Salvage World Q3 2018

October 2018

INTERNATIONAL SALVAGE UNION

Three ISU members in Orkney Islands joint operation A consortium of ISU members, Ardent, Multraship and Wagenborg successfully salvaged the Dutch cargo vessel PRISCILLA off the Orkney Islands in the UK in July.

The vessel, laden with 3,000 tonnes of bulk fertiliser, had run hard aground on the Pentland Skerries while on passage from Lithuania to Silloth in northwest England.

There were no injuries to the crew of six.

In addition to the cargo, the casualty was carrying 52 tonnes of marine gas oil, four tonnes of heavy fuel oil and two tonnes of lubricants.

The Scottish ETV, IEVOLI BLACK, operated by Ardent and Marnavi, had been mobilized initially and attended with MULTRATUG 20 and the tug GREEN ISLE. After being awarded the LOF, the joint-salvors mobilised a salvage team and a spread of salvage craft and equipment including MULTRASALVOR 4 and MULTRASALVOR 3 as well as a receiving vessel and barges to take the vessel’s cargo.

After discharging and de-ballasting operations, the salvors managed to refloat the vessel and keep her stable until all cargo was discharged into the receiving

vessel. Following a dive inspection, PRISCILLA was safely redelivered to her owners in Scapa Flow on 27 July.

The salvage operation was overseen by the acting SOSREP Hugh Shaw (filling the post temporarily out of retirement) and a UK Maritime and Coastguard Agency team of salvage and environmental experts.

The contractors report that throughout the operation they enjoyed close liaison with the stakeholders and community, SOSREP and the activated Salvage Control Unit.

MULTRASALVOR 4 discharging cargo from PRISCILLA on the Pentland Skerries

IUMI annual statistics - "hull sector remains a serious concern" The International Union of Marine Insurance (IUMI) has published its annual statistical report on the marine insurance market. It shows that global marine premiums were up by 2% but IUMI highlighted an increasing “mismatch” between income levels and covered risk.

compared with 2016. This upswing is largely attributable to growth in trade plus strengthening of European and other currencies against the US dollar. But it masks the dramatic situation which is unfolding when current premium levels are viewed in relation to covered risks and the impact of claims.

IUMI’s Facts & Figures Committee vice chair, Astrid Seltmann said: “Overall premium income reached US$ 28.5 billion in 2017 which represents a 2% increase

“The cargo market was recently affected by unprecedented natural catastrophes and outlier event losses and this has negatively impacted underwriting results.

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"It also signals the increasing, and often unknown, accumulation of values both on shore and at sea.

“In the hull market, falling vessel values have, among other market conditions, contributed to an erosion of income to a degree where income is now not sufficient to allow for normal repair costs in a given year. This downward trend is particularly worrying given the relative absence of major hull losses in recent years.

IUMI annual statistics continued “The last ten years’ statistics clearly show an increasing volatility in the impact of claims on underwriting results caused by the random occurrence of claims with unprecedented cost. As vessel sizes continue to increase, this trend will not reverse and the heightened risk must be taken into account. The shipping and insurance industries will have to embrace this level of volatility and uncertainty which may impact future profitability.

marine portfolio.”

“In general, the IUMI statistics clearly illustrate the need for sustainable underwriting by understanding the simple - and sometimes not so simple mathematics of evaluating the risks and expected costs associated with a prudent

For global marine premium by line of business, cargo continued to represent the largest share with 57% in 2017, hull 24%, offshore energy 12% and marine liability (other than P&I) 7%.

Kea Trader update

Marine operations on both major sections are further complicated by the limited water depth, angle of list and the debris field.

The removal of the wreck of the container ship KEA TRADER continues on the Durand reef in the South Pacific with Shanghai Salvage (SSC) as the main contractor. It is a shallow, flat topped, hard rock reef 40 nautical miles south east from the nearest land, Mare Island, and 130 nautical miles from the nearest port of Noumea.

The elevated position on an exposed rock in the middle of a vast ocean means the site is often subject to bad weather and difficult sea conditions with swells that often break across the whole reef. It has had a major impact on the condition of the vessel and added complexity to the project.

The mid-section of the vessel has degraded further and now lies as a debris field between the forward and aft sections.

The distribution of the US$ 28.5 billion global income between geographic regions remained stable, with only a 1% increase in the share of Asia and Latin America as compared with Europe. In 2017, Europe represented 49% of the global income, Asia/Pacific 29%, Latin America 10%, North America 6%, Middle East 4% and Africa 2.4%.

Following the completion of a new and comprehensive bathymetric survey to ensure safe operations on site, an area of the reef adjacent to the wreck is being cleared of debris by divers using a variety of lifting aids, including airbags, before scrap steel is transferred ashore at New Caledonia for recycling. More than 200 hull pieces amounting to 100 tonnes of steel has been recovered to date.

Opportunities to board and undertake work have reduced as time has passed and the condition of the vessel has become more hazardous. When safe boarding has been possible, the Shanghai Salvage team has removed all accessible and potential flotsam while monitoring for any pockets of pollutants. The vessel

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Chair of IUMI’s Facts & Figures Committee, Donald Harrell, summed up the statistics, saying: “The modest increase in absolute global premium income does not reflect any actual market development. When taking all factors into account which influence both income and cost, we see a contrary picture. The hull sector remains a serious concern for our business and underlines the need for robust risk evaluation. Static or reduced global premium income in all our sectors coupled with a growing overall risk profile is a concern for marine underwriters worldwide.”

The full statistics presentation is available to download from www.iumi.com

continues to be clear of both.

The remaining large task is the removal of the two hull parts and the structural debris field. Plans for this are well advanced, with the intention to mobilise new heavy resources with heavy lift capabilities - the design of which is subject to complex engineering studies and final approval by the authorities.

It forms part of a revised methodology for removing the vessel, which has been required given its changing condition and is being designed to continue to provide safeguards to personnel working on site and to the local environment.

In the meantime, SSC will continue to monitor the wreck and ensure the reef environment remains protected, while also continuing to remove further smaller-sized debris from the reef when sea conditions permit.

ISU NEWS International speaking opportunities ISU Executive Committee members have represented the association at important international conferences.

ISU Vice President, Smit Salvage Managing Director, Richard Janssen, gave the opening speech at the Salvage and Wreck Asia Conference in Singapore and ISU Executive Committee member,

Ardent CEO, Peter Pietka, gave the opening speech at the China International Rescue and Salvage Conference, CIRSC, in Hangzhou, China (below).

It is part of ISU’s intention to increase its representation with stakeholders and recognises the importance of Asia to the salvage industry.

Salvage and Wreck Conference London ISU is again supporting the KNect 365 Salvage and Wreck Conference in London from 5 - 7 December 2018.

The organisers say they have refreshed the agenda for 2018 to “reflect the changing nature of the industry and provide in-depth insights with a focus on four learning tracks covering legal and insurance issues; oil and HNS spill response; practical demonstrations of new salvage technologies and assessment of wreck removal challenges.”

Alongside the main conference, there is a one-day event – the Maritime Accidents & Emergencies Summit – which aims to “boost participants’ expertise in effective planning and response, including search and rescue operations, for maritime incidents.”

ISU full members are entitled to a 40% discount from the standard rate with VIP code FKT3429ISUAM. ISU associate members will save 25% with VIP code FKT3429ISUAM. For more information please go to: http://bit.ly/Salvage18

Mark Hoddinott

MV RENOS

ISU General Manager, Mark Hoddinott, will be retiring in mid-December. The handover of duties to new Secretary General, Roger Evans, is well underway and Mr Evans will assume day to day responsibility following the AGM. Mr Hoddinott will focus on concluding his work with the International Maritime Organisation on Places of Refuge in order to provide continuity.

In the important case of the RENOS, the Appeals Committee of the English Supreme Court has decided to grant leave to appeal to the Supreme Court on two issues:

2018 Annual General Meeting The ISU AGM 2018 will be held on 25 October at the Table Bay Hotel, Cape Town, South Africa, sponsored by Resolve Marine Group. The AGM will be preceded by a meeting of the Executive Committee on 23 October and there will an associated programme of social events. Any members wishing to attend who have not yet booked, should contact the ISU Secretary General urgently.

New ISU administrative assistant

• whether in general, pre-Notice of Abandonment costs can count towards a Constructive Total Loss (CTL) calculation.

• whether the specific costs of SCOPIC remuneration paid by an owner can count towards a CTL calculation.

The original decision was that SCOPIC costs could be included which has significant commercial implications for owners, insurers and salvors.

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ISU is delighted to welcome its new administrative assistant, Ciara McGarry, who started work in the first week of October.

Ms McGarry will work in the ISU's office in the City of London under the direction of the Secretary General on a range of administration and finance tasks.

Ardent operational news

Landing craft PERMATA 2 grounded in Indonseia

Ardent has recently completed the highly technical operation to remove heavy fuel oil, diesel and lubricants from the wreck of the MANOLIS L in Notre Dame Bay, Newfoundland.

The general cargo vessel had been carrying 3000 tonnes of newsprint when she went down in 1985 in 70 metres of water. In 2013, pollution in the vicinity was traced to the wreck by the Canadian authorities.

Sealing devices were installed on the wreck but the threat of pollution remained and the authorities issued a requirement for a contractor to remove the oil and leave the hull in a “tight” condition. The contractor was required to heat and pump the bulk fuel tanks and then flush them in a cycle until an agreed end point. Other tanks were to be flushed as well.

To meet the requirement, Ardent used its dedicated oil removal system. Access to the tanks was made by the PEER hot-tap system designed, engineered and developed by Ardent. It includes a bespoke pumping/heat exchange skid designed to be installed on the wreck and secured by electro-magnets or on the seabed as close as possible to the PEER hot taps, allowing for minimal head pressure.

An umbilical carried the steam from the boilers on the DSV to the pump/heat exchange skid. The PEER installation, hot tapping, circulating, pumping and recovery was powered by a Work Class ROV. The hose connections to offload points are designed for ROV operations as well as being “diver-friendly”. The pump/heat exchange skid is also

equipped with pressure and temperature sensors and the system includes a number of safety measures designed to reduce the risk of accidental oil spill.

Work began in early August monitored by the Canadian Coastguard and other authorities as well as regional and local stakeholders. The operation was concluded successfully in early September.

Other operations Ardent reports that close cooperation between its regional team and key partners has led to a number of successful operations in Argentina over the past months, particularly in response to river groundings.

The vessels assisted and successfully returned to service include the bulk carrier SEAS 5 which grounded in Rosario port; the GLEAMSTAR, a laden bulker, re-floated and escorted to safety after grounding in the Parana River where she was hindering navigation

Thermal image of Ardent's PEER system

and the laden TIENTSIN, also re-floated after grounding in the Parana River.

Ardent and its partners also provided an escort tow to the GLORY HONG KONG bulk carrier, following the loss of its anchor off Montevideo and to the SSI DIGNITY on the Parana River.

On the western side of South America, the fish carrier SEIKONGEN reported water ingress and loss of bouyancy in 2017. The Master took ship to shallow water and intentionally grounded her to avoid total loss but the brand new vessel nevertheless capsized. The 11 crew were safe.

Following an initial engagement, Ardent commenced onsite preparatory operations in late 2017 but full operations to remove the vessel began with the mobilisation of a team and equipment in June 2018. Ardent’s proprietary hydraulic chain pullers were installed ashore to first parbuckle the casualty. Once upright, an extensive patching operation culminated in a successful re-float in August. The vessel has since been towed to safety for controlled removal of the cargo of rotten fish to mitigate potential health hazards.

The operation continues.

Ardent has conducted several operations in Indonesia together with its regional partner PT Salvindo Perdanatama. In July, the LPG tanker PAZIFIK was refloated after grounding off Komodo Island and the landing craft, tank (LCT) PERMATA 2 was refloated off Banyuwangi. The bulk carrier CERBA was recovered following a lightering operation.

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Members’ News New Member

Boluda

ISU welcomes the following new member:

The tug VB CIMARRÓN from the Boluda Towage and Salvage fleet in Panama seen in action with the EAGLET dredger

as part of the construction of a mega-port at Panama City. The port will have a container terminal with a capacity of 2.5 million TEU.

Global Diving & Salvage

and coal passes through.

and in currents up to 4 feet per second.

The US Army Corps of Engineers hosted a ceremony to open the new Olmsted Locks and Dam on the Ohio River – the largest project in the history of the Corps.

The dam and locks were built “in the wet” with large sections of the concrete structure first fabricated on shore then moved into the river where they are positioned and set into place.

“This has been a project for the recordbooks,” said John Graham, Director at Global. “With more dives than ever completed on a single project, and the innovative “in the wet” process, Global is proud to have been part of this historic undertaking".

Med Marine Omer Avni Mah. Inebolu Sok. No 21, 34427 Setustu – Kabatas, Beyoglu Istanbul Turkey +90 212 311 1800 info@medmarine.com.tr Contact: Recai Hakan Sen

Global Diving & Salvage has worked on the project since 2010 and has safely and successfully supported all dive related services for in-water construction, completing more than 15,000 dives.

The Olmsted Locks and Dam was designed to replace two outdated lock and dam systems on the Ohio River, greatly reducing tow and barge delays.

It lies on the busiest stretch of river in the US where each year nearly 100 million tons of freight such as corn, soy beans

Five Oceans Salvage In July, Five Oceans Salvage provided services under Lloyd’s Open Form to the bulk carrier SAM LION - 57,200 dwt and built in 2012. She was laden and on passage from Turkey to Senegal and sustained bottom damage while approaching Ceuta for bunkering. There was water ingress into a number of tanks.

The large precast sections are positioned onto new piling and secured with castin-place concrete and anchors. Global provided all underwater inspection, piling tolerance quality, positioning of precast segments, placement of underwater concrete and underwater cutting and welding. Divers worked in depths from 10 to 70 feet

Five Oceans Salvage signed a LOF with the owners the same day and mobilized a salvage team from Greece and Ceuta to assist and also engaged local port tugs to help the vessel with berthing. The services were successfully completed and the vessel was redelivered alongside in Ceuta.

Elsewhere, Five Oceans Salvage’s 5

Commercial Director, Kyriakos Mitsotakis, presented a paper on cooperative working between salvors and the authorities at ACI’s 9th Maritime Salvage & Casualty Response conference in London. Mr Mitsotakis used the BENITA grounded in Mauritius in 2016 as a case study and explained how cooperative relationships helped to achieve a positive outcome for the operation.

Members’ News continued Multraship In fleet news, Multraship has christened the 453-gt Fire-Fighting tug MULTRATUG 31 at Terneuzen in the Netherlands. The 83-ton bollard-pull vessel was delivered in 2017 and Multraship managing director Leendert Muller said: “We are operating in a highly competitive market, employing all our resources across a wide range of different sectors. Indeed, we have been so busy that even our christenings are a little behind.”

Earlier in the summer, the Fire-Fighting tug MULTRATUG 7 was christened at Terneuzen. The 62-ton bollard-pull vessel was built by Damen in Romania and delivered to Multraship at the end of last year.

Multraship has also acquired a 50-ton bollard-pull ASD tug from a Turkish shipbuilder for its Terneuzen harbour operations. This vessel, named MULTRATUG 9, replaces a 33-ton bollard-pull vessel of the same name.

Two new DSV/salvage craft have also joined the Multraship fleet recently.

MULTRASALVOR 5 (formerly, SARA MAATJE VIII) was acquired at the beginning of this year, joining MULTRASALVOR 4 (formerly, VOS SHELTER) which was bought in 2017.

There is also a new MULTRATUG 29 in the fleet. The 2015-built tug of that name was sold to the Shetland Islands government and replaced by a 2018 Damen-built vessel with a higher bollard pull of 86 tons. Meanwhile, the 75-ton bollard-pull AHT/ASD tug MULTRATUG 28 has replaced MULTRATUG 30.

Earlier this year, Multraship took delivery of MULTRATUG 32, the first of two gamechanging Carrousel rave Tugs (CRT) Model L. Multraship has christened two Damen Stan Launch 804s, VB2

and MONTIS 5. The new launches will be operated by Multraship subsidiaries Montis Mooring Boatservice BV and Verenigde Bootlieden BV and will replace former vessels of the same name which are to be sold to Poland.

Finally, Multraship and its group partner, Novatug, have been nominated for the Maritime KVNR Shipping Award 2018 for their “combination of successful realization and implementation with a vision for the future that goes beyond their own company."

Resolve Marine Group Resolve and its subsidiary, 1-Call Alaska, have recently expanded their services in Alaskan waters. 1-Call Alaska has opened response depots in Homer and Nome, Alaska which adds to its warehouse in Anchorage, response depots in Juneau and response base and drydock facility in Dutch Harbor.

equipment depots. Assets are able to be quickly mobilized using Resolve’s own aircraft to almost anywhere in Alaska.

Resolve has its salvage tug RESOLVE PIONEER, with salvage equipment and oil spill response equipment, on station ready to respond to vessel casualties in the high traffic areas near Unimak Pass.

The expansion has resulted in coverage for all of the Western Alaska and Prince William Sound Captain of the Port Zones and Resolve says it enables 1-Call Alaska to become a leading Alternative Planning Criteria (APC) provider in Alaska. OPA90 requires vessels transiting Western Alaskan waters to have APC coverage in place.

Resolve says the OPA-90 regulations are “problematic” for vessels moving through the Aleutian Islands which are distant from the infrastructure necessary for compliance if a ship runs aground.

Resolve’s 1-Call Alaska Manager Todd Duke said: “Due to this, ships must take additional precautions, such as remaining fifty or more miles offshore. Resolve’s 1-Call Alaska program is all about preventing incidents from occurring and mitigating risk.

Resolve says 1-Call Alaska focuses on emergency response - getting to a vessel in distress as soon as possible and preventing pollutants from entering the sea. It needs a large amount of air-portable salvage equipment ready to deploy at short notice as well as larger

“We monitor the traffic moving through the Aleutians using AIS technology and make sure they are complying with routing measures,” Duke says. “And 6

then, if we see an anomaly drifting, we'll contact that vessel, determine if she has a potential problem, and, if they do have a problem, that's when we start launching some of our resources and assets out of Dutch Harbor.”

Resolve assets at work in Alaska

Smit and Nippon - remote South Sea refloating operation In June, Smit Salvage and Nippon Salvage Company were awarded a salvage contract as co-contractors to provide services to the general cargo vessel THORCO LINEAGE which had grounded off a remote atoll called Raroia, part of the Archipelago de Tuamotu, French Polynesia (Tahiti).

Smit and Nippon rapidly deployed a team of salvage experts from Houston, Singapore and Japan to Tahiti and two salvage masters then went to the casualty by a Falcon jet and finally by helicopter with both aircraft provided by the French Airforce.

Once onboard the grounded vessel it was clear that she was in great danger with a risk of breaking up due to her direct exposure to high winds and extensive swells.

The remote location meant there were no suitable tugs in the vicinity except for the French Navy multipurpose vessel Bougainville. It seemed to be the only option to pull the casualty off the reef as soon as possible and so avoid severe pollution.

The French Navy vessel was quickly contracted and, under the instructions and directions of the salvage team she approached the THORCO LINEAGE to fire a Line Throwing Rocket with a thin nylon rope from her aft deck over the

bow of the casualty. Increasingly heavy ropes were pulled across until the team could finally make a connection with steel towing wires. The connection was established within one hour.

The THORCO LINEAGE was refloated and harbour tugs from Papeete Port Authority, contracted by the salvors, rendezvous-ed with her to tow her to Papeete Port for a damage assessment and emergency repairs.

It was discovered by divers that the vessel sustained severe damage which required emergency repairs by the salvors before the vessel could depart to its designated discharge and permanent repair port in South Korea - a voyage of

6000 nautical miles. During the voyage Smit said the salvors on board had “their hands full to monitor, adjust and repair the vessel.�

The convoy safely arrived at South Korea in early September and local harbour tugs took over the tow to a terminal to discharge the cargo under the supervision of the salvage team and then the vessel was safely redelivered.

Other Smit operations Elsewhere, Smit provided salvage assistance to the containership SSL KOLKATA - 9900 gross tonnes - which caught fire in the Bay of Bengal and grounded close to the Sunderbans UNESCO World Heritage site.

Smit continues to work on removing the pollutants from the vessel although the shallow location and the rough monsoon-season sea state are a factor in the operation.

Also, with the help of local partners, Smit successfully conducted three refloating operations in the Baltic Sea during the European summer.

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Associates’ and Affiliates’ News brand Marine Consultants

Briggs Marine

Winter Scott

bMC Group continues to expand and has added Captain Per Tyrsted Jorgensen (below) to the team in Singapore as vice president operations and strategy. Mr Tyrsted has significant experience in the marine industry, specifically in tanker management and business development.

Briggs Marine’s Environmental Services Division has reported on its work supporting Ardent Global on the KEA TRADER container ship which grounded off New Caledonia in 2017 (see also story Page 2).

Master Mariner Joseph Riley has joined London shipping solicitors Winter Scott, bringing very recent seagoing experience to the practice.

He started his career at sea in 1980 before coming ashore in 2000 and he has since then held several senior management positions most recently as vice president of commercial operations in a chemical tanker company working on company strategy and business development. At the same time, bMC announced that Kieran Hopkins will take on the role of vice president, operations and strategy for the bMC Hamburg office.

Briggs supplied emergency pollution responders, oil spill advisors and oil containment and recovery equipment.

The team was mobilised from Scotland and worked closely with Ardent, the French Navy, the ship owners and local authorities to ensure the safe operation of removing fuel bunkers and recovering any leaked hydrocarbons.

Briggs mobilised several vessels with spill response equipment and immediately trained the crews in safety and the use of oil spill response equipment including booms, skimmers, powerpacks and pumps. Vessel captains were instructed on ship manoeuvres when booms and skimmers are deployed.

The shore-based oil spill advisor drew up response plans for potential spill scenarios, which were submitted to the French Government for approval, and advised on all oil spill containment and recovery operations daily throughout the operation.

Bad weather created challenging conditions but when the vessel broke into two Briggs said the response plans remained the same but with a greater likelihood that the remaining hydrocarbons would be released.

Brand has also announced that Alex Leonard (above) has joined its team in London as a senior consultant. Mr Leonard was previously a response specialist and duty manager with Oil Spill Response Ltd. As a technical advisor, Mr Leonard has worked as a consultant embedded in the largest oil majors supporting crisis management teams in the development of emergency plans and designing and delivering response organisations from Africa to the Arctic.

And bMC Group unit, PANDI SERVICES J.&K. Brons GmbH has announced the appointment of Florian Block as Managing Director. He will work Jointly with Rolf-Jürgen Hermes on the company’s strategic and organisational development.

The four-man Briggs team worked on a continuous rota system for nine months and Jamie Campbell, Operations Manager of Briggs Environmental Services Division said: “The professionalism and commitment of all involved proved that, even in the most challenging locations, when working together as a team, you can resolve a potentially devastating outcome.”

Australian Maritime Safety Authority Toby Stone has decided to move on from AMSA where he was General Manager and Maritime Emergency Response Commander (MERCOM).

In Mr Stone’s place, the acting General Manager is Julian Mitchell and the responsibilities of MERCOM have been assumed by Gary Prosser.

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Mr Riley has served on a range of merchant vessels world-wide. His commands have included the Australian Government Emergency Towing Vessel (ETV) and the UK Trinity House flagship PATRICIA, commands which have brought particular knowledge of practical salvage and towage and current navigational practice. Mr Riley has completed his Graduate Diploma in Law (with distinction) and is now completing the legal practice course towards qualification as a solicitor.

IUMI Richard Turner, European Director of Global Risk Solutions at RSA Insurance Group, has been elected President of the International Union of Marine Insurance (IUMI).

Mr Turner, who has been closely associated with the global marine insurance market for 35 years, will serve a four-year term as President. He said: “IUMI is the global voice of marine insurance and is the professional body that represents national and international marine insurers.

"It brings together marine and offshore energy underwriters from across the globe and is highly respected throughout the marine and insurance industries. I look forward to continuing the good work of my predecessor and advancing IUMI’s agenda in a number of areas over the coming four years.”

Richard has had a long relationship with IUMI having served on the Executive Committee between 2011 and 2015 and, before that, as a member of the Nominating Committee.

Richard succeeds Dieter Berg whose four-year term of office was completed at IUMI’s recent Annual General Meeting.

Amendments to SCOPIC clause 9.(i) - the contractor’s right to withdraw or terminate SCOPIC services

By Rob Wallis, ISU Legal Adviser In August, important changes to the well-established SCOPIC Clause came into practice dealing largely with the termination of SCOPIC services by a contractor.

This has been a problem due to the complicated, and open ended, calculation required under Clause 9.(i) The question is often asked: “If the salvor has chosen to incorporate and invoke SCOPIC terms under LOF, why would they ever want to terminate those services?” The answer is: “If they are not going to be paid.”

Where SCOPIC is incorporated into a LOF and then invoked, the salvor is entitled to “initial” security of US$ 3 million within two working days. If no such provision is forthcoming (no guarantee of payment) the contractor can simply withdraw from SCOPIC and revert to a Salvage Convention Article 14 claim under Clause 4.

However, once SCOPIC services are commenced with the provision of initial security, the extent of those services may later require further security. If this is not provided (no continuing guarantee of payment) the salvor’s only right to terminate those services was to satisfy the terms of Cl.9.(i) The clause has therefore been reviewed over the past 18 months by the Lloyds Salvage Group (LSG) and its SCOPIC sub committee and the opinion of counsel Lionel Persey QC was obtained as part of this process.

The conclusion was that the existing clause 9.(i) was unworkable and provided the contractor with no meaningful right to terminate and such right should be allowed on the same basis as withdrawal.

If the contractor is not provided with increased security (no guarantee of payment), he can terminate without the need for any calculation as required under clause 9(i). Termination on this very simple basis is now found in a new clause 4.(ii) and clause 9.(i) is deleted.

It means that initial withdrawal and subsequent termination of SCOPIC services by the contractor are now both found in clause 4.(i) and (ii).

The shipowner’s right at any time to terminate their obligations to pay for SCOPIC services has not been changed but now becomes clause 9.(i). Termination by the contractors or owners can only apply if they are not “restrained” by the authorities from demobilising equipment. That has not changed except that the word “restrained” is replaced with the word “prevented” in clause 9.(ii).

Another connected matter has been the use of so called “side letters” to LOF/ SCOPIC and a new voiding provision to the ISU5 guarantee which provides SCOPIC remuneration security to contractors.

In view of increasing concern over the use of, or imposition on, salvors of such amendments the Lloyds Salvage Group unanimously agreed last year that Lloyds should immediately be notified of any side letter/side

MV Cheshire Casualty Investigation Report Intercargo has commended the Isle of Man Ship Registry, the Flag Administration of the vessel MV CHESHIRE, for the “timely publication and the clarity of the Casualty Investigation Report” into the loss of the vessel.

In August 2017, the CHESHIRE, a 2012 built supramax bulk carrier, was

en-route from Norway to Thailand, fully loaded with cargo declared by the shipper as being “Ammonium Nitrate Based Fertilizer (Non-hazardous)” and not liable to self-sustaining decomposition. Nevertheless it did suffer cargo decomposition in the midAtlantic that led to rising temperatures in the cargo holds and the generation of toxic gases. (Continues next page) 9

agreement (defined as “any agreement whatsoever that varies the provisions or terms of Lloyds Open Form”) and should be provided with a copy of such side letter/agreement. In the event of such notification, Lloyds will inform all interested parties of the existence of any such agreement but will not release or share the contents of the agreement with any other party.

To reflect this, a new clause 6 “voiding provision” has been added to the ISU5 guarantee form. Under this provision, the Club’s undertaking to provide security is on the basis that the underlying salvage contract is, and will remain, on the terms of the current edition of LOF with SCOPIC incorporated and invoked without any agreement whatsoever that varies its standard provisions or terms. In the event that is not the case, all obligations within the undertaking are void unless the Club confirms otherwise in writing.

These are significant changes to both LOF and the provision of SCOPIC security. They are not retrospective and became effective for new LOF/SCOPIC cases from 1 August 2018.

Salvors are highly unlikely to be the authors of such side letters/side agreements: they are imposed upon them by insurers as a condition of agreeing to use an LOF contract. The main effect of these agreements is to reduce the remuneration payable to the salvors for the benefit of all contributing interests.

The ISU’s policy remains to promote the use of LOF and SCOPIC in their unamended form.

MV Cheshire continued The decomposition progressed throughout the length of the vessel to such an extent that, after several days, the vessel’s Master took the decision to evacuate the crew.

The vessel was left to drift under the supervision of the Spanish Authorities until being salvaged by ISU member, Resolve Marine, but, in the end, the extensive damage meant the vessel was declared a constructive total loss.

The report makes important recommendations including: • amending the misleading cargo name from “Ammonium Nitrate Based Fertilizer (non-hazardous)” to “Ammonium Nitrate Based Fertilizer (not otherwise classified)” • the fertilizer manufacturers to provide further information on the behaviour and carriage of this cargo

• consideration of whether the current IMO-stipulated test for assessment of self-sustaining decomposition properties of an ammonium nitrate based fertilizer is adequate.

Ammonium Nitrate Based Fertilizer (non-hazardous) is currently designated in the International Maritime Solid Bulk Cargoes Code (IMSBC) as a group C cargo. These are cargoes that that do not liquefy (group A) nor possess chemical hazards (group B).

Other recommendations in the report include: the provision of specialist equipment onboard the vessel; monitoring of the cargo atmosphere by the crew and the development of cargo and ship-specific procedures related to the carriage of this cargo.

Intercargo said its “strong opinion” was that that these additional precautions, which are being called upon to be the responsibility of the vessel, “ought to be unnecessary if the cargo is group C.”

It is clear from this incident that this cargo, or at least some of the ammonium nitrate based fertilizers shipped as this cargo, should not be treated as group C.

The IMSBC Code, which is mandatory under SOLAS, stipulates that the shipper should provide the vessel with all the appropriate information that enables a cargo to be carried safely.

Intercargo said it hopes that future work at the IMO will lead to the correct designation and description of this cargo within the IMSBC Code to lead to safer carriage of cargoes and safer voyages.

Intercargo concluded that: “Accurate cargo information, provided by the shipper, is the cornerstone for the safe carriage of bulk cargoes.”

pull - from Yokosuka, Japan, to assist the tanker MR KENTAURUS, 46,540 tones dwt, and immobilised in ballast due to engine problems about 300 miles south of Yokosuka.

Elsewhere, in August, Tsavliris dispatched the AHT LANPAN 28 - 121 tones bollard pull - from Singapore to the bulker KAVO PLATANOS - 56,750 tonnes dwt and in ballast.

The vessel was towed to Wakayama Shimotsu anchorage and the salvage tug provided standby services while repairs were undertaken and the operation was completed.

She was disabled at Chittagong Roads due to propeller damage following a collision. The salvage tug arrived at the casualty’s position and towage commenced with the convoy arriving safely at Sudong anchorge, Singapore, after a two week tow.

Tsavliris cases In May, the bulk carrier ALKYON (right) - 36,056 tonnes dwt and laden with 28,000 tonnes of wood pellets - was immobilised due to an engine problem approximately 80 nautical miles north-west of Hamilton, Bermuda. The vessel was en-route from Panama City, Florida to Port of Tyne, UK. Tsavliris dispatched the ocean going tug ALP GUARD - 285 tonnes bollard pull - from Trinidad. On arrival a tow connection was established and towage to Norfolk, USA commenced.

All formalities under US Coast Guard regulations for a dead ship under tow to enter USA territorial waters were carried out by Tsavliris’ partners Resolve Marine.

After a three day tow, the convoy arrived at Cape Henry where the pilot boarded and the tugs GM McALLISTER and NANCY McALLISTER made fast and the vessel berthed alongside at Norfolk port.

In July, Tsavliris dispatched the AHTS SHIN CHOU MARU - 110 tonnes bollard

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Resolve heavy lift Resolve Marine Group has successfully raised the sunken derrick barge DB1 - claimed as the heaviest salvage lift ever attempted in the Americas.

It followed months of planning, engineering and on-site preparations.

A one-piece lift of the DB1 represented the most environmentally friendly removal method compared with other proposals to cut the vessel into pieces but was extremely challenging.

The 350 ft x 100 ft derrick barge DB1 sank 30 miles offshore in the Gulf of Mexico in 2017 when adverse weather caused it to drag anchors and contact the offshore platform that she was engaged in removing. Multiple compartments were breached and the DB1 came to rest on the sea floor and on top of the platform jacket structure.

Resolve mobilised assets from its salvage bases around the world including from Singapore, Fort Lauderdale, Florida and Mobile, Alabama. Assets included Resolve’s patented heave-compensated chain puller lift system deployed from the Resolve CONQUEST MB1 1400 ton derrick barge and RMG 302 crane barge. Resolve deployed a 40 strong team of salvage experts and divers, led

by Senior Salvage Master Andy Butts and Project Manager Mujeeb Ansari, to support the 24/7 operation. Numerous support vessels and other resources were engaged from the region.

After extensive preparations, including the installation of heavy rigging under

the DB1, the lifting gear was connected and the DB1 was steadily raised to the surface between the MB1 and RMG 302 with 6000 tons of lift force. Resolve then used the semi-submersible BOABARGE 29 to receive the DB1. The BOABARGE 29 submerged to the seafloor and the DB1 was winched over the top with just inches to spare. The submersible barge was then raised with the DB1 safely aboard and then towed to Brownsville, Texas, for dismantling and recycling.

Resolve’s Director of Operations, Todd Schauer said: “Raising the DB1 was an extraordinary engineering and operations challenge and I am extremely proud of the entire project team. Special recognition is extended to our key support partners including Conquest Offshore, BOA Barges, Offshore Towing, Offshore Marine Contractors, Smith Maritime, Tradewinds Towing, and Oceaneering. We also thank the

Multraship lifts sunken fishing vessel Multraship’s sheelegs, CORMORANT, seen lifting the SVARTLÖGA, which sank off the coast of the Netherlands near the beach resort of Zandvoort.

The operation was carried out jointly with the company DUC Diving.

Picture courtesy of Martin Boone

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owner team of Turkey Offshore Project Solutions, QBE Insurance and London Offshore Consultants for choosing Resolve and for facilitating a smooth operation.”

Elsewhere, in Alaska Resolve Marine lifted the sunken fishing vessel, PACIFIC KNIGHT. Resolve’s MAKUSHIN BAY was sent to the location and, on arrival, operatives were immediately transferred to her and she anchored over the wreck site to perform fuel removal operations.

Resolve was subsequently awarded the contract to remove the fishing vessel using the MAKUSHIN BAY, RESOLVE PIONEER and the RMG300 Crane Barge (see picture page 6).

The operation involved divers and airlifting under both the bow and stern of the vessel to run lifting chains before she was brought to the surface and dewatered in order to refloat under her own buoyancy.

International Monitor International Chamber of Shipping

Gas carriage

To assist shipping organisations to prepare for the UN IMO global sulphur cap for fuel oil, ICS has produced free guidance on implementation planning. It aims to help ensure compliance across the shipping industry with this regulatory requirement which ICS describes as a “game changer".

The International Chamber of Shipping has also announced that it will soon be publishing a new edition of the ICS Tanker Safety Guide (Liquefied Gas).

From the start of 2020, the great majority of ships will need to use fuel oils with a sulphur content of 0.5% or less.

ICS’s new Secretary General, Guy Platten, said: “Shipping companies may need to start ordering compliant fuels from as early as the middle of 2019 and they are strongly recommended to commence developing implementation plans as soon as possible.”

Apart from the significant additional cost of compliant fuel, ICS says that implementation of the global cap will be far more complex than for the previous introduction of Emission Control Areas.

This is because of the sheer magnitude of the switchover and the much larger quantities and different types of fuel involved as well as continuing uncertainties about the availability, safety and compatibility of compliant fuels in every port worldwide.

ICS argues that if a ship - as now recommended by IMO - has a suitably developed implementation plan, then the ship’s crew should be in a better position to demonstrate to Port State Control that they have acted in “good faith” and done everything that could be reasonably expected to achieve full compliance.

“This need to demonstrate good faith could be particularly important in the event that safe and compliant fuels are unavailable in some ports during the initial weeks of implementation” said Mr Platten.

“Provisional Guidance to Shipping Companies and Crews on Preparing for Compliance with the 2020 Global Sulphur Cap” is available from the ICS website.

The “ICS Gas Guide” is the definitive industry best practice guidance for gas carrier operators and is a carriage requirement under the national regulations of many flag states.

“It is strongly recommended that a copy of the completely revised third edition is carried on board every ship engaged in the transportation of liquefied gas by sea,” said ICS Deputy Secretary General, Simon Bennett The fully revised third edition (350 A4 pages with illustrations and cargo data sheets) replaces and supersedes the previous 1995 edition and will be published in December 2018.

China and Liberia The People’s Republic of China (PRC) and the Republic of Liberia have renewed their historic maritime agreement for an additional five years. The unprecedented five-year extension further strengthens the close relations between the governments of the two countries, and their long-term co-operation in the field of maritime transport.

Under this renewal, Liberian-flag vessels will continue to enjoy their preferential rate for tonnage dues when visiting any port in China. The Liberian authorities said the savings - a 28% port dues reduction - can translate to an effective net increase in time-charter equivalent rates of $1,000 per day based on a 100day voyage.

Furthermore, it has been agreed to establish a technical co-operation committee so that both countries can collaborate in areas such as Port State Control, crew training and future maritime regulatory policy.

Liberia is also improving its web-based client interface system, WayPoint, by 12

enhancing certificate security features, introducing a QR Code symbol for electronic certificates and streamlining the procedure for document verification.

WayPoint was upgraded last year to include a number of major improvements designed to help owners and operators to manage their fleet-wide regulatory compliance issues more efficiently.

Liberia now includes QR Codes to enhance the document verification process. This means that Port State Control and other interested parties can quickly scan the QR matrix barcode via their mobile phone.

UK The UK Ship Register (UKSR) has qualified for one of the world's top standards because fewer than one per cent of its flagged ships are being detained in United States of America ports.

Deputy director, David Jones, said the award of the US Qualship 21 (Quality Shipping for the 21st Century) to the UKSR was an endorsement of its quality status as a flag.

It is not the first time the UKSR has won the award which is given by the US Coast Guard in recognition of the fact visiting UK-flagged vessels have had an excellent record under Port State Control.

Mr Jones said: “We are proud again to be recognised by the US Qualship 21 program. It's an endorsement of the high levels of service we provide to our owners and operators on a 24/7 basis and underlines our objective to be a quality flag for quality owners".

Only around ten per cent of foreignflagged vessels qualify for the award.

Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. +44 1423 330 505 james.herbert@gemcommunications.co.uk For general enquiries contact: ISU, Holland House 1-4 Bury Street London EC3A 5AW +44 20 7220 6597 ISU@marine-salvage.com