICA was launched 03 August at OCEA in Les Sables d'Olonne, France. Photo : SeaWaves Magazine via Twitter Trinidad Coast Guard gets three vessels Government’s newly-acquired coastal patrol vessel (CPV) CG 25, interceptor (vessel) and supply vessels for the Coast Guard are due to conduct their first coastal patrol training offshore from today, having completed yesterday a period of theoretical training onshore. The CPV and interceptor along with two supply vessels to aid in border security, were delivered early last month . The vessels were manufactured and delivered by Damen Shipyards in Holland and are currently docked at the Coast Guard headquarters, Staubles Bay. They will be formerly commissioned on August 27. Trade, Industry and Communications Minister Vasant Bharath, who in the company of National Security Minister Brigadier Carl Alfonso yesterday toured the CPV, said the vessels were part of the People’s Partnership Government’s plan to strengthen border security and stop the illegal flow of guns, ammunition and drugs into the country. The illegal activities, he noted, has put the country at risk. Three more CPVs are to be delivered by year end, Bharath said. However, another CPV will be delivered by August 20. That vessel will be commissioned via the internet since plans are in train to have it brought to TT from Holland by a Trinbagonian crew. Lieutenant Commander Torinio Tracey, who conducted the tour, sailed with the Damen Shipyard crew that brought the first CPV to TT. Along with the purchase of the naval vessels is a maintenance support system provided by the ship builders for a five-year period. At present, a resident engineer from Damen was on board to assist with maintenance and to train locals to hand over the tasks at some point in time, Bharath said. The Coast Guard, he said has indicated that they were integrally involved in determining the specifications of the vessels that were bought. “This is not what have been foisted upon them. This is something they believe will assist in the safety and security of the nation,” he said. The total cost for the new fleet of 12 vessels that were ordered by the Government, he said, will cost $1.2 billion. The entire fleet, he noted, will cost half of what was being paid for three Offshore Patrol Vessels ordered by the previous People’s National Movement administration and which were stopped by the current Persad-Bissessar-led administration. Source: Trinidad & Tobago Newsday Frigates for Algeria under construction in Shanghai A photo posted on the internet indicates that China is constructing two C28A class corvettes based on the F-22P Zulfiquar-class frigate for Algeria at Hudong-Zhonghua shipyard in Shanghai, according to the Sina Military Network based in Beijing.China agreed to provide three C28A corvettes to Algeria under a contract signed in March 2012. Each

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of the ships is equipped with a 76 mm NG-16-1 gun, an eight-cell FM90 launcher for HQ-7 short-range air defense missiles, two quad launchers of C-802A anti-ship missiles, and two seven-barrel 30 mm Type 730 close-in weapons systems. The hull numbers of the two warships are 921 and 922. One of the vessels has already been fitted with the HQ-7 missile system.The first of the three corvettes, with 920 as its hull number, was turned over to Algeria two months ago. China began the construction of the three warships, designed based on the four F-22P Zulfiquar-class frigates China produced earlier for Pakistan, in 2013. Beijing and Algiers are currently discussing plans to construct three additional C28A corvettes in Algeria. As they are an upgraded version of the F-22P, Algeria's C28A corvettes are more advanced and powerful than the ships built for Pakistan. Sina Military Network said Algeria's C28As look more like the PLA Navy's Type 054A guided-missile frigate. Each of the ships can also carry a Westland Super-Lynx Mk140 helicopter. Source : Want China Times SHIPYARD NEWS

Tanker 'STAR BONAIRE ready to leave Damen Shiprepair Harlingen http://www.damenshiprepair.com/harlingen/

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SECOND SPA 150 AHTS DELIVERED TO FEMCO Sinopacific Shipbuilding in China recently delivered the AHTS vessel BEYA to FEMCO. This is the second of four SPA 150 vessels Sinopacific is building for FEMCO. Designed by Shanghai Design Associates, BEYA has a length of 72.0m, breadth of 17.2m, bollard pull of 150 tonnes and accommodation for 36 persons. Broker Seabrokers said that in addition to the two remaining SPA 150 vessels, FEMCO also has three newbuild icebreakers on order at Havyard Leirvik in Norway. These vessels will be capable of anchor-handling, towing and emergency response operations. Source : Offshore shipping online Shipbuilding says to sell all non- core assets in restructuring South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd said on Monday that it will sell all non-core assets and exit from all non-essential business units as part of a company-wide restructuring effort.Daewoo Shipbuilding late last month reported a provisional second-quarter operating loss of 3.03 trillion won, citing construction delays on offshore project such as oil and gas rigs. ($1 = 1,162.7900 won) Source : Reuters (Reporting by Se Young Lee; Editing by Muralikumar Anantharaman)

Korean shipyards look to cut newbuild costs South Korean shipyards are market leaders for construction of floating and fixed offshore oil and gas installations. They are world-class competitively, but even greater savings could result from addressing variations in owner, operator and regulatory requirements during engineering and construction for such projects. Less familiar specifications and processes result in “re-work, delays and misunderstandings in yards worldwide,” observes Hans Petter Ellingsen, Group Leader for Offshore Risk Advisory, Korea, DNV GL - Oil & Gas. Operators address this through onsite teams of up to 300 people, and sometimes move units from Asian yards for final completion closer to the final destination or offshore. DNV GL has initiated a JIP to establish a new international industry standard for offshore oil and gas projects. The JIP is based on discussions between (HHI) and DNV GL. It is now being discussed with operators and other Korean fabricators, such as (SHI) and Daewoo Shipbuilding and Marine Engineering Company (DSME), and with the Korea Offshore and Shipbuilding Association and the Korea Marine Equipment Research Institute. “We hope that it will lead to standardization that helps to reduce design periods and minimize design changes,” said JongBong Park, Senior Executive Vice President and COO of HHI’s Offshore and Engineering Division. “Other potential benefits include reduced material costs resulting from decreased expenses for material purchase, manufacturing and testing. A shortening of materials purchasing lead-time would be expected as more could be held in stock. Surplus materials could be used in other construction projects.”“The complexity and range of standards, regulations and requirements create a big challenge for contractors,” observed Dr. Younsang Won, Senior Executive Vice President and Head of Offshore Production Operations, SHI, and Chairman of DNV GL’s Korea Technical Committee. “It takes much effort to clarify and implement these requirements, and there are sometimes omissions, inconsistencies and misinterpretations. This can generate a lot of changes and revisions, even when the design has already been frozen and fabrication/installation has started.” “Using international standards more widely in offshore oil and gas projects has potential to significantly reduce cost levels. It will also reduce the risk of project overruns, without compromising quality or safety," says Ellingsen.

A maritime approach

One example of cost reduction through standardization comes from Norway, where DNV GL has studied savings from applying maritime rules from classification societies and maritime flag authorities—where possible—to offshore projects. This “maritime approach,” accepted for certain floating offshore units in Norway, has allowed hulls and/or marine systems to be classified under a maritime/classification regime rather than the country’s Petroleum Safety Authority regulations. Maritime Class rules exist for many types of floating units. Shelfstate legislation will normally accept use of a flag/Class approach to areas of maritime character. Designers, yards and suppliers work more efficiently when projects apply standards with which all players are experienced,” explains Ellingsen. “Our ambition is to establish a standard for oil and gas projects that builds on the well-established approaches of, and experiences with, classification. Industry estimates for potential cost savings on construction of installations range well into double-figure

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percentages.” Sung-Geun Lee, Executive Vice President, Chief Strategy Officer, DSME, agreed that applying maritime regulations to floating units simplifies engineering, procurement and construction procedures. “Standardization through a maritime approach is welcomed, but should be approached with caution,” he advised. “Individual operators and companies have varying regulations and specifications, as well as operation philosophies, and these may not be fully satisfied through maritime standards.” The risk is that a common standard developed on the basis of harsh environments, such as the North Sea, could end up raising the requirements for “more benign” seas, he added. “We must also account for local content regulation in various regions.” That said, he hoped that the JIP will provide the initiative for the standardization movement in the offshore industry.

Expert advice opens the door to big savings

One fabrication yard that consulted DNV GL experts expects cost savings of 30% to 50% from offshore projects equipment being ordered to maritime rather than offshore specifications. The ‘maritime approach’ model to executing offshore projects has been successful in the North Sea, a challenging regulatory environment. Brazil and Africa are less challenging in this regard. Therefore, they are even more suitable—where possible—for taking this approach. In these cases, standardized ship solutions can be used. It takes in-depth knowledge to predict how regulators will decide whether a system comes under maritime or offshore oil and gas rules. DNV GL’s experience of classification and independent third-party verification helps companies to understand and comply with regulations and to determine when a maritime approach may be possible and desirable. Source : MarineLink ROUTE, PORTS & SERVICES

US EAST COAST PORTS TO BENEFIT FROM PANAMA CANAL UPGRADE Following the Panama Canal expansion, which is approaching completion, up to 10 per cent of container traffic to the US from East Asia could shift from West Coast ports to East Coast ports by 2020, according to new research conducted by The Boston Consulting Group (BCG) and CH Robinson. Rerouting that volume is equivalent to building a port roughly double the size of the ports in Savannah and Charleston. The research - which involved extensive scenario analyses based on differing levels of demand, capacity, and costs - is believed to be the most comprehensive public study of how the canal’s expansion will likely change the way cargo moves, by both water and land, into and within the US. The findings were released in a report Wide Open: How the Panama Canal Is Redrawing the Logistics Map. The US$5 billion expansion of the canal will permanently alter the competitive balance between ports on the East and West coasts. With global container flows rising, West Coast ports will still handle more traffic than they do today, but they will experience lower growth rates and their market share will likely fall. Goods shipped from East Asia through West Coast ports are currently transported by rail and truck as far east as the Ohio River Valley. The canal’s expansion will permit big, efficient 'post-Panamax' container ships - which have two to three times the capacity of current vessels - to reach the East Coast. Those ports will then become more cost competitive because it is cheaper to move cargo by water than over land. West Coast ports, however, will remain the destination of choice for shippers who need to use the fastest routes possible.After the Panama Canal expands, the battleground region in which East and West Coast ports compete for customers will likely grow and shift several hundred miles west toward Chicago and Memphis, encompassing a region that accounts for about 15 percent of US GDP.

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“With the Panama Canal’s expansion, shippers will have more options and carriers will compete to provide those options,” said Peter Ulrich, a BCG partner and the leader of the firm’s transportation and logistics topic area in North America. “Rail, truck, and ocean carriers will all have to reconsider their routing and investment decisions. And shippers will need to make fundamental choices, such as where to locate distribution centers and how to segregate their cargo heading for the heartland.”In 2014, about 35 per cent of container traffic from East Asia to the US arrived at East Coast ports. According to the report, current growth trends would push that share to 40 percent by 2020 without the canal’s expansion. But with the canal expansion in place, the East Coast’s share could reach 50 per cent - a 10 per cent increase in market share.The report also analyzed four additional scenarios to help define the boundaries of how much container traffic will swing from West Coast to East Coast ports under different conditions for energy prices, canal tolls, infrastructure investments, and economic growth. High energy prices, for example, encourage fuel- efficient water travel and favor East Coast ports. Depending on the scenario, these shifts ranged from 0 to 10 per cent. Under any scenario, all major US ports will have greater container traffic in 2020 than they do today. But the largest of the West Coast ports, the Los Angeles-Long Beach complex, will handle less traffic than if the expansion were not to occur. That complex will likely experience growth at an average rate of 5 to 10 per cent per year through 2020, compared with double-digit growth rates at some East Coast ports.On the East Coast, the New York–New Jersey port complex and the Southeastern ports of Norfolk, Savannah, and Charleston are well positioned to gain traffic by virtue of their relative proximity to the battleground region and attractive rail routes to major markets. As the East Coast’s largest ports, they are also likely to be on the routes of the post-Panamax vessels, which tend to make fewer, longer stops than smaller vessels.“Companies accustomed to shipping to the West Coast and relying on relatively fast rail service to cover most of the country will need to take a much more segmented and dynamic approach,” said Sri Laxmana, the director of ocean services at CH Robinson. “When time is of the essence, that routing may continue to make sense. But for other products, the savings of shipping through the Panama Canal will likely outweigh the extra time in transit.”A copy of the report can be downloaded at www.bcgperspectives.com. Source : dredging News Online

MARITIME ARTIST CORNER

The (1906) NIEUW AMSTERDAM is the latest creation of maritime artist Lenie Simons Molenwijk

Click HERE for the LIVE STREAM WEBCAM in Hoek van Holland Berghaven

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…. PHOTO OF THE DAY …..

The new Botlek Bridge at night, the older bridge in front will be removed in 2016. Photo : Peet de Rouw © CLICK on the Photo !

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