VRP Archives - Page 3 of 6

A merchant vessel was towed to safety after losing power in heavy seas off the coast of Somalia.

On July 19, the EU’s counter-piracy forces EU NAVFOR ATALANTA received a request for assistance from the Somali Ministry for Foreign Affairs and International Cooperation after the Tanzania-registered merchant ship Anatolian suffered a complete propulsion and power plant failure, and was without food or fresh water. At the same time, ATALANTA assets were granted permission to enter Somali territorial waters.

For about a week, the Anatolian was dead in water in heavy seas in the Gulf of Aden, north of Puntland coast. Earlier, a commercial tugboat refused to assist due to adverse weather conditions and the heavy sea state. Attempts by the crew and a navy ship to repair the engine and electricity system failed and in the meantime, ATALANTA unit ESPS Numancia and another international naval unit provided food and drinking water to the Anatolian crew.

On July 21, once sea conditions improved, the Spanish frigate Numancia started to tow the stricken ro-ro-ship to the Somali port of Bosasso, maintaining permanent communication with the Federal and local Somali authorities.

The Numancia and Anatolian arrived to Bosasso on the morning of July 22, and the ATALANTA ship made a smooth transfer of responsibilities to the local port authorities.

Source: https://www.marinelink.com/news/merchant-vessel-loses-power-somali-waters-498293

The new infrastructure at the Southeast Asian will be able to operate container ships of 7,500 teu with an increased handling speed and a productivity, and ambitions to become a regional transhipment hub, connecting Timor’s economy with the region.

The Bolloré Group won the 30-year concession to build and operate the future deep-sea port of Dili, as a public-private partnership, the first in East Timor. It selected China Harbor Engineering Company (CHEC) for the construction of the port of Tibar west of Dili, capital of East Timor.

A recent mission from the Association of Southeast Asian Nations (Asean) headed by its Secretary, and some thirty members of this organisation, visited the future port of Timor Leste located in the Tibar Bay, as Timor Leste has applied for ratification to the Asean, the institution that politically and economically unites about ten Southeast Asian states.

“Asean membership of Timor Leste would be extremely beneficial for all Timorese. The port that will be officially commissioned before the end of this year is an asset to achieve this goal” said Raphaël Ribero, chairman of Timor Port

“This new port with its international standards and new handling equipment of the latest generation, will enable the country to attract new businesses, participate in the diversification of the country’s economy and join the ranks of the great modern ports of the region. Because of its draught and its facilities, the Asean countries will be able to benefit from high quality services, particularly about the Oil & Gas business ” said Laurent Palayer, CEO of Timor Port.

Recently Timor Port, a subsidiary of Bolloré Ports, has received new handling equipment to boost its container terminal capacity. The order included two tugs, two Ship-to-shore (STS) gantries, and four rubber-tyred gantry (RTG) cranes as part of the Tibar Bay deep seaport concession.

The new machines are equipped with a control system, and a new-generation power supply system that reduces CO2 emissions and energy consumption. The new equipment is part of the Green Terminal certification process designed to reduce the carbon footprint of operations.

The Ocean Voyages Institute has completed its latest transit of the Great Pacific Garbage Patch, collecting 96 tonnes of plastic fishing nets, lines, buoys, trash and other waste from one of the world’s largest concentrations of ocean plastic.

“Keeping our ocean healthy is vital to ocean life and our own health. Our clean up missions give me great hope for the future of our ocean because change is possible.” said Mary T. Crowley, the president and founder of the nonprofit.

Ocean Voyages Institute uses the Kwai, a 130-foot sail freighter, to carry out cleanup missions in the North Pacific. The 2022 mission brings the group’s total to over 692,000 pounds of plastic removed from the ocean since 2009, including 340,000 pounds recovered in 2020 alone.

All images courtesy of Ocean Voyages Institute

“Many of my crew are from the Pacific Islands, and we all do this good work for our children, so they will benefit from healthy oceans,” said Captain Locky MacLean. “Marine areas cover more than two thirds of our planet and are the main component of our life support system here on Earth, absorbing carbon and generating the very air we breathe, they cannot continue to be taken for granted.”

The effort involves contributions from many nations. Kwai is owned by the government of the Marshall Islands; the crew hails from Republic of the Marshall Islands, USA, Kiribati, Fiji, Canada, South Africa, UK and Germany; and the mission collaborates with researchers from the University of Hawaii.

The organization’s ultimate goal is to remove one million pounds of debris from the North Pacific Gyre. It is designing two more purpose-built sailing cargo vessels for this long-term mission, and hopes to raise funds for their construction.

Source: https://www.maritime-executive.com/article/sailing-vessel-kwai-cleans-up-96-tonnes-of-trash-from-the-pacific

The BIMCO Emission Trading Scheme Allowances Clause has been published with the aim of allowing owners and charterers to allocate responsibility for vessels complying with, inter alia, the EU’s emissions trading scheme (ETS). The application of the EU ETS to shipping is still under discussion but expected to take effect from either 1 January 2023 or 2024.

Further to our update of 31 May 2022, BIMCO’s Emission Trading Scheme Allowances Clause for Time Charter Parties 2022 has been published (the ETSA Clause). It is set out in full below and is available from BIMCO’s website along with its guidance notes.

The ETSA Clause has been drafted with the EU’s ETS specifically in mind, as it will likely be the first scheme that will apply to shipping. The clause will also be applicable to other schemes that take effect. There are several such schemes under development, for example, in China, Japan and the UK.

In this article, we build on our previous general commentary, outline the scope of the ETSA Clause and mention briefly some practical considerations for owners and charterers.

Scope

The ETSA Clause governs parties’ rights and obligations in relation to any applicable “Emission Scheme”, which is defined as a “greenhouse gas emissions trading scheme … imposed by applicable lawful authorities that regulate the issuance, allocation, trading or surrendering of Emission Allowances.”

The broad scope of the clause ought to ensure that it remains relevant as more schemes are implemented to target carbon emissions, but also any other greenhouses gases.

Rights and obligations

The application of an ETS to shipping will vary, and there are many different ways in which the compliance obligations could be imposed. Variables include – who is to report emissions to the ETS authority, how the reported data is to be verified, and who is responsible for purchasing and surrendering allowances. As an example, under some schemes a vessel manager may be responsible for measuring and reporting, in others it may be owners, and in another it may be the party making commercial decisions about the vessel’s employment, which, depending on definitions, could be owners, a pool manager, or the Charterer.

As there is no one solution to these questions, and the ETSA Clause is intended to be capable of broad application, it contains no general provision stating how the parties ought to comply with their individual obligations. Thus, it is likely that each party will have to comply with the regulations as imposed on them. Some parties may wish to include appropriate wording and expressly address circumstances where all or some of a party’s compliance may be outsourced to third parties.

Cooperation

Sub-clause (a) obliges the owner and charterer to “co-operate and exchange all relevant data and information in a timely manner to facilitate compliance with any applicable Emission Scheme and enable the Parties to calculate the amount of Emission Allowances in respect of the Vessel…”. The aim here is to ensure that no matter how an ETS is applied, one or the other party can comply.

Although “soft” types of obligations, such as a duty to “co-operate”, and “in a timely manner”, do not always help dispute resolution, their flexibility is necessary given the broad scope of the clause. As emissions trading schemes and reporting systems mature, and where perhaps a vessel is agreed to be traded only within certain known ETS areas, the parties may wish to include more specific annexes defining precise documentation and timeframes that may be required within those trading areas.

Source: GARD

Monitor and report emissions

Sub-clause (b) obliges owners to monitor and report the relevant data to an “independent verifier”. This assumes there will be an obligation on Owners to do this, which, as suggested by the BIMCO guidance notes, is likely influenced by the EU and the UK models. However, it may not be, in fact, applicable to all emissions trading schemes around the world. The parties may wish to consider revising the wording to a more general obligation to monitor and report the relevant data “as required by, and in accordance with, the applicable Emission Scheme.” with, potentially, a right to appoint jointly a neutral party to verify the data and/or the calculations.

Allowances

As BIMCO’s guidance notes explain, sub-clause (c) is the main provision concerning accounting for the emission allowances between the parties. There is an obligation on charterers to “provide and pay for the Emission Allowances…”. This is to be done by charterers making the transfer within 7 days of owners notifying charterers of the quantity of emission allowances for the previous month. The parties will therefore have to maintain their own separate accounts for the allowances. As expected, charterers are entitled to set-off in respect of any off-hire periods which, in the case of disputed off-hire periods, adds to owners’ overall credit risk.

Suspension for breaches

If Charterers fail to transfer “any of the Emission Allowances…” [emphasis added – noting lack of any express de minimis] as required by the clause, sub-clause (d) gives owners “the right to suspend the performance of any or all of their obligations…until such time as the Emission Allowances are received in full by the Owners…”. A safety mechanism against a wrongful suspension of service appears to be built into the 5 days’ notice that needs to be served on charterers prior to suspending. Nonetheless, in practice, suspending service of a vessel comes with risks – including potential claims under bills of lading and further exposure by owners to credit risk.

Some owners may wish to explore additional wordings where the emission allowances are to be put into an escrow account by charterers in advance based on reasonable pre-estimates or the quantity of Charterers’ bunkers on board. The escrow account could also be used to hold the emission allowances in the event of disputed off-hire periods, pending settlement, a judgment, or an arbitration award.

Conflicting provisions

Starting with the words “[n]otwithstanding any other provision in this Charter Party…”, the clause is designed to take priority over any other conflicting provisions.

In recent months, we have seen amendments being made to standard form charters and inclusion of references to reimbursement of charges, costs and/or fees that owners may incur in relation to compliance with environmental regulations as a result of charterers’ instructions. We can understand the aim of such clauses, particularly when charterparties were being agreed at a time with no standard published clauses to cover environmental costs. When using an ETS allowance clause, parties should ensure that the intended priority of any negotiated terms is made clear to avoid arguments over conflicting provisions.

ETS – EMISSION TRADING SCHEME ALLOWANCES CLAUSE FOR TIME CHARTER PARTIES 2022

Notwithstanding any other provision in this Charter Party, the Owners and the Charterers (the “Parties” and each individually a “Party”) agree as follows:

“Emission Allowances” means an allowance, credit, quota, permit or equivalent, representing a right of a vessel to emit a specified quantity of greenhouse gas emissions recognised by the Emission Scheme.

“Emission Scheme” means a greenhouse gas emissions trading scheme which for the purposes of this Clause shall include the European Union Emissions Trading System and any other similar systems imposed by applicable lawful authorities that regulate the issuance, allocation, trading or surrendering of Emission Allowances.

(a) The Owners and the Charterers shall co-operate and exchange all relevant data and information in a timely manner to facilitate compliance with any applicable Emission Scheme and enable the Parties to calculate the amount of Emission Allowances in respect of the Vessel that must be surrendered to the authorities of the applicable Emission Scheme for the period of the Charter Party.

(b) The Owners shall monitor and report the relevant greenhouse gas emissions of the Vessel for verification by an independent verifier in accordance with the applicable Emission Scheme.

(c) (i) Throughout the Charter Party period the Charterers shall provide and pay for the Emission Allowances corresponding to the Vessel’s emissions under the scope of the applicable Emission Scheme:

(1) Within the first seven (7) days of each month, the Owners shall notify the Charterers in writing of the quantity of Emission Allowances for the previous month; and

(2) No later than fourteen (14) days prior to the expected date of redelivery the Owners shall notify the Charterers in writing of the estimated quantity of Emission Allowances for the final month or part thereof.

(ii) The Owners’ notifications in subclause (c)(i) shall include the relevant calculations and the data used to establish the quantities.

(iii) Within seven (7) days of notification under subclause (c)(i), the quantity of Emission Allowances notified by the Owners above shall be transferred by the Charterers and received into the Owners’ nominated Emission Scheme account. If the estimated quantity of Emission Allowances for the final month or part thereof is higher or lower than the actual quantity calculated by the Owners as at the time and date of redelivery, any difference in Emission Allowances shall be transferred by the Charterers or returned by the Owners, as the case may be, and received into the nominated account of the receiving Party within seven (7) days of written notification from that Party.

(iv) During any period of off-hire, the Charterers shall have the right to offset against any Emission Allowances due or require the Owners to return a quantity of Emission Allowances equivalent to the emissions that the Charterers would otherwise have been responsible for, had the Vessel remained on hire.

(d) If the Charterers fail to transfer any of the Emission Allowances in accordance with subclause (c), the Owners shall, by giving the Charterers’ five (5) days’ notice, have the right to suspend the performance of any or all of their obligations under this Charter Party until such time as the Emission Allowances are received in full by the Owners. Throughout any period of suspended performance under this subclause, the Vessel shall remain on hire and the Owners shall have no responsibility whatsoever for any consequences arising out of the valid exercise of this right. The Owners’ right to suspend performance under this Clause shall be without prejudice to any other rights or claims they may have against the Charterers under this Charter Party.
Source: GARD

Mis-declared dangerous cargoes are a serious problem for container shipping resulting vessels fires that have caused both total constructive losses, and loss of life and injury to crew. Last year saw the X-Press Pearl sink following a cargo fire, while the fire on the Maersk Honam in 2018 resulted in five seafarers losing their lives.

Shipping lines are increasingly turning to software solutions to try and stop mis-declared dangerous cargoes being loaded on the vessel in the first place.

New York based cargo inspection company NCB Group said that PIL was the fourth company sign-up to its Hazcheck Detect tool.

Hazcheck Detect screens cargo booking details for keywords and includes an industry library to enable suspicious bookings to be identified that may be mis-declared or undeclared dangerous goods.

PIL says that it has seen results in just a few weeks in terms of stopping the loading of mis-declared cargoes. “In just a few weeks of using the tool, we have been able to prevent over 100 containers from being loaded onto our ships that should have been subject to IMDG Code checks,” said Bojarajoo Subramaniam, Assistant General Manager, Operations and Procurement, PIL.

Ian J Lennard , NCB President commented: “Our software division, Exis Technologies has over 35 years of dangerous goods knowledge and experience of high volume IT applications for large container lines.

“As more lines begin using the tool, we can make further improvements like adding additional rules to the tool’s industry rules library from which all container lines can benefit.”

Source: https://www.seatrade-maritime.com/ship-operations/pil-adopts-hazcheck-detect-combat-mis-declared-cargoes

Hong Kong-based OOCL is switching to electronic Bills of Lading (eB/L) to enhance efficiency of the global supply chain and cut shipments’ carbon footprint
eB/L provides a digital channel for all users to access real-time status of the shipping process. eB/L also guarantees security, accuracy, and authenticity of data
The solution also enables various parties such as shippers, cargo owners, and banks to manage the eB/L and perform title transfers, surrenders for delivery, etc.

Orient Overseas Container Line said on July 19 that it is switching to electronic Bills of Lading (eB/L) to enhance the efficiency of the global supply chain, reduce the carbon footprint of each shipment, and give customers the ultimate shipping experience.

Headquartered in Hong Kong, OOCL is one of the world’s largest integrated international container transportation and logistics companies, with over 125 offices in more than 100 major cities.

OOCL’s eB/L solution is powered by digital solutions provider IQAX Limited and built on Global Shipping Business Network (GSBN)’s blockchain platform.

By leveraging this technology, eB/L provides a digital channel for all involved parties to access the real-time status of the shipping process. eB/L also guarantees the security, accuracy, and authenticity of data, as well as ensures that data on the blockchain network is traceable and from a single source.

The eB/L solution not only offers issuance of online Bills of Lading, but also enables different parties such as shippers, cargo owners, forwarders and banks to manage the eBL and to perform title transfers, surrenders for delivery, status updates and history reviews.

“The adoption of eBL brings a revolutionary change in business operations. Bills of Lading are at the heart of global trade, and an essential part of the shipment process, but they are also in an excellent position to benefit from exactly this kind of technological advance,” OOCL said.

“Moving from a process of physical posting and collection of paper documents into the new eB/L era will increase security and accuracy, reduce supply chain uncertainties and delays, and control costs.”

As a core part of OOCL’s environmental, social and governance (ESG) goals, tackling the challenges of climate change and assuring sustainability are a clear priority, the company said.

Switching to a paperless solution enables OOCL to help its customers eliminate waste generation and the consumption of forest resources, and to minimize their carbon footprint by avoiding the need to print and post paper documentation. The adoption of eB/L marks another milestone in the sustainability journey of the company and the industry.

“OOCL has always been a pioneer in deploying the latest technology to drive a real, tangible improvement in operations,” said Kenny Ye, chief operating officer of OOCL.

“Switching to eB/L not only allows us to deliver an enhanced shipping experience to our worldwide customers, but also helps OOCL and our customers achieve multiple goals in terms of reducing costs, enhancing operational efficiency, and reducing the environmental impact of our activities.”

Ye said the launch of OOCL’s eB/L show “our commitment to the environment and to providing high quality services. It will continue to be part of our mission to develop and implement further technological advances to assist our customers achieve the optimal shipping solution.”

OOCL’s eB/L is offered to global customers and is recognized by the International Group of P&I Clubs. Registered customers can access the eB/L by logging in IQAX eB/L’s portal.

Source: https://www.portcalls.com/oocl-switching-to-electronic-b-l/

On Wednesday, Kerala High Court’s Justice, Sathish Ninan, ordered to release of the Russian ship after it was informed that the ongoing dispute between the parties had settled. The MV MAIA-1 was ordered to be detained by the high court on 18 July after an Estonian shore service firm named the Bunker Partner OU filed an admiralty suit, seeking a decree for USD 23,503.14 with interest at 0.1% per day for the value of bunkers that the Estonian firm supplied to the ship.

While ordering the detention of MV MAIA-1 on Monday, the court had said that the ship needs to either deposit USD 23,503.14, equivalent to almost Rs 18, 68,499.63, owing to the plaintiff or furnish security for the said amount to the court’s satisfaction. The Estonian firm was also directed to furnish a counter-guarantee of Rs 5,00,000 within two weeks.

Russian Cargo Ship — Image for representation purpose only

On 19 July, Tuesday, Russia’s embassy took up the issue with the Ministry of External Affairs (MEA) and demanded an “explanation” of the circumstances. The Russian embassy had also said that military cargo for Indian armed forces was delivered using that vessel.

References: The Times Of India, The Wire, News 18

US Watercraft, the commercial boatbuilding division of Waterline Systems, said it is building a new oyster farm support vessel for Matheson Oyster Co., a sustainable oyster farm located in Virginia.

Matheson Oyster came to the Hubert, N.C. boatbuilder with a specific request: build a low-freeboard vessel that can hold position safely and travel quickly in the choppy waters of Chesapeake Bay.

US Watercraft’s 26-foot aquaculture support vessel design is the result of a series of conversations with the Matheson Oyster crew, where the builder learned about Matheson’s innovative farming methods. Matheson oysters are grown in baskets on an adjustable longline system in the Chesapeake Bay, in waters up to five feet deep. The 50-pound baskets are currently retrieved and loaded onto a support vessel by a crew member in the water. This requires the crew to lift the baskets over the boat’s gunnels and lower them into the cockpit. The new USW boat is equipped with a powerful electric davit, flush deck, and 12-inch freeboard that will allow the crew to winch up the baskets and slide them on deck quickly, safely, and efficiently. The deck is also equipped with a series of removable guard rails that store out of the way during harvest and are easily replaced to secure the baskets (and serve as hand holds for the crew) while underway.

Returning to shore quickly is essential to retaining freshness. To facilitate this process, US Watercraft designed the hull with a 5° V and tapered bow to promote planning even in choppy conditions. With its 26’ LOA and 8’6” beam, the boat is easily trailered while fully loaded, ensuring a fast return to the Matheson Oyster Co. processing facility where the oysters are transferred to a refrigerated area, the builder said.

The boat is currently under construction and after launching will run year-round on Chesapeake Bay.

Source: https://www.marinelink.com/news/us-watercraft-building-new-oyster-farm-498214

Protesting truckers stopped traffic on Wednesday at a Northern California port, one of the busiest in the United States, as they demonstrated against a new state labor law that makes it harder for independent truckers to operate.

Drivers picketed gates and blocked other truckers from hauling cargo in and out of the port. The protests in Oakland began on Monday and have grown larger and more disruptive with each passing day.

Late on Wednesday, Port of Oakland Executive Director Danny Wan acknowledged protesters’ frustration with California’s “gig worker” law and warned that a prolonged shutdown would “damage all the businesses operating at the ports” and cause customers to shift cargo to rival seaports.

The protesters worry that the law, which could soon be put into effect, will impose hefty costs on them that will slash their earnings.

SSA Marine, which manages the largest terminal at the Port of Oakland in the San Francisco Bay area, closed operations on Wednesday due to the protests, which ground business at other marine terminals to a virtual halt.

SSA and Everport terminal managers sent International Longshore and Warehouse Union (ILWU) dock workers home for safety reasons, a source familiar with the situation said Wednesday.

Terminal representatives did not immediately respond to requests for comment.

The new law, formally called AB5, sets tougher standards for classifying workers as independent contractors.

Trucking industry legal challenges delayed enactment of the law for more than two years, but the U.S. Supreme Court declined to review the case on June 30, clearing the way for it to go forward.

Backers, including the Teamsters and the ILWU, say AB5 aims to clamp down on labor abuses and push companies to hire drivers as employees – which would enable them to join unions and collectively bargain with employers.

Some 5,000 truckers work at the Oakland port, which is a major hub for agricultural exports including almonds, rice and wine.

The protests in Oakland followed actions last week at the nation’s top two seaports, at Los Angeles and Long Beach in Southern California.

The three California ports handle about half of the nation’s container cargo volume. The trucker protests come as the ILWU, which represents dock workers at those and other U.S. West Coast ports, is in high-stakes contract talks with terminal operators that employ them.

Protest organizers say their actions will continue until they get an audience with Governor Gavin Newsom, who did not respond to requests for comment on Wednesday.

On Monday, the Governor’s Office of Business and Economic Development said: “Now that the federal courts have rejected the trucking industry’s appeals, it’s time to move forward.”

Source: https://www.marinelink.com/news/protests-halt-cargo-movement-port-oakland-498217

The Baltic Exchange’s main sea freight index rose on Thursday as an uptick in rates for smaller panamax and supramax vessels offset weakness in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 5 points, or 0.24%, at 2,118 points, snapping two sessions of losses.

The capesize index fell for the third straight session, losing 66 points, or 2.4%, to 2,653 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down by $553 at $21,999.

Dalian and Singapore iron ore futures dropped as investors shifted their focus back to gloomy China demand outlook after a short-lived boost from the latest government rhetoric on economic stimulus.

The panamax index was up 79 points, or 4%, at a nine-day high of 2,051 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $709 to $18,455.

German national railways Deutsche Bahn said it plans to start freight train services to carry Ukrainian grain exports to German ports for loading on ships.

However, the International Grains Council trimmed its forecast for 2022/23 global corn output, largely driven by drought stress in the European Union.

The supramax index rose by 16 points to 2,073 points, its highest since July 13.

Source: https://www.marinelink.com/news/higher-rates-smaller-vessels-lift-baltic-498215

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VRP Archives - Page 3 of 6 - SHIP IP LTD

Merchant Vessel Loses Power in Somali Waters

Timor Port investing in handling capacity

Sailing Vessel Kwai Cleans Up 96 Tonnes of Trash From the Pacific

Parsing the BIMCO Emission Trading Scheme Allowances Clause

PIL adopts Hazcheck Detect to combat mis-declared cargoes

OOCL switching to electronic B/L

Hong Kong-based OOCL is switching to electronic Bills of Lading (eB/L) to enhance efficiency of the global supply chain and cut shipments’ carbon footprint

eB/L provides a digital channel for all users to access real-time status of the shipping process. eB/L also guarantees security, accuracy, and authenticity of data

The solution also enables various parties such as shippers, cargo owners, and banks to manage the eB/L and perform title transfers, surrenders for delivery, etc.

Kerala High Court Ordered The Release Of Russian Cargo Ship Detained At The Cochin Port

US Watercraft Building New Oyster Farm Support Vessel

Protests Halt Cargo Movement at Port of Oakland

Higher Rates for Smaller Vessels Lift Baltic Dry Index

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What is ESG? The Impact of ESG on shipping companies (MARITIME ESG)

Sustainability in Shipping Industry, ESG Performance Reporting (MARITIME ESG)

ESG in the Shipping sector (MARITIME ESG)

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