DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2017 – 012

Number 012 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Thursday 12-01-2017 News reports received from readers and Internet News articles copied from various news sites.

The KNRM lifeboat KOOS VAN MESSEL outbound from her homeport IJmuiden Photo : Flying Focus Aerial Photography www.flyingfocus.nl ©

Make Time For Safety. It Is Better To Be 5 Minutes Late In This Life Than 5 Minutes Early In The Next.

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Your feedback is important to me so please drop me an email if you have any photos or articles that may be of interest to the maritime interested people at sea and ashore PLEASE SEND ALL PHOTOS / ARTICLES TO : [email protected]

If you don't like to receive this bulletin anymore : To unsubscribe click here (English version) or visit the subscription page on our website. http://www.maasmondmaritime.com/uitschrijven.aspx?lan=en-US EVENTS, INCIDENTS & OPERATIONS

Albwardy Damen Fujairah celebrates five years free of LTI The Fujairah yard of Albwardy Damen recently celebrated five years without a single lost time incident (LTI), a result of the venture’s intense focus on safety in all operations. Albwardy Damen is a joint venture between Albwardy Investment, Dubai and the Damen Shipyards Group, Holland. The event was marked by a small ceremony at the Fujairah yard attended by local port authorities, clients of Albwardy Damen and other stakeholders, said a statement from the company. Lars Seistrup, managing director Albwardy Damen, stated his pride in the achievement and affirmed that the venture would remain dedicated to safety going forwards. Seistrup said: “Safety is always our number one priority and will remain so, in whatever circumstances we are operating.” “The fact that we have achieved this result over the last five years is in no small part due to the diligence and commitment of our employees who make a crucial contribution to the safety performance of our company,” he said. “The fact that, together, we have accomplished this during what are very challenging conditions for the offshore industry, is a clear demonstration of our commitment to safety,” he added.The yard, which is based in the Port of Fujairah, supports clients with both workshop and afloat repairs. It employs around 150 personnel, undertaking numerous projects each year. Its scope of work covers hull and deck steel repairs, including pipework, hydro-blasting and painting and mechanical works such as engine overhaul, hydraulic and electrical works. Albwardy Damen provides shipbuilding, repair and diving services to the marine oil and gas related industries in the Middle East. With a total workforce of 1100 personnel, comprising 26 different nationalities, the venture operates in three UAE locations: Dubai, Sharjah and Fujairah.Albwardy Damen is certified by LRQA to ISO 9001, ISO 14001, OSHAS 18001 as well as OPI, it stated. – source: TradeArabia News Service Marine Safety Information Bulletin – 2014 Amendments to the Maritime Labour Convention The Coast Guard issued Marine Safety Information Bulletin (MSIB) 001-17, 2014 Amendments to the Maritime Labour Convention, to describe how U.S. vessels, through existing national laws and regulations, collective bargaining agreements and established industry practices, conform to the above mentioned MLC provisions and how they will be integrated into the existing voluntary inspection program that was established through the related Navigation and Vessel Inspection Circular (NVIC) No. Distribution : daily to 36.000+ active addresses 12-01-2017 Page 2 DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2017 – 012

02-13. The 2014 Amendments to the Maritime Labour Convention (MLC) established requirements for shipowners to provide financial security for the repatriation of seafarers and financial security relating to shipowners’ liability in cases of a seafarer’s injury or death. In addition, a “certificate or other documentary evidence” of this required financial security is to be carried on board the vessel. The amendments and associated requirements enter into force on January 18, 2017.

For additional details, please view the entire MSIB. Source: USCG

The VOLCAN DE TAMADABA outbound in Las Palmas – Photo : Alan Soutar (c) Maersk Oil axes jobs in Denmark Danish oil company Maersk Oil has made plans to reduce its workforce in Denmark by up to 160 positions. Following the organizational review of Maersk Oil headquarters carried out in late 2016, Maersk Oil Danish Business Unit (DBU) on Monday announced that it will simplify its organization to improve efficiency and ensure delivery of the company’s three-pillar strategy.To remind, in September last year Maersk Group announced the separation of the Group’s businesses into Transport & Logistics and Energy divisions, naming new bosses for several of its businesses. Gretchen Watkins took over the role of the CEO at Maersk Oil.Not long after, Maersk Oil outlined plans to review the scope and scale of its headquarters organization as a response to the outcome of the Maersk Group’s strategic business review and Maersk Oil’s exit from Qatar in 2017. The company explained on Monday that the new organization will provide for Maersk Oil DBU the foundation for a more cost-efficient operating model, and will position Maersk Oil DBU to maximize production and ensure future investments that will help realize the full potential of the Danish North Sea.The reorganization will run during the coming months and the first phase to reconfigure the onshore organization will be completed during 1Q 2017.As part of the first phase, Maersk Oil DBU plans to consolidate all employees of the Danish Business Unit at the Esbjerg office, and Maersk Oil DBU is expected to be reduced by up to 160 positions. This is subject to statutory consultation and local labour law. Martin Rune Pedersen, Chief Operating Officer said: “Our employees have done a great job in getting us to where we are today, and we recognize that this announcement will be unsettling news for them. It is however a necessary step in order to remain competitive in the Danish North Sea and the wider Maersk Oil business Patrick Gilly, Managing Director of Maersk Oil DBU said: “What we are announcing today will ensure our long-term future in a sustainable manner and it is a step in our efforts to support the Maersk Oil North Sea ambitions.” .” Source: Offshore Energy today

Fire breaks out on Deepsea Atlantic rig off Norway A fire reportedly broke out on the DEEPSEA ATLANTIC drilling rig working for Statoil at the Johan Sverdrup field, off Norway. According to a report by the Norwegian news website Offshore.no, the fire broke out last Wednesday in the rig’s drill tower. After it was extinguished, it broke out again. The situation was brought under control an hour later. A spokesperson for Statoil told the

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Norwegian news website the rig was not drilling production wells at the time of the incident. Statoil is the operator of the Johan Sverdrup field, in the North Sea, around 140 kilometers west of Stavanger. The field is under development and production is DEEPSEA ATLANTIC rig in November 2016. The DEEPSEA ATLANTIC is a semi-submersible drilling rig of the MODU GVA 7500 type, operated by Odfjell Drilling. The rig was completed in 2009, registered in Norway, and is classified by DNV GL.Offshore Energy Today has reached out to Statoil and Odfjell Drilling seeking confirmation of these reports. Neither of the two companies were immediately available for comment. source: Offshore Energy Today

Fruit juice tanker ORANGE OCEAN is passing Hook of Holland inbound for Rotterdam Waalhaven Photo: Patrick Deenik (c) Top 10 Ship Owning Nations By Eric Haun Kicking off the New Year, VesselsValue has put together a list of the top 10 ship owning nations by fleet value in 2017.

The GREEN ATLANTIC moored in in Tromsø Photo: Henk de Winde ©  Greece - $84.079 billion  Japan - $80.169 billion  China - $68.333 billion  Singapore - $38.052 billion  United States - $34.432 billion  Germany - $31.544 billion  Norway - $30.427 billion  South Korea - $21.204 billion  Denmark - $19.492 billion  United Kingdom - $15.847 billion Despite suffering the biggest total drop in total feet value, Greek owners held onto their spot at the top with a $84.079 billion fleet, reflecting a decrease of nearly 12 percent in the cargo sectors. Greece also held onto its lead in the bulk carrier and tanker

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categories "Greek tanker owners started 2016 earning more than $100,000/day on their vessels. However, the rest of the year has been predominantly bearish. By the end of 2016 the Greek fleet had shrunk by close to $11 billion," said VesselsValue senior analyst William Bennett "Coming in second [in terms of total value lost] was the U.S.A., whose fleet lost $4 billion, less than half the Greek losses," Bennett said. Falling less than 1 percent in total value, Japanese owners were able to inch closer to the lead. Japan is the leading owner of LNG and LPG carriers."Bulkers have had a deceptively good 2016 following the record lows at the start of the year," Bennett said. "The top three bulker owning nations; Greece, Japan and China, have seen their fleets rise by over $4 billion each. This growth has supported acquisitions following some of the lowest asset prices seen since the 1980s." Falling from fourth to sixth, the German cargo fleet lost close to 30 percent of its value mainly due to the depressed container market. Yet, the nation remained the top owner of containerships. Bennett said, "The German container fleet shrunk by nearly $11 billion throughout 2016 after large losses in the sector. The largest softening was experienced in the panamax and post-panamax sectors with some vessels losing up to 60 percent of their value. German losses are fueled by this as 59 percent of their fleet consists of panamax and post-panamax vessels." Source: Maritime Global News

SM Line starts fleet buildup in earnest with feeder buy by: Sam Chambers Samra Midas Group (SM Group), the new name in container shipping, has got its fleet buildup plans underway. Having recently outlined plans to grow a fleet up to 110,000 teu which would make it a top 20 global liner, it is not hanging around, keen to scoop up cheap tonnage. As well as taking on Hanjin’s transpacific operations for $31.5m, SM Group, which owns bulker outfit Korea Line Corp, has got brokers scouring for tonnage around the world, principally in feeder, 4,500 teu and 6,500 teu sizes. Broking sources tell Splash it has made its first foray for feeder tonnage, snapping up the 10-year-old Chinese built Perla for $4.5m. The 1,098 teu ship was owned by Germany’s Laeisz Reederei. SM, which traditionally has been in construction, has developed a new brand, SM Line, to further its container ambitions. As well as the transpacific it is looking at becoming a noteable player on the intra-Asia trades and is in discussions with Korean peers, HMM, Sinokor and Heung-A to join their recently announced regional trade consortium. source: Splash 24/7 Sulu Sea kidnappings a threat to merchant shipping The Sulu Sea between eastern Malaysia and the Philippines has become dangerous for merchant shipping due to rising threat of kidnappings, the International Maritime Bureau (IMB) said on Tuesday The Sulu archipelago is a stronghold of the Abu Sayyaf, an al-Qaeda linked group notorious for kidnappings and, increasingly, piracy. The IMB report was released just hours after armed men attacked a fishing boat, killing eight fishermen, in what appeared to be a pirate attack off the southern Philippines. IMB said global sea kidnappings rose three-fold in 2016, even as global piracy hit its lowest level in nearly 20 years. Pirates kidnapped 62 people for ransom in 15 separate incidents in 2016."The kidnapping of crew from ocean going merchant vessels in the Sulu Sea and their transfer to the Southern Philippines represents a notable escalation in attacks," Kuala Lumpur-based IMB said. IMB is advising charterers and owners to consider avoiding the Sulu Sea by routing vessels West of Kalimantan.Tug boats, barges and fishing vessels have been targeted previously, but lately merchant ships are also being attacked, IMB said. They include the massive 180,000 tonne iron ore carrier Kumiai Shagang that saw an attempted attack late last year. Several sailors and tourists were taken captive by Islamist militants last year in attacks on tug boats and yachts in the Celebes and Sulu seas, raising concern among defence officials from Indonesia, Malaysia and the Philippines In November, the Philippines agreed to allow Malaysia and Indonesia to carry out "hot pursuits" in its territorial waters, as the three nations looked to tackle kidnappings and piracy by Abu Sayyaf. Commenting on the threat of kidnappings in the Sulu Sea area, one Singapore-based senior maritime security executive said: "The only worthwhile advice is to avoid the area." Source: Reuters (Reporting by A. Ananthalakshmi in Kuala Lumpur and Keith Wallis in Singapore; Editing by Nick Macfie)

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MEETING OLD FRIENDS

Capt Bas van Veghel master of the ALP STRIKER whilst navigating the Singapore Straits met his old friends as seen above the BOSKALIS OFFSHORE AHT’s FAIRMOUNT ALPINE and FAIRMOUNT SHERPA with the FPSO CIDADE DE CAMPOS DOS GOYTACAZES enroute from China to Brazil Photo : Capt Bas van Veghel – Master Alp Striker (c) Oud- & Nieuwjaarsborrel --> 27 januari 2017 Namens Maritieme Club De Ruyter en Survitec Group - Singapore hebben wij de eer en het genoegen U op de vooravond van het Chinees Nieuwjaar uit te nodigen voor de oud & nieuwjaarsborrel op vrijdagavond 27 januari a.s.

De borrel wordt gehouden in de TRADEWINDS BAR van de Hollandse Club op Camden Park in Singapore vanaf 20:00 uur. Als U van plan bent aanwezig te zijn, waarderen wij uw aanmelding zeer ten bate van de culinaire logistiek; graag per email aan: [email protected]

The 1982 built SUPER SERVANT 4 inbound for Vlissingen Sloeharbour for discharging Photo : Huib Lievense © New Year brings newfound optimism in newbuilding market The entry of 2017 has marked a surprising newfound upwards momentum in the newbuilding market, as shipbrokers are reporting a significant bump in ordering activity. In its latest weekly report, shipbroker Allied Shipbroking said that “the New Year seems to have brought a slightly positive tone to the market, as a number of new orders seemed to have been concluded over the past two weeks (though the focus continued to be on the more specialized units)”. According to Allied, “we are already starting to hear Distribution : daily to 36.000+ active addresses 12-01-2017 Page 6 DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2017 – 012

rumors of the emergence of specialized funds which are planning to be set up for the exclusive use of supporting newbuilding orders, trying as such to bridge the funding gap and give some favor towards the newbuilding order against that of seeking a modern secondhand. Secondhand units still hold an upper hand thanks to their considerably low price levels, however financing will play an even more important role in the Sale & Purchase market this year, as the number of cash rich buyers continues to decline. At the same time, there is keen focus to see what sort of restructuring we will witness in the market over the next 12 months, especially since we have already seen a breakdown of the efforts to consolidate some of the largest shipbuilders in South Korea and at a time where we will continue to see a draught in new orders”. Meanwhile, in a separate note about the way that the S&P markets have been progressing, ship valuations’ specialist, VesselsValue noted that in the tanker market, “Suezmax values have softened in both modern and older tonnage. The Devon (157,700 DWT, 2011, Samsung) and Eugenie (157,700 DWT, 2010, Samsung) sold enbloc to Great Eastern Shipping from Bretta Tanker Holdings. Devon sold for USD 38.6 mil vs VV value of USD 39.36 mil and the Eugenie sold for USD 36.4 mil vs VV value of 37.07”. In the dry bulk segment, VV said that “Panamax values have firmed in all ages except for resale and modern Supramax values have softened. The BSI Cadogen (81,300 DWT, 2016, Hudong Zhonghua) was bought by Alpha Bulkers Shipmanagement from Berkeley Shipping for USD 20.7 mil vs VV value of USD 19.8 mil. The Redwing (53,400 DWT, 2007, Chengxi) was sold by Eagle Bulk Shipping to Nanjing King Ship Management for USD 6.2 mil vs VV value of USD 7.15 million”. Finally, in the container segment, VV said that there were no container sales to report this past week, but older tonnage across all container types has seen a firming due to an increase in scrapping rates. Similarly, Allied said that “on the dry bulk side, activity continued to hold firm over the past two weeks, giving a positive end to 2016 and starting off 2017 on an equally strong footing. Buyers’ focus seemed to have been centered on the more modern tonnage with a fair split amongst most of the dry bulk size segments, though Capes seemed to have been lacking in transactions. Despite this prices have held fairly stable across the board for now, however there is a sense that there is strong buildup of upward pressure under the surface and we might be on track for some fair gains to be noted over the coming weeks. On the tanker side, there was a couple of high profile transactions taking place, with some of the bigger size segments seeing a fair amount of activity after several months of nothing going on. There was not much to be seen in the product tankers range, though this will likely to be a momentary gap in the market which will surely be filled over the coming weeks”. source : Nikos Roussanoglou, Hellenic Shipping News Worldwide

the SIEM HANNE just arriving from the Sable Offshore Field at Dartmouth, Nova Scotia. For those in warmer climates the temperature was –12C and you can see she made a bit of ice on the hull on the way in. Photo: John Attersley Quay Marine Associates Inc. (c) Fort Lauderdale Airport Shooting Kills Four Cruise Ship Passengers by Susan Young

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Four cruise passengers were among the five people killed in Friday’s tragic shooting at a crowded baggage claim area within Fort Lauderdale-Hollywood International Airport’s Terminal 2 – less than two miles from Port Everglades. At least six others were wounded. Several dozen airport passengers were also injured as people fled the scene.

Killed was Terry Andres, 62, Virginia Beach, VA, who had flown to Florida to board a cruise ship with his wife Anne, a travel agent, The Sun Sentinel in Fort Lauderdale reports. Also fatally wounded, according to information provided to WILE-FM in Ohio by a family member, was Shirley Timmons, 70, of Senecaville, OH; she and her husband Steve Timmons, who was also critically wounded, were celebrating their 51st wedding anniversary later in the month, according to USA Today. The couple reportedly flew to Fort Lauderdale to join their family on a cruise.

Michael Oehme, a business owner from Council Bluffs, IA, was also shot and killed; he was getting ready to board a cruise ship with his wife, Kari, who was also injured in the attack, ABC 9 News reports.

Another fatality was great grandmother Olga Wattering, from the Marietta, GA, area, according to The Atlanta Journal Constitution. She too was set to board a cruise ship with her husband this past weekend.

Another person was also killed, and others are still hospitalized with serious injuries. Many others were injured not at the baggage claim, but elsewhere in the terminal or in an adjacent terminal where the shots were heard, while fleeing the scene. The shooter was identified by authorities as Esteban Santiago, 26, of Anchorage, AK. He surrendered to police after the incident. Santiago is set for a federal court arraignment today in Fort Lauderdale on violence and firearms charges.

According to the FBI, Santiago arrived at the airport on a one-way ticket from Alaska. He had checked the firearm in his checked bag. However, upon arrival, he went to an airport restroom, loaded the gun and then fired directly at passengers waiting in the baggage claim area.

Ship Departures Delayed

Given the close proximity to the airport, Port Everglades had closed briefly to incoming vehicles on Friday, but had reopened just after 5 p.m. that day. On Friday, two ships -- Holland America's NIEUW AMSTERDAM and the CARIBBEAN PRINCESS of Princess Cruises – delayed their departures for several hours to accommodate late arriving passengers, some of whom had been at the airport but were stuck on the tarmac or elsewhere, waiting for authorities to give the go ahead to leave. Given the cancellation or delays for inbound flights, on Saturday, many cruise lines opted to delay additional ship departures for a few hours on Saturday. CruiseCritic.com message boards showed many passengers had flights cancelled, were rerouted or sizably delayed. So most ships left Port Everglades later than scheduled Saturday, to accommodate many late arriving guests. They included CARNIVAL CONQUEST, CORAL PRINCESS Holland America’s EURODAM and Royal Caribbean's HARMONY OF THE SEAS and FREEDOM OF THE SEAS. The Associated Press also said Costa Cruises arranged flights to Nassau, the Bahamas, on Saturday, for two of its passengers unable to reach COSTA DELIZIOSA prior to its Friday night departure. Similarly, Carnival Cruise Line arranged for 20 guests delayed at the airport Friday to fly to their Carnival ship in Nassau as well. At least one cruise line, Holland America Line, offered free counseling on several ships via a hotline operated by Empathia, an emergency management company.While Fort Lauderdale/Hollywood International Airport reopened early Sunday, the airport was dealing with some 20,000 pieces of luggage as well as purses, personal items and cell phones that had been abandoned at the airport.Terminal 2 at Fort Lauderdale/Hollywood International Airport is home to Delta. Ed Bastian, that airline’s CEO, put out this statement: “The thoughts and prayers of the entire Delta family are with the people of Fort Lauderdale and Broward County, and those involved in the tragic events today. We’re grateful to the first responders on the scene who immediately went into action to evacuate our customers and employees.”He also thanked the airline’s Fort Lauderdale employees and those elsewhere “who are working to re-accommodate our customers.” Due to the status of Terminal 2, Delta offered a waiver for customers who needed to change their travel plans without penalty; details are on www.delta.com. source: travelagentcentral

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The 2014 built DNK flag and owned chemical/oil products tanker NORD GERANIUM entering Valletta, Malta for the first time on Tuesday 10th January, 2017. Photo: Capt. Lawrence Dalli - www.maltashipphotos.com (c)

Shipping loans weigh down banks Bad loans in the ship industry, which has been in distress for years, are weighing on Germanys banks, according to a Handelsblatt analysis of the balance sheets of large financial institutions. Virtually all banks involved in the ship business set aside significantly higher provisions for bad loans last year. Maritime shipping has become one of the biggest problems for German banks and it does not only affect the usual northern, coastal-based suspects like HSH Nordbank and NordLB. Dekabank, for example, trimmed its business outlook for 2016 by a fifth because the bank set aside an unexpectedly large amount for bad ship loans in the first two quarters. Helaba, which has its core businesses in central, landlocked Germany, also attributed its elevated need for reserves to bad ship loans. And even Germany’s largest bank, Deutsche Bank, attributed its 50-percent increase in risk provisions to value adjustments, which became necessary “primarily because of the ongoing market weakness in the shipping sector and lower prices in the metal and mining sector.” The traditional providers of ship finance are especially hard-hit by the crisis in the industry. At NordLB, for example, risk provisions increased about fourfold in the first nine months of 2016 for this reason. In the past, only relatively small ships could fit through the Panama Canal, but the critical trade artery was widened this year. The NordLB subsidiary Bremer Landesbank will cut one in five jobs after running into problems over shipping loans. At HSH Nordbank, once the world’s largest ship financer, risk provisions would have more than tripled, to €966 million ($1 billion), in the first nine months of 2016 if it hadn’t been for a generous government guarantee. Thanks to the guarantee, the risk provisions only increased to €520 million. A country report by the International Monetary Fund also warns that German banks still face challenges from legacies from the financial crisis, “especially for banks involved in the ship industry.” The matter has grabbed the attention of the European Central Bank which intends to turn its attention to ship loans this year. One of the priorities for 2017 is the “investigation of excessive concentrations of credit risks in certain asset classes, such as ship loans.” Although German banks are not mentioned specifically, they are among the most important providers of ship financing in Europe. Developments in the ship lending sector contrast sharply with the general trend with bad loans. Thanks to strong economic development, the share of bad loans in Germany is extremely low. Second quarter ECB statistics show that problem loans only account 2.55 percent of all loans issued by German banks. This is a little more than a third of the European average. And the risk provisions of banks that were never significantly involved in maritime shipping, such as LBBW and BayernLB, are at an extremely low level. But banks that are exposed to the shipping industry face choppy waters ahead. “The plight of shipping continues, because world trade has not developed as positively as hoped,” said Burkhard Lemper, managing director of the Institute of Shipping Economics and Logistics at the University of Bremen. Mr. Lemper points out that world trade and, consequently, shipping are feeling the restrictions of trade, because of such factors as the sanctions against Russia and weak economic development in China. The financial crisis has been raging for eight years. One of its casualties this year was ship loan provider DVB Bank, a subsidiary of major cooperative bank DZ Bank. DVB Bank had successfully navigated its way through the banking crisis for years, but this year it was so hard hit that it is now expected to receive a roughly €150 million capital injection from its parent company. There has been no sign of relief yet. “The year 2017 is also unlikely to provide reasons for euphoria, because shipping continues to suffer from large excess capacities,” said Mr. Lemper. “The long crisis affects ship values for banks.” These values are derived from long-term revenue averages. “After eight years of crisis, more and more weak years are now reflected in the average values.” Because, he added, fire sales at low prices are also beginning to affect the market values banks need to calculate ship values. The problems in shipping are complex. One issue is excess capacity, which has hit the industry since 2008. For years there have been too many ships in the market because orders made by ship owners in previous years were pushing into a market already in crisis, forcing down freight rates for existing ships The problem was exarcebated by a fashion for ever bigger container ships. This provided cost benefits, but exarcebated the problem of over capacity.

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New problems have also arisen. In the past, only relatively small ships could fit through the Panama Canal, but the critical trade artery was widened this year. NordLB describes the consequences of this action in its quarterly report: “The share of the global container fleet that could navigate this passage has risen significantly since July 2016, and it was increased even further by considerable competitive pressure.” According to NordLB, by the end of the year “new records can be expected in the number of unemployed ships” in the market for containers. These radical changes reduce the value of older ships. At Dekabank, it was primarily ship loans from the period prior to 2009 that were responsible for a tripling of value adjustments. Not surprisingly, lenders like Commerzbank are trying to reduce their portfolios as quickly as possible. Although the bank has now eliminated most of its formerly €18-billion portfolio, maritime loans were responsible for about half of company-wide risk provisions in the first nine months of 2016. The portfolio has since shrunk to €5 billion. Paradoxically, Commerzbank’s ship loan inventory could still grow in the near future. The bank has submitted a bid for Oldenburgische Landesbank, which insurance group Allianz is thinking of selling. But the Allianz subsidiary’s balance sheet still contains a largest ship portfolio. Although OLB is unwilling to provide exact figures on the size of the portfolio, a spokeswoman said: “The previous volume of about €700 million was reduced by almost half, to significantly less than €400 million.” OLB is convinced that it has sufficiently cushioned the portfolio with risk provisioning, and the risk provision did remain stable in the first half of the year. However, Commerzbank is apparently not pleased with OLB’s dowry and sources said this is an important sticking point in the talks between Allianz and Commerzbank. Source: Handelsblatt Engine trouble forces cancellations for NG Orion

Photo: Martin Lochte-Holtgreven "Antarctica often throws up the unexpected. Early this morning some of us awoke to realize that the familiar thrum of the ship’s engine was missing," wrote naturalist Andrew Atkin from aboard the stricken vessel, "Later we found that there is a mechanical glitch and that we must proceed towards Ushuaia under reduced power at a modest speed. Although onward travel plans from Ushuaia will need some re-configuring due to our late arrival, we are not in any risk and have sufficient luxuries to see us through."

A statement from Lindblad read:

The "NATIONAL GEOGRAPHIC ORION " suffered an engine failure on Dec 27, 2016, which has forced the ship to cancel a number of its upcoming Antarctica sailings. All passengers and crew were safe. The incident took place as the ship was leaving the Antarctic Peninsula on its return to Ushuaia.

The ship was now on its way back to port through the Drake Passage at reduced speed (of about 5 kts). In order for the ship to undergo its necessary repairs, the Dec 27 departure, as well as all January departures, have been canceled. A team of engineers has been dispatched and was on their way to Ushuaia to assess the full impact of the technical issues. Once the evaluation has been completed, Lindblad Expeditions will release additional information. Passengers onboard when the incident occurred will receive reimbursement for any costs incurred due to their late arrival into Ushuaia, as well as a $1,000 credit toward future travel with Lindblad. Those who had already traveled to Santiago for the Dec 27 departure will receive a 100 percent refund (including airfare) as well as a full credit in the amount they paid, for future travel. source: expeditioncruising.

First Damen tug for Ocean Responding to fleet expansion requirements, Italian towage company Ocean has ordered a Stan Tug 2608 from Damen Shipyards Group. The contract marks Ocean’s first Damen tug purchase. After delivery – scheduled for June 2017 – the vessel will be mobilised for harbour towage duties in the port of Monfalcone. Ocean delivers tug, towage and offshore services in the northern Adriatic Sea. It is part of the larger Ocean Group headquartered in Trieste, Italy. Ocean Managing Director Mrs Michela Cattaruzza Bellinello explains the company’s motivations to purchase its first Damen tug: “We are very aware of Damen’s high

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standards. And for us, compared to the rest of the market, the price was very competitive. Furthermore, the fact that the delivery is extremely fast is very attractive.” “We bought a Stan Pontoon from Damen a couple of years ago and have been satisfied with the performance since then,” she continues. “Damen is efficiency.” Stan Tugs are one of the mainstays of the Damen portfolio. They benefit not only from Damen’s own shipbuilding experience, but also from considerable hands-on feedback from vessel owners and operators from around the world. The Stan Tug 2608, in particular, is an ideal vessel for harbour towage and vessel assistance roles. Its broad wheelhouse offers an all-round view of operations and an unobstructed deck creates a safe working area for the crew. “What’s more, this 26-metre Stan Tug delivers an impressive 45-tonne bollard pull,” says Damen Regional Sales Manager Andrea Trevisan. “It is a real Damen workhorse – and because we build vessels on stock, we can offer fast deliveries at competitive prices.” The tug will be built at Damen Song Cam Shipyard. To meet Ocean’s required specifications, the yard will make a number of modifications to the standard vessel design. These include the addition of a 600m3 FiFi installation and an aft winch as well as further adjustments necessary for Italian Flag notation.“This is a very special order for us,” continues Mr Trevisan. “It is very fulfilling to sell our first tug to this prestigious Italian company. Ocean is a leader in the northern Adriatic and we look forward to seeing this vessel in action there.”

MV WERFTEN selects ABB propulsion, automation and marine software for five new Genting vessels ABB says it will supply the complete power, propulsion and automation package for a series of new cruise vessels being built by MV WERFTEN for Genting Hong Kong brands Crystal Cruises and Star Cruises. The three Crystal Cruises’ luxury “Endeavor Class” mega- yachts will feature a Polar Class 6 and enable cruising in the Arctic; then follow the route of migrating whales along the coast of the Americas and Europe to Antarctica during winter. The Star Cruises “Global Class” vessels will be two of the largest on the market with 204,000 tons registered tonnage each. These impressive vessels are specially designed for the Asian cruise market. The five vessels will all feature a complete ABB propulsion system, electric power plant, automation and marine software system. The three Crystal ships will be powered by two Azipod D units each to enable the ships to navigate polar conditions whilst the two new Star Cruises “Global Class” ships will each be installed with three Azipod XO thrusters. All the vessels will also feature ABB´s flagship automation with Intelligent Maneuvering Interface and OCTOPUS marine software for optimised energy management. “The cooperation with ABB will further strengthen and support our vision to build the world´s most modern and efficient cruise vessels. Together with MV WERFTEN and ABB we will incorporate the latest technology into our luxury cruise ships,” commented Tan Sri Lim Kok Thay, Executive Chairman of the Genting Group. Jarmo Laakso, Managing Director of MV WERFTEN. “Our yards have a long experience in the shipbuilding industry and we are extremely pleased to cooperate with the leading propulsion and automation system provider in the industry. This full scope from ABB Marine and Ports will guarantee us the best available equipment and experienced high-level project management to work

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with.” “We are very excited to work with MV WERFTEN and Genting Hong Kong in this project. For two decades, Azipod propulsion has enabled cruise operators to push both technological and geographical boundaries. This exciting new generation of Genting vessels has been built in that same spirit and our power and Azipod propulsion systems together with automation and marine software will support the outstanding performance of the vessels,” said Juha Koskela, Managing Director of ABB’s marine and ports business.Approximately two thirds of the modern large cruise ships, icebreakers and high ice-class cargo vessels are fitted with Azipod propulsion. Cruise owners have been using Azipod units for two decades favouring its increased efficiency maneuverability and space saving properties over shaft-line systems.Marcus Högblom, Vice President of Global Sales, Passenger vessels and Azipod propulsion said: “We are seeing increased interest in the polar regions from the passenger sector, so our expertise in the cruise and ice-going sectors means we are ideally positioned and can fully support our customers with their new projects.”

Delivery of the five vessels is scheduled for 2019 onwards. source: portnews

HAL’s NOORDAM making fast at Waimahara Wharf ,Shakespeare Bay Picton NZ Photo: Dianna Robjohns (c) Shipping Outlook 2017 – Returns set for a comeback “Capital Returns” benchmarked to shipping In our DFRS Shipping Outlook 2017, we benchmark our shipping investments thesis to Capital Returns: Investing Through the Capital Cycle: A Money Manager’s Reports 2002-15 by Edward Chancellor. In a fascinating account, Edward Chancellor (editor and introduction), covers “Capital Cycle”, predicated on investment strategies employed at Marathon Asset Management. Typically, capital is attracted into high-return businesses and leaves when returns fall below the cost of capital. This process is not static, but cyclical – there is constant flux. The inflow of capital leads to new investment, which over time increases capacity in the sector and eventually pushes down returns. Conversely, when returns are low, capital exits and capacity is reduced; over time, then, profitability recovers. From the perspective of the wider economy, this cycle resembles Schumpeter’s process of “creative destruction” – as the function of the bust, which follows the boom, is to clear away the misallocation of capital that has occurred during the upswing. The key to the “capital cycle” approach – the term Marathon uses to describe its investment analysis – is to understand how changes in the amount of capital employed within an industry are likely to impact upon future returns. Or put another way, capital cycle analysis looks at how the competitive position of a company is affected by changes in the industry’s supply side” We believe the outlook for the global shipping industry and expected future returns directionally can be meaningfully explained using the “Capital Cycle” framework. We have identified key tenets under the “Capital Cycle” investing approach and looked at key sectors with this framework over the past few years, and base our future recommendations in accordance.

Key tenets under capital cycle investing approach

• Most investors base their decisions focussing on demand forecasting rather than supply. This happens despite knowing that demand is essentially a black box and does not pay enough attention to supply side. Market and investors remain entirely focused on swings in the Chinese commodity demand; there is a similar risk as the extrapolation of Indian coal demand in 2011-14. • It is the changes in the supply side dynamics that drive industry profitability. This key principle is often overlooked and stock prices fail to anticipate shifts in the supply side. Dry bulk shipping and container shipping is undergoing a massive supply side normalisation after years of supply growth, return expectations to rise owing to the shifts.

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• Irrespective of growth, only sectors/companies with a supportive supply side can justify good valuations. For eight years, the market did nothing. Shipping investors have been at the receiving end and we believe it is time to increase the exposure. Dry bulk companies still trade at fractions of their restructured books. The leaders in container shipping will increase the market share, and when this will be coupled with dwindling supply growth, it will make for a potent mix for returns. • Management and the company’s capital allocation skills are paramount. Investment banks drive the capital cycle, largely to the detriment of investors. Many new entrants, backed by fresh equity capital, saw their investors go through a painful value destruction. Many managements overextended their balance sheets and leveraged to the hilt. The restructuring has been painful, but survivors will make a comeback. • When policymakers/governments/sovereigns interfere with the capital cycle, the market clearing process might come under stress. (In economics, market clearing is the process by which, in an economic market, the supply of the traded goods is equated to the demand, so there is no leftover supply or demand. The new classical economics assumes that, in any given market, prices always adjust up or down to ensure market clearing.) Container shipping industry is the perfect example of the diluted market clearing process, but we believe it has run its course. • Investors are better positioned when employing the capital cycle approach. In our view, any company is available at a cheap rate when earnings are under stress. The key is to figure out whether that stress is permanent or temporary. We believe the stress levels for the shipping sector to ease significantly in 2017, primarily driven by supply normalisation, with real profitability and returns emerging over the next 18-24 months. It is the changes in supply side dynamics that drive industry profitability

Basing our sector views on the “Capital Cycle” approach, our top sectoral picks for 2017 are container shipping and dry bulk shipping. We remain negative on tanker shipping and neutral on gas shipping. DFRS top shipping stock picks for 2017

“Attractive” stocks for 2017 • A.P. Moller Maersk A/S (MAERSKB DC) – Positive outlook on contract rates is a key tailwind for share prices, in our view. The continued recovery in Asia to Europe spot market rates has improved carriers’ chances of securing higher 2017 contract rates and is a good sign for Maersk Line heading into the contract season. We believe Maersk Line will be a key beneficiary from a positive turnaround in freight rates, and recommend APMM shares on the back of continued positive industry developments in coming quarters. • Orient Overseas International Ltd (316 HK) – We believe higher and more sustainable freight rates are more likely outcome in 2017. As OOIL normally undertakes 60-70% of Transpacific trade and 35-50% of Asia-Europe trade volumes on a contract basis, this could prove a key positive for the company. Recovery in OOIL’s biggest market, Intra Asia will support profitability. OOIL’s financial soundness negates balance sheet concerns in what has been a volatile period for sector profitability. The added speculations around M&A activity will also support the stock price. • Pacific Basin Shipping Limited (2343 HK) – Pac basin has been one of our top picks in the dry bulk sector and we continue to maintain our positive stance on the company acknowledging its ability to deploy its fleet at higher than market rates. In addition to reasonable valuations, the company has no concerns on the balance sheet. PB has a rich pedigree and maintains its leadership position in the Handysize and Supramax segments. • Scorpio Bulkers Inc. (SALT US) – SALT has addressed debt and liquidity concerns in 2016 and continues to negotiate with shipyards and lenders to supplement liquidity. It has also taken advantage of the rise in freight rates and has contracted 17 vessels on short-term charters, with most of the contracts expiring by second quarter. With majority of its fleet deployed on the spot markets, the freight rate recovery post the seasonal weakness in 1Q17 will be a key catalyst. • Star Bulk Carriers Corp (SBLK US) – Multi-pronged actions in 2016 have considerably eased liquidity risks and the company has managed to restructure its balance sheet on multiple counts. On earnings, we believe cost management to support operating earnings in FY17. SBLK has one of the lowest average operating expenses for its vessels and a favourable freight rate environment will positively impact EBITDA. “Unattractive” stocks for 2017 • Our key negative call for 2017 is “Unattractive” rating on all tanker stocks under our coverage, Euronav NV (EURN US), DHT Holdings Inc. (DHT US), Nordic American Tankers Ltd. (DHT US), Tsakos Energy Navigation Ltd. ( TNP US) and Teekay Tankers Ltd. (TNK US). • We forecast declining earnings and diminishing dividends to keep tanker shipping stocks under pressure in 2017. Marginal recovery in freight rates is unlikely to be supportive of stock prices. • Dividend expectation is the key driver of the tanker shipping stock performance and we do not expect dividend increases from any of the companies under our coverage. Source: Drewry Financial Research Services

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Russian ships performed a unique transit voyage along the Northern Sea Route

For the first time in the history of Arctic navigation a convoy of ships escorted by FSUE Atomflot’s nuclear-powered icebreaker 50 LET POBEDY successfully completed a voyage along the Northern Sea Route. The westward voyage lasted from late December till the beginning of January. Among the ships in the convoy was the SHTURMAN OVTSYN, Arctic shuttle tanker of Sovcomflot, the Company told IAA PortNews. Apart from the SHTURMAN OVTSYN,the convoy included the AUDAX and the ARTIKA-1. The tanker joined the convoy in the Bering Strait on 21 December 2016 and covered 2,400 nautical miles up to the Gulf of Ob in the Kara Sea. Then, on January 3 the Shturman Ovtsyn sailed independently to the Kamenny Cape in the Gulf of Ob, for loading. The voyage of the convoy by the Northern Sea Route was performed in the dead of the polar night in quite challenging ice conditions. In the East Siberian Sea the convoy had to sail through heavy to break first-year ice breccia with inclusions of multi-year ice ridges of up to 4 points and under ice pressure of up to 3 points. Sovcomflot emphasized that “thanks to qualification and high professionalism of Russian seafarers none of the inevitable challenges of a voyage in a convoy of diverse vessels, nor polar night or ice pressure could hinder the ships from completing their voyage successfully with the assistance of Atomflot’s nuclear-powered icebreaker. SHTURMAN OVTSYN,is one of Arctic shuttle tankers in a series ordered by Sovcomflot Group under a long-term contract with Gazprom Neft. They are designed to carry crude oil from the Yamal Peninsula (YNAD) to the port of Murmansk all year-round. The vessels are registered under the flag of the Russian Federation and are homeported in Saint-Petersburg. Each tanker has deadweight of approximately 42,000 tonnes (SHTURMAN OVTSYN,: 41,550.8 tonnes), length - 249 m, breadth– 34 m. The Russian Maritime Register of Shipping (RS) assigned the vessels an ice class Arc7.The Shturman Albanov joined the fleet of SCF on 16 August 2016, the Shturman Malygin – on 7 October 2016, the Shturman Ovtsyn was put into operation on 8 December 2016. All the three tankers are currently deployed for delivering crude oil from the Vorota Arktiki (Arctic Gate) terminal near the Cape Kamenny to Murmansk.The vessels’ technical characteristics are unique. The design of the new vessels takes into account the specific features of the waters in the Gulf of Ob, where some areas are relatively shallow – about 10 metres deep – and which is covered with ice from October to July. They are capable of operating in the Arctic all year-round at temperatures down to –45°С. Their propulsion system consists of two Azipod thrusters with a total capacity of 22 MW, which provides a high ice-breaking capability and good manoeuvrability in sailing through ice drifts and heavy ice fields, particularly due to a DAT function (Double Acting Tanker). A double acting tanker sails in the astern direction when it comes to ice breaking. The design of the vessels complies with the highest safety standards of navigation, which is a basic principle of SCF Group. source : Portnews

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RNLI FUNDRAISING GROUP LAUNCHING CELEBRATIONS TO MARK 60 YEARS OF SUCCESS A groupwhich has raised more than £350,000 for the RNLI is celebrating its 60th anniversary. \ The Stonehaven fundraising branch of the RNLI started when a meeting was held in the Upper Town Hall on Monday, January 14, 1957. There were 19 ladies at the meeting, with Provost Ramsay in the chair, and what was then know as the Stonehaven Ladies’ Lifeboat Guild was formed. Vi McDonald was appointed president, a post she held until November 1983 when she was given the title of honorary president which remained until her death in 2003.During the 60 years of the branch there have only been six presidents – Vi McDonald, Margaret Thomson, Karen Smith, Margaret Curnow, the late Alena Bathie and the present president Roberta Duncan. Roberta, who has been president for eight years, said: “It is a great achievement nowadays as a lot of these organisations are going by the wayside as they can’t get the volunteers. “We are managing to stay afloat with the committee we have.” The group has had many members over the years and currently has around 10 sitting on the committee. The Scottish Lifeboat Council acknowledged the hard work of the Guild in 1975 when they presented a certificate of thanks signed by the then convener, the late Duke of Atholl.Several members of the present branch have been awarded badges and certificates. Former president and current vice president Karen Smith was awarded the British Empire Medal (BEM) for her services to the charity over the last 39 years. Roberta has also been awarded a silver medal by the RNLI in recognition of her contribution to the charity. Over the years there have been a range of fundraising activities including fairs, gala dinners and gala days. Roberta, 73, said: “We have a cheese and wine event, and fish and chip night where we book a venue and sell tickets and we all have a fish supper.“We have done it for the last three years and the fish has been donated by the Bay Fish and Chip Shop. “We also hold coffee mornings and on May 1 we have the RNLI May Day which is a significant fundraiser for the charity. “The event is when we have the wellie walk, which is connected to the yellow wellies the crews wear.“We walk from the RNLI to Cowie Village and back.”Roberta, who lives in Stonehaven and has been involved with the RNLI for around 15 years, said the support of the community was “fantastic”. She added: “We have just done the Nippy Dipper which raised £1,000 and in December we had the lifeboat take Santa around the harbour, raising £890. “It is really fantastic that we raised nearly £2,000 in two weeks. “There has been even greater support since we got our own lifeboat in 2014.”The RNLI originally had a lifeboat in the town but it was phased out in 1984. The station was then manned by the Maritime Rescue Institute but it was forced to close due to storm damage. The RNLI station was reinstated on a trial basis in 2014 following a donation of £90,000 from Nexen Petroleum UK Limited.Roberta added: “It has been fantastic for the community as they see what is going on and the work that is done, so people are donating more. “It has made a big difference.” To celebrate the 60th anniversary the branch will be holding a party in the Station Hotel, Stonehaven on January 20. Tickets are available from Roberta Duncan by calling 01569 763500 or Karen Smith on 01569 763380 source: eveningexpress

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The Damen Fast Crew Supplier 5009 SVS CORNWALLIS sailed from Stellendam to Vlissingen-East and moored at Damen Shiprepair Vlissingen Photo : Wim Kosten (c) WFW advises Nordea Bank AB on US$409.5m loan facility to Euronav International law firm Watson Farley and Williams LLP (“WFW”) advised Nordea Bank AB (publ), filial i Norge (“Nordea”) in relation to a US$409.5m revolving credit loan facility for Euronav. The loan will refinance a US$500m facility signed in 2014 on which WFW also acted for Nordea and will provide Euronav with funds for general corporate and working capital purposes. Mandated lead arrangers are ABN AMRO Bank NV, Danish Ship Finance, DNB (UK) Limited, ING Bank, Nordea Bank AB (publ), filial i Norge and Skandinaviska Enskilda Banken AB (publ). The facility refinances 11 VLCCs registered on Belgian, Marshall Islands and French flags and matures in 2023. Maritime Partner Michael O’Donnell led the WFW London team acting for Nordea on the loan facility, assisted by Associates Emeline Yew and Philip Arcoumanis. WFW New York and WFW Paris provided Marshall Islands and French law assistance respectively. Fransen Luyten acted as Belgian counsel. Michael commented: “We were very pleased to act for Nordea on this loan facility to enable Euronav to refinance its US$500m facility which was completed just after Euronav’s US$186m sale and lease back deal”. Source: Watson Farley & Williams (WFW) Due to travelling this Friday & weekend the newsclippings may reach you irregularly

Liberian flagged vessel LADY DAHLIA built 2007 at 8539 GRT .Last Port was Ijmuiden, then anchored in Forth Photo : Tim Winkelmann MSS1 Radio Room (C) Euroseas Ltd. Announces Delivery of Panamax Drybulk Carrier Euroseas Ltd., an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that it took delivery of the previously announced acquisition of M/V TASOS, a 75,100

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dwt Panamax drybulk carrier built in 2000. Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA since January 31, 2007. Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (FE) Ltd. Inc., also an affiliated ship management company, which are responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. After the sale of the M/V ELENI P, and including the previously announced acquisition of the M/V ALEXANDROS P (to be delivered to the Company in January 2017), the Company has a fleet of 14 vessels, including one Kamsarmax drybulk carrier, three Panamax drybulk carriers, one Ultramax drybulk carrier, one Handymax drybulk carrier, and eight Feeder containerships. Euroseas six drybulk carriers have a total cargo capacity of 417,753 dwt, its eight containerships have a cargo capacity of 13,170 teu. The Company has also signed a contract for the construction of one Kamsarmax (82,000 dwt) fuel efficient drybulk carrier. Including the new-building Kamsarmax, the total cargo capacity of the Company’s drybulk vessels will be 499,753 dwt. Source: Euroseas Ltd.

Seen from Heerema’s THIALF anchored off Trinidad the AHT BYLGIA during sunset with in the background just beside the sun the KOLGA with barge loaded with jacket and over the BYLGIA in the background seen 9 drillships waiting on better times Photo: Bruno van Kalker © Stena Bulk's 9th IMOIIMAX tanker named at GSI Shipyard, China The STENA IMMACULATE the ninth of a total of 13 IMOIIMAX MR tankers, was named, 10 January 2017. The vessel is owned by Stena Bulk and her godmother was Katarina Ljungqvist, Head of Handelsbanken Western Sweden. The solemn naming ceremony was held at the shipyard GSI (Guangzhou Shipbuilding International) in Guangzhou from where the vessel will be delivered within the next few days, the shipowner said in a press release.A large number of guests, from both corporate management and partners as well as representatives of the shipyard had gathered on the quayside to attend the naming ceremony. The ceremony began with traditional Chinese dance and music before godmother Katarina Ljungqvist swung the bottle of champagne against the tanker’s bows and wished the vessel, her captain and his crew fortune and prosperity on the seven seas. The Stena Immaculate’s captain, Sachin Salunkhe, then showed the guests around the newly built vessel. On her maiden voyage, with a cargo including vegetable oils, she will sail from Papua New Guinea to Europe. “Almost exactly two years have passed since the delivery of our first IMOIIMAX tanker and the vessels are continuing to perform beyond our expectations. The concept has set a new Distribution : daily to 36.000+ active addresses 12-01-2017 Page 17 DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2017 – 012

standard for both cargo efficiency and bunkers consumption. With number nine of the13 vessels on order soon out on the market, this tanker will be yet another addition to our high-quality fleet. We would also like to take the opportunity to thank the shipyard GSI for fantastic collaboration during both the technological development and construction”, said Erik Hånell, President & CEO, Stena Bulk. The chemical and product tanker has a length of 183 metres, a beam of 32 metres and a deadweight of 50,000 tons. IMOIIMAX is a further development of an already well-established concept and the innovative technical design was developed by Stena Teknik together with the Chinese shipyard GSI. It offers several advantages such as extra large cargo flexibility, a high level of safety and economical fuel consumption – 10-20% lower than that of equivalent vessels when sailing at service speed. All the IMOIIMAX tankers will be included in a fleet operated by Stena Weco and will sail in the company’s global logistics system, which currently employs more than 60 vessels. The delivery of the tenth IMOIIMAX tanker, the Stena Impeccable, is expected to take place in March 2017. The remaining three vessels will be delivered by 2018. Five of the 13 IMOIIMAX tankers are wholly owned by Stena Bulk, four together with GAR (Golden Agri Resources), two by Stena Bulk’s sister company Concordia Maritime and two by Stena Weco. source: portnews

The SILVER WIND visited Willemstad-Curacao - Photo : Kees Bustraan © China’s new Silk Road is getting muddy With the future of U.S.-China relations an open question for the incoming Donald Trump administration, many have focused on whether the president-elect’s promise to withdraw from negotiations over the Trans-Pacific Partnership (TPP) will enhance Beijing’s growing influence in East Asia. But rather than hand-wringing over TPP’s ignominious failure, Asia watchers should turn their attention to China’s unprecedented $1 trillion strategic gambit: the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, aka “One Belt, One Road” (OBOR). Launched in 2013 as President Xi Jinping’s signature initiative, OBOR holds great promise, as well as potential pitfalls, for both China and its neighbors. OBOR is a game-changing plan to bring about the next stage of globalization, a Sinocentric vision that harks back to the ancient Silk Roads — but this time on Beijing’s terms. The goal is to create a new economic “belt” of connective infrastructure westward into Eurasia and a new maritime “road” connecting China to Southeast Asia, South Asia, the Middle East, and Africa. Examples of OBOR projects include a railway linking China to Laos and another one through Mongolia and Kazakhstan; gas and oil pipelines through Turkmenistan and Myanmar; road and port development in Sri Lanka; and the cornerstone $46 billion China-Pakistan

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Economic Corridor (CPEC), which encompasses highways, pipelines, coal-based electricity generation, and the Chinese-operated Gwadar port. OBOR is primarily a “build it and they will come” initiative. Rather than improving the host country’s industrial or productive capacity, it expands and strengthens transportation and energy arteries, including ports, rails, communications, electricity, and pipelines. It promises to stimulate the ailing Chinese economy in the short and medium terms through construction and telecoms contracts and capital goods provision while in the long term opening new trade routes so Chinese products can fill store shelves in OBOR countries for decades to come. Lending to your neighbors to finance infrastructure projects that you build for them is a shrewd way to make friends while generating business for Chinese firms and earning better returns than U.S. Treasury bills. But the approach does carry significant economic and political risks for China, as well as for recipient countries and local communities. Under OBOR, China is loaning hundreds of billions of dollars to fund infrastructure construction in foreign countries during an economic slowdown at home — a recipe that could spell disaster if it fails to stimulate the Chinese economy or leaves poor countries hopelessly in hock to Beijing. For two decades, China has promoted an increasingly expansionist “going-out” policy among its state-owned enterprises that includes strong financial and political support for construction and telecoms companies to penetrate Asian and African markets. OBOR takes this approach to a new, and far riskier, level. Beijing has set aside nearly $1 trillion to make concessionary loans to about 60 developing countries via its policy banks — principally the China Development Bank and Silk Road Fund — to underwrite the construction of approximately 900 infrastructure projects. After terms are reached with a host country, funds are transferred directly into the Beijing-based bank accounts of China’s state-owned enterprises, which build the project often with Chinese materials. This is a model Beijing has employed extensively in Africa. Once Beijing’s political blessing for a project is communicated via funding from its policy banks, China’s national- or provincial-level state-owned enterprises build it, often with little or no political or financial risk assessment or market research. China’s sluggish domestic economy and fears of a U.S.-China trade war have increased the pressure on officials to approve OBOR projects and move them forward expeditiously. Policymakers are hoping OBOR can help mitigate falling demand and deploy excess capacity in Chinese construction firms and their suppliers. In China, it seems everyone is banking on the Silk Road revival; provincial and local officials, along with suppliers from around the region, have been attending massive Silk Road-themed product forums like the China-Eurasia Expo held in Urumqi last September. Even Maotai, China’s most famous brand of baijiu, a distilled Chinese liquor, is hoping to hitch a ride on OBOR to expand sales and international distribution networks. The problem is due diligence. OBOR involves risking hundreds of billions of dollars on the assumption that poor countries either can or will pay China back. The lending program’s sheer size has already required the Chinese government and party organs to detail hundreds if not thousands of staff to vet scores of projects across a myriad of regulatory, linguistic, and cultural environments. This effort demands intragovernmental coordination across dozens of agencies and state-owned enterprises, many of which have little or no understanding of political or financial risk analysis. With such little experience in Beijing, much OBOR planning has been farmed out to provincial-level officials who are equally unqualified to vet the future profitability of investments in numerous uncertain political, economic, and regulatory environments. Religion is another consideration for the atheist Chinese, since OBOR traverses large swaths of the Muslim world. OBOR represents a massive and unprecedented expansion of connected lending to international borrowers that enmeshes the already deeply indebted Chinese banking system in some of the world’s most precarious economic and political environments. Many poor countries are happy to take cheap Chinese loans now and let future leaders and citizens pay them back. Indeed, China’s existing loans to friendly governments in Zimbabwe, Venezuela, and Sri Lanka already portend tens of billions of dollars in potential losses. China’s response, especially in Africa, has often been to grant loan forgiveness and then make more loans, which has, in turn, created serious moral hazard. Many governments are banking on China’s continued largesse and are thus happy to get as much as they can while they can. Still, even Beijing, which is sitting on $3 trillion in reserves, can’t write off bad loans ad infinitum. Another looming problem is graft. Amid Xi’s historic crackdown on corruption at home, OBOR could open new international opportunities for Chinese firms to collaborate with each other and their foreign hosts to engage in waste, fraud, and embezzlement. China, which itself ranks an unimpressive 83 on Transparency International’s 2015 corruption index, is preparing to build hundreds of projects in some of the least accountable countries in the world, such as Turkmenistan (154), Kyrgyzstan (123), Cambodia (150), and Myanmar (147). Although most of the cash will never leave China, the sheer quantity of equipment and materials, such as steel, concrete, and timber, needed to produce so many projects will provide ample opportunity for pilferage and other types of on- site malfeasance. Indeed, Chinese firms operating in systemically corrupt business and regulatory environments may find it impossible to gain the necessary local support without greasing palms. Corruption could also come via kickbacks or bribes to loan officers from self-interested firms or officials, padding purchase orders, or cut-rate building materials. Such misconduct remains a problem in China itself, and it seems likely the weaker regulatory environments in some OBOR host countries would only exacerbate it. Xi himself seemed to recognize the problem last August when he called for a “stable, sustainable and risk-controllable financial security system” to supervise the OBOR initiative. China’s business practices are already facing local pushback in several countries where its state-owned enterprises have built energy and infrastructure projects. Some firms have been accused of cutting corners, ignoring safety standards, using secondhand or low-quality materials and equipment, and building environmentally

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destructive projects, such as hydroelectric dams or coal-fired power plants. Complaints have come from Laos, Vietnam, and Cambodia regarding environmental damage and droughts from Chinese hydropower projects along the Mekong River; from Indonesia regarding an ill-fated, over-budget coal power plant and a failed high-speed rail project; and from Myanmar regarding Chinese firms clear-cutting forests. Last month, dock workers at Hambantota port in Sri Lanka held the massive Japanese vehicle carrier Hyperion Highway and its crew hostage for several days after they were cut out of a 99-year lease agreement with the state-owned China Merchants Port Holdings Co. Meanwhile, in Venezuela’s Bolívar state rioters looted hundreds of Chinese-owned businesses including shops, supermarkets, and warehouses. In Pakistan, workers on Chinese mining and construction projects have been attacked by Baloch rebels embroiled in separatist struggles with the government. Extensive squabbling among Pakistan’s political parties, the military, and local community leaders continues to delay the implementation of numerous CPEC projects. In response, at a rare public address last month in Islamabad, Zheng Xiaosong, the vice minister of the Chinese Communist Party’s International Department, called for Pakistan’s political parties to “work together to resolve their differences and make CPEC a success.” China has also enhanced security. Beijing will soon be deploying navy vessels to help secure Gwadar port, and the China Shipbuilding Trade Co. has turned over two new patrol boats to the Pakistan Maritime Security Agency. But diplomatic platitudes and enhanced security alone cannot protect every OBOR project and may further embroil China in the domestic politics of its neighbors. Without on-site accountability, environmental degradation and community displacement, which have already become problems with China’s projects in Southeast Asia, are likely to fuel local resistance. OBOR presents significant domestic economic and political risks for China. There is real tension between the Chinese government’s drive to invest in riskier developing countries via OBOR and private capital’s flight to safety amid a domestic economic slowdown and growing protectionist fears. Just as Beijing is pushing OBOR on its state-owned enterprises, private Chinese investors are finding ever more ingenious ways to offshore their resources in safer assets, particularly U.S. real estate. Beijing has responded with increasingly pervasive capital controls, but technology has made these difficult to enforce. More than a decade ago, the United States called on China to be a “responsible stakeholder,” both in its neighborhood and beyond. The years since have seen the rise of a new, and increasingly assertive, Chinese foreign policy. OBOR is a big part of Beijing’s new approach and a potential harbinger for a new stage of Sinocentric globalization. It is a grand vision with wide-reaching political consequences both at home and abroad. If it succeeds, China will become the unquestioned Eurasian hegemon. But Beijing’s efforts likewise carry enormous economic and political risks that Chinese policymakers know they must mitigate if President Xi’s initiative is to live up to its billing. The question is whether OBOR can overcome the logistical, political, security, and financial challenges identified above — or be thwarted by them, losing hundreds of billions of dollars and creating a slew of disgruntled debtor neighbors with landscapes scared by white-elephant projects. Only time will tell. Source: Chicago Tribune

see also : https://www.youtube.com/watch?v=1R4Hb0S7Ikc#t=101 Heuvelman Ibis signs contract for Damen Cutter Suction Dredger 350 On 22nd December, Damen Shipyards Group signed a contract with the Netherlands-based dredging company Heuvelman Ibis for the delivery of a Cutter Suction Dredger (CSD) 350 and 2 Booster Stations (BS) 350. Heuvelman Ibis will initially put the dredger to use on a canal dredging project in the province of Groningen in the north of the Netherlands. For undertaking the dredging project, which covers the extraction of approximately 220,000m3 sediment from the Winschoterdiep canal, the client selected a Damen CSD 350. This heavy duty dredger design is a standardised vessel that Damen builds in series and keeps on stock in order to ensure a fast delivery. Although the CSD 350 is a series built dredger, there are a number of options available to suit individual client requirements, such as the inclusion of a spud carriage system and anchor booms. Heuvelman Ibis Managing Director, Erik Stuut, said: “Having worked with Damen on several occasions in the past we have every confidence in their capabilities, not only to deliver us a reliable vessel, but also to deliver ongoing service and assistance.”Damen Sales Manager Vincent de Maat: “We are very proud to be delivering this vessel to Heuvelman Ibis. We are looking forward to working on making

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this dredger to the client’s exact requirements and to continuing our excellent relationship with them following the handover in Q2 2017.”

Maersk adds second Iranian call by: Bruce Barnard

The MAERSK KENTUCKY – Photo : Fabian Montreuil © Maersk Line has expanded its footprint in Iran by adding a second port of call less than three months after it resumed services to the country following the lifting of sanctions imposed on Tehran because of its nuclear program. The Danish carrier, which suspended services in 2012, has added the port of Bushehr to its Iran coverage, which was relaunched with calls to Bandar Abbas in October. Maersk, which also has an office in Tehran, the Iranian capital, said it selected the port because it is the largest gateway for transportation of goods in the province of Bushehr, with an annual throughput of seven million tons. The port of Bushehr can provide all containerized cargo services and, most significantly, refrigerated products.The port has 400 reefer plugs and cold-storage warehouses with a total capacity of 5,000 tons and has easy access to local markets and is a short distance from ports in neighboring countries, including Saudi Arabia, Qatar and Bahrain, Maersk said. The first direct weekly feeder sailing from the port of Jebel Ali in the United Arab Emirates to Bushehr launched on Jan. 4. When Maersk first resumed service to Iran the company said the market was estimated at about 700,000 forty-foot-equivalent units. Iran’s largest trading partners in first 11 months of 2016 by value were China, the United Arab Emirates, South Korea, Turkey, and Germany, according to Global Trade Atlas, a sister product of JOC.com within IHS Markit. China and the UAE were by far the largest trading partners with Iran, amounting to 24.3 percent and 15.9 percent, respectively, of Iran’s international trade volumes, according to GTA. South Korea accounted for 8.1 percent, Turkey was 6.9 percent, and Germany 5.5 percentMaersk’s 2M partner Mediterranean Shipping Co. resumed full service to Iran much earlier than the Danish carrier, with a ship with a capacity of 9,000 twenty-foot-equivalent units calling at Bandar Abbas on Dec. 31, 2015. MSC partially resumed service to Iran in April 2014, employing a third-party feeder service that enabled cargo to be transhipped at Jebel Ali. Source: The Journal of Commerce European-Caribbean Service to stop off in London Ships will be able to stop in the UK for the first time following improvements to the line’s North Europe to Central America service rotation. Dedicated to reefer transport, the service will provide one of the shortest transit times on the market between Central America and North Europe. It also enables the UK to connect with the whole of the Caribbean region through CMA CGM’s strategic hub in Kingston, Jamaica. The new ECS rotation will be: Puerto Limon, Kingston, Rotterdam, DP World London Gateway, Hamburg, Antwerp, Le Havre, Caucedo, Kingston, Santo Tomas de Castilla, Puerto Cortes and Puerto Limon. Offered in cooperation with Hapag–Lloyd, the service will be run by five 2300 TEU capacity, state-of-the-art CMA CGM vessels and one Hapag–Lloyd vessel. Rob Waterman, CEO, CMA CGM UK, said: “We’re extremely pleased to be able to offer our customers an enhanced service offering between Central America and North Europe. These improvements will lead to shorter transit times and provide greater choice to shippers moving goods between Central America & the Caribbean to the UK." source: ukhaulier.co.uk

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CASUALTY REPORTING

Maersk containership runs aground in Southern Italy by: Nicola Capuzzo 9,000 teu containership GUSTAV MAERSK grounded early Tuesday morning while transiting in the Strait of Messina, Southern Italy.According to the local coast guard reported, the ship owned by Maersk departed from Rijeka, Croatia and was en route to Gioia Tauro in Italy when it suffered a mechanical failure and grounded in front of the village Torre Cavallo. There was no oil spill or injuries to the crew reported, and the vessel was freed by three tugs from the ports of Milazzo and Messina. Five hours later the vessel was free to sail to the port of Gioia Tauro with two tugs in assistance. An investigation into the cause of the incident is currently underway by the coast guard and ship registry. source: Splash 24/7 CLICK at the photo ! NAVY NEWS

The Danish SF 3000 support ship ESBERN SNARE, seen on an earlier visit,has returned to Devonport for an intensive course of instruction and training under the Royal Navy’s Flag Officer Sea Training ( FOST). A recent participant has described the operational training..”in a ten day appraisal there were 12 damage control exercises fighting simulated fires and floods, two ‘safety at sea’ events involving boarding a damaged vessel to provide assistance,machinery breakdowns,live firing shoots and 21 pilotages.” photo : Raymond Wergan ©

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Electric Boat says it can meet Navy goal for adding subs By: Associated Press Submarine builder Electric Boat would be able to meet the expectations of an ambitious U.S. Navy shipbuilding plan, given the time and resources, company president Jeffrey Geiger said Monday. The Navy released a 355-ship proposal last month that calls for adding 47 ships, including 18 attack submarines. That's five more ships than Republican President-elect Donald Trump proposed while on the campaign trail. It would be the biggest shipbuilding boom since the end of the Cold War. Geiger spoke to government and business leaders Monday for the company's annual update and said the Navy has been asking him for several weeks whether Electric Boat could still build two attack submarines a year, or even three, when a new class of ballistic-missile submarines is under construction.He told an Associated Press reporter afterward that the company would be able to meet the Navy's expectations but would have to expand its workforce, supplier base and facilities."I'm excited about the potential opportunity, and very pleased that the Virginia-class submarine is as vital to the Navy mission as it is, that it could represent that kind of an increase in the fleet," Geiger said. The General Dynamics Corp. subsidiary builds two Virginia-class attack submarines with Newport News Shipbuilding in Virginia annually.Electric Boat also is designing the ballistic-missile submarines. Construction on those ships isn't expected to begin any sooner than the fall of 2020. Once construction begins, the production of attack submarines will typically be one a year. Geiger said that if Congress supports the Navy's proposal, it would take a significant expansion in the number of companies that supply submarine parts and continued investment in workforce training programs.About 3,000 submarine suppliers operate in 47 states. A new program at the Community College of Rhode Island began Monday with its first class of Electric Boat trainees. The Navy currently has 274 deployable battle force ships, far short of its old goal of 308 ships. Boosting shipbuilding to meet the Navy's proposed goal could require an additional $5 billion to $5.5 billion in annual spending in the Navy's 30-year projection, according to an estimate by the Congressional Research Service.Rep. Joe Courtney said the Navy needs the additional ships, but it will be challenging to pay for such a "big jump" and ships would have to be procured and built more efficiently. The Democratic congressman's district includes Electric Boat. "I think it's going to go up, I really do," he said. "Whether you can get that high, it's a very daunting task."Fifteen attack submarines are currently under contract, including 11 under construction. Electric Boat employs about 14,500 people, mainly in Connecticut and Rhode Island. Employment is currently projected to grow to 18,000 by 2030, with 2,000 new hires this year to increase the headcount and account for attrition. The company had more than $5 billion in sales in 2016. source: Associated Press Philippines says finalizing deal to observe Russian military drills

Philippine President Rodrigo Duterte (4th L) gestures with Russian Ambassador to the Philippines Igor Khovaev (3rd L), Russia's Rear Admiral Eduard Mikhailov (5th L), and other Philippine and Russian officials in front of the Ka-26 anti-submarine helicopter at the anti-submarine navy ship Admiral Tributs at the south pier in Metro Manila, Philippines January 6, 2017. REUTERS/Noel Celis/Pool The Philippines is finalizing a security deal with Russia allowing the two countries' leaders to exchange visits and observe military drills, a minister said on Monday, at the same time assuring the United States that ties with Moscow will not affect its alliance with its traditional ally. Two Russian warships made port calls in Manila last week with President Rodrigo Duterte touring an anti-

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submarine vessel, saying he hoped Moscow would become his country's ally and protector. Duterte has thrown the future of Philippine-U.S. relations into question with angry outbursts against the United States, a former colonial power, and some scaling back of military ties while taking steps to improve relationships with China and Russia. In October, Duterte told U.S. President Barack Obama to "go to hell" and said the United States had refused to sell some weapons to his country but he did not care because Russia and China were willing suppliers. He is due to go to Moscow in April. The visit by the Russian warships was the first official navy-to-navy contact between the two countries. "We will observe their exercises," Philippine Defence Minister Delfin Lorenzana told reporters during the military's traditional New Year's call at the main army base in Manila. "If we need their expertise, then we will join the exercises. That's the framework of the memorandum of understanding that is going to be signed. It could be a joint exercises but, initially, its going to be exchange of visits." Lorenzana assured Washington the military agreement with Moscow would not allow rotational deployment of Russian troops, planes and ships in Manila for mutual defense. "It's not similar to the U.S. which is a treaty, Mutual Defence Treaty, which mandates them to help us in case we're attacked," he said. "We wont have that with Russia. The MOU is about exchange of military personnel, visits and observation of exercises."He said the Philippines also expected a team of Russian security experts to visit to discuss the sale of new weapons systems. Last month, Duterte sent his foreign and defense ministers to Moscow to discuss arms deals after a U.S. senator said he would block the sale of 26,000 assault rifles to the Philippines due to concern about a rising death toll in a war on drugs launched by Duterte. Source: Reuters (Reporting by Manuel Mogato; Editing by Nick Macfie) SHIPYARD NEWS

Core activities at Eerland Shiprepair are mainly:

- Restoration activities, employing our self propelled crane ship Marine Service 1, lifting 35 metric tons up to a reach of 45 m. - Ship repair; domestic and abroad. - Under water activities, employing our mobile docks. - Qualified welding jobs for steel, aluminium, stainless steel and duplex. - Overhauling of winches of all brands; - Repair of gangways, quays, pontoons, etc. - You can find more about our projects at our website. IJzerwerkerkade 41, 3077 MC Rotterdam, Harbour no. 1095 Tel. +31 (0) 10-483 48 88; Fax +31 (0) 10-482 23 25 [email protected] www.eerlandshiprepair.nl

PIRIOU modernizes oceanographic vessel Thalassa for Ifremer PIRIOU NAVAL SERVICES, the French branch of the PIRIOU group for Repair and Services, won the European bid Ifremer launched in June 2016 for the modernisation of its oceanographic research vessel THALASSA. Delivered in 1995, Thalassa is an oceanographic vessel mainly dedicated to public service missions relating to fisheries research and physical oceanography. Thalassa can deploy the teleoperated ROV system Victor 6000, thus partly answering requests for deep environment missions. The vessel will undergo a full mid-life maintenance and refit programme in acquiring equipment that will widen the spectrum of its missions and allow to fully carry out missions in regards to geosciences or environment. The main upgrades will be: - New acoustic equipment integrated into the hull or the keel: multibeam sounders, sub-bottom profilers, single beam transducers used during halieutic campaigns, halieutic multibeam sounder. Renewal of IT equipment and network. - Submarine systems deployment improvement, installation of CTD sounder -referred to as clean sounder- to analyse trace metals in the water column and of an oceanographic crane.

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- Main accommodation refurbishment. The scientific command centre will be refurbished and the meeting room reorganized, the sorting room will be rearranged whereas the working deck laboratories and wheelhouse will be renovated. - Replacement of: the propelling engine control system, the 4 diesels generators, the vessel power management systems, the alarm handling and fire panel systems, as well as the regulated current production. - Miscellaneous works required by In-Service Support for the next twenty years. These works will be implemented in Concarneau during summer 2017. Vincent Faujour, PIRIOU group General Manager declares: ‘We are very satisfied with the renewed confidence of Ifremer for the modernisation of the THALASSA PIRIOU is among the rare French actors able to provide a global offer to shipowners (design, construction, maintenance, repair, refit, ISS and related services). Our international subsidiaries allow us to implement these services in all our yards in Europe, in Vietnam, in Nigeria and soon in Algeria’. ROUTE, PORTS & SERVICES

SEAJACKS SCYLLA and BOLD TERN installing the first Wind Turbine Generators on the Veja Mate Offshore Windfarm as seen from the ISV SIEM MOXIE. Note the tailor made Tripod and Offshore Support Unit on VM59 used for the installation of the Inner Array Cables photo : Superintendent Siem Moxie Comparison of Hong Kong and London Arbitration Whilst London arbitration is the most popular platform for resolution of charterparty disputes, where the parties involved are based in Hong Kong or Mainland China it is quite common for the parties to opt for arbitration in Hong Kong. The purpose of this article to discuss the major procedural differences between arbitrations in London and Hong Kong. It may be helpful to explain at the outset that the procedural law of the seat of the arbitration will apply unless the parties agree otherwise. The substantive law or the law governing the dispute, may be the same as the procedural law or the parties may have agreed that a different law will apply to the

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dispute. Where the seat of arbitration is London, the procedure will be governed by the Arbitration Act 1966 of England and Wales. Where the seat of arbitration is Hong Kong, the procedure will be governed by the Arbitration Ordinance, Cap 609.

Appointment of arbitrators

If the charterparty contains a detailed arbitration clause along the lines of the BIMCO/ LMAA Arbitration Clause, the parties are each to appoint one arbitrator. If the respondent fails to appoint its arbitrator within the 14 day time limit the party who commenced arbitration may appoint its chosen arbitrator as the sole arbitrator. However, in many cases those fixing the charterparty are operators and they may not recognise the significance of having a properly drafted arbitration clause. It is not uncommon for fixture notes to simply provide for “London arbitration, with English law to apply” or “Hong Kong arbitration, with English law to apply”, without stating the number of arbitrators or the mechanism of appointment. We will now look at what the legal position is under English law and Hong Kong law respectively if a party wishes to commence arbitration under an arbitration agreement which does not specify the number of arbitrators and/or how they are appointed.

Where the number of arbitrators is not specified

In a London arbitration, if there is no agreement as to the number of arbitrators, the tribunal will consist of a sole arbitrator pursuant to section 15(3) of the Arbitration Act 1996. There is no equivalent provision in the Arbitration Ordinance. In a Hong Kong arbitration, if the charterparty does not specify the number of arbitrators, the matter is referred to the Hong Kong International Arbitration Centre (“HKIAC”) pursuant to section 23(3) of the Arbitration Ordinance who will determine whether the matter should be referred to one or three arbitrators. The HKIAC will charge a fee for making a decision on the number of arbitrators, currently HKD8,000, which is a little more than USD1,000.

Where the parties fail to agree on whom to appoint as sole arbitrator

Assuming that the number of arbitrators is to be one (whether because of the parties’ agreement or the operation of law referred to in the preceding paragraph), what will happen if the parties are unable to agree who should be appointed as the sole arbitrator, or if one party simply fails to respond to the other’s proposed candidates? Again the position under English law and Hong Kong law is different.

Pursuant to section 15(3) of Arbitration Act where the charterparty does not specify the number of arbitrators, in a London arbitration the Tribunal will consist of a sole arbitrator. However, the claimant may face considerable difficulty if the opponent refuses or fails to agree on the candidate. This is because, an application will need to be made to the English court for the appointment of an arbitrator which will then need to be served on the opponent who may be resident outside the jurisdiction. The requirements for service of documents are far more stringent in court proceedings than in arbitration: service cannot be effected by email, fax or post as in arbitration proceedings; instead the claimant must obtain the leave (permission) of the court to serve the proceedings out of the jurisdiction. Service within the EU will be relatively straightforward, but if service is to be effected in a country which does not use English as its official language (so that translation of all relevant documents may become necessary) and/or which has a complicated service procedure (e.g. where court documents must be served through the local courts), the process may well take months and be costly.

By contrast in Hong Kong, whether the opponents are domiciled in Hong Kong or overseas, the claimant may simply apply to the HKIAC for the appointment of the sole arbitrator, albeit at a fee of HKD8,000. The HKIAC will either appoint the claimant’s chosen arbitrator or one of its own choice. In light of the above, it is a good practice to have a proper arbitration clause so as to avoid the complexities and costs which may arise constituting the Tribunal.

Discrepancy between fixture recap and proforma charter

Gencon 94 is a popular form of voyage charter for bulk cargoes where the parties want to use a relatively simple form of charterparty. Paragraph 19 of Gencon 94 is the law and arbitration clause. It sets out the options of (a) London arbitration English law, (b) New York arbitration and US law, and (c) arbitration at the place specified in Box 25 in Part 1. It goes on to say at sub- paragraph (d) that if box 25, Part 1 is blank, clause 19 (a), which provides for London arbitration, will apply. If the parties do not make any choice of the forum, sub-clause (a) will kick in by default.

The position becomes more complicated however where the parties say in the recap, but not in Box 25, that arbitration is to take place in, say, Hong Kong. One construction is that in such a case the appointment procedure in clause 19(a) will apply by default except that the arbitration will be governed by Hong Kong law. Alternatively, the arbitration clause in the recap and clause 19(a), when read together, provide for Hong Kong to be the geographical location for the hearing subject to the English Arbitration Act. This was the argument raised by Daewoo in the case of Shagang South-Asia (Hong Kong) Trading Co Ltd -v- Daewoo Logistics [2015] 1 Lloyd’s Rep. 504. In this case Shagang applied to the English court to set aside the arbitration award on the ground that the sole arbitrator appointed by Daewoo had no jurisdiction. The court agreed with Shagang that where the recap provides for Hong Kong arbitration, the arbitration clause in the recap will override clause 19 of Gencon, so that Hong Kong law will apply as the procedure law of the arbitration. On the facts the arbitrator had not been properly appointed.

Therefore, if the parties wish to adopt Hong Kong law and arbitration, the proper way to do this is to either put “Hong Kong” in Box 25, Part 1 of Gencon 94, or (if Gencon 94 is incorporated by reference only) copy the entire clause 19(a) into the recap but change

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the forum from “London” to “Hong Kong” and the legislation from “Arbitration Act 1996” to “Arbitration Ordinance, Cap 609”. Alternatively, if the parties want the arbitration to be governed by English procedural law but the hearing to take place in Hong Kong, they should make this very clear in the arbitration clause.

Arbitration Rules

We will briefly discuss the procedural law applicable to the arbitration.

(a) England

The parties may provide for the arbitration procedure in the charterparty. It is common to see time charters specifying that arbitration is to be subject to the LMAA Terms and that if the disputed amount does not exceed a specified sum, the dispute is to be referred to LMAA Small Claims Procedure. Also, if the charterparty does not say which procedure is applicable, the arbitration will be subject to LMAA Terms if the arbitrators accept appointment under the LMAA Terms.

(b) Hong Kong

As for Hong Kong arbitration, there are a number of procedural rules to choose from; the HKIAC Administered Arbitration Rules; the HKIAC Procedures for the Administration of Arbitration under the UNCITRAL Arbitration Rules and the UNCITRAL Arbitration Rules for ad hoc arbitration. If no arbitration rules are agreed, the procedure sets out in the Arbitration Ordinance will apply by default. If the disputed amount is not large, the parties may consider referring the dispute to HKIAC Small Claims and Documents Only Procedure so as to ensure a simplified arbitration and hence save costs.

Appeal

A very important difference between London and Hong Kong arbitrations is in relation to the right to appeal.

Pursuant to section 67 and 68 of the Arbitration Act, a party may challenge the arbitration award on the ground of the tribunal’s lack of substantive jurisdiction or serious irregularity affecting the tribunal, the proceedings or the award. Further section 69 provides for an appeal against an award on a question of law.

In contrast, there are very limited circumstances in which a party to a Hong Kong arbitration may challenge or appeal the tribunal’s award. Section 81 of the Arbitration Ordinance adopts Article 34 of UNCITRAL Model Law on “Application for setting aside as exclusive recourse against arbitral award”. In essence, the grounds for an application to set aside an award are primarily procedural irregularities, e.g. if the applicant was not given proper notice of the appointment of the arbitrator or the proceedings, or if the award deals with a dispute which falls outside the scope of the submission to arbitration etc.. Significantly, unlike London arbitration, a party has no right to appeal against the award on the ground that the tribunal has erred in law in a Hong Kong arbitration. Some may find this disagreeable, and any party who would like to preserve the right to appeal to the court should bear this in mind when he negotiates the arbitration clause. However, the finality of the award is also an attractive feature of Hong Kong arbitration, giving the parties certainty that the award is final and irrevocable. Source: Skuld

AQUILA EXPLORER arriving at Las Palmas, 10/12/16 Photo : Alan Soutar © TT: New Year, new Code

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1 January 2017 marks the start of transitional effect for Amendment 38-16 of the International Maritime Dangerous Goods (IMDG) Code. All amendments prior to Amendment 37-14 are no longer valid. Regulations controlling the transport of dangerous goods follow a two yearly revision cycle taking account, as stated in the source United Nations (UN) Recommendations on the Transport of Dangerous Goods – Model Regulations, of ‘technical progress, the advent of new substances and materials, the exigencies of modern transport systems and, above all, the requirement to ensure the safety of people, property and the environment’. The Model Regulations seek to set out a scheme that allows ‘uniform development of national and international regulations governing the various modes of transport’. Thus, for the maritime mode, the IMDG Code provides authoritative advice on classification, stowage, segregation, packing, labelling, terminology and emergency response action. Amendment 38-16 to the IMDG Code may now be implemented on a voluntary basis and will become mandatory on 1 January 2018. The 2014 version can still be used, but information from different amendments should not be mixed. If the latest version is adopted, it is preferable to dispose of all older versions to avoid confusion. Polymerizing substances Amendment 38-16 contains many important changes, including the insertion of a new category of Class 4.1 dangerous goods ‘Polymerizing substances and mixtures (stabilised)’. The image below shows the result of a ‘runaway’ chemical reaction that occurred in the US in 2007 and left one person dead and 14 others injured, two seriously. Windows were broken up to a third of a mile away. The polymers concerned were acrylic polymers used as paint and coating additives and as such are common substances for transportation. A new definition states ‘Polymerizing substances are substances which, without stabilization, are liable to undergo a strongly exothermic reaction resulting in the formation of larger molecules or resulting in the formation of polymers under conditions normally encountered in transport’. The revised Code states that such polymerizing substances should be classified when their self-accelerating polymerization temperature (SAPT) is 75 degrees C or less under the conditions (with or without chemical stabilization as offered for transport) and in the packaging, IBC or portable tank in which the substance or mixture is to be transported; they exhibit a heat of reaction on more than 300 J/g and they do not meet any other criteria for inclusion in Classes 1 to 8. Furthermore, if the SAPT is 50 degrees or less then they are subject to temperature control. Thus, substances that satisfy these requirements, but have hitherto been classified as Class 9 or unregulated will now need to be classified as Class 4.1 (there are four new UN numbers to accommodate this). Importantly, there is an additional Special Provision, SP386, which has been assigned to certain other classified cargoes (in addition to these new Class 4.1 entries), going into further detail about temperature control and stipulating that the person offering the substance for shipment must ensure that the level of stabilization is sufficient to prevent the substance in the packaging, IBC or tank from dangerous polymerization at a bulk mean temperature of 50 degrees C or 45 degrees for a portable tank. There are related requirements that such cargoes be stowed on deck (stowage category D) and protected from heat. The conditions anticipated during the voyage are important, since exposure to sunlight can significantly raise the ambient temperature in the container. It is thought that such substances have contributed to serious shipboard accidents in recent times and careful planning of the stowage position and ongoing monitoring of the unit are vital. For gases (class 2), flammable liquids (class 3), toxics (class 6.1) and corrosives (class 8) there are new requirements regarding not accepting chemically unstable substances (such as those subject to polymerization) unless precautions have been to taken to prevent such polymerization (or decomposition) under normal transport conditions, further emphasising the potential dangerous consequences if appropriate measures have not been taken. Further information about the changes brought in with the latest amendment can be sourced from the International Maritime Organization (IMO) itself or, providing additional support tools, Exis Technologies. CTU Code linked Finally, the IMDG Code now contains multiple references to the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). The product of a group of experts, including TT Club, ICHCA, GSF and WSC, amongst others, the CTU Code is an important framework providing advice and information to anyone involved in freight transport. If cargo is not packed and secured in an appropriate manner the consequences can be severe, compounding any shortfall in correct classification or handling of dangerous goods. Whilst the CTU Code itself is not mandatory, by referencing it in the IMDG Code, which is mandatory, makes knowledge of the CTU Code’s contents and the application of its precepts vital. The importance of the CTU Code will be re-emphasised at an event hosted by TT Club, WSC, GSF and ICHCA International at the Residence Palace in Brussels on Monday 27 February, entitled ‘Safety in the Intermodal Supply Chain – Promoting the CTU Code’. A series of high profile speakers from legislators and the industry will highlight why this work is critical for anyone involved in the CTU supply chain. Further information can be found on the European Shipping Week site. Source: TT Club

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PLEASE MAINTAIN YOUR MAILBOX, DUE TO NEW POLICY OF THE PROVIDER, YOUR ADDRESS WILL BE “DEACTIVATED” AUTOMATICALLY IF THE MAIL IS BOUNCED BACK TO OUR SERVER If this happens to you please send me a mail at [email protected] to reactivate your address again You can also read the latest newsletter daily online via the link : http://newsletter.maasmondmaritime.com/ShippingNewsPdf/magazine.pdf

Alongside the inner harbour Oslo on an icy cold 8th Jan morning, the 1915 Dutch built, Norwegian flag DREAMTRIGGER. Photo : John McAuslin (c) Click HERE for the LIVE STREAM WEBCAM in Hoek van Holland Berghaven

…. PHOTO OF THE DAY …..

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The MEIN SCHIFF 1 in the Norwegian Geiranger Fjord Photo : Gerard Spee (c)

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