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July 2018

INTERNATIONAL SALVAGE UNION

ISU 2017 statistics show revenues remain weak ISU has published its annual statistics and they show that gross revenue for ISU members in 2017 from all activities was US$ 456 million. It compares with US$ 380 million in 2016 - a 20% increase. The statistics show that the industry has recovered slightly from the low point of 2016 but revenues are not approaching the levels of 2013, 2014 and 2015 when annual income was more than US$ 700 million.

The statistics are for gross revenues from which all of the salvors’ costs must be met. Revenue from Lloyd’s Open Form (LOF) cases in 2017 was US$ 54 million which is the lowest since 1999 and continues the downward trend of LOF. Revenue from SCOPIC was US$ 20 million – down from some US$ 60 million the previous year and the lowest annual SCOPIC revenue since SCOPIC was introduced in 1999.

The number of LOF cases that realised revenue in 2017 for ISU members was 46 - an increase on the 34 cases in 2016. However, with the increase in cases and decrease in LOF revenues it means the average revenue from each LOF case, including SCOPIC revenue, has fallen and was US$ 1.6 million, down from US$ 3.9 million the previous year.

The total number of “dry” salvage services (emergency response as opposed to wreck removal) in 2017 was 251. In 2016 there were 306 operations – but that was the highest number for nearly 20 years.

The total of LOF salved values was nearly US$ 1 billion and the average LOF salved value was US$ 21 million. It means that the average income (excluding SCOPIC payments) for each LOF case - both settlements and arbitrators’ awards - was 5.6% of the salved value, the lowest on record.

The statistics provide the only published measure of the state of the marine salvage industry. The statistics are collected confidentially from all ISU members, aggregated and analysed by a third party. They do not include the revenues of non-ISU members. The statistics are for income received in the relevant year but that can include revenue from services provided in previous years.

Revenue from LOF cases represented 31% of all “dry” salvage revenue and LOF cases accounted for 18% of all “dry” salvage cases in 2017. Ten years ago, LOF revenue represented more than 70% of “dry” salvage income and 34% of cases. Both numbers confirm the continuing decline in the financial significance of LOF over the past few years. Continued on Page 2

MAERSK HONAM - giant containership fire extinguished by ISU members In March, the Maersk container vessel MAERSK HONAM, carrying 12,416 TEU reported a serious fire. The crew managed to release the vessel's CO2 system into the cargo hold but it did not stop the fire. 27 crew members were onboard the vessel and 22 were safely evacuated. One evacuated crew member passed away due to injuries sustained during fire and the remains of three of the four missing crew members were found on board the vessel. The fire broke out around 900 nautical miles southeast of Salalah, Oman. Firefighting activities were initiated by the Indian Coast Guard until special firefighting capabilities arrived at the scene with salvage operations being led by Smit Salvage and Ardent. A Smit spokesman said: “The case of

the MAERSK HONAM is an excellent example how two ISU members can successfully cooperate and use their best endeavors to limit further exposure for shipowners. During this tragic event co-salvors Smit Salvage and Ardent managed to extinguish the fire on board this large containership. 1

“After extensive firefighting and detailed inspections, a towage connection was prepared and the vessel was towed by the stern to a safe berth where the vessel was redelivered to her owners at the Jebel Ali Port in the UAE.”


ISU statistics 2017 continued At the same time, revenue in 2017 from operations conducted under contracts other than LOF was US$ 119 million – up from US$ 75 million the previous year. Average revenue from non-LOF contracts was therefore US$ 580,000 per case. It reflects the continuing trend for commercial contracts to be used in place of LOF. Wreck removal income has grown during the past decade and remains an important source of income for members of the ISU. In 2017, 120 operations produced income of US$ 264 million – 58% of total income. It is an increase from US$ 172 million in 2016.

Commenting of the statistics, ISU President, Ms Charo Coll, said: “The 2017 ISU statistics again show the variability of our industry. Yes, the total revenue of US$ 457 million was an increase on the previous year but that is still far from the the US$ 717 of two years ago - more than 30% down.

making salvors undertake cases for lower returns and there may be pressure from owners and insurers to drive down costs. LOF revenue is much reduced and a contributing factor could be due to the increased use of “side agreements”. It is ISU’s understanding that these are used to reduce LOF awards and settlements.

“Nevertheless, the industry continues to be active, continues to invest and continues to be effective in helping to mitigate loss for ship owners and insurers but, at the same time, ISU members are also experiencing financial hardship.

“It is vital for world trade that there is a well resourced and capable marine salvage industry available to save life, protect the environment and save property and we encourage the shipping industry to support its professional salvage providers.”

“The forces of competition may be

Emergency response revenue

Total revenue

LOF and SCOPIC revenue

Wreck removal revenue

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ISU NEWS

ISU AGM 2018 set for Cape Town

New Secretary General ISU is delighted that Roger Evans has now started as its new Secretary General. Mr Evans will work alongside General Manager, Mark Hoddinott, until his retirement towards the end of this year. The former title of Secretary General has been restored as the ISU Executive Committee feel it is more in line with other similar trade associations. Mr Evans is well known in the salvage community and he worked for Smit in salvage and offshore roles for more than 30 years. Mr Evans is a former master mariner who sailed on a variety of vessels including reefers, bulk carriers, container and general cargo ships. Speaking about Mr Evan’s appointment, ISU President, Charo Coll, said: “Roger brings vast experience of salvage and is well known and trusted by the key stakeholders in the shipping industry. "Mark Hoddinott has been a great servant of the ISU and has done a tremendous job in professionalising the organisation; expanding the membership; building up its relationships and making progress on many issues.” Mr Evans said: “I am really pleased to be joining ISU and look forward to representing the interests of the Members as we tackle the issues and challenges facing the industry. I have been at the “sharp end” of the salvage business for more than two decades and I know the

importance of the role the ISU plays and voice that it has in the shipping industry. It will be a privilege to play my part in leading ISU.”

For booking information:

AGM

Associate Members: 25% discount with code FKT3426ISUA at: https://goo.gl/fr3xSv

This ISU AGM 2018 will be held on 25 October at the Table Bay Hotel, Cape Town, South Africa, sponsored by Resolve Marine Group. Booking details have been circulated by the General Manager. The AGM will be preceded by a meeting of the Executive Committee on 24 October and there will an associated programme of social events. Salvage and Wreck Asia Conference ISU is supporting the annual Salvage & Wreck Asia Conference, 25-26 September 2018, at the Novotel Clarke Quay, Singapore. The organisers say that the key themes will include: operational and commercial matters; the salvage market and salvage contracting in Asia; firefighting on large container ships; claims handling and the challenges faced by the marine insurance market. There is also a one day seminar on 24 September, at the same venue, examining issues connected to the liquefaction of bulk cargoes. ISU full members receive a 40% discount, and associate members a 25% discount.

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Full Members: 40% discount with code FKT3426ISUFM at: https://goo.gl/kMFt5H

Annual Review The ISU has published its Annual Review for 2017 which may be downloaded at www.marine-salvage.com/documents/ The Annual Review is not a statutory publication but aims to update members, associates and affiliates and the insurance and shipping industries about the work of the ISU and its members.


Members’ News Tsavliris Tsavliris Salvage has added to its fleet with the acquisition of the tug PROTEAS. She was built at Moss Point Marine Inc. shipyard under hull No 106 for the Kingdom of Jordan as the AMMAN. PROTEAS (BHP 3,200 – BP 45T) is fitted with FIFI 1 capabilities and will be operating out of Patras, Greece – mainly in the gulfs of Patraikos and Corinthiakos. A private blessing ceremony was held in late March with family and staff in attendance.

Tsavliris has also expanded their relationship with partners Singapore Salvage Engineers (SSE) with a recent cooperation agreement. Tsavliris said the new business alliance enables the provision of “world class salvage services and state-of-the-art marine engineering solutions in the region of south-east Asia”. Based in Singapore, SSE is a leading service provider for maritime emergency and support services in Malaysia, Indonesia and Vietnam. Prior to the agreement, both companies had jointly worked on numerous successful salvage operations. Separately, George Tsavliris has been appointed to the Academic Board of Metropolitan College which was founded in 1982 and is the largest private educational organisation in Greece, with over 5,000 students on four campuses around Greece, offering more than 55 undergraduate and graduate degrees, in partnership with five distinguished UK universities. Ardent Ardent has announced that it has formally partnered with Vernicos Tugs and Salvage, a Greek-based tug and salvage service provider and Environmental Protection Engineering (EPE) a Greekbased Oil Spill Response provider

for future operations in the eastern Mediterranean and the adjacent waters. The three companies signed a cooperation agreement in late March to closely work together on future opportunities and at the same time retain their own corporate identities. “Ardent brings to the partnership experience in the world’s most technically challenging salvage and wreck removal jobs along with a cache of specialized, proprietary equipment – which will now be strategically stored at Vernicos’ various depots, including Perama", said Dimitris Theodorou Ardent’s Director EMEA. Jean Benzonana, Vernicos Tugs Chief Executive Officer, said: “The Alliance allows us to be the most effective provider of marine emergency response services in the region, providing an integrated network of floating assets as well as specialized equipment. It is a joint effort to pro-actively protect our seas by providing emergency response in the Eastern Mediterranean and surrounding regions,”

Ardent note that global spending on oil and gas decommissioning is expected to be US$ 13 billion per year by 2040. Five Oceans Salvage Five Oceans Salvage reports that it provided salvage services to the bulk carrier ST ELIAS - 24,000 dwt, built 1997 - while on laden and on passage from South America to the Black Sea and which was immobilized due to main engine failure about 750 miles west of Las Palmas. Five Oceans Salvage signed a LOF with the owners and mobilized tug VB HISPANIA from Ceuta to assist. The tug connected with the casualty and towed her in adverse weather conditions to Gibraltar, where she was safely redelivered. FOS also hosted an evening cocktail party in June in the Allouche-Benias Gallery exhibition hall at the recently renovated historical Deligiorgis building in Athens city centre.

‘’The synergies between the three companies will guarantee providing timely solutions in responding to marine incidents in the area of the eastern Mediterranean and safeguarding the environment at the same time”, said Mr. Vasilis Mamaloukas, EPE Director. Ardent has also announced its part in a new global oil and gas decommissioning consortium offering what is says is a “collaborative supply chain approach to global decommissioning” with an “an endto-end solution from industry leaders, to reduce the decommissioning burden, risk and cost for operators.” The new decommissioning consortium, which includes Lloyd’s Register (LR), WorleyParsons, and Ardent, brings together 350 years of collective experience Peter Pietka, Ardent CEO, said: “We bring to the consortium over 150 years of maritime retrieval experience, as a global leader in salvage and wreck removal. Through our expertise, we are in the unique position of being able to apply techniques and learnings from other sectors such as marine wreck removal, to improve how to tackle the increasingly important challenge of decommissioning offshore oil and gas infrastructure.”

The event was attended by nearly 300 people including ship owners and operators, representatives of P&I Clubs and hull and machinery underwriters, lawyers and insurance brokers. Five Oceans Salvage said the event was a great success and guests had the chance to admire the fine artwork in the gallery building and enjoy a relaxed evening under the tunes of live jazz music. Continued next page

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Members’ News continued Tug Malta

Boluda

Tug Malta used one of its vessels FiFi equipment to recreate the look of a well known Maltese rock sea-arch which had collapsed.

Boluda's tug VB HISPANIA seen in towing action

Resolve At the major Posidonia exhibition in Greece, Resolve Marine Group held, jointly with SNAME, an event consisting of a series of presentations on case studies of effective emergency response. The event was organized jointly by the Sname Secretariat and Dimos Iliopoulos, Resolve’s representative for Greece, Cyprus and Turkey.

The title of the seminar was: “Maritime accident investigation, marine claims, salvage and wreck removal. To err is engineering.” Presentations included Dr John Kokarakis, Vice President at Bureau Veritas, on maritime accidents and their Investigation; Stephen Tierney, Managing Director of TMC Marine on the raising of the SEWOL as well as Resolve’s

Daniel Dettor on the Group's emergency response offering and Matthew Bierwagen discussing marine firefighting and the removal of the wrecked AMADEO from a remote location in Chile.

International Tug, Salvage and OSV Convention report Ms Coll also summarised current salvage industry commercial and operational issues including containership fires, container content and weight declaration and relationships with the insurers. She said ISU is concerned that insurers are driving down the cost of services to the point where there is a threat to the ready availability of professional salvors with their own equipment and people.

ISU President, Ms Charo Coll (above), gave the keynote speech in the salvage stream of the International Tug, Salvage and OSV Conference in Marseille. She used the occasion to reveal for the first time the ISU’s statistics for 2017.

Other speakers included Matthew Moore, claims director for the North of England P&I Club, who described the sequence of contractual events during a typical casualty situation highlighting the increasing interest for a liability insurer as the situation develops or worsens. Mr Moore also discussed relations between the Clubs and the salvors and, quoting the Rolling Stones (who had played a concert next door to the conference centre the night before), he said: “You can’t always get what you want,” before adding “it’s a negotiation.” But Mr Moore 5

said that he did not want salvors and Clubs to be in conflict when they should cooperate. ISU’s communications adviser, James Herbert, discussed “stakeholder engagement” in the context of managing major marine incidents. He said it was a neglected activity but, using examples from ISU members, he said it could be the most important element to the successful outcome of a job. Lawyer, Simon Tatham, of TugAdvise/ Tatham Macinnes, set the delegates a quiz in which the circumstances of real Lloyd’s Open Form cases were given and they were asked to estimate the salvage award with varying levels of success. And Deep Tek’s Moya Crawford linked the attitude, skills and technology of salvors to the challenges of the offshore sector.


T&T Salvage operational round-up T&T Salvage reports that it responded to marine salvage incidents worldwide in the early part of 2108, including operations in North and South America, the Caribbean, and the Mediterranean Sea. T&T’s Great Lakes Response Center used its custom ice-cutting machines to contain pollution threats from the abandoned tug ROBIN LYNN (right). Salvage crews ultimately refloated the vessel, safely removed all contaminants and prepared the vessel for tow. Elsewhere a ship’s anchor dragged across pipelines and communications cables in the Mackinaw Straits which link Lake Michigan and Lake Huron. T&T managed hydrographic survey and ROV operations to locate, recover and cap the damaged communications cables.

fire was contained and put out before working with the US Coast Guard to assess stability and develop a salvage and transit plan to bring the damaged vessel into port the same day as the incident.

T&T also responded to a dredge fire off the coast of Texas, quickly ensuring the

T&T also completed the removal of more than one hundred abandoned vessels

in Puerto Rico, and was praised by the US Coast Guard for successfully supporting the region’s historic hurricane response and recovery mission. In the Mediterranean, a major cargo lightering and refloating operation was successfully undertaken by T&T to salve a fully laden cargo vessel which had grounded heavily during stormy weather conditions.

Tsavliris operations In March, Tsavliris Salvage was engaged to assist the bulk carrier PANAMAX ALEXANDER laden with 70,260 tonnes of low silica acid pellets. The vessel was immobilised due to propulsion breakdown about 600 nautical miles west of Bishop Rock, UK while on passage from Canada to Belgium. Tsavliris arranged for the AHT UNION MANTA (20,000 BHP – 205 TBP) to sail immediately from OPL Anchorage Scheveningen, Netherlands. The salvage tug arrived at the casualty’s position on 6 March and towage commenced to Flushing roads. Due to adverse weather conditions, the salvage tug deviated from her route on several occasions in order to head into the strong winds. On one occasion the tow connection was lost but was soon reestablished and the vessel arrived safely at Everingen anchorage for lightering before continuing to Arcelor terminal, with the assistance of pilots and five port tugs, to complete discharge.

In another bulker case, Tsavliris provided services to the PEPPINO BOTTIGLIERI, dwt 93,251 tonnes and laden with 74,300 tonnes of soya bean meal and maize. She was outbound from Bahia Blanca, Argentina, heading for Vietnam and grounded about 1.9 miles from San Juan light-house. Tsavliris Salvage were contracted and on the same day a salvage master and a salvage officer boarded the vessel, while

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the tugs ONA TOPAZ (BHP 5,150 – 75 TBP) and ONA TRIUNFO (BHP 5,086 – 75 TBP) were mobilised from Bahia Blanca. After an underwater inspection the casualty was successfully refloated by the tugs and escorted to an anchorage for inspection as directed by the port authorities before the operation was completed and the services were terminated.


Associates’ and Affiliates’ News to statistics and market developments; new technologies such as blockchain; unmanned shipping and smart logistics highlighting their importance to marine insurance, as well as discussing specific challenges to the Asian market such as the development of the port infrastructure.

The ISU welcomes the following new Associate Members South Sea Towage Limited 25 Eliza Street, Walu Bay, Suva, Fiji Island Telephone +679 3312488 Email: savenaca@sstl.com.fj Web address: www.southseatowage.com Activities: the largest tug company in Fiji contracted to major ports on the main island berthing and unberthing vessels. Salvage and ocean towage. Atlatech Divers and Salvors CC 8 Duncan Road, Table Bay Harbour, Cape Town, 8001, South Africa Telephone +27 21 4254414 Email: carol@atlatech.co.za Web: www.atlatech.co.za Activities: video surveys and inspections for in-water surveys; underwater blanking of apertures and hull damage; sealing of stern tubes; salvage; pollution prevention; pumping of cargoes; slops and sludge. Hill Dickinson Hill Dickinson has added to its Piraeus team with the appointment of finance and corporate partner Jasel Chauhan, senior associate Anthony Paizes and legal assistant Foteini Sfyndili. Jasel joins from HFW where he headed the ship finance and corporate practice in Piraeus and will be Head of International Finance. Jasel has over 10 years’ experience of corporate and finance transactions in the marine sector and has been based in Greece since 2009. Anthony also joins from HFW and is qualified in South Africa, England & Wales, Greece and the Cayman Islands. Foteini adds further offshore experience from the Cayman Islands and over 12 years’ experience working with international and domestic law firms in Canada. Sea Contractors In May, the multi-purpose vessel SPAARNEGRACHT was reported to be drifting about 700 nautical miles N-NW of the Azores with engine problems. The SPAARNEGRACHT was underway from Husum, Sweden to Baltimore, USA with a cargo of paper products.

At the same time the DIAN KINGDOM was underway to Rotterdam coming from the south. After contract terms were agreed it was decided to divert DIAN KINGDOM to Flushing where she took bunkers and stores over-night and headed towards SPAARNEGRACHT the next morning. The mobilisation was some 1500 nautical miles taking the DIAN KINGDOM seven days. Within 30 minutes of arriving at the casualty, the DIAN KINGDOM made the connection and the convoy set out for Rotterdam. After a smooth journey the DIAN KINGDOM safely delivered the SPAARNEGRACHT to her owners at SCA Logistics Interforest Terminal in Rotterdam, the Netherlands. IUMI In April, the IUMI Executive Committee launched the first IUMI Asia Forum. This new regular conference is a further element of IUMI’s education strategy and will take place annually in different locations in Asia. The concept behind this differs from the main conference in September as it contains a large amount of local content from the varying markets in the Asia region. The General Insurance Association of Singapore (GIA) was the host of this year’s Asia Forum. The two-day conference, with over 200 participants from Singapore and abroad in attendance, touched many highly topical issues relevant for marine insurers. For the first time this IUMI conference addressed not only insurers, but also business partners including brokers, clients and service providers. This further enabled attendees to have an in-depth dialogue on relevant market issues. During the two-day event many speakers provided an update on topics related 7

In a key note presentation, IUMI President, Dieter Berg, gave an update on matters relevant issues and IUMI’s strategy for the future. The conference took place during Singapore’s annual maritime week and was supported by the Maritime Port Authority of Singapore (MPA). IUMI has also renamed its Political Forum as the Policy Forum in order to avoid any idea that the forum was politically motivated. The term “policy” is considered more accurate for the overall purpose and work of the forum. Moore Stephens Shipping confidence held steady in the three months to end-May 2018 according to the latest Confidence Survey from international accountant and shipping adviser Moore Stephens. The average confidence level expressed by respondents was unchanged at the four-year high of 6.4 out of 10.0 recorded in February 2018. Confidence on the part of owners was also sustained at a four-year high of 6.6, while managers’ confidence was up from 6.4 to 6.7. The rating for charterers was up to 6.7 from 5.0 and confidence in the broking sector was up from 6.1 to 6.3. The survey was launched in May 2008 with an overall rating for all respondents of 6.8. The survey was launched in 2008 just months before the Lehman Brothers bankruptcy which was to trigger a protracted global financial recession. Shipping markets were buoyant at the time, with an average confidence level of 6.8 out 10.0. Moore Stephens’ Richard Greiner said: “Ten years is a long time in shipping, and the past decade has doubtless felt a lot longer still to those industry participants who have lived through it, even those inured to the peculiar cyclicality of the industry. Confidence may have fluctuated, but it has never collapsed, and portents for the coming decade can reasonably be expected to be better.”


Resolve recovers containers In March, Resolve Marine was contracted under its Global Partnership Agreement to provide assistance to a large containership which suffered a collapse of container stacks off the east coast of the USA.

There was an initial attempt to recover the containers using local resources but few of the lifted in the 30 day operation. Most of the containers were buried and damaged with their contents spread across the sea-bed.

Several containers were lost at sea. Resolve used its in-house sonar equipment and ROVs to target and mark lost containers and was contracted to bring to the surface the sunken containers and lift those that were floating.

Resolve was contracted to complete the job. Because of the the limited visibility, Resolve decided to use live 3D modeling of the seabed, again with its in-house high resolution 3D CODA equipment, outfitted on a crane barge.

Resolve mobilized a salvage team and assets to remove the damaged containers and cargo at Freeport, Bahamas (right) and stabilise the listed containers. It comes after a similar Resolve operation off the port of Santos in Brazil where a containership lost 47 containers overboard in heavy swells. The Captain of the Ports of SĂŁo Paulo ordered the containers be removed as they were a hazard to other vessels. The Brazilian Institute of the Environment and Renewable Natural Resources

(IBAMA) was also concerned about the environmental risks due to the contents of the containers. Santos bay is exposed and subject to heavy swells year-round. It means underwater visibility is zero and heavy silting causes challenges to any recovery operations which need to use divers.

Kea Trader latest

detached during the storms, with approval by the authorities. This will involve the mobilisation of new heavy lift resources, the design of which is currently subject to complex engineering studies, with safeguards to the local environment continuing to be a priority.

Shanghai Salvage Company (SSC) personnel and equipment are continuing to assemble in New Caledonia ready for the removal of the wrecked 2,194 TEU capacity container ship KEA TRADER from Durand Reef, in the south Pacific. The 19,000 tonne JU LI, a logistics support and command platform for the preparatory operations, was the latest SSC vessel to arrive on site. SSC took over the project on April 6 following a comprehensive handover from Ardent. When conditions have permitted, workers have continued to remove remaining materials from the cargo holds and flotsam from the accommodation block. However, work on site has continued to be hampered by adverse weather conditions and damage to the vessel caused by two cyclones. Storms in late May further moved the forward section of the vessel, leaving it

Live sonar data was used to position the barge over the target area, with the real time 3D imaging available in the crane operator’s cabin. The boom tip was fitted with DGPS system, which allowed the grab to be accurately positioned on top of the debris. Limited diver intervention was required and the services were provided with no additional damage to the environment.

listing by 18 degrees and safe access for workers to both sections is only possible during particularly favourable weather conditions.

Independent experts are also undertaking an updated and comprehensive bathymetric survey to determine the surface conditions of the hard rock reef and the precise location of any debris.

Following a comprehensive assessment of the condition of the structure, SSC is in the process of adapting its methodology for removing the remaining two sections of vessel and other pieces of the superstructure that have been

The newly built KEA TRADER was sailing from Papeete, in French Polynesia, to NoumĂŠa in New Caledonia, loaded with 782 container units and flat-racks, when she ran aground on in July 2017.

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Intercargo publishes bulker casualty report

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It came as Intercargo published its latest Bulk Carrier Casualty Report, which provides an analysis of bulk carrier total losses between 2008 to 2017. The report has been submitted to the IMO for the consideration of the Member States, Non-Governmental Organisations and other interested parties.

Average lives lost

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In March 2017, the sinking of the STELLAR DAISY, carrying iron ore, resulted in the loss of 22 seafarers. Intercargo praised the Search And Rescue (SAR) efforts in response to the sinking but warned that the shipping community should be concerned about the non-availability of sufficient SAR capabilities in the vicinity of busy shipping lanes around the world and should “revisit this issue”.

age lives lost

There have been many factors contributing to the safety improvement, including the introduction of adequate safety requirements by IMO Flag States; the role of IACS; PSC regimes and the best practices and large investments by the bulk carrier industry. But Intercargo says further work needs to be done in order to continue the trends with the ultimate goal of no lives or ships lost. In addition to the loss of the STELLAR DAISY, 2017 saw the sinking of EMERALD STAR, loaded with nickel ore, and which claimed the lives of 10 seafarers. The industry expects that the full investigation reports will provide answers and highlight the lessons to be

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Analysis of Intercargo’s casualty records from 1994 to the present day indicates a gradual improvement over the years in the numbers of lives and ships lost. The two graphs (right) show the average number of lives and ships lost over rolling ten-year periods and clear downward trends are observed.

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Between 2008 and 2017 there have been 53 total losses of bulk carriers of 10,000 tonne deadweight and above with the reported loss of 202 seafarers.

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The Bulk Carrier Casualty Report 2017 again highlights that cargo failure, including moisture related cargo failure mechanisms, is one of the greatest concerns for the safe carriage of dry bulk over the past 10 years and is probably the cause of the loss of 101 seafarers’ lives and nine vessel losses.

Average ships lost

learnt from this loss and others.

grounding, collision and allision.

Intercargo also highlighted the incident on the 57,000 dwt CHESHIRE in August 2017 involving high temperatures in the cargo holds and the release of gases from the cargo. It again raised serious concerns with the carriage of ammonium nitrate based fertiliser. The shipping industry welcomed the publication of the IMO circular on “Carriage of Ammonium Nitrate Based Fertilizer (nonhazardous)” on 22 Sept 2017; however bulk carrier owners and masters are expecting prompt and clear mandatory safety requirements to avoid recurrence of the CHESHIRE and PURPLE BEACH incidents.

Intercargo noted that the preliminary findings highlight ship safety issues relating to the human factors leading to grounding and collision, as well as to equipment failures. The trade body said it “will strengthen communication with stakeholders on crew training, equipment design and manufacturing, and shipbuilding and explore joint projects to introduce and implement appropriate measures. Following the example of IACS and its Common Structure Rules, the bulk carrier industry would wholeheartedly welcome initiatives and safety measures from other industries.”

Analysis of bulker incidents in 2016 and 2017 shows the most common are machinery and technical-related followed by main engine issues then

The report is available at https://www. intercargo.org/bulk-carrier-casualtyreport-2017/

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International Monitor Paris MoU performance France, Cayman Islands UK, Netherlands, Denmark and the UK head the "White List" for Paris MoU performance in the new lists.The UK Ship Register has risen four places.

calling on all EU Member States to urgently address the legitimate concerns raised by the Italian government about the large number of rescued persons arriving in Italy in order that the policy of prompt and predictable disembarkation can be maintained." IMO reform Australia, supported by others, has called for reform of the IMO in a bid to reconsider transparency and the role of industry bodies in the organization. There is expected to be a submission to the IMO Council meeting in July calling into question the existing role of the IMO Council and the IMO Assembly and seeking to facilitate greater transparency and the wider representation of maritime interests in the IMO.

Flag States’ records of Port State Control inspections form the basis of the socalled “White list” of high performance flags. There is also a “Grey” and “Black” reflecting lower performance The Paris MoU committee approved the 2017 inspection results at its meeting in May for flags and Recognized Organizations (RO). Italy The International Chamber of Shipping has said it is “deeply concerned” about the apparent new policy of the Italian Government to close its ports to migrants rescued by vessels operated by humanitarian NGOs. ICS said that refusal by Italy to allow rescued persons to be disembarked could have serious implications for the safety and welfare of these distressed people, including children and pregnant women. In recent years Italy has consistently permitted prompt disembarkation of people rescued by merchant ships as well as by vessels operated by humanitarian NGOs. But, following the election of the new Italian Government, this approach seems to have been reversed. ICS Secretary General, Peter Hinchliffe, remarked: “The primary concern of shipowners is humanitarian. In the interest of protecting safety of life at sea, ICS is therefore

The Australian submission suggests that discussions at IMO should be more open to the public and other stakeholders. It also refers to the decreasing accessibility of discussions and decisions within the IMO Council and Assembly for both member states and the public. Maritime security International shipping industry organisations, with military support, have launched a new website dedicated to providing comprehensive maritime security guidance to companies and mariners. The new website www.maritimeglobalsecurity.org provides security-related guidance produced by the industry as well as links to other useful maritime and military security resources. The aim is to ease access for companies and seafarers to maritime security related information and guidance. Central to the website are new best practice guides to help companies and mariners conduct risk assessments for voyages and to mitigate external threats to their safety. These are covered in three publications: • Global Counter Piracy Guidance for Companies, Masters and Seafarers. • BMP5: Best Management Practices to Deter Piracy and Enhance Maritime Safety in the Red Sea, Gulf of Aden, Indian Ocean and the Arabian Sea contains guidance for region-specific threats. 10

• The third edition of the Guidelines for Owners, Operators and Masters for protection against piracy and armed robbery in the Gulf of Guinea region is also provided. All three publications are free to download from the website. Emissions The shipping industry - represented by its international trade associations - BIMCO, ICS, INTERCARGO, INTERTANKO and WSC – has called on the Member States of the IMO to make progress on the global sulphur cap amid safety concerns. The trade associations have co-sponsored a number of submissions to IMO to help smooth the implementation of the global 0.5 percent sulphur-in-fuel cap, in advance of the critical meeting that will be held in London during the second week of July. The industry bodies say they are fully committed to successful implementation of the global sulphur cap on 1 January 2020. But they say that the worldwide implementation of this “game-changing” new regulatory regime will be far more complex than the previous introduction of sulphur Emission Control Areas for shipping not least because of the sheer magnitude of the switchover and the quantities and different types of fuel involved. The associations say that, on top of the absence of global standards for many of the new blended fuels that oil refiners have promised, there are potentially serious safety issues, including those related to the use of compliant but incompatible bunkers. They point out that, if bunkers turn out to be incompatible, it could lead to loss of power on the ship.

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Salvage World Q2 2018  
Salvage World Q2 2018