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Victoria First Under MLC



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Bureau Veritas


Strategy on MLC


Future Care


The Significance of RPS


Intermanager Restraint


MLC 2006 On Domestic Ships



ABOUT THE COVER Photo by: Rose Sebastian Layout by: Jhon Henson Ong

The Labor Department is the competent authority to administer here MLC 2006, a task anticipated to the MARINA as a built-up of The President’s EO 75 for a single maritime administration (on STCW, technically). As the world reels for a common interpretation, we debate onwards on turfs and trappings. MARINO WORLD


Publisher’s Note


Editorial Consultant

Lyn Bacani

Creative Director

B. Cortes Lagac

Legal Counsel

Content Critique

Commo. Dante Jimenez

Eva Tan

Jhon Henson Ong

Atty. Manuel Obedoza

News and Feature Writers Coca H. Strobar

Ligaya Caban


Comm. Tess Lora Dr. Alice Lamigo Capt. Rodolfo Aspillaga

Ms. Merle San Pedro RAdm. Adonis Donato Capt. Edwin Itable

MLC and i

International Correspondents

F R Chowdhury

Mark Millar

Circulation Jomelyn Tud Joamirica Tud


Rose Sebastian Rosvie Corcuera



1732 Modesto St., Malate, Manila, Philippines


Tel. / Fax

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This edition of Marino World is focused on the Maritime Labor Convention 2006, the Seafarer’s Bill of Rights coming into force by 20 August 2013. Yes, a day before the anniversary of Ninoy Aquino’s assassination which triggered an upheaval in our body politics. And maybe years late, but still a fruition of the vision of the great Capt. Gregorio S. Oca, founder of AMOSUP, world-recognized and the largest association of seafarers in the Philippines. For Filipino seafarers both at seas and at homes, Capt. Oca rebirth’s is this Bill of Rights for the conquerors of wind and waters. Of course, there are more issues for answers breed questions. But we shall not be tempted to add to the discourses. This issue already takes it all, from the bar to the backbench; serious advocates and infantile

hecklers -- a whole spectrum of views and biases.

BETTER FRIENDSHIPS? Will it be BENEFICIAL to all concerned?

This gives this Publisher a small window of practicing what Marino World also advocates: a multiple dimension for mariners. Not just ship nor sea but community and public concerns. Not just engines and decks but the panoply of life out there.

Allow me this moment of immodesty, cheering on my Valuable Buendian award by the Rotary Club of Makati, Buendia, International District 3830.

We have earlier featured Commo. Dante La. Jimenez for achievements in business, education and nonpartisan political reforms in Bicol. In inspiring volunteerism against crime and corruption; hence, the Tirad Pass award. Not as great, but am prouder with my Rotary nights between media beats: with the Four Way Test on the things we think, say or do. Is it the TRUTH? Is it FAIR to all concerned? Will it build GOODWILL and

Ahem, may be for odds and ends in goodwill and fellowship. For dissemination of projects through the mass media, sharing vocation as service to the Club. But indeed, those guys may not realize searching their hearts, sourcing their minds, and purposely acting with them, are blessings enough for me. Yeah, this girl is on fire: for issues on the maritime front, for civic goals with Rotarians who expand the horizon towards greater broadbands of life and humanity.




“We’re really trying to make sure coordination is tight, close.”

With MARINA Support

- MARINA Admin. Jun Mejia

DOLE BAGS MLC 2006 by Ligaya Caban

“Rights of the seafarers under the DOLE enforcement authority…” - Labor Sec. Rosalinda Baldoz

Our Senate unanimously passed 13 August 2012 Resolution 829 ratifying the Maritime Labor Convention (MLC2006) making the Philippines as the 30th member state to do so; thus, enabling MLC2006 to be enforceable given the number of member-states ratifying and the combined gross tonnage of ships from them. But it seems turf wars between government agencies persist, hobbling even presidential policy like Executive Order 75 to rationalize and reform our maritime processes. Our labor department (DOLE) coveted but failed to snatch the STCW Single Administration plum. But the agency bags the recognition as the competent authority to implement the MLC 2006 or Seafarers Bill of Rights. Labor Secretary Rosalina DimapilisBaldoz justifies, “Rights of the seafarers under the DOLE enforcement authority, so MARINA will also have some coordination with them pagdating sa accommodation, recreation and facilities, will be entering into MOA with them, PCG, DOH to issue medical certificate, essentially the MARINA would be on the hardware component, the ship itself... for us the seafarers and benefits of the seafarers.”

“We’re ready and all we have to do is wait until August 20…” - POEA Admin. Hans Cacdac



Lost time. It took almost a year from the Senate ratification before DOLE signed the MOA authorizing the initial five Recognized Organizations (ROs) to perform inspection and certification on behalf of the DOLE followed by the Declaration of Maritime Labour Compliance (DMLC) Part I.

Key to enforcement of MLC2006 is the issuance of ‘Maritime Labor Certificates’ by flag administrations following an inspection by its ROs. Philippine-Japan Manning Consultative Committee Chairman Eduardo Manese, at the MOA signing, says “This is what we’ve been waiting, after this, the whole thing will proceed smoothly.” Filipino Shipowners Association President Dario Alampay comments, “Kung na-issue guideline much earlier, mas madali tayo ngayon, the players in the industry could have more time to prepare themselves how to comply. (*… had the guidelines been issued earlier, things could be much easier now). Alampay confirms as early as April, MARINA has been very active in the preparation for the MLC implementation, and already showed them the DMLC Part I. When DOLE presented its first version, DOLE mixed up the guidelines and matters on domestic and overseas.

Government is a bit late, we have only one month... (T)he shipowners should prepare the documents for the review and they have to train their crew and captain to carry out the management complying with MLC. So many will have to rush rush rush…” Labor Supplier. MARINA appears to have campaigned to be the competent authority for the MLC 2006 implementation, to be the country’s Maritime Administration (MARAD) in charge of all the maritime activities following Executive Order 75 “Designating the Department of Transportation and Communication (DOTC) through the MARINA, as the Single Administration in the Philippines…” But newly-installed MARINA Administrator Max Mejia, Jr. explains in so far as the MLC Convention is concerned, the competent authority is DOLE and MARINA is in a supporting and collaborative role.

On the side, Det Norske Veritas Country Chairman Antonio Leosala confirms the ROs already signed a MOA with MARINA as early as April 12, 2013.

Mejia took his oath as MARINA Administrator last May, 2013; a month after the ROs signed a MOA with the agency under OIC Nicasio Conti.

“It has been long awaited by the shipowners dahil ang deadline August 20, 2013 and we’re talking about 45,000 ships to be certified… Pero Ok Philippine flag, konti lang naman, but the workload will definitely be very big for all class,” adds Leosala (*okay for Philippine flag because they are few).

“Things came to a head by June kasi walang clarity. And I said, look, you know people are looking at October for EMSA (that) it’s already tomorrow.. You know what, there’s something that’s not even tomorrow, that is already tonight MLC in August 20… Ano ba talagang status niyan.. That’s when we engaged DOLE in a dialogue, at the cabinet level.”

Nippon Kaiji Kyokai General Manager Hiroyuki Kobayashi says, “The




Mejia recalls the meeting in June when they sorted out issues, at the readiness of the agencies. The pros and cons, with DOTC Secretary Abaya, DOLE Secretary Baldoz, POEA Administrator Cacdac and Mejia for the MARINA. “… (W)e are still generic, we are in a category of our own… (If) we’re looking at the other states (like) Marshall Islands, Panama, Liberia, they are shipowning state kaya its incumbent upon the flag state administration. So pagdating sa MLC sila rin. (W)hat sets us apart… is the fact that we are not so much a flag state.. we are 125 ships and counting down. On the other hand, we are a labor supplying state; we are more on the labor side, so it’s understandable na DOLE ang nasa lead as far as MLC is concerned. This appears to be a Mejia solomonic: the ergonomic “fit”-- upgrading DOLE’s instinctive logic with situational reason, with selfless heart for compromise given the national pit. And Mejia adds: STCW looking at the technical standards for the qualification of seafarer because the compliance of the seafarer to international standard is critical to the safe operation of the ship… (At) MLC, we’re looking at rights, welfare, social security, health, physical, mental well-being of the seafarer as individual person. ”

Single Administration. On the issue, Mejia responds, “That depends on legislation, direction from the national leadership. MARINA, of course, is ready to follow definitely. But there has to be harmony and mutual understanding between sister agencies.” He explains it is hard to practice flag administration while ignoring we are a labor supplying country. In like manner that MARINA relies heavily on the Coast Guard (PCG) on enforcement with PCG’s wider range of coverage and better capabilities, equipment and training. Mejia accepts it will take time for things to jell; but positive signs are there. He wishes that in his watch, things move forward even more; with dialogues, policy reviews, and mutual reforms of departmental systems as these collate with the national improvement. Department orders. Performing the Flag State responsibilities to ensure compliance to the Convention, Baldoz has issued these orders: •

Harmony. As he gives assurance of full cooperation, Mejia quips whoever heads MLC will always tap into DOLE, MARINA and PCG; as labor-side, and vessel safety- flag administration and port state control function, in that order of core expertise. In that major meeting, they want to minimize or preferably eliminate any overlap and duplication of functions. That was one of the issues raised on ROs; Mejia offering the MARINA list, adjusted when it comes to domestic shipping (to avoid unnecessary inconvenience and for joint inspection for transparency). “We’re really trying to make sure coordination is tight, close.” pounds Mejia.



D.O.130 (On the Employment of Filipino Seafarers Onboard Philippine Registered Ships Engaged in International Voyage). Effective 3 July, it covers 125 Philippine registered ships with 500 gross tonnage and above engaged in international voyage. Excluded are ships not engaged in commercial operation. D.O. 129 (On the Employment and Working Conditions of Seafarers Onboard Ships Engaged in Domestic Shipping). Effective 3 July, it covers 8,981 Philippine registered ships engaged in domestic shipping, except warships, etc. D.O.130-A (Guidelines on the Authorization of Recognized Organizations to Conduct Inspection and Certification of Philippine Registered Ships Engaged in International Voyages) taking effect 19 July 2013.


Secretary Baldoz says the orders were issued after consultations, both at the national and local levels. To elicit support and voluntary compliance, Baldoz has directed DOLE’s Bureau of Working Conditions and the Labor Communications Office to conduct extensive public communications to raise level of awareness on the orders. DOLE is also drafting the Guidelines on Maritime Occupational Safety and Health and the complimentarity instrument between the DOLE and DOTC (with its MARINA and PCG) to ensure coherence and coordination of government programs and services for maritime industry stakeholders.

“You’ll really encounter difficulties along the way, it’s normal, it’s natural...”

Recognized Organizations. As of August 7, DOLE has approved nine Recognized Organizations to inspect and certify Philippine-registered ships engaged in international voyage in compliance with MLC 2006, viz: Bureau Veritas, Det Norske Veritas, Germanischer Lloyd, Korean Register of Shipping, Nippon Kaiji Kyokai (ClassNK), Lloyds Register Group, Registro Italiano Navale Services, American Bureau of Shipping; and Hellenic Registry of Shipping. ROs inspect and certify upon DOLE’s issuance of a Declaration of Maritime Labor Compliance-Part I and, upon the request of the ship owner, ROs shall carry out initial, intermediate, and renewal inspections (itemized on Victoria story in this issue). ROs are responsible for immediately reporting to the DOLE complaints encountered during inspections and to conduct validation or investigation, and to conduct follow-up inspection and verification of corrective actions completed pursuant to the agreed schedule of corrections, when necessary. If everything is in order, the RO shall issue to the ship owner an Interim Maritime Labor Certificate, valid for not more than six months for new ships on delivery, or when ship changes flag, or when a ship owner assumes responsibility for the operation of the

- ILO’s Ms. Doumbia-Henry

ship; or Full Term Maritime Labor Certificate, valid for not more than five years. POEA twits. Administrator Hans Leo Cacdac warns though we are the cutting edge, even up to par than more than the international standard, that doesn’t mean there’s nothing left to be done. “The Convention has standards, regulations that are mandatory. Our task is to look in to the non-mandatory… to infuse them as well into our system para kumpleto,” says Cacdac. Prior to the release of Philippine guidelines on the MLC 2006 implementation, some manning agencies have already acquired certificates of compliance from Classification Societies. They pro-actively applied well ahead of the Government’s action as required by ship principals. This is not surprising, notes Marino World, since 29 member states have ratified MLC2006 well ahead of the Philippines. Thus, they are not ahead but just decided at once; we are not late but just debated at length (read, procrastinated). As usual.

Standard contract.

More Support.

POEA Administrator Cacdac clarifies some provisions of the Standard Employment Contract (SEC) while confirming POEA has approved on July 26 the Standard Cadetship Training Agreement.

ILO’s Ms. Cleopatra Doumbia-Henry renews a commitment, “…To make this a reality and help you along the way… (Y)ou’ll really encounter difficulties along the way, it’s normal, it’s natural ...together we’ll definitely find the solutions…The very commitment you’ve shown, the ILO has to reciprocate it in equal measure and I will continue to provide put you there, to get you there as I committed before…”

“As far as the Philippines is concerned, cadets are seafarers that is why there is special agreement (Standard Cadet Training Agreement on Ships Engaged in International Voyage)… There are certain guarantees on stipend, guarantees with regards to health and safety, working living conditions, compensation upon injury, among other stipulations… not to subject the cadet to inhuman and unsafe working condition,” cites Cacdac. On onshore seafarer complaint-handling procedures, Cacdac says that is in the seafarer’s SEC already. He stresses that such mechanism must be onboard. POEA must ensure seafarers to know that instead of misconceptions looking for other venues.

The Associated Marine Officers’ and Seamen’s Union of the Philippines (AMOSUP) VP for Internal Affairs Jesus Sale expresses, “As the largest seafarers organization in the Philippines, AMOSUP is committed to working with all stakeholders to ensure that the MLC truly becomes the universal Seafarers Bill of Rights…” Ms. Doumbia-Henry proposes a MLC 2006 campaign on August 20 in the Philippines, simultaneous with the ILO activities globally, in memory of AMOSUP founder, the late Capt. Gregorio Oca. FSA President Alampay appreciates








PJMCC Manese

DOLE which has assumed the responsibility as the competent authority in the implementation of the MLC. “During the past year… and even up to this day, we saw hectic activities especially in MITC dialogue and consultative meetings with all the stakeholders… just to ensure that the Philippines and the more than one million Filipino seafarers… will be in full compliance and will be onboard with the requirements of 2006. I also wish to extend our appreciation to the cooperation that has been extended by ROs… As ship operators, ship owners and employers of Philippine-flagged vessels in international trade we are assured that our ship operation will be smooth and unhampered with the coming into full force of the MLC 2006 by August 20, 2013.” continues Alampay. Amendments. POEA Administrator Cacdac: “…MLC was amended in 2010 and back then we were already aligning the SEC with the MLC. But there are one or two points that we would still want to look into (which he refuses to make public until a final look). He believes “We’re ready and all we have to do is wait until August 20 and see how implementation unfolds and how we could adjust our system accordingly.” MITC views. In the 7 August 2013 meeting of the Maritime Industry Tripartite




FSA Alampay

Council (MITC), International Maritime Employers’ Council Country Representative Michael Estaniel says “So far, we’ve got nothing to say because everything is falling into place so we’re just waiting lang for the updates… Siguro for owners, they just wanna see the proper process is in place, the certification like for example this changes made by DOH, by DOLE…for the cooks.” MICT has been discussing a draft of Guidelines on Maritime Occupational Safety and Health. It would like more streamlining of the system, efficient and effective. But MITC is open to inputs since it is a process like any standard, like the ISO. What is important is that Government be proactive, even as MITC appreciates difficulties in being Government. For Marlow Navigation Chief Executive Officer for Administration Tony Galvez, his main concern is on the cooks; whether TESDA certification is enough or what more. They could have reacted better had the guidelines been issued earlier, moans Galvez with about 900 cooks without the MLC certification. FSA’s Alampay proposes the issuance of certification to manning agencies by TESDA with a clause of compliance to MLC 2006 because these cooks have already acquired the required training of the Convention. “Several thousands cooks are already onboard and most of these cooks have certificates issued by training centers

IMEC Estaniel

accredited by TESDA,” explains Alampay. In essence. DOLE gets to administer MLC2006 this Convention having morphed from ILO and, arguably, about labor, even if for seafarers. MARINA agrees but the Administrator is new and may not want to bite what he could not chew. There are also tides and ebbs of Palace power plays that he may have to surf to do his job better. Maritime stakeholders are excruciating on the delay of MLC guidelines; hurdles placed by red tapes inherent to bureaucracies and turf wars of government mandarins for power and prestige. Reformers are frustrated on the implication of this DOLE takeover. At the first conflict, policy makers frustrate The President’s EO75 for a built-up of a single maritime administration. They claim that if we go by the logic that DOLE administers MLC2006 because DOLE is labor-oriented, then MARPOL should be administered by DENR, SOLAS by PCG, STCW by the Navy, ad infinitum. By far, it seems the POEA Administrator has the street-smarts: We are ready and all we have to do is wait for the full implementation of MLC2006. Then adjust. Tongue in cheek.

Bulk carrier Million Trader II plies into local history as the first vessel of Philippine registry to receive a Maritime Labor Certificate. This is under the Maritime Labor Convention (MLC2006), just enforced this August as number of countries ratifiying was achieved with the Senate approval for the Philippine government. This ocean-going vessel is owned by Seafarers Shipping Group of Companies and managed by Victoria Shipmanagement. The small Seafarers Shipping Agency in 1973 expanded into the Seafarers Shipping Group of Companies, now a bareboat charter owner, operates six manning agencies (Sea Queen, St. Vincent, Seafarers, Seacap, Sinbanali and Sagana). MARINA Bareboat Charter Agreement limits a shipowner to register only ten ships (hence the redundancy of having to form new companies to support growth). The group oversees a pool of over 1,000 seafarers onboard various types of vessels, loaded with cargo and commodities over blue waters between continents for strategic piers, corporate depots and logistic hubs of the globe. Even as early as April, 2013 all six manning agencies are already compliant to MLC 2006, certified by Bureau Veritas.

Labor Secretary Rosalinda Baldoz and Bureau Veritas Country Chief Executive Emmanuel Danion jointly handed over the prestigious MLC certificate to Port Captain Eduardo Rogayan, representing Victoria and Ms. Plaza. This was in formal ceremonies at the DOLE in Intramuros, Manila, on August 7, 2013. The Certificate states seafarers working and living conditions comply with Appendix A5-I of MLC2006 summarized in the Declaration of Maritime Labor Compliance Part I, i.e.: • • • • • • • • • • • • • •

Minimum wage Medical certification Qualifications of seafarers Seafarers’ employment agreements Use of any licensed or certified or regulated private recruitment and placement service Hours of work or rest Manning levels for the ship Accommodation On-board recreational facilities Food and catering Health and safety and accident prevention On-board medical care On-board complaint procedures Payment of wages

DOLE adds a 15th, per DOLE DO 130-13 Rule VIII, Section 1 on Relevant Laws, viz: ”... collective bargaining agreement or other applicable employment agreement, all seafarers shall be entitled to compensation and benefits under the POEA SEC and benefits provided for by the Welfare Fund for Overseas Workers. Pag-IBIG (RA 7742), PhilHealth (RA. 7875 & RA 9241). Employees’ Compensation (DP 626, as amended), and the Social Security Law (RA 1161 and RA 8282), and other applicable laws… (abstracted, italics supplied)”. Director Cleopatra Doumbia-Henry, ILO International Labor Standards, watched the ceremonies via video; coinciding with the MOA signing with four more Recognized Organizations (RO’s) bringing the RO total to nine. To accent the import of the event, Government officials, the Joint Manning Group, Filipino Shipowners Association and Associated Marine Officers and Seamen’s Union of the Philippines sent in senior representatives. “… a testimony of the government of the Philippines making sure that it makes effective the MLC… a signal, a kick-off, start of implementation to ensure… for the Filipino seafarers, for Philippineflagged ships that they are able to deliver



on the commitment and the requirement of the MLC 2006,” says Director Doumbia-Henry. ILO is a United Nations agency dealing with labor issues, particularly international labor standards, as now consolidated under MLC 2006, also known as the Seafarers’ Bill of Rights. Ms. Doumbia-Henry also announces the recent ratifications of Japan and United Kingdom bringing to a total of 45 ILO member States and over 75% of the world’s gross tonnage of ships. MLC2006 will be in force 20 August, 2013 --- binding in international law – to establish minimum working and living standards for all seafarers on those ships. It will also be an essential step toward ensuring fair competition and a levelplaying field for quality owners of ships under the flags of ratifying countries. The Ship. Million Trader II was registered into the Register of Philippine Ships on June 18, 2004 as a bulk carrier with IMO No 9284879. The ship has 22 crew, built in Japan in 2004 with 217.81 meter length, 32.26 meter breadth 19.30 meter depth, 39,974

gross tonnage and 25,940 net tonnage. Owned by the Miranda family, the Seafarers Shipping group marks 40 years on October, this year. While of various designs and capacities (i.e., bulk carriers, tankers and containers) all 53 ships are of Philippine registry. Ms. Victoria Miranda-Plaza is President of Seafarers Shipping while Mr. Edwin Miranda Cristobal is the President of Victoria Shipmanagement. Since an inkling in 2006 of impending changes, the firms were unable to prepare given that government guidelines are still unissued. Now, it’s crunch time; as of middle August, 27 of their ships are afloat somewhere without being audited, without required documentation on MLC2006. Even if owners want to be pro-active, government information is unavailable. While Government may forward excuses, the private sector bears the brunt of non-compliance -- for things they are not informed of. Owners await DOLE DMLC Part I before being able to apply for Part II. They cannot second-guess what government will impose. Almost at

desperation, owners brushed-up on Panamanian, on Liberian DMLC Part I to gauge possibilities. But it’s like grasping on straws since, as an example, the international requisites are only 14 while 15 for the Philippines. Mr. Cristobal accepts the 15th DOLE added (on social security) is not a hard nut to crack. But time constraint is critical for international operations. He mentions a ship anchored in Iran for more than three months now. It must be audited but there are no auditors, the distance, port situation and other belligerent factors. They cross fingers the ship does not get impounded for lack of required documentation by a Convention now in force. Thus, Government indecision may hit hard on industry stakeholders. Here is a group of companies with a solid record of growth, even pro-active in settling requirements, proven by its Victoria as first on the local scene to be certified compliant on MLC2006. Yet, they have to keel over at some point, innocent victims of the power play and indecision.

by Coca H. Strobar

DANION. On the process.


nternational classification society Bureau Veritas Country Chief Executive Emmanuel Danion says “I can say that everybody was eager to see the evolution, to see the Philippine Government ready to implement this requirement…It was not too late…but till today many flag states …have not signed the Convention,” says Danion. Danion confirms to Marino World on July 16, 2013 interview that they already received applications for 70 out of the 125 Philippine-registered ships for MLC compliance. Fully aware of time constraint, Danion still gives assurances that Bureau Veritas can work through all the rigors and regulations to complete certification of the 70 ships, even more, before the deadline at the end of August. His confidence is backed-up by teams of trained inspectors and auditors strategically deployed where the needs could, with hub in Rotterdam, the Netherlands.They have been preparing for the MLC Convention for four years with about 200 inspectors world-wide.

The Major Players



Objectivity is reflected on Danion’s clarification, “(I)t doesn’t matter to us if it comes from MARINA, from DOLE. We will just do the inspection from the administration, the competent agency, so we will just focus on the compliance with the convention”.

Bureau Veritas, an internationally Recognized Organization issued the MLC certificate to Victoria Ship Management bulk carrier Million Trader II, a historic first in the Philippines. The Inspector. Mr. Danion himself completed inspections of the Million Trader II in Masinloc, Zambales while the vessel discharges coal on July 23, 2013, a day before the MLC certificate which carry the seals of the Philippines and Bureau Veritas. Mr. Danion, an MLC inspector, is a senior marine surveyor for all types of ships and surveys; an ISM and ISPS lead auditor; ISO 9001 Lead Auditor; a regional auditor; a welding inspector and a member of the Royal Institute of Naval Architects. Bureau Veritas is a large multinational organization founded in 1828 with 900 locations and inspection centers in 140 countries backed by 40,000 employees of multi-disciplinary skills. Six business lines are operating in the Philippines: (1)Marine, (2)Industry and Inspection, (3)Certification, (4) Government Services and International Trade, (5)Consumer Products Service and (6)Commodities. Each business line offers a range of specific services – in areas of asset management,

certification, classification, consulting, inspection audit, testing and analysis and training designed to business needs. BV is an international professional service group specializing in QHSE management system, quality, health and safety, environment and social accountability. Bureau Veritas Philippines was established 1970 operated for almost 20 years through a local agent. In 1995, it was registered as a juridical entity at the Securities and Exchange Commission. The Process. Mr. Danion tells Marino World how. DOLE issues DMLC Part I, shipowner has to take care of Part II which latter part we have to review and conduct the inspection like all the ships in the world. Assuming MLC Part II has been reviewed, “… we arrive onboard the ship, so first we start with the meeting, we explain to the captain, the department head, the chief engineer, chief officer, also the chief cook because he has an important role to play for MLC, we have a meeting with them, we explain to them the process, what it’s going to happen, We explain to them the standard, the MLC MARINO WORLD



convention, then we review… all the official documentation of the ship, (T)hen we start the interview,… definitely with the master, with some officers and then we will select from the colleagues, a number of seafarers at random and we will have private interview with them and during the private interview, we try to make sure that all the condition of their contract are actually complied with, for the employment, (H)ow did they sign the contract, were they give enough time to review the contract before signing, and then if they receive their wages every month in due time, if they receive a pay slip with all the details of their money, exchange rate, if there is any foreign currency, the allotment, everything must be clearly laid out in the pay slip. And then we will check also if they are complying with the work hours of MLC, if they are not working too many hours every day, if they are working overtime, if they are paid for this over time. All of these kind of things. So in the private interview, number of …and then after that, we do physical inspection in the ship mainly for the gallery and food store, refrigerated store, everything make sure that its clean enough and the accommodation is also in good condition. And after that we will do the closing meeting with the officers, captain of the ship and if there are any deficiency… we cannot issue the certificate so they have to take action immediately. They can propose an action plan within 3 months and then if the proposal is acceptable, we can issue the certificate. That’s the process.” Work hours. “They have to produce the working schedule for everybody onboard. Where we can see that everybody will work either on their ship …in order to take their watch ..or they will work



8 hours per day, and …days a week, and after that we have to review their records of actual working hours for everybody that the record show that they do not exceed the number of working hours, and the record has to be signed by the captain. And there must be a copy of the working record.

with and also to give reassurance to their principals that they comply so the principal will take a copy of the certificate and will put the certificate onboard the ship to show to everybody that the manning agent that is putting the seafarers onboard their ship is complying with MLC.”

That’s not new for MLC because it was already required in the STCW convention, so that’s should not be any problem because it’s not something new for the MLC... already enforced last year.”

The big issue.

Manning agencies.

“(W)hether the flag has ratified or has not … the Convention, the ship should be complying. So this will be penalizing for some shipowners if their flag has not ratified… They have to anticipate themselves their compliance.

They have to be MLC compliant because the Philippines is part of the Convention… POEA has already completed the process… showing their (manning agencies) compliance with the MLC… we have been doing (such) for the past two years under request from their principals. They wanted to make sure that the manning agents already complied even before. (S)o we have been auditing and certifying today more than 50 manning agents on a voluntary basis, they just want to show to their principals from an external body, the Bureau Veritas that they comply so we have so far audited and certified more than 50… and we are continuing to receive some more applications. We have developed standards in order to give the possibilities of the manning agents on voluntary basis …application of ISO 9000 and the MLC to the manning agency because in the convention itself there is no requirement for certification of manning agents…it is not compulsory, its voluntary, optional, if they want they can apply to Bureau Veritas, we will audit them according to the standard and certify them according to the standard… I think it’s very important commercially for the manning agent to show that in advance, in preparation of the Convention, they already complied


Maritime Labour Convention 2006 DIGEST of a proposal by Atty. Brenda V. Pimentel VP, WIMA National and Former Regional Coordinator IMO Technical Coop.

One of the basic principle is what they call it as non-favorable statement or something…from the port state control point of view.

Although the flag authority will not have prepared the DMLC Part 1… the shipowner has to anticipate the Convention their compliance. Otherwise, their ship could be detained, so that’s a big issue which is penalizing the shipowner. Of course. the shipowner they have the interest to choose the flag that has ratified the Convention, but ofcourse you cannot change the flag of the ship so easily. It’s a big important decision for the shipowner which take into account many parameters like financing of the ship, political situation of the country. But, of course, if that particular flag has not ratified the convention, that could (still) penalize their shipowners. Bureau Veritas can appreciate the multi-faceted problems of shipping in various countries of different persuasion and political situation. Being global and on field for years and years, complemented by multidisciplinary and skilled manpower, shipowners may find Bureau Veritas the safe pier to shelter from lashing winds of enforcement and interpretations, let alone the travails of compliance.

When a State agrees to be bound by a convention, an obligation is created for that State to ensure the requirements of the instrument is given full effect. The Maritime Labour Convention, (MLC) 2006 is in force August, 2013. The Philippine must ensure compliance having ratified this 4th pillar of shipping regulations. The three other pillars, as amended, are: • •

• •

International Convention on the Safety of Life at Sea (SOLAS), 1974 International Convention on the Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978 International Convention on the Prevention of Pollution from Ships (MARPOL), 1973/1978 (The main concerns of these Conventions are reflected on the titles)

MLC2006 codifies maritime labour standards and requirements for seafarers (as distinguished from other manpower, e.g. port workers/stevedores) mostly adopted from the International Labour Organization (ILO) and modified IMO inspection and certification. Article III declares rights and principles on employment, in general. Article IV stipulates seafarer rights to a safe and secure workplace, fair terms of employment, decent working and living conditions on board, health protection, medical care, welfare measures and other social protection.

Underpinning is seafarer’s fitness and competence to tasks in navigation and ship operations, the structural integrity of the ship against the seas, manning level for the safe operation of the ship, entitlement to decent work and living conditions. Dutybearer MLC2006 apportions the responsibilities of a member country according to three specific roles it shall assume: flag-State, port-State and labour-supplying State wherein a seafarer must enjoy his rights. As flag-State From mere support to trade and people mobility, sea transport is now a major economic undertaking and factored in political progress. Hence, many countries develop their national fleet in various forms. Some ensure there are ships to carry their import/export, to generating income from ship operations. For some, generating government revenue from maintaining a ship registry and the creation of jobs for seafarers engenders desire to build up a national fleet. As ships increase comes the need to regulate international shipping due also to increase in maritime mishaps. Responsibility and accountability are on the country of registry or flag State. MLC2006, most maritime conventions, including the UN Law of the Sea Convention (LOSC), 1982, recognize the flag State as exercising supervision over

ships flying its flag. LOSC Article 94 provides, “Every State shall effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag… shall take such measures… necessary to ensure safety at sea with regards… to … the manning of ships, labour conditions and the training of crews…” A ship may be of Philippine flag per PD 760/866/1711 and determination by the Maritime Industry Authority (MARINA), where it is entered in its Register of Ships. Often overlooked on ship registry are economic and social benefits like enhancing trade, foreign exchange income/savings from ship operations (on top of crew remittances), job creation to include other occupations/career on ancillary activities, e.g. ship management, ship-building, etc. Aggressive effort of expanding the Ship Register may increase the market for Filipino seafarers, instead of seeking jobs onboard foreign-flagged ships. MARINA may promote our ship registry with incentives like: • • •

Making shipowning/operations less bureaucratic By reducing regulatory agencies a shipowner has to deal with Adopting efficient registration, inspection and certification.

MARINA makes every effort to having Philippine ships carry certificates issued by one agency. All safety certificates, MARINO WORLD



including issued by ROs should bear the logo of the MARINA and in due time, Filipino seafarers onboard the national fleet will carry MARINA-issued Seaman’s Book to competency certificates. The Philippines must implement on all ships in its registry all mandatory international maritime regulations. We must understand that rule-making, in most sectors and specially in such complex area as the maritime, cuts across various agencies. Therefore, even as MARINA may regulate the grant to a ship of the Philippine flag, standards and rules set by other agencies are adopted and incorporated by MARINA (like those of the Merchant Marine Rules and Regulations, by the Maritime Training Council prior to EO 75. A ship and crew under the Philippine flag are under the protection of the Philippine Government as in piratical attacks, maritime casualty incidents, search and rescue operations, unwarranted detention in a foreign port, and other port courtesies. But detention due to non-compliance with international convention/regulations or violation of coastal and national regulations of the port State waive such protection. MARINA may prohibit acts against international and national regulations and standards. It may impose sanctions on Philippine-flagged ships, even delisting from the registry.(We should note the Philippines ceases to be a flag State if there is no Philippine merchant fleet, although domestic ship registry may be considered). As Port State Port State responsibilities under MLC2006 are under Regulation 5.2 synonymous to stipulations in most IMO conventions recognizing the power of the port State to adopt and implement control mechanisms on foreign ships calling on a Member’s ports. This is needed in curbing substandard ships which, in turn, contributes an efficient, safe, secure and environment-friendly shipping. Here, PCG undertakes port state inspections generally limited to an examination of certificates, records and documents required to carry based on international conventions and instruments. But PCG may carry out detailed physical inspections when condition of the ship does not correspond substantially to the



particulars on the certificate or when not carrying valid certificates and records. While enforcement takes on a national character, the desirability of a regional co-operation was recognized to adopt a harmonized control procedures as well as avoiding repetitive ship inspections. Distinct systems were developed by PCG based on guidelines/circulars issued by IMO anf principles/protocols agreed among the member States of the Tokyo MOU on Port State Control. The port State is able to exercise sovereign right by regulating the conditions of entry, passage and exit of foreign ships into its territory.But port State has the duty to avoid undue detention and delay to a ship; per Article 227 of the LOSC and in most IMO conventions and echoed by MLC2006 under Regulation 5.2.1 (Standard A5.2.1). It is the duty of the port State of providing on-shore seafarer complaint-handling procedures under Regulation 5.2.2. DOLE and PCG should, therefore, draw up a mechanism for this requirement of redress. Labour Source. The functions of a labour-supplying State under MLC2006 has direct correlation to those of a flag State in that the same laws, regulations and standards are to be implemented although the entities covered differ, i.e. ship for flag State and recruitment and placement/manning agencies for the labour-supplying State. As the government agency regulating the establishment, accreditation and operation of recruitment and placement agencies, DOLE is expected to ensure domestic enterprises engaged in the deployment of Filipino seafarers, comply with the requirements of MLC2006 under Regulation 1.4 and 5.3. Likewise, DOLE must require deployment of Filipino seafarers are only to country of registry of ships that implements MLC2006; just as DOLE assumes a critical role as the agency charged with promoting decent work and living conditions. Responsibilities: The Philippines had ratified certain ILO conventions dealing with maritime labour. It also ratified MLC2006, thus DOLE is

expected to identify the gaps so that the requirements of MLC2006 find its way into national legislation. Efforts should be exerted to preserve clearly defined and established functional boundaries thus avoid confusion; obtain optimum benefits from maritime ventures as shipping registration and operations, seafaring and related activities. Allocation of implementation and enforcement functions should adopt existing organizational arrangements. MARINA shall exercise its regulatory functions over all Philippine-flagged vessels, develop rules and regulations to incorporate in the PMMRR additional requirements under the MLC2006 citing as basis the issuance(s) of DOLE.

As in most maritime conventions, reportorial requirements are imposed on the Member Countries to the MLC2006. As the agency overseeing that seafarers enjoy the rights granted to them under the convention, DOLE should assume the responsibility of reporting to the Director General of ILO.DOLE shall consolidate related information from MARINA and PCG. Authority One of the most contentious issue in the implementation of maritime related international conventions is who takes the lead role? For MLC2006, the question persists, despite the inclination to DOLE.

Competent authority as defined in

MARINA rules and regulations should include ship inspection and certification activities and coordinate with PCG and DOLE in areas of mutual concerns. A review of the agreements with “recognized organizations” should be undertaken to include MLC2006-related requirements.

MLC2006 seem to proffer a different viewpoint. Article II of MLC2006 defines Competent authority “the minister, government department, or other authority having power to issue and enforce regulations, orders or other instructions having the force of law in respect of the subject matter of the provision concerned.”

PCG shall, in undertaking port State control, be mindful of the requirements of MLC2006 and, where necessary, amend existing guidelines and procedures without contravening agreed protocols under the Tokyo MOU.PCG should coordinate with DOLE in establishing onshore seafarer complaint procedures.

Same article recognizes several “competent authorities” may need to implement the various provisions subject only to their having the power to issue and enforce regulations, orders or other instructions in respect of their respective spheres of authority or core mandate.

The phrase “in respect of the subject matter of the provision concerned” acknowledges distribution of the complex areas of MLC2006 among government agencies. If the intention of the convention is to identify one competent authority, it should have stipulated “in respect of the provisions of the Convention”. Therefore, as earlier suggested and without directly assigning to either DOLE, MARINA and PCG the competent authority tag, each of them should be competent authorities in their sphere of expertise. We cite these examples: On Recruitment and Placement: Standard A1.4 Paragraph 7 states: The

competent authority shall ensure that

adequate machinery and procedures exist for the investigation, if necessary, of complaints concerning the activities of seafarer recruitment and placement services, involving, as appropriate, representatives of shipowners and seafarers. On certificate and compliance

Standard A.5.1.3 Paragraph 16 stipulates: A maritime labour certificate shall be withdrawn by the competent authority or the recognized organization authorized by the flag State, if there is evidence that the ship concerned does not comply with the

Convention and any corrective action has not been taken. On Inspections in port Guideline B5.2.1 paragraph 1 states; The

competent authority should develop an

inspection policy for authorized officers carrying out inspections under Regulation 5.2.1..

Further on the inference on multiple “competent authorities,” Standard A5.2.1 paragraph 5 (port inspections) provides: “The Member in which the inspection is carried out shall have the right to transmit a copy of the officer’s report, which must be accompanied by any reply received from the competent authorities of the flag State within the prescribed deadline,….” DOLE, MARINA and PCG must draw the bounds of authority to avoid confusion. DOLE may act as Coordinating Agency to monitor implementation by “competent authorities.” An institutional arrangement among agencies may establish a national committee to implement MLC2006. Nota Bene. The author offers a perspective, guided by an earnest desire for best option in the disposition of maritime functions. There is never any intend to attribute strengths nor weaknesses to any one agency. Rather, she suggests alternative views as choices on these national concerns.





A lifeline for medical emergencies, injury or illness. Even afloat, anywhere and 24/7. Plus physician advisory, coordination of medical examinations. And case management with utilization review.

More so when one is assured of:

All these in Future Care’s comprehensive, compact Caring of the Crew Program.

3. First Responders to expedite medical action as received;

Quite unique from any land-based health management model, Future Care processes are directly linked to the vessel’s logistics, thus, optimizing care while containing cost.

4. Electronic record accessible any part of the world, ensuring care continuity.

In essence, Future Care is a virtual primary care physician for the maritime industry; developed by its CEO, Christina DeSimone, from 30 years in health care and shipping.

From analysis of its extensive database, illness - rather than injury - is majority of medical cases reported to its First Response line. These are traceable to lifestyle, dietary issues and risks that increase with age. With Future Care, physician advisors monitor them regularly for an environment of care, trust and support.

Attracts good crew. Seafarers are decreasing these days, unwilling to work onboard vessels. They look for incentives. Thus, when a company sets a proactive program for crew wellness and health, it creates a supportive environment, more likely to attract qualified individuals.



1. Physician advisory onboard 24/7; 2. Medical correspondents for ill or injured seafarers onsite, anywhere;

Health issues.

Screening prior to signing may detect pre-existing and chronic conditions. But monitoring also allows individuals to continue working onboard productively.

Remote diagnosis is critical during emergencies. Today, we have the necessary technology to: •

Immediately identify and respond onboard and at sea; Resolve medical conditions prior to port arrival; Render a seafarer Fit For Duty even at sea, with the proper instructions.

This model provides the necessary guidance for the Captain and the moral support of the crew, as they can voice concerns on medical condition wherever the vessel may be. How beneficial. The physical and psychological well-being of the crew are assured; promotes healthy practices onboard and, ultimately, makes sense to a ship owner’s bottom line. Catastrophic cases are avoided. Medical conditions are not exacerbated, thus, do not require costly medical services. Majority of cases are contained and resolved prior to arrival to port. MARINO WORLD






In 1995 the shipping world witnessed two significant changes. The word “company” was introduced in the STCW-78 convention and ISM Code of the SOLAS-74 where the term referred to the entity responsible for safe operation of the ship and protection of the marine environment. Safe manning was a part of the safety management; it was a responsibility of the company. Whether the company handled themselves or engaged a crewing agency was their own business. There was no entity recognised as crewing agent or RPS (recruitment and placement services). Poor, third world countries supply bulk of the seafarers. The rich ship-owners are from Norway, Denmark, United States, United Kingdom, Germany and Sweden but for sake of convenience their ships are registered in a number of open registers like Liberia, Panama, Bahamas and Marshall Islands. These ships are managed by companies located in London, Glasgow, Hong Kong, Singapore, Hamburg and Cyprus. The administrations in Philippines, Indonesia, Bangladesh, Myanmar and Vietnam had no role in the employment of their seafarers except for their training and certification. Quite often seafarers were deprived of their wages and other benefits and in some cases even stranded in far corners of the world.



F R Chowdhury is a former Director General of Shipping, Bangladesh. He is also an ExDeputy Chief Examiner of UKMCA, Maritime Administrator of Gibraltar and Maritime Adviser to GOP, Kingdom of Bahrain.

The seafarers’ national administrations in most cases remained helpless as the ships, their owners and managers were beyond their jurisdiction.

2006. However, Party States must understand that RPS certification is not mere survey and certification or even quality control.

While adopting MLC-2006 the delegates realized this important fact that the ISM companies were recruiting the seafarers from the labour/crew supplying countries through their agents in those countries. That the national administration of those countries hardly have any say.

It is far more than that. It is a matter of national policy to protect national interest and as such certification or licensing of RPS must be dealt directly by the Administration. All survey, audit and verification process (especially those relating to ISM companies) must ensure that only RPS certified by national authorities is employed. This will to a large extent call for responsible behaviour on the part of the RPS and the ship-management companies.

In order to give some control to those administrations, the Convention officially recognized those involved in sending seafarers as an entity known as RPS (Recruitment and Placement Services). It is now for the administration to exercise their jurisdiction and select the trusted agencies so that their seafarers are not cheated or deprived or stranded abroad. The national administrations of the seafarers must avail of this opportunity to use their discretion to impose such terms and conditions for issue of certificate/license to operate as RPS so that the relevant RPS remain at least partially answerable to the administration for the fate of the seafarers employed through them. The Party States may authorise the classification societies to conduct the survey and certification under MLC-

Labour supplying countries must not wait and see what the developed countries are doing. The developed countries will have no interest in RPS matter. They have no seafarers to go and work on foreign flag vessels. The MLC-2006 missed a big opportunity for a provision: “Member States shall ensure appropriate legal and administrative arrangements are in place so that deprived or distressed seafarers within the jurisdiction of that state can establish their rightful claim and settle the same”. This can only be achieved now as a future amendment. Until then we have to regard the provision of RPS as something better than nothing.



nterManager calls on flag States to exercise tolerance and flexibility. The international association of in-house and third party ship managers appeals in the weeks and months following the entry into force of the Maritime Labour Convention (MLC). An internal poll shows that InterManager members are ready to meet the needs and demands of the MLC when it enters into force on August 20th this year. However, the association remains concerned that, as the MLC requires total commitment from its global stakeholders, restraint and a common interpretation of the rules needs to be seen from inspecting authorities when vessels start to visit the world’s ports by August 20th. Gerardo Borromeo, president, says “There is need for all flag state and port state authorities to exercise maximum tolerance and flexibility when the convention comes into force this August. Only 40 States around the world have so far ratified the MLC so there are many States still in the process of ratifying or may even be a considerable ways from ratifying. This poses great concern to ship managers and crew managers who are immediately impacted by this convention. It is equally important that all States ensure their respective flag

and port state control inspectors are prepared to meet the unique demands of the MLC.” Welcomes MLC Borromeo assures, “InterManager welcomes the entering into force of MLC but remains concerned that many of the world’s major ports which our members’ vessels visit, lie within the borders of countries which have yet to ratify the MLC such as the US, Korea, UK, Italy and Japan. We need a common interpretation of the rules to ensure there is a smooth entry into force of this important convention.” (As of presstime, Japan and the United Kingdom have ratified the Convention). InterManager members are committed to the smooth and efficient operation of their managed fleets and so it is essential that ships are able to enter and depart loading and discharging ports as quickly as possible. “Because not all flag administrations have approved the convention, it is important that the shipping industry can be assured of minimum disruption to vessel operations following the entry into force of the MLC,” Borromeo cautions. He concludes, “We are urging the major trading nations to move with more urgency to get themselves into the picture regarding MLC.

Pres. Borromeo

InterManager will work with all the stakeholders to ensure the smooth transition into force of this crucial piece of shipping legislation.” Trending news. Marino World picks up from usually unimpeachable sources of a Tokyoled “understanding” between major ports and transit points not to detain ships not compliant with MLC2006 documentation or requirements. This unofficial “accommodation” or pragmatic adjustment shall allegedly be honored within a full year as grace period. The Philippine Government seems an endorser of this Tokyo “protocol.” Its Coast Guard (PCG) as Port State Control is not prone to detain ships due to lack of MLC documentation; unless there is serious deficiency of a vessel on a port-of-call. On a joint front, InterManager and the International Chamber of Shipping (ICS) are both active in persuading flag state administrations to ease up if not totally freeze, enforcement of MLC 2006 given various problems spawned by its coming into force worldwide. Strict implementation could debilitate shipping companies, some already struggling due to worldwide economic doldrums.




Wherefore Domestic Shipping?

by Ligaya Caban

“Seafarers sailing in Philippine waters are now guaranteed the benefits that they deserve from their employers,” claims Labor Secretary Rosalinda DimapilisBaldoz as her Department prepares 20 August 2013 when the International Labor Organization’s Maritime Labor Convention 2006 (MLC2006) takes complete force. Baldoz has issued Order No. 129, the Rules and Regulations Governing the Employment and Working Conditions of Seafarers Onboard Ships Engaged in Domestic Shipping. This order applies to ship owners and seafarers where employer-employee relationship exists and covers Philippine registered ships engaged in domestic shipping other than warships and naval auxiliaries; government ships not engaged in commercial operation; and fishing vessels. It outlines the minimum requirements for seafarers to work on a ship, such as minimum age (18 years old); medical certificate from a facility accredited by the Department of Health; training (only seafarers certified by appropriate government agencies); and recruitment and placement. DOLE’s existing guidelines on recruitment and placement and/or subcontracting work arrangement shall apply. “No fees or other charges for recruitment, placement, or for providing employment to seafarers shall be borne directly or indirectly, in whole or in part, by the seafarer,” the order reads.



Under Rule III, seafarers are entitled to not less than the benefits stipulated in the order. Primarily, it provides that there shall be an agreement in writing between the shipowner and the seafarer. This shall include provisions on wages for actual work hours and days and shall not be lower than the applicable minimum wage rates in the domicile or the head office of the ship owners, whichever is higher. Wages shall be paid at least once every two weeks or twice a month at intervals not exceeding 16 days. It also entitles a seafarer to 12 regular holidays with pay, three special non-working days; rest day of 24 consecutive hours for every six consecutive working days with the applicable premium payment, if worked; overtime pay for work in excess of eight hours a day; and night shift pay an additional 10% of the regular wage for work between 10 P.M. and 6 A.M. of the following day. The seafarers are also to receive 13th month pay equivalent to 1/12 of the total basic salary earned within the calendar year to be given not later than 24 December of every year. They are also due to receive service incentive leave of five days for every year of service; maternity leave of 60 days for normal delivery or 78 days for caesarian section delivery; maternity leave of seven days; parental leave of seven days for solo parents; leave of ten days for victims of violence against

women and their children; special leave of not more than 60 days due to surgery for any gynecological disorder. Upon reaching 60 but not beyond 65 years, they are entitled to receive retirement pay. DOLE states normal working hours shall not exceed eight (8) hours a day. But if the seafarer is required to work beyond, the maximum hours shall not exceed 14 hours in any 24-hour period and 72 hours in any seven-day period. She adds the minimum hours of rest for seafarers shall not be less than ten (10) hours in any 24-hour period, and 77 hours in any seven-day period.

Waiting time shall not be compensable working time if the seafarer is completely relieved from his/her duty and can use the time effectively for his/ her own purpose.

organization and collective bargaining. And when there is a Collective Bargaining Agreement (CBA), it shall be registered with the concerned activities in accordance with law,” adds Baldoz.

The ship owner shall also post, in an easily accessible place, a table of shipboard working arrangements containing the schedule of service at sea and at port, and the maximum hours of rest in working language and in English.

Other provisions in the order concern accommodation (decent accommodations and recreational facilities) and food and catering (ships should carry onboard food and drinking water of appropriate quality, quantity, and nutritional value of the Sanitation Code of the Philippines).

The ship owner shall likewise maintain records of the seafarer’s daily hours of work or rest. “They are also assured of their right to security of tenure and right to self-

On occupational safety and health, the order requires shipowners to adopt, implement, and promote OSH policies and programs to prevent occupational

accidents and diseases, including measures to reduce and prevent risk of exposure to harmful chemicals and physical hazards; prevention and control of alcoholism; and prevention of sexual harassment. Other OSH measures required are emergency preparedness; promotion of drug-free workplace; monitoring of work environment and compliance with safe work procedures, safe use and maintenance of machine or equipment, and use of protective personal equipment. Secretary Baldoz confirms all provisions of the Labor Code on domestic shipping are spelled out in the order.





DIGEST of an article On domestic shipping By Capt. Victor Y. Alviola Secretary General of Associated Marine Officers and Ratings


aritime disasters have been the trade mark of our domestic shipping. They are too common, no longer for the front page. Sea tragedies are routinely followed by high profile congressional inquiries that bore little fruit; general expectation is search and rescue, retrieval of bodies, investigations. Then wait for the next accident. More than 200 sea accidents occur here annually. The worst was December, 1987, when MV “Dona Paz”, collided with MT “Vector”, drowning 4,341 - world’s worst peacetime maritime disaster. After 20 years, Philippine passenger ships remain unsafe. “Floating coffins,” critics say. Government agencies fail, eliciting travel advisory from the Australian government against her nationals riding on our ferries. MARINA, our flag state administrator and our Coast Guard (PCG), the enforcement arm, are losing the battle on maritime safety. They blame old ships nearing unseaworthiness (like the Lady of Mount Carmel built in 1972), unsafe business practices of ship owners and incompetent masters and crew. But who allowed the importation of dilapidated vessels, issued certificates, sailing documents and green light for these ships on Philippine waters? Who ascertained the competency of the master and crew and issued Qualification



Document Certificates (QDC) to board and operate a sea craft? In one maritime forum, I asked the PCG commandant on who determines the sea worthiness of a ship prior to sailing. Instead, he explained the “Master’s Oath”.

heavy cargoes, coupled by empty bottom tanks, improper weights distributions, shifting of heavy cargoes, water egress or just plain lack of knowledge of cargo operations.


Atty. Beltran is a practising lawyer and Counsellor-At-Law with the Ramos and Ramos law offices. She holds a Masters of Law from Erasmus U of Rotterdam, the Netherland on top of degrees from Arellano U and UP-Diliman. Ms. Cristina is inducted into the Phi Kappa Phi Pi Gamma Mu Intl Honor Society (Social Science- Bulacan State U).

Unfortunately, most government personnel have insufficient or no knowledge about “stability”. They merely count passengers and examine trading documents. After disasters, investigators focus more on names on the manifest tally with body count. But even with expired documents, lack of life-saving equipment and excessive passengers, a ship will safely reach destination provided she is in stable condition, sea worthy and manned by experienced crew.

Also a full-pledged Rotarian.

I received no intelligent reply for all my queries.

Probing accident is the Board of Marine Inquiry (BMI), experts under PCG. BMI has no legislative nor punitive powers; findings are all recommendatory. The past has it that fingers point to the captain as the lone culprit.

In most tragedies, ships capsize before sinking (i.e., Princess of the Orient, Super Ferry 9, Lady of Mount Carmel). Given “trim and stability”, vessels do not overturn unless with negative stability. This occurs when the Center of Gravity (G) is higher than the Metacenter (M) or when more weights on top than at the bottom.

Indeed, our domestic shipping industry is in a depressing state, if not already terminally ill. Unless our lawmakers and government officials can put their acts together, revised our archaic maritime law and introduce new laws to institutionalize MARINA and PCG, shipping in our country will continue to regress.

Thereafter, a contract of employment was executed between C.F. Sharp, on behalf of its principal, International Shipping Management, and Agustin and Minimo. After signing the contract, Agustin and Minimo were required to attend various seminars, open a bank account with the corresponding allotment slips, and attend a pre-departure orientation.

Negative stability also results from excessive free surface effects (movement of liquid inside a half-filled compartment) topping up with high but

The first step in solving a problem is to eliminate the possibility that you might be the cause.

Outraged, I countered, “Are you saying that a mere piece of paper can ensure the stability and seaworthiness of a vessel? Are we to understand safety… rest(s) solely on the … Captain? What if the skipper lied and his ship sinks… is this entirely his own fault? If all sea accidents are attributed to the negligence of the master, untrained crew and the unstable condition of the vessel, where does the culpability of the state come in?”


ilfredo Agustin (Agustin) and Hernando Minimo (Minimo) applied with C.F. Sharp Co., Inc. (C.F. Sharp) as sandblaster/painter. After passing the interview, C.F. Sharp required them to submit their passports, seaman’s book, NBI clearance, employment certificates, certificates of seminars attended and results of medical examination to which they complied.

They were then advised to prepare for immediate deployment and to report to C.F. Sharp for their deployment schedule. After a month, Agustin and Minimo were not deployed so they requested C.F. Sharp to release their documents. C.F. Sharp allegedly refused to return the documents. Agustin and Minimo filed a complaint for breach of contract and damages against C.F.

Sharp and its surety, Pioneer Insurance. They alleged that C.F. Sharp falsely assured them of deployment. They added that C.F. Sharp’s refusal to release their documents denied them of employment opportunities and guaranteed income by reason of which they are entitled to damages. For its part, C.F. Sharp maintained that the perfection and effectivity of the contract of employment depend upon the actual deployment of the workers. C.F. Sharp’s position is that non-deployment is not tantamount to breach of contract and that there is no breach because no contract of employment was perfected. The Supreme Court ruled that failure to deploy constitutes breach of contract. The Court said that there was a perfected contract of employment between the parties. The employment contract in this case was perfected when the parties agreed upon its terms and such agreement was manifested by the consent freely given by both parties when they signed the employment contract. The Court anchored its ruling on Article 1315 of the Civil Code which provides that a contract is perfected by mere consent and from that moment, the parties are bound not only to the fulfilment of what

has been expressly stipulated but also to all consequences which, according to their nature, may be in keeping with good faith, usage and law. , The Court explained that the commencement of the employer-employee relationship must be treated separately from the perfection of the employment contract. In this case, the employer-employee relationship did not commence due to C.F. Sharp’s failure to deploy Agustin and Minimo. However, considering that the employment contract in this case had been perfected (as explained above), the parties are entitled to rights arising from the perfected contract. One such right is to demand performance by C.F. Sharp of its obligations under the contract. There being breach on the part of C.F. Sharp, it was held liable to Agustin and Minimo for damages. The Court also ruled that C.F. Sharp’s refusal to return the documents submitted by Agustin and Minimo is an actionable wrong which entitles the latter to damages. (C.F. Sharp & Co. vs. Pioneer Insurance, G.R. No. 179469, February 15, 2012)









Photo by Jhon Henson Ong

ICS Sec. Gen. Hinchliffe

Shipowners and seafarers’ unions have joined forces to express concern at flag states’ failure to submit maritime casualty reports as required under international Conventions. The International Chamber of Shipping (ICS – about 80% of the world merchant fleet) and the International Transport Workers’ Federation (ITF-seafarers’ unions worldwide) have made a joint submission to the International Maritime Organization (IMO) commenting on the apparent failure of some flag states to submit maritime casualty reports to IMO. This is a requirement under several international maritime Conventions, including the Safety of Life at Sea Convention (SOLAS). ICS and ITF hope that governments will give consideration to this important issue



at the next meeting of the IMO Maritime Safety Committee in June. In accordance with SOLAS regulation I/21, maritime administrations undertake to conduct investigations into any casualty occurring to ships under their flag, and to supply IMO with the findings. Together with other Guidelines adopted by IMO, this is meant to include incidents defined as being a “very serious marine casualty” involving the total loss of the ship, a death, or severe damage to the environment. “The lack of investigation and accident reports hinders the development of appropriate measures by IMO to address the cause of serious incidents in which seafarers may have lost their lives.” says ITF Acting General Secretary, Stephen Cotton.

“It also frustrates efforts by ship operators to learn from the reports and to amend or develop new procedures, or implement other measures to prevent or mitigate similar future incidents.” adds ICS Secretary General, Peter Hinchliffe. ICS and ITF have suggested that further consideration might be given by IMO to what constitutes “a very serious marine casualty” and the extent to which flag states should retain the latitude which they currently enjoy when determining whether the results of any investigation should be submitted to IMO. As a first step, both have suggested that, in consultation with ICAO (the International Civil Aviation Organization), IMO might consider whether any lessons might be learnt from the approach taken towards the submission and dissemination of accident reports within the aviation industry.


o finance world-wide port operations, International Container Terminal Services (ICTSI) has authorized raising fund to $l-billion, or equivalent bankable currencies. ICTSI VP and Treasurer Rafael D. Consing, Jr. has confirmed the bullish move, approved since January by the board of directors. The maximum aggregate nominal amount of notes outstanding was increased from $750-million to one billion now.

Prior to the increase, ICTSI has already raised $300-million (January 10) and $100-million (January 27) with both transactions at 4.625% per annum coupon rate on a 10-year maturity. The medium-term note facility is handled by ICTSI Treasury B.V., a subsidiary with full board authority. Treasurer Consing says the capital infusion will refinance debts and fund capital expenditures (capex) of about

$550-million for completion of terminals in Argentina and Mexico, ramp-up of construction in Colombia and Davao City in Southern Mindanao. Observers at the local bourse expect ICTSI shares to move upwards having been unchanged at P97 apiece at end of trading third week of August.




Ho Chi Minh City, Vietnam


At the recent ASEAN Ports and Shipping conference in Ho Chi Minh City, Vietnam’s economy appears to be bouncing back. Once again, one of the up-and-coming Rising Stars in the Asia region. Indeed, during the first half of 2013, import-export values increased 16.8% year-on-year, to over USD 125 billion.

logistics sector – complemented with efficient inter-modal transportation networks, emerging economies will struggle to trade, develop, expand and grow. Likewise, limitations in logistics capabilities will inhibit economic growth and consumer prosperity. It is therefore paramount for all stakeholderspublic and private – to recognize the significance of the logistics sector and to allocate appropriate resources to continually develop the hard infrastructure as well as the soft substructures - including regulatory frameworks, ease of international trade and expanding the talent pool.

Inland Waterways and Coastal Shipping Domestic inland waterway transportation leverages Vietnam’s dense river and canal network which provides a highly developed inland waterway system of 17,700 km. The domestic waterborne network comprises 390 rivers with 73 cargo ports that together handle well over 100 million tons of cargo each year. For domestic cargo, this is the second largest transport sub-sector, accounting for over 20% of total cargo volumes. However, with this extensive inland waterway system, there must be opportunities to increase barge traffic closer to 40% of domestic cargo movements, thereby reducing the over dependency on the fragmented and inefficient trucking sector, and generating associated benefits of reduced congestion, reduced emissions and lower costs. Coastal shipping is another under developed sector, whereby long-haul north-south freight movements could be moved from the severely congested ground-based road and rail networks onto mid-size container vessels calling at the major ports along the coast. Container Ports and Shipping With its lengthy coastline of some 3,200 km, Vietnam’s seaport network comprises of numerous small and medium-sized entities, the fragmented sea-side capabilities further hampered by inefficient land-side distribution. Most large ports are located on rivers, like Hai Phong and Ho Chi Minh City, typically with limitations of access from the ocean, water depth, quay length and container yard space, compounded by




Picture: South Vietnam fragmented container port developments resulting in over capacity and underutilisation (source: ICF GHK Hong Kong)

downtown city locations making cargo transfers to other modes of transport difficult and inefficient due to traffic congestion. Hence the development of modern deep-water port facilities at Cai Mep - further out from HCMC and closer to the ocean.

Saigon city river ports in downtown HCMC, thereby supporting the existing inefficient operations within the busy city, with the related congestion and pollution, and further entrenching the incumbents’ reluctance to move cargo operations to the new Cai Mep facilities.

However, as discussed at the ASEAN Ports and Shipping conference in July, the fragmented approach to the development of multiple container terminal facilities at the Cai Mep-Thi Vai port complex - situated on the southeast coast some 50km from Ho Chi Minh City - has resulted in huge over-capacity, to the extent that operations at several of the new terminals have been suspended, due to a shortage of cargo and absence of ships.

As a ray of sunshine amongst the gloom, CMIT (Cai Mep International Terminal) see many positive opportunities for Vietnam to capitalise on the newly constructed, modern, deep-water terminal facilities and their strategic geographic location near the ocean, not least of which is to connect south Vietnam to the major international trade flows from Asia to Europe and USA, eminently feasible assuming larger container vessels can be persuaded to return to Cai Mep and that multimodal hinterland connectivity can be enabled through effectively integrated logistics networks.

Distance from major industrial zones, together with limitations in land side connectivity - and associated additional cost implications - all combined to make cargo owners reluctant to utilise the newly built facilities, in turn making shipping lines question the viability of making port calls at the new terminals. Compounding the unfortunate scenario is the continuing operation of the

Logistics networks essential for Economic Growth It is important to recognise that Logistics is both a key enabler of trade and a limiting factor in economic growth. Without an effective and efficient

With the resurgence of expanding economic prosperity in Vietnam again driving increases in cargo volumes, the infrastructure limitations will prove to frustrate opportunities to optimise

logistics networks. However, with increasing private sector investment through PPP models, there is an optimistic outlook for accelerated improvements in transportation fixed assets, grids and capabilities. In the international context, Vietnam’s location on the South China Sea provides access to the main intra-Asia and inter-Asian shipping routes, which are forecast for above average growth in the coming years. Adopting a more holistic and integrated approach to deepsea port development, and the related multimodal hinterland connectivity, will enable Vietnam to better capitalise on its strategic position and vast potential – with many opportunities to empower performance and growth throughout regional supply chain ecosystems in this Asia Era.

Mark Millar provides independent, informed perspectives on supply chain strategies in Asia – covering China and ASEAN regions. His ‘Asia Supply Chain Insights’ presentations, consultations, webinars, seminars and corporate briefings help companies to improve business operations, plan more effectively, and increase the efficiency of their global supply chain ecosystems. As an industry thought leader, clients have engaged him as Speaker, Moderator or Conference Chairman at more than 285 events in 20 countries. The Global Institute of Logistics recognised Mark as “One of the most Progressive People in World Logistics”.

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As New Deliveries Surge



Latest available data on global freight indicate continuing doldrums on freight rate, particularly in the European Union and in the United States.

The ratio of container TEU capacity on-order should drop 20% this June, analyzed from trading fleet records gathered by Braemar Seascope. The broker notes the downtrend given that the container industry is expected to take delivery of record volumes of TEU capacity this year. Jonathan Roach, Container Market Analyst at Braemar Seascope, says, “With more than 1.7m TEU expected to be delivered in 2013, the ratio is set to fall to approximately 16% by the end of the year. During the six year ordering boom between 2003 and 2008, in the region of 10.0m TEU of containership capacity was ordered.



The order book ratio peaked at approximately 60% in 2007, when in excess of 3.0m TEU was ordered. In the five years since the global financial crisis, vessel ordering has declined; from 2009 to 2013, we estimate that just 4.0m TEU will be added to the order book.” He adds, “Even though ship finance has become more difficult to secure since the 2008 banking crisis, new orders have increased in 2013 and the new building market certainly has not collapsed – rather new building activity is ticking over with selective and niche container ship ordering.

This year to date, we have noted 80 container ship orders with a combined capacity of 580,000 TEU. In the corresponding period in 2012, only half that number of ships was contracted, with a combined TEU capacity of 230,000 TEU. Even with underwhelming global container demand seen in 2012 and a similar growth pattern expected this year, new orders are still materialising as shipyards reduce newbuilding prices in a strategy to bolster and maintain their forward cover”.

Imports remain below pre-crisis peak; recovery appears dependent on Asialed growth. Figures may be confirmed from the July 2013 issue of the Statistics Brief compiled on a global scale by the International Transport Forum (ITF). Hans Michael Kloth, ITF Head of Communications, based in Paris, France, says details of the July-2013 Statistic Brief may be downloaded at statistics/statbriefs.html




UK MINISTER COURTS GREECE; PITCHES FOR LONDON SHIPPING WEEK English Minister Stephen Hammond (MP-Shipping) has just returned from a Greek-British Shipping Forum where he addressed Greek businessmen. Maritime UK reports the success of the event and Britain’s growing shipping industry. MP Hammond gave the opening speech in Athens alongside Greek Maritime Minister Mousouroulis. The British solon met key players in the Greek maritime world, opening opportunities for further strengthening ties. Greece is an important client of Britain, a fact Mr. Hammond underscores as he assures Greek clients quality flag, attractive tonnage tax regime, strong competitive ports expert maritime services and vibrant maritime training programmes. With a stable regulatory framework, UK is a great place to do business, claims Mr. Hammond. He adds, “… the Greenwich Meridian quite literally makes us the centre of the shipping world – our central time zone means we can do business with both sides of the world in the same working day.



We are in a global race, and nowhere is that more apparent than the shipping industry. The UK has a proud maritime history and it is a sector that remains of key importance today, not only through shipping and ports but also the maritime professional and business services sector on which the industry relies. The City of London is rightly recognised around the world as a vital hub for these services.” London International Shipping Week in September may give the UK maritime sector a chance to shine, showcasing all it can offer to businesses locating operations in the UK or making use of its renowned maritime services to remind the world how great British shipping really is. Shipping is big business in the UK, worth £14bn per year to the economy. More importantly, it is steadily growing, despite challenges at home and abroad. Gross tonnage has more than trebled on the UK register over the past decade. London remains the largest maritime centre in the world for professional, business and financial services. UK is

Minister Hammond

keen to hold its leading position over strong global competition, particularly from the Far East. The UK government sees shipping as an engine for growth and will do what she can to promote it at every opportunity. The maritime industry is fully appreciated at the highest levels of Government, vital that UK continue to work in close partnership with this globalised and fleet footed industry. Minister Hammond has established a body of senior representatives Government and industry with a clear focus on maximising growth and opportunities while maintaining a stable fiscal and regulatory environment. The UK shipping minister ends with a pitch for the London shipping forum by September.




SRI LAUNCHES LEGAL SERVICES CHARTER Seafarers’ Rights International (SRI) has launched a Charter of Good Practice for the Provision of Legal Services, an important support project for seafarers worldwide. “For seafarers, seeking the advice of a lawyer can be one of the most stressful events of their career,” says SRI Deirdre Fitzpatrick, Executive Director. “Not only are they dealing with the effects of the incident… but they are also pursuing a course of action which too often seems fraught with confusion, difficulties and worries about expense.” Fitzpatrick adds, “The first hurdle often is to find a reputable lawyer who is knowledgeable about seafarers’ rights’ issues, and who is willing and able to represent the seafarer at a reasonable cost.”

He explains the Charter, “… is a set of professional ethics to bind lawyers working in any jurisdiction around the world, taking into account the particular concerns of seafarers. It provides reassurance that the seafarer client will be treated in a certain way.” “As part of our work, we frequently encounter seafarers in need of legal assistance. Whilst we do not recommend one lawyer or law firm over another, we hope it can assist seafarers to have access to a list of lawyers who have signed up to and accepted that they are bound by the principles in the Charter,” the director continues.. Subscribers to the Charter are lawyers professionally licensed to practice in their respective jurisdictions. SRI is delighted the response to the Charter has been excellent with commitment from

over 100 lawyers from 50 law firms across 34 countries. SRI will keep the list of subscribing lawyers and law firms under review. It shall call on more lawyers with relevant expertise to visit SRI website to tap on to the Charter. This is expected to trigger positive reactions from other bodies in the maritime industry to work with SRI for more expert lawyers seafarers may access to. Full details of the SRI Charter are available at subjects/using_lawyers Marino World picked up the SRI launch from Ms. Debra Massey of Elaborate Communications, United Kingdom.


PFI Asia

in association with

ASEAN Port Expansion & Terminal Efficiency

Handling Technology

8 & 9 October 2013, Suntec, Singapore



In an increasingly competitive environment, the world’s ports & operators are under pressure & scrutiny to realize their full potential & ensure they are being managed & run as efficiently as possible. This highly focused event will investigate the challenges ahead for the region’s developing ports sector & look at key drivers & inhibitors to expansion & Container development. Handling With a detailed look at the issues, trends, outlook & solutions impacting ports & terminal development in the ASEAN region, key topics to be covered will include:



São Paulo

Handling Technology Technology

ConferenCe topiCs

who should attend

CoMMerCial outlook & planning:

addressing operational Challenges:

• • • • • • • • •

• Transport capacity & efficiency planning • Opportunities for re-design/expansion of existing ports & terminals • Investment for infrastructure & operational equipment • Integrating ports, inland terminals & logistics network to improve supply chain performance • Building sustainability into port operations • Integrated port solutions • Innovative solutions to operational challenges • Technologies for efficiency & optimization in terminals • Complex IT project implementation

Market intelligence on ASEAN ports expansions & developments Institutional & policy reforms Capacity crunch or crisis? Reclaim or rebuild? User/investor expectations Investment opportunities in the region Planning & ports – happy bedfellows? Port PPPs investment & financing What effects will the mega carriers/P3 Alliance have on the region’s ports? • Shipping lines expectations from port operators

reasons to attend

who are we?

• examine developments in the market place • recognize key opportunities for your business • Maximise your position in the market • Meet potential business partners • Create unique business advantages • hear case studies & best practice solutions from industry leaders • network with your industry peers to exchange ideas & gain knowledge

Port Finance International is a leading information provider to the global ports & terminals sector. The website provides up to date news, features & analysis relating to finance, investment, operations & developments in the ports sector worldwide. The respected PFI conferences are attended by some the industry’s foremost experts & organisations & are held in strategic locations around the world. These give the participants an overview of the opportunities & challenges of port developments & investments in each market & a chance to meet & network with market leaders & benefit from groundbreaking news & research.

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This unique conference will look at ASEAN port developments both from an investment & strategic viewpoint, as well as a focus on operational concerns. We invite executive level participants to join us from Technology • Government/Industry Bodies • Port Authorities • Port & Terminal Operators • Banks & Investors • EPC Companies • Port Equipment & Technology Suppliers • Shipping Lines • Marine Services • Legal & Insurance Firms • Freight Forwarders & Logistics Providers

Container Container

Handling Handling Technology


partiCipate | speak | sponsor

Save the date in your diaries & contact us using the methods below to register your interest. Contact: Cathy Hodge e: t: +44 20 7017 3411 skype: cathymh1




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