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ISU Annual Review 2013

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ISU Annual Review 2013 International Salvage Union Annual Review 2013 6 4 TF 2 F T 11M 8 L R S 6 W 4 WNA International Salvage Union Annual Review 2013 PRESIDENT’S FOREWORD matters such as revisions to the SCOPIC regime. The production of aggregated industry-wide statistics is important for any trade association and the ISU is pleased to publish in this review our statistics for 2013. They show a vibrant industry but one in which the rewards remain variable over time. Our industry remains competitive and in some places there is excess capacity. Nevertheless I believe that the market will determine the structure of the industry which remains attractive to those operators who get their business model correct. Despite great improvements in As President of the International Salvage ship safety and a reduction in the number of Union, it is a privilege to present the casualties there will always be the potential for 2013 Annual Review. ISU is committed accidents and incidents at sea and ISU members to transparency and our annual review often represent the only resource to make the necessary intervention. will inform our members, associates and affiliates, as well as the wider The prevention of pollution is something of which shipping industry, about our organisation our members can be very proud. It often goes and its work. unnoticed by the general public but the services provided by our members in many cases prevent Marine salvage and the removal of wrecks the release of pollutants into the sea. Our annual have had a high profile during 2013. The world survey of ISU members’ pollution prevention looked on as the Costa Concordia was righted efforts demonstrates this clearly and members off the coast of Italy and elsewhere our members are to be congratulated again that their work carried out many other challenging projects. has salved hundreds of thousands of tonnes of Our importance and success was reflected potentially harmful cargo. in comments by the UK shipping Minister, Stephen Hammond MP, who paid tribute to the There are many current issues that ISU is salvage industry at our Associate Members’ concerned about. Places of Refuge for casualty day conference. He said that he recognised vessels is at the top of the list as we seek, that specialist contractors, not the authorities, with shipowners and insurers, to get coastal provide the bulk of the marine casualty response states to accept their obligations under the capability and most of the technical expertise rules and guidelines that already exist. Unfair in emergency response. He said that the Costa criminalisation and responder immunity are also Concordia showed that the salvage industry is of concern as is the decline in the use of the “innovative and capable of meeting the most Lloyd’s Open Form salvage contract. demanding challenges at sea.” I am proud to be the President of the ISU and look forward to leading it through another year Representing our members’ interests in many in which none of us can predict what will happen different fora is at the heart of the role of the ISU. at sea but in which we can be sure that our We provide a single, unified voice in our dealings members’ services will be required all around the with our customers - shipowners and insurers, world. both property and liability. Our membership - both full members and associates - has grown significantly and it is a tribute to the credibility and value of the ISU. This year we have also strengthened our links with other important marine stakeholders such as the International Maritime Organisation. And Leendert Muller, President we continue to work on the important details of International Salvage Union PRESIDENT’S FOREWORD 3 EXECUTIVE COMMITTEE REPORT ISU ABBREVIATED ACCOUNTS The International Salvage Union (ISU) is a company limited by guarantee (not for International Salvage Union Limited, a company limited by guarantee: profit) incorporated in England. It acts as the trade association for marine salvors Income and Expenditure Account, year ended 31 December 2013 globally and its principal activity has been the provision of services to its marine salvage company members. 2013 2012 The ISU is governed by a President, supported by a vice-President and an Executive Committee made up of senior managers from the member companies and which meets four times a year. There £ £ is an annual meeting to which all full members are invited. Day to day business is conducted by the secretariat consisting of a General Manager, supported by the Communications Adviser and Legal Adviser. The ISU operates from an office in the City of London. TURNOVER 415,458 417,291 Administrative expenses 362,953 368,645 OFFICERS President (to October 2013) President (from October 2013) Andreas Tsavliris, Captain Leendert Muller, OPERATING (DEFICIT) SURPLUS 52,505 48,646 Tsavliris Salvage, Greece Multraship Salvage, The Interest receivable 296 259 Netherlands Vice President (from October 2013) (DEFICIT)/SURPLUS ON ORDINARY ACTIVITIES John Witte Jr., BEFORE TAXATION 52,801 48,905 Donjon Marine, USA Tax on (deficit) surplus on ordinary activities 59 52 EXECUTIVE COMMITTEE (DEFICIT) SURPLUS FOR THE FINANCIAL YEAR 52,742 48,853 Captain Cappy Bisso, Bisso Marine, USA Todd Busch, Titan Salvage, USA Balance brought forward 72,398 23,545 Charo Coll, Boluda Salvage, Spain John Halfweeg, SMIT Salvage, The Netherlands (until September 2013) Balance carried forward 125,140 72,398 Alfred Hubner, Ultratug, Chile Yoshiaki Nishibe, Nippon Salvage, Japan Peter Pietka, Svitzer Salvage Fokko Ringersma, Mammoet Salvage, The Netherlands Joop Timmermans, Tschudi Offshore & Towage, The Netherlands SECRETARIAT General Manager Communications Adviser Legal Adviser Mark Hoddinott James Herbert Rob Wallis International Salvage Union Limited, a company limited by guarantee: Balance Sheet at 31 December 2013 2013 2012 Note £ £ £ £ FIXED ASSETS Tangible assets 2,861 3,590 CURRENT ASSETS Debtors 71,971 38,130 Cash at bank 221,702 212,946 293,673 251,076 CREDITORS: Amounts falling due within one year 40,709 51,583 NET CURRENT ASSETS 252,964 199,493 TOTAL ASSETS LESS CURRENT LIABILITIES 255,825 203,083 RESERVES Other reserves 130,685 130,685 Income and expenditure account 125,140 72,398 MEMBERS’ FUNDS 255,825 203,083 EXECUTIVE COMMITTEE REPORT ABBREVIATED ACCOUNTS 4 5 GENERAL MANAGER’S REPORT LEGAL ADVISER’S REPORT increasing which the statistics do not show. The clauses, a currency correction should also apply main reason for the revenue increase is wreck to SCOPIC payments, which are always made in removal which is no surprise given the ongoing US Dollars irrespective of the currency of the LOF operations on a small number of high profile or contractor. Secondly, the cap on equipment cases. expenses should be removed. The ISU5 guarantee, with regard to the SCOPIC “The Associate Members’ remuneration guarantee, initially provides up to US $3 million, with the usual consideration Day in March attracted a of refraining from arresting the casualty vessel. record number of delegates.” However, where additional SCOPIC security may be required, there is no right of arrest. It has been Mark Hoddinott Rob Wallis Our membership has continued to grow, agreed this anomaly should be rectified with a new ISU5 guarantee wording and a draft is currently 2013 was my first full year as General particularly the Associate Membership, which Lloyd’s Open Form (LOF) remains the increased significantly during 2013, by around being finalised with a small sub-committee and Manager and it was a busy year. We most commonly used salvage contract Lloyd’s. 25%, further strengthening the ISU’s position published our first Strategic Plan for the and its administration continues to be as the sole representative of the international There has been a suggestion to create the role of interest to ISU and other parties. The years 2013-2017. The purpose of the marine salvage industry and demonstrating the of Property Salvage Consultant (PSC) to be the plan is to identify the key issues facing growing interest from the shipping markets in the current panel of LOF arbitrators were equivalent of an SCR, but in non-SCOPIC LOF our industry, prioritise them and form a salvage industry. At the end of 2013 we had 60 full appointed for a five year term which salvage cases. ISU does not support this proposal strategy to tackle them. members, 63 associate members and 12 affiliate ends in November 2014 and a process is which continues to be discussed. underway to select the new panel. We identified “Places of Refuge” as the prominent members. issue. It has been brought into focus with the The Associate Members’ Day in March attracted The publication to Lloyd’s subscribers of awards casualties MSC Flaminia and Stolt Valor and has a record number of delegates with no fewer made in LOF cases has now been in place for a “Places of Refuge been further highlighted by the Maritime Maisie than 178 attendees. We ran with two themes, year. Parties can still make submissions to the casualty which occurred off the Republic of Korea ‘Arctic Operations’ and ‘Container Ship and arbitrator to delay publication where there may be continues to be an issue of in late December 2013. Cargo Hazards’ and welcomed the UK Minister other legal issues pending which are connected to great concern” of Shipping, the Right Honourable Stephen the same matter. We have joined with the International Chamber Hammond MP, who opened the day for us. of Shipping (ICS) and International Union of SCOPIC came into existence in 1999 and may be incorporated into LOF. It is an important clause Separately, amendment has been agreed to the Marine Insurers (IUMI), with whom we hold very The AGM at Hong Kong in October was a for ISU members and this year we have spent LSSA clauses to permit Lloyd’s to accept non-UK similar views on Places of Refuge, and we will be successful event with 68 delegates representing considerable time working on it.
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