Liberian oil tanker, Neptune. Source: Erwin Willemse/Marine Traffic.

Underpayment of crew and poor working conditions have led to the banning of a Liberian-flagged oil tanker, Neptune, from Australian ports for six months.

After receiving a complaint regarding the underpayment of seafarers and welfare issues, the Australian Maritime Safety Authority (Amsa) inspected the ship in the Port of Gladstone, in central Queensland and found evidence that the employment agreement with 21 seafarers on board the ship had not been met and the crew members were collectively owed approximately AUD$123 000 (R1 431 403.89).

Amsa found evidence the food and drinking water were not of appropriate quality, quantity and nutritional value for seafarers. It’s also understood a seafarer was not provided with adequate medical care after being injured on board.

As a result, Amsa detained the ship for multiple breaches of the Maritime Labour Convention (MLC) and the operator has been directed to pay the outstanding wages and address the deficiencies.

Amsa’s executive director of operations, Michael Drake, said the seafarers had repeatedly not been paid at regular intervals and two crew members had expired Seafarer Employment Agreements.

“Ships visiting Australian ports are on notice that if we find deliberate underpaying of crew they can expect penalties,” he said.

Source: https://www.freightnews.co.za/article/australia-slaps-hefty-fine-oil-tanker


Ten organisations representing European shippers, freight forwarders, terminal operators and firms in the supply chain have demanded that the European Union immediately review its competition regulation for the container shipping industry.

This is the third time the organisations have called for a review of the regulations, citing continued increases in freight rates, and reductions in capacity, reliability, and quality of service.

The Maritime Executive reported that the organisations were now “disappointed” in the EU’s lack of action – after they twice called for a review in 2021 – compared to other regulators, including the United States.  The Global Shipper Forum is leading the call for the review as one of the ten signatories to the letter.

“There is a striking contrast between the approach of the Commission and the vigour with which the Federal Maritime Commission in the US, and a number of other competition authorities globally, have pursued action against the lines, and the revelations of anticompetitive behaviour which emerged from their investigations,” the group wrote in a letter addressed to Margrethe Vestager, European Commission executive vice-president and Commissioner for Competition.

The group highlighted the latest data recently released by The International Transport Forum, which outlines the seven-fold increase in the freight rate and the reduction of capacity in Europe. They said carriers had increased their profit margins by up to 50%, resulting in a net profit of $186 billion last year, while service issues and costs for shippers had increased.

The EU’s Consortia Block Exemption Regulation, which exempts carriers from certain provisions of the restrictions to promote competition, will expire in less than two years and the organisations now want a review to commence immediately.

The organisations have claimed that “many of the excesses of behaviour” exhibited by shipping lines had stemmed from the “open-ended and highly favourable” terms in the current regulation.

“The regulation does not seem to be able to accommodate major changes in this market over the past few years, including developments in information standardisation and exchange, shipping lines’ acquisition of other supply chain functions, nor how the shipping lines have been able to leverage these to accrue supernormal profits at the expense of the rest of the supply chain.”

Among the ten groups endorsing the letter are the European Association for Forwarding; Transport, Logistics and Customs Services; Federation of European Private Port Companies and Terminals; European Shippers’ Council; Global Shippers’ Forum; International Federation of Freight Forwarders’ Associations; International Association of Movers; International Union for Road-Rail Combined Transport; FIDI Global Alliance; European Barge Union, and European Tugowners’ Association.

Source: https://www.freightnews.co.za/article/eu-shippers-freight-forwarders-call-urgent-review-competition-rule


Russian forces have said that they had destroyed a Ukrainian warship and US-supplied Harpoon anti-ship missiles in the Ukrainian port of Odesa.

Russian news agencies quoted the defence ministry as saying on Sunday July 24th that “a docked Ukrainian warship and a warehouse with US-supplied Harpoon anti-ship missiles were destroyed by long-range precision-guided naval missiles in Odesa seaport on the territory of a ship repair plant.”

The Ukrainian military had said Russian missiles hit the southern port on Saturday, threatening the agreement signed on Friday that it was hoped would free up grain exports from Black Sea ports.

Ukrainian president Volodymyr Zelenskiy said that the strikes on Odesa were “barbarism”, and proved that Russia could not be trusted to implement Friday’s deal in good faith. The agreement had been mediated by Turkey and the UN.

Initially the Saturday attack was denied. Turkey’s Defence Minister Hulusai Akar said on Saturday that “in our contact with Russia, the Russians told us that they had absolutely nothing to do with this attack and that they were examining the issue very closely and in detail”.

However, on Sunday, after it became clear that the Russian denials would not fly, Maria Zakharova, spokesperson for the Russian foreign ministry, said that “Kalibr missiles destroyed military infrastructure in the port of Odessa, with a high-precision strike”.

“They are in no way related to infrastructure that is used for the export of grain. This should not affect — and will not affect — the beginning of shipments,” Kremlin spokesman Dmitry Peskov said on Monday.

Even if the targets were designated as “military infrastructure”, the attack could be interpreted as a breach of Friday’s agreement. Russia’s willingness to attack one of the three designated export ports was thought likely to raise concerns for shipowners, seafarers and insurers who have to decide whether to supply, man or insure calls in Ukraine to load up grain.

Source: https://insurancemarinenews.com/insurance-marine-news/russia-admits-attack-on-odesa-shortly-after-agreement-signed/


The safety credentials of one of Australia’s largest stevedoring companies is being called in to question, with Maritime Union of Australia safety officials expressing their gravely held concerns about a push from management to implement a reckless benchmarking system that pits wharfie against wharfie in a battle to see who is the fastest machinery operator around the Australian waterfront.

The Dubai-owned DP World terminal operator, which has facilities at ports in Brisbane, Sydney, Melbourne and Fremantle, has recently rolled-out an employee benchmarking system which shows workers where they rank for speed amongst their colleagues, complete with individual’s performance measurements presented in the style of racing car instrumentation.

“DP World want to pit worker against worker in an attempt to foster a speed-culture on the waterfront that will inevitably place safety a distant second in some of the highest-risk working environments in Australia,” said the MUA’s Assistant National Secretary, Adrian Evans.

“Pushing workers to focus on speed instead of safety while operating high risk machinery is guaranteed to deliver tragedy, not productivity. Recent tragedies on the Kiwi waterfront are a timely reminder of what happens when middle managers are allowed to prioritise profit over the lives of their workers,” Mr Evans added.

The MUA’s National Safety and Training Officer, Justin Timmins, cautioned workers at DP World that nothing was more important than going home safely at the end of a shift.

“The push to pit worker against worker in a never-ending speed trial on the Australian waterfront will only end in tragedy. Right now, New Zealand ports management are being prosecuted for a spate of workplace deaths on the Kiwi waterfront, all of which started with a similar race to the bottom on safety,” Mr Timmins said.

In a bulletin issued to DP World stevedoring workers last Friday, the Chief Operations Officer Mark Hulme, explained that the company had been collecting individual performance data and metrics showing each workers’ productivity across the various high risk machinery types, including quay cranes, straddle cranes, heavy forklifts and shuttle cranes, at DP World facilities around the country.

The bulletin told workers that the personalised data, presented in the style of a car’s speedometer, would generate “meaningful, open discussions about your performance and productivity in the workplace” and “motivate you and your peers to drive improvements in productivity”.

Mr Evans called on DP World to abandon its flawed and dangerous scoring system and engage with its workforce respectfully about how to improve productivity without putting the safety of stevedoring workers at risk.

“The COO claims that the success of his business is based on each DP World employee doing a great job every day, but whoever came up with this idea needs to go back to the management brainstorm workshop, pull out the textas and try again. Too many of our members have lost their lives in this extremely dangerous industry and we will never accept industrial cowboy policies like this on the Australian waterfront” Mr Evans said.

DP World, which pays no income tax in its home base of the United Arab Emirates, delivered an 8.3% increase in throughput at its Australian and New Zealand ports last financial year and posted a global profit of over $1bn to its shareholders.

“No company should ask its workforce to put their lives on the line for profit. The local managers of this multinational, multi-billion dollar company have no excuse to be undermining the importance of workplace safety in pursuit of minor productivity improvements”, Mr Evans said.

Source: http://www.mua.org.au/news/stevedoring-multinational-dp-world-collision-course-wharfies-over-waterfront-safety


  • Iris Logistics, Inc.’s MV Iris Paoay will start an intra-Asia service in August that will link the Philippines directly to Thailand and Vietnam
  • The service will start soon after MV Iris Paoay arrives in Manila on August 25 from Los Angeles, California
  • It will call Manila South Harbor, Bangkok, Laem Cha Bang, and Ho Chi Minh ports

Iris Logistics, Inc. will launch in August an intra-Asia service that will link the Philippines directly to Thailand and Vietnam.

The service will start after MV Iris Paoay arrives in Manila on August 25 from Los Angeles, California, its parent firm Royal Cargo said in a customer advisory.

The 1,118-twenty foot equivalent unit (TEU) vessel had been used by Iris Logistics for its US service that began in September 2021, in response to local exporters’ clamor after experiencing shipping difficulties due to COVID-19-induced supply chain and logistics issues.

Royal Cargo earlier deployed MV Iris Paoay as the first Philippine-flag container vessel to sail directly to the US in about 30 years.

The new intra-Asia service will call the following terminals:

  • Manila South Harbor
  • Bangkok: Thai Connectivity Terminal TCT (operated by PSA Terminals)
  • Laem Cha Bang: Eastern Sea Laem Cha Bang Terminal
  • Ho Chi Minh: Tan Thuan Terminal Saigon Port (can also accept delivery at Cat Lai Terminal upon request)

The vessel will depart Manila South Harbor on August 26 and call General Santos and Davao ports before sailing to Bangkok, arriving there on September 6.

The vessel will leave Bangkok on September 7 and arrive on the same day at Laem Cha Bang in Chonburi province, 130 km southeast of Bangkok. It will depart the next day for Ho Chi Minh and arrive in the southern Vietnamese port on September 11.

MV Iris Paoay will depart Ho Chi Minh on September 12 and arrive at Manila South Harbor on September 15.

Iris Logistics, formerly Royal Cargo Lines Inc., is a subsidiary of Royal Cargo, which operates domestic maritime and transport services.


Cruise line’s newbuild programme and current fleet will leverage SES’s O3b mPOWER connectivity service to make seamless family luxury a reality.

SES, the world’s leading content connectivity satellite service provider, will be providing ground-breaking high-speed satellite-based connectivity services to the newest landmark ship of a leading family cruise line, the company announced today. The cruise line’s existing fleet will also transition its connectivity to SES’s second-generation medium earth orbit (MEO) system O3b mPOWER, alongside installing the service onto its newbuild programme.

The high-performance connectivity service onboard will first be available via SES’s O3b Medium Earth Orbit (MEO) constellation and will subsequently migrate and expand to SES’s O3b mPOWER communication system. This connectivity will be augmented by SES’s geostationary satellite fleet and ground-based infrastructure to provide high-bandwidth redundancy and unparalleled reliability throughout the voyage.

The new agreement will help enable a seamless and hassle-free internet connectivity experience for guests who can unwind in complete luxury without worrying about their family’s consuming large amounts of data at considerable expense. Passengers can purchase new Unlimited Internet access plans by leveraging SES’s O3b mPOWER network and enjoy unmatched connectivity whilst cruising.

The low-latency connectivity network which will be delivered by SES’s O3b mPOWER system is also set to enable innovative connected technologies, including a first-of-its-kind immersive augmented reality experience for guests. It will also power wearable technology for families, which provides children secure and safe access to amazing experiences while parents recline at the pool.

Simon Maher, vice president of global sales, cruise maritime services at SES, said, “SES is privileged to be selected as the most innovative technology connectivity partner for both the transition of the current fleet of Cruise Ships from the legacy provider to SES but also supporting the cruise line’s fleet expansion plans. We are passionate about amazing, innovative experiences that push the boundaries of what people think is possible. As the only company to operate a commercially successful medium earth orbit constellations at unmatched scale, SES is uniquely positioned to offer the most reliable, best-performing high-speed connectivity at sea that helps make incredible and innovative experiences a reality.”

Source: https://thedigitalship.com/news/maritime-satellite-communications/item/7970-ses-to-power-innovative-immersive-experiences-onboard-leading-family-cruise-lines-fleet-with-o3b-mpower


There was a recorded increase in armed robberies on vessels in the Singapore Strait during H1 2022, according to ReCAAP ISC’s half-yearly report. However, as these events were not on the open sea, they did not qualify as “piracy”. In fact the Asian region had no incident of piracy during the first half of the year. The 42 incidents of armed robbery against ships all occurred in internal waters, archipelagic waters and territorial seas. This represented an 11% increase on the 38 incidents reported during the same period in 2021.

The increase in incidents of armed robbery occurred in Bangladesh and Singapore Strait. Three incidents were reported in Bangladesh during H1 2022, up from zero in the same period last year. There were 27 incidents reported in the Singapore Strait, up from 20 incidents during H1 2021.

There was a decrease in incidents in the waters of Malaysia, the Philippines and Vietnam. There were no incidents in Malaysia during H1, down from one in H1 2021. In the Philippines there were three incidents, down from six in H1 2021, while in Vietnam there were no incidents reported, compared to two incidents during H1 2021.

The Sulu-Celebes Seas and waters off Eastern Sabah remain quiet. The last incident was reported in January 2020. ReCAAP said that the threat of abduction of crew for ransom remained “potentially high”, particularly in the area of Sulu and nearby waters off Tawi-Tawi. This was because Abu Sayyaf Group commanders who were responsible for past incidents of abduction in Sulu remained at large, and there was a presence of remnants of the group in the area.

https://www.recaap.org/resources/ck/files/reports/half-year/ReCAAP%20ISC%20Half%20Yearly%20Report%202022.pdf


Tug Blue Dragon 12 (IMO 8679326) was reported to have suffered an explosion and subsequently sank during the afternoon of July 23rd in Semoi Setawir, Sungai Sepaku river, upstream from Balikpapan, Eastern Kalimantan Makassar Strait, Indonesia. Of 12 people on board, four suffered burns of unknown severity, one went missing and seven escaped uninjured. The tug was waiting for barge Sea Dragon 2712 to be loaded with coal. There were reported to have been welding works taking place in the area of the stern at the time.

2012-built, Indonesia-flagged, 117 gt Blue Dragon 12 is owned and managed by Aditya Aryaprawira Shipping of Jakarta, Indonesia.

Bulk carrier St Pinot (IMO 9596179) suffered a fire in its engine room on July 8th, resulting in injury to one crew member. The vessel was disabled and adrift in the Gulf of Aden off the Yemen coast. It was taken in tow by tug Boka Expedition (IMO 9358943) on July 17th and on July 21st the convoy moored at the Al Duqm Anchorage.

2013-built, Marshall Islands-flagged, 32,311 gt St Pinot is owned by One Ship Ltd care of manager Shamrock Maritime Sarl of Monte Carlo, Monaco. ISM manager is Seaquest Shipmanagement DOO of Rijeka, Croatia. It is entered with Britannia on behalf of One Ship Ltd. No AIS since July 17th.

During a discharge of a cargo of wet bauxite from the Good Hope Max (IMO 9304241) during the afternoon of July 18th at the small port of Alumar in Brazil the terminal’s shore crane suffered a fire, which caused the grab to fall on to the deck of the vessel. The reason for the fire on the crane was not disclosed. Weather conditions at the time were good. The ship left port on July 20th and moored on Itaqui anchorage that evening. As of July 25th the vessel was at Sao Luis Anchorage, Northern Brazil.

2005-built, Isle of Ma-flagged, 40,039 gt Good Hope Max is owned by Rifos Navigation Ltd care of manager Safbulk Maritime SA of Athens, Greece. ISM manager is Central Ship Management Ltd DMCC of Dubai, UAE. It is entered with Gard P&I on behalf of Rifos Navigation Ltd.

Cruise ship Ocean Atlantic (IMO 8325432) was reported to Norwegian Maritime Authorities by an anonymous party as having had a minor accident during the weekend of July 16th-17th in Svalbard Archipelago waters, Norway. The ship was said to have suffered a breach of its hull, either as a result of grounding or iceberg contact. The crew sealed the breach and there were no signs or signals of danger for ship and for passengers. The ship was reported to have been ordered to return to Longyearbyen, Spitsbergen, escorted by Norwegian Coast Guard vessel. The Ocean Atlantic berthed at Longyearbyen late on July 20th to undergo inspection and investigation. It remained there on July 25th

1986-built, Portugal-flagged, 12,798 gt Ocean Atlantic is owned by Altprt Atlantic Partners care of manager Sunstone Ships Inc of Miami, Florida. ISM manager is Cruise Management International of Miami, Florida. It is entered with American Club on behalf of ALTPRT Atlantic Partners, Unipessoal LDA.

Source: https://insurancemarinenews.com/insurance-marine-news/marine-accident-round-up-26th-july-2022/n


Imperial, owned by DP World, a leading provider of worldwide smart end-to-end supply chain logistics, says its Market Access business has increased its stake in PST Sales & Distribution (PST) in Botswana, from 38% to 72%. The transaction came into effect on July 1, 2022.

PST is a home-grown Botswana enterprise with over 30 years of experience and rich in local industry knowledge and expertise. It also represents some of the world’s premier multinationals in the food and non-food Fast Moving Consumer Goods (FMCG) sector and has longstanding relationships with principals and customers. As part of seamless route-to-market solutions, PST’s services include supply chain management, sales & branding, as well as financial and administrative management.

“PST’s sound knowledge of the consumer landscape in Botswana, coupled with its comprehensive distribution and sales solutions, aligns well with DP World’s strategic objective of leveraging assets and logistics to create an integrated global supply chain – from factory floor to customer door,” said Mohammed Akoojee, Chief Operating Officer of DP World Logistics and Group CEO at Imperial.

Leading distributor
“PST further entrenches Imperial as the leading distributor of consumer goods in Southern Africa, providing brand owners with informed and unparalleled access to their end consumers by leveraging our in-market networks and in-country infrastructure.”

In addition to its in-depth knowledge of the Botswana consumer market, PST has the infrastructure to provide a nationwide route-to-market solution and a team of product specialists, which enables the business to participate in every category of the FMCG industry.

“PST is a renowned Botswana business known for the delivery of well-known brands in the country and further enhances our position as the leading distributor in Southern Africa”, said Johan Truter, Chief Executive Officer of Imperial’s Market Access business.

Robust infrastructure
“The business has robust infrastructure which enables it to serve the entire trade universe and has unmatched local knowledge, with almost all employees being local, including top management.”

Autash Arora, Managing Director of PST, added: “This transaction further cements PST’s relationship with Imperial, and bodes well for our vision of being the best FMCG distributor in the country and delivering well-known brands and household names to the people of Botswana. In addition, this investment allows us to continue to consistently deliver outstanding results for the benefit of our customers and principals in line with our promise of customer satisfaction.”

This transaction bears testament to Imperial fulfilling its ambition of becoming the leading market access and logistics partner in Africa, by providing access to quality products and services.
Source: TradeArabia


Low recycling prices for vintage tonnage are expected to hinder any increase in the number of units sold over the next few weeks. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “we are trying to establish from where a concession will appear, the Sellers or the Buyers! On the outside we do not envisage many units to come for recycling for the next month at least and therefore it would need the actual recyclers to increase their rates to tempt any Owner contemplating a recycling sale. However, financial restraints and weakening currencies against the U.S. Dollar continue to put cause for concern amongst the Indian sub-continent recycling community and ensures no over-inflated levels at this current time. There are rumours abound of Letters of Credit unable to be opened for larger LDT tonnage, particularly from Bangladesh, which further creates difficulties when and if a vessel of this ilk comes for sale. We are now witnessing actual sales of tonnage for recycling fall to their lowest levels in a decade and certainly we cannot predict a massive change any time soon during the summer months and heading into the final quarter of 2022”, the shipbroker said.

 

Source: Clarkson Platou (Hellas) ltd

In a separate note this week, Allied Shipbroking added that “the ship recycling market appears in a rather “weird” state as of late. Activity has slowed down significantly, that is partly though explained from seasonality factors, but scrap price levels continue experiencing considerable pressure as well, for a period now.

Source: Allied Shipbroking

In the separate demo destinations and more specifically that of Bangladesh, things are losing momentum, given the currency depreciation and the recent shortage of US Dollar reserves, altering the Letter of Credit availability and as such making the overall local market unable to compete for larger ldt units. In Pakistan, the scene indicated many similarities, facing the same type of difficulties while also at the same time being the least competitive destination for some time now within the Indian Sub-Continent. The Indian market, despite the excess volatility in local steel prices, when compared with the other main Indian Sub-Continent Recyclers, may well have prevailed as the most stable market in the near term (at least)”.

Meanwhile, GMS , the world’s leading cash buyer of ships said in its weekly report that “as the ship recycling sector continues to try and adjust to these new lower realities on price, in addition to adhering to new regulations on L/C limits amidst a dire shortage of U.S. Dollars foreign exchange / reserves in both Pakistan and Bangladesh, the industry is certainly going through an uncertain period. This week, the Bangladeshi government introduced new limits to cap the outgoing volume of U.S. Dollars for ‘essential’ purchases only – raising question marks about higher priced vessels for recycling purchases in the foreseeable future. As such, the government announced that any L/C over USD 5 million has to be approved by the Central State Bank for opening, with the Bangladeshi Taka struggling to such a worrying extent of late.

Source: GMS,Inc

Unfortunately, the currency situation is no better elsewhere as we are witnessing fresh historical lows by the day in all of the major recycling destinations on their respective currencies against the U.S. Dollar, and there have been elevated fears across these locations that international trade may eventually start driving domestic inflation up as the U.S. Dollar continues to strengthen rapidly. Keeping things in check is the fact there are very few new units to work on, now that the tanker chartering market is firming further and this may give the recycling markets, some time to settle and stabilize before fresh units are proposed to Recyclers once again come Q4. While Pakistan has registered a massive drop in local steel plate prices this week, India remains the most stable of the sub-continent markets despite the extreme volatility on Indian plate prices seen on a near daily basis and similar worrying currency depreciation is leaving Alang Recyclers confused and nervous on any firm offers moving forward. On the West End, Turkish plates take another tumble this week as even the currency – like all the major recycling locations – continues its steady slow descent to oblivion”, GMS concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide


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