PUBLISHED AUG 6, 2021 11:52 AM BY THE MARITIME EXECUTIVE

The bankruptcy judge hearing the case of Bouchard Transportation approved the sale of the company’s tugs and barges during a hearing on August 5. Under the proposed final sale, the assets of the company would be split between two financial firms that provided financing during the bankruptcy, although the company is holding out hope for a last-minute alternate proposal that would permit it to retain some assets.

Judge David Jones at the U.S. Bankruptcy Court in Texas expressed satisfaction with the sale process, although there have been concerns raised by the company’s debtors and members of the Bouchard family. Earlier in the process, they questioned if that the asset sale would raise sufficient funds to provide a meaningful recovery for the approximately $230 million owed the company’s debtors. In addition, the debtors are objecting to fees due to Hartree Partners, an unsuccessful first bidder designated by the company. The judge said in yesterday’s hearing that he would consider the issue of the fees at a later date.

Under the sale approved by the court, 17 of the company’s tugs and 12 barges would be sold to JMB Capital Partners. JMB offered a total of $115.3 million of which $20.8 million would be cash with the remainder being a credit against the debtor in possession financing JMB provided to Bouchard at the beginning of the bankruptcy process. In April, JMB supplied financing and it has a lien against the vessels it would acquire which were listed as collateral in the financing.

Separately, a financial group led by Wells Fargo was approved to acquire eight tugs and 10 barges. Wells Fargo through Rose Cay submitted a bid of $130 million, but $100 million is a credit against debts due to the bank on the assets with only $30 million being in cash.

Financial advisers for the bankruptcy told the court that these were the best of the seven bidders who had submitted a total of nine written indications of interest for Bouchard’s assets. Six of the bids were for specific assets while three had bid for nearly all the assets. However, none of the bidders proposed to become a chapter 11 sponsor, which would have acquired the entire company and its assets in a single transaction.

The question of the valuation of the Bouchard assets has been raised a number of times. Legal trade Law 360 quotes the financial adviser Richard Morgner as saying the sale was “challenging,” in part because the fleet had not been operating in a meaningful way. He told the court that capital will be required to return the vessels to full operating condition.

Bouchard’s lawyers also told the court that discussions were continuing with a possible alternate bidder and the court granted the companies until the afternoon of Monday, August 9 to complete the new proposal. Bouchard is working with another distressed asset creditor, 507 Summit, on a proposal where the firm would become an equity investor permitting Bouchard to retain some assets. Wells Fargo would have to agree to receive new notes for its debt and the proposal reportedly would offer creditor notes valued at 50 cents on the dollar for their claims. If this deal can be reached, the tugs and barges to be sold to the Wells Fargo group would be retained by Bouchard.

The company filed for reorganizational bankruptcy in September 2020 to prevent foreclosure on its vessels in Florida, Louisiana, New York, and Texas. At the time, they cited a loss of business after a barge accident that killed two crew members in 2017 and the impact of the pandemic in 2020.

After Monday’s deadline for alternate proposals, the court has scheduled a confirmation hearing for August 18 to conclude the sale of the tugs and barges.

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/bankruptcy-court-approves-sale-of-bouchard-s-tugs-and-barges

PUBLISHED AUG 6, 2021 7:24 PM BY THE MARITIME EXECUTIVE

In its latest report, seafarer charity Stella Maris echoed growing concerns about crew mistreatment, including abandonment, unpaid wages and forced labor.

In 2020, abandonment cases soared to a record high. More than twice as many seafarers were abandoned in 2020 compared to 2019, and data from the IMO shows that there were 76 cases involving over 1,000 seafarers, mostly in the Middle East and Asia. By omparison, Stella Maris said, there were 40 cases of abandonment involving 474 seafarers in 2019.

The charity intervened in two abandonment cases in the port of Ravenna, both illustrating two challenges of the pandemic: ship arrests for unpaid bills, and COVID-19 travel restrictions that keep crew onboard.

The cases involved the chemical tanker Gobustan and the general cargo vessel Sultan Bey. Both ships were detained in July 2020 to satisfy charges of outstanding debt. This left 24 crewmembers stranded, because the authorities would not allow seafarers to disembark due to COVID-19 restrictions.

Stella Maris provided them with food, fresh water and other supplies, and it supported them with plans for repatriation. This task required the charity’s team to work through problems like airport closures and flight cancellations, plus sourcing COVID-19 tests for the crew. The men eventually few home in October.

In another case, its chaplain in South Africa supported six seafarers on a detained fishing vessel throughout the course of the year, beginning in December 2019. The charity provided them with food, medication and warm clothing, and it advocated for their release. It took a full year to achieve, but the men were eventually repatriated to Myanmar and Taiwan.

Non-payment of wages was the largest single problem Stella Maris helped seafarers overcome last year (along with death at sea). Like the ITF’s regional coordinators, Stella Maris’ chaplains have intervened on crewmembers’ behalf to petition the vessel operator for proper and full wage payments.

It also had to contend with the impact of COVID-19, including quarantine requirements. It provided 120 seafarers with a total of 150 days of lockdown accommodations in its center in Manila, including regular meals and arrangements for family contact. “We pray always that God will give us support in this difficult situation, and I’m so very thankful to Stella Maris for providing us with food, a place to stay and a small amount of money,” said one second engineer who stayed in the Stella Maris center during the lockdown. Altogether, nearly 1,300 seafarers received food and toiletries from Stella Maris during the first lockdown in the Philippines.

The charity’s chaplains adapted to social distancing and quarantine measures by meeting seafarers at the gangway, not on board; providing live-streamed mass for those who could not attend church; and phone cards carefully and safely delivered. These kinds of opportunities to connect with the outside world face-to-face are essential in a time of lockdown, according to Stella Maris: fully 100 percent of the seafarers it surveyed said that they had suffered from psychological stress over the course of the year.

“Our latest Life at Sea Report observes that, in a maritime world of increased digitalization and automation, smaller crews and faster port turnaround times, the need for basic human contact remains paramount,” said Stella Maris CEO Martin Foley. “In the face of the world’s collective failure to provide timely repatriation for seafarers, and the continued absence of a global vaccination or keyworker policy for seafarers, hundreds of thousands of seafarers remain in need of many kinds of support.”

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/stella-maris-highlights-crew-welfare-challenges-of-the-pandemic-era

PUBLISHED AUG 6, 2021 2:16 PM BY THE MARITIME EXECUTIVE

Container shipping line Mediterranean Shipping Company (MSC) fired back responding to charges of collusion and failing to honor freight contacts filled against it and COSCO Shipping Lines with the Federal Maritime Commission. In a letter to customers released to the media, MSC rejected the allegations made by a Pennsylvania furniture company.

“MSC is shocked to learn of the accusations,” the letter starts by saying. While acknowledging that it is still studying the complaint, MSC denies the broad accusations and the media coverage, saying the issues “remain vague and unsubstantiated and are incorrectly targeted at MSC.”

The Federal Maritime Commission officially served the suit against MSC and COSCO on August 3, posting the full complaint for public review. In the filing with the FMC, a furniture company named MCS Industries alleges that the shipping companies have been taking advantage of the 2021 recovery in container shipping unfairly treating small shippers such as itself. Among the allegations are that the shipping companies “unjustly and unreasonably exploited customers, vastly increasing their profitability at the expense of shippers and the U.S. public generally.”

The 15-page complaint details actions starting with the blanking of sailings early in the pandemic and even when they restored capacity, the furniture company says the carriers have “refused to provide more than a fraction of the cargo capacity that MCS requested and needs.” The company says it has been financially harmed by having to buy space in the spot market. Between May and July 2021, MCS says that the carriers have provided “only small fractions of the space required under the Service Contracts—specifically, just over one-third (approximately 35 percent) by MSC and an infinitesimal 1.6 percent by COSCO.”

They go on to accuse the entire shipping industry of being in collusion to drive up pricing. The complaint points out that the alliances formed by the major carriers “collectively control over 90 percent of all transpacific trade.” MCS says it has incurred in excess of $600,000 in damages so far due to the carriers’ business practices.

MSC told customers that it does not recognize the alleged shortcomings in booking the cargo allocations. “MSC is not illegitimately selling space allotted to MCS Industries.”

The letter goes on to reject the accusations of collusion pointing out that MSC and COSCO are in separate alliances. They said that they have no shipping agreements with COSCO.

MSC said it is “refuting baseless claims and providing accurate sets of facts.” They said they would review the allegations as possible defamation, while also noting that it had not received a formal complaint from MCS before its FMC filing.

The case is likely to be closely followed as many shippers continue to complain about the lack of space and freight rates which continue to set new records. Most experts believe that the current market conditions are likely to prevail through the remainder of 2021.

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/msc-fires-back-denying-accusations-of-collusion-and-space-allocation

PUBLISHED AUG 6, 2021 12:58 PM BY THE MARITIME EXECUTIVE

Additional details are coming out regarding this week’s assault on a tanker in the Gulf of Oman as the global community continues to react to the threat to shipping in the region coming from Iran or operatives loyal to Iran. The United Nations Security Council will discuss the growing threat to security, while the foreign ministers of the G7 nations issued a statement condemning Iranian threats to shipping.

The two vessels that came under attack recently both remain in the Persian Gulf region while investigations are ongoing. The 9,748 dwt bitumen tanker Asphalt Princess is still in the Gulf of Oman after the boarders were scarred away and left the vessel overnight on August 4. The vessel’s AIS shows that it is due to sail to Karachi, Pakistan, but it so far has not departed. Separately, the 49,990 dwt tanker Mercer Street was moved to the anchorage off Fujairah in the UAE after it was struck by a drone attack. Reports indicate that the vessel’s UK-based operator plans to repatriate the crew from the UAE.

The new information on the boarding of the Asphalt Princess provides additional details on what was going on aboard the vessel and the possible reasons for the mysterious circumstances. The Times of London is quoting sources that said the crew of the tanker disabled the vessel’s engine when they were boarded. After the vessel was ordered to sail to Iran, the crew reportedly stopped the propulsion so that the vessel was left drifting in the Gulf of Oman.

The report says that six heavily armed individuals boarded the tanker. In an audio recording of a call from the tanker to the authorities in the UAE, a crew member is heard saying that armed Iranians are aboard his vessel. When asked what their demand are he said they can not understand the Iranians and suggested that the UAE officials speak directly to the boarders.

The Times of London report says that the boarders remained aboard the tanker after it was disabled. They ultimately were scarred off leaving the vessel after warships from the Royal Navy of Oman and the United States approached the tanker. In an official statement, Oman reported that its air force was overflying the vessel and that it had sent several warships to investigate.

Speaking after the attack on the Mercer Street that killed the vessel’s captain and a security guard, UK Foreign Secretary Dominic Raab said, “Iran must end such attacks, and vessels must be allowed to navigate freely in accordance with international law. The UK is working with our international partners on a concerted response to this unacceptable attack.”

Israel’s Ambassador to the UN, Gilad Erdan, has demanded that the Security Council take up the issue of the attacks and “condemn Iran over the drone attack on the Mercer Street.” The UK, Romania (the home of the captain of the Mercer Street), and Liberia (flag state for the tanker) have also called on the UN to take up the issue of the attacks.

In a joint statement, the foreign ministers of the G7, including the UK, France, Germany, Italy, Japan, Canada, the United States, and representatives of the EU today pledged “do our utmost to protect all shipping,” saying that vessels must be able to operate freely and without being threatened by irresponsible and violent acts.

“Iran’s behavior, alongside its support to proxy forces and non-state armed actors, threatens international peace and security. We call on Iran to stop all activities inconsistent with relevant UN Security Council resolutions,” the minister said in their statement.

For its part, Iran using its state media continues to deny involvement in the two recent attacks. “Iranian Armed Forces Spokesman Brigadier General Abolfazl Shekarchi blasted the recent contradictory reports of maritime incidents and hijacking in the Sea of Oman as Western ‘psychological warfare’ meant to set the ground for new adventurism,” Iran reported through its Fars News Agency.

The UN Security Council will meet on the matter as part of its session scheduled for today, August 6.

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/asphalt-princess-crew-reportedly-disabled-vessel-to-stop-boarders

PUBLISHED AUG 6, 2021 3:26 PM BY THE MARITIME EXECUTIVE

Faced with higher operating costs and stricter demands for efficiency and environmental performance, the shipping industry is constantly looking for improved designs. The goal is to improve operations while also maximizing every usable space for cargo.

In the competition for improved efficiency, Japan’s Tsuneishi Shipbuilding unveiled a new design for its Ultramax dry bulk carriers that it says has the largest capacity for a ship that also meets the Panamax breadth. The news TESS66 Aeroline design the shipbuilder says also incorporates design enhancements for operational efficiency and crew comfort while also meeting emerging environmental requirements.

Spurred by an increase in cargo volume, ships in the shipping industry are increasing in size in pursuit of transportation efficiency per voyage, says Tsuneishi.  Its new bulk carrier design is an evolution of a design first introduced in 1984. To date, they note that they have built over 500 vessels in the TESS (Tsuneishi Economical Standard Ship) series.

The latest design achieves 66,200 DWT, making it the largest in the class of Ultramax bulk carriers permitting it to maximize transportation efficiency. Designed with the flexibility to transport major bulk categories, including iron ore, grains, and coal, the TESS66 has a cargo capacity of 81,500 m3.

“We hope this ship model will be a long-lasting favorite for its loading performance, fuel efficiency, environmental performances, and versatility that provide high added value to customers,” commented Kazutaka Seki, Manager of Ship Planning Dept., Design Div. of Tsuneishi Shipbuilding. “We will continue to create globally-advanced products and provide ships that combine transportation efficiency with a reduced environmental burden.”

The design concept is for a 36,900 gross ton vessel. It will measure 656 feet in length with a breadth of 105 feet to permit it to trans the Panama Canal. The maximum depth will be 63 feet and with a suppressed air draft, the shipyard says the dimensions will create operational flexibility.

Other elements of the design include a distinctive bow shape which was part of an effort to maximize the efficiency of the hull. The yard’s proprietary technology was also used to reduce wind resistance by as much as 20 percent. The shape of the accommodations block was molded to reduce wind resistance. The ship’s hull has also been refined for excellent fuel efficiency under all conditions, from shallow to full load draft.

The features for operating efficiency also ensure that the vessel meets the Energy Efficiency Design Index the International Maritime Organization presented to ensures that new ships are designed and built to comply with CO2 reduction. The vessel is also designed to be equipped with environmental technology to reduce emissions and guard against marine pollution such as oil spills.

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/new-tsuneish-design-claims-largest-cargo-capacity-for-an-ultramax

PUBLISHED AUG 6, 2021 3:31 PM BY THE MARITIME EXECUTIVE

Eastern Shipbuilding Group has completed the first of three new Ollis-class ferries for New York City’s Staten Island Ferry service. The SSG Michael H. Ollis has departed ESG’s Port St. Joe Facility fully certified and passenger ready.

A tug from Dann Ocean Towing will tow the ferry from Port St. Joe to New York City. The trip will take about 12 days, and upon arrival in New York, the ferry will be staged at Caddell Dry Dock for cleaning and another round of trials and training. She is scheduled to begin transporting passengers in the fall.

The Ollis-class ferries are named after fallen soldier of the U.S. Army 10th Mountain Division at Fort Drum, Army Staff Sgt. Michael H. Ollis. Ollis, a Staten Island native, was killed shielding his fellow soldiers from a suicide bomber in Afghanistan on August 28, 2013.

“We are proud to deliver Staten Island Ferry SSG Michael H. Ollis to New York City fully certified and passenger-ready. It is the first vessel of the modernized fleet and boasts the most advanced technology and environmental engineering in the maritime industry,” said Joey D’Isernia, ESG’s president. “It’s been an honor for Eastern to build this class named after one of our fallen heroes and deliver state of the art vessels for the world’s busiest passenger-ferry route.”

ESG is providing production engineering, construction, and delivery of the three new EBDG-designed ferries, with the work primarily carried out at ESG’s Allanton yard. The new outfitting facility in Port St. Joe is carrying out completion work after launch, along with testing and trials.

According to ESG, the new ferries are larger, incorporate modern technology and will operate more safely in extreme weather. For the first time, they will provide the Staten Island Ferry serivce with an oval upper-deck promenade, which will serve as an outdoor “walking track” for ferry riders.

In addition, there are design features on the vessels that reflect the city’s emergency response plan. Lessons from 9/11 were built into this fleet, and they can be connected to the New York fire vessels – also built by Eastern Shipbuilding Group – to support evacuations and rescue.

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/esg-delivers-first-ollis-class-ferry-for-staten-island-ferries

It is the environmental, organizational and job factors, and human and individual characteristics, which influence behavior at work in a way which can affect health and safety.

SOURCE READ THE FULL ARTICLE

https://safety4sea.com/understanding-human-factors-behavioral-based-safety-bbs-and-sol-xs-holistic-approach/