Update osc considers bankruptcy protection Tanker giant Overseas Shipholding Group, Inc., revealed in an SEC filing last month that it is evaluating its strategic options, including reorganizing under the Chapter 11 Bankruptcy Code, following complications arising from a tax issue and possible restatement of its financial statements issued for the last three years. The tax issue, says OSG, stems from its being domiciled in the U.S. and having substantial international operations, which relates to the interpretation of certain provisions in its loan agreements. OSG’s stock has been falling precipitously over the last nine months. At the close of business on Oct. 22, OSG’s stock was priced at $1.23 per share. Just as recently as Jan. 18, the company’s stock was priced at $14.65 per share. While investment banker Dahlman Rose & Co. put out a sell recommendation on OSGs stock, it did say that the company’s Jones Act business could be worth between $500 million to $800 million.
14 Marine log NOVEMBER 2012
nickel ore carrier first to be certified to new iMo code Nickel ore has been cited by Intercargo as “the world’s most dangerous cargo.” During 20102011, nickel ore, which can liquefy during transport causing instability, was cited as the cause in four vessel casualties and the loss of 66 seafarers. Intercargo represents 160 bulk carrier owners. Last month, the Jules Garnier II became the world’s first vessel to be recognized as a “Specially Constructed Cargo Ship” for the carriage of nickel ore in accordance with the IMO’s International Maritime Solid Bulk Code (IMSBC) Code, according to ClassNK. The Jules Garnier II was built for Japanese shipping major JX Shipping Co. Ltd. at Japan’s Naikai Zosen Corp. and classed by ClassNK. The ISMBC code currently requires that the moisture content (MC) of cargoes that may liquefy be tested prior to their loading onboard ships, and forbids non-specialized vessels from loading cargoes with an MC greater than the specified Transportable Moisture Limit (TML). While the ISMBC code allows for these dangerous cargoes to be carried by “Specially Constructed Cargo Ships,” no definition or requirements for such vessels are included in the code itself. Based on the research it has conducted on nickel ore carriers since 2009, ClassNK developed the world’s first hull structure and stability requirements for building such “Specially Constructed Cargo Vessels” in 2011, and released them as part of its Guidelines for the Safe Carriage of Nickel Ore in March 2012. These requirements have since been approved by the government of Panama and Japan for use in vessels flagged with their administrations. The 27,200 dwt Jules Garnier II applies ClassNK’s new requirements in its construction and makes use of longitudinal bulkheads in its cargo holds to ensure stability and structural strength even when liquefied nickel ore cargoes are loaded. It is the first and currently only vessel to be certified as safe to carry liquefied Nickel Ore cargoes in line with the IMSBC code. The vessel is also the first to earn ClassNK’s new SCCS notation for safe carriage of nickel ore in recognition of its special construction. Commenting on construction and registration of the vessel, ClassNK Operating Officer and Hull Department General Manager Mitsuhiko Kidogawa says, “With the completion of this vessel and the successful implementation of these new standards, we have realized an important step in our efforts to ensure the safety of vessels and their crews.” Adds Kidogawa, “While this is an important achievement, we are continuing our research on nickel ore and other cargoes that can liquefy during transport, and we hope that we can develop methods for existing vessels to safely transport these dangerous cargoes, as well.” www.marinelog.com