INTERNATIONAL MARITIME ORGANIZATION

MARITIME KNOWLEDGE CENTRE

CURRENT AWARENESS BULLETIN

Volume XXIII No. 10 October 2011

sharing maritime knowledge

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ROUND UP OF NEWS AND PUBLICATIONS OCTOBER 2011

MEETINGS
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THE UNITED NATIONS

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INDUSTRY NEWS AND PUBLICATIONS

SOURCES
New publications listed are all available for consultation in the MKC. For copyright reasons we are unable to send copies and you are advised to contact the publishers. Click here for the latest MKC Acquisitions List. Please note that the following list contains excerpts only. The full text of articles in this issue are available from the sources listed below:

Bunker Bulletin: http://bunkerworld.com Fairplay International Shipping Weekly: http://www.fairplay.co.uk Fairplay Solutions http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx Journal of Marine Engineering and Technology: http://imarest.org LLOYDS List: http://www.lloydslist.com MER http://www.imarest.org Naval Architect: http://www.rina.org.uk/tna.html Safety at Sea International: http://www.safetyatsea.net Seatrade: http://www.seatrade-global.com Seaways: http://www.nautinst.org/Seaways/index.htm Shipping World & Shipbuilder http://www.shippingworld.org/ Tanker Operator: http://www.tankeroperator.com TradeWinds: http://www.tradewinds.no

CASUALTIES
Norway ferry inspection urged after fatality - By Craig Eason "The Norwegian authorities are being urged to conduct immediate safety surveys on two sisterships to a Hurtigruten ferry that caught fire, killing two crew members. The Skaggerak Foundation says there is sufficient evidence to suspect that the ferries Richard With and Kong Harald may suffer from the same problems as the Nordlys, which caught fire as it was arriving in lesund on September 15. The chief engineer and an engineer apprentice are believed to have lost their lives.." LLOYDS LIST, 3 October 2011, p 2 Nautilus presses Panama for answers over 2009 sinking - By Adam Corbett "UK officers union Nautilus International is demanding answers from the Panama maritime authorities on the cause of the sinking of the 14,823-dwt livestock transporter Danny F II (built 1976) nearly two years ago. The loss of the vessel 18 kilometres (11 miles) off Lebanon in December 2009 claimed the lives of two UK seafarers who were among 44 others to lose their lives in the accident. The ship had been converted from a car carrier in Singapore in 1997. Port-state-control (PSC) records show there were suspected structural problems, while there have been long-standing industry concerns over the safety of major conversions." TRADEWINDS, 7 October 2011, p 47 Oil spill alert Rena hull may be breaking up - By Tom Leander "New Zealand authorities are struggling to contain a slick from bunker fuel leaking from the grounded Costamare - owned, Mediterranean Shipping Co - operated Rena which hit a reef 12 miles from the New Zealand coast last Wednesday. Reports that the ship is breaking up could not be verified, but maritime authorities admitted the possibility in discussing a worst-case scenario with the press early Friday. " LLOYDS LIST, 10 October 2011, p 5 New plan to get at Rena's fuel - By Tom Leander "Salvors have adopted a new plan to reach the fuel tanks on the stranded Rena that requires building platforms on the port side of the vessel that will allow them the stability to gain access to the tanks, writes Tom Leander in Hong Kong. A spokesman for the salvors said that working on board the ship, which is listing more than 20, was too dangerous to allow further pumping. Rena , which ran aground nine days ago on Astrolabe Reef near the port of Tauranga on New Zealand's North Island, has leaked 350 tonnes of fuel oil but still retains more than 1,300 tonnes in its tanks. The oil from the spill has washed up on local beaches, and some 3,000 volunteers from local communities have registered to help in the clean-up." LLOYDS LIST, 17 October 2011, p 2 Pumping on Rena resumes - By Tom Leander "Pumping of the 1,300 remaining tonnes of bunker fuel from the grounded containership Rena resumed as salvors were able to gain access to the vessel on Thursday. Harsh weather conditions had caused the operation to be temporarily postponed earlier. So far

about 90 tonnes of fuel oil has been removed from Rena's fuel tanks and about 350 tonnes has spilled, some of which has washed up in coastal areas around Tauranga Port. Rena, which is owned by Greecebased Costamare, was grounded 13 days ago near the port. Maritime New Zealand reported that weather conditions had improved to the degree that salvors were continuing to pump on Thursday night, local time, after bringing back-up equipment to fix a booster-pump blowout in the afternoon." LLOYDS LIST, 21 October 2011, p 2 Rena's final AIS tracks indicate vessel 'in a rush to get into port' - By David Osler "Stricken Costamare - owned boxship Rena took the most easterly course of any vessel entering or leaving Tauranga in the three weeks before it hit a reef in the Bay of Plenty, causing the bunker spill that has outraged public opinion in New Zealand. Automatic identification system data compiled by Lloyd's List Intelligence shows that the vessel was steaming consistently at 17 kts for several hours before it ran aground. The revelations will reopen the debate over what led to the worst maritime pollution incident that New Zealand has seen to date, and whether the ship was deliberately seeking to take a short cut, perhaps under operational pressure. New Zealand environment minister Nick Smith has suggested that Rena was trying to reach port in something of a hurry." LLOYDS LIST, 21 October 2011, p 2

Rena declared constructive total loss - By Nigel Lowry "Container vessel Rena has been determined a constructive total loss for insurance purposes, owner Costamare reported. The 3,032 teu vessel was covered for hull and machinery, as well as third-party claims by the Swedish Club. According to Costamare, the vessel had all internationally mandated insurances for pollution, salvage and clean-up response. " LLOYDS LIST, 28 October 2011, p 3 South Africa left with salvage bill - By Jonathan Boonzaier "The South African Maritime Safety Authority (Samsa) has been left to pay for the salvage of the derelict 14,500-dwt products tanker Phoenix (built 1974), which was hauled off a rocky South African beach last month. Regional manager for its southern office, Nigel Campbell, tells TradeWinds that the bill is worth over ZAR 40m ($5m) and there is no way the authority can recoup the cash from the vessels owners. The Phoenix ran aground off the popular beachfront resort of Sheffield Beach, near Durban, in July. The vessel had broken down off the South African coast while en route from West Africa to a scrapyard in India. The ship did not have any protection-and-indemnity (P&I) cover and its registered owner, A&K Shipping Group Inc of Belize, exists merely as a post-office-box address." TRADEWINDS, 28 October 2011, p 19

LAW AND POLICY

Bluewind and Swire to plead guilty - By David Osler "Case arises from March 2009 incident involving boxship Pacific Adventurer. Swire Navigation and Bluewind Shipping have told a court in Brisbane they will plead guilty to charges arising from a serious bunker spill off the Australian city two years ago, according to Australian media reports. The incident, during which Swire vessel Pacific Adventurer lost 31 containers in heavy seas off Cape Moreton, took place in March 2009. Some of the loose containers hit the ship, causing a 270,000-litre fuel oil spill in an area with important tourism and fishing sectors. Charges against the master, Bernandino Santos, have been dropped. It was ruled the problems that led to the loss of the containers had existed before he took charge of Pacific Adventurer." LLOYDS LIST, 3 October 2011, p 2 Polish safety law expected - By Colin Graham "An act upgrading maritime safety passed by Polands upper house of parliament, the Senate, in mid-September is soon to be ratified by the countrys president, Bronislaw Komorowski. Once the president has signed the new law, local authorities along the Baltic coast in Poland will be compelled to compile electronic databases with details of Polish ships. The legislation also covers such details as equipment on board vessels, manning levels and the qualifications of seafarers, as well as procedures for safe navigation and rescues at sea." FAIRPLAY, 6 October 2011, p 28 Malaysia prepares to allow international ship arrests - By Liz McMahon "Malaysia has amended its Arbitration Act 2011 to permit international vessels to be arrested in its jurisdiction in aid of arbitration, whether or not the seat of the arbitration is in Malaysia, writes Liz McMahon. The key changes, due to come into force in July 2012, state that where a maritime dispute is subject to arbitration agreement, a claimant will now be able to: arrest the respondent's vessel when it calls in Malaysia; have the Malaysian action stayed; and have the security provided by the respondents following the arrest stand as security for any arbitration award given against the respondents.." LLOYDS LIST, 11 October 2011, p 2 UK shipping regulation to be shrunk - By David Osler "Much existing UK shipping regulation could soon be scrapped as part of the coalition government's wider drive to reduce legal restrictions on

business, Maritime and Coastguard Agency chief executive Sir Alan Massey has announced. The move has been criticised by seafarer union Nautilus International, which fears that the proposal could open the way for shipowners to cut corners on safety.." LLOYDS LIST, 13 October 2011, p 2 Experts urge Brussels to redraft Rotterdam Rules - By Roger Hailey "An international group of professors and legal practitioners opposed to the Rotterdam Rules has called on the European Union to insist on a redrafting of the yet-to-be-ratified cargo liability convention. A letter from the group to EU Transport Commissioner Siim Kallas states that "only" 24 countries have signed and just one has ratified the Rotterdam Rules, which were launched with a flourish in the Dutch port bearing its name in September 2009. The Rotterdam Rules need 20 countries to ratify, at which point it will enter into force 12 months thereafter. " LLOYDS LIST, 13 October 2011, p 2 Albanese's regulatory reform divides opinion Down Under - By David Osler " Australian shipowners who commit to using the Australian flag are being offered some of the most generous tax treatment available anywhere in the world, which would leave them as undisputed winners of what at times seems something like a global Dutch auction on this score. In many cases, they will also gain exemption from some pretty onerous labour legislation, and even the chance to use a second register." LLOYDS LIST, 13 October 2011, p 4 P&I club confirms cover is capped - By Liz McMahon "New Zealand can look to IMO but its failure to ratify recent conventions means provisions are limited. Rena 's P&I club, The Swedish Club, has confirmed that the ship's liability cover will be capped with a pollution limit of 1bn ($1.4bn). Swedish P&I Club managing director Lars Rhodin said the club was insuring the liability of the owner of Rena and it would respect that liability. However, he said the policy has a cap when it comes to pollution of 1bn and under New Zealand legislation there is also a limit on liability for other types of claims. Mr Rhodin said that once the cap was reached, which is calculated by the size of the vessel, any excess costs would be passed on to the government and taxpayers." LLOYDS LIST, 14 October 2011, p 2 Rena master has 'exemplary record' - By Nigel Lowry "Boxship owner Costamare has defended the qualifications of the 44-year-old master of Rena , which is at the centre of a grounding drama off the New Zealand coast. "Our captain is an experienced master and has an exemplary record," the company said. Both the master and the navigation officer have been granted bail after appearing in Tauranga District Court this week to face charges under New Zealand's Maritime Act. The names of both seafarers are being withheld by the authorities. It was the owners' first public comment on the senior officers of Rena since last week's accident." LLOYDS LIST, 14 October 2011, p 2 Venezuela to demand prison in Jrgen Schulte drugs haul case - By David Osler "Venezuelan prosecutors are seeking custodial sentences for 11 seafarers from the crew of a Bernhard Schulte managed bulk carrier for drug trafficking offences, following the discovery of 478 kg of uncut cocaine on board the 1997-built, 48,224 dwt Jrgen Schulte earlier this month. A further nine people have been instructed not to leave the country. Representatives of the operator were not immediately available for comment. However, a Bernhard Schulte spokesman has previously stated that it considers the seafarers innocent, and has hired lawyers to mount a defence." LLOYDS LIST, 18 October 2011, p 5 P&I clubs focus on rise in cargo crime - By Jon Guy "Rising levels of cargo crime have topped the underwriters' agenda this week with both Brit and the TT Club looking to highlight the issue and efforts needed to reduce it, writes Jon Guy . Brit announced it has signed up to the CargoNet initiative in the US as the cost of cargo crime in the country is set to top $30bn a year." LLOYDS LIST, 19 October 2011, p 7 Danes call for IMO to cut red tape - By Adam Corbett "Denmark is calling for a reduction in the red tape afflicting shipowners due to international shipping regulation. It has called on the International Maritime Organisation (IMO) to conduct a review of the existing regulations in a bid to weed out inefficiencies and duplication. The Danish Maritime Authority (DMA) adds that the review should cover the major international conventions and either reduce or completely remove what it describes as administrative burdens. It refers specifically to requirements that create excessive paperwork or duplicate tasks." TRADEWINDS, 21 October 2011, p 54 Panama fights back after Nautilus demands report - By Adam Corbett "Officers union Nautilus International has accused the flag of not issuing a report into the loss of the 14,800-dwt livestock carrier Danny F II (built 1976), which went down in December 2009 off Lebanon with the loss of more than 40 lives including two UK seafarers. The ship was a major conversion from a car carrier and the union believes the accident may hold vital information for the industry on the safety of converted vessels. Gerardo Varela, chief of the Marine Accident Investigation department at the Panamanian Register, insists the accident has been investigated but says the flag is not yet ready to release the findings." TRADEWINDS, 21 October 2011, p 55

Master gets judge to set timetable over magic pipes - By Rajesh Joshi "The master of Mercator Lines' bulker Gaurav Prem has won an important legal decision against the US government, in which he appears likely to be allowed to leave the country much sooner than hitherto has been usual in so-called magic pipe cases. Since the US crackdown on magic pipe offenders intensified in the past decade, prosecutors have established a precedent of requiring mariners on ships targeted to remain indefinitely in the US, as "material witnesses". Sometimes, some of these mariners end up as defendants. Leading US maritime trial attorney George Chalos, who represents Capt Taohim, said the government's assumption in such cases is crewmembers are part of the surety it has required the owner to put up to get their ship released. "This is appalling, because an individual can never be considered as property," Mr Chalos said." LLOYDS LIST, 27 October 2011, p 2 US lawmakers raise the piracy stakes "Proposals by lawmakers responsible for formulating US foreign policy to shame shipowners into complying with anti-piracy measures are misguided, according to one shipping group. The scheme, recently approved by the Foreign Affairs committee in the US House of Representatives, directs the president to publish the names of shipowners and vessel operators who are found to continually disregard industry best management practice designed to combat piracy. Names would be published annually and more frequently as information becomes available, according to an assistant to Ed Royce, a California Republican who chairs the committees Terrorism, Non-proliferation and Trade subcommittee. The scheme would serve as a spotlight to pressure the owners of an estimated 20% of all vessels operating off the Horn of Africa that do not employ practices encouraged by the international Contact Group on Piracy off the Coast of Somalia, created in 2009." FAIRPLAY, 27 October 2011, p 30 IMSO boss urges more states to sign up "Denmark signs up to IMSO amendments, but others need to follow. Member states of the International Mobile Satellite Organization (IMSO) should accept amendments to the IMSO Convention that were adopted three years ago, its director-general said last week. Capt Esteban Pacha-Vicentes comments came in a statement welcoming Denmarks agreement to the amendments as its formal acceptance was delivered to IMO. It had been signed on 5 October by Villy Svndal, the Danish minister of foreign affairs. But Denmark is only the eighth IMSO member state to have accepted the amendments, which will only formally come into force 120 days after they have been accepted by 62 states." FAIRPLAY, 27 October 2011, p 31 Union hits out over accident investigation failures Flag states that fail to properly investigate maritime accidents should not be allowed to operate ship registries, Anglo-Dutch maritime professionals union Nautilus International told a conference recently. TANKER OPERATOR, October 2011, pp 44-45 Dual probe into Rena grounding - By Adam Corbett "Two inquiries into the cause of a boxship casualty will be carried out separately by New Zealand and the Liberian flag. New Zealand and the Liberia flag are to produce separate reports on the grounding of the 3,351-teu containership Rena (built 1990). An official from the Liberian Registry tells TradeWinds that there is full co-operation between the two countries on investigating the accident and that each will reach their conclusions independently. The ship is registered in Liberia, while the accident occurred off New Zealands Astrolabe Reef. A navigational blunder is presumed to be the cause of the incident and the content of the voyage data recorder (VDR) is likely to be essential in determining the cause." TRADEWINDS, 28 October 2011, p 38 Proposed ban on US damages lawsuits sparks outrage - By Rajesh Joshi "A draft provision in upcoming US legislation that would bar non-US citizen crew on foreign-flag passenger vessels from seeking damages for injury or death in US courts has sparked outrage among seafarer rights advocates. Other legal experts are bemused the provision - whose main effect will be on cruise line employees - sets a different standard for this category of mariners compared with crew on cargoships or containerships, or any other merchant vessel. The House of Representatives' version of the new US Coast Guard Authorisation Act contains a section that stipulates a seafarer who is not a US national or permanent resident and who suffers injury or death outside US territorial waters, be debarred from bringing a damages lawsuit before a US court, so long as the mariner has a right to seek compensation under the laws of his homeland or in the ship's flag state." LLOYDS LIST, 31 October 2011, p 2

MARINE TECHNOLOGY
EEDI is based on 'lousy' maths and should be scrapped - By Eric van den Berg "A German study has concluded that the International Maritime Organization's Energy Efficiency Design Index still suffers from fundamental flaws that will lead to distortions in the market. "The only solution is scrapping the EEDI altogether," said the study author Stefan Kruger,of the Technical University of Hamburg-Harburg. "It is a flawed concept based on extremely lousy mathematics." The EEDI, a benchmark for vessel energy

efficiency, will become mandatory in 2013. Lennart Pundt, an engineer and colleague of Prof Kruger, presented the findings of the professor's study at the LLOYDS Maritime Academy's recent ro-ro Shipping Seminar. The EEDI uses the average efficiency of an entire vessel class as a benchmark for individual vessels' efficiency. Because of the way it is calculated, it becomes impossible for vessels of a certain weight to surpass pre-determined speeds, Mr Pundt said." LLOYDS LIST, 4 October 2011, p 7 Call for co-ordination as marine LNG fuel projects increase - By Craig Eason "The sudden rush to get liquefied natural gas as a commonly-available and adopted fuel for shipping in North Europe has led to a meeting being arranged in Gothenburg next week, aimed at bringing together all the parties involved in the numerous projects that have sprung up. The use of LNG as marine fuel has become one of the prime environmental project ideas for funding by the European Commission, with organisations looking at vessel design, fuelling systems, bunker supply infrastructure and pending rules. The Swedish Maritime Technology Forum, itself a participant in some of the projects, wants to bring together representatives from the other studies to share information about goals and approaches." LLOYDS LIST, 4 October 2011, p7 Ecsa plans to lighten the load - By Nigel Lowry "European shipowners and seafarers are poised to increase efforts to bring sanity to administrative burdens placed on officers, at least in European Union ports, a leading industry figure has said. European Community Shipowners' Association secretary-general Alfons Guinier said a meeting with the European Transport Workers' Federation "should result in concrete action to be taken to make an end to this appalling situation". Ecsa had rounded up all port forms for seafarers and wants ports to arrive at proposals to streamline and reduce the paperwork. The European Commission's e-maritime project could contribute to solving the problems. "Ideally the requested and necessary documents or data should be submitted once to one single window out of which the different parties can take the information they need with a guarantee of confidentiality," Mr Guinier told LLOYDS List." LLOYDS LIST, 6 October 2011, p 5 Preventing loss of propulsion after fuel switch to low sulphur distillate fuel oil By Jeff Cowan The California Air Resources Board (ARB) created regulations for vessel emissions reductions for California waters as part of its continued mission to improve air quality around the state. The new requirements came into effect in July 2009. Following the implementation of the regulations, California witnessed a 100% increase in loss or propulsion (LOP) incidents within state waters during 2009. Captain Cowan looks in detail at the causes of these incidents, and at the measures that should be taken to avoid them. SEAWAYS, October 2011, pp 11-13 BIMCO urges owners to shun EEDI waiver - By Craig Eason "BIMCO is urging shipowners to shun the waiver on applying the energy efficiency design index to new tonnage, while offering help in calculating it. The International Maritime Organization's EEDI will become a mandatory calculation of a newbuilding's designed efficiency, and contribution to CO2 emissions, as of the beginning of 2013. It was agreed by vote at the marine environment protection committee, but was given a political waiver that allows owners to opt out of using it for a short period. BIMCO has welcomed the EEDI and has joined a growing number of industry organisations urging owners that wish to build new ships, not to use the waiver." LLOYDS LIST, 7 October 2011, p 5 Maersk puts scrubber to the test "A demonstration scrubber unit is to be installed on a Maersk Line container ship under an agreement between the Danish operator and US-based Belco Technologies a subsidiary of the DuPont group. The agreement could be seen as a setback by those who have been pushing hard for more expensive, but supposedly cleaner, LNG to become the main fuel for marine use. Under the agreement, Belco will design, manufacture and supply the BELCO advanced marine scrubbing system for demonstration on one of the auxiliary engines of the Maersk Taurus. If the demonstration proves successful, the system will be designed to remain on board as a commercial installation." FAIRPLAY SOLUTIONS, October 2011, p 5 Milford Haven trials 3D VTS system - By Craig Eason "Increased situation awareness could help in accident prevention and incident analysis. Vessel traffic services in the UK port of Milford Haven have been given access to one of the first three-dimensional displays to test. Operators have begun trialling the new concept, which aims to give a more accurate representation of what is happening in the tricky waters of the harbour, which is the UK's busiest liquefied natural gas terminal and large oil terminal. The system has been installed to establish whether its clarity of presentation and viewing versatility can enhance the operators' situation awareness within the harbour and its approaches. One of the features is the system's ability to combine transmitted data from a vessel and the VTS radar system to give near real-time interpretation of ship movements on the screen." LLOYDS LIST, 11 October 2011, p 7 EEDI targets for tankers and bulkers will be easy to achieve - By Craig Eason "Designs for bulk carriers and large tankers over the past 20 years have played into the hands of economists, and away

from the goals that a marine architect would want. There is evidence, according to Danish Technical University senior lecturer Hans Otto Kristensen, to suggest that as ships got bigger over the past two decades, their design criteria was not adjusted in the right direction. This trend has been in the opposite direction to where the newly mandated Energy Efficiency Design Index will drive ship design. Mr Kristensen believes it will be very simple to reverse this trend if naval architects apply the EEDI and not the whims of the economists." LLOYDS LIST, 11 October 2011, p 7 Wartsila and Shell Oil join forces Solutions provider Wartsila and Sell Oil Company have signed a Joint Co-operation Agreement aimed at promoting and accelerating the use of liquefied natural gas (LNG) as a marine fuel The agreement was signed in August 2011 and will run for several years. Supplies of low cost, low emissions LNG fuel will be made available to Wartsila natural gas powered vessel operators, and other customers by Shell. MER, October 2011, p 6 Devil is in the detail for implementing EEDI - By Steve Matthews "Adoption by the IMO's Marine Environment Protection Committee in July of the Energy Efficiency Design Index for new vessels, as well as the Ship Energy Efficiency Management Plan for all vessels, as preferred technical methods of reducing carbon dioxide emissions has been widely welcomed by the shipping industry, although the IMO vote was not unanimous. The EEDI is seen as a practical tool for cutting emissions and demonstrating the industry's commitment to reducing greenhouse gas emissions. However, now the initial relief has passed, attention is turning to some of the outstanding questions and detailed work on how to implement the new rules. There are still voices expressing scepticism about how the EEDI will operate, its practical effects and wider implications." LLOYDS LIST, 17 October 2011, p 4 Energy efficiency at a glance - By Steve Matthews "IMO MEPC.62 adopted in July 2011 amendments to Marpol Annex VI incorporating the EEDI for newbuild vessels and the ship energy efficiency management plan for all vessels. They are expected to come into force in January 2013. The regulations apply to all ships of 400 gt and above. Ship types included: bulk carriers; gas carriers; tankers; containerships; general cargo ships; refrigerated cargo carriers; combination carriers. Ro-ro and passengerships are not currently included but could be added later. EEDI does not apply to ships with diesel-electric, turbine or hybrid propulsion systems." LLOYDS LIST, 17 October 2011, p 4 Class wants EEDI clarity The energy efficiency design index (EEDI) has received backing from the International Maritime Organization (IMO) as an industry tool for the reduction of CO2. But outstanding questions remain. The International Association of Classification Societies (IACS) voices its concerns. NAVAL ARCHITECT, October 2011, p 22 BIMCO EEDI calculator "BIMCO released its Energy Efficiency Design Index (EEDI) Calculator last week following verification tests of its results. The release came three weeks after the 22nd meeting of the organisations Marine Committee, which discussed the implications of the recently-adopted amendments to MARPOL Annex VI which imposes an EEDI to new ships built after 1st January 2013. It developed the calculator in response to members queries on how to apply the calculation methodology contained in the IMO Circular MEPC.1/Circ.681. That guideline, however, is still being reviewed by MEPC and BIMCO says it will issue updated versions of its calculator when amendments are published." FAIRPLAY, 27 October 2011, p 28 Regulation and innovation for a sustainable future The International Chamber of Shippings (ICS) recent statement defending the Energy Efficiency Design Index ( EEDI) against critics who have pointed out a potential weakness in the standards sends a strong signal that shipping industrys various stakeholders are becoming increasingly impatient with those looking to delay regulation. TANKER OPERATOR, October 2011, p 8 INTERNATIONAL MARITIME ORGANIZATION (IMO) 2009 Modu Code : Code for the construction and equipment of mobile offshore drilling units, 2009. London : IMO, 2010 (IMO-I810E). Language(s): ENG, FRE, SPA. (ISBN 978-92-801-1525-3)

MARITIME SAFETY
London Club warns on DRI cargoes "The dangers of direct reduced iron (DRI) cargoes and attempts by shippers to avoid mandatory requirements are highlighted by the London P&I Club in the latest issue of its StopLoss Bulletin. Concerns about the carriage of DRI particularly the possibility of a chemical reaction between the cargo and water, leading to the risk of fire and explosion prompted the introduction of provisions for the carriage of DRI in the International Maritime Solid Bulk Cargoes (IMSBC) Code." FAIRPLAY SOLUTIONS, October 2011, p 6

Safety before profits in Turkeys Bosporus " Turkish authorities recently closed the Bosporus to all sea traffic for five hours to carry out a drill simulating the rescue and clean-up operation following a collision between a tanker and a passenger ferry. According to the Hurriyet Daily News, four tugboats with fireextinguishing equipment, rescue ships, helicopters and professional divers all participated in the drill. The whole exercise involved 600 personnel and 500 student observers, as well as the countrys environment and urban-planning minister, Erdogan Bayraktar. 360 million tonnes of cargo pass through the Turkish strait annually, 143 million tonnes of which are classified as hazardous materials, and that in the past five years alone there have been a total of 141 accidents in the Bosporus." TRADEWINDS, 7 October 2011, p 34 UK harbour masters ask for ETV to be reinstated - By Roger Hailey "UK harbour masters have called on shipping minister Mike Penning to reinstate Emergency Towing Vessel provision in UK waters, saying that the withdrawal "poses an unacceptable risk to the safety of life at sea". In a letter to Mr Penning, expressing his "extreme concern", Harbour Masters' Association president Kevin Richardson referred to ETV cover for Scotland, in The Minches and from Stornoway, will be retained for a further three months. The Secretary of State for Scotland Michael Moore has confirmed that up to 3m ($4.7m) of interim funding will be provided from the UK government for replacement tugs in the Northern and Western Isles. Mr Moore said that funding will be delivered on an "exceptional basis" for three months to allow final attempts to secure a long-term replacement to continue." LLOYDS LIST, 11 October 2011, p 2 Launch the Ark "From a liability perspective, a ships' provisions for the wellbeing and security of its passengers has and always will be a primary concern. P&I insurers demand the highest level of protection on board to ensure, come hell or high water, passengers have a decent chance of survival. Trends for safety and rescue have evolved over the years from the humble raft to sophisticated procedures involving life jackets, dinghies, whistles and risk-assessed procedures. A new invention from Japan may be set to revolutionise ship safety and in turn perhaps push premiums down. It may look rather strange but Cosmo Powers' yellow safety capsule, dubbed a modern miniature version of Noah's Ark, can apparently survive any natural catastrophe, including a tsunami. The pod is large enough to hold four adults, floats in water and is made of enhanced glass fibre. There are breathing holes on top and even a small lookout window allowing people to enjoy the storm or whatever high seas drama that may be unfolding, snug and safe in this infallible pod." LLOYDS LIST, 17 October 2011, p 12 Enclosed spaces Until legislation is enacted covering purposeful training and dedicated equipment, the problems and accidents associated with entry into enclosed spaces will continue. SHIPPING WORLD AND SHIPBUILDER, October 2011, pp 32-33 Dynamic positioning station-keeping incidents decline - By David Osler "The number of recorded station-keeping incidents on dynamic positioning vessels fell from 111 in 2008 to just 77 in 2009, according to figures released by the International Marine Contractors Association. Although significant under-reporting may be a factor in the apparent decline, there does seem to be a genuine trend towards greater safety, IMCA insists. Meanwhile, it is requesting that details on any incidents in 2010 not already reported should be submitted as soon as possible. IMCA technical director Jane Bugler pointed out that annual station-keeping incident volume statistics can only be as complete as the data that member and non-member companies provide. All reports are anonymised and sent for approval to the contributing company prior to publication, she added." LLOYDS LIST, 18 October 2011, p 2 Salvage industry would fail to cope with major casualty - By Liz McMahon "Without greater investment, the current salvage system will be unable to cope with a mega containership casualty. Salvage experts have warned of the dire consequences that could result if ship design and technology continues to evolve but leaves the salvage trailing in its wake. Norton Rose partner David McKie said the current model buckled under APL Panama and even MSC Napoli and with shipping constantly evolving, the risks were only set to worsen. "History demonstrates - sometimes tragically - that advances in ship design and construction can seem fine at the concept, construction and even sea trial stage, but present real problems when the ships enter full service. However, casualty response lags behind advances in ship design and construction."" LLOYDS LIST, 26 October 2011, p 7

MARITIME SECURITY AND PIRACY

Spain to permit heavy-calibre machine guns on board ships - By David Osler "Spain has become the first flag state to approve the use of high-calibre weaponry by non-military vessels at risk from Somali pirates, in a move that has been greeted with incredulity across the private security sector. The ruling is obviously designed primarily to meet the needs of the commercial fishing fleet operating out of the Seychelles, which is the main Spanish maritime interest in the Indian Ocean region. The tripod-mounted 12.7 mm heavy machine guns now explicitly authorised are designed to destroy armour-plated vehicles

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and aircraft up to 1 km away, and some experts believe that they are operationally inappropriate in dealing with the threat posed by pirates." LLOYDS LIST, 3 October 2011, p 3 Nigeria and Benin team up to fight West Africa piracy - By David Osler "Nigeria and Benin have commenced joint naval patrols in a bid to take on the growing menace of piracy in west Africa. According to reports from Cotonou, around 100 military personnel from the two countries have been equipped with three patrolboats and four fast attack craft, which will operate out of the port city. This capability will be augmented by a support ship equipped with a radar and helicopter. Operation Prosperity - as the exercise has been dubbed - is expected to last for six months. Benin naval sources have told Agence France Presse that Benin will use this time as an opportunity to acquire its own antipiracy capability. In the meantime, the aim is to deter attacks rather than arrest their perpetrators." LLOYDS LIST, 3 October 2011, p 3 North P&I poised to vet armed guards - By Liz McMahon "The North P&I Club is to take independent action to vet armed maritime security providers on behalf of its members, despite the Security Association for the Maritime Industry offering formal accreditation. The club has joined forces with specialist maritime intelligence, investigation and crisis management company Gray Page to provide the service. SAMI recently announced its intention to offer the accreditation and licensing service to security firms but North P&I Club director Mike Salthouse said there was an inherent conflict in an industry association vetting its own members. "There is not sufficient distance," he said. "Most people would welcome SAMI as it is the closest thing we have got to an industry body, but there are not a lot of security firms out there." LLOYDS LIST, 3 October 2011, p 3 Pressure to deal with threat of piracy raises risk awareness for all - By Katrin Berkenkopf and Patrick Hagen "In January, broker Aon issued a stark warning to German owners about being "grossly careless" in dealing with the threat of piracy. Since then, the situation has changed dramatically. Risk awareness has risen with all parties involved, according to Olaf Flsch of Aon - a trend he attributes at least in part to pressure from insurers. "Our original attitude was that any kind of arming might lead to an escalation of the violence," says Karl-Gerhard Metzner of HDI-Gerling. "That is why we are very cautious in our dealings with the topic of armed forces. However, we then had to admit the situation had got out of hand and escalated anyway." Mr Metzner stresses he supports the call by German owners for sovereign forces on board. However, for the time being, owners will have to live with the possibility of employing private forces." LLOYDS LIST, 3 October 2011, p 4 Piracy threat prompts shift in Indian Ocean chartering patterns - By Eric van den Berg "The threat of piracy in the Indian Ocean has prompted a growing shift in trade patterns for dry bulk carriers, as ships are increasingly fixed by charterers from India's east coast to ballast down to South Africa to pick up coal cargoes, rather than being booked from the country's west coast. While ports on the Indian west coast are often hundreds of nautical miles closer to South Africa, increased insurance premiums and the high cost of armed protection have made trips to South African ports less costly from east Indian ports." LLOYDS LIST, 3 October 2011, p 9 Politicians unmoved by piracy 'nightmare' - By Nigel Lowry "The prospect of a mass refusal by seafarers to transit the Gulf of Aden is among four "nightmare scenarios" that could worsen the problems caused by pirate attacks in the region, according to International Maritime Organization secretary-general Efthimios Mitropoulos. Mr Mitropoulos said he had communicated his fears to UN secretary-general Ban Ki-moon about this and other nightmarish spectres - the capture of a passenger vessel, a major spill caused by a large laden tanker while in pirate hands, and a widespread deviation by maritime traffic around the Cape of Good Hope. However, he said unions and governments of countries supplying maritime labour had been very responsible. "They will not take that decision lightly," said Mr Mitropoulos. "They realise how important this is for world trade."" LLOYDS LIST, 4 October 2011, p 1 Nato anti-piracy chief warns of renewed attacks - By David Osler "Somali pirates are gearing up to renew their activity now that the monsoon period is drawing to a close, according to the head of Nato antipiracy naval forces in the Gulf of Aden, writes David Osler. Netherlands navy Rear Admiral Hank Ort, who is chief of staff at Maritime Command Northwood in suburban London, said that pirates have typically been forced to suspend operations because of prevailing wind and rain patterns in the region in summer. But when the southwest monsoon weakens in early October, they are once again able to put to sea, with the result that the number of attacks on merchant vessels increases. He has warned shipping in that area to be on guard." LLOYDS LIST, 6 October 2011, p 5 Piracy solutions By Steven Jones With just under 400 seafarers currently held as hostages, and 18 hijacked ships (plus barges and fishing vessels) held for ransom much is heard of the problems of piracy. Until now sensible solutions were rarely heard, but finally there are signs of progress, as four key nations

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have unveiled some radical proposals and changes to their anti-piracy strategies. SEAWAYS, October 2011, pp 6-7 SAMI appoints NSI to vet armed security - By Liz McMahon "The security Association for the Maritime Industry has revealed that the National Security Inspectorate will act as its independent assessor of security organisations. The body said accreditations would begin in early November and it is expected that the entire process will take between four to six months, depending upon the size of the company. "Insurers want to see a track record and that is a very healthy way of looking at things," said SAMI founder Peter Cook. "We need to prove ourselves and I have spoken to a number of people in the Lloyd's market and have had a great deal of encouragement but the message is clear that they are waiting to see what we can do and we welcome the scrutiny. I would expect that within a year our status will be established. SAMI wants to blow away the smoke and mirrors and focus on transparency, integrity and clarity." LLOYDS LIST, 10 October 2011, p 2 Naval support for anti-piracy fight in Gulf of Aden to fall - By David Osler and Liz McMahon "The number of naval assets tackling piracy in the Gulf of Aden and the Indian Ocean is set to drop sharply by the beginning of 2012, as austerity policies in many countries inevitably lead to big reductions in military budgets. In addition, continuing tensions in the Middle East have seen some warships pulled away from counterpiracy work close to Somalia and reassigned to the Mediterranean to undertake duties related to the Libya conflict, private security and insurance sources have told Lloyd's List. Representatives of both European Union deployment EU Navfor and Nato admitted that the existing assets were under strain, but were quick to reject the suggestion that drastic cuts were in the offing." LLOYDS LIST, 11 October 2011, p1 Owners call for co-ordinated piracy approach - By Craig Eason "Shipping executives will meet European parliament members this week to propose that the European Union takes the lead in tackling Somali piracy, as European shipowners push Brussels to do far more in the battle against piracy. Greek MEP Georgios Koumoutsakos and Peter van Dalen of the Netherlands will be hearing from the International Maritime Organization, the European Community Shipowners' Association and Rear Admiral Canova from Operation Atalanta, among others. Danish Shipowners' Association vice-president Jan Fritz Hansen is chair of a piracy working group that has been set up by ECSA. While he recognises the work being done by various naval forces in the waters off Somalia, either individually or part of co-ordinated efforts, he is among a growing number of people who think that this is not enough to solve the problem. He said the various political and legal bodies within the auspices of the EU should be brought together to work on a permanent solution." LLOYDS LIST, 11 October 2011, p 2 UK and US forces free hijacked Montecristo - By David Osler and Tom Leander British and US naval forces have today boarded and recaptured a brand new Italian supramax hijacked by Somali pirates on Monday, the Italian foreign ministry has confirmed. Some 11 pirates were detained as a result of the operation. Security sources confirmed that an unarmed vessel protection detachment was on board, and that citadel tactics had been adopted by the crew. LLOYDS LIST, 12 October 2011, p 2 Shipping 'at end of our tether' on piracy, says ICS - By Tom Leander International Chamber of Shipping chairman Spyros Polemis issued a stern warning to pirates that the industry "was at the end of its tether and that any act of piracy will be severely dealt with", in a speech at the India Shipping Summit in Mumbai on Tuesday. Mr Polemis warned that the piracy season was about to begin now that the Indian Ocean monsoons were on the wane and noted that Indian seafarers had "paid a high price" with some hostages held for 18 months. LLOYDS LIST, 12 October 2011, p 5 UN naval task force needed to fight piracy - By Liz McMahon. A campaign is being drawn up to push for a UN Navy Task Force to patrol the coast of Somalia due to the perceived lack of co-ordination from individual states. Sarosh Zaiwalla, permanent member of the International Maritime Organization representing the island nation of Comoros, said it was his intention to force this issue with the UN Security Council at the IMO's general meeting in November. He said that he would also like to see one of the countries with a permanent seat on UN Security Council, most notably the UK, to move a resolution from within the Security Council to establish the task force. LLOYDS LIST, 12 October 2011, p 5 Piracy threat eats away at tanker daily earnings - By Hal Brown Piracy attacks have caused the number of large oil tankers transiting the Suez Canal to plummet more than 50% in three years, eroding owners' daily earnings as they burn more bunker fuel to travel a longer, safer route. Increased risks of piracy in the Gulf of Aden and Red Sea, which leads into the Suez Canal, have caused shipowners to prefer to travel from the Middle East Gulf around Africa's Cape of Good Hope, according to fresh analysis from the research department of shipbrokers Poten & Partners. LLOYDS LIST, 12 October 2011, p 8

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Where will pirates go next? - By Tom Leander Somali piracy is organised crime. Its durability suggests that it is also a successful business model, and because it operates outside the law does not make it less of a going concern. Piracy has not stopped growing as shipping adapts to better defensive measures, an indicator that as a model it is responsive and flexible, much in the way companies innovate, enter new territory and make new alliances in response to a change in market conditions or heightened competition. LLOYDS LIST, 12 October 2011, p 12 UK U-turn on armed guards lifts threat of prosecution - By David Osler and Craig Eason "Britain is set to drop its formal opposition to the use of private armed guards on board UK-flagged vessels, finally lifting the threat of prosecution for shipowners who have been operating within a legal grey area. The news comes after Italy's defence ministry went one step further and agreed to provide armed forces on Italian ships passing through the Gulf of Aden. UK Foreign Office minister Henry Bellingham confirmed in a speech delivered at the Chamber of Shipping in London on Wednesday that the policy switch would be formally announced shortly, in effect reversing previous government advice which "strongly discouraged" armed vessel protection detachments." LLOYDS LIST, 13 October 2011, p 1 EU urged to create combined military piracy taskforce - By Craig Eason "The European Parliament is being urged to create a new series of counter piracy measures including the establishment of a multinational military unit and financial investigation team to track ransom payments. The initiative is being pushed by MEPs Peter van Dalen of the Netherlands and Georgios Koumoutsakos of Greece. The European Community Shipowners Association and the European Transport Workers Federation welcomed the heightened political interest, urging the parliament to give the go-ahead to co-ordinate the various EU organisations to find the political, military, legal and humanitarian solutions to the problem." LLOYDS LIST, 13 October 2011, p 1 Venezuela drug bust marks new high in seizures - By David Osler "A Bernhard Schulte -managed bulk carrier and a number of seafarers have been detained in pre-trial custody in Venezuela following the discovery of 478 kg of uncut cocaine on board the 1997-built, 48,224 dwt Jrgen Schulte, a spokesman for the company has confirmed. Financial director Sebastian Graf von Hardenberg stressed that while the company acknowledges the find and is co-operating with the authorities, it believes all of its employees to be innocent and it has hired legal representation to fight their corner. However, the development has once again highlighted the use of merchant vessels for narcotics smuggling, which has sharply increased in 2011, according to preliminary figures compiled by Lloyd's List Intelligence." LLOYDS LIST, 14 October 2011, p 2 Urgent call to take back Indian Ocean - By TradeWinds staff Mumbai "The chairman of the International Chamber of Shipping says India has ceded control of the Indian Ocean to pirates. International Chamber of Shipping (ICS) chairman Spyros Polemis made an impassioned plea to delegates at the India Shipping Summit in Mumbai. Piracy must stop now. We have reached the end of our tether, he said. Urging the Indian Navy to yet greater efforts, he called on it to focus on inhibiting the activities of motherships. He laments the fact that a coherent strategy to tackle the problem was still lacking. Governments dont like it when we say this but the reality is that they have ceded control of the Indian Ocean to pirates, he said." TRADEWINDS, 14 October 2011, p 29 Cyprus and Italy up fight against piracy - By Gary Dixon "Italy and Cyprus are set to become the latest countries to put armed guards on ships flying their flags in the fight against piracy. Cypriot media said the government is preparing its first draft legislation this week. The move is significant as the island has the third-biggest fleet in the European Union (EU) and ranks tenth in the world, as well as having a big shipmanagement presence. Of the 200 to 300 piracy [incidents] that take place every year, only two Cyprus-flag ships have been hijacked by pirates and both were released one [was released] last week after being held in the eastern Atlantic, off the coast of Nigeria and Benin, said Serghios Serghiou, director of the department of merchant shipping, to reporters. We are in the same situation as all the other maritime nations. We cannot rely on navies to protect ships all around the world." TRADEWINDS, 14 October 2011, p 29 UK and US forces storm Montecristo - By Andy Pierce "Special forces have stormed a DAlesio newbuilding that was widely feared hijacked off Somalia. UK and US forces captured 11 pirates in an operation that has been praised by Italian officials. Pirates attacked the 55,600-dwt bulker Montecristo (built 2011) and clambered on board on Monday but the crew of 23 took refuge in a citadel while two warships raced to the scene. Accounts of the incident suggest the forces did not encounter any resistance from the gang when they boarded the vessel. The Italian Foreign Ministry said in a statement that it felt a deep satisfaction following the operation." TRADEWINDS, 14 October 2011, p 29 Armed guards a must in danger zones to stop pirates striking, says victim of violent Somali bandits - By Adam Corbett "Chirag Bahri, a former second engineer on the 13,300-dwt chemical tanker

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Marida Marguerite (built 2008), has told how he dreamed of death during his eight months in captivity living under drug-crazed Somali pirates. He has joined a campaign to have armed guards protecting vulnerable ships and for the industry to bring in regulations on the care of seafarers and their families during and after a hijacking. Bahri is supporting Maritime Piracy a Humanitarian Response (MPHRP), a new Seafarers Trust-backed organisation set up to help the victims of piracy." TRADEWINDS, 14 October 2011, pp 42-43 Pirate focus on crews will force P&I clubs to pay ransoms - By Liz McMahon "The trend for pirates separating crews from vessels, taking them onshore and holding them to ransom is set to worsen and will force the P&I market to adopt a more significant role in the provision of piracy cover. There has been a long and heated debate over whether the P&I clubs should contribute to the general average of ransom payments. If pirates continue to hold crews separately clubs will need to step in as they cover the usual P&I liabilities arising out of piracy incidents, such as claims for loss of life, personal injury and stress and trauma following attacks and hijackings. International Group of P&I Clubs executive officer Andrew Bardot confirmed that in situations where the crew was taken ashore and a separate ransom demand made for their release, P&I Clubs could become involved." LLOYDS LIST, 17 October 2011, p 1 Maersk to employ armed guards - By David Osler "AP Moller-Maersk will make more regular use of armed guards on tankers passing through the Gulf of Aden, the company has confirmed. However, there are "no immediate plans" to extend the policy to containerships, Maersk Tankers chief technical officer Steffen Jacobsen added. It remains unclear which contractor is likely to pick up the work, with security industry sources suggesting that it will probably have to be divided between several providers. The world's largest shipping concern has seen attacks on a number of its ships, most famously on boxship Maersk Alabama , but has previously employed guards only on an ad hoc basis. But following an assessment of its experiences so far, it has decided to adopt the step more often, especially on vessels that are slow, have a low freeboard." LLOYDS LIST, 17 October 2011, p 2 ICS chief backs Indias piracy action "The International Chamber of Shipping has been particularly impressed by the seriousness that the Indian government has afforded [piracy] and the willingness of the Indian Navy to act robustly against the pirates, said its chairman, Spyros Polemis, at last weeks India Shipping Summit in Mumbai. India and its seafarers have truly been in the firing line, he added. But he urged the Indian Navy to do even more, calling on it to focus on inhibiting the activities of motherships within 300 miles (480km) of the Indian coast since this provides a relatively safe route for ships to and from the Gulf of Aden to the Arabian Sea and beyond. The pirates must get the message that we have reached the end of our tether and that any act of piracy will be severely dealt with, he said." FAIRPLAY, 20 October 2011, p 23 Insurers offer discounts for armed guards - By Liz McMahon and David Osler "A number of kidnap and ransom insurers are demanding the presence of armed guards on vessels transiting the Gulf of Aden and the Indian Ocean before they will provide cover, and others are offering discounts of up to 35% to shipowners employing private security firms for voyages in high-risk areas. For an average vessel valued at $20m, the starting price for a policy is in the region of $35,000 for a seven-day transit of the Gulf of Aden. With armed guards on board and a K&R policy in place, a discount of 35% would represent a saving of $12,250. While no insurer was prepared to confirm they were offering such discounts or requiring the use of armed guards when underwriting policies, some told Lloyd's List they offered some form of discount on the war rate for vessels transiting pirate hotspots." LLOYDS LIST, 21 October 2011, p 1 Stop paying pirates, Puntland president pleads - By Richard Meade "Shipowners paying ransoms to pirates are unwittingly supporting the Islamist group al-Shabaab, according to the President of Puntland State of Somalia, Abdirahman Mohamud Farole. Speaking in London, President Farole issued a strong condemnation of pirates operating within Somalia but advised the only way to completely stop vessels being hijacked was to stop paying ransoms. Pledging support to Somalia's embattled Transitional Federal Government, President Farole said his government would continue to fight piracy with the meagre resources at its disposal but demanded that ransom payments to pirates should stop immediately. He added that he is lobbying internationally to ensure that ransom payments are made illegal. "If we stop the ransom payments we will eradicate the problem," he told the meeting held at Chatham House." LLOYDS LIST, 21 October 2011, p 2 Shipping turns a blind eye to human cost of piracy - By Craig Eason "The international shipping community is being accused of ignoring the plight of seafarers held in captivity after their vessels are captured off the Somalia coast. The Maritime Piracy Humanitarian Response Programme has been launched with funds from a number of maritime organisations, including the TK Foundation. MPHRP chairman Peter Swift said more needed to be done to push awareness of the trauma facing crews once they are hijacked." LLOYDS LIST, 24 October 2011, p 1

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Four months in the hands of Somali pirates - By Craig Eason "The previously untold experiences of the crew of the bulk carrier Renuar, held captive for 133 days, are typical of those of other ships held captive, some for over a year. Renuar master Calixto Caniete had to hold a stoic front before his crew to ensure they were led through the ordeal safely. When the pirates got on board, they were angry, both at having taken so long to capture the ship, and because they claimed one of them had drowned falling off a ladder they tried to use on the stern of the ship. The crew were corralled on to the ship's bridge, beaten, and told to sail towards the Somali coastline, beginning four month's of torture and fear as the vessel's owner began ransom payments. Surprisingly for the captain, the pirates knew how to use the satellite communication equipment on board and would take photographs of the crew and send them off to the ship's owner to show how serious they were about their ransom demands." LLOYDS LIST, 24 October 2011, p 2 Crews refuse to sail through Indian Ocean - By Craig Eason "Crews are demanding to leave vessels about to transit the region if the owner has not been prepared to put a security detachment on board. One Swedish officer who recently stepped off a vessel about to transit the region told Lloyd's List, on conditions of anonymity, that he was fearful for his life. He was working on a slow vessel with a very low freeboard and the European shipowner had decided not to spend money on hiring a security detachment despite doing a risk assessment. The shipowner comes from a European flag state that has made it clear that armed security is permitted under the right circumstances. The vessel the officer worked on board, and hopes to return to in a few weeks, is run by a company that had never had to send a vessel through the piracy risk zone. The risk assessment was done too late, and with a predetermined conclusion, the officer claims." LLOYDS LIST, 24 October 2011, p 2 Calls for transparency over use of armed protection - By Craig Eason "As more owners seek the services of armed security, there have been calls for more transparency about their use amid growing concerns over an escalation of violence or an incident where an unarmed civilian or seafarer is injured. International Transport Workers Federation secretary Jon Whitlow said many crew members were welcoming armed security as they felt more secure in their presence, but there was an industry-wide belief that crews themselves should never be armed. Renuar master Calixto Caniete, in revealing his experiences of being hijacked by pirates told Lloyd's List the pirates that held him captive had told him at one point they would never have continued their attack on his ship had they been fired on themselves. But despite the increased assurances that armed security gives crews, Mr Whitlow said some flag states needed to be further encouraged to develop standards and rules for the engagement of armed security." LLOYDS LIST, 24 October 2011, p 2 A third of pirates die in action - By Liz McMahon "A third of all pirates in Somalia who set out on attack missions in the Gulf of Aden and the Indian Ocean never return to shore. A source from the international counter piracy community told specialist intelligence company Exclusive Analysis that the attrition rate for Somali pirates was high. Latest figures show that 30% of those who go out to sea never return home. A letter dated January 24, 2011, from the UN secretary-general Ban Ki-moon to the president of the United Nations Security Council said that, according to the UN Office on Drugs and Crime, 200-300 pirates had not returned from their expeditions since the resurgence of the phenomenon and their families were being abused by pirate gang leaders who lied to them and said that the pirates have settled in Europe or elsewhere." LLOYDS LIST, 24 October 2011, p 2 Pirates release Iceberg 1 after six months - By David Osler "Somali pirates have released Panamaflag ro-ro Iceberg 1, held since March 2010, according to private security sources active in the Gulf of Aden. It is not yet clear whether a ransom was paid. The vessel is believed to be carrying a crew of 25, although the health and well-being of the seafarers could not be ascertained. According to the Lloyd's List Intelligence database, the 1976-built, 5,402 gt vessel is associated with a Dubai company Azal Shipping & Cargo . Contact details for Azal were not immediately available. Meanwhile, the UN Security Council has unanimously adopted a resolution proposed by 11 of its members, which includes a proposal originally raised by India that pirates should be prosecuted not just for piracy but for hostage taking as well." LLOYDS LIST, 26 October 2011, p 2 Nato boss says piracy commitment subject to resources - By Steve Matthews "Nato's Supreme Allied Commander in Europe, US Navy Admiral James Stavridis, has confirmed the organisation's commitment to combating piracy off the coast of Somalia subject to the available resources at its disposal. In a letter to the International Transport Workers' Federation in response to its concerns, Adm Stavridis said: "I can guarantee the Nato task force uses all its means to limit the freedom of movement to the Pirate Action Groups in the area." While stressing the military action at sea being conducted by several coalitions "only address the symptoms of a wider problem", Adm Stavridis said: "We are doing as much as we can with the assets the Nato members have allocated to the Nato counter-piracy task force. With other military coalitions, Nato warships put pressure on the identified strongholds of pirates along the coast of

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Somalia and intend to continue while the monsoon season is abating."" LLOYDS LIST, 27 October 2011, p2 What price piracy? - By Miriam Fahey "The costs of piracy borne by the global economy were recently declared to be $12Bn by a host of industry figures speaking at recent news conferences. Yet an eminent lawyer told an audience at Londons Cass Business School this figure was unquantifiable. The truth is that working out these global economic costs are a murky area for any statistician. The disputed figure first appeared in a paper produced by US think-tank One Earth Future Foundation, quoting piracys annual global economic costs somewhere between $7Bn and $12Bn. The paper was impressive: the estimates put insurance premiums at the top of the list of costs, in the range $460M-$3.2Bn." FAIRPLAY, 27 October 2011, p 26 Piracy season restarts with end of monsoon Deepsea Somali pirate activity is expected to increase as the monsoon season wanes and sea conditions improve. As SASI went to press, attacks had been recorded in Arabian Sea and as far south as the Mozambique Channel. On 29 September a chemical tanker was attacked 500nm east of Socotra around an hour before sunset with the sea state at 3-4. When a single skiff approached the vessel, the master sounded the alarm and began evasive manoeuvres. This is the first pirate activity in this area since Caravos Horizon was attacked on 12 June, maritime security analyst Dave Sloggett explained. SAFETY AT SEA INTERNATIONAL, November 2011, p 12 Terror threat to ships A senior British police official based in the Gulf has warned shipping lines that their operations in the region could be disrupted by increasingly sophisticated terrorists seeking new economic targets. Al-Qaeda already has shown a capability to attack shipping. There is a worrying trend round here for waterborne terrorism, Mark Moles, detective chief inspector with Counter Terrorism Unit of the UKs Metropolitan Police, told a recent security conference in Dubai. SAFETY AT SEA INTERNATIONAL, November 2011, p 13 Pirates reach Mozambique Channel Recent pirate activity in the Mozambique Chanel has prompted Neptune Maritime Security to issue a notice to its shipping partners transiting the area. In the attempted st, attack on September 21 the report said that the crew of a containership underway at position 12:46.6S046:18.5E spotted two skiffs at 0643UTC, with three to four people aboard each skiff at a distance of about 1.5 miles. The skiffs increased speed to around 18 knots and approached the vessel from different sides. The vessel carried out evasive manoeuvres and enforced anti-piracy measures which led to the skiffs breaking off their pursuit after about 25 minutes. The second attempted attack two days later, took place at 0850 UTC, when a bulk carrier underway at position 12:16.1S-043:19.5E noticed two blue-coloured skiffs at a distance of around 1 mile. The master raised the alarm and alerted the armed security team. Two attempts in the area in a matter of days must raise concerns, Neptune said. TANKER OPERATOR, October 2011, p 6 Greeks warn US of trade 'havoc' in piracy fall-out - By Nigel Lowry "Greek shipowners have warned of havoc on vital international seaborne trades if piracy is not curtailed more effectively. The message was spelt out "in no uncertain terms" by a delegation of Greek owners who visited Washington earlier this month, meeting rulemakers and officials including US Secretary of Transportation Ray La Hood. A source close to the trip, which took place under the auspices of the Union of Greek Shipowners, said: "They understand the implications if the transport chain is disrupted, which obviously it may be if seafarers are not willing to go into the Indian Ocean, for example. The disruption would cause havoc." One owner told Lloyd's List: "There is a tendency in the US to think piracy in the Indian Ocean has very little to do with them. But they understand the implications for trade and we also pointed out the mounting cost of piracy to the American consumer."" LLOYDS LIST, 31 October 2011, p 2 Piracy forum calls for robust response - By Craig Eason "There are signs the piracy problem is climbing higher up the political agenda. It comes as many maritime organisations are calling for a more robust and co-ordinated response to piracy. A meeting of Commonwealth heads of state in Perth, Western Australia, has been used to create a piracy forum, with countries making stronger commitments to increase anti-piracy efforts. Australian foreign minister Ken Rudd and the European Union high representative for foreign affairs Catherine Ashton were among diplomats who led the forum, which was also attended by representatives of Commonwealth countries and Indian Ocean rim countries. While the forum endorsed the efforts of the UN Security Council, it said the emphasis must be on regional antipiracy action." LLOYDS LIST, 31 October 2011, p 2 Shipowners 'double claiming' for attacks - By Liz McMahon "Shipowners could be committing fraud by double claiming for pirate attacks due to perceived lack of clarity over where they should be making their claims. Marine investigator and consultant John David, who advises on marine claims, said he had seen "evidence of double book keeping as some policies are so daft and wide that shipowners make the

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same claim from different policies". "They are not sure who should pay for crew repatriation so they sling it into all pots and then work out that they have been paid by all their insurers," he said. "There is confusion over when all insurers start and stop paying."" LLOYDS LIST, 31 October 2011, p 2 Law enforcement sets sights on Somali money launderers - By Eric van den Berg "With more than $400m in ransom money thought to have been poured into Somalia so far, pirate money laundering is becoming big business. According to estimates published by the Financial Action Task Force on Money Laundering, a Paris-based intergovernmental body, 40% of ransom payments could be finding their way out of the war-torn country. There is growing evidence that money is being invested in the conventional economy of surrounding nations. Some sources have even claimed a property boom has taken off in Kenya, as pirates pour money into local property. In response to the growing number of reports of pirate money laundering, global law enforcement has now stepped up its game to target pirates where it hurts in their wallets. ." LLOYDS LIST, 31 October 2011, p 4 INTERNATIONAL MARITIME ORGANIZATION (IMO) Piracy armed robbery against ships in waters off the coast of Somalia. London : IMO, 2011 (IMO Doc. MSC.1/Circ.1339) INTERNATIONAL MARITIME ORGANIZATION (IMO) Questionnaire information on port and coastal state requirements related to privately contracted armed security personnel on board ships. London : IMO, 2011 (IMO Doc. MSC-FAL.1/Circ.2)

NAVIGATION AND COMMUNICATIONS

Age of the iPad pilots arrives - By Craig Eason "Trials of a new enhanced portable pilot unit that can run off an iPad have been completed in Dublin Port. The tests are part of the Brussels-funded Safeport project being co-ordinated by UK consultants BMT. The unit has been developed to use advanced satellite communications to ease vessel traffic management. Safeport is looking at being able to deliver more accurate, secure and reliable navigation and positioning information to the onboard pilot to ensure safer and more efficient navigation and berthing. It also recognises the reduced level of manning on board many vessels and the increased lack of experience these crews have - issues that could make it even more necessary for pilots to be able to rely on their own equipment." LLOYDS LIST, 4 October 2011, p 7 Back to basics on the bridge By Rod Short Technology has had a great impact on marine navigation but it can lead to increased complacency and higher risk of accidents. Is it time to get back to basics? Rod Short looks at the consequences of relying too far on the screen, at the expense of the senses and a common sense. SEAWAYS, October 2011, pp 14-15 Galileo satellites are set to go "Two satellites needed to establish the Galileo satellite-navigation system are ready for launch this month. Early last month the European Commissions technical agent, the European Space Agency (ESA), formally took delivery of the first satellites from industry in the shape of a paper exercise known as a qualification acceptance review. This means the satellites have passed all inspections and ground tests and are ready to begin their 12-year lifespan in space. The satellites will be launched from the new Sinamary spaceport in French Guiana on a Russian Soyuz rocket on 20 October." FAIRPLAY SOLUTIONS, October 2011, p 6 Open source software to aid e-navigation development - By Craig Eason "An open source software program is being created to assist in the development of e-navigation. As shipowners struggle with the concept of ever more complex and expensive navigation and communication technology on board their vessels, there has been a drive to ensure that all the pieces of equipment will at least be able to link with each other without having a bespoke and complex array of tools that will translate data. E-navigation is a holistic concept being pushed by maritime bodies such as the International Maritime Organization and the International Association of Marine Aids to Navigation and the Lighthouse Authorities. The key objective is to improve safe navigation, although some critics have commented on its slow pace of development and unfocused definition." LLOYDS LIST, 11 October 2011, p 7 E-navigation has a long way to go - By Craig Eason "Project managers and developers of potential enavigation systems are keen to reassure shipowners that the costs associated with ever more technical bridge equipment will not be restrictive. E-navigation became a buzzword at the International Maritime Organization at the same time e-maritime did within the European Commission. Both ideas, originally nebulous and vague, have the overarching goal of bringing together the various navigation and communication tools that link ship to shore, ship to ship, and various shore organisations to each other. Over the past three years there has been more clarity about what e-navigation is likely to mean to

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shipowners facing the growing demands of modern bridge management." LLOYDS LIST, 19 October 2011, p 4 Aviation offers pointers but change must address seafarers' needs - By Craig Eason "If shipowners want an idea of how e-navigation might work, they should look at the aviation industry. The technical brains behind the development of the systems, standards and integration have been exploiting the interface between air traffic control and the airline pilot, saying there are clearly some elements of this that can be translated for the shipping industry. Norwegian chart system firm and e-navigation development specialist Jeppesen is part of airliner manufacturer Boeing Group. Head of maritime development Michael Bergmann believes there are many lessons that can be taken from the aviation industry's adoption of modern navigation tools." LLOYDS LIST, 19 October 2011, p 4 Weather routing optimisation challenges and rewards By Gershanik The existing practice of whether routing has been analysed, as well as the problems of creating a rational ship route optimisation technique. The principal preconditions for successfully solving this complex optimisation problem are explained. A formalised technique has been developed for creating rational ship routes based on a local climatic database, intended to reduce the time needed to formulate weather scenarios during a voyage simulation exercise. It is based on the combined use of analytical geometry and features of computer graphics. An algorithm is presented for optimising a ships route based on using principles of dynamic programming. JOURNAL OF MARINE ENGINEERING AND TECHNOLOGY, September 2011, pp 29-40

POLLUTION/ENVIRONMENT
Denmark's ballast water convention ratification reports 'wrong' - By Craig Eason "Contrary to earlier reports, both from within the International Maritime Organization and in LLOYDS List, Denmark has yet actually to ratify the Ballast Water Convention, writes Craig Eason. Reports of the country's ratification making it the 29th of a required 30 countries - were wrong, according to sources in the Danish Ministry of the Environment. There appears to have been a mix-up in information getting to the IMO from the Danish government. A spokesperson from the Ministry of the Environment confirmed while a Bill has passed unanimously through parliament, there remain some small legal issues to be resolved. He insisted the problem was not a big one that has derailed the ratification, though he declined to give an idea of how long the issues would take to be resolved." LLOYDS LIST, 4 October 2011, p 7 Owners are storing up ballast water problems - By Craig Eason "The first of the two requirements for the ballast water convention to come into force has now been met, but owners are still reacting slowly to their need to install treatment systems. The convention has finally been ratified by 30 member states of the International Maritime Organization. It requires a minimum 30 states representing a minimum 35% of the global fleet to have ratified it in order for it to come into force a year later. It has now been ratified by landlocked Mongolia and the Pacific island state of Palau, but neither has a significant percentage of the world's tonnage. The convention still needs flag states representing 8.6% of the world's gross tonnage to sign for both convention requirements to be met. There are two flag states that have yet to sign the convention that could push the percentage to the required level on their own: China, which includes Hong Kong flagged vessels, and Panama." LLOYDS LIST, 6 October 2011, p 5 ITOPF to fund oil spill R&D - By Craig Eason "Up to 50,000 ($77,000) of research money is to be provided annually by the the International Tanker Owners Pollution Federation as it targets qualified studies aimed at reducing environmental damage. The London-based organisation said it wants to encourage innovative thinking and provide new realistic solutions to some of the challenges of responding to accidental oil and chemical spills and undertaking environmental monitoring. Award cash will be made available twice a year for any organisation or research and development establishment worldwide and will be awarded by an independent panel. ITOPF managing director Karen Purnell said it is important for ITOPF to be seen to be impartial in the application of the funds, but important that it plays its part in supporting applied research into monitoring and response technologies." LLOYDS LIST, 6 October 2011, p5 Finland wants sulphur flexibility "Finlands government may be on course for a tussle over the European Commissions maritime fuel sulphur content timetable. Under EU proposals published on 15 July, shipping must use 0.1% sulphur fuel from 2015 in the Baltic and North Seas and the English Channel SECAs (Sulphur Emission Control Areas). This is a reduction from the present requirement of a maximum 1% sulphur. It compares with a 1.5% maximum permitted in Finnish territorial waters and its economic exclusion zone. Finlands environment minister, Ville Niinist of the Green Party, told Fairplay last month: We are totally behind the directive, but we are an export-driven country and take these matters seriously. So, there should be a cost-effective solution agreed, with flexibility built in for all the countries affected." FAIRPLAY, 6 October 2011, p 30

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Maritime UK puts $5.6bn price tag on low-sulphur rules - By Craig Eason "A submission to a UK parliamentary inquiry into the impact of low-sulphur rules says the changes they could cost 3.6bn ($5.6bn) to shipping within 200 miles of the UK, and have far reaching consequences. The industry consortium Maritime UK has handed over a submission that warns of the potential side effects of proposed plans to reduce the sulphur content of marine fuel in emission control areas. It said the impacts would be further reaching than just on the shipowners. The UK Transport Select Committee called for submissions last month as it prepared its evidence ahead of the British government implementing pending rules changes from Brussels." LLOYDS LIST, 10 October 2011, p 2 Intertanko leans towards CO2 fund for shipping - By Craig Eason "Intertanko has softened its position on the development of market-based measures aimed at curbing shipping's CO2 emissions. The tanker industry lobby group has said in the past that the shipping industry did not need MBMs, saying high bunker prices would have a better effect. But in a statement from its recent council meeting it is now of the opinion that if a MBM should be required, it should be implemented through an international regime, be simple to enforce and monitor, provide sufficient transparency and not result in a disproportionate financial or operational impact on the industry. Therefore it believes a greenhouse gas fund would be better suited than a trading scheme." LLOYDS LIST, 10 October 2011, p 2 Salvors race worsening weather to pump fuel from Rena - By Nigel Lowry and Tom Leander "Salvors attending to a stranded container vessel off the north island of New Zealand are working amid deteriorating weather conditions to offload bunker fuel to contain a spill that has begun to wash up on coastal beaches. Svitzer Salvage, which was appointed by the owners under a Lloyd's Open Form last week, is bringing equipment from around the country and from Australia and further afield to assist it. Rena is carrying about 1,700 tonnes of fuel oil and a fuel barge Awanuia arrived alongside at the weekend to unload the bunkers. However, Maritime New Zealand said today that Awanuia attempted several times to connect to the vessel, but weather conditions prevented it. The first priority is to control and minimise the environmental consequences of the accident. Three of the vessel's main bunker tanks are said to be intact, but some fuel oil has leaked from one tank." LLOYDS LIST, 11 October 2011, p 2 Cruise lines lead search for sulphur emissions loopholes - By Eric van den Berg and Craig Eason Creative definition of IMO rules could see shipowners avoid costly low-sulphur fuel bills. Cruise lines are leading the march to find a loophole to international emissions regulations that would allow vessels to continue to burn high-sulphur fuel in emissions control areas. Compliance of the forthcoming low-sulphur rules are expected to collectively cost the shipping industry billions of dollars annually and any interpretation of the the Marpol Annex VI rules that offer an escape clause to shipowners are likely to be viewed with interest across the industry. LLOYDS LIST, 12 October 2011, p 1 Supply chains look for green help - By Konstantin Tsolakis "Closer collaboration between shipowners and shippers can cut emissions and costs. "The international nature of shipping does not allow for purely regional solutions on any issue that concerns the sector. Naturally, this holds for greening maritime supply chains too, a conference organised by the European Shippers Council on 28 September in Brussels heard. Emissions from shipping remain high, so it is very important to discuss, both within the EU and among international governments, how to mitigate them, Laure Chapuis, member of the cabinet of European Commission vice-president and commissioner for transport Siim Kallas, said in her welcome address. Transport is becoming increasingly global and complex. What supply chains need to reduce emissions are good management and an on-time mentality, Chapuis said." FAIRPLAY, 23 October 2011, pp 32-33 Going green the big issue for Tsavliris - By Adam Corbett "Salvage companies need bigger awards to help protect the environment, says the incoming ISU president. Andreas Tsavliris is the new president of the International Salvage Union (ISU) and he is already lining up talks with protection-and-indemnity (P&I) clubs on improving environmental awards for salvors. Preventing environmental damage in salvage awards is a contentious issue and Tsavliris is determined to get all sides of the industry talking, even though their positions appear to be polarised." TRADEWINDS, 14 October 2011, p 42 Food group cuts carbon footprint with switch from road to barge - By Roger Hailey "Food and drink group Princes is further cutting its carbon footprint by using a Manchester Ship Canal barge service out of the UK northwest box hub of Liverpool. Princes had previously reduced its carbon footprint by importing cargo through the port of Liverpool as a gateway, cutting inland haulage to reduce road miles and congestion. Last year, Princes and Peel Ports signed an initial agreement that removed 3,000 teu per year from road to barge along the canal to the inland port at Irlam, following the early success of the project. Princes has now increased this commitment and expects that through utilising waterways it will remove 6,500 teu, saving up to 500,000 road miles per year and cutting its carbon footprint by more than 500,000 kg of CO2 per year." LLOYDS LIST, 17 October 2011, p 7

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Study shows air pollution plummets with low-sulphur fuels New clean fuel regulations in California and voluntary slowdowns by shipping companies have substantially reduced air pollution caused by nearshore ships, according to a new study published online in Environmental Science & Technology.MER, October 2011, p 45 MSC will contribute to Rena cleanup - By David Osler "Mediterranean Shipping Co has told the New Zealand government that it will contribute towards the cost of cleaning up after the Rena boxship casualty, even though legal liability remains with owner Costamare and its insurers. Outlay so far has been around NZ$3.5m ($2.8m), although this figure is expected to rise considerably. According to the local media, MSC's New Zealand general manager Phil Abraham met transport minister Steven Joyce for an hour on Monday morning, and told him that MSC would consider its options and come back with proposals. The company's Australian managing director Kevin Clarke added that while MSC, the world's second-largest containership operator, is responsible for the containers lost overboard, their retrieval is a matter for salvor Svitzer." LLOYDS LIST, 18 October 2011, p 2 Navigating the changing offshore environment - By Glenn Kangisser "In assessing the fallout from the April 2010 Macondo disaster in the US Gulf of Mexico, which witnessed the loss of 11 lives, the sinking of the Deepwater Horizon drilling rig and the largest offshore oil spill in US history, it could be said that the three main priorities for policy makers are: regulation, regulation, regulation. This approach is indicative of a perception that the Deepwater Horizon blowout and subsequent oil spill at Macondo was ". an entirely preventable disaster", as suggested by Fred Bartlit, chief counsel of the White House Oil Spill Commission." LLOYDS LIST, 18 October 2011, p 4 Rena salvage at 'critical phase' - By Nigel Lowry "Salvage efforts to mitigate the impact of Rena grounding off the coast of New Zealand are at "a critical phase", officials have warned, as bad weather on Tuesday once again battered the casualty. Maritime New Zealand's salvage unit manager Andrew Berry said the ship was "in a dynamic situation". Salvors have fitted electronic sensor equipment onboard the vessel to monitor its movement. "The bow section is still sitting firmly on the reef, with the stern section showing some movement with the swell and tide," said Mr Berry. Today movement and noise were recorded coming from significant cracks on both sides of the vessel. "We're in a critical place during the next 24 hours due to the weather," Mr Berry said. He said "a range of response plans" had been drawn up in case the ship should start to break up." LLOYDS LIST, 19 October 2011, p 2 Baltic region agrees pollution response "The Baltic Marine Environment Protection Commission, usually referred to as the Helsinki Commission (HELCOM) and made up of the nine Baltic Sea coastal countries and the European Union, has agreed to strengthen co-operation of their shoreline responses to spillages of oil and other harmful substances. They already have a HELCOM Baltic Sea Action Plan, which consists of a risk analysis tool that improves their response capacities, and are developing a shoreline response plan that will be integrated with national contingency plans. Member countries are individually approving the plan and delegation heads will meet again in December in Helsinki when it will come into force." FAIRPLAY, 20 October 2011, p 23 Ferry operators warn over sulphur limits - By Roger Hailey "UK ferry operators have warned Westminster MPs that 0.1% sulphur limits for fuel from 2015 in the North Sea and English Channel will see service cuts and route closures. The House of Commons Transport Select Committee heard evidence from P&O Ferries fleet director John Garner that the higher cost of ultra-low sulphur fuels as part of the Marpol Annex VI amendments means an increased burden on the shipping industry of up to 3.6bn ($5.8bn). The European Commission is adopting the voluntary regulation through a directive but will also extend the emission control areas to the Mediterranean by 2020. Ship operators currently have to meet a 1% sulphur level in fuel. Mr Garner, who sits on the board of the Shipping Emissions Abatement and Trading group, said that companies would be forced to increase prices and cut costs elsewhere in response to rising fuel bills." LLOYDS LIST, 26 October 2011, p 2 Carnival backs plan for sulphur 'averaging' - By Eric van den Berg "Carnival UK chief executive David Dingle has come out in support of a cruise industry proposal that would allow vessels to continue to burn high-sulphur fuels in emission control areas. The proposal, an initiative driven by the US-based trade group Cruise Lines International Association, was first reported in Lloyd's List earlier this month. CLIA argues under existing international maritime law, vessels have the right to burn high-sulphur fuel in ECAs, as long as the average emission impact over the course of an entire voyage do not surpass stated limits." LLOYDS LIST, 27 October 2011, p 5 ECA supply challenges looming With the North American ECA set to be enforced in less than a year, there are still questions as the whether the bunkering sector is adequately prepared for the changes and challenges that lie ahead. BUNKER BULLETIN, Sep/Oct 2011, pp 16-17

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Low sulphur fuels availability in question With the maritime industrys drive towards cleaner fuels moving forward, the question is: will there be enough low sulphur fuel to meet demand triggered by stringent product requirement? BUNKER BULLETIN, Sep/Oct 2011, pp 26-27 Industry heavyweights in sustainable shipping drive - By Richard Meade "A heavyweight coalition of seventeen operators from across the shipping industry will today launch a landmark programme committing themselves to new standards of sustainability and challenging the slow pace of environmental regulation for shipping. The Sustainable Shipping Initiative, first launched in May, has pulled together an eye-catching group of companies with a combined market capitalisation of over half a trillion dollars including Rio Tinto, Carnival, BP, Cargill, Unilever, ABN-AMRO, Daewoo Shipbuilding, Bunge, Maersk Line, China Navigation and Wrtsil. The collective will launch their widely anticipated "vision for a sustainable future of international shipping" which lays out broad objectives and standards across employment, environment and financing policies in the industry and will commit the participant companies to reporting their progress on a biannual basis." LLOYDS LIST, 31 October 2011, p 1 INTERNATIONAL MARITIME ORGANIZATION (IMO) Guidelines for the development for shipboard marine pollution emergency plans. 3rd edition. London : IMO, 2010 (IMO-IB586E). Language(s): ENG, FRE, SPA. (ISBN 978-92-801-1518-5)

PORTS AND HARBOURS

Felixstowe ready to receive Maersk's 18,000 teu giants - By Roger Hailey "Felixtowe played host to the container industry at large and politicians last week when the UK's largest box hub formally opened its deepwater berths 8 and 9, which can accommodate the largest class of containership currently on order. The two berths - the first stage of a more than 1bn ($1.6bn) inward investment programme - will be equipped with seven of the largest container cranes in the world. Each crane, with a reach of 24 containers-wide, can handle the 18,000 teu Triple-E class vessels on order by Maersk Line for the AsiaEurope trade. They will call at the UK southeast port as part of the Daily Maersk supply chain." LLOYDS LIST, 3 October 2011, p 7 Fears mount over safety at terminals - By Lucy Hine "Questions are being raised over loading and discharge procedures following two more incidents in Asia. Details are starting to emerge of several accidents at LNG terminals, raising questions over safety procedures during the loading and discharge of LNG carriers. Industry sources say a significant amount of LNG was spilt at Korea Gas Corp (Kogas)s Pyeongtaek LNG terminal in South Korea last month in an incident involving the failure of emergency release couplings (ERCs) while a vessel was discharging at the facility. The LNG carrier, which has yet to be identified, is understood to have been offloading at the terminals No 1 berth when the spill occurred. As a result, the jetty is said to have been out of action for two weeks." TRADEWINDS, 7 October 2011, p 16 Sixth worker dies in Keppel accident - By Tom Leander "The death toll in the Keppel Shipyard accident in Subic Bay in the Philippines last Friday has risen to six after an injured worker died last Friday 12 hours after the accident, writes Tom Leander in Hong Kong. Subic shipyard manager Mok Kim Whang said on October 8: "We are deeply saddened that one of the seven injured workers had passed away." Among the dead, Cris Xander Papna, Jhay Lord Reyes, Glenn Miranda and Ronaldo Bagay were project employees of Keppel Subic Shipyard. Mark San Juan and Ronald Lara worked for Garcia and Rocafor General Services, a subcontractor with the yard. Of the six remaining injured, Keppel said in a statement that three were still in intensive care, while the other three were in a stable condition." LLOYDS LIST, 11 October 2011, p 5 Consultants appointed to tackle battery of noise and vibration complaints against Qatari ships in UK - By Lucy Hine "Charterer Qatargas Operating Co has appointed specialist consultants to look into the continuing battery of complaints regarding the noise from LNG carriers calling at the UKs South Hook LNG terminal and has scheduled a meeting with all parties this week. The problem [ship noise and vibration] is absolutely huge for us, one local said. It has ruined our lives." TRADEWINDS, 14 October 2011, pp 16-17 Greening faces grilling on pilotage standards - By Steve Matthews "One of the first tasks of new UK secretary of state for transport Justine Greening will be to answer parliamentary questions on pilotage standards tabled by Ellesmere Port MP Andrew Miller. This is the latest move in a long-running campaign regarding worries about the maintenance of pilotage standards in some UK ports due to commercial pressures, in particular the role and responsibility of the Department for Transport in ensuring those standards." LLOYDS LIST, 18 October 2011, p 5

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Boxship pulled up four times for multiple problems before crash - By Adam Corbett "The Tokyo Memorandum of Understanding (MOU) port-state-control (PSC) records show that the 3,351-teu containership Rena (built 1990) was pulled up for multiple deficiencies four times and detained once in the four months before it crashed on the rocks at Astrolabe Reef in New Zealand." TRADEWINDS, 21 October 2011, p 54

SEAFARERS
ITF urges Brussels to inspect Filipino crews at EU ports - By David Osler "A call from the European wing of the International Transport Workers' Federation for Filipino crews to be subjected to targeted inspections and unspecified control when calling in European Union ports has been criticised by the International Chamber of Shipping. The demands were contained in a letter by Philippe Alfonso, a political secretary at the European Transport Workers' Federation, addressed to Matthias Ruete, director-general responsible for transport and energy at the European Commission. Mr Alfonso states that he is concerned by reports that the quality of training at some maritime academies in the Philippines has been questioned in two reports compiled by the European Maritime Safety Agency." LLOYDS LIST, 4 October 2011, p 2 Seafarer morale at an all-time low - By Nigel Lowry "Seafarer morale is "at an all-time low", according to the International Transport Workers' Federation. ITF seafarers' section secretary Jon Whitlow said negatives include piracy, criminalisation, fatigue, denial of shore leave, visas, ISPS and lack of communication facilities while on board. "The real issue is to respect seafarers," he said. "Seafarers and the human element are often discussed but there are usually very few action points and even less implementation. Although the ITF had not undertaken a survey on the impact of piracy on recruitment and retention of seafarers, piracy was having "a profound impact"." LLOYDS LIST, 4 October 2011, p 2 Nautilus to start four-year joint conference cycle - By David Osler "Nautilus International, the seafarer union with British, Dutch and Swiss members, is set to hold its international conference in Rotterdam today and tomorrow with piracy, fatigue, criminalisation and shipping safety all on the agenda. The British wing of Nautilus, formerly known as Numast, has traditionally held such gatherings biennially. However, new arrangements since the tie-up with its continental counterparts will see a switch to a cycle of joint conferences every four years, with national sections meeting in each of the three intervening years. Nautilus International now represents more than 23,000 ship masters, officers, ratings and other maritime professional staff working at sea and ashore. Members at the meeting will debate 15 motions on subjects ranging from equal opportunities to piracy and ships' emissions, and pay and conditions for seafarers in the EU ferry and inland navigation sectors." LLOYDS LIST, 4 October 2011, p 2 Recovery in trade to bring crew resurgence - By David Osler "Shipping will once again be forced to turn to first world crews once world trade recovers from its current difficulties, the leader of Nautilus International has told members at the union's conference. Speaking in Amsterdam, general secretary Mark Dickinson argued that shipowners have realised that they have run out of new sources of low-cost labour and will have to make good the long-term decline in recruitment and training in traditional maritime nations. "It's clear even to the owners that the slump in seaborne trade during the past couple of years has failed to stem the demand for suitably qualified and motivated personnel," he said." LLOYDS LIST, 7 October 2011, p 2 Crew crisis puts brakes on Brazil - By Bob Rust "Brazilian authorities and maritime unions will be forced to accept some weakening of the countrys protectionist cabotage regime, says a player in the countrys scheme to develop a fleet of domestic-built, domestic-crewed tankers. Shortages will hit plans for the domestic tanker fleet if restrictions stay, says an owner. Severe crewing shortages have put Brazil-flag ships out of operation for days at a time, according to Greek-controlled Brazilian tanker owner Pancoast. The situation can only get worse as more tanker and offshore-support tonnage comes on stream." TRADEWINDS, 7 October 2011, p 30 Rise in seafarer numbers puts pressure on Filipino maritime training centres - By Adam Corbett "Filipino maritime schools may be under pressure from Europe to improve training standards but the country is growing as the shipping industrys main source of seafarers. The Trade Union Congress of the Philippines (TCUP) has announced that the countrys seafarers are set to send home around $4bn this year, up by around 12% on the previous year. Remittances to the country made in the first six months have already surpassed $2bn and the union says the numbers sourced in the country are growing by 3,500 per month. Japanese shipping company Nippon Yusen Kaisha (NYK) says it is expanding its Philippines-based NYK TDG Maritime Academy. The company is adding new training facilities that are expected to be completed in 2013." TRADEWINDS, 7 October 2011, p 46

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Philippines uproar puts seafarers at risk ashore - By Adam Corbett "Ships crew and surveyors at nickel-ore mines in the Philippines could find their lives at risk following a series of violent attacks by local terrorists. According to correspondents acting for the London Protection-and-indemnity (P&I) Club, there have been attacks at the Surigao regions major nickel-ore mines, Taganito and Platinum Metals Group Corp. Around 200 local rebels from the New Peoples Army (NPA) were involved in an attack on Taganito Mining Co and occupied the mine, planting mines and explosives around the compound. Three guards are said to have been killed in the attack. The mine belongs to the countrys largest nickel-ore producer, Nickel Asia, in which Japans Sumitomo Metal Mining is a major shareholder." TRADEWINDS, 7 October 2011, p 47 'Huge disconnect' in way seafarers are treated - By Liz McMahon "The shipping industry is struggling with huge gaps and a "fundamental disconnect" in the way it applies ideals of corporate social responsibility, according to shipmanagers' organisation Intermanager. Speaking at the first Annual Shipping and Offshore CSR Forum, Intermanager secretary-general Kuba Szymanski joined several speakers arguing that concepts of social responsibility needed to focus on the seafarer first. Mr Szymanski drew a comparison with how it is natural to see air cabin crew fast-tracked through customs after a six-hour flight because they are perceived to have some kind of privilege, while ships crew are sometimes made to wait for hours after a four-month voyage. He argued that this perception needed to change. While several non-government organisations and environmental pressure groups urged industry representatives to be prepared for "radical transparency" and scrutiny, Capt Szymanski led an industry response that urged any CSR initiative to focus primarily on crew wellbeing." LLOYDS LIST, 28 October 2011, p 2

SHIPBUILDING AND RECYCLING OF SHIPS

Grimaldi calls for mandatory scrapping of older tonnage - By Janet Porter "Italian shipowner Emanuele Grimaldi has stepped up calls for older tonnage to be scrapped and forecast that corporate casualties as a result of the industry slump are inevitable. Demolishing over-age ships would be the most effective way of both cutting pollution from ships and reducing excess fleet capacity that is depressing market conditions across the industry, said Dr Grimaldi. Addressing the 15th Euro-Med convention organised by Grimaldi Group, Dr Grimaldi said the economic crisis could accelerate shipbreaking activity, but political intervention would also have a positive effect." LLOYDS LIST, 3 October 2011, p 2 Outlawed Asia Union may continue to trade - By Geoff Garfield "Chinese owners of the panamax bulker Asia Union, which has been refused entry to Bangladesh for scrapping, may trade the ship again, it is being suggested. The 70,900-dwt vessel (built 1982) has been anchored off Chittagong but was said to have left Bangladeshi territorial waters at the request of the Department of Environment. Environmentalists claim it contains hazardous substances including asbestos, polychlorinated biphenyl (PCBs) and chemical residues. The latter seems questionable in any quantity given it is a bulker and not a tanker." TRADEWINDS, 7 October 2011, p 11 Bangladesh sets up scrap monitoring team - By Brian Reyes "Bangladesh's government has announced plans to establish a Ship Building and Ship Recycling Board that will oversee the clearance of all imported scrap vessels and their subsequent demolition. The news was read as a positive sign that breakers would most likely be able to continue importing tonnage beyond the cut-off date of October 12 imposed by a court earlier this year. But official confirmation of clearance has yet to be granted and, given the record of delays in the past, a degree of uncertainty remains in the market." LLOYDS LIST, 11 October 2011, p 8 Boom time for breakers? "With 115 vessels on the way to breakers, 2011 may be a record year for scrapping, exceeding the all-time high of 2009. Amid global economic uncertainty and stumbling OECD recoveries, a growing number of grand old (and not so old) ladies of the sea are heading for the breakers of South Asia. Industry analysts are openly saying the shipping markets are at their lowest confidence level for nearly four years, with fears aplenty for continuing overcapacity in most of the major shipping sectors." FAIRPLAY, 23 October 2011, p 6 Bangladeshi scrappers can work on for three months - By Geoff Garfield "A further three-month extension has been granted by the Bangladesh courts for the import of ships for scrapping. Recyclers and cash buyers had been waiting anxiously for a High Court decision. Broking sources, however, say that until written confirmation is received no further tonnage can be officially imported. At TradeWindss press time it was unclear why the extension had been granted. It is likely to be linked to the recent submission by the Bangladesh government of a set of regulations covering health and safety, the training

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of workers and pre-demolition inspections by governmental bodies." TRADEWINDS, 14 October 2011, p 19 Eco orders danger - By Irene Ang and Adam Corbett "The emergence of a new generation of superefficient ship designs is threatening to spark a fresh round of ordering that will stretch already overtonnaged markets. A Far Eastern sales drive headed by Japanese yards is generating widespread interest in a new series of eco-friendly designs that they say, given current charter rates and fuel prices, have a significant competitive edge and deliver higher profit margins. The move toward more energyefficient ships has already taken off in the dry-bulk market. Japanese shipbuilding powerhouses Mitsubishi Heavy Industries and Oshima Shipbuilding have teamed up on a new 95,000-dwt bulker design that uses a hull-airlubrication system to improve efficiency, winning the first order for three ships from US player Archer Daniels Midland (ADM)." TRADEWINDS, 21 October 2011, p 7 Judge puts Bangladeshi extension on ice - By Geoff Garfield "The Bangladesh High Court is now expected to hear an application to allow further imports of ships for recycling in a couple of days time but a stumbling block could be recent fatal accidents at yards. Ministry of Industry representatives are expected to apply for a further six-month extension. The last one expired on 12 October. It was reported last week that the court had already granted a three-month extension but this proved to be incorrect. Captain Anam Chowdhury, advisor to the Bangladesh Ship Breakers Association (BSBA), says the judge due to hear the latest application has asked to first read reports investigating the deaths of three or four people in different incidents at recycling yards." TRADEWINDS, 21 October 2011, p 11 Orders at China's yards fall 43% year on year - By Tom Leander "New ship orders in China fell 43% to 29.1m dwt in the first nine months compared to the year-earlier period, according to China's Ministry of Industry and Information Technology. China's outstanding orders had amounted to 168.9m dwt at the end of September, 14.5% less than last year. In the period from January to September, the country's output of completed ships reached 51m dwt. These figures concur with news that South Korea had taken back the title as the world's largest shipbuilding nation and had won a full half of all global orders in the third quarter of 2012. New vessel orders secured by South Korean yards were 2.5m gt for the period from July to September." LLOYDS LIST, 26 October 2011, p 5 Bangladesh extension still on ice - By Geoff Garfield "Concerns are growing that further delays to lift a ban on fresh ship imports could now risk recyclers livelihood. The import of ships into Bangladesh for scrapping remained paralysed again this week as the market nervously awaited the outcome of a government report into recent fatalities. Everything hinges on the Bangladesh High Court deciding whether circumstances leading to the deaths means an existing ban on imports should remain in place. Permission for imports expired on 12 October. Although most yards are said to have plenty of ships to continue cutting, it is feared that if the High Court does not sanction in writing soon an extension for imports then some could start running short of work." TRADEWINDS, 28 October 2011, p 8

SHIPPING
Shipowners win tonnage tax victory in UK U-Turn - By Steve Matthews "The UK government has made a sharp about-turn on its tonnage tax policy by responding positively to shipping industry lobbying to restore the original interpretation of rules on company eligibility for the tax regime. The UK Treasury had come in for intense criticism for unilaterally tightening the eligibility rules, effectively restricting the shipping companies able to enter the tonnage tax scheme and the status of some already entered. As a result of industry lobbying Her Majesty's Revenue & Customs conducted a review of the policy and today will publish new interim guidance reversing those changes. UK Chamber director-general Mark Brownrigg said: "It is excellent news that HMRC has restored its original interpretation of the rules on eligibility for the tonnage tax regime, which has proved such a success over the last decade." LLOYDS LIST, 3 October 2011, p 1 Cyprus eyes growth for flag despite Turkish ports ban - By Nigel Lowry "President of Cyprus Demitris Christofias has pledged continuing support for its shipping sector and has blamed Turkish "hostility" for curbing further growth. Opening the Maritime 2011 conference in Limassol, Mr Christofias said the Cyprus-flagged fleet, currently the 10th largest in the world and third ranked in Europe, "would have held an even higher position in the world rankings" if not for the Turkish ports' ban on vessels linked with Cyprus. "The continuous hostile attitude and the restrictive measures imposed by Turkey adversely affect both our country and the development of our shipping, as well as the private and public interests of the EU," said Mr Christofias. The Turkish embargo breached fundamental rights and the principle of free competition in maritime trade, he said." LLOYDS LIST, 4 October 2011, p 2

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Resolving eurozone debt crisis is key to global trade recovery - By Steve Matthews "Dutch bank ABN Amro expects world trade to continue growing in 2012, but has warned that there is still a risk of a contraction if the eurozone crisis is not resolved. The bank's latest forecast expects two quarters of economic contraction in the eurozone. However, it is optimistic that if the sovereign debt crisis is resolved, there will be a slow recovery, though it will be hampered by fiscal consolidation throughout Europe. It expects world trade in 2012 to grow by 4.5% overall, but a slow first half will be followed by accelerating trade growth in the second half of 2012. However, she said that there is still a risk of a repeat of 2009 in terms of a decline in world trade if the financial crisis is not resolved." LLOYDS LIST, 6 October 2011, p 7 Everyone wants to be green, but who will pay? - By Felicity Landon "Hands up who wants to be green? That's pretty much everyone, then. Now, hands up who wants to pay more in order to be green? Ah, now that's a question likely to prompt a flurry of hands down. This was one of the overriding themes at the recent GreenPort Cruise conference organised in Hamburg in association with the European Unionfunded Cruise Gateway North Sea project. The Cruise Gateway partners are working through a programme of research, workshops and best practice visits to find ways of developing the North Sea region as a cruise destination in its own right. Within that, the big issue is sustainability; Cruise Gateway wants to promote the North Sea Route as a "beacon for sustainable cruise"." LLOYDS LIST, 6 October 2011, p 12 Japanese fuel oil imports almost triple after quake - By Eric van den Berg "The Japanese power generation industry's combined consumption of residual fuel and crude oil has almost tripled since a devastating earthquake hit the country in March. A report released by US-based research department of brokers Poten & Partners on Thursday showed that Japanese power plants burned in excess of 6m barrels of fuel oil and more than 5m barrels of crude in August. In February, before disaster struck, combined consumption of the two fuel sources was little higher than 4m barrels. Since the earthquake, Japan has been ramping up other forms of power production as its nuclear generation has faltered." LLOYDS LIST, 7 October 2011, p 8 Intertanko members 'deeply concerned' about market conditions - By Craig Eason "INTERTANKO has warned that current market conditions and high costs in meeting safety and quality criteria could drive owners out of the market. Owners participating at the tanker owner lobby group's recent council meeting in London have expressed their deep concerns over current market rates, saying low charter rates and operational costs are combining to make an unsustainable situation. However, laying up vessels remains an unwelcome move." LLOYDS LIST, 10 October 2011, p 2 Closure of DMSA 'will not hit standards' - By Craig Eason "The Danish Maritime Safety Administration is to be closed down and the Danish Maritime Authority is to lose its responsibility for education and training. The changes are to be made in the coming weeks and are the result of a recent general election in the country that brought in a new government. The current plan is for the state-run pilot operator Danpilot, and the pilot authority, to be moved to the Ministry for Economics, Business Affairs and Growth. Oceanography activities could be transferred to the Ministry for Climate, Energy and Construction, and responsibility for hydrography is being transferred to the Ministry of the Environment. The coastguard, and the work on navigation aids and other tasks will remain under the auspices of the country's MoD. The government insists that levels of navigation safety in Danish waters will remain unaffected." LLOYDS LIST, 10 October 2011, p 5 Chinese bank looks for more business - By Nigel Lowry "Export-Import Bank of China is poised to expand its support for European owners after emerging as a top international ship finance institution, a senior executive has said. "I believe we will be able to expand the business here," said Derek Wu, Division 1 director in the bank's shipping finance department, on a visit to Greece. But he also delivered a pitch to Greek owners on behalf of Chinese shipbuilders, who have slipped behind Korean competition this year. "We want you to put more orders in China," he told a Marine Money conference in Athens. "That's why we are here."" LLOYDS LIST, 14 October 2011, p 3 Shale gas set to boost American coal exports - By David Bull "Coal production in the US has remained relatively stable over the past two decades, averaging 980m tonnes per year. The US is the second-largest global producer, behind China, whose production has more than tripled in the last 20 years. However, the US has a major advantage over every other country on the planet; it has around 30% of all known coal reserves. US coal reserves have been likened to the oil reserves in Saudi Arabia, giving rise to suggestions that the US could become the world's swing producer of coal. The demand for coal has, in most parts of the world, and in particular within China and India, led to an increase in the global trade of seaborne coal." LLOYDS LIST, 14 October 2011, p 12 Its time for new ways of thinking - By Terry Macalister "National shipping fleets might seem like old hat but in these bleak times, why not? Is it time for a return to the national shipping corporation not just

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in developing countries but in the West? Should there, say, be a German national line backed up by a state-owned shipbuilding group that secures the transport networks of the future? Is it a preposterous idea in a world where the prevailing orthodoxy is globalisation and privatisation? Maybe. But as we teeter on the brink of another European banking crisis and a double-dip recession that will have a major impact on the maritime trades, it is time for some fresh thinking." TRADEWINDS, 14 October 2011, p 2 Greeks open to relocating East - By Gillian Whittaker "The promise of the Orient is tempting hearts away from Greek home turf. The shift in the balance of trading toward the East, weak banking conditions in the West and the uncertain economic climate may push even fiercely patriotic Greek shipowners and service providers to consider relocating overseas, some leading industry names believe. Harry Vafias, chief executive of Nasdaq-listed StealthGas, told the TradeWinds Shipowners Forum in Athens that he is aware of 10 Greek companies that have opened offices abroad with a view to possibly leaving Greece. But the owner was unwilling to name those concerned. TradeWinds has already reported on a number of Greek companies opening offices in Singapore, including owner Meadway Shipping, which did so in May, and Piraeus broking house PK Kakoulidis, which established its base in the Lion City in the spring." TRADEWINDS, 14 October 2011, p 6 Owner threatens to quit German flag - By Patrick Hagen "Erck Rickmers' two 13,100 teu container giants will fly the German flag when they start trading for Mediterranean Shipping Co later this year. However, these could be the owner's last newbuildings to be brought under the black, red and gold. Germany's shipowners are involved in a huge row with the country's government over subsidies, which were meant to ease the additional costs incurred with the German flag and which have fallen prey to cuts in public spending. "For the time being, these are the last vessels that we will bring under the German flag," said ER Schiffahrt chief executive Albert Schumacher. "We will wait and see whether the government fulfils its part of the maritime alliance."" LLOYDS LIST, 18 October 2011, p 1 Brussels tables $69bn plan for transport fund - By Roger Hailey "Brussels has tabled a plan to fund 50bn ($69.2bn) of investment in Europe's transport, energy and digital networks, including providing 83 main European ports with rail and road links. The vice-president and commissioner for transport Siim Kallas said: "Europe's transport system is currently an inefficient patchwork of different national networks. Europe's railways currently have to use seven different gauge sizes. Only 20 of our major airports are directly connected to the European rail network, and only 35 of our major ports are well connected. Transport is the lifeblood of the European economy. And if it does not flow smoothly, our economy will weaken and fail to grow."" LLOYDS LIST, 20 October 2011, p 2 Shipping crash is first to happen 'in public' - By Steve Matthews "This shipping crisis is different from any previous one because it is being played out in the full glare of public equity markets, which could have serious implications for its future recovery and the ability to find new investment. Speaking as chairman of the Informa Maritime Events Turkish Shipping and Ship Finance Conference in Istanbul, First International chairman Paul Slater said he had calculated that listed shipping companies had lost between $30bn and $35bn of value since their peak in late 2007 and early 2008. There were about 45 new public shipping companies that at first saw earnings go through the roof along with company values. They paid big dividends, often mostly to their family owners. "This was not necessarily a problem but it created euphoria among investors. The recent massive drop in earnings and company values has stifled confidence of investors. So, shipping will struggle for several years to regain that confidence and to gain new investment," said Mr Slater." LLOYDS LIST, 20 October 2011, p 3 US deals raise hopes of recovery- By Steve Matthews "The slowdown in the US economy is generating fears about its impact on trade. But there was one piece of good news in that respect with the signing of free trade deals with Colombia, South Korea and Panama, which had been stalled in the US Congress. Despite fears among some US lawmakers that the deals would result in US jobs being lost to these countries, US President Barack Obama said these trade deals would contribute towards achieving his goal of doubling US exports. "American automakers, farmers, ranchers and manufacturers, including many small businesses, will be able to compete and win in new markets," he said. The new trade deals were welcomed by the Organisation for Economic Co-operation and Development." LLOYDS LIST, 20 October 2011, p 7 Bell is ringing for Isle of Man - By Richard Clayton "A change of line-up in the Isle of Man (IoM) Council of Ministers does not usually make headlines in the maritime sector. However, the impressive rate of growth of the ship registry suggests owners might like to keep one or two contact details close by. Over the past nine years, the flag has more than doubled in size, measured in terms of gross tonnage from 6M to 13.4M gt in July this year." FAIRPLAY, 20 October 2011, p Things can only get better for tanker sector - By David Bull and Karla Calderas-Mendez "Will 2011 go down as one of the toughest years for the tanker sectors? There seems nothing positive in the near-

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term to suggest that the sector will improve. On a global scale there are concerns over the limited growth within the US economy, the continued sovereign debt in Europe, Beijing's desire to rein in inflation and the slow rebuilding of post-tsunami Japan. Recent revisions by the International Monetary Fund have downgraded future growth predictions. Prospects for the advanced economies have been scaled back from April forecasts of 4% growth in GDP during 2011 to a new forecast of under 2% this year, with similar growth forecast for 2012. The improved economic activity will increase demand for tankers. As tanker owners, operators and charterers generate earnings from the demand for and transportation of oil, there are high hopes that the IMF, OPEC and other forecasts will be readjusted in future months signalling positive economic activity." LLOYDS LIST, 21 October 2011, p 12 Subsidy row puts German flag in crisis - By Geoff Garfield "Local owners say the help on offer is not sufficient to bridge the cost gap of flying the German colours. Germany could see an exodus of ships from flying the countrys flag if talks fail between owners and the government over subsidies. The seriousness of the situation has been underlined by one of Germanys biggest companies, Erck Rickmers, which says it will place no more vessels under the countrys colours until it is clear whether the federal government will fulfil its part of a so-called maritime alliance. Under that long-standing agreement, subsidies have been paid to German-flag owners to bridge the cost gap with operating under a foreign flag. In return, owners pledged to maintain between 500 and 600 vessels under the black, red and gold flag." TRADEWINDS, 21 October 2011, p 10 Cunard cruiseships to reflag in Bermuda - By Roger Hailey "Cunard is switching from the UK to the Bermudan flag on its three cruiseships in order to allow passengers to be married on board. Queen Mary 2 , Queen Victoria and Queen Elizabeth will be registered with Bermuda because wedding ceremonies cannot currently be conducted on a UK-flag vessel. The cruiseships will continue to be home-based at the UK port of Southampton. Cunard president and managing director Peter Shanks said: "Most of our competitors have been developing increasingly popular and lucrative weddings at sea programmes, and these are now very big business in the cruise industry." LLOYDS LIST, 24 October 2011, p 2 Horizon Lines quits Pacific trade routes - By Janet Porter and Rajesh Joshi "Horizon Lines ' decision to withdraw its transpacific service has brought into focus smaller niche shipowners' struggle for survival in an increasingly cutthroat international liner industry. Horizon chief operating officer Brian Taylor said: "We do not expect any measurable improvements in fuel prices, the freight-rate environment or in this trade lane for the foreseeable future. Growing capacity continues to outpace demand and the forecast for 2012 calls for more of the same."" LLOYDS LIST, 26 October 2011, p 1 Latest tanker results signal the road to ruin - By Steve Matthews "With the third-quarter results reporting season well under way the full scale of the losses being incurred by tanker companies is becoming apparent and there is no indication that the fourth quarter will be much different, or indeed 2012. Even the most well-structured and well-run companies are reporting scary losses. For others this situation is surely unsustainable and unless there is a rapid turnaround, major financial restructuring or company failures seem inevitable." LLOYDS LIST, 27 October 2011, p 1 Financial heads warn of trade protectionism rise - By Steve Matthews "In advance of next week's G20 summit in Cannes, France, three leading international economic and trade organisations have jointly warned world leaders about the risks to trade from growing global economic and financial pressures and the dangers of trade protectionism. OECD secretary-general Angel Gurria, World Trade Organisation director-general Pascal Lamy and Unctad secretary-general Supachai Panitchpakdi said in a joint statement: "Disappointingly weak growth in some G-20 members and continuing macroeconomic imbalances globally are testing the political resolve of many governments to resist trade protectionism." "There is a growing perception that trade protectionism is gaining ground in some parts of the world, as a political reaction to current economic difficulties. The situation is not yet alarming, but it is clearly adding to the downside risks to the global economy," said the statement." LLOYDS LIST, 27 October 2011, p 5 Opportunities for private equity as banks look to jump ship - By Steve Matthews "There are growing indications that 2012 could be a crucial year for shipping company finances, according to several speakers at the Informa Maritime Events Shipping and Ship Finance Conference in Istanbul. But this will offer opportunities for others to step in. "Once banks release their grip on shipping companies' finance it would release pressure and ship prices will fall to a more realistic level. This will open up big opportunities for private equity funds which could move in," former Baltic Exchange chairman Michael Drayton said." LLOYDS LIST, 27 October 2011, p 7 Chinas shrinking trade surplus no cause for alarm - By Bouko de Groot "Shipping is nervous following Chinas first quarterly trade deficit since 2005. Nervousness is being fuelled by Chinas steadily falling trade surplus, but there is no cause for alarm, according to Xianfang Ren, senior analyst global economics with IHS Global Insight. The surplus is going to shrink. In the long run well see a more

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balanced situation, Ren told Fairplay. However, Chinese economic growth will continue to outpace the global average. Imports will grow, exports will get weaker. Ren expects deficits to continue to occur, but every time weve seen one, it only lasted for a short time."" FAIRPLAY, 27 October 2011, p 17

Class vital for shippings future "Technological innovation must be high on class societies agenda. Shippings future depends on class societies to achieve technological innovation, ClassNK chairman and president Noboru Ueda told delegates at the first Founders Lecture held by Londons Institute of Marine Engineering, Science & Technology (IMarEST) earlier this month. The maritime industry was on the brink of a new age of discovery, he said. We now have many new frontiers to explore. These include the newly opened Northern Sea Route, which poses significant technological, safety and environmental challenges. It will reorientate our industry and possibly change the flow of global trade, bringing Asia and Europe closer together, but it also poses significant technical challenges to shippers, he said." FAIRPLAY, 27 October 2011, p 31 ICSs flag warning "Shipowners urged to only use states that comply with their obligations. Several highprofile casualties have prompted questions about the performance of flag states, Simon Bennett, ICS director of external relations, told the Russian Register Seminar on Quality Shipping in St Petersburg on 12 October. There is understandable concern about shipping companies use of flags that may not comply fully with international regulations, he said, suggesting that a balance has to be struck between the use of such flags and the commercial advantages of shipowners selecting a particular flag state." FAIRPLAY, 27 October 2011, p 31 Lloyd's List Asia awards recognise tsunami heroes - By Tom Leander "Doris Magsaysay Ho, a tireless and inspired advocate of seafarers' rights and the head of one of the largest crewing agencies in the world, won the Lloyd's List award for Lifetime Achievement at the Lloyd's List Asia awards. Pacific Basin Shipping, a Hong Kong dry bulk operator, swept up three awards; for shipmanagement, environment and seafarer of the year. The latter went to Zhu Qianchun, master of the handysize Port of Pegsasus, who rescued his ship and crew during the earthquake and tsunami on March 11 of this year. Capt Zhu, who also won in the global awards, shared the seafarer accolade with Gilbert Cabrera, master of Morning Cedar , operated by Philippines Transmarine Carriers . The event, held at Hong Kong's Grand Hyatt Hotel, was the first held in Hong Kong in several years." LLOYDS LIST, 28 October 2011, p 4 Mega-ships spur a box revolution - By Jonathan Boonzaier "A carrier boss says the new monsters spell hardship for second-tier players. The liner industry is in for a revolution as new monster-size boxships are set to make their debut, while second-tier operators could be in for a tough time. Nearly every major liner player has splashed out on vessels in excess of 13,000 teu and market watchers believe these ships are going to have to switch to a hub-and-spoke system that will spell doom for those who insist on maintaining point-to-point services using smaller ships. Jorn Hinge, president and chief executive of Dubai-based United Arab Shipping Co (UASC) says soaring bunker prices are forcing operators to opt for the largest vessels possible." TRADEWINDS, 28 October 2011, p 10

SPECIAL REPORTS
Gibraltar: LLOYDS LIST, 6 October 2011, pp 1-4 Supplement: Germany 2011, Opportunities and threats for Europe's powerhouse pp 1-30 Training & Education: FAIRPLAY, 6 October 2011, pp 16, 18, 22-26, 28-29, 31-33, 36-37 South Korea: FAIRPLAY SOLUTIONS, October 2011, pp 46-47 Safety and Security FAIRPLAY SOLUTIONS, October 2011, pp 22-30 India: TRADEWINDS, 7 October 2011, pp 19-29 Greek Bulk Fleet: LLOYDS LIST, 13 October 2011, pp 1-8 South Korea: FAIRPLAY, 23 October 2011, pp 34-47 Russia/Arctic: SEATRADE, September 2011, pp 20-23 Copenhagen: SEATRADE, September 2011, pp 25-27 Caribbean: SEATRADE, September 2011, pp 43-47 Mediterranean: SEATRADE, September 2011, pp 51-75 India: SEATRADE, September 2011, pp 77-93 South East Asia: SEATRADE, September 2011, pp 95-101 South Korea: NAVAL ARCHITECT, October 2011, pp 24-42 Live saving and ship safety: NAVAL ARCHITECT, October 2011, pp 63-71 Asia focus: South Korea LLOYDS LIST, 20 October 2011, pp 1-8 Latin America: FAIRPLAY, 20 October 2011, pp 28-35 Italy: FAIRPLAY, 20 October 2011, pp 16-20, Middle East: TRADEWINDS, 21 October 2011, pp 21-32

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Top Containers Ports: LLOYDS LIST, 27 October 2011, pp 1-8 Netherlands Europort FAIRPLAY, 27 October 2011, p 18 Lifesaving appliances: SAFETY AT SEA INTERNATIONAL, November 2011, pp 16-22 Fire and gas: SAFETY AT SEA INTERNATIONAL, November 2011, pp 24-30 Tanker safety: SAFETY AT SEA INTERNATIONAL, November 2011, pp 32-37 Sweden: TANKER OPERATOR, October 2011, pp 9-14 Anti-piracy/Security: TANKER OPERATOR, October 2011, pp 16-24 Satellite communications: TANKER OPERATOR, October 2011, pp 26-29 Propulsion systems: TANKER OPERATOR, October 2011, pp 31-38

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