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the Baltic


Freight derivatives market looks East SEPTEMBER 2010 T h e O f f i c i a l M a g a z i n e o f t h e B a lt i c E x c h a n g e



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BALTIC Editor’s letter

The Baltic is the official magazine of the Baltic Exchange Tel: +44 (0) 20 7623 5501 E-mail: Website:


W H Robinson editor

Lucy Budd

The Baltic is published for the Baltic Exchange by Maritime Media The Diary House, Rickett Street London SW6 1RU Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: The Baltic annual subscription rates £110 for UK, Europe or the world, sent airmail including P&P

Tel: +44 (0) 20 7386 6120 E-mail:

SALES manager

David Scott E-mail:


Keith Clark

ISSN 0967-0394 This publication is printed on PEFC certified paper. PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

The Baltic is published on behalf of the Baltic Exchange and is supplied to members as part of their annual membership package. However, the views expressed in The Baltic are not those of the Baltic Exchange, its directors, its officers or the publishers unless


expressly stated to be such. The Baltic


Exchange is the world’s premier and oldest international shipping market. Most of the world’s open market bulk cargo chartering

Freight derivatives market looks East

is negotiated at some stage by Baltic members who represent leading international companies. Other activities include the world’s most important market for buying and selling ships, specialist freight by air and commodity dealing. The Baltic Exchange operates a strict code of business ethics encapsulated in its motto ‘Our Word Our Bond’. The Baltic Exchange disclaims any responsibility for the advertisements contained in this magazine


and has no legal responsibility to deal with them. The responsibility rests solely with the publisher. T H E O F F I C I A L M A G A Z I N E O F T H E B A LT I C E X C H A N G E

OFC.indd 1



hina is the engine driving much of the change in the shipping sector today – increasingly as a direct player in the market, as well as a consumer of shipping services. The Baltic Exchange will be holding its annual FFABA meeting in Shanghai later this year, strengthening links between the Baltic Exchange and shipowners, brokers and charterers in this vital region. In the cover story, Neville Smith looks at the development of the derivatives market in the Asia Pacific region, and its likely role in the future. Elsewhere in the magazine, we look at the continuing problem of piracy and the efforts that the shipping industry is making to deal with it, as well as what it means for owners and charterers. BIMCO ‘Green’ shipping and the prevention of pollution continue to be major concerns, for the industry with the IMO preparing to debate measures for the reduction of shipping emissions this autumn. We look at the problem from a variety of angles, including the long-term effects of the Deepwater Horizon oil spill for the offshore industry and the shipping support sector. The Baltic Exchange continues to play an important role in providing social and networking events – as our reports from the Baltic Exchange cricket match and tennis tournament show.

26/08/2010 10:30

theBaltic September 2010



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Contents 1 Editor’s letter Chairman’s message 7 Mark Jackson  7

Industry News 9 People, places, plcs Baltic briefing 11 Offshore disputes 11 Baltic Exchange training courses


11 PR for maritime companies 12 Freight Derivatives Forum: Shanghai 12 Honorary life membership for IMO secretary-general 13 New sales & marketing manager 14 $600,000 raised for the Sailors’ Society


16 Baltic vs Lashings 18 Fehr Cup tennis tournament celebrates 75th anniversary 20 Wine notes 22 Sporting contacts Key Baltic Exchange contacts


Logbook 23 Workhorses of the sea Baltic Comment 25 Michael Grey


State of the market 27 Tankers 30 BIMCO 33 Heavylift 37 S&P 39 Towage & salvage 41 Dry bulk


42 Shipmanagement, crewing and education theBaltic September 2010


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Contents Environment 55 Green shipping Oxford Analytica 58 BP spill changes global offshore outlook   56

FFA 61 Building the Asian market Ship agencies 69 Looking beyond the port   65

Maritime security 72 Theory into practice 74 Ship detained? It’s still on hire Registration 83 Inspection gets tougher


84 News round-up Cargo focus 85 Containers Geographical focus


87 Upper Gulf Port focus 91 Germany Insurance 93 Insurance parlance


94 ITIC Legal news 96 Legally speaking 97 Commercial profiles


IBC Events

theBaltic September 2010


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Chairman’s message Mark Jackson

Chairman’s message S

eptember sees the Baltic Exchange once again in Shanghai: on this occasion bringing together senior traders and brokers active in the global dry

FFA market for our Freight Derivatives Forum. The event is one of many Asian events and meetings in the Baltic Exchange calendar and we hope that this forum will help attract greater interest and understanding of freight derivative trading in China. When compared with the European market, Asian FFA trading volumes seem small and do Tradewinds

not yet reflect the region’s physical shipping importance. After all, this is a region which generates three-quarters of global iron ore trade, over a third of world oil demand and plays a huge role in shaping the shipping markets.

Mark Jackson

Over half of the Baltic Exchange assessments for the tanker and dry freight markets have an

market assessments, how the forward curves

To this end we have already opened a

Asian element. From Middle East crude oil to

are constructed and why participation in the

representative office in Singapore and are

Singapore, South American iron ore to Qingdao,

various Baltic freight market users’ groups is

gearing some of our route reporting times to

Indonesian palm oil to Europe, or our east coast

important. Beyond the freight derivatives market,

the Asian markets. We run training courses

India to China iron ore assessment, the Baltic

we need to ensure that there is a commitment

for the freight derivatives industry in Singapore

Exchange is at the heart of the Asian shipping

to the concept of doing business enshrined in

and are currently in discussions with a leading

markets, providing shipowners, charterers and

our motto “Our word our bond”. The smooth

Chinese university to offer more in-depth training

traders with an unbiased and accurate picture of

running of the shipping markets relies on trust

across other commercial areas of shipping in

daily freight rates.

and it is vital that we continue to work on this

Shanghai. We hold regular Asian freight market

I believe that we can help increase the

basis. Joining the Baltic Exchange sends out a

information user group meetings and are keen

number of companies trading freight derivatives

clear message to customers and competitors

to get as many Asian companies embedded in

in Asia by demonstrating to potential market

alike that your company operates to the highest

the fabric of the Baltic Exchange as possible.


ethical standards.

We have seen the push in Asia lead to more






underpinned by the Baltic’s freight market

However, we cannot simply assume that

Asian members than ever before. We now have

information and showing how companies

a great brand name and three centuries of

nearly 400 individual members in the region. This

have successfully devised and implemented a

history are going to be enough to send out a

is the fastest growing area for Baltic Exchange

freight risk management and trading strategy

clear message that the Baltic Exchange has

membership and is very much a direct result

which has enhanced their business. If this

something to offer the Asian shipping, finance

of the investment of opening a Singapore office

market is to take off in a meaningful way,

and trading communities. The Baltic Exchange

in 2006.

we need to ensure that Chinese charterers,

is a global organisation which represents global

I expect that in future we will see greater

shipowners and banks understand what the

shipping interests. We are not just the London

Asian representation on our board and that

Baltic Exchange’s independent services are;

market. We may be headquartered in London,

we will spend increasing amounts of our time

why they can be confident in their robustness

which has historically been the world’s most

focusing on Asia-specific issues. In the coming

and of what relevance they are to their day to

important shipping centre, but we are geared

years we will see our physical presence in the

day business. Companies need to understand

towards providing services which are relevant to

region grow and will offer more to the market

the Baltic’s methodology for arriving at the daily

maritime interests around the world.

than ever before.

theBaltic September 2010


Port call one hour ahead

20 nautical miles from here By then, we will have … • • • • • •

made 30 deliveries to vessels had boarding officers on board 6 vessels carried out safety services on 2 vessels processed more than 135 transactions produced 15,000 litres of chemicals carried out 4 customer visits

Making every port your home port

As the world’s leading maritime service network, we strive to get your vessels in and out of port as quickly and efficiently as possible.

People, places, plcs

Industry news Baltic updates TCE assessments

expertise in the dry cargo market is an ideal fit

2004. Since then we have grown and established

for the Group, and we look forward to working

our position here in Germany, and today we have

The Baltic Exchange has switched to calculating

with our new colleagues in driving the business

an expert German staff and strong relationships

its Tanker Time-Charter Equivalent Assessments


with German banks, charterers and investors.

(TCEs) based on bunker prices in line with the

Johnny Plumbe, chief executive of ACM said:

By buying out our partners we become a little

bunker swaps market. The move is designed to

“This acquisition is a strategically important step

more nimble and ready to move swiftly to take

stimulate freight derivative trading.

for ACM as it diversifies our earnings while using

up opportunities that the global recovery may

In future, the basis for TCE conversions

the Group’s already established and significant

present. As we are currently predominantly a

on various routes will be Rotterdam 380 cSt,

expertise in shipbroking. Endeavour is highly

tanker owner we have not been as hard hit as

Rotterdam 380 cSt max 1% sulphur or Singapore

complementary with our recently started venture

some in the German shipping community, which

380 cSt. Diesel or gas oil requirements will not

for dry cargo in the UK. These dovetail and will

had such a strong containership focus, and we

be taken into consideration and the parameters

allow us to start to serve the dry cargo market

are poised for growth. Hamburg has shown itself

of the Baltic Exchange calculations have been


to be an excellent base from which to operate

“We anticipate the acquisition will be

a high quality global shipping group, and we

All TCE voyage descriptions will also continue

earnings enhancing in the first year within the

expect to grow further here as the recovery

to be available on

Group. This is a major step forward in achieving

strengthens and opportunities arise.”

together with port costs supplied by Cory

our strategy of building a complete shipbroking

Brothers Shipping, and exchange rates used

business utilising our considerable client base

in the calculations provided under licence by

and infrastructure and giving a first-class service


to the industry.”

Navieras Ultragas Ltda has acquired Camillo

amended accordingly.

The calculation process is a transparent one,

Eitzen’s majority shareholding in Eitzen Bulk

with subscribers to the Baltic Exchange’s freight

Shipping. The 74.33% shareholding, priced at

market services now able to access a voyage


$93 million, represented Camillo Eitzen’s entire

calculator which shows all the parameters set

Managing director Nick Hubbard has left

shareholding in the business.

when arriving at the TCE rates. They can also

Galbraith’s, the shipbrokers and consultants.

Navieras Ultragas Ltda. has also undertaken

adjust parameters in the voyage calculator to

Hubbard joined Galbraith’s in June 2009.

a mandatory public offer for the remaining

reflect details of their own business.

Charles Fowle, a long-time Galbraith’s director

outstanding shares in Eitzen Bulk Shipping.

TCE calculations were previously based on a range of bunker prices, including Aruba, Augusta,

and head of the tanker department, has been appointed chairman.

Hafnia Management

Fujairah, Philadelphia and Wilhelmshaven.

Hafnia Management A/S has begun chartering


activity in the LR1 sector, and will be active in


The Hellespont group has strengthened its

the MR segment from August. Hafnia Tankers

ACM Shipping Group has acquired Australia-

global base in Hamburg, Germany by buying out

will market and operate product and chemical



the two minority partners in its Hamburg-based

tankers from owners including Lauritzen,

Shipbrokers for AU$10 million (£5.8 million). This

shipmanagement company and reshaping its


acquisition takes the Group into the dry cargo

corporate organisation.

Skagerack Invest and Marinvest in both sectors.







market and is in line with ACM’s stated strategy

The 25% each minority interests held by HCI

Hafnia Tankers is under the control of the

to become an integrated global shipbroking

Capital AG and Peter Doehle Schiffahrts KG in

designated management team of Anders

services provider. Endeavour concentrates on

Hellespont Hammonia GmbH & Co KG have

Engholm, ceo. Commercial directors Peter

the growing Asia Pacific dry bulk market and has

been bought out. Hellespont Hammonia has

Larsen and Søren Steenberg will join the

a wide range of global clients, including major

been renamed Hellespont Ship Management

business after the completion of their current

world recognised blue chip mining, industrial and

GmbH & Co KG, and is now a wholly-owned

‘gardening leave’ periods. Michael Rasmussen,

agricultural companies, as well as shipowners

subsidiary of the Hellespont group parent

senior operational manager, Martin Lorenz,

and operators.

company, which has been renamed Hellespont

senior chartering manager; and Søren Skibdal

Deutschland GmbH.

Winther, senior chartering manager, have already






commented: “ACM’s strength as a global

Phrixos Papachristidis, Hellespont group

shipbroking business is an excellent platform for

ceo, says: “We entered the German market

the Endeavour team to continue its growth. Our

cautiously with the help of two good partners in

theBaltic September 2010

started work at Hafnia Management.


People, places, plcs Braemar

Chinese project and heavy lift market. Simon

to invest $250 million in its Reach initiative,

Braemar Shipping Services says its first quarter

Jiang, with more than 10 years of experience

intended to create the world’s fastest trading

results are in line with its expectations and

as chartering and sales manager in worldwide

engine, establish a world-class data centre

ahead of the same period last year. In an Interim

shipping, has been appointed branch manager.

and seamlessly connect trading communities



in Chicago, New York, Tokyo and London

quarter of the financial year beginning 1 March,

the expertise of both China Shipping, with

to Singapore. These four hubs will radically

group chief executive Alan Marsh said: “Market



activity and transaction volumes have both

Jumbo Shipping, with its rich experience in

been pleasing. The dry bulk chartering market

heavy lift transport.

Management Statement covering the first












the Exchange says. “SGX’s presence in London marks a strong

performed steadily in the first quarter driven

commitment to our customers in meeting and

by the continuing growth in demand for raw

responding to their needs. Building connectivity



the same period tanker market rates were strong

Andy Rham has been appointed managing

strengthen our position as the market of choice

and we were able to conclude a good level of

director of Clarkson Port Services (CPS)

for investors wanting to participate in Asia’s

business. Sale and purchase deal flow has been

following the retirement of Alex Geddes. CPS

rapidly-growing economies, and for issuers

maintained and the forward order book remains

provide agency, stevedoring and port storage

seeking to access global capital markets,” said

at a healthy level. The other shipbroking desks

facilities at a number of strategically positioned

Magnus Bocker, chief executive officer of SGX.

have performed well, particularly containers and

ports in the UK.

materials, particularly from the Far East. Over






The SGX London office is headed by chief

Rham was previously operations director,

representative David Battle. He said: “Many of

Suen Ka Pok, chief representative of

based in Southampton. He started in the

our customers are in Europe and the US, and

Braemar’s Shanghai office for the past six years

industry in 1988 with Killick Martin as ship’s

a London base enables SGX to reach out to

has been appointed to the role of director of

agent at Exxon’s Fawley terminal. He left in 1992

them and prospective clients as we roll out our

Braemar Seascope Limited. Suen Ka Pok has

to manage Hamble Agency, owned by Soufflet

Reach initiative and facilitate participation in

extensive experience in the Chinese sale and

France, involved in shipping grain and fertiliser,

Asia’s growing markets by a larger number of

purchase market.

later operating their UK freight desk. He became

trading firms.”

James Hsiao has been appointed head

part of Genchem when they acquired Hamble

of Braemar’s London and Beijing dry bulk

Agency and part of Clarkson’s in 2006 when it

chartering activities. He has worked in the

subsequently acquired Genchem.

panamax and cape sectors for many years.


Guy Campbell, head of Clarkson’s dry

AXS has updated its AXSTanker software suite

cargo division, has been appointed to the port

to include a number of new features. Brokers

services board.

looking to search the database can do so now

Jumbo Shipping

based on vessel draft and beam restrictions as

China Shipping-Jumbo Heavy Lift Co. Ltd.,

opposed to just using panamax or suezmax


vessel size search strings. There is a new attach

China Shipping, has opened a representative

Singapore Exchange (SGX) has established

file capability on the system as well as an AIS

office in Beijing, China, Together with its office

a London office to better serve its growing

data, sourced from Vesseltracker, map and

in Shanghai, which was set up in 2002, Jumbo

number of European-based customers. The

history access capability. Equally as important,

aims to further strengthen its position in the

London expansion follows SGX’s commitment

Q88 files can now be uploaded via the AXS

a joint venture between Jumbo Shipping and

Support system (e-mail to support@axsmarine. com) and can be exported in PDF, text or Word formats. Users can also search Ice Class and IMO I and II fields, and distance table data has been updated. Stephen Fletcher, AXSMarine’s commercial director, says of the enhancement: “We are very pleased to launch version 3.0 as we have been trying to deliver most of the new features since the beginning of 2010. We initially planned to launch in two phases but as with any plan we had to adjust and decided to launch everything together. We are very confident that the new features are intuitive, though we will provide training for our members who need it.” Several hundred individual shipbrokers use the AXSTanker suite to indicate the positions of some 8,000 ships, update tonnage, prepare position lists, or consult the tanker register, port database, and distance tables and The Singapore Exchange is expanding its London operations


theBaltic September 2010

voyage calculators.

Baltic briefing

Offshore disputes The demand for Baltic Exchange members’ expertise in offshore related disputes is continuing to grow


ddressing a recent meeting hosted by

a wide scope of topics, ranging from dispute

into the equation, and you’ll need even more

the Baltic panel of expert witnesses,

resolution and forensic investigations through to

professionals to perform feasibility studies,

Norton Rose partner, Neil Miller, said

performance reviews on operational contracts,

manage the supply and value chain, and even

a growing offshore fleet size, coupled

valuations of assets and damages, assessment

provide third party controls and due diligence

with a lack of a preferred dispute resolution serv-

of procedures and safe practices, as well as


ice, meant expert opinions were now needed

mediation, arbitration, and litigation.

more than ever.

The Baltic panel for expert witnesses was

“Dispute resolution is an area of particular

set up in 2008 by Baltic member, Peter Vaughan

“The highly specialised nature of the offshore

interest, because the offshore sector, unlike

James, with the aim of making the Baltic

sector, being a cross between the energy

the shipping industry, has no preferred dispute

Exchange the world reference for those seeking

and shipping industry, is giving rise to many

resolution service,” said Miller.

an ‘expert opinion’ in maritime matters. offshore

“By definition, as ‘Experts’ we all have our

“especially as it is becoming increasingly difficult

companies and contractors typically employ

own different professions,” he said, “which

to gain independent advice on a wider range of

consultants to resolve disputes, although the

makes us a truly unique body of reference on


most efficient outcome for all parties involved

maritime affairs. We are ultimately united by the

As defined by the 1995 Merchant Shipping

is not necessarily reached, due partly to a

legal presentation of our findings in our Experts

Act, Floating Production Storage and Offloading

lack of industry-specific knowledge and vested


Systems (FPSOs) fall under the category of ships

interests. An expert witness’ neutral opinion is

He added, “I am delighted we have been

and are thus subjected to the same industry

therefore highly valued and can ensure one party

able to talk about such a fascinating topic,


is no worse off than the other.

and I am confident our witnesses will be able


opportunities for expert witnesses,” he said,




to provide the industry with much needed

“So long as navigation is a significant part

According to ODS-Petrodata, as of 2009 the

of the function of the structure in question, the

worldwide offshore fleet consisted of 149 FPSOs

mere fact that it is incidental to some more

and 709 Mobile Offshore Drilling Units (MODUs).

For details on future meetings, or for further

specialised function, does not take it outside the

Neil Miller said, “Given that the fleet size

details on the aforementioned event, please

definition,” he explained. Having FPSOs fall under the same industry

has been slowly but steadily growing since

independent guidance”.

contact Peter Vaughan James.

2006, it comes as no surprise that expert

standards means that leading figures in the

advice is increasingly needed. In fact, throw

Tel: +33 2430 75032

maritime industry can provide their expertise on

the rising number of offshore wind projects


Baltic Exchange training courses

PR for maritime companies



he next round of the Baltic Exchange’s popular training courses for the FFA market take place in London from 2-5 November. Delivered by Prof Nikos Nomikos and Dr Amir Alizadeh of Cass

he Baltic Exchange’s PR firm, Navigate PR, is running a training course providing advice

Business School, the training consists of two separate courses: Freight Derivatives & Shipping Risk

on how to raise a company’s profile across the

Management and Advanced Freight Modelling & Trading. The courses are also being run in 2011 in

shipping industry. The “PR for non PR people”

New York, Singapore and London.

course covers the maritime trade press, press

November also sees the Practical Dry Cargo Chartering course take place at the Baltic. Held on

release writing as well as a step by step guide to

22-25 November, the course covers the nuts and bolts of chartering bulk carriers. The course is run

strategic planning. The course takes place at the

in conjunction with the Cambridge Academy of Transport.

Baltic Exchange 19-20 October.

See for full details.

See for further details.

theBaltic September 2010


Baltic briefing

Freight Derivatives Forum: Shanghai 15-16 September T

his September, senior freight derivative trad-

with the freight derivative market as well as the

on the afternoon of 16 September. The Freight

ers and brokers from across the globe will be

development of new Asian routes. The Baltic

Market Information Users’ Group is made up of

gathering in Shanghai, China’s rapidly growing

Exchange will also provide details of its plans to

Baltic Exchange shipowning, chartering, financial

maritime and financial services hub, for the Baltic

help grow the FFA market. Delegates will have

and commodity trading members who rely on

Exchange and FFA Brokers’ Association Freight

a chance to make their views heard and play

the Baltic Exchange’s freight market information

Derivatives Forum. The forum takes place during

an active role throughout the forum through

and take an active role in developing the Baltic’s

the six-month Shanghai World Expo, China’s

the use of an interactive voting system as well

freight market services. The group meets on a

showcase event to the world.

as participating in facilitated ‘break-out group

regular basis around the world.

The high level forum focuses on how to

discussion’ sessions.

The two events offer plenty of opportunities

increase Chinese participation in the FFA

On 15 September, prior to the forum, there

for networking, with a dinner hosted by Noble

market and opens with an address delivered

will also be a comprehensive FFA workshop

Shipping on 15 September as well as another

by the Lord Mayor of the City of London and a

conducted in Mandarin and delivered by experts

sit-down dinner hosted by the FFA Brokers’

senior representative from the Chinese shipping

in the derivative field, providing a practical

Association on 16 September. This two-day


overview of how to trade freight derivatives.

event is free of charge to invited guests and

Forum attendees will also hear from top

This workshop is designed to show existing and

Baltic Exchange members.

FFA brokers and other experienced market

potential Chinese freight market participants

participants discussing their views on the latest

the basics of FFA trading and how to execute

See the FFA section of www.balticexchange.

developments in the FFA market. Topics which

a successful freight derivative trading strategy.

com for latest programme details.

will come under the spotlight will include the

A Freight Market Information Users’ Group

growth of iron ore swaps and their connection

Meeting is scheduled following the main forum

Honorary life membership for IMO secretary-general I


from shipping and to ensure that the leadership

secretary-general Efthimios Mitropoulos was

of IMO on all matters related to international

awarded honorary life membership of the Baltic

ocean transportation remains undiluted.




Exchange in July in recognition of his services

Receiving his award Efthimios Mitropoulos

to the shipping industry. Mr Mitropoulos has

said: “As a student of history and a lover of all

served as IMO secretary-general since 2004

things maritime, I cannot tell you what a genuine

and previously served as head of the IMO’s

privilege it is for me to be received in this, one

Maritime Safety Division for 12 years. Making

of the most prestigious temples of international

the award, chairman of the Baltic Exchange

shipping, in the City of London, where the

Mark Jackson, said: “Your period as secretary-

heart of the industry beats stronger than in any

general has been marked not just by your skilful

other maritime centre of the world; and to have

management of the complex environmental and

this Honorary Life Membership of the Baltic

other issues confronting shipping as an industry,

Exchange conferred upon me. It puts me in the

but also by a deep empathy and concern for all

most elevated of company of richly deserving

those who go down to the sea in ships, as well

former recipients of the highest stature and is

as their families.”

an honour for which I am extremely grateful and very appreciative.”

Under Mitropoulos’ leadership, IMO has pushed forward a strong environmental and

Also present at the lunch were the UK

safety agenda with successes in numerous areas,

Efthimios Mitropoulos at the Baltic

Minister of Shipping Mike Penning, Intercargo

including the MARPOL extension, phasing out


chairman Nicky Pappadakis and Efthimios Mitropoulos’ son Elias.

single-hull tankers and more recently securing be both economically sensible for shipping and

Previous recipients of Baltic Exchange life

trade as well as meaningful for the environment.”

membership awards have included Sammy Ofer

greatest challenge still lies ahead – which is

The Baltic chairman confirmed that Mr

(2009), the Duke of Edinburgh (1953), Winston

to find a global, IMO-led solution to carbon

Mitropoulos would have the full backing of the

Churchill (1954), and Maersk Mc-Kinney Moller

emissions from ships. This solution needs to

Baltic in his efforts to tackle carbon emissions


successful agreements on emissions controls. Mark Jackson added: “We know that your


theBaltic September 2010

Baltic briefing

The Baltic board 2010/11 Left to right (front row) Andrew Francis, Tony Westbrook, Paul Over (vice chairman), Mark Jackson (chairman), Haralambos Fafalios, Demetrius Dragazis (Back row) Quentin Soanes, Duncan Dunn, John Tsatsas, Stephen Baldey, Richard Goodall, Colm Nolan, Guy Campbell. Not pictured: Michael

Borrow a painting from the National Maritime Museum

Robson and Lambros Varnavides

Copyright National Maritime Museum, London, 2010

New sales & marketing manager T he Baltic has appointed a new sales & marketing manager, Robin King, to help further

develop the Baltic’s membership services. A former commodity and freight derivatives broker, Robin King brings a wealth of hands-on commodity and freight derivatives experience, having worked for a number of companies, including Clarksons, GFF, EDF Man and AA Hooker since

the late 1970s. One of the first FFA brokers,

Robin King

Robin has been involved with freight derivatives since the concept was devised and was previ-

will still be needed to undertake the more

ously a trader on the BIFFEX floor, the forerun-

sophisticated trades and to add value through

ner of today’s Forward Freight Agreement (FFA).

analysis and guiding principals through their

He is also a former vice-chairman of the FFA

deals. FFA brokers need only look at the oil and

Brokers Association.

energy markets which have moved from an OTC

Wide selection of paintings at the National

to an automated system to see that there is still

Maritime Museum

“I will be actively involved in the Baltex project and helping to raise the profile of the

scope for a good broker.”


Baltic Exchange across the shipping, energy and

With membership levels growing year on

financial markets,” commented Robin King. “I

year, the Baltic Exchange’s international profile

believe that the proposed Baltex trading screen

has grown steadily over the past decade,

where, for an annual fee, companies may bor-

for freight derivatives will make freight derivative

particularly in Asia. “I see a huge international

row paintings from the  museum’s maritime art

trading more readily available to a much deeper

growth potential for the Baltic as more industrial

collection for display in their own offices.

pool of market players and potentially boost

concerns become more directly involved with

The collection is remarkable for both

liquidity massively. There is already a huge

shipping and control their own fleets of ships.

its artistic quality and the variety of subject

interest in the freight markets from banks,

These companies are joining the Baltic Exchange

matter. Its main elements include early-Dutch

hedge funds and energy traders, but many

to gain access to our freight market information

and Flemish marine paintings, British marine

are still holding back because of the current

services and subscribe to the Baltic Code. Our

paintings, portraits, history and genre paintings,

market structure. As a former freight derivatives

word our bond is an important ethos in the

and ships portraits. Artists represented include

broker myself, I understand the misgivings of

international shipping markets and becoming a

Willem van de Velde (the elder and younger),

certain brokers towards this project, but the

member of the Baltic is an important step for a

Dominic Serres, Charles Brooking and Abraham

freight derivatives market needs to evolve and

company to build its reputation in this sector,”


the Baltic Exchange is a natural custodian of a

said Robin King.

he National Maritime Museum in Greenwich, London operates a corporate loans scheme







central freight market screen. Change is being

Married with two young children, Robin King

selection and the scheme helps care for the

driven by the principals who are fed up with a

is a keen musician, scuba diver and maritime

museum’s collection of over 4,500 oil paintings

fragmented market. A successful screen will

archaeology expert. He has been involved with

and 60,000 prints and drawings.

bring price transparency to the market and with

the raising of a number of cargoes from wrecks

that knowledge so much more business can

around the world in conjunction with Oxford

be done.”


He added: “I firmly believe that there will be

For more information visit support-us/corporate-opportunities or contact Leander Feltham, Corporate Membership and

a continuing role for brokers in the FFA market

Robin King can be contacted on

Loans Manager

and that smaller brokers in particular will benefit


National Maritime Museum

by having access to all the prices. Brokers

Tel: +44 (0)20 7369 165

Tel: +44 020 8312 6603

theBaltic September 2010


Baltic briefing

$600,000 raised for the Sailors’ Society


teams, many of them Baltic Exchange



part in the 2010 Three Peaks Challenge to raise funds for

the global seafarer charity, Sailors’ Society. The teams, which came from as far afield as the USA, Singapore, Norway and China, took part in the gruelling 24-hour challenge to climb three of the highest peaks in the UK – Ben Nevis in Scotland, Helvellyn in the Lake District and Snowdon in Wales. The event started at a leisurely pace with dinner aboard the Glenlee tall ship, berthed in Glasgow. The teams soon left their home comforts behind as they set out to tackle the peaks. Overall winners of the challenge were the Cargill Eco Speed team from Geneva,

Parbinder Mahay from Tradewinds -

James Dennison from Clyde & Co descends

who completed all three climbs in six hours 42

Ben Nevis

Ben Nevis

minutes, and came in as the fastest climbers on both Ben Nevis and Helvellyn. They were beaten

The awards ceremony took place at the

to second place on Snowdon by the Clarksons





team who climbed the mountain in just two

after all the weary climbers had completed

hours. Indeed, the Clarksons team was hot on

the challenge. Sailors’ Society chief executive

the heels of Eco Speed throughout the event,

Robert Adams congratulated all the teams on

finishing just 16 minutes behind them.

their hard work, not only in terms of the physical

and mental challenge, but also in pledging to raise an outstanding $600,000 in sponsorship for the charity. Director of fundraising Jan Webber was thrilled with the event: “We’d like to thank everyone who took part in the event and all our sponsors who have supported it. We are particularly delighted that the event has been such a success this year as 2010 is the IMO Year of the Seafarer and therefore this support takes on an even greater resonance. We hope that the teams soon forget those blisters and sore limbs and remember instead the tremendous views they enjoyed at each of the peaks and the fact that their fundraising efforts will make a real difference to seafarers all over the world.” If you can’t wait until the 2012 Sailors’ Society’s Three Peaks Challenge, there are still places available on the equally demanding Wilderness Challenge at the Cairngorms National Park in September. Please contact Felicity Patterson for more information Felicity Patterson Tel: 023 8051 5957 E-mail:

The Baltic Exchange Team


theBaltic September 2010

Baltic briefing

Team Clarksons – second fastest team

The Bacon Buttie Team – Helvellyn night climb

Ince & Co prepare to climb Ben Nevis

Iain Guun, Jonathan Bailey, Graham Delaney – BP Shipping

Mauricio Acuna

Glencore completes Helvellyn

Cargill’s Angels

Fastest team – Cargill Eco Speed

theBaltic September 2010


Baltic briefing

Baltic vs Lashings


hen the bouncer from Jason

frenzied bidding saw a 'competitive total' raised

Gillespie clunked off his hel-

for the Sailors’ Society in their efforts to help

met on its way to the boundary,

seafarers and their families around the world.

Baltic Exchange opening bats-

No-one in the crowd gave the Baltic's brave

man Henry Walpole knew he was in a contest.

XI any hope against their opposition; however,

Adrenalin pumping, the next ball he faced was

they bowled and fielded with great skill to

another bouncer – this time from England's

restrict Lashings to a total of 163 runs with Jay

giant fast bowler Devon Malcom – which was

Mastin (ICAP), Almaher Shelley (MOL Navix), and

dispatched over the hospitality tents for six as

captain Jamie Freeland (AM Nomikos) snaring

commentator Henry Blofeld's distinctive tones

wickets. However, it was with the bat that they

described the scene to a rapt crowd. No, not a dream but the third and fourth

really shone, with Henry Walpole (MC Shipping)

overs at the Baltic's spectacular match against

smashing the bowling to all parts before man

the Lashings World XI at the HAC in the heart

of the match Fraser Larke (ICAP) took over

of the City of London in aid of the Sailors’

and propelled the Baltic score to 156 before a

Society, where nearly 500 Baltic members and

barrage of short pitched bowling from Dominic

guests were royally entertained to a champagne

Cork left them just a few runs short.

reception, lunch and charity auction in the As




The day was the brainchild of Jeremy Palin (Arrow Panamax) who with Baltic Captain

beautiful Prince Consort Rooms. as











Richardson, Herschelle Gibbs, Shaun Tait, John


Emburey and Dominic Cork mingled with their

nerves settle again a rematch is on the cards,

shipping equivalents, Henry Blofeld entertained

with the odds of an upset shortening after

Ed Ritchie (RA Chartering) & Peter Oliver-

the crowd with some choice anecdotes and

the Baltic's courageous display.

Smith (Howe Robinson)

Jamie Freeland and Tom White


theBaltic September 2010

Baltic briefing

Jeremy Penn (Baltic Exchange), Patrick Murphy (Clyde & Co/BECC), Richard Sayer, Callum Ludgate, Ed Royle

James Marshall (NZL), Henry Walpole (MC Shipping/BECC)

John Emburey, (England) with BECC president Jack Richards of

Jason Gillespie (Australia), Shaun Tait (Australia), Jamie Freeland

Orient Shipping (Eng)

(BECC & AM Nomikos)

Barrie Wooderson (Baltic Exchange) and Saqlain Mushtaq (PAK)

Clarksons table

Henry Kidd, Charles Dixey, Guy Willson, Ed Long-Price, Georgie Farr

Howe Robinson table

theBaltic September 2010


Baltic briefing

Fehr Cup tennis tournament celebrates 75th anniversary Richard Fehr, grandson of Frank E Fehr CBE, reports


pecially designed tennis shirts, the

Frank Ford accompanied by his wife Audrey.

his wife Lesley, who represented Rea Bros, the

attendance of past winners, replica

Frank represented Bank Line for several years,

private merchant bank and who won the first of

trophies and an evening barbeque

first winning in 1954. Also present were Nick

his four victories in 1965. The list would not be

were all part of the celebrations of

Greenwood of Shaw Savill who first won in

complete without our indefatigable referee and

the 75th Anniversary of the Fehr Cup Baltic

1956 and contributed to his company having

organiser, Perry Perera, who won his first ‘Cup’

Exchange inter firm doubles held on Thursday

their name engraved on the cup no fewer than

in 1968 representing Gdynia America Shipping

8 July at the Surbiton Tennis and Fitness Club.

12 times, and Ian Pitt, also accompanied by

Lines and went on to win four more times in the

Following a rain free Wimbledon fortnight, the whole day was blessed with glorious sunshine.


The usual format of the competition proper with


Catherine Bacon & Joanne Letcheva

Embiricos Shipbrokers Ltd

Nick & George Embiricos

the 15 losers prior to the quarter finals making up two divisions and playing five games each in an American Tournament kept everyone on the

Braemar Seascope Ltd

grass courts until well into the afternoon. Clarksons 1 (Graham Murray & Allan KentLemon) had a very close second round match


Charles Morrison & Richard Wetzaki


Hugh Twort & Tom Morrison (withdrawn)

Vogt & Maguire Ltd 1

Chris Owen & James Lowry (Withdrawn)

(Nick and George Embiricos) having to play


Adam Bastin & David Stoop (Kametra Kolera)

a championship tie-break in the third set and


Julio Pradera & Emmanuel Papadopulos


Mark Jackson and Mike Sysum


Andy Underwood & Alex Wood


Dina Suleimanova & Ashley Keyte


Philip Fourie & Stephen Sharpe


Kazumitsu Futatsuka & Philip Freely


Tom Ravenscroft & Pedro Bravo

against the number three seeds Embiricos

eventually winning 10-8. Galbraiths 1 (Stephen McHale & Charles

Howe Robinson & Co Ltd

Claire & Charlotte Vogt

A M Nomikos & Son (UK) Ltd

Dashwood), the fourth seeds, had an easy passage to the semi-finals but were beaten by Braemar Seascope 1 and took the winning

Noble Europe Ltd

semi-finalists spot. In the final and under the watchful eye of umpire, former winner Steve McHale, Braemar Seascope 1 (Charles Morrison and Richard

Lykiardopulo (Chartering) Ltd

Wetzaki) seeded two, beat the no 1 seeds and

Galbraith’s Ltd

last year’s winners, EA Gibson Shipbrokers (Andy Lawson and Andy Roberts).

Charlie Oughton & Rob Birkett 1

Stephen McHale & Charles Dashwood


Alex Hacking & Brenden Edwards

Lykiardopulo (Charlie Oughton and Rob

E A Gibson Shipbrokers Ltd

Andy Lawson & Andy Roberts

Birkett) headed the American Tournament

Simpson Spence Young Ltd

Graham Bagnall & Henry Trowbridge

Holman Fenwick & Willan

Alistair Mackie & Withdrawn

Section 1 with a total of 25 points out of 33 games and Clarksons 2 (Gary Morgan & Luke Justus) Section 2 with 23 points out of 30


games. During the day we were delighted to see several past winners of the Fehr Cup, including



Graham Murray & Allan Kent-Lemon


Gary Morgan & Luke Justus

Frank Fehr & Co Ltd

theBaltic September 2010

Amanda & Steve Goodman

Baltic briefing mid-eighties. It was also nice to see past players Mr & Mrs Paul Vogt, John Servante and Peter Bullock taking an interest in proceedings throughout the day. Also welcome and competing for the first time was Amanda Fehr Goodman (grand-daughter of Frank Fehr) and her husband Steve, representing Frank Fehr and Co Ltd. Before presenting the Cup and prizes to the worthy winners, Richard Fehr (who actually competed in the late sixties, but whose promising career was cut short by a nasty soccer injury on Hackney Marshes) thanked those whose organisational skills had contributed to the success of the day, singling out Perry Perera and also Costas Maramenides, who kindly distributed the anniversary shirts and single-handedly organised the American Tournament Sections 1 and 2. Before directing all those present

All past winners. Squatting (left to right): Andy Lawson, Stephen

in the direction of the barbeque, Richard thanked the Surbiton Tennis and

McHale, Nick Hubbard. Standing (left to right): Ian Pitt, Perry

Fitness Club and its director, Roy Staniland, for organising the day so well

Perera, Nick Greenwood, Frank Ford, Andy Roberts and Charles

and head groundsman, Lee, for producing such first-class grass courts.


A memorable day!

First Round Howe Robinson 3


Braemar 2


Vogt & Maguire


Frank Fehr

6/0 6/2

Nomikos 2


Howe Robinson 1


Clarksons 1


Galbraiths 2

6/1 6/4



Holman Fenwick & Willan


Howe Robinson 2


Nomikos 3

6/0 6/2

Clarksons 2


Simpson Spence & Young

6/1 7/5

Winners of the Fehr Cup 2010. Richard Fehr, Charles Morrison, Richard Wetzaki and Perry Perera (Referee)

Second Round EA Gibsons


Howe Robinson 3

6/0 6/1

Noble 2


Vogt & Maguire

6/2 61



Nomikos 2


Clarksons 1



6/3 5/7 7/6

Galbraith 1


Noble 3

6/1 6/1

Nomikos 1



2/6 6/2 7/6

Noble 1


Howe Robinson 2

6/4 6/3

Braemar 1


Noble 1

6/1 6/0

EA Gibsons


Noble 2

6/3 6/3

Clarksons 1



6/1 6/2

Galbraith 1


Nomikos 1

6/1 6/1

Braemar 1


Clarksons 2

6/0 6/0

EA Gibson


Clarksons 1

6/0 6/4

Braemar 1


Galbraiths 1

6/0 6/1


E A Gibson

6/3 6/1



Galbraiths 1

Toss of coin

American Tournament


Winners Lykiardopulo

American Tournament


Winners Clarksons 2

Quarter Finals

Finalists EA Gibsons (Andy Lawson and Andy Roberts), Umpire Steve McHale and Braemar Seascope (Richard Wetzaki and Charles Morrison)

Semi Finals

Final Braemar

Third Place

The winning semi-finalists Clarksons1 (Graham Murray and Andrew Kent-Lemon) with their prizes presented by Amanda Fehr Goodman

theBaltic September 2010


Baltic briefing

Wine notes David Hughes offers an overview of Pinot Noir, a fickle and demanding wine


o master it is every wine maker’s

Demand from California’s excellent cooler

long morning sunshine, avoiding the afternoon

dream,” said Adam Wynn as we stood

coastal regions of the variety came under

heat and giving way to the essential cool

surveying the rows of his Pinot Noir

pressure after Pinot Noir’s exposure in the film

evenings. Another factor is the soil, which is of

vines within his Mount Adam Vineyard

Sideways, causing an explosion in domestic

limestone and marl.

situated close to South Australia’s Barossa

interest and consumption of the variety (and

The variety reflects pronounced terroir


a dramatic down-turn for other red varieties

(reflection of flavours from the soil). This makes

particularly Merlot!).

site selection a crucial factor – thus the complex,

Pinot Noir is one of the most difficult grape varieties to grow and make into fine wine. Yet

Further up the coast, Oregon State’s

sometimes tiny domains and land ownership that

wine makers all around the world strive to

Willamette Valley are impressing with the variety

is unique to Burgundy and simply impossible to

produce that end result which will make the

and although the growing seasons are rather

try and explain here.

recipient simply purr with joy.

short, Washington State and British Columbia’s

Historically, particularly in London’s City wine

Okanagan Valley are hanging in there with some

lodges, there have always been two camps:

It is one of the oldest grape varieties to be cultivated for the purpose of making wine; it is known that the Ancient Romans called the variety Helvenucia Minor. Pinot Noir produces small crops; the skins are thin and thus susceptible to various pests

lovely styled Pinot.

Bordeaux and Burgundy. Should we favour

Australia’s best production regions are

Bordeaux where production from a good or fair

Victoria State’s cooler, beautiful Yarra Valley and

vintage will, across the board, be consistent and

Mornington Peninsula, equally matched by the

a safe purchase whether it be a top Chateau or

Pinot vineyards of northern Tasmania.

a Cru-Bourgeois?

and splitting. Those skins have light tannins,

New Zealand flew the Pinot flag many years

Burgundy, however, is simply a minefield.

thus the lighter colour of the eventual wine.

ago at the vineyards of Martinborough, just

The producer is king. Some will make good

The further ‘fickle’ bit is that the variety also

outside Wellington. Then the Marlborough region

wine from the vineyard even in indifferent years,

has relatively high and complex acid levels for

(northern tip of the South Island) produced

whereas some will produce indifferent wine in

a red grape and a good concentration of fruit

plentiful, consistent quality Pinot and latterly,

good years. But when it’s right, Pinot Noir is

is required to balance that acidity. Pinot Noir

further down the South Island, Central Otago laid

a delight to behold. You may see, I am in the

demands warm days and cool nights. If the

claim to the right of producing New Zealand’s

Burgundy camp – strengthened by my four-day

growing season is too warm, the skins can

best (and certainly most expensive) Pinot Noir.

tasting visit to the region last November.

sunburn and the end product has stewed and

Tips to purchase: for a good example with

over ripe flavours. Thus plantings tend to be in

fruit expression, seek mid-priced reliable names

the cooler areas of the countries of production;

from around the new world or the lighter-styled

however, the grower will be aware the variety is

Burgundies: Rully, Mercurey or Givry. But if it is the ultimate Pinot Noir experience

very susceptible to spring frosts. Unlike Claret (Bordeaux) which is usually a

you seek, grab your wallet and head off to

blend of three or four grape varieties, Pinot Noir

seek out a seller who knows. Purchase your

stands alone and is rarely blended with other

Burgundy, head home, pull the cork and match

varieties. The one exception of course is its

with game, mushrooms and excellent company. Therein lies Heaven!

vast contribution in the making of Champagne where it is blended with Chardonnay and Pinot Meunier, and it is fair to say that most great

The Old World

Champagnes and top ‘Sparklers’ from around

Back in the old world, Romania produces some

the world are Pinot Noir driven.

fairly good and reasonably priced supermarket level Pinot Noir. Lighter versions of the variety hail from Italy (Pinot Nero), Germany and Austria

The New World

(where it is called Spätburgunder), Alsace

Whilst the New World tends to produce lighter

(northern France) and there are increased

versions of the wine with prominent and

plantings in England.

vibrant strawberry fruit, there are sometimes justified However, from




native homeland.



‘one Pinot



dimensionalism’. Noir




However, it is Burgundy that produces the greatest of Pinot Noir within the two-mile-wide,

David Hughes was a shipbroker from 19611983 when he “moved from shipping to sipping” – opening a wine bar-restaurant in Old Spitalfields in 1984. After 25 years, the business was sold and he is now a wine consultant. A retired member of the Baltic Exchange, he conducts corporate, company and private wine tastings and is available for information and the supply of wines.

thirty mile-long stretch of hills called the Cote d’Or (Slope of Gold) where the vineyards slope

gently towards the east, providing the vines with

theBaltic September 2010

Baltic briefing

Bomber Command Memorial This group of retired shipping friends visited Portsmouth Historic Dockyard in July. The day included exploring HMS Victory, Warrior, the Mary Rose Museum and a harbour trip to see modern Royal Navy warships. Pictured from left to right: David McNally, Derek Webb, John Servante, Alistair Chalmers, John Wood (organiser), Derek Taylor (photographer), John Hanman, Keith White and Peter Spencer (just out of sight)

New Baltic Exchange companies The Baltic Exchange is delighted to welcome the following new companies into membership:

Carisbrooke Shipping

Eastwill Shipping

38 Medina Road, Cowes, PO31 7DA

10/F Room 1020, 5 Canton Road,

Ocean Centre Harbour City, Hong Kong

Tel: +44 (0)1983 284100

Tel: +86 010 85972952


etired Baltic member Harry Hughes has been in touch to make readers aware

of the Bomber Command Memorial Appeal. Harry Hughes himself flew 76 missions with 102 and 692 Squadrons over Germany in the

Eastern Sea Transport

Island View Shipping International

Second World War. 55,573 men from Bomber

Eastern House,

200 Cantonment Road,

Command gave their lives, but there is currently

9 Timber Pond,

#06-04 Southpoint,

no memorial commemorating their heroism.

M A Jinnah Road,

Singapore 089763

However, permission has been granted for an

Karachi 75620,

open style pavilion at the Piccadilly entrance to


Tel: +65 63 23 0048

Green Park and funds are being raised.


Tel: +92 21 32851945 56

Saxo Bank

For further details see:


Sadly departed We regret to report the passing of the following members

Ray Ackers

Christopher Gompertz

Patrick Metaxa

Mr Ackers was first elected a member of

Mr Gompertz was first elected to the Baltic

Mr Metaxa was first elected to the Baltic in

the Baltic in 1962 and represented Simpson

Exchange in 1964 and worked for Baltic

1959 and represented Rank Hovis from 1965

Spence and Young until becoming a retired

members such as Eggar Forrester, Killick

until becoming a retired member in 1993.

member in 1992. Members wishing to

Martin and Docenave.

Mr Metaxa also served as a Baltic Director

remember Mr Ackers may like to place a donation with either Prostate Cancer or Unique

Robin Angus Graham

between 1970-73.

(charity for rare chromosome disorders).

Mr Graham was first elected to the Baltic in 1965 for Tatham Bromage & Co Ltd. Between

Edward Sydenham

Robert Adam

1972-1979 he represented Sir William Reardon

Mr Sydenham was first elected to the Baltic in

Mr Adam was first elected to the Baltic in 1954

Smith & Sons Ltd and then in 1979 founded

1964 representing P WighamRichardson. He

and during his membership represented Walter

Angus Graham & Partners. Mr Graham was a

then went on to represent Abetone Chartering

E Frank, Gdynia America and Krohn & Co

Retired Member from 1998 to 2003.

between 1987-199

Kenneth Long

Nigel Taylor

(Shipping & Trading) Ltd.

John St.Clair Gainer

Capt Long was first elected a member of

Mr Gainer was first elected to the Baltic

the Baltic in 1992 for Intercargo. Between

Exchange in 1953 and during his membership

1999-2000 he was a sole trader member, and

represented Bunge & Co Ltd. In 1989 he

from 2000-2005 he represented the London

became a Retired Member of the Baltic.

Metropolitan University.

theBaltic September 2010

Mr Taylor was first elected to the Baltic in 1972. During his membership he represented Nielsen Shipping, Davies & Newman, BMM & London Shipbrokers and Anderson Hughes.


Baltic briefing

Sporting contacts There are many sports clubs associated with the Exchange and in most cases they are open to both members and staff of member companies Baltic Association Football Club

Lawn Tennis Club

Sub-Aqua Club

Stephen Calafti

Crispin Eccleston

Lorraine Burns

Anglo Greek Chartering, The Baltic Exchange

Tel: +44 (0) 20 7369 1654

The Baltic Exchange

38 St Mary Axe, London EC3A 8BH


38 St Mary Axe, London EC3A 8BH

Tel: +44 (0) 20 7283 9621

Tel: +44 (0) 20 7369 1638

Sailing Association


Cricket Club

Simon Cox

Jamie Freeland

Howe Robinson Shipbrokers

Young Baltic Association

AM Nomikos, 4th Floor

77 Mansell Street, London E1 8AF

Crispin Eccleston

40 Grosvenor Gardens, London SW1W 0EB

Tel: +44 (0) 20 7457 8421

The Baltic Exchange

Tel: +44 (0) 20 7488 3444

38 St Mary Axe, London EC3A 8BH

Golfing Society

Tel: +44 (0) 20 7369 1654

Chris Cox, c/o Frank Symons Ltd


Devonshire House 146 Bishopsgate, London EC2M Tel: +44 (0) 20 7377 5423 E-mail:

Key Baltic Exchange contacts Management

Government Broker


Tel: +44 (0) 20 7283 9300

Pat Swayne

Robin King

Fax: +44 (0) 20 7369 1622/1623

Tel: +44 (0) 20 7369 1668

Tel: +44 (0)20 7369 1637

VPN 171 2000

Fax: +44 (0) 20 7623 6644




Chief Executive

Dispute Resolution

Willy Lyth

Jeremy Penn

Barrie Wooderson

Tel: +44 (0)20 7369 1625

Tel: +44 (0) 20 7369 1624

Tel: +44 (0) 20 7369 1674



Fax: +44 (0) 20 7623 6644

Freight Market Department


The Baltic Exchange (Singapore)

PA to Chairman and Chief Executive


8 Eu Tong Sen Street

Jill Bradford

Bill Lines

#17-87 The Central

Tel: +44 (0) 20 7369 1621

Tel: +44 (0) 20 7369 1653

Singapore 059818



Tel: +65 6377 0654

Philip Williams


Baltic Exchange Charitable Society

Membership Manager

Richard Butler

Tel: +44 (0) 20 7369 1633

Tel: +44 (0) 20 7283 6090


Robin King


Events and Room Hire Head of Finance

Crispin Eccleston

Duncan Bain

Tel: +44 (0) 20 7369 1654

Tel: +44 (0) 20 7369 1627




theBaltic September 2010

Baltic website:


Workhorses of the sea Today’s reliance on bow and stern thrusters and integrated bridge control systems has reduced the need for ship handling tugs, but up to the 1960s almost all ships of any size needed shepherding in and out of port by those ubiquitous workhorses. Ambrose Greenway provides a nostalgic photographic essay on some veteran steam tugs


elching smoke, the Mataras tows a

in South American west coast ports for the

removal from ships of the Western Fleet gathered

heavily laden Greek bulk carrier through

Pacific Steam Navigation Co. Sold to Chile in

in Torbay for the presentation of new colours by

the shallow channel off Buenos Aires

1938, she was that country’s premier tug for

HM the Queen in late July 1969. Tactful was built

in February 1969. Built at Wilmington

many years and was responsible for laying the

as Everard’s F T Everard in Great Yarmouth in

Del. in 1908 for the US Revenue Cutter serv-

large single point-mooring buoy at the port of

1928 and later served the port of Fowey as the

ice, forerunner of the USCG, she was sold to

Quintero. Later saved from being sunk, she was

green and black-hulled Tolbenny from 1951 to

the Puget Sound Tug & Barge Co in 1934 and

gradually restored by a group of enthusiasts

1965. She was scrapped in Plymouth in 1973.

served other west coast owners before being

and was accorded Historic Monument status in

The twin-funnelled salvage tug Cabo Espichel

sold to the Argentine navy in 1947. She towed

1990. Since 1994 she has been a museum ship

was the largest of three tugs completed by

a barge carrying six war surplus US military tugs

in Talcahuano but sadly was capsized by the

Harland & Wolff, Govan for Lisbon Harbour

on her delivery voyage and later appears to have

tsunami associated with the Chilean earthquake

Board in 1927/1928. She measured 395 gross

sailed as the civilian Ona Sol before being broken

earlier this year. Her owners are hoping to

tons and her twin screws gave her a speed of

up in 1983.

salvage her.

13 knots. Although mainly employed on harbour

Depicted in Valparaiso early in 1969, the

Plymouth-based ‘Tacky’ Reynolds’ was the

towage, she was also used for salvage duties on

magnificent Poderoso (Powerful) was built in

last UK owner to use coal-burning tugs. Here

the Portuguese coast and was eventually broken

Liverpool in 1911 to carry out towage duties

its Tactful (foreground) and Trevol assist in gash

up in 1973 after a career of 45 years.



theBaltic September 2010



Tactful and Trevol

St Canute

The icebreaker bow of Fowey Harbour Commissioners’ St Canute betrays her origin as the Sanct Knud of Odense built at Fredrikshavn in 1931. Acquired in 1961, she assisted china clay ships in the Cornish port for seven years before being sold to the Trust running the Exeter Maritime Museum. When that organisation folded after some 30 years, she was acquired by a Swedish gentleman, renamed Stockvik and, after repairs in Terneuzen and Amsterdam, eventually arrived in Stocka in the Gulf of Bothnia in August 2000, since when she has been undergoing restoration. Seen approaching the Royal Docks in the early 1960s, J P Knight’s small motor tug Kundah

Kundah, Napia and Challenge

overtakes Ship Towage’s Napia and Challenge escorting the inbound Benhope. Napia was built

from demolition in 1973 by Taylor Woodrow

Scotts at Bowling in 1941, she became the

at Goole as Empire Jester in 1943 and joined

who preserved her in St Katherine’s Dock.

London North Eastern Railway’s Central No 3 in

Wm Watkins’ Thames fleet in 1946. She became

Since 1999 she has been owned by the Dunkirk

1946 and was based in Grimsby following railway

J G Efthinou’s Tolmiros in 1971 and spent her

Little Ships Restoration Trust and is still in

nationalisation three years later. In 1961 her

final decade in the Loucas Matsas fleet before

full working order.

ownership passed to the British Transport Docks

being scrapped in 1986. Challenge, a veteran

Yet another example of a war-built Empire

Board and she was renamed Rampside. Sold to

of the Dunkirk evacuation, was built in Aberdeen

type tug was the Greek Posidon, seen here in

Greece in 1973, she spent her last decade as

in 1931 for Elliot Steam Tugs and was saved

Piraeus in 1973. Completed as Empire Fir by

Vernicos’ Vernicos Fani until scrapped in 1986.

Cabo Espichel



theBaltic September 2010

Baltic comment Michael Grey

A case for danger money I

t used to be taken for granted that if you were

There are other risks, with the weight of

to send a ship into a region of the world where

legal systems behind them, that are every bit

there were known hazards, you would demand

as worrying to the owner or mariner as probing

an uplift in the freight rate. The Spanish Civil

rock-infested coasts with inadequate charts.

War comes to mind, with the substantial sums

There are a growing number of jurisdictions

earned by British “blockade runners”, of whom

which seem to send out their officials with the

Captain “Potato” Jones was the most notorious

mission to look for trouble aboard visiting ships.

example. The owners, of course, would tend

Places where a crossed-out entry in the Oil

to suggest that they had no knowledge of any

Record Book will have the officers facing hours

particular risks to their ships as they signed on

of interrogation by hostile law-enforcers. There

their crews, while their broker was simultane-

are ports where “port state inspection” means

ously explaining to cargo interests that the haz-

a license to routinely frighten seafarers who are

ards were such that only a very imaginative rate

doing their jobs to the best of their ability, where

would compensate the owner. It was a question

customs and immigration authorities behave in

of whom you believed.

a high-handed fashion and treat seafarers as a lower life form and potential criminals.

The “tanker war” between Iran and Iraq was another case in point, where there were

Now, of course we have places where any

genuine risks of losing the ship to the heroic

form of navigational incident or accident involving

aviators employed by both combatants who

the ship attracts penalties under criminal law,

were charged with sinking them. But there

Michael Grey

where once a more civilised or liberal regime might have obtained.

were owners who, at a time when tanker rates were bumping along the bottom because of the

in the paperwork, an undeclared aspirin, or the

People know pretty well where these

huge overcapacity, made a mint by risking their

weighbridge has suggested that the amount of

ports are. Would it not be a salutary lesson

ships in these hazardous waters. It was tough

cargo discharged was disappointingly less than

to these illiberal places to boycott them, until

on the crews, however; uncorroborated tales

that anticipated in the bill of lading. The choice

their governments had resolved to behave in

suggesting that there were occasions where the

is stark; either pay this reptile a four figure sum

a more civilised fashion to visiting ships and

hapless ratings aboard ships were under the

in medium denomination dollar bills, or the ship

their seafarers? Whack a 20% surcharge on all

impression they were bound for the Mexican

is arrested, the master and mate rotting in a rat-

freight transactions to compensate those who

Gulf, and only alerted to the dangers when

infested prison, while the P&I Club tries to make

were willing to risk their ships and seafarers in

Exocets started to whizz about, or the Master

some sense of the affair.

the ports of such a state? It’s heresy, of course,

We mostly know where these places are to

and will never happen, but when owners of fine

be found, where the stench of corruption is to be

companies and their shipmasters are charged

There are still hazardous areas in the world,

smelt a very long way offshore. Should there not

under criminal law because of a pollution event

mainly thanks to the depredations of pirates in

be a substantial bonus payable to anyone who

that was caused by cargo lost over the side in

the western Indian Ocean and Gulf of Aden,

would risk a ship in these hazardous waters? Or

appallingly extreme weather, some things have

while a trip to the Gulf of Guinea can be a trifle

maybe a far better idea would be to declare the

just gone too far for the most tolerant sea people.

trying on the nerves, wondering whether it is

region a “corruption risk zone” and require a CGS

Let us have Admiralty Pilot Books spelling out

really the agent’s boat approaching, or a gang of

(Corruption and Graft Surcharge) to be levied on

the hazards that are likely to face the mariners

heavily armed extortionists. But there are other

every tonne of cargo bound for these benighted

who brave these hostile coasts, just as the

parts of the world which, for both owners and the

places. The trouble is, of course, that where liner

overfalls, tidal rips and offlying rocks were the

crews of their ships, can be very worrying indeed.

conferences could possibly get away with such

subject of urgent warnings. Why not mark the

“Captain, you are in big trouble!” Consider

a levy, those in the tramp market would be so

charts with red overlays like those which warn of

the number of places where some evil-eyed

anxious to cut each other’s throats that such an

danger areas, that must be avoided at all costs?

official, his revolver swinging on his hip and his

impost would not stand for a second longer than

Above all, let these people know that if they are

tone triumphant, has discovered some glitch

it took to find another ship.

going to be beastly, there is a cost attached.

called for sandbags to be piled around the wheelhouse.

theBaltic September 2010






State of the market Tankers

Capacity requirement to shift Sandra Speares talks to shipping market analyst Fred Doll – and finds that the early months of the year saw tanker fixtures going better than expected


here was good short term tanker

OPEC accounts for roughly 40% of the

demand during the first four months of

world’s oil and natural gas liquids supply. OECD

Refining changes shift market pattern

2010, extremely high spot fixture levels

countries have roughly 25% of supplies, but

Over the past couple of years, refining has not

during February and March and early

most of the fields are mature, and European

been very profitable in the US, Mr Doll said. The

April, Mr Doll told a meeting of the Maritime HR

production is shrinking. The BP blow-out aside,

same is true for Europe. Things have been a bit

Forum at the end of May. The forum is used by

a key question is whether Americans will start

better in Singapore, but there have still been

the industry – including a large number of tanker

changing their energy habits, Mr Doll said. “If

“difficult times”.

companies – to benchmark salaries and benefits

they do, that will be a very negative development

packages for employees.

for the tanker market.” If on the other hand, if they continue the

There has been very good performance in China, because refiners are selling into a controlled price environment.

existing pattern, there will be a slower rate of

Refining as an industry is under pressure. US

A tale of two segments

growth, “but still growth, which again is very

refineries are only operating at 85% of capacity,

Longer term oil demand is divided into two

important for the tanker market”.

with some refineries being closed, so the US

segments, Mr Doll said. The developing world

So far, OPEC’s capacity is in excess of the

presents a mixed picture. In Europe, refineries

has healthy demand growth. They also have

world’s requirement, Mr Doll said. “We have

are running at around 81% of capacity. Refinery

a growing refining sector as demand grows in

ample oil right now, there is a supply cushion.”

utilisation is a bit higher in Asia and in non-OECD

countries like China, South East Asia, India and

Some of the excess is, however, high-sulphur

Asian countries.

the Middle East, and Latin America. The US,

and therefore difficult to refine.

Europe and Japan are seeing stable oil demand

While refining may be in decline in some

There has been a lot of price volatility recently,

regions, there are refining expansion plans in

he said. The volume of oil being traded in the

the Middle East and Asia. The Middle East

Overall, 2009 oil demand was 85 million

futures market is much higher than the actual

refiners are intending to refine crude oil locally

barrels per day. The mature economies still

volume oil being used, he said. “As a result, a lot

and export it as products or chemicals to the

account for over half of that demand. As far

of the movements are trading movements rather

growing markets in Asia, Mr Doll explained.

as the developing countries are concerned

than fundamentals.”

There are also large export refineries being

or actual shrinkage.

China has 10%, India 4%, and the other Asian

There are also quirks in the US petroleum

built in India. They are not intended to supply

countries about 8%. These economies are

market, he said. The benchmark crude price is

the domestic market. Higher value distillates

accounting for most of the growth in demand.

set at the Cushing, Oklahoma hub and there are

for destinations like Europe are already being

There is also growth in Latin America but the

some supply and transportation problems which

exported from the Arabian Gulf. Mr Doll said that

Asia segment is “key for the tanker market”.

have resulted in atypical price movements.

while maritime companies might have a strong

theBaltic September 2010


State of the market Tankers successful in the tanker segment, Mr Doll said.

European presence now, the growth is going to

years – as President Chavez chose to maximise

be in Asia and the Middle East. “It could be in

dividends from PDVSA rather than reinvesting

What is happening is switching of vessel

crude, or it could be in product tankers, but your

in expanding capacity. As a result, production

types, “as long as the same amount of money

business plan and your business outlook needs

has decreased by nearly 1 million bpd since

stays on the table”.

to be consistent with a big Asian presence. The

2000. Production is of the order of 2.2 million

The other issue to be considered is the

US market is a key market for VLCCs from West

bpd, instead of the projected target of 5 million

single-hull phase out of VLCCs, Mr Doll said.

Africa and the Arabian Gulf. Product tankers

bpd. In consequence, the US demand is being

There are still roughly 22 million dwt single-

are coming into the US from refineries in South

supplied from West Africa or the Arabian Gulf.

hulls still trading, most at a reduced utilisation

America and Europe. Imports are also coming in

in comparison to the double hulls. Ships are

from India to the US West Coast as they have

being sold for conversion and there is some

targeted that market, Mr Doll said. Long-term

Delivery delayed?

scrapping taking place, but scrapping has been

growth in world oil demand is around 1.8%,

The VLCC fleet is made up of around 540

fairly low after a burst of activity at the beginning

he said.

vessels. So far, slippage or delays on delivery

of the year. Possibly, this involved companies

have been in the order of 10% Mr Doll said, in

that had made a prior decision to scrap their

comparison with slippage in the dry bulk fleet in

vessels without looking at the day to day trading

Falling demand

the order of 30%. “You basically have reputable

environment. “The overall orderbook will more

There was a shrinkage in oil demand of 1.5%

owners, ordering from established yards, so the

than replace the single hulls,” he said. If the

last year, the first time that has happened for

orderbook is much more stable than in the dry

reduction in the use of SH tankers sticks and

many years. US demand peaked at around 20.8

bulk sector.”

they are not allowed to trade after the end of

million bpd and is now below 19 million bpd.

About 80 VLCCs are due to be delivered

2010 “that is very good news for 2010 and early

Lower use of road fuel for freight haulage and

this year, totalling 25 million dwt, of which 6

2011”. However, the single-hull is also potentially

lower amounts of driving and possibly decisions

million dwt has been delivered so far. One to

one of the uncertainties which is holding people

on what US drivers choose to drive has resulted

three month delays have been experienced,

back from setting the staff bonus pool at

in lower demand. Japan has also shrunk

some of which may be as a result of severe

present, he said. “We have had high earnings

significantly and Korea is stable. China and

weather conditions, Mr Doll said or it could be a

compared to what people were expecting but

other Asian countries, however, are increasing

systematic delay problem.

if the single-hull phase out does take place the

oil consumption, in China’s case by 2 million bpd

The total orderbook is around 61 million

way that some people are expecting, then those

since 2006. Other Asian countries’ consumption

dwt, roughly 40% of the VLCC fleet. About 19

vessels will be leaving the trading fleet, either

is up by 1 million bpd and other countries round

million dwt are going to be delivered this year,

for scrap or conversion, by the end of the year.

the 2.5 million bpd largely driven by the Middle

30 million dwt in 2011 and 9 million dwt in 2012.

That is a good result for 2010 but “you can only

East, he said.

There are only 12 VLCCs out of 195 being built

scrap a vessel once,” he said and “thereafter all

One thing that helped the tanker market is that

at “uncertain shipyards” he said, and 38 out

of the newbuilding goes straight through to the

China does not have sufficient desulphurisation

of 140 suezmaxes. Whether or not they will

bottom line”.

capacity, Mr Doll said. This is an expensive

materialise, there are still roughly 100 suezmax

Potentially, the boost in 2010 comes from the

process. The Chinese refineries run a lot of West

ships to be delivered from reliable shipyards,

supply side, he said, and that means the ships

African crude and so do other Asian countries

and only 28 out of 156 aframaxes are ordered at

are not leaving the fleet later on so “you’ve taken

and that has created growth in tanker demand

uncertain shipyards. It is probable that most of

all the benefit up front”. Most of the single-hull

for West Africa. The US has also changed its

the orderbook will be delivered.

replacement has already taken place in the

trading patterns due to the Venezuelan situation

So far, owners are negotiating and trying

– one of the major changes of the last 10

to get cancellations but they are not being

suezmax and aframax segments. If one assumes that order slippage this year is as high as 30%, then rates would probably stay high and scrapping reduce. If 5 million dwt of vessels left the fleet this year, that would mean 8% fleet growth, Doll estimated, with a similar figure for 2011. In addition, some vessels used for storage, would then return to the market. There would be fairly low fleet growth if all 22 million dwt single-hulls were taken out of the market this year. However, in 2011 there are 30 million dwt of ships scheduled to be delivered, about 18% of the fleet. This year has been better compared to 2009, both for VLCCs and suezmaxes, but if singlehulls stop trading by end 2010, rates would start high then decrease during 2011 because of the additional capacity coming into the market. Commenting on loan to value convenants, banks are renegotiating these but at a higher interest rate.

Shrinking US oil demand could affect tanker usage

theBaltic September 2010


State of the market BIMCO update

Sanctioned New time charterparty Sanctions Clause to help owners deal with legislation at all levels


IMCO, working together with the International Group of P&I Clubs, has developed a Sanctions Clause for time charterparties. The development of

the Sanctions Clause has been prompted by the recent imposition by the international community of a fourth round of UN sanctions against Iran and by unilateral legislation expanding existing US sanctions against Iran that came into force on 1 July 2010.

Why do we need a clause? The purpose of the various sanctions against Iran is to prevent the development of nuclear weapons capability. As such, the sanctions target imports of certain materials into Iran – particularly refined petroleum products and chemical processing equipment. There is no general prohibition on trade with Iran or with Iranian interests. However, care should be taken to ensure that any cargo for import into Iran is carefully checked to ensure that it is not related to refining equipment or other prohibited material. Similarly, when entering into new business, care should be taken to check that the arrangements do not involve any Iranian entity listed as a company with whom trade is restricted or prohibited. Of particular importance is verifying the identity of the ultimate end user of the cargo. Of significant concern to the shipping industry is that involvement by non-US entities in the importation of refined petroleum products (diesel, gasoline, jet fuel including naptha-type and kerosene-type jet fuel, and aviation gasoline) into Iran, or any assistance in the development of Iran’s domestic refining capability, may result in US sanctions imposed not only on nonUS shipowners (including parent companies), but also on the crew and those who provide services, information and insurance to the vessel, such as managers, the ship’s insurers and their reinsurers.

What happens now?


theBaltic September 2010

State of the market BIMCO update When does it apply? As sanctions are often brought into force within a short period of time, the clause covers the application of sanctions after the vessel has begun an employment under the time charterparty (see sub-clause (b)). Whether the sanctions existed at the time the order of employment was issued, or whether they were subsequently applied, the owners will have the right not to comply with such orders or to refuse to proceed. It is essential that the owners communicate effectively with the charterers if the owners adjudge that the voyage orders will expose the

Sanctions apply to many cargoes entering Iran

venture to sanctions (see sub-clause (b)). The The penalties for breaking the US sanctions

broad application to sanctions and prohibitions

owners must advise the charterers promptly of

are severe and may result in non-US businesses

generally. As such, it reflects the growing use of

their refusal to proceed with the intended voyage

that break the sanctions finding their dollar

such measures by the international community.

and the charterers must provide alternative

transactions blocked by the US banking system.

The reference in sub-clause (a) to “any State,

voyage orders within 48 hours of being notified

Many P&I clubs have already implemented rule

Supranational or International Governmental

by the owners. It may be that only part of the

changes whereby cover will be terminated if a

Organisation” in this context is intended to

cargo on board the vessel will be subject to

member engages in trades likely to expose the

encompass, for example, US legislation (“State”);

sanctions, in which case the voyage orders may

club to sanctions.

EU legislation (“Supranational Organisation”);

be modified to permit the discharge of that part

and UN legislation (“International Governmental

of the cargo at an alternative port, while the rest


of the voyage is maintained.

What does it cover?

As a general sanctions clause, the BIMCO

The objective of the new BIMCO Sanctions

Sanctions Clause will have a longer ‘shelf-

Clause is to provide owners with a means to

life’ when incorporated into time charterparties

assess and act on any voyage order issued

than a clause designed for one specific set of

What are the charterer’s duties?

by a time charterer which might expose the

sanctions against a particular country. Despite

Failure by the charterers to issue alternative

vessel to the risk of sanctions. The test is one

the generality of the Sanctions Clause it is no

voyage orders within 48 hours of receipt of the

of “reasonable judgement” by the owners in

less effective than a provision that expressly

owners’ notice will result in the owners having

determining whether the risk of the imposition of

identifies a country against which sanctions are

the right to discharge any cargo on board

sanctions is tangible (see sub-clause(a)).

imposed or which identifies a state that has

affected by sanctions at a safe port chosen

introduced unilateral sanctions.

by the owners at charterers’ cost. Such a safe

The clause is not specifically designed only to cover sanctions against Iran; it is a clause that has

port may include the original port of loading. In all circumstances, the vessel will remain

BIMCO Sanctions Clause for Time Charterparties

on hire throughout.

(a) The Owners shall not be obliged to comply with any orders for the employment of the Vessel

In sub-clause (c) the charterers are obliged to

in any carriage, trade or on a voyage which, in the reasonable judgement of the Owners, will

indemnify the owners against any and all claims

expose the Vessel, Owners, managers, crew, the Vessel’s insurers, or their reinsurers, to any

brought by the cargo owners or holders of bills

sanction or prohibition imposed by any State, Supranational or International Governmental

of lading or sub-charterers as a consequence


of the change of orders or, in the absence of a

(b) If the Vessel is already performing an employment to which such sanction or prohibition is subsequently applied, the Owners shall have the right to refuse to proceed with the employment and the Charterers shall be obliged to issue alternative voyage orders within 48 hours of receipt of Owners’ notification of their refusal to proceed. If the Charterers do not issue such alternative voyage orders the Owners may discharge any cargo already loaded at any safe port (including the port of loading). The Vessel to remain on hire pending completion of Charterers’ alternative voyage orders or delivery of cargo by the Owners and Charterers to remain responsible for all additional costs and expenses incurred in connection with such orders/delivery of cargo. If in compliance with this sub-clause (b) anything is done or not done, such shall not be deemed a deviation. (c) The Charterers shall indemnify the Owners against any and all claims whatsoever brought by the owners of the cargo and/or the holders of Bills of Lading and/or sub-charterers against the Owners by reason of the Owners’ compliance with such alternative voyage orders or delivery of the cargo in accordance with sub-clause (b). (d) The Charterers shall procure that this Clause shall be incorporated into all sub-charters and Bills of Lading issued pursuant to this Charterparty.

theBaltic September 2010

change of orders, the owners’ discharge of the cargo at a safe port. Finally, sub-clause (d) provides for the Sanctions Clause to run through the chain of contracts of carriage. The BIMCO Sanctions Clause for Time Charterparties is available to download from the Documentary/Clauses section of the BIMCO website ( and is also available for incorporation into time charterparties prepared using BIMCO’s idea charterparty editor. The full text of the clause is shown opposite. Grant Hunter Chief Documentary Affairs Officer BIMCO


Heavy Lifting & Transport in Power, Oil & Gas and Petrochemicals



28th & 29th September 2010 THE CROWNE PLAZA, HAMBURG

Looking to the Future: New Projects, New Vessels & New Limits LEADING EXPERTS INCLUDE:

Thierry Aelans Head of Projects and Operations RWE Innogy Cogen Gmbh

Bill Meyer Director Project Execution Development Foster Wheeler USA Corporation

Tom McGarry Global Logistics Manager M.W.Kellogg Limited

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Huge Discounts For Project Teams! See back for details Heavy Lifting in Action - Site Visits 30th September

Foster Wheeler USA Corporation Fluor RWE Innogy Cogen GmbH M.W.Kellogg Limited Fairstar Heavy Transport N.V. Aker Solutions Doosan Babcock Vestas Central Europe RICKMERS-LINIE GmbH & Cie. KG JACOBS Det Norske Veritas British Energy (part of the EDF Group) Essent Energie Productie BV Skuld GL Noble Denton BARD Holdings GmbH Uhde GmbH Wood Group Engineering (North Sea) Danish Meteorological Institute Ince & Co Liebherr-MCCtec Rostock GmbH Euroports

HIGHLIGHTS INCLUDE: • Supersize me – how big will modules get? Hear from the best brains in the business including Foster Wheeler, M.W.Kellogg Limited, Doosan Babcock and Uhde GmbH

Willo van Berkel

Head of Construction, Operations & Maintenance Division (Belgium & Netherlands)

Jac Weggen Manager Turn Arounds Essent Energie Productie BV

Michel van der Kreeft Director of Construction JACOBS


Official Partners

DON’T MISS: INTERACTIVE WORKSHOPS 27th SEPTEMBER 2010 A: How to motivate and engage employees to work safely B: Reducing the risk of maritime piracy SITE VISITS 30th september 2010 Liebherr-Mcctec Rostock GmbH and Wallman Terminal

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Featured Exhibitors

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To register: l Email: Tel: +44 (0)20 3141 8700 l Fax: +44 (0)20 7222 2685 Please quote your priority booking code: BAL1

Heavylift Update

Heavy going Project work picks up, but rates fail to follow suit


everal heavylift players announced

debris that is saturated with oil. Then this debris

the engineering design verification of a deep-

new contracts in the last few months,

will be stored in a large containment area on the

water jacket and the float-over installation of

giving reasons for optimism in the

vessel’s deck.

the deck.

industry, although rates are still largely

in the doldrums.

The skimming system will collect oil and then

Dockwise is also assisting in the transportation

transfer it to a tank barge working alongside the

of barges to the USA, the Netherlands and

Mighty Servant 3.

Argentina and dredging equipment to the

Although this is the first time the Mighty

Netherlands and Columbia. All of these contracts

The great Gulf clean-up

Servant 3 has been used in such an operation,

are scheduled for the second and third quarter.

Dockwise is assisting in the oil spill clean-up

Dockwise believes the sheer size of the 27,270

Other third quarter awards include transporting a

operation in the Gulf of Mexico and sent its semi-

dwt vessel which is 180m x 40m, means that

semi-submersible rig from Dubai to Brazil and a

submersible heavylift vessel, Mighty Servant

it is perfectly suited to handle this type of large

jack-up rig from West Africa to the Netherlands.

3, out to the site in June. The heavylift firm is


working together with T&T International Fire & Salvage and BP. One of the largest vessels of its type in the world, the Mighty Servant 3 has been outfitted


André Goedée, Dockwise chief executive more




officer, said: “In the second quarter we also

Dockwise also announced 10 awards for

continue to benefit from a slowly increasing

heavy marine transport projects and two

number of inquiries. Tender activity for the years

engineering assignments.

to come remains strong and continues to hold interesting prospects for the larger vessels.”

in Galveston, Texas, with a variety of equipment

Previously he commented that the first

used to collect oil-saturated solid material and

Tender activity holds up

quarter had been “subdued” as expected. But it


Ocean Dynamics Ltd. (ODL), a member of the

had also seen increased tendering activity. “Our

equipment and a stern mounted skimming

Dockwise Group, was awarded a contract by

strategic view of the industry has been confirmed

system, the vessel will be able to collect solid

the China National Offshore Oil Corporation for

by the emergence of a new set of major scale

oily water. Outfitted



The Gulf of Mexico oil spill has provided employment for some operations

theBaltic September 2010




· Lifting capacity upto 900 tonnes per unit. · Rolling and floating cargo upto 7500 tonnes per unit. · Dangerous/hazardous cargoes : IMO/INF · In-house engineering department for loadplanning and risk assesment.

K/S Combi Lift (Head office) • Phone: +45 5816 2030 •

Heavylift Update float-over and deep-water projects for execution

could survive at the current freight levels, he

widening application of Korean risk management

beyond 2012. Dockwise has leadership in this

commented that it was unlikely. But even if a few

techniques, which tend to end up depressing

premium market, where we intend to maintain

individual companies did collapse he did not see

freight levels.”

and grow our presence.”

this as a major force in altering the tidal rise and

BigLift Shipping of Amsterdam has been

fall of freight levels.

The market situation was “trying” before the Euro crisis enveloped the market and had now

involved in several interesting projects recently.

The root causes of the “freight doldrums”

been further exacerbated by the BP/Deepwater

The Happy Buccaneer was engaged by

relate to the mounting oversupply of tonnage,

Horizon catastrophe on the Gulf of Mexico, he

Southern Seawater Joint Venture (SSJV) to

set against a lack of availability of funding for


provide a solution for the installation of two

not only much conventional trade but also, more

This incident meant that the oil company

400 tonne concrete seawater intake towers

importantly, for big industrial and petro-chemical

investors would refocus their risk assessment

crucial to the operation of Perth’s new Binningup

projects, he commented.

and causes the oil companies themselves to

The pain only increased as the industry

review their capital spending plans. These

watched the Euro staggering along to say

may anyway be impacted or delayed by new

Originally designed to be towed to site,

nothing of Sterling, he added. “Stir into this

regulations coming into force, he stressed.

BigLift arranged a suitable lifting plan which

mix a general down-turn in US and European

Bedford admitted his views on the rates

involved a four-point mooring system designed

manufacturing capacity, albeit against the

outlook may seem to fly in the face of the received

so both intakes, which were 60 metres

progressive ‘Asianisation’ of industry – and

wisdom that breakbulk rates customarily recover

apart, could be safely landed using the

things do not look that bright.”

two years after mainstream economic return to

Desalination Plant, which will handle 50 million gigalitres annually.


same mooring spread.


Meanwhile, Enchanter loaded three cargoes





in Europe for the Gulf of Mexico. Starting in

Is the market moving east?

commented, “I have to rest my case that whilst

Middlesbrough, a Flexible Deployment System

“Asianisation” is an important element of the

there is presently a certain level of demand (more

(FDS) was stowed below deck, including a

market which is broadly driven by European-

than we might have hoped a year ago) which

tower section and a 156 tonne tensioner. Then

controlled tonnage, he argued. “Quite simply,

will gradually strengthen, a corresponding and

in Kristiansand, Norway, a 290 tonne knuckle

there is a preponderance of project activity for

significant increase in freight rates is not going

boom crane was loaded on deck. And in

both shipment and delivery in greater Asia,

to happen soon”. Cancellation of quite a number

Gdynia, Poland, five RTG cranes were lifted on

which generally means not only a lesser number

of newbuildings will, however, help to heal the


of revenue sea miles on a project but also the

wounds, he quipped.

After transiting the Atlantic, Enchanter delivered the cargoes in the reverse order of loading. The RTGs were discharged first at Houston, the knuckle boom crane to Port Fourchon and finally, the vessel proceeded to Mobile to deliver the FDS. Fairmount Marine has also been busy in the offshore sector, delivering three rigs belonging to Diamond Offshore to Brazil. First the Ocean Courage, followed by the Ocean Valor and finally the Ocean Baroness were delivered in July this year. The company also repositioned the SSCV Balder from Trinidad to West Africa in what it said was record time, with an overall speed of around seven knots.

Rates continue to suffer But while the market does appear to be more active, the rates are still very much depressed. Addressing a conference recently, Fred Bedford, a board member of Jumbo Shipping, stressed that although the heavylift/breakbulk market is certainly not in terminal decline, the rates leave a lot to be desired. The present freight rate levels are a “pale shadow of two years ago,” he says, and are liable to remain “unremittingly so for at least a couple more years”. Bedford said he felt they would not return to satisfactory or “investment grade levels until 2015 or beyond”. When asked if all of the current operators

Lack of funding for major infrastructure projects has hit the industry hard

theBaltic September 2010



Big spender Some big fleet acquisitions belie the summer ‘quiet period’


n the dry sector, several owners have been

has arranged bank debt financing to cover up

vessel fell from $62 million to $57 million over

making large fleet sales and acquisitions.

to 60% of the $545 million price agreed for the

the same period. Only in the handy sector have

Genco, for example, acquired five handysize

supramax fleet, with the remaining money to be

prices remained largely unchanged over the last

vessels from the Metrostar group and 16

raised from capital markets financing in the debt,

quarter. It remains to be seen whether the strong

equity-linked and equity markets.

rally in rates over August will translate into higher

supramaxes from Stefas SAS, a subsidiary of

ship values.

Bourbon, in June. Genco intends to retain 13

The prolonged decline in rates over June

of the vessels, 12 of which are expected to be

and July has begun to have an impact on

delivered to Genco in the third quarter of 2010,

second hand values, particularly in the capesize

with the remaining vessel scheduled to be

sector, with prices falling from $73 million for


delivered in the first quarter of 2011. While the

a newbuilding resale in May to $67 million in

Tanker prices rose sharply over the first quarter,

handymaxes were purchased for cash, Genco

July this year, while the value of a five-year-old

but have remained largely stable in the last three months, with a new VLCC going for $117 million, according to Platou, while a five-year-old tanker of similar size is valued at $93 million. There has been considerable scrapping activity, with 124 tankers removed from the fleet so far this year, most of them in the sub-70,000 dwt sector. Twelve VLCCs have also been removed from the fleet.

Navios enters VLCC market Some of the most noticeable activity, however, has been Navios Acquisitions’ agreement to purchase a fleet of seven VLCCs for a reported $587 million. Navios Acquisitions intends to finance the acquisition through $453 million of bank debt, $123 million cash and $11.0 million through the issuance of Navios Acquisition shares. Angeliki Frangou, chairman and chief executive officer of Navios Acquisition, stated: “Only 90 days ago, Navios Acquisition was a concept. Upon closing this transaction, Navios Acquisition will control 20 tanker vessels plus options to acquire two additional vessels. This acquisition alone will increase our fleet by almost 296% in dwt.” Ms Frangou continued: “This acquisition represents a strategic expansion into the crude tanker sector. These new capabilities will







transportation industry and enable multiple cross-selling opportunities. We also anticipate opening an office in Asia to facilitate these new relationships and take advantage of the emerging Asian markets.”

theBaltic September 2010


Global leader in ocean towage

Hofpoort 16th Floor, 3032 AC Rotterdam Hofplein 20 The Netherlands

phone + 31 10 240 25 00 fax + 31 10 240 25 99


Towage & salvage

Greening the tug Harbour towage operators are increasingly aware that they have to play their role in the reduction of emissions, particularly because a significant amount of their work takes place in densely populated port cities


enmark’s Svitzer has become the lat-

reach a more cost friendly solution,” says Lok.

est towage and salvage operator to



ports of Long Beach and Los Angeles in January

seek to reduce its environmental foot-

environmentally friendly vessels join its fleet in

2009. The vessel was designed to retain the

print by ordering two so-called eco-

the next 10 years as part of its fleet renewal

power and manoeuverability of its conventional


Dolphin class sister tugs, while significantly

tugs. Part of A.P. Moller-Maersk, the company






The Carolyn Dorothy was introduced in the

says even though the tugs cost around 50%

reducing emissions, maintenance costs and fuel

more to build than regular tugs, Svitzer believes

consumption. This vessel is also quieter than

Foss wins for hybrid tug

its Dolphin sister tugs on the vessel, onshore

In areas where emissions and particles are

At the same time as Svitzer was ordering its eco-

and under water, and it operates on batteries

a concern, Svitzer expects terminal towage

tugs, one of the pioneers of the hybrid tug was

that can be recharged using shore power. The

tenders to become increasingly insistent on

receiving an Environmental Excellence Award

same hybrid technology used to develop the

environmentally friendly solutions and that this

from the Association of Washington Business.

Carolyn Dorothy can also be used to convert

it is a worthwhile investment.

will also be demanded from port authorities, Svitzer chief executive Jesper Lok says.

Seattle-based Foss won the award for the Carolyn Dorothy, a vessel built in cooperation

Svitzer says the new design differs in two

existing harbour tugs and other vessels into hybrid vessels.

with the ports of Long Beach and Los Angeles.

significant ways from conventional models; namely that it is diesel electric and it incorporates selective catalyst reaction (SCR) and a particulate filter. The new ECO-tugs have an engine setup with three individual diesel-electric engines. When the new vessels are cruising or when they are idle in port, they will only use a single engine. But when they need to tow a vessel they can add power by using two or all three engines. The Danish group expects a 10% reduction in fuel and emissions and a NOx reduction of 70-80% per vessel as a result. In addition, the new vessels, which will be built in the Baltija Shipbuilding Yard in Lithuania, have improved insulation and electric winches. “The





acceptable but we intend to keep developing the technology and we will hopefully also

Future tug design will be eco-efficient – but costly

theBaltic September 2010


Towage & salvage Green Tug project shows potential

vessel could deliver a 65 tonne bollard pull with

and maintain in shipyards around the world. The

the handling characteristics of a conventional

uncluttered decks, twin forward and aft winches

Meanwhile, in the Netherlands, the well-known

ASD tug, but it would have zero emissions for

and good visibility ensure ease of handling for

Green Tug project has clearly shown the

most of the time and emissions would be very

the three-man crew.

potential of these new tugs. The aim of the

much reduced overall.

In addition to the main engines, which will

Green Tug project was to produce a robust and

However, OSD warn that the costs of

give a maximum transit speed of 13 knots

workable harbour tug suitable for service in busy

developing the prototype will mean a premium

and BP up to 70 tonnes ahead and 65 astern,

ports but with a 90% reduction in NOx, SOx and

over conventional designs. Discussions are

the Azistern has a 300 kW bow thruster. The

particle emissions and a 50% reduction in CO2

currently going on with port authorities to

compact hull has 423 gt and a design operating


investigate if they are willing to pay this premium.

draught of 4.25 metres.

hydrogen fuel cells and clean diesel gensets

From principle to practice

Propulsion trials

driving a retractable bow-mounted Voith thruster

In the meantime, OSD has built on the Green

Currently, in cooperation with tug operator

and twin electric main drive stern azimuthing

Tug project to launch a new standard design

Iskes, OSD is assessing and comparing

thrusters. Essentially, a Green Tug should have

for a fuel saving and low wake harbour tug.

three different propulsion systems to develop

the ability to manoeuvre while deploying only

The Azistern 3065 tug will deliver 65–70 tonnes

an environmentally friendly (Tier III) and cost-

battery and fuel cell power.

bollard pull from a 31 metre loa hull. The new

effective hybrid harbour tug of 65 tonnes BP

This project brought together many leading

vessel would be powered by two 1,950 kW

with a low emission range of 10 miles at 7 knots.

players in the Dutch maritime industry. Ijmuiden-

diesel engines driving twin azimuthing stern

The three different systems being considered

based companies Offshore Ship Designers (OSD)

thrusters. OSD’s design would lead to a vessel

are diesel electric propulsion, diesel electric

and Iskes Towage & Salvage worked very closely

that would be around 15% more fuel efficient

with batteries, and diesel gensets batteries

on the project, which was partially funded by

when compared to other modern tug designs,

with onshore power supply. The result of this

a government grant. Smit Engineering, Bakker

due to the optimised hull shape.

assessment is expected to be published in

The basic idea was to develop a harbour tug that is powered by a mixture of batteries, PEM

Sliedrecht Electro Industrie, MARIN, Bureau

The Azistern 3065 is the first in a family of

Veritas, Nedstack Fuel Cell Technology, TNO

designs that OSD will launch soon for different

Certainly, the industry is doing its best to

Science and Industry and LindeGas Benelux

fuel-efficient tug sizes. The hulls have a hard

push on with green technology and a number

also took part.

March next year.

chine form which has undergone extensive

of realistic options have emerged, but everyone

OSD, one of the project leaders, has now

tank testing to optimise energy savings during

recognises that the hybrid tug comes at a price.

delivered a full report on the Green Tug project

transit. It also results in a very low wash, which

It is just a question as to whether port authorities

to the Dutch government and its partners. OSD

is important in a crowded port.

value having a greener port enough to dig a little

concluded that it is certainly possible to design

A conventional machinery package has been

and build a low-emissions harbour tug. This

specified to ensure the vessel is simple to build


theBaltic September 2010

deeper into their pockets.

State of the market Dry bulk

The dry bulk guessing game Traditionally a quiet quarter, Q3 has seen dramatic changes in the dry bulk market this year


Kamsarmaxes gain in popularity

Return of the owned fleet?

much of July, the BDI is slowly beginning to pick up again. The capesize

Despite the high level of deliveries, ordering

there could be longer-term changes in store for

sector, which had seen a particularly

remained strong, with 45.3 million dwt ordered

the dry bulk charter markets than the issue of a

severe fall, losing more than half its value since

so far this year, of which almost a quarter was

seasonal slowdown, rapid fleet growth or even

late May, had a sharp uptick in mid August,

placed in July. Orders have been fairly evenly

a long term reduction in commodities demand

heading back over the 3,000 mark for the first

spaced across the sectors, with the exception of

from Asia. Several of the major commodities

time since June - contributing to the fastest rise

classic panamax vessels, which saw a relatively

players are now looking to own and operate their

in the BDI in more than a year. This was attrib-

low rate of orders, with owners preferring post-

own vessels, rather than take them on charter,

uted to Chinese steel mills initially running down

panamax vessels. According to reports in Lloyds

essentially removing a large part of the Brazil-

and then replenishing iron ore stocks. At the

List, many of these are kamsarmaxes, which are

China iron ore volume from the open market.

same time, the likelihood of a poor grain harvest

proving particularly popular with Greek owners

Vale, for example, has placed orders for some

boosted both prices and demand in the handy

as they are easily tradeable. “It is quite a flexible

33 VLOCs. Whether rates remain strong enough

and panamax sectors. With the prospect of a

ship; it has quite high capacity for the size. It is

to make the purchase worthwhile remains to

‘double dip’ in the economy becoming increas-

not like vessels that are built for purpose that you

be seen.

ingly likely, and uncertainty over the amount of

can’t trade easily; these are like currency,” said

tonnage due to enter the market, however, it

Det Norske Veritas, president Tor Svensen

fter a long slide through June and

Some market observers have been suggesting

is unclear whether this represents the start of a

Index Summary

long-term recovery or a brief pause in a gloomy



Fleet growth

still seen considerable growth over the last year, with total capacity increasing by some 14.7%, to 499 million dwt. The strongest growth was seen in the post-panamax (80-100,000 dwt) sector, where the total amount of capacity has


2010 can be delivered in time.” The fleet has


50-60% of the bulker order book scheduled in


believes that: “It is expected that only around


A statement from STX says that the shipbuilder






dwt sold for scrapping in the first seven months


Demolition, meanwhile,

remains almost non-existent, with just 2.3 million


increased by 24.4%.


increased by 40%, while capesize capacity has

of 2010, of which just over half was vessels of 60,000 dwt or below.



theBaltic September 2010



Shipmanagement, crewing and education update

Can supply meet demand? Substantial numbers of newbuildings entering the market will generate demand – and challenges


ccording to recruitment specialists

NKr24 million, leaving it free to concentrate on

Spinnaker Consulting the recession

its ship supply business.

Some of the major issues that are up for discussion involve communications and lack

has “saved shipmanagement com-

According to Captain Szymanski, members

of shore facilities for waste disposal, Captain

panies’ bacon”. Spinnaker chairman,

of InterManager have indicated that the outlook

Szymanski says. Shortage of shoreside facilities

Phil Parry, says that this was firstly because two

is good, and there is no panic. “People are quite

for waste disposal is not a new issue but there

years ago the dollar went back to a stronger

happy with what we have got, we are not losing

are plenty of good ideas coming through as to

position, so shipmanagers’ earnings, which are

vessels. I believe the outcome is quite positive

how to deal with it, he says. “Watch this space

denominated in dollars, went up substantially.

for us.”

as we are now getting there.”

Also, he says, cash rich shipowners who

The key communication issue is broadband

called the market right have been buying up

on board vessels, he explains. “There are a lot

Intermanager looks to the future

of misunderstandings between parties involved.

management, and even if they are not making much money with them at present, they are

So what are the main challenges facing

providing it to the end users,” he explains. “We

“playing the shipowning equivalent of the

shipmanagement for the future? Capt Szymanski

need to grasp this whole issue and deal with

contango game”; buying the ships cheap and

says his personal first challenge is to continue the

it.” This is equally a crewing issue, because

as long as they can service them and not lose

work of Guy Morel, who had been instrumental,

expectations of the younger generation are very

too much money on them, waiting for the prices

he said, in propelling InterManager into “high

high where communications are concerned.

to go up and playing an asset game.

flying circles” including becoming one of the

cheap tonnage which they are putting into

That has also benefited shipmanagement companies in that they are being saved from

There are expense issues and difficulties in

non-governmental organisations represented at

Meeting the shortfall

the International Maritime Organization.

the cost base they have had to endure because

He has been travelling extensively to meet

While this is good news on the shipmanagement

their customer base is doing well. “Some of

the members of the trade association to “make

side, the sector still faces a number of challenges.

them have told us they have had their best year

sure we are all on the same wave length and

Not only is there a crewing shortfall, but demand

ever, which is quite a surprise,” Mr Parry told the

I understand their needs”. His first trip was

means crew may be promoted too quickly, and

Maritime HR Forum recently.

to the Far East, taking in Manila, Hong Kong

without having gained the necessary experience

and Singapore to meet members and potential

or training.

According to InterManager secretary general Captain Kuba Szymanski, who took over the

members. “I will continue doing that,” he says.

Captain Szymanski is upbeat about the

role from Guy Morel in June, while the situation

Developing InterManager in the Far East is

is not necessarily as simple as that, “we are

a priority, as are developing regional meetings.

saying that all InterManager members take

very pleased that the shipmanagement market

Rather than getting members to come to

cadets on their vessels. “We are training new

is not suffering as much as was predicted,

London, “we are going to members”, he says.

blood,” he says. “We are actually full at the

now that people are buying and they have not

Meetings have already been held in Monaco,

moment and haven’t enough spaces for cadets.

the capacity to manage the ships themselves.

Hong Kong and Singapore. “We are listening

If we are talking about shortages, we should

However, we also see the reverse of that, where

to our members, they are telling us what they

take all the cadets that are available because

companies are closing down and third party

want to discuss and areas of particular interest

they are available.”

managers are losing business”.

to them.”

Pressure on margins and falling volumes were

In the UK, he says, there are about 1,500 in

cadets and “they are all screaming to go on

blamed for Eitzen Maritime Services’ decision

places in Poland and Scotland, as well as

board a vessel”. This will provide a pool of

to sell its shipmanagement arm to Sanary for

Cyprus and Dubai.

experienced crew within five to seven years,



number of cadets coming through the system,




theBaltic September 2010

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Shipmanagement, crewing and education update but the groundwork must be done now, he

the market will be buoyant going forward, he

increasing at rates seen between 2003 and

says: “cadets, cadets, cadets, training, training,

said. With a recent plunge in the Baltic Dry index

2009 but at the same time they are not going


of nearly 50%, it is still questionable whether

down either, he says. This is a plus, in view of

Work permits, and visas for crew members

those who have bought newbuildings in the

the fact that in 2008 salary increases were of the

filling shoreside jobs, is also a problem as is

last three or four years have made a “smart

order of 25% per annum.

the thorny issue of allowing seafarers ashore in

acquisition”, Mr Giorgi says.

The officer shortage, he says, is still there as

ports. InterManager has been lobbying hard on

is the crew quality issue. Very rapid promotion

this issue as have other organisations like the

in the past five years has caused an experience

changes, and even in cases where they want

Risk management takes on a key role

training is needed, both ashore and on the

to go to church or make a telephone call. “They

In some markets, like containers, there has been

ships. Berths for cadets are also a problem, he

shouldn’t be treated as second-class citizens.”

a recovery but others, like chemical carriers,

says, with newbuildings not being designed with

InterManager has signed a memorandum of

have been suffering badly. There is still a lot

this in mind.

understanding with the International Transport

of tension in the marketplace, he says. While

Consideration is being given to a project by

Workers Federation to lobby on this issue.

shipmanagers have potentially more business

which a fleet of cadet ships would be introduced,

Nautical Institute. Problems occur during crew

deficit among senior crew members. More

Captain Szymanski says there are plenty of

available, there is equally more risk of defaults,

with onboard training facilities. Incentives should

good facilities worldwide for training seafarers,

and a very detailed risk assessment of the

be offered to owners to build vessels with more

“the problem is getting them enough training

business you are taking on is crucial.

accommodation space, in order to encourage

at sea”.

“There are more opportunities, but some

cadet training.

opportunities you don’t want to take, because

Mr Giorgi believes that there should be more

you don’t think the risk you are taking is worth

integration between ship and shore personnel.

‘Nervous’ market

the management fees the client is prepared to

A vessel should be considered like a company,

While the outlook for shipmanagers may have

pay. You need good quality business, not just

he says, with the master as managing director

improved, the market is still very nervous,

any business,” Mr Giorgi explains.

having a much more integrated relationship with

according to V.Ships president, Roberto Giorgi.

In 2009 V.Ships had to terminate contracts

“It is not a stable market,” he said, with market

for 30 ships as they were deemed to represent

worries on the economy both in Europe and

too high a risk in financial terms.

those ashore. V.Ships has 35 recruiting offices focusing on areas like Russia, India, Ukraine, the Philippines,

One positive outcome of the current market

Croatia, Italy, Bangladesh and Romania. “We

Everyone is looking towards the four main

is that there is less poaching of personnel, Mr

are making much more financial commitment in

economic powers of Australia, China, India and

Giorgi explains, and less movement from one

order to make sure we get the right guys.”

Brazil, and growth in Asia will determine whether

company to another. Salaries are no longer

the US.

Increasing fleet size presents crewing challenges

theBaltic September 2010


Shipmanagement, crewing and education update

News Update A round-up of the latest news from across the sector Nautical Institute opens up membership The Nautical Institute has announced a major revision of membership criteria, extending membership beyond seagoing officers to include all those in control of seagoing ships and those who support them. The initiative was unanimously approved by the Institute’s annual general

Does your international medical insurer go this far?

meeting in Cork. “This acknowledges that in the 21st century there are more than seafarers working to support those in control of seagoing ships,” said the Institute’s chief executive, Philip Wake. “It is necessary to recognise that the safe operation of shipping, whether commercial or naval, is now, or should be, an integration of the command team on board and the management ashore. “This will open up membership to those with operational level qualifications or those in sectors such as offshore, coast guard, port operations, and the management team ashore. We call on them to join and help make a difference to the way ships are operated.” He continued: “Membership of the Nautical Institute will help all qualified

Evacuation to the nearest centre of medical expertise.

seafarers keep up with new technology and regulations, and thanks to our new NGO status at IMO we can give members a direct line to that agency’s decision making.” There are other benefits, too. With membership of 6,500 in over

Whether you’re in the gas or oil business. Wherever you are. You’re just a phone call away. Our 24/7 multilingual helpline is ready and waiting. To get you to the nearest medical centre. As soon as possible.

110 countries and over 40 branches, there are many opportunities for networking and to improve job prospects. “There is also the question of professional recognition,” added Mr Wake. “Increasingly employers are demanding membership of a professional organisation and often cite the Institute as an example of this.”

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Shore personnel are now eligible for Nautical Institute membership

46 Bup_OilRig_270x86_Col_The Baltic_Sept10.indd 1

theBaltic September 2010 23/7/10 11:29:27

Shipmanagement, crewing and education update The new criteria are designed to welcome all maritime professionals with qualifications directly into full Membership (MNI) and to recognise professional development beyond paper qualifications. As a result, all qualified seagoing officers will be eligible to join, as will pilots, harbourmasters, VTS personnel, Designated Persons and other shore-based managers, professional yachtmasters, marine surveyors, maritime lawyers, and maritime health and welfare professionals. A new grade of Associate Fellow (AFNI) has been introduced to


recognise professional development to command of seagoing ships; other senior positions at sea, such as chief officer and chief engineer; and those who have attained senior management positions ashore. Those undertaking initial education and training for a maritime career will be encouraged to join as Associate Members (AMNI), as will ratings, boatmasters and other non-management level personnel. Increasing and expanding the Institute’s membership will amplify the voice of the mariner at the highest decision making forums, said Captain James Robinson, newly elected president of the Nautical Institute. Speaking at his election to the presidency of the Institute, he also highlighted the need for the industry to counter ill-informed comment on shipping casualties by politicians, some media and general public, and indicated that the Institute will continue to work with other like-minded international bodies to ensure that abuses of the Fair Treatment Guidelines are highlighted at the IMO and in the media generally. “The response must highlight the importance of a full and speedy casualty investigation and the need to avoid prejudging the matter until after the investigation and legal process are complete,” he said. “Above all, lessons must be learned to improve safety.”

Norway is one of the leading shipping nations in the world and BI Norwegian School of Management (BI) has a long tradition of teaching and doing research in the Shipping area. Recently, BI added a Bachelor of Shipping and Finance to its portfolio. Bachelor of Shipping and Finance The Bachelor of Shipping and Finance at BI will give you a taste of an exciting and globalised industry: The Shipping Industry. Executive MBA Shipping, Offshore and Finance The Executive MBA in Shipping, Offshore and Finance is a unique programme combining the latest research and theory with a good practical exposure to cutting-edge real-life challenges. To find out more about our Shipping programmes, visit

EU sets up maritime task force The EU has set up a task force to establish a comprehensive “social agenda” for employment and competitiveness in maritime transport, said Siim Kallas, Commission vice-president responsible for transport, speaking at the International Shipping Conference in Copenhagen in June. The task force is to present its results next year. “Quality and innovation is about people: we need now, and even more in the future, highly skilled and motivated staff to safely and efficiently operate our high-tech ships. And we need skilled engineers and workers to design and build these ships. Unfortunately, seafarers seem to be an endangered species in some parts of the world. We therefore want to get more young people interested in shipping and its exciting and various career opportunities. We also need to address better working conditions and develop more open and flexible career perspectives,” Kallas said.


The industry needs more skilled workers

theBaltic September 2010


Shipmanagement, crewing and education update Lloyd’s Register introduces training ‘benchmark’

CMA CGM launches shore programme

and gives confidence to all stakeholders that students’ needs are being met.

Lloyd’s Register has launched a new scheme

On successful completion of Part 2, the

CMA CGM has launched a new training

aimed at helping training providers deliver

trainer will receive a Lloyd’s Register of Approved

programme with a special focus on seafarers

courses to recognised standards.

Training Course certificate and approval mark for

as part of its Specialised Masters in International

The new Lloyd’s Register’s Approved

Part 2. The provider’s course titles will also be

Maritime Management in partnership with

Training Provider Scheme is designed to approve

added to the Lloyd’s Register approved courses


both training management systems and specific

list on its website.

courses, whether these are provided by an

The programme, which will be opened first to

According to Lloyd’s Register, the benefits of

CMA CGM employees and later on to external

independent college or academy, or the training

certification under the scheme include:

candidates, is aimed at seafarers or former

department of a shipping company or manning

• The ability for the trainer to demonstrate to

seafarers who wish to improve their knowledge

agency. It will provide independent assessment

clients that it provides the required level of

in business management, management and

and certification of the provider’s ability and can


international trade. It joins a series of several

act as a benchmark for the marine industry in

• The ability for the trainer to demonstrate to

existing programmes developed in partnership

its selection of courses for staff development

clients that the content and delivery of its

with France’s ‘Grandes Ecoles’ (HEC, ENSTA,

and training.

courses meet set standards verification of

Normandy Management School, Le Havre

the integrity of the trainer’s management

University, IGS…), especially those in the

The scheme has two parts:


Part 1 assesses the training organisation to

Provence region and Marseilles, where the

• Confidence in the quality of the trainer’s

head office of the Group is located. These

establish its ability to provide the required level

course design and delivery.

of training to its customers. It gives assurance

David Taylor, Lloyd’s Register’s deputy

Maritime Management, Maritime MBA, and

that a training provider has established and

service delivery manager, marine training, says:

Master of Science Maritime Management.

implemented a management system for the

“This innovative service will benchmark training

These partnerships are aimed at both sharing

provision of training services, and that the

in the marine industry and will give confidence

theoretical and operational knowledge in order

system is regularly reviewed.

to the training providers, the learners, and their

to develop skills, as well as raising the profile

companies that the learners are getting the good

of the industry and the professions associated

quality knowledge and skills they expect.”

with it.

Part 2 assesses the trainer’s individual courses against their stated learning deliverables

include Specialised Masters in International

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theBaltic September 2010

Shipmanagement, crewing and education update “The Group’s objective is for the company to be a reference in the shipping industry and our partnerships with the ‘Grandes Ecoles’ help us to achieve this level of excellence,” said Thierry Billion, senior vice-president human resources, CMA CGM Group.

Warning on MNOPF deficit Moore Stephens says employers need to act promptly to manage their exposure following notification of liabilities for deficits under the Merchant Navy Officers’ Pension Fund (MNOPF). Employers have recently received notification of their share of the liability arising from the

MNOPF shortfall would pose a threat

deficit under the scheme, which has been set by actuaries at £575m for the period

“Some employers with December 2009 year-

provides evidence of issues which existed at the

ended 31 March, 2009. In addition, there is an

ends, who have reported their results already,

end of the reporting period, for example at 31

outline recovery plan for an additional shortfall

have not been providing for their additional

December 2009.

of £402m. Moore Stephens Shipping Industry

obligation based on an estimate which the

“As a result, employers will be required to

Group partner, Michael Simms, says, “For

actuaries had prepared in November 2009,

provide for their share of the MNOPF deficit

shipowners and other employers, this could

maintaining that there were uncertainties in the

based on their proportion of the historic share

have serious implications for financial accounting

estimated obligation and that they therefore

indicated by the trustees in prior years or on

and reporting, working capital and funding

could not obtain a reasonable estimate of

more recently revised share information from the

issues, potential loan covenant breaches and

their obligation. But that argument can no

trustees. Employers participating in the MNOPF

discussions with existing lenders, as well as

longer be used following publication of the

need to act promptly to manage their exposure.”

potential going-concern issues.

most recent report from the actuaries, which

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theBaltic September 2010


ShipNet has more than 20 years of experience in building and delivering software solutions for the global shipping industry. ShipNet solutions currently enable more than 300 industrial shipping customers of all sizes and trades to effectively manage their business. Our vision is to be the leading maritime enterprise resource planning (MERP) provider. Our solutions are designed to deliver control, automation and efficiencies across all areas of the enterprise through a single integrated platform. Utilising established and leading edge technology and marine industry expertise we will continually look to maximise the benefit received from ShipNet solutions by extending our solution to include new areas for business optimisation. • Commercial Management Systems • Financial Management Systems • Technical Management Systems • Liner & Agency Management Systems • Disbursement Management Services

Contact information: email: – ShipNet Norway Oslo Phone: +47 21 01 92 00 ShipNet UK Phone: +44 1375 484928 – ShipNet USA Norwalk Phone: +1 212 537 9298 ShipNet Singapore Singapore Phone: +65 6221 1877 – ShipNet Japan Tokyo Phone: +81 (0)3 5442 6121 ShipNet Hellas Piraeus Greece Phone: +30 210 4146 602 – ShipNet Brazil Phone: +55 21 2518 5756 Improving Business Processes

Shipmanagement, crewing and education update China tightens oil response regs

entering into a Chinese port. A list of approved OSROs has yet to be published.

Damage (CLC), both of them ratified by China. The UK Club says the Regulation makes no

Shipowners and operators trading in Chinese

Oil tankers’ liability limitation is the same as

reference to direct action against insurers. As

waters face an extensive set of new legal and

the scheme provided in 1992 CLC. Other ships

per PRC Special Maritime Procedure Law, oil

regulatory requirements governing their roles

may limit liability in accordance with the Chinese

pollution damage claims may be brought directly

and responsibilities in oil pollution incidents,

Maritime Code. According to the Regulation,

against the insurers or other persons providing

according to the UK P&I Club’s July Legal

clean-up costs incurred by the Maritime Safety

financial security for owners’ liability. This means


Administration should be compensated in

compulsory liability insurers for oil pollution

China’s Prevention and Control of Marine

priority to other claimants. This may conflict

damage can be sued directly under Chinese law

Pollution from Ships Regulation came into force

with the CLC and the Bunkers Convention,

and the CLC and Bunkers Convention.

on 1 March and dovetails with the Marine

which lays down that all admissible claims are

The UK Club briefing warns that while the

Environment Protection Law of the People’s

to be treated equally and without priority for

Regulation sets up the general framework of

Republic of China, laying down the principles

government claims.

Chinese oil pollution law, “it cannot resolve

and outlining the country’s marine pollution legal

A compulsory insurance regime for all ships

all issues initially. There are difficult long-

system. However, UK Club notes, the detailed

(except those less than 1,000 gt and not

term questions, such as the title to sue, the

requirements under the Regulation have yet to

carrying oil cargoes) will cover claims arising

admissibility of compensation claims, methods

be revealed.

from oil pollution damage. This should provide

of investigation and burden of proof, which

Ships carrying polluting and hazardous

the implementing legislation, which will give

remain to be clarified, either by supplementary

cargoes in bulk and other ships above 10,000

effect to the insurance provisions of the 2001

regulations or rules of judicial practice”.

gt must pre-contract with an approved Chinese

Bunkers Convention and the 1992 International

oil spill response organisation (OSRO) before

Convention on Civil Liability for Oil Pollution

Ships containing hazerdous or polluting goods must pre-contract for clean-up services before entering Chinese waters

theBaltic September 2010


Corporate viewpoint Concateno

Exposed The dangers of benzene to seafarers


ollowing the Deepwater Horizon disaster, one of the largest operations in history is underway as attempts are made to clean up the tens of millions of gallons

of crude oil spilled in the Gulf of Mexico. With

such a large scale operation, which to date has involved some 5,400 response vessels and more than 25,000 people, the risk of exposure to the highly toxic and volatile chemical benzene is a significant threat. Benzene is a flammable liquid which occurs naturally in crude oil and natural gas. Crew on board vessels involved in the clean-up efforts

experience, accredited processes and rapid

of mind for the crew.

may be exposed to dangerous levels if their

BEB technology is being adopted in the Gulf

turnaround times mean that its customers are

working environment is not carefully monitored

of Mexico by Norwegian shipping company,

guaranteed unsurpassed accuracy and integrity.

and controlled.

Eidesvik, which is using Concateno’s sample

The large-scale nature of the Deepwater

Seafarers can ingest benzene by inhalation,

collection kits to ensure that its seafarers are

Horizon disaster means that long-term exposure

but also absorb it through the skin – even

continually monitored for the presence of

to highly toxic chemicals can be expected for

through indirect contact, given its volatile nature.


many as a result. Concateno would urge any

In the short term, exposure to low levels can

As is always the case on board Concateno’s

shipping company working on the clean-up

cause numerous health problems, including

customers’ vessels, the health and welfare of all

operation to consider adopting an effective

tremors, headaches and unconsciousness.

crew members is paramount. During this clean-

benzene testing programme to ensure the safety

Benzene is a significant cause of leukaemia and

up operation, Eidesvik is particularly mindful of

of its crew.

other blood-related illnesses, and exposure to

the health risks of benzene exposure.

high concentrations can cause death.

Aside from an employer’s duty of care to

The Concateno benzene kits provide marine

assess, monitor and manage risks on board, the

Concateno, Europe’s most experienced

companies with a simple method of testing its

shipping industry has witnessed an increase in

chemical, drug and alcohol testing provider with

crew. Urine samples are taken using the vials

the adoption of chemical testing and monitoring

20 years’ experience in the maritime industry,

supplied and bio-packaged ready for dispatch

programmes due to the recent tightening of

has been providing its unique benzene urine test

to Concateno’s laboratories. Analysis takes a

international regulations relating to benzene

kits and exposure analysis for vessels involved in

few hours and customers can have the results

exposure and seafarer welfare.

oil spill clean-up operations.

faxed or e-mailed back to them within two days.

For further information on our benzene


Since Concateno’s Maritime division added

exposure service, or to attend an upcoming

Biomonitoring (BEB) measures S-PMA (S-phenyl

a low-cost, sensitive benzene test to its range

seminar on benzene biomonitoring, please



of drug and alcohol services, the kits have been

contact us.

produced when benzene is absorbed into the

quickly taken up by shipping companies across

body. The procedure allows rapid screening

the world, including the Norwegian shipping

of at-risk individuals as required, which helps

company, Seatrans. Many vessels keep a stock

to identify and minimise potential exposure to

of the test on board, ready for instances such

hazardous substances, therefore protecting the

as the current operation in the Gulf of Mexico.

health of the seafaring crew.

The test provides a simple, fast and cost-


effective means of determining exposure to this

Harbour Quay

hazardous compound.

100 Preston’s Road

Concateno’s acid),

Benzene a


BEB uses state-of-the-art urine analysis to rapidly identify exposure and trends. The benefit of using a urine sample is that it is easy to collect

Concateno’s network of staff across all

on board, and can determine all possibilities of

the major shipping routes and international

exposure, either through inhalation or contact


with the skin. Such monitoring can help

organisations can benefit from the widest range

Tel: +44(0)20 7712 8000

determine the effectiveness of an organisation’s

of efficient, professional and responsive testing


health and safety procedures and provide peace

programmes on the market. Concateno’s





London E14 9PH UK


theBaltic September 2010

When it matters most

Behind every test is a life Protecting the safety and wellbeing of seafarers and maritime workers is critical. Every crew member is responsible for ensuring that accidents at sea do not happen. Today’s maritime operators face some of their toughest challenges yet, including new international regulations for safeguarding health and welfare. With a worldwide client base, Concateno has more than 20 years’ experience providing the maritime industry with drug and alcohol testing programmes and hazardous chemical exposure monitoring.

Concateno Maritime Services •

Drug and alcohol testing

International sample collection service: •

Professionally trained network of officers

On board testing

24/7 collections

Legally defensible chain of custody procedures

Self collection service for post incident testing

Programme management, support and advice

Benzene exposure biomonitoring

Gulf Oil Spill: benzene exposure risks monitored by Concateno Health fears addressed amid clean-up operations Concateno has collected the first samples of its benzene exposure kits from vessels involved in the Deepwater Horizon oil spill clean-up operation. This procedure provides rapid screening to identify and minimise potential risk of exposure for seafaring crew.

Tel: +44 (0)20 7712 8000 Email:

Concateno Harbour Quay, 100 Preston’s Road, London, E14 9PH, UK

CGP7433 Ed.002

To find out more about our benzene exposure biomonitoring service for your company please contact us.



• Simple and reliable filtration and UV treatment • Compact, modular, robust design

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• Low pressure drop • Low operating costs • Fully automatic • No chemicals

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Green shipping ECA realities start to hit home

3.50%, from the current 4.50%, on 1 January

The company says reports that it plans to

The shipping and bunkering industries are now

2012 and then in phases to 0.5% from 1 January

“drop its Canada/New England itinerary after

coming to terms with the reality of a 1% sulphur

2020. The 0.5% limit is subject to a feasibility

August 2012” are premature and that nothing

limit in the North Sea and Baltic Emission Control

review to be completed no later than 2018.

definite has yet been decided about schedules

Areas (ECAs), and also with the inevitability of

Within the ECAs the cap will be reduced to

after April 2012. However, it reportedly estimates

a similar, strictly enforced regime around North

0.10% from 1 January 2015.

that using distillates to meet the 1.5% cap would

America in two years’ time. The latest reduction in the sulphur limits allowed by the revised Annex VI (Regulations

The 1% cap does not appear to have caused too many problems so far, and sufficient supplies appear to be available.

cost it an extra $16,340 a day. One major cruise operator has opted to test out a system that promises to both meet current

for the Prevention of Air Pollution from Ships) of

The scheduled 2012 introduction of the

sulphur oxides (SOx) and nitrogen oxides (NOx)

the International Convention for the Prevention

North American ECA has, however, prompted

limits and also dramatically cut emissions of the

of Pollution from Ships (MARPOL convention)

cruiseship company Fred. Olsen Cruise Lines

greenhouse gas carbon dioxide.

entered into force on 1 July 2010.

to look very carefully at whether to include calls

Royal Caribbean Cruises is to install a pilot

The 1% cap is part of a progressive reduction

in North America once the North American

test plant of Singapore-based Ecospec’s CSNOx

of SOx emissions which will also see the global

Emission Control Area (ECA) comes into force

system on Royal Caribbean International’s

sulphur cap outside the ECAs reduced initially to

in August 2012.

Independence of the Seas. “Every day, we

The proposed North American ECA

theBaltic September 2010


Environment are actively researching methodologies and

it is expected to shortly be type approved

ahead to the challenge of rigorously analysing

technologies that will reduce our emissions of

by ABS as a SO² and NOx scrubber. The US classification society has also verified tests

these classes of problems and finding solutions

not only SOx and NOx, but also CO² as part of our comprehensive strategy to reduce our

that are agreeable to the major stakeholders.”

environmental impact,” said Jamie Sweeting,

showing significant removal rates of CO². The willingness of two major North American

and chairman of Lloyd’s Register, said: “The

global chief environmental officer and vice

operators to test the system will be widely seen

LRET is extending its support throughout the

president of environmental stewardship for

as a vote of confidence for Ecospec.

world in a number of important areas. We want

David Moorhouse, LRET chair of trustees

Royal Caribbean Cruises. He added: “We are

to encourage the study and development of

optimistic that the CSNOx system will help us to

science, engineering and technology to help

meet our goal.”

LR to fund emissions research

solve the many challenges the world faces, such



as climate change and the huge increase in

tested on the White Sea, a Tanker Pacific

foundation, The Lloyd’s Register Educational

energy demand. Our work in Greece is part of

panamax vessel, in 2009. The results of this

Trust (LRET), is to fund a research programme

this effort for the wider public benefit.”

test, published by Ecospec in February 2010,

into shipping emissions at the National Technical

revealed a 99% reduction in SOx emissions,

University of Athens (NTUA) over the next five

a 66% drop in NOx, and a 77% drop in

years. The commitment will be worth over $1.

CO². Additionally, Ecospec says, wash water

5 million.

The CSNOx technology was installed and



World Ocean Council looks beyond shipping

test results surpassed the IMO’s exhaust gas

The initiative is intended to look at the totality

Maintaining a clean ocean environment, or

cleaning discharge criteria. The Royal Caribbean

of emissions from shipping in a holistic manner,

failing to do so is often seen as exclusively

pilot test is expected to be complete by spring

to address design, construction and operational

the responsibility of the shipping and offshore

next year.

aspects to provide insight into potential solutions.

industries. Looking at the wider view, over 150


NTUA’s Professor Harilaos Psaraftis said:

attendees from a wide range of ocean industries

operator, Canada Steamship Lines (CSL), has

“I am really happy to be associated with the

– including shipping, oil and gas, fisheries,

signed a letter of intent with Ecospec for both

Centre of Excellence and look forward to the

aquaculture, mining and offshore renewable

parties to work together to develop and install

next five years. The issues we shall be looking at

energy – participated in the World Ocean

CSNOx technology within the CSL fleet.

are at the forefront of knowledge development

Council’s inaugural Sustainable Ocean Summit

While there has been a large degree of

for sustainability in maritime transport. Such

(SOS) in June. With the theme of “Reducing

industry scepticism about the CSNOx system,

knowledge is multi-disciplinary and I can only look

Risk, Increasing Sustainability: Solutions through




Carbon emissions are of increasing concern


theBaltic September 2010 Aalborg Industries A/S Gasvaerksvej 24 PO Box 844 9100 Aalborg Denmark E-mail: Tel.: +45 99 30 40 00 l






Environment Collaboration”, the SOS covered a range of

together to consider the ocean not just as an

rapidly growing organisation. Membership is

ocean stewardship issues, including marine

industrial platform but as an ecosystem that we

open to ocean industries who demonstrate a

spatial planning, the Arctic, biodiversity, marine

are all a part of”.

commitment to collaboration and leadership

In recognition of the International Year

in addressing ocean sustainability challenges.

Never has it been clearer that the single

of the Seafarer, a special session of the

The growing membership currently includes

most important factor determining the health

summit highlighted the need for the ocean

ExxonMobil, Rio Tinto, Transocean, Det Norske

of the ocean is the way business is done

industries to focus greater attention on safety

Veritas, Golder Associates, Torm A/S, ICS, Blank

in the marine environment, and that industry

and environmental education for maritime

Rome, and Columbia University’s Center for

leadership in ocean protection is critical, forum

professionals. Peter Hinchliffe, marine director

Energy, Marine Transportation and Public Policy.

organisers claimed. “Sustainable oceans are of

for the International Chamber of Shipping, and

“Given the importance of the world’s

crucial importance to the private sector and to

others emphasised the respect seafarers have for

oceans to the global environment and the

society as a whole,” said Richard Pruitt, director

the marine environment and the opportunities for

global economy, the World Ocean Council will

of environmental programs, Royal Caribbean

harnessing this to improve ocean stewardship.

serve a critical function in bringing together

debris, and sound in the marine environment.

Cruises Ltd. “The issues covered at the SOS

“The Sustainable Ocean Summit represents

industry leaders in ocean stewardship,” said

provided the foundation for global collaboration

an important catalyst for industry participation

Rodger Melton, Chief Environmental Scientist for

and the future work of the World Ocean Council.”

in the growing global commitment to ocean

ExxonMobil. “We look forward to being a part of

The SOS included the first international

sustainability,” said Karen Hansen, principal,

this collaborative alliance.”

industry seminar on marine spatial planning.

Beveridge & Diamond P.C.

“It is the responsibility of all the users of

Participants from around the world learned

“The businesses involved in the event had

the world’s oceans to ensure that we work

about the growing efforts to address multiple

an unprecedented opportunity to share ideas

towards leaving our seas pristine and flourishing

uses of the ocean through this approach, and

and aspirations on business involvement in the

for the many generations yet to come,” said

encouraged the World Ocean Council to work

processes and decisions on balancing society’s

Claus Jensen, executive vice president of Torm

with ocean industries to better understand and

interests and needs for use of ocean resources,

AS. “TORM AS’ decision to join and support

engage in marine spatial planning.

globally and locally.”

the creation of the World Ocean Council as a


Founding Members of the World Ocean

Associates, said that the conference “for the first

Council convened at the conclusion of the

time brought a wide variety of business interests

SOS to form a Steering Committee for the





theBaltic September 2010

Founding Member is an important step towards uniting all industry leaders.”


Oxford Analytica

BP spill changes global offshore outlook Oxford Analytica looks at the broader consequences of BP’s Deepwater Horizon explosion and oil spill for the offshore industry


vents in the Gulf of Mexico and Washington are being closely watched around the world. The impact of the spill, and of the regulations that are

being introduced as a result, will be felt in a number of other countries.

Challenges for Brazil If there is one country set to test the technological frontier of deepwater drilling, it is Brazil. Pre-salt reserves are found at a water depth of 5-7,000 metres, under a 2,000-metre layer of salt, and 300 kilometres from the coastline. Although Brazil stands to benefit from the unexpected availability of deepwater rigs and related equipment following the Deepwater Horizon explosion, and an influx of companies with cash on hand looking for prospects, the disaster is likely to create more challenges than benefits. The disaster took place a few weeks before the Brazilian Senate approved legislation allowing the government to relinquish five billion Photo credit: NASA

barrels in exchange for stock in state-controlled oil company, Petrobras. In parallel, Petrobras planned to conduct a mega capitalisation to enable it to implement its 2010-14 business plan, demanding upwards of $200 billion. The capitalisation, planned for July, was recently postponed until September, because legislation required that the National Petroleum Agency


Deepwater Horizon will have far-reaching effects on the offshore industry

theBaltic September 2010

Oxford Analytica (ANP) conduct an independent evaluation of

Global effects

That means that for deep-water exploration

reserves’ value. The appraisal, by a recognised

The accident in the Gulf of Mexico will revitalise

a relief well needs to be drilled parallel to the

expert international consultancy contracted by

environmentalists’ resolve to fight projects

exploration well. A number of companies argued

the ANP, is expected by late August.

perceived to pose risk, and governments have

that this is an impossible proposition as deep-

taken note:

water exploration wells in the Beaufort Sea take

Although this makes Petrobras’s financial


two or three years to drill. Ironically, they also

increases transparency on the value of reserves

expressed concern about the financial health

claimed that new technology had made drilling

the government ceded, and allows time for

of BP, whose TNK-BP joint venture is the

“so safe” that relief wells were no longer needed.

Petrobras, the government and ANP to ease

third-largest oil company in Russia; Russia’s

The companies insisted that relief wells were

investor concerns.

legislators have begun debating updated

rarely the right tool in an emergency.






Petrobras has a state-of-the-art safety,

• Russian



environmental laws to deal with oil spills.

Although drilling a relief well is acknowledged

environment and health programme that includes

• Bulgarian Prime Minister Boyko Borissov is

to increase blowout risks, this seems the only

ten 24-hour marine environment centres. It

considering pulling out of a regional pipeline

way to deal with a remote out-of-control well.

keeps three vessels on call permanently to deal

project over concerns that the route passes

Winter conditions – the norm for most of the

with possible emergencies, and has invested

through protected areas.

year – limit ability to move equipment, which might result in oil spewing from a well for months

heavily to train its workforce in safety and

• Residents of Fernie, in British Columbia,

environmental preservation. However, the spill

Canada are angry at BP’s start of a coal-bed

contention technologies it employs are the same

gas project the government approved over

Since the Deepwater Horizon explosions,

as counterparts in the Gulf of Mexico; like its

broad-based opposition. While the project

the NEB halted the review and is waiting for

peers, Petrobras will have to invest heavily in

would likely have encountered opposition

reports on the causes before ruling on the relief

development of new contention technologies

regardless, the fact that BP was awarded it

well requirement. However, exploration in the

and methods, in addition to development and

made the protest national news.

Canadian Arctic is planned for 2014.

testing of an improved blow out preventer (BOP).

Although the United Kingdom already has

Operating costs will escalate to unknown levels.

stringent offshore regulations, adopted after

reviewing offshore regulations:

the 1988 explosion of the Piper Alpha natural

• The Canada-Nova Scotia Offshore Petroleum

gas platform, the Deepwater Horizon accident

Board extended the moratorium on oil and

Market valuation to fall?

has led to increased vigilance. The Department

gas exploration on the Georges Bank to the

It is unclear whether companies with heavy

of Energy and Climate Change (DECC) will

concentration of deepwater assets – other than

recruit additional inspectors and double annual

in the Gulf of Mexico – will also see market

environmental inspections of drilling rigs, and is

Petroleum Board launched a review of

valuations adjusted downwards as a result

reviewing indemnity and insurance requirements

offshore safety practices, but did not halt

of an increase in risk and other premiums.

for operating in the UK Continental Shelf.


Of particular concern is potential for a sharp

In addition, a new group of regulators and

Chevron is drilling a 2,600 metre deepwater

increase in insurance premiums. Early reports

oil companies – the Oil Spill Prevention and

well in the Orphan basin, off the coast of

indicate a 15-25% rise for rigs operating in

Response Advisory Group (OSPRAG) – has

Newfoundland. Although Chevron executives

shallow waters, and up to 50% for deepwater

been established to examine UK strengths and

sought to reassure a Senate committee that the

rigs. Significantly, India’s Oil and Natural Gas

weaknesses, responding to a Gulf-like incident.

project can be done safely without risking a major

if not years.






end of 2015. • The



Robust regulation is also in place in Norway.

spill, worries about BOP shortcomings have led

Nonetheless, the government summoned a

the company to develop a new device named

The experience of Anadarko and Mitsui as

dozen companies to explain additional security

“Alternative Well Kill System”. Its objective is

BP’s minority partners in the Macondo may

measures – if any – taken following the Macondo

to cap the well in one operation instead of

also affect other companies’ appetite to hold

disaster. Until more information on causes

three steps the current BOP model uses. New

minority stakes in deepwater projects. A high

emerges, Norway has suspended awarding

technology is still being tested.

or undefined environmental liability cap in Brazil,

deepwater drilling licenses in new areas. The

The Deepwater Horizon accident is still

combined with partnership conditions imposed

accident bolstered arguments of those wanting

playing out and, two months later, the extent of

by new pre-salt legislation – where Petrobras is

to protect against oil and gas development in

damage is still uncertain. However, political and

the sole operator and controls project operations

the Lofoten Islands, where 1.3 billion barrels

financial fallout is widespread, and the disaster

together with the newly created Petrosal – would

are estimated to exist. Norway will also have to

will represent a watershed in the history of the

make it challenging to secure partners willing

decide on resource exploration in the Barents

offshore oil industry.

(and/or able) to invest in ultra deepwater.

Sea and Arctic Ocean.

Corporation reportedly paid 88% more than last year to insure onshore operations.

A robust offshore sector requires responsible corporate behaviour combined with an equally responsible and firm regulator. Although the

Arctic concerns

fact that the Brazilian government is Petrobras’s

The National Energy Board (NEB) has regulatory

majority shareholder means stewardship of

oversight over drilling in the Canadian Arctic.

Brazil’s environment is in the company’s and

In April, when the Macondo well exploded, the

government’s interest, asymmetry between the

NEB was conducting hearings to review safety

Report by Oxford Analytica

ANP and Petrobras is a weakness that must be



The NEB rule for the Arctic requires a mandatory same-season relief well capacity.

theBaltic September 2010

© 2010 Oxford Analytica E-mail:


Corporate viewpoint LCH.Clearnet Ltd

Controlling Container Risk


n 28 June 2010, LCH.Clearnet

a significant milestone in the development

launched its clearing service for

of this market.

with the general public’s perception of shipping. CFSAs offer the same hedging principles

over-the-counter (OTC) container

Throughout the last decade, most of the

as those traded for the dry bulk and tanker

freight swap agreements (CFSAs).

discussions relating to container derivatives

markets. The CFSAs will be cash settled

As the first clearing house to enter this growing

concerned the creation of an index for

on a monthly basis against the Shanghai

and increasingly important market, its service

timecharter period rates, a sector that primarily

Containerised Freight Index (SCFI), which is

will increase liquidity, bringing new participants

interested brokers. Now, however, there is

an established industry index published by the

into the market, and manage risk against vola-

increasing client demand from end users, retail

Shanghai Shipping Exchange (SSE). The index

tile price movements. The leading provider of

customers, logistics providers, and freight

incorporates the input of ship-owners, carriers,

freight clearing services, LCH.Clearnet has over

forwarders, due to the increasing volatility in

and non-carriers. The SSE fulfils a similar role

five years of experience in successfully clear-

prices. Over a period of four months (Oct 2009-

to that of the Baltic Exchange for the FFAs,

ing forward freight agreement (FFA) deriva-

Feb 2010) the cost of shipping a container from

gathering and publishing route assessment

tives. This latest pioneering step to introduce

Shanghai to Europe rose over 179%, leaving

information using a panel of 15 carriers and 15

a container clearing service constitutes a sig-

end users and shippers unable to accurately

service providers. Initially, the contracts cleared

nificant development within the industry, and

plan for forward pricing. Hedging their physical

by LCH.Clearnet will be based on the most liquid

is likely to accelerate the trading of box freight

deals has become a necessity. In addition,

routes out of Shanghai; to the Mediterranean,

derivatives within the multibillion dollar container

volatile prices attract speculators to the market,

North West Europe, the US East Coast and

market. The first cleared trades were conclud-

further adding liquidity. Furthermore, for retail

the US West Coast. These contracts cover

ed by Clarkson Securities (CSL) and Freight

customers the concept of containers is easier to

around 25 million boxes per annum, with an

Investor Services (FIS) through LCH.Clearnet,

grasp than dry bulk markets, and is more in line

estimated value in 2010 of more than $40 billion, representing around 20% of the total global container market.

Contracts Cleared • LCH.Clearnet has initially launched clearing for the four most active routes: • Shanghai to North West Europe • Shanghai to Med • Shanghai to US East Coast • Shanghai to US West Coast • The European contracts are traded in multiples of TEU (twenty foot boxes) and the US contracts are traded as FEU (forty foot boxes) • Margins at launch have been set at approximately 10% to 15% of contract value • Clearing Fees are $3 per lot (one box) Since the range of counterparties within the container industry is so diverse, there is great potential for market growth and the product will be developed to cater for a variety of different client needs. It is predicted that this reduction of credit risk through clearing could result in 10% of the underlying physical market to be composed of container derivatives within the next five years. Clearing through LCH.Clearnet will enable market participants to benefit from the stability and implicit security of the LCH.Clearnet default fund and its highly regarded risk processes.


theBaltic September 2010


Building the Asian market Neville Smith looks at the development of the freight derivative market in Asia, ahead of the FFABA annual forum in Shanghai


he Freight Forward Agreement Brokers’ Association is no stranger to Asia, having held its annual forum in Hong Kong and Beijing in recent years. This year’s

event in Shanghai takes place against a different but equally challenging market backdrop. With the underlying bulk market under pressure from vessel oversupply on the one hand and falling commodity demand on the other, FFA traders and brokers are keen to understand how the local scene will develop in the short and long term. Up till now, the answer to both scenarios has been “slowly” for well-understood reasons. Trading of FFAs in Asia has grown in importance as the physical market has tilted eastwards. But trading volume has remained centred around London time.

What drives development? The location of the financial institutions which dominate trading has been a contributing factor, with the banks that are among the London’s most active members resolutely anchored in GMT. Chinese players meanwhile have had to work through Singapore and Hong Kong subsidiaries to meet mainland regulatory requirements. The growth of FFAs in Asia mirrors the development of the market itself. Derivatives spent years as a Cinderella until conditions made the need to hedge freight risk unavoidable. With the breaking of benchmark pricing for iron ore, conditions exist to drive a similar uptake to trading. Asia also has dedicated clearing, available from Asian open to New York close, with straight through processing. Traders clearing through

Shanghai – the next freight derivatives hotspot?

theBaltic September 2010


FFA spread with few people taking interest. It tends

SGX during Asian time can see the status of

to wait for 7:30 London time when the European

their trade immediately, helping to increase confidence in counterparty relationships. Despite the recent slowdown in demand

traders walk in through door.”

“You could have a

But he says the weighting to London is not

wide bid/offer

a distortion of the market. “Asia does not lack

for physical iron ore and an accompanying

a market-maker. There is no market-

price fall, the potential of the iron ore

maker in Europe either. I think that

swaps market in tandem with paper freight is huge and the need

more people in the market asking


brokers for prices is what actually kicks it off.”

Mudit Paliwal, executive vice


president of Noble Chartering says




a handful of large players and more

the end of the iron ore benchmark

are needed, but the increased number of

could be the game changer that will

brokers based locally is also seen as

bring more Chinese companies into

important in increasing the volume of

the picture.

trades in coming years.

“The way iron ore has progressed,


annual pricing broke down, now




reliance on London as the FFA

we have quarterly pricing and the feeling is that this might break down

market’s centre of gravity no longer

with sales going monthly and priced

matters. After all, splitting the trading

spot,” he suggests. Even with bilateral

between two timezones might result

physical agreements between the mills

in dilution of liquidity rather than a bigger pie – at least as long as earnings

and the miners, the iron ore swaps

remain fragile.

market will be the only means for price risk management and control of exposure.

Bringing the market to China Do time zones matter?

Xu Guibin, executive vice chairman of the China Shipowners’ Association, says

But he notes that despite the growth of Asian traders and locally-based players,

The market is still centered on European

trading still tends to wait for London.

Timezones – for now

that, while the future looks positive, there are issues that need addressing before

but we can help you manage it

We cannot predict the future

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Iron ore swaps broking Daily Reports London and Hong Kong desks SGX cleared screen Authorised and regulated by The Financial Services Authority

SSY Futures London, Lloyds Chambers, 1 Portsoken Street, London E1 8PH. Dry: +44(0)20 7265 1871 Wet: +44 (0)20 7977 7501 SSY Futures Hong Kong: (+852) 2521 1641 ASSOCIATE OFFICES: • Beijing • Bermuda • Hamburg • Jakarta • Monaco • Mumbai • Naples • New York • Oslo • Shanghai • Sydney • Vancouver • Zug

Adding value to the freight futures market theBaltic September 2010


Corporate viewpoint AXS Marine SA

AXS Marine Work faster and more efficiently with information at your fingertips


ime is definitely money in today’s fast






moving shipping industry and being able

AXSTracker facilitates the updating of incoming

AXSMarine’s powerful data sorting, processing

to gather, assimilate and act on the right

tonnage e-mails without having to read them

and sharing technologies transform Alphaliner’s

information at the right time can be cru-

all. Also available in an MS Outlook plug-in is a

rich databases into true productivity tools.

cial to ensuring success over failure, as well as a

facility where the original e-mail can be saved and

Alphaliner provides its subscribers with a unique

healthy profit margin.

retrieved from the vessel database. In this way, a

picture of the liner industry, unparalleled in its

broker can transform thousands of positions into


That is where AXSMarine comes in. Its services are designed to take advantage of ‘Web

his own personal, searchable file.


2.0’, the second generation of internet-based

AXSDry Club members can now view up-to-

communities which aim to facilitate collaboration

date chartering positions as part of their service

Users of the market leading AXSTanker suite can

and information sharing between users.

for a small additional monthly subscription,

now look forward to even further improvements

while brokers are able to benefit from additional

in the service offered only to competitive tanker

interactive, internet-based decision-making tools



brokers, following the launch of Version 3.0

and databases for shipping industry professionals.

chartering position information to the AXS

of the internet-based software. Not only will it

AXSMarine’s online tools are secure, fast and


have an upgraded interface and include a more

AXSMarine produces a complete set of




easy to use, and the databases they source are

user-friendly look and feel, but improvements

always up-to-date. Because they are internet-


to the functionality of the system will also serve

based, they are available from any computer,

Many shipping organisations have already

to enhance database interrogation and data

anywhere; there is nothing to download or install.

migrated to, an MS Outlook exchange messaging


All companies’ users’ privacy is guaranteed

platform. About 95% of required functionality,

Brokers looking to search the database can

at all times. Permanent availability is ensured

which has only been available in industry-specific

do so now based on vessel draft and beam

through rigorous redundancy and back-up

message system offerings, is configurable off-

restrictions as opposed to just using Panamax

routines. With one click to connect to AXSMarine,

the-shelf within MS Outlook. AXSMarine is now

or Suezmax vessel size search strings. There is a

users access a complete catalogue of online

providing the industry with a free distance table

new attach file capability on the system as well as

analytical programmes. These programmes can

from its public website.

AIS data sourced from Vesseltracker, map, and

be tailored to the individual user’s requirements.

history access capability. Equally as important,


Q88 files can now be uploaded via the AXS

collecting raw data from reputable sources.

AXSS&P is the first AXSMarine product to

Support system (e-mail to support@axsmarine.

AXSMarine subscribers also add their own

maintain the common platform theme, but this

com) and can be exported in PDF, text or Word

information – always privately, and sometimes

time, without providing a sharing capability

formats. New filter tools have been installed at the

to share with other members. AXSMarine’s

between different clients. Encompassing all of

new log-in page (widgets) that will enable users

purpose-designed algorithms transform this raw

their standard search and database features and

to retrieve data in any pre-defined way, such as in

data into databases of searchable and sortable

many more, AXSS&P allows users to override

tabular, graph or trend format.


technical specifications, add their own vessels,

AXSMarine has teams of product specialists

and incorporate their own proposal templates,

For more information, please contact:


with full integration to MS Outlook allowing

AXSMarine Headquarters

AXSDry is a complete set of online tools and

users to add e-mails and attachments directly to

80 rue Taitbout, 75009 Paris FRANCE

databases designed for the dry bulk shipping

vessels in the database. Conversely users may

Tel: +33 1 53 43 05 70

industry. It enables its users to have a complete

retrieve e-mails and attachments directly from the

AXSMarine Pte Ltd

view of the dry bulk shipping market without

AXSS&P database – ultimately reducing the need

10A Trengganu Street, Singapore 058464

having to sort through thousands of e-mails, or

to constantly search e-mail archives.

Tel: +65 6225 3115 AXSMarine Limited (London)

manage multiple programmes on their computer desktops. AXSDry offers subscribers a wide


60 Cannon Street, London EC4N 6NP

variety of features, including Vessel Manager,

Developed together with two high profile

Tel: +44 207 002 1089

Cargo Manager, Voyage Calculator, FFA Manager,

shipbrokers, AXSOffshore has taken AXSMarine

Fixtures, Distance Calculator, Freight Matrices,

further into the realms of a common platform


Port Library, and MOPS (Marine Operations

which is database independent.

MSN Messenger:

Performance System).

Yahoo! Messenger ID: axstanker

theBaltic September 2010


Keynote and Industry addresses

VIsIonarIes In shIppIng Forum

Niels-Henrik Lindegaard Group Vice President, A.P. Moller Maersk marIne Fuel BusIness heads

Carlos Barbosa General Manager, Petrobras Fuel standard and emIssIons polIcy experts


FFA China in particular can consider itself a major player in the paper market. “Although it has been 20 years since FFA products entered the market and having achieved a lot, it is still a new thing in general for the China market. Far from enough [has been done] for Chinese players to well understand it,” he told The Baltic. Nonetheless, Mr Xu says China takes “an open stance to financial derivatives’ and as such he expects FFAs to have good prospects with Chinese owners. Standing in the way of growth are two key issues, education and regulation. “It is fair to say that the front-line practitioners have a fair understanding of the products, but at the management level people are not well aware of the functions and potential risks of the products,” he adds. Mr Xu characterises the risk management of the derivatives market as “at the start-up stage”. Though not unique to the FFA market, the applicable regulatory system is immature.

Risk management in the derivatives market is still at the start-up stage

“FX and fuel derivatives have had similar problems. In the last couple of years, there have

same issues are at the heart of moves by the

substantially to trading volumes, so there is little

been cases of huge losses because of improper

US CFTC and European Union to regulate Over-

prospect of learning by doing.

use of financial derivatives. As a result, the

The-Counter derivatives in their jurisdictions. So

regulatory bodies have tightened the regulation

perhaps China is not so different after all. Mr Xu’s remedies are relatively simple and

and this has been a major restriction for

probably familiar to veterans too.

Chinese organisations, especially state-owned

Second, the FFA market should take more responsibility in terms of regulatory oversight. “By decreasing the default risk, increasing transparency, and avoiding possible market

Both Chinese companies and regulatory

manipulation, such a market will be more easily

bodies need a much better understanding of

accepted by the China market players,” he

Whether the trading is improper, unlucky or

freight derivative products. This education needs


badly managed is open to question, but the

to happen before more companies will add

enterprises, in the trading of financial derivative products, including FFAs.”

Container swaps enter the stage

Building confidence

If Iron Ore Swaps are the FFA market’s little brother, then Container Freight Swap Agreements

But it is not all one-way traffic. Chinese

(CFSA) are the newborn of the family. Like any new mouth to feed, they come with their own challenges and potential. The container market, having long resisted attempts to commoditise box slots and dabbled in vessel charter contracts, seems to have accepted that CFSAs are here to stay. The question for their proud parents is when this new product will stand on its own two feet. Alex Gray of Clarkson Securities says CFSAs are “moving along nicely”, with interest from the retailer and freight forwarder community, as well as a couple of shipping lines. The first meeting of the CFSA Association takes place in Shanghai alongside the FFABA Forum and Mr Gray says a broad cross-section of Asian and European lines are keen to know more. “It’s slow and steady. We don’t delude ourselves that trading in multiples of 10 or 20 is a solution. But we are starting to get lot sizes in 50 and 100 boxes, which is a serious step up from where we have been.” Once bigger clips of a thousand or more boxes start going through, he says, the broker will feel it is “delivering something useful to people”. Key to that is clearing, and with LCH.Clearnet and SGX offering the service, there is room to take the next step, according to John Banaszkiewicz of FIS, the other major broker

organisations, he says, have a responsibility to improve their overall risk management systems. FFAs should be used to reduce risks rather than increase them by excessive speculation. So what of the short term? With freight and commodities tied ever more closely together, how does Mr Paliwal see the Asian market getting a kick-start that builds back volumes and confidence? His answer might put him at odds with the regulators but not with the seasoned hands who saw the market through its decade of development. While the challenges of default risk have driven FFAs to the ‘extreme’ of a 95% cleared market, he says a strategy that combines cleared and OTC business can make trading more cost effective. “I would say in every market OTC trading has its own place. My feeling is that traders

offering the swap. “Compared to the bulk markets, containers are easy to grasp and far more in line with the general public’s perceptions of shipping. With the launch of container swaps, my wife can finally understand what I’m on about when I bore her over dinner.”

theBaltic September 2010

might do more long-dated trades like Cal 13 or Cal 14 if they were allowed to do them OTC, so they wouldn’t have the same pressure of margin calls.”


Corporate viewpoint CME Group

CME expands freight offering G

lobal derivatives giant CME Group

that have in many ways

has fixed its sights firmly on clearing

built today’s futures indus-

the freight markets and has developed a strategy to build a significant

presence in the sector by offering a world-class alternative to LCH Clearnet, NOS and SGX. The Baltic meets CME Group’s director of energy, Justin Bozzino. Freight derivatives may be big news in the shipping markets, but in the wider derivatives market it has remained a niche business, inaccessible to many agricultural and energy market traders. However, the entry of CME Group on to the scene has the potential to

“We are here for the long term”

try. These include the standardisation of futures contracts, the formation of the clearing process, the creation of financial futures, cash-settlement and electronic trading. In addition, CME’s NYMEX division



Justin Bozzino

clearing of OTC contracts in 2002 with the launch of ClearPort. Today there are over 900 contracts listed for clearing

shake-up the sector, bringing in new players and

via CME ClearPort, totalling over 39 million lots

reducing the cost of trading for all.

of Open Interest.

“For too long, seaborne freight has been a

Benefits of CME offering

With so much freight derivative trading

secondary thought for many traders outside

According to Justin Bozzino, one of CME

activity focused on London, it made sense for

the shipping sector,” says Justin Bozzino, the

Group’s biggest advantages is the ability for

the CME’s European office to head the drive

exchange’s director of energy, EMEA. “Through

companies to offset their margins by combining

into the shipping markets.

CME, FFAs are now available to a wider range of

dry or wet freight trades with other products on

people know that we are here, make them

companies than ever before.”

“We need to let

CME Clearport. Seaborne freight can be offset

feel comfortable with our clearing systems and

Spearheaded by its European team at its

with so many of CME’s existing products and

show that we can offer a cost effective solution

large London office in Cannon Street, CME

in so doing, reduces the amount of margin that

for freight clearing. This is not going to happen

Group announced in May that it would be

needs to be posted when a series of positions

overnight, but we are here for the long-term.

expanding its freight market presence, adding

are held. CME is able to offer 20 different offsets,

Our rates are significantly lower than any of our

to its tanker derivatives market clearing

including dry freight and bunker fuel, wet freight

competitors and we are here to add value to the

services, which it has offered since 2005, by

and refined products, and in the near future

post trade process,” says Justin Bozzino. He

providing clearing for the dry FFA market. With

hopes to also offer more offsets, dependent on

notes that as the FFA market has seen a drop

around $9bn in guaranteed funds, over 3,000

customer feedback. Offsetting trades means

in overall volumes in the past two years, many

companies and over 15,000 individual market

that more capital is freed up and reduces the

customers are now more focused on the cost of

participants currently using CME Group’s OTC

cost of trading.

trading in a way which did not happen during the bull market years.

clearing services, the announcement that it

“Not all clearing houses are equal,” says

would offer additional contracts for both the

Justin Bozzino. “We have been around for 130

He adds: “ClearPort gives us the ability

wet and dry FFA markets has the potential to

years, have never had a clearing member default

to grow markets and we have a proven track

greatly increase liquidity by bringing into play

and have a tried and tested model.” Formed

record of doing so across a range of sectors.” A

a whole new set of companies who were not

as a merger between the Chicago Mercantile

company the size of CME Group can clearly play

able to access the niche freight markets. CME

Exchange and Chicago Board of Trade (CBOT)

the long game and understands that markets

has a huge reach into a range of markets,

in 2007, the CME Group subsequently took over

evolve rather than grow overnight. “We are doing

especially companies trading energy, metals and

the New York Mercantile Exchange (NYMEX)

this as much as anything to provide a service to

agricultural products. The company has nine

in 2008, creating the world’s largest and most

our existing client base,” says Justin Bozzino.

offices in the USA, Brazil, Singapore, Japan and

diverse derivatives exchange. CME Group is

“It’s the right thing to do for our customers and

Europe as well as a tie-up with DME in Dubai.

responsible for many of the key developments

we are here for the long term.”


theBaltic September 2010

Corporate viewpoint CME Group Furthermore, CME Group’s dry market services are based on a flexible approach. “Flexibility is key to the dry freight market and we list contracts in both full and quarter-day size to allow for trade splitting and shaping across months. However, the market currently seems comfortable with full day clip sizes.” On the tanker side, CME lists both $ per ton and Worldscale based forwards for 10 clean and dirty routes. CME Group’s approach is to work with FFA brokers rather than try to cut them out. “We have a post-trade service that offers a transparent process,” says Justin Bozzino. “We work closely with brokers and have created a user friendly system which enables brokers to enter their clients’ trades and provides them with instantaneous confirmation. There are no delays whilst credit checks are carried out and we offer straight through processing directly into customer risk systems, 24-hours a day.” Trade submission usually takes place through the CME ClearPort website, although an API is

Companies do not need to be members of

For more information, please contact:

CME to trade through ClearPort, but there are cost advantages in doing so.

also available for connection by broker screens.

CME Group, Watling House

Submitted trades are checked automatically

Justin Bozzino

33 Cannon Street,

against risk limits and the trade is confirmed or

T: +44 (0)20 7796 7132

London EC4M 5SB

rejected immediately.



theBaltic September 2010


Reaching new heights...

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Since 1916


Ship agencies

Looking beyond the port Ship agencies expand services to provide end-to-end sectoral coverage


espite a year that was as difficult for ports as it was for shipowners, the largest ship agents have been taking the opportunity for expansion, both

geographically and in terms of the services that they offer. The sector is still largely fragmented, with 85% of the market held by local companies. Rather than seeking major consolidation, multinational players are now looking to provide services tailored closely to individual sectors. Inchcape Shipping Services (ISS) continued its course of impressive growth during 2009. It handled a total of 66,700 port calls in 2009, slightly up from the 2008 figure, and had a gross turnover of $2.5 billion. While this represented a fall from the $3 billion equivalent figure in 2008, it clearly shows that the company has retained a strong presence in a difficult market. One factor contributing to Inchcape’s

strong position is its decision two years ago to concentrate on what it calls the evolution from being a ‘partner of choice’ to ‘a strategic partner’, competing on adding value and the level of service offered, rather than just on price point. Like all ship agents, Inchcape has been “under huge pressure to cut prices”, says ceo Claus Hyldager, “but we are not going to be a low cost provider”. He is forthright about the reasons for this strategy: “Choice is increasingly about price. Strategic partnership is about strengthening the relationship between agent and principal or putting more ‘glue’ between us and our partners. Yes, this is about making it harder for them to leave, but it is also about changing what we have to offer. Rather than low cost, we are concentrating on offering ‘fair value’ and scalable outsourcing solutions.” South America is a key market for expansion

theBaltic September 2010


Ship agencies Growth

says Hyldager. ISS has made acquisitions in

Full service provider

Two years ago, Inchcape set out an ambitious

West Africa, and is now one of the only launch

Further expansion of its strategic role came with

expansion plan. This has continued, despite the

operators in Nigeria. The company has also

the acquisition of specialist crew travel provider,

well-publicised financial difficulties of the parent

re-established a fully-owned office in Cape Town,

Global Marine Travel, in May 2010. “We have

company, Dubai World. As one of Dubai World’s

and opened an office in Walvis Bay, Namibia, in

been looking to enter the marine travel business

most profitable subsidiaries, ISS is currently on

May this year. “The opening of the Namibia office

for some time, and see the acquisition of GMT

the market, although market reports suggest

gives ISS an important foothold in the south-

as an ideal way to move into the sector,” said

that one serious offer has been blocked by the

western seaboard of the continent,” said Allan

Jon Corner, executive vice president group

US due to concern about the company’s naval

Vermaark, senior vice president for Africa.

commercial for ISS. “The values and vision of

services sector. In order to boost ISS’ attraction

South America is another area targeted for

GMT fit in very closely with our own and we

to prospective purchasers, credit lines of up

expansion, with the company opening an office

see strong scope for using the ISS network to

to $350 million of staple financing have been

in Trinidad and Tobago in March this year.

build on GMT’s current office footprint. We share

secured with Bank of America Merrill Lynch and

In addition to the expansion of its global

many common customers with GMT and have

Royal Bank of Scotland, according to reports on

presence, ISS continues to expand the range

no doubt that bringing together the services


of services that it offers. The acquisition of Coal

of the travel provider and the agent providing

Export Services International in 2009 opened up

marine husbandry services will lead to a stronger

the opportunity to develop its commodities role.

value proposition and increase the strategic

Geographical expansion

In another move to expand this area, ISS has

partnership value to our customers.”

In line with the expansion plan, ISS is targeting

entered into a joint venture with a log handling

Terry Gidlow, executive vice president group

expansion in Africa, where a fast growing

company in New Zealand. Closer involvement

strategy, said the acquisition was the first of

shipping sector is served by what is still a

with commodities of this kind is part of the

several ISS is planning as part of its 2015

relatively under-developed infrastructure. “It’s

company’s growing value proposition, making

strategy plan.

difficult to make a difference in Antwerp or

it possible to provide an increasingly tailored

Rotterdam, but in Nigeria or Ghana, you can,”

service, the company says.

Agents are providing more specialised services


theBaltic September 2010

“We have the appetite and the capital for consolidation,” Hyldager says. “However,” he

Ship agencies

continues, “there is always a place for the small,

specialist arm, GAC Energy and Marine Services

For ISS, the scheme also feeds into the

local agents. ISS has no desire to push them

(GEMS) in Houston, the establishment of a $35

company’s proposed development into a

out, and in fact can offer them opportunities for

million loan facility to develop oil operations in

strategic partner, by creating a programme that

growth through education and partnerships.”

Kazakhstan, Africa and the Middle East, and

is aligned with principals’ strategies, producing

Nevertheless, he says, there may not be a place

the opening of ship agency operations in Rio

staff with the skills that they will need if work is

for mid-size regional agencies in the future.

de Janeiro. One of the main attractions of Brazil

to be successfully outsourced.

Like other agents, ISS says it has suffered

was its importance in both the shipping and oil

The first step in the process is to determine

from owners not always paying their bills, and

and gas markets, and GAC aims to create a

training needs in each region. Courses are being

has tightened up debt control as a result. Lay-up

network of offices from the Rio base across the

developed in association with established training

services have provided a considerable revenue

country as a whole. “Growth potential in Brazil

providers, including the Institute of Chartered

stream that has compensated for the drop in

is boundless,” said Robert Oisson, general

Shipbrokers, Lloyds Maritime Academy, BIMCO

cargo business. Furthermore, some principals

manager shipping services GAC Brazil. “In the

and others, and will include modules on a wide

are now more ready to save money through

long term, I expect GAC to become a strong

variety of areas, including finance training and

additional outsourcing services. There is also a

player in this market.” GAC Brazil’s managing

management training. The management training

rising number of ‘reluctant owners’, who have

director, Rodrigo de Marco, emphasised the

course, which is expected to start in 2010, will

come into ownership of assets as a result of

wide role that the agency is targeting: “We

provide formal training in the shipping industry

bankruptcy or loan default, but do not have the

operate in a world where clients want more

and the way it operates, as well as management

expertise to operate a ship. These include banks

integrated service packages and the savings


and hedge funds.

that come from those.”

Courses will be delivered through: • E-learning

GAC aims for oil sector


• Classroom

Like ISS, GAC is seeking to provide end-to-

Perhaps the major problem facing large ship

• Virtual classroom

end services which extend well beyond the

agents in the future is the same facing the

• Universities and business management

traditional role of a ship agency. In particular, it

maritime industry as a whole – the increasing

has made a number of moves in recent months

difficulty of finding skilled personnel. Both ISS

to strengthen its services across the energy

and GAC have chosen to tackle this by setting

sector. These include the opening of an energy

up their own training programmes.

theBaltic September 2010



Maritime security

Theory into practice A guide to best practice offers clear and practical advice on avoiding, preventing and coping with pirate attack


s the risk of coming under pirate

a clear outline of major concerns and the most

release of a hijacked vessel and/or following a

attack remains a high profile concern

effective way of addressing them.

period of poor weather when pirates have been

of shipowners and seafarers alike,

The book begins with a broad discussion

unable to operate.” It follows with an outline of

the number of options to reduce that

of common types of pirate attack, including

some of the most useful and simple tactics.

risk is multiplying rapidly. In previous pages,

how, when and why they occur – though this is

Essentially, these are:

The Baltic has looked at some of the technical

constantly evolving – and times at which pirate

• Maintain full sea speed – at present, no

solutions that are available, and an increasing

attacks are most likely. For example, it suggests:

pirate has ever successfully attacked a vessel

number of companies offer training and advice,

“The risk of a piracy attack appears to increase

up to and including the provision of armed

immediately following the

travelling at 18 knots or over. • Take extra precautions where vessels have low freeboard. Ships with a minimum

guards and escort vessels. However, the breadth of choice can be

freeboard of 8 metres have a much

bewildering, particularly for vessels that do

greater chance of avoiding

not regularly transit high-risk waters. Witherby


Seamanship’s Best Management Practices

•  Ensure high security does

to Deter Piracy off the Coast of Somalia and

not mean the crew are trapped

in the Arabian Sea (BMP) may not have

in the vessel in a different kind of emergency.

the most concise of titles, but provides a thorough rundown of basic advice for both

•  Provide suitable crew briefing

managers and seagoing staff that can be a

and drill. BMP offers advice on good

good starting point for decisions on further support. The booklet is backed by a wide


variety of trade organisations, including

from initial planning through to




BIMCO, the ICS, IMB, Intercargo,

defensive measures, manoevres, the

Intertanko, and naval forces operating

employment of outside experts, and

in the Gulf of Aden area, including EU

thorough advice on what to do in the


event of boarding and capture – and recapture – of the ship by the military.

This is the third edition of the booklet within a year and a half,

The focus of the booklet is concise

and it strongly emphasises that that

and practical throughout. Appendices

piracy is an evolving threat. In order

include charts, contact details, legal

to successfully combat piracy, it

definitions and further advice for fishing

is vital to keep up to date with

vessels. In addition to helpful checklists,

changing information, and to

and planning sections for both company

share new information as far as

and master with timetables detailing actions

possible. While it does not aim

to be taken leading up to a transit of high risk

to offer comprehensive advice

areas, it includes a piracy reporting form – one

on a complex and constantly

thing the compilers of the manual hope will

changing situation, BMP gives

never be used.


theBaltic September 2010

Book early and save up to £300

marseq’s 5th Official Piracy Update


An extremely valuable conference …information sharing and highlighting common problems with credible solutions David Fletcher, Quality, Safety and Security Manager, CMA Ships UK Ltd

Masterclasses: 11th October 2010 • Site Visit: 14th October 2010 Conference: 12th – 13th October 2010 • The Strand Palace Hotel, London

Featuring real life scenarios from 4 pirate attacks including: Taipan Attacked 5/4/10 & Pirates Arrested

✔ Revised Piracy Intelligence Based On Latest Activity

St James Park Attacked 28/12/09 Released 13/5/10

✔ Up-to-the-minute Hijack Management Strategies

Asian Glory Attacked 1/1/10 Released 11/6/10

✔ New Cost Effective Preventative Measures

Latest Advice From Industry Experts Including:

Chris Holtby, Chairman, Working Group 1, Contact Group on Piracy off the Coast of Somalia

Gavin Simmonds, Head of International Policy, The Chamber of Shipping

Nigel Carden, Deputy Chairman, Thomas Miller P&I Ltd, Chairman, IGP&I

Roland F Hoeger, Managing Director, Komrowski

Paul Shields, Operations Director, Zodiac Maritime

Chairman: David Cotterell, Director, OCIMF

In-Depth Industry Advice To Ensure Your Security Procedures Are Water Tight Including: ■ Transfer of the latest anti-piracy skills and lessons learnt from previous hijackings ■ Critical updates from Government and Military on the growth of the piracy threat and debate long term solutions to protect commercial shipping ■ The VERY latest Best Management Practise and other industry guidelines revealed ■ Essential procedures to ensure your hijack management strategies are updated

Interactive Masterclasses: 11th October 2010 A)

Addressing The Latest Principles Of Piracy Prevention and Crisis Management Facilitated by Toby Stephens, Partner, Holman Fenwick Willan


A Practical Guide to Effective Anti-Piracy Drills and Training for Your Crew. Facilitated by Jonathan Davies, Instructor, Maersk Training Centre

Site Visit: 14th October 2010 Maritime Security Centre Horn of Africa, EUNAVFOR

For more info: Email: Tel: +44 (0)20 3141 8700 Please quote priority booking code: BAL1

Combating Piracy conferences provide a genuine forum for serious deliberations….much more than just networking. Capt. AK Bahl, Vice President Shipping - Mumbai Branch, British Marine Plc, U.K.


Boularibank Attacked & Escaped 4/09

Hear From International Maritime Experts Including: • Kapila Malawwethanthri, Fleet Superintendant, LNG and DPA, K-Line • Stuart Walker, Operator Coordinator, Exxonmobil • Toby Stephens, Partner, Holman Fenwick Willan • Andrew Latter, CSO Andrew Weir Shipping • Simon Church, Industry Liaison Officer, EUNAVFOR • Chris Chambers, US Navy, Director, Combined Maritime Forces • Stig Jarle Hansen, Norwegian Institute for Urban and Regional Research • Walter P Verstrepen, Partner, Elegis • Jonathan Davies, Instructor, Maersk Training Centre • Steve Paget, Director Above Water Battlespace, Dept. of National Defence - Canada • Rob Andrew, Executive Director, Salama Fikira Group • Bernard Vanheule, Senior (Legal) Officer, Royal Belgian Shipowners’ Association • Doug Stevenson, Director of the Centre for Seafarer’s Rights, Seamen’s Church Institute • Giles Noakes, Chief Maritime Security Officer, BIMCO • Thomas Nintemann, Head of Legal & Insurance Department, Intersee Group • Philip Pascoe, General Counsel, OCIMF • Stephen Askins, Partner, Ince & Co Official Partner:

Maritime security

Ship detained? It’s still on hire The UK High Court rules on off-hire clauses in the event of pirate attack


he UK High Court has confirmed a rul-

that this related to the owner’s failure to supply

ing made by an arbitration panel that a

enough crew or a refusal by a crew to perform

vessel chartered on an NYPE standard

their duties – and not to the negligent act or

charterparty remains on hire throughout

inadvertent performance of their duties, as the charterer had argued.

the time it is captured and held. The Saldanha, a 38,000 dwt Panamax bulk carrier, captured by

Nor did seizure by pirates amount to

pirates in the Gulf of Aden, remained on-hire for

“detention by average accident”. This would

the subsequent period of detention, according

have required some damage to the ship and

to a ruling in the English High Court in June.

an element of fortuity, neither of which was

According to a commentary on the deicision

present. Further, the words “any other cause”

from the UK Defence Club, this was the first

in the NYPE off-hire clause could only refer to

English Court judgment which specifically

some sort of deficiency or detention of the vessel or crew and not to some completely external

addressed the charterparty implications of piracy


and provided guidance on an “issue of great

of officers and/or crew or deficiency of stores,

relevance to owners and charterers alike”.

fire, breakdown or damages to hull, machinery

The judge concluded that if parties wished to

On 22 February 2009, the Saldanha, on a

or equipment, grounding, detention by average

treat seizure by pirates as an off-hire event under

standard New York Produce Exchange charter,

accidents to ship or cargo, dry-docking for the

a time charterparty, there should be specific

was en route from Indonesia to Kope, Slovenia

purpose of examination or painting bottom, or

wording to that effect. He suggested that if the

with a cargo of coal when seized by pirates. She

by any other cause preventing the full working

off-hire clause had been amended to refer to

was taken to a location close to Eyl, Somalia and

of the vessel, the payment of hire shall cease for

“any other cause whatsoever” then this might

released on 25 April 2009. The charterer did not

the time thereby lost.”

have made a difference but this was not certain.

pay hire during the detention, claiming the ship was off-hire since its seizure. The UK Defence Club supported its owner member in his claim against the charterer. A London arbitration tribunal found the ship had remained on-hire throughout its detention.

The charterer argued that the seizure by pirates amounted to a “default and/ or deficiency

The charterer has since been refused leave to appeal to the Court of Appeal.

of men” or “detention by average accident”. He

UK Defence Club manager Daniel Evans

further claimed that the words “any other cause”

commented: “The judgment is a very important

as found in the clause could include an external

one with wide ranging implications for the

event such as the actions of pirates.

shipping industry, as pirate attacks remain

The charterer had argued that the ship was

The charterer appealed the tribunal’s decision

prevalent. Unless there is clear wording to the

off-hire by referring to clause 15 of the NYPE

in the English High Court where Mr Justice

contrary, this ruling means that a ship chartered


Gross found that the appeal failed on all counts.

on unamended NYPE terms will remain on-hire

“… in the event of the loss of time from

So far as default or deficiency of men was

if seized by pirates. It is very much a landmark

default and/or deficiency of men, including strike

concerned, the judge agreed with the tribunal


theBaltic September 2010


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Corporate viewpoint Securewest International

If the worst happens W

hile the taking of hostages in times past might have been regarded as a legitimate strategy of diplomacy, modern atti-

tudes are somewhat different. The widely used technique of the Roman Empire to ensure the loyalty of conquered peoples is today seen as a violation of human rights, a war crime under the 1949 Geneva Convention and condemned by a United Nations resolution. Words such as kidnap, abduction and hostage are often used interchangeably in the media but a trawl through the dictionary reveals that each has a distinct definition. Abduction is to ‘take someone away by force or deception’ and kidnapping involves ‘abducting and holding someone captive, typically to obtain a ransom’. A hostage is ‘a person seized or held in order to induce others to comply with a demand or condition’. However, even such precise definitions cannot fully encompass the context in which

the hostage’s treatment, including some cases

reach. Whether intentional or not, Somali pirates

the variety of kidnap and hostage situations

of murder publicly broadcast. This required a

have achieved the same levels of intense media

occurs and how the authorities respond to

response to meet the challenge of ruthless,

spotlight as far bloodier examples of hostage

them. For example, in some cases the location

politically motivated captors making demands for

taking events of recent years.

where the hostages are kept (stronghold) may

withdrawal of coalition forces and the release of

be known and surrounded by responders, whilst

prisoners – concessions unlikely to be granted.


in others the hostage takers may use a secret

At the current time, it appears that Somali pirates

In kidnap and ransom situations some will often

‘safe-house’. In the maritime context, where a

who seize ships are motivated more by financial

question why you should negotiate with pirates

ship is taken, the stronghold is the vessel and

gain than political ideology and, seemingly,

or hostage takers. However, there are good

the location is known. However, where crew

payment of ransoms have secured safe release

reasons to communicate with them:

members are taken ashore, their location may

of the hostages.

• It is important for information gathering

not then be known with any certainty. Both

Whatever the style, in these times of 24-hour

scenarios have been seen in piracy attacks

media coverage, publicity has ensured that

in the Gulf of Aden and in the context of

such crimes reach a far wider audience than

Somalia, and the opportunities for military or law

could normally be expected by poorly organised

enforcement agents to storm the stronghold are

groups of individuals with limited resources.

• To manage expectations

extremely limited in most cases.

• It can provide an opportunity to influence the captors • It can buy time and identify motivation and demands

The kidnap of civilian mariners and the impact

• To reduce tensions

The motive behind the kidnapping and the

of vessel hijackings on the maritime industry

• To increase rationality

style of it will also present varying challenges for

have almost guaranteed such events worldwide

• To secure the safe release of hostages and

responders. In Iraq, in late 2004, increasingly

media coverage. Such exposure serves to

kidnap involved foreign hostages paraded in

promote the events, the cause and the hostage

But in contemplating such communication,

front of cameras by radical militants, leading

takers status reaching international audiences

it is important to understand how it influences

to worldwide publicity with shocking scenes of

that they would otherwise have been unlikely to

hostage taker behaviour. Somalian pirates tend


theBaltic September 2010

the return of vessel and cargo

Corporate viewpoint Securewest International to be represented in the media as if they were

a skilled negotiator is needed to establish a

Crisis management is about managing

a single, homogenous entity, but in reality there

platform for negotiation and to pursue dialogue

everything at the same time and the demands

is diversity among groups and the individuals

in order to achieve agreement.

of a crisis can overwhelm the capacity of the management team unless a structured

within them. Using this diversity can change the way hostages are handled, managed and looked

Crisis management

approach is taken to ensure tasks are prioritised

after by a negotiator using skills to capitalise on

A call received at 6pm on a Sunday evening,

and organised.

the opportunities to influence moderates within

informing you that your vessel has been

The crisis management team must be

pirate groups.

hijacked, is not the time to think about how to

flexible so that roles and responsibilities are

handle the crisis.

identified, practiced, and that key positions can

It is also vital to recognise and understand the differences in hostage taker motivations and

A well planned and correctly implemented

be occupied by any suitable leader. In this way,

when these may overlap. Where hostage takers

response will create a sound foundation for

the crisis management team can expand or

are focused on their instrumental demands,

resolution by:

contract to the size of the business or the scale

such as ransoms, release of prisoners etc, then

• Acting quickly to improve your chances of

of the problem.

negotiation with a rational discourse, leading

success throughout the crisis response

Key roles might include, for example,

parties to make logical cost/benefit choices,

• Allowing for effective decision making

media, insurance/lawyer liaison, personnel

may be effective. However, in situations where

• Creating effective communication: explain –

management, government liaison and internal communication.

emotional and relationship issues (such as

inform – reassure – engage

power, trust and ‘face’) play a crucial role, such

Any management plan should first identify

A chair of the crisis management team should

bargaining may not be possible. In such cases,

its objectives. While preservation o f life and

be identified to provide direction, leadership and

the hostage may have no instrumental value

the safe return of the hostages ought to be

to task members to carry out actions and report

at all – instead they are an expressive act by

the first priority, other objectives may include

back at a frequency decided by the chair. Such

the hostage taker to demonstrate their ability

business interruption considerations, internal

a structure allows for decision by consensus

to control others. Here, expressive negotiation,

communication, liaising with crew families, P&I/

when appropriate, and autocratic leadership

which assumes that the nature and quality of

other insurers, official authorities, cargo owners

when required.

relationships play a large role in resolving conflict,

and, of course, negotiators.

Terms of release

will be important. Relationship development and

Then a clear escalation plan must be

building trust are thus viewed as critical to

developed which calls in the crisis management

Negotiation will be more than just about the

resolving such crisis incidents.

team. This team can then make effective

money, although this will probably be the primary

decisions and establish communication with key

focus of the pirates. How the release of the crew

stakeholders and develop a media strategy.

and vessel will be achieved should be agreed in

It reality, motivation usually has both an instrumental and expressive dimension, and

theBaltic September 2010


Corporate viewpoint Securewest International some detail. In the aftermath of a ransom drop

wrongful act by you, expect another until they

maritime security planning, it is equally vital that

there may be chaos onboard, with a heady mix

are satisfied. Nor should you show aggression

owners and operators of vessels that may be

of excitement, money and armed people.

in return. This is likely to escalate to further acts

vulnerable also plan for the worst and develop

of violence.

a multi-faceted strategy with effective crisis

In one incident, following a successful

management plans and thorough staff and crew

ransom drop, a pod containing millions of dollars was taken back on board the hijacked ship.

Don’t be uncooperative and hostile

Shopkeepers and traders from the shore boarded

This is likely to be counterproductive to rapport

to settle accounts; money had to be counted;

and confidence building with your captors. So

fights broke out; and it was 16 hours before the

long as they have the upper hand, it is better to

money was divided among the pirates. The lead

cooperate so that conditions for you and other

pirate and cohorts then demanded to be taken

hostages are calm and safer than if there is

further along the shoreline and the crew had to

obvious animosity.

face a further 24 hours under kidnap conditions.






specialising in maritime security for over 22 years, incorporating areas of expertise including

Do build rapport and personalise hostages

the provision of onboard or in-port security

pirate had arranged a ‘reception committee’ to relieve other gang members of their money and

By building rapport and ensuring the captors

vessel hardening consultancy and anti-piracy

a shootout ensued, during which he was killed

appreciate the hostages as fellow human beings,

training, crisis management training and K&R,

in the gunfight.

they are more likely to treat the crew well and

vessel tracking and SSAS monitoring through

When the final destination was reached, the lead

Terms and conditions, then, should form part

reduce the likelihood of ill treatment.

of the negotiation to ensure the vessel and crew

officers, escort vessels for high risk transits,

a 24/7/365 Maritime Assistance Centre, ISPS code related regulatory compliance programmes

Don’t drop your self-discipline

and audits, and DNV/MARAD/MCA/TRANSEC

It is also key that the crew understands

Remember your preparation and that people are

approved training.

the planned response, as the alternative might

working for your release. Keep up your morale

be that the crew could work against you and

and that of others by supporting each other

in, what they perceive to be, their own best

where possible.

are released and removed from further danger.

interests – for example, by resisting captors and members will need to know in advance the

Do expect feelings of frustration, anger, guilt etc afterwards

practical, positive steps they can take.

Post-traumatic stress is a normal response to an

increasing tension or initiating violence. Crew

It is important that the crew’s expectations are managed effectively and that they understand the situation. For instance, how long could the

abnormal situation. While the

belief that ‘prevention is better

than cure’ should still form the bedrock of any

situation take to resolve, how should the crew behave, and what will the company do for crew members’ families? Effective crew awareness briefings are thus essential and can be achieved in minimal time, with inputs expanding on a few key risk areas. The following seven points for crew and company could be used as a starting point to develop an understanding of how they can contribute to a successful, peaceful conclusion to a hostage event:

Do clearly communicate all intentions Sudden moves, gestures or actions can unnerve captors, who may be nervous and react badly. Ask their permission or make it clear what you’re about to do until tensions are reduced.

Don’t invite deadlines Why impose high noon on your already pressured situation. If a demand is made, you should not ask ‘by when?’

Do show pain if assaulted – don’t escalate If assaulted by your captor, make sure they believe it had the desired effect. If they think the first punch didn’t punish you for some perceived


theBaltic September 2010

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Corporate viewpoint Bergen Risk

Reducing risk Combating piracy


iracy has been top of many a ship-

with no need for a high speed internet link.

number of leading shipping companies, including

owners’ agenda in recent years and

This combination of data delivers a cutting-

Maersk and Heerema. Its contribution to safe

is even more pressing now that the

edge decision making tool, giving users the

and secure navigation was recognised in June

reach of the pirates’ activity is spread-

ability to identify, assess, display and minimise

when the system won the first ever Safety at Sea

ing deeper into the Indian Ocean. Perfecting the

the risk of piracy and other serious maritime

International Security Award. This award was

use of mother ships has allowed these maritime

crime. Analysing the pattern of recent attacks

created by Safety at Sea International magazine

criminals to operate much farther from the

alongside real-time weather information allows

to single out a product that demonstrates

coast than in recent years and is now causing

ships’ masters and shore-side operational teams

an innovative and original development with

greater concern for vessel owners and masters.

to assess the likelihood of an imminent attack.

potential to improve security on board and on

Recognising that pirates tend to operate from

It also gives them the opportunity to route their

shore. The application has also been shortlisted

relatively small skiffs that are limited by sea-state,

vessel through waters that are less hostile.

for the ONS 2010 innovation award.

Bergen Risk Solutions was quick to make the

The new system will show areas and corridors

link between weather forecasting and potential

where the current and forecasted weather

Understanding the threat

pirate activity. The company also understood the

conditions would prevent the use of the small

The unremitting globalisation of business brings

benefits of marrying this data with information on

skiffs favoured by pirates, and routing vessels

with it a range of new uncertainties and risks,

recent pirate attacks and up-to-date intelligence.

through these areas could significantly reduce

and understanding these factors is critical to

Working with world renowned partner, Jeppesen

the likelihood of an attack.

the success of any large commercial concern.

(a subsidiary of Boeing), Bergen Risk Solutions

The World Piracy Update is fed every two

A new operating environment demands clarity

launched their World Piracy Update system early

hours with data from a variety of recognised

and understanding so that risks to people,

this year – a comprehensive and unique piracy

sources, including the International Maritime

operations and financial performance can

intelligence platform.

Bureau, the US Office of Naval Intelligence,

be contained. Bergen Risk Solutions was

The World Piracy Update integrates with

EU NAVFOR Op Atalanta, UK Maritime Trade

established in 2007 and is an expert in assessing

Jeppesen’s digital sea chart platform (C-Map)

Operations (Dubai), plus 96,000 global media

risk, particularly in the maritime sector. Some

to overlay piracy information with detailed

sources that are scanned constantly. All data is

of the world’s leading oil and gas corporations

navigational and weather data. Attacks on

verified and cross-checked before it is uploaded

feature on its impressive client list, alongside

shipping are plotted on the C-Map platform

into the system. Since its launch, the World

major insurance companies, shipoperators and

and communicated to users ashore and afloat,

Piracy Update has been commissioned by a

construction firms. Its employees are all experts

Weather and piracy per 26 July 2010 and last four weeks. The marked area shows wave height of more than 1.5 meters in height. This is a typical example of where pirates attack and where they cannot. Pirates do not attack when wave height exceeds 1.5 meters. (Bergen Risk Solutions/Jeppesen)


theBaltic September 2010

Corporate viewpoint Bergen Risk incident is plotted, giving an indispensible visual overview of the security situation. Complementing this information is further intelligence on the likely threat facing operators of vessels and offshore installations along Nigeria’s coast. Ships and oil-rigs are particularly vulnerable to attack by pirates and politically motivated militants, and Bergen Risk Solution’s quarterly Maritime Security Review and Briefing details these risks to give a unique insight into the current situation. These tools are invaluable to any company that has a professional interest Piracy incidents past 28 days, as of 12 July 1200 UTC and Weather forecast for 13 July,

in Nigeria’s oil and are currently being used by

1200 UTC with wave alarm set at 1.5 meters (red area)

many companies operating in that area, including ExxonMobil,




in intelligence and risk management, and have

A company must also be aware of the

extensive experience in country risk analysis and

likelihood that it might be exposed to deliberate

practical project implementation.

acts of harm that could result in damage to its

Obtaining high quality information and

Core to Bergen Risk Solutions is the delivery

property or people. These security risks can

analysis is often the first step to understanding

of its consultancy services that analyse country,

include riots, violent conflict, acts of terrorism,

and minimising the potential threat to a company

political and security risks to provide sound

kidnapping or crime and must all be thoroughly

operating or intending to operate in a country

advice on how to minimise potential threats


or along a coastline where risks to people,

Association and Norwegian insurance company DNK that provides war risk cover.

to a business. With specific expertise in Africa

Understanding the exposure to risk is often

property and investments are high. Bergen Risk

and the Middle East, the company currently

the most important step to minimising its impact

Solutions is an expert in analysing these risks

provides comprehensive intelligence and advice

on a business. Bergen Risk Solutions can

– particularly in Africa, the Middle East and the

to a large number of blue-chip clients, including

provide that unique intelligence picture and

Indian Ocean – and advising and implementing

ExxonMobil, Petroleum Geo-Services, Solstad

advise a business on how best to reduce the

practical solutions. All commercial concerns

Offshore and Nigeria’s largest oil company,

potential threats with adequate prevention and

face risks, but those that succeed in business

Oando. Over the years, the company has

response strategies.

are often the ones that take steps to understand and minimise the risks that face their operations.

created an unrivalled intelligence network comprising its own people augmented with input

Nigeria – on land and offshore

from politicians, journalists, senior oil company

Another specific area of expertise offered by

representatives and even leaders of the local

Bergen Risk Solutions is intelligence gathering

guerrilla movement. Together, these sources

in the Niger Delta. This important region has

create an unrivalled picture of the local threat

attracted militant and criminal gangs that are

and risk situation.

Bergen Risk Solutions can help you do that.

challenging foreign oil companies over pollution,

For more information, please contact

When asked to assess a particular situation

use of resources, revenue distribution and

Arild Nodland

for a client, Bergen Risk Solutions will initially

jobs. Lawlessness and crime is threatening

Chief Executive Officer

undertake a comprehensive period of desk

corporate operations and Bergen Risk Solutions

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research covering 32 key areas, ranging from

is able to provide up-to-date intelligence on the

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the local crime situation to the relevant logistics

current situation. They can forecast developing


and transport networks. They will evaluate the

trends and assist companies reduce their risk.

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historical and current situation and provide

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valuable forecasts for the future. If required, more

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thorough research and analysis will be conducted

developments in that region. The reports are

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in the region of interest, including interviewing

equipped with facts, analysis, charts and


local sources and gathering up-to-the-minute

electronic briefing maps, and each serious


intelligence. This period of intense work results in the production of a thorough report, detailing the threats to investments and operations specific to a particular region or country. It also analyses risks to business attributable to the political, social, religious and cultural environment. This type of political risk, often resulting from the action or inaction of government, can materially affect a company’s profitability and impact significantly on its business aspirations. National political, economic, religious or ethnic tensions must all be fully understood if a business is to succeed in a new region.

theBaltic September 2010


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For a complete list of offices please visit: WWW.REGISTER-IRI.COM


Inspection gets tougher What will the new Paris MoU Inspection scheme mean for owners?


nnovations in safety and security regimes and

departure, as it is based on a risk based

will be extended to all ship types and apply to

tightened inspection regimes have led to a con-

targeting mechanism, which will reward quality

flags on the ‘Black List’ and ‘Grey List’. This

siderable fall in the number of ships detained

shipping with a smaller inspection burden and

should have an effect on a large number of

under the Paris MoU, said Richard Schiferli,

concentrate on high-risk ships, which will be

general cargo ships that manage to continue

general secretary of the organisation, speaking

subject to more in-depth and more frequent

trading in the area after multiple detentions,

at the MoU’s commitee meeting in Dublin earlier


particularly since detentions in up to the past

this year. “Since 2007 the detention percentage

The NIR makes use of company performance

36 months (from 17 June 2009) are counted.

has been decreasing gradually to an all-time low

and the Voluntary IMO Member State Audit

These ships will no longer be welcome in Paris

of 4.4%. The efforts of the Paris MoU are paying

Scheme to identify the risk profile of ships coming

MoU ports after 2011 and will be ‘banned’ for

off, although there is no room for complacency,”

in to port, together with the performance of the

a minimum period. While low-risk ships will be

he said.

flag state and the recognised organisation. Ships

rewarded with a 24 to 36 month inspection

At the same time, there is an urgent need to

will be divided into High, Standard and Low Risk.

interval, high-risk ships will be subject to a more

focus attention on those parties in the industry,

For the first time company performance will

rigorous inspection regime, with an expanded

which show little or no involvement to improve

contribute to the risk profile. Banning measures

inspection every six months.

standards. A handful of flags and recognised

The past inspection record of the ship as

organisations have scored low performance over

well as the ship’s age and ship type will influence

the past years and apparently make no efforts to

the targeting. Full implementation of the system will rely on collection of port call information.

improve. While the overall detention rate was

The NIR will be supported by a new

just 4.4%, detention of ships registered

information system ‘THETIS’, which will

in black-listed countries was running

replace the current SIReNaC system

at 14.7%, while detention of ships

located in St. Malo, France.

on the Grey List was 7.21%.

Mr Hogan, the Paris MoU

However, the Paris MoU hopes that the adoption of a new

chairman, said: “By adopting the

inspection regime will begin

New Inspection Regime we have

to tackle the problem of ships

taken a major step forward in

– and flag state regimes –

enhancing the safety of shipping

that regularly fail to pass

in our region and rewarding


quality shipoperators and shipowners for their commitment to and investment in safety.”

New inspection regime The New Inspection Regime, which the Paris MoU is describing as a ‘ground-breaking development in port state control’, will enter into force from 1 January 2011, replacing the existing port state control system. The NIR is a significant

Inspection will get tougher

theBaltic September 2010



UK tonnage tax window closes Shipowners paying conventional corporation tax must move quickly to seize potential opportunity to elect into the tonnage tax


ue Bill, a tax partner with Moore

for expenditure incurred on or after 1 January

it should consider providing a new ‘window of

Stephens, says: “There are a number

2011. This means that writing-down allowances

opportunity’ in which to make a tonnage tax

of forthcoming changes to the capital

on most ships will be reduced from 20% to 8%.”

election. But the UK Treasury has made it clear

allowances regime which will particu-

Currently, a group (or a stand-alone company)

to the Chamber of Shipping that, under current

larly affect shipowning companies that are out-

which starts activities that qualify for UK tonnage

conditions, a cogent business case for such an

side tonnage tax. The rate of writing-down allow-

tax has a period of one year in which to elect into

arrangement would have to be made.

ances on plant and machinery will be reduced

tonnage tax. This is an irrevocable election that

Sue Bill concludes: “In deciding whether

from 20% to 18% from 1 April 2012. Writing-

applies for a 10-year period. After the one-year

or not to make an election, it is important to

down allowances on long-life assets will also be

period has expired, no election can be made.

remember that it is for a 10-year period, and that

reduced from 10% to 8%. More importantly, the

The UK government has in the past accepted the

new windows of opportunity in which to elect are

exemption whereby certain ships are excluded

principle that, where there are significant changes

given only rarely, and may not be given in future.”

from being long-life assets is to be withdrawn

to corporation tax or to the tonnage tax regime,

Marshall Islands sees newbuild boom


he boom in newbuild deliveries, particularly in the dry bulk sector,

70%. The average age of the Marshall Islands fleet is 10 years and with

is driving a change in the age profile in the Marshall Islands fleet.

respect to the Greek tonnage entering the Registry in 2010, 77% of this

“A recent trend in the Registry is the increase of newbuild ton-

tonnage represents newbuilds,” he continued.

nage,” said Theo Xenakoudis, managing director of IRI’s

Piraeus office. “In 2008, for example, 50% of the tonnage entering the

fleet was newbuild tonnage whereas in 2009 that figure had gone up to

For 2010, it is expected that the Marshall Islands Registry will surpass 60 million gross tons with an anticipated 5.5 million gross tons entering the Registry from Greece, Turkey, Cyprus, Italy and Monaco.

LISCR appoints new general manager for London



quality manager, based in Genoa, Italy. Prior to

Spremulli says: “I am delighted to be


that he was with Lloyd’s Register for 18 years as

joining the Liberian Registry, which continues

US-based manager of the Liberian

its marine training manager in London following

to enjoy remarkable growth while maintaining

Registry, has appointed Jonathan

a number of roles, including a significant period

its independently acknowledged reputation for

Spremulli as general manager of its dedicat-

in Asia surveying ships during construction. He

the highest standards of safety worldwide. It

ed office in London, in succession to Stuart

is a chartered engineer with extensive seagoing

is a quality organisation, which does things

Williams, with effect from 2 August 2010.

experience as an officer with, among others,

the right way.”




International Registry



Jonathan Spremulli joins LISCR from leading

P&O Lines and Mobil Shipping.

classification society RINA, where he was group


theBaltic September 2010

Cargo focus Containers

Clear waters ahead? Has container shipping really turned the corner?


umes and equipment shortages may

Too soon for capacity expansion?

suggest a return to the good times for

Despite such positive sentiments, revenue

container shipping. However, some

generation remains a concern for container

experienced analysts are urging that the under-

shipping lines who are believed to have

standable optimism that now exists be tempered

collectively lost more than $15 billion in 2009.

by caution, given prevailing economic uncertain-

Maersk Line led the way with a $.8 billion loss,


while Cosco also went into the red to the tune

ising freight rates, surging trade vol-

For much of the past 18 months, container

of over US$1 billion in the year. “Lines found

shipping line executives have not had much to

themselves on the brink of failure last year, and

cheer about. The global economic downturn,

it was a sobering experience,” says Y.M. Kim,

coupled with a massive surge of new tonnage

president and chief executive officer of Hanjin

onto the market, pushed traffic levels, freight

Shipping. “All carriers have excess capacity and

rates and profitability down to the point where

new vessels on order, and that’s a net positive

survival was the only real objective.

as global trade improves, but after last year no

In recent months, though, there appears to have been a marked sea change in fortunes

carrier is going back to operating vessels underAsian exports are increasing

and the same executives have started smiling

utilised and at non-compensatory rates. Every sailing will have to be economically justifiable.”

again – well almost! The gloom and doom of

however, still well below comparable volumes for

2009 has been replaced by a plethora of general

the same period in 2008).

Many carriers have more recently responded to the upturn in volume on the transpacific

rate increases and peak season surcharges,

There is strong evidence that the increase

by reactivating service strings that had been

while serious container equipment shortages

has continued since. Internal reporting by TSA

suspended at the height of the recession. AXS

have become apparent in some trade lanes.

carriers shows a 24.1% year-on-year increase

Alphaliner has reported that additional vessel

Furthermore, container vessel charter rates have

in traffic during the month of May to the US

capacity of over 37,000 TEU returned to the

also been rallying strongly after a lengthy period

West Coast and a 30.8% increase in all-water

transpacific market in the months of April and

in the doldrums.

shipments to the East and Gulf Coasts via the

May and more service announcements have

Panama Canal. In June, figures from the AXS

been made since, suggesting further capacity

Alphaliner consultancy suggests volumes were

expansion through to the end of the third quarter

up even more, at 32% higher than in June 2009.

of this year.

Transpacific boosts volumes The main beacon of hope for the beleaguered

Economic recovery and greater consumer

In response to market demand, three of the

container lines is the transpacific trade,

confidence in the US seems to be behind the

world’s leading carriers, MSC, Maersk and CMA

where statistics so far this year have shown a

change. As Aik Meng, president of APL’s liner

CGM are joining forces to reintroduce a service

significant upturn in traffic that appears to have

division points out: “Now it appears that the

connecting five key ports in Asia – Kaohsiung,

caught many carriers off guard. The Transpacific

worst is behind us. The pipeline of Asian exports

Hong Kong, Xiamen, Shanghai, and Qingdao –

Stabilisation Agreement (TSA) – a consultative

to the US is filling rapidly and consumers are

directly with Long Beach. MSC Mediterranean

forum of leading carriers – reports that over

more optimistic over job security and household

Shipping Company will provide three vessels,

the first quarter of this year the total number of

incomes going forward.” Chinese exports to

Maersk two vessels and CMA CGM one vessel.

containers carried on Asia-US routes totalled

the US in particular have picked up strongly as

more than 2.5 million TEU, a 13% increase

a result.

This service made its first sailings in midJuly and Bill Woodhour, senior vice president, Maersk Line North America says: “This decision

compared with first quarter of 2009. (This is,

theBaltic September 2010


Cargo focus Containers was based on customer feedback surrounding

by eight vessels and will connect Asia and the

Americas to Asia. Even so, Maersk expects the

expected market demand with the approach of

Middle East with ports in Egypt, Turkey, and Italy

equipment shortage to last through the third

peak season.”

on a weekly basis.

quarter of this year and this could well cause

Evergreen Line and China Shipping have also

Overall, it is believed that six weekly loops

introduced new transpacific services linking Los

have been brought back into service on the

As well as renewed investment in equipment,

Angeles and Oakland with Qingdao, Shanghai

Europe-Asia trade since March. This is on top of

there are signs also that container lines are to

and Ningbo ports, in response to the booming

the 23 that were already in existence.

start ordering container vessels once again.

considerable disruption to supply chains.

Asia-US market. Furthermore, the New World

In July, for example, Evergreen announced

Alliance carriers, Hyundai, MOL and APL, have

that it has placed orders with Samsung Heavy

reinstated their weekly Pacific Southeast Service

Equipment availability tight

Industries for 10 8,000 TEU capacity container

that was dropped in late 2008. This connects

While more container shipping capacity is being

vessels. The first of these will enter service in

ports in Taiwan, China, Hong Kong and South

brought back into use, equipment availability


Korea with Long Beach and Oakland.

is a tough challenge for all carriers as box

Service changes are also starting to be made

manufacturing activity contracted sharply in

on the Asia-Europe trade, as volumes on this

2009. The result is that lines have been caught

A time for caution

sector start to pick up as well. According to the

short of equipment and it will take time to

In general though, carriers are still digesting the

European Liner Affairs Association, containerised

ramp production back up, as some factories

significant number of container vessels that are

exports from Europe to Asia were up by 23% in

have been mothballed due to low order rates.

on order, before returning to yards with fresh

the first quarter of 2010, while imports were

Worldwide container manufacturing averaged

contracts. Most will reactivate vessels in lay-up

up 21%. Although eastbound trade weakened

some three million TEU annually between 2004

before ordering again.

in the second quarter, westbound shipments

and 2008. However, in 2009 it is estimated that

have continued to surge ahead, rising by 27 and

only 350,000 units were delivered.

Indeed, figures from Lloyds MIU show that as of June this year there were still some 370

21% respectively in April and May. In response

“We already see a very tight equipment

container vessels laid up, representing over

to such positive trends CMA CGM and Maersk

situation and we expect an even more

5% of the world fleet. However, the number of

launched a new Asia-Europe service in June,

pronounced and serious shortage of containers

vessels in lay-up is falling fast, partly as carriers

deploying a total of 10 vessels, while Evergreen

in the coming months as we enter the peak

seek to use this idle capacity to move equipment

is joining forces with China Shipping and CMA

season,” says Lars Reno Jakobsen, Maersk Line

from areas of surplus to areas of demand, but

CGM to introduce a new Europe-Asia service

board member. In response to the equipment

also as the trend to slow-steaming effectively

that made its first sailings in June.

shortage, Maersk Line has ordered new

soaks up existing deployed capacity.

A service is also to be launched by a new

containers, as have other lines, and entered into

While there is no doubt that a recovery is

alliance, comprising Yang Ming, Hanjin, Hyundai

lease deals. Furthermore, the carrier says it has

underway in the container shipping market,

Merchant Marine and UASC, between Asia and

also reactivated laid-up container ships to assist

there are those who are wisely cautioning lines

the eastern Mediterranean. This will be operated

in repositioning containers, in particular from the

against getting too carried away. Economic problems still have to be solved in a number of countries, and the possibility of a further recessionary dip as public sector spending cuts take hold cannot be ruled out. According to John Fossey, editor of the much respected journal Containerisation International: “Whatever measure is used, the omens for longterm and sustainable growth in the container shipping sector do not look good.” He believes that there is a real chance of a strong dip taking place in trade volumes later this year. “The industry is far from safe,” he warns, and suggests that carriers “should make hay while the sun shines” as it may not last for long. As well as containership operators, owners are also benefitting from the upturn, with the Braemar Seascope Box index, which tracks charter rates, reaching a high of 57.28 in June, after almost six months of steady gains. The figure is the highest since December 2008, but a long way short of the peak of over 160 seen in March 2008. Charter rates also remain vulnerable to possible economic downturn, and it cannot be taken for granted that rates will continue to rise through the rest of the year and into 2011.

The number of vessels in lay-up is falling


theBaltic September 2010

Geographical focus Upper Gulf

New horizons Upper Gulf ports keep adding to capacity, and new routes and new operators are boosting growth


hile container traffic moving into

services. However, to accommodate the further

contracts relates to Berth 8 in the South Port

the UAE may have been hit

increase in traffic that is anticipated over the

area of Umm Qasr, where the company expects

hard by Dubai’s well-publicised

next few years, significant investment in port

to start operations towards the end of July. Two

financial problems, shipments to

facilities will have to take place within the Upper

container handling mobile harbour cranes are

countries in the Upper Gulf, including Kuwait,

Gulf region itself, and much of this will be geared

being shipped to Berth 8 and these should arrive

Bahrain, Iraq, Qatar and Saudi Arabia, are hold-

towards the needs of direct, and larger, mother

by the end of August.

ing up relatively well. These economies have

ship calls.

Berth 8 will mainly be used for handling

been generally less affected by the global eco-

container traffic. However, other general cargo

nomic downturn than the UAE, with the result

types will also be loaded and unloaded here,

that import levels have remained relatively high.

Throughput booms in Iraq

Gulftainer expects.

As an illustration of the trend, Sharjah’s

Iraq is one of the fastest growing economies

Keith Nuttall, Gulftainer commercial manager,

two container terminals recorded an increase

in this part of the Middle East, and one of the

says: “The arrival of the new cranes will be a

of almost 24% in the first five months of this

ports in most urgent need of an upgrade is the

major boost for Umm Qasr port, which is the

year compared with January-May 2009. With

country’s main shipping gateway, Umm Qasr.

main port for Iraqi cargoes. There is a shortage

local import and export traffic still suffering,

The port has experienced a difficult period after

of reliable cranes in the port to handle feeder

much of this increase was due to strong feeder

the ending of the war, but now stands on the

services moving to and from the UAE and this

movements to and from the Upper Gulf, which

brink of a new era.

investment will help shippers supply the Iraqi

are being transhipped in Sharjah.

Earlier this year the Iraq Ports Authority

market in a more timely manner.”

A significant amount of the Upper Gulf’s

awarded two key contracts to Sharjah-based

Gulftainer also has a concession to operate

container traffic is handled via the key UAE hubs

Gulftainer, to manage and operate container and

two berths, 10 and 11, which are located

of Dubai and Khorfakkan, rather than on direct

general cargo facilities in the port. One of these

between the South and North Port, and which

Capacity and thoroughput are picking up fast in the Upper Gulf region

theBaltic September 2010


The Heart of World Trade With 49 marine terminals around the world, we are at the heart of your business and your community. Operating around the clock, DP World never skips a beat.

Geographical focus Upper Gulf are currently about 80% finished. Gulftainer will

Port shift in Bahrain

Bandar Abbas is in need of expansion and

complete the construction of this dedicated

One of the biggest container terminal investments

upgrading to cope with forecast traffic and

container facility, which will be called the Iraq

in the region was completed last year, with the

plans to achieve this were dealt a blow earlier

Container Terminal, and which is expected to be

opening of the new Khalifa Bin Salman port in

this year when Hamburg Port Consulting (HPC)

operational around mid-2011. The terminal will

Bahrain. As well as meeting the needs of the

pulled out of a contract to help renovate the

be equipped with four ship-to-shore container

local market, the new deep-water port has been

port, seemingly as a result of Israeli government

gantry cranes which Gulftainer has ordered, as

designed to operate as a regional transhipment

pressure. The first phase of a second container

well as landside support equipment.

and transit centre, serving countries in the

terminal at the Shahid Rajaee port complex in

Upper Gulf.

Bandar Abbas is due to be operational later

Gulftainer rates prospects in Iraq highly, as the economy is now developing fast and the

Khalifa Bin Salman, which is also known

in 2010, boosting the port’s capacity to 3.5

oil majors in particular are looking to position

as Bahrain Gateway, comprises 1,200 metres

million TEU. However, HPC’s withdrawl means

equipment into the country to help meet their

of container berth, equipped with four post

a planned second phase could be delayed

oil production targets. Keith Nuttall says: “We

panamax gantry cranes, and 600 metres of

while the terminal operator, Tidewater, finds

see a lot of demand from the oil companies for

conventional and ro-ro berths, all with a 15

a new partner.

containerised cargo shipments to Iraq and much

metre draft alongside. As a result, the terminal

of this will be routed via Umm Qasr. It is very

can handle container vessels up to 8,000

important for Iraq generally and the oil industry

TEU capacity, compared with the 3000 TEU

in particular that Umm Qasr starts moving ahead

limit at Mina Salman, Bahrain’s former port,

Qatar Navigation to enter new markets

and we are pleased that we can play a part in

which is now being closed for commercial

The continued dynamism of the Upper Gulf

that process.”

cargo business.

markets is creating opportunities for companies

Currently, Bahrain Gateway can handle

moving containers and other cargoes to and

around 1 million TEU a year. Throughput in 2009

from the UAE hubs. One of the companies that

Work starts at Doha

was around 250,000 TEU, so there is plenty of

is gearing up to take advantage of increased

Qatar is another still-booming economy, which

spare capacity available. Future investments will

movements on intra-gulf routes is Qatar

is currently served through relatively small scale

be made only in line with projected volumes, and

Navigation. Last year the company doubled

container facilities in Doha and Mesaieed. Work

so further development of the port is considered

the capacity of its container feeder services,

on Qatar’s New Doha Port is expected to start

unlikely for the next few years at least.

by taking delivery of three new 1,015 TEU

this August, however, and should be completed

APM Terminals’ aim is to attract main

capacity container vessels, with a fourth ship

by 2015. The first phase will include new deep-

line vessel calls to Bahrain, and then feed

entering service in mid-2010. As a result,

water container handling facilities designed to

neighbouring markets. There has been some

Qatar Navigation is now able to offer daily calls

handle up to 2 million TEU a year. In the

sign that it is starting to achieve its goal, as APL

between Qatar’s Doha and Mesaieed port and

meantime, Mesaieed port is being upgraded and

has begun calling Bahrain directly with its West

the regional transhipment hubs of Jebel Ali

its new CT7 container and breakbulk terminal is

Asia Express (WAX) service, which provides a

and Khorfakkan.

due to start operations later this year.

direct connection between Bahrain and Asia.

This significant build-up of capacity has

Substantial investment is also being made

Following this boost, full container volumes

been made by Qatar Navigation to meet an

to expand Qatar’s Ras Laffan port, which mainly

are reported to be up 13% compared with 2009,

anticipated growth in demand for containerised

handles LNG and liquid bulk cargoes. A sixth

and the forecast container throughput for 2010

petrochemical and aluminium exports from

LNG berth was recently commissioned and a

is around 380,000 TEU.

Qatar, as well as continuing strong demand

second phase of the port expansion, involving

By contrast, the port’s general cargo volumes

for imports. The company has recently signed

further investment of over US$220 million, is

have dropped substantially since 2009. This

a contract with Qatalum, one of the biggest

currently in progress with the construction of

is a result of the fact that building materials,

producers of aluminium in the world, to carry

various berths for liquid products, container

predominantly cement and clinker, which were

exports in containers from Mesaieed to the UAE

vessels and harbour tugs. Work is also well

being imported in large volumes through to the

for transhipment, and this will provide a key base

underway on a new ship repair and drydocking

first quarter of 2009, have dropped back to

cargo for its expanded feeder network.

facility on a 43 hectare site at Ras Laffan that

more sustainable volumes. Imports of cars have,

Qatar Navigation is in the process of merging

will be partly operational later this year, as a joint

however, recovered since last year, and APM

with Qatar Shipping, which owns and operates

venture between Keppel Offshore & Marine and

Terminals is projecting a full year throughput

a fleet of five crude and chemical/product

Qatar Gas Transport (Nakilat).

of some 36,000 units for 2010, which is

tankers, of between 37,000 and 106,000 dwt,

approximately 20% more than 2009 levels.

and has a 50% stake in four 82,000 cu m

Container traffic moving through Saudi Arabia’s Gulf Coast port is clearly on the rise

LPG carriers delivered in 2008-9. The Qatar

this year, with Dammam handling 418,000 TEU

Shipping brand will soon return to the bulk

in the first four months of 2010, compared to

Expansion needed in Iran

shipping market, after a gap of several years,

382,000 TEU in the same months of 2009. The

The Iranian port of Bandar Abbas is another

transporting rock aggregate from Fujairah

president of the Saudi Ports Authority, Khaled

that has performed well in terms of its container

to Qatar. The COA signed by the company

Bubshait, has recently confirmed that a second

traffic in recent times. Last year the port handled

envisages shipping up to 35 million tonnes over

container terminal is to be built in Dammam, with

around 2.2 million TEU, up 11% compared

a five-year period, and will probably be fulfilled by

an annual capacity of 2 million TEU. This will be

to 2008. Moreover, in the first half of this

chartered-in bulk carriers.

constructed in stages, with the first comprising

year volumes amounted to 1.3 million TEU,

800 metres of quay and six ship-to-shore gantry

suggesting a further double digit rate of increase


is on the cards.

theBaltic September 2010



 45 million tonnes of cargo throughput  growing containerhub : 2,5 million TEU  1,6 million new cars  20 daily shortsea links : 12 million tons of roro  excellent distribution opportunities

Port Authority Zeebrugge / MBZ nv, Isabellalaan 1, 8380 Zeebrugge, Belgium Tel. +/32/50/54 32 11 - Fax +/32/50/54 32 24 -

Port focus Germany

Ports face difficult future Throughput is gradually recovering, but the slowdown could still have long-term effects


fter a difficult 2009, volumes in

Results for the first half of 2010 show an

the first half, an increase of 4.3% over the

Hamburg are showing signs of a

8% increase in total throughput over the same

same period in 2009. Total throughput for

strong recovery in 2010. Claudia

period in 2009, to a total of 58.6 million tonnes.

the year is expected to be 7.7 million TEU,

Roller, head of the port marketing

Imports showed particularly strong growth,

an increase of 9%.

agency, said that total throughput for the year is

up by 12.3%, while export was up by just

expected to be 119 million tonnes, an increase

2.9% over the previous year. Bulk throughput


of 8% over last year, provided that the world

was up by 14.8% to 19.7 million tonnes. The

throughput from the region at 4.2 million TEU in

economy continues its current positive develop-

increase in iron ore throughput was particularly

2009, of which 2.3 million TEU came from China.

ment. Results for the first half of the year have

striking, with a 243% increase over last year; 4.7

Throughput from the region for the first half of

shown an unexpectedly rapid recovery from

million tonnes against 1.4 million tonnes in the

the year showed 6.9% growth over the same

2009, she said. As a result, the port will be in a

first half of 2009.

period in 2009. Hamburg retains its position

Asia remains one of Hamburg’s most trade




position to continue investment in modernising

Container traffic, which was also hard hit

as a major transhipment port for Asian goods

and expanding the terminals, which had begun

during the 2009 crisis, is gradually recovering,

heading for the Baltic region, particularly for the

before the crisis stuck.

with a total throughput of 3.7 million TEU in

Russian market.

The Maersk Edinburgh, one of the largest ships to call at Hamburg

theBaltic September 2010


Port focus Germany Draft difficulties restrict calls

the Elbe a matter of priority. Cosco is switching

the terminal would have sufficient throughput to

Despite the positive figures, though, Hamburg

many of its container operations to Rotterdam as

make operations worthwhile.

still has long-standing problems with access and

a result, he said, and is now sending 80% of its

“Technnically, we are right on track, but we

depth. Dredging of the port entry channel has

cargo for the region through Rotterdam, rather

have agreed with the operator on a launch in

once again been delayed due to environmental

than Hamburg. In 2009, 60% of Cosco’s cargo

mid-2012, as we cannot ignore the current

concerns. This is particularly significant as many

went through Hamburg and only 40% through

economic situation, and want to be sure that

of the container lines use their largest vessels on


the necessary container throughput will be there

the Asia-Europe routes, and draft restrictions are

right from the start of operations. As a result,

causing access problems, with vessels unable to

our partners have confirmed that the guaranteed

Container slowdown delays JadeWeser

throughput figures for the first seven years

At the moment, shipowners – and the port –

One possible solution for shipowners finding

ceo of the JadeWeserPort Realisierungs GmbH

appear to be coping with the situation. According

port restrictions in Hamburg too tight would

& Co. KG, responsible for constructing and

to statistics from the port of Hamburg, more than

be a move to another of Germany’s ports.

managing the port. “This solution has given

100 containerships of more than 10,000 teu

Wilhelmshaven’s new box terminal, JadeWeser

all participants in the project the necessary

capacity will call at Hamburg during 2010. In

Port, is scheduled to begin operations in August

security,” he continued.

recent weeks, CGA CGM and Maersk launched

2012. The port will accommodate vessels with a

a joint Hamburg-Far-East Europe line with a call

draft of up to 16.5 metres.

navigate the Elbe fully laden or at certain states of the tide.

of operation will be made,” said Axel Kluth,

2012 will see the opening of the first 1,000 metres of quay. The remaining 1,735 metres

from the 11,356 teu Callisto, which has a fully

The 2012 launch was announced at the

will be opened a year later, on 5 August

laden draft of 15.5 metres – maximum draft in

end of May this year, and was a matter of

2013. “We would like to thank the regional

the Elbe is 12.5 metres. In August, the 13,100

considerable negotiation between the port

government of Niedersachsen and Bremen and

teu Maersk Edinburgh made its maiden call at

owner and its operators, the Eurogate group and

the construction company for their readiness to

the port, with a similar draft.

APM Terminals International. It has in fact been

negotiate,” said Emanuel Schiffer, head of the

However, according to reports in Die Welt in

pushed back from the original planned date in

board at Eurogate. “The agreed schedule will

July, Wei Jiafu, president of Cosco Lines, called

order to give the container market time to fully

give us much better conditions for a successful

on the German government to make dredging

recover from the 2008/9 slump and ensure that

launch at Wilhelmshaven.”

Restricted draft in the Elbe could cause problems for some vessels


theBaltic September 2010

Insurance parlance

Insurance Parlance Brokers must tighten up client money procedures Leading




and consultant, Moore Stephens, says that UK insurance brokers will have to be able to demonstrate that they have put in place properly embedded procedures to deal with handling client money, or else risk losing their regulated status. Moore




Group partner, Stuart Markley, says: “Senior management must be aware of the control

Chauncy Maples, which is being rebuilt as a floating clinic

procedures for client money which are in place in their firms, and they must be able to

a London-based specialist insurance company,

the lakeside for assembly. Since then, Chauncy

demonstrate such awareness, and the efficiency

which has chosen to make the renovation of

Maples has served as a gunboat, a trawler and

of controls and procedures, to the satisfaction

Chauncy Maples the focal point of its 125th

even a refuge from Arab slave traders. Until

of the regulator. Embedding proper client

anniversary celebrations.

recently, she has been administering to the needs of the local population as a bar, a far cry

money handling procedures into the day-to-

The Trust needs to raise up to £2 million

day operations of your company is a priority for

in order for the planned refit to be completed

achieving regulatory compliance.”

within a 12-month time frame. Thomas Miller is

According to Thomas Miller director, Mark

Writing in the latest issue of the Moore

contributing £250,000 from its own resources

Holford, the trust is not only seeking financial

Stephens Insurance Industry Group newsletter,

and had already raised a similar amount from

contributions: “Several potential donors have

Insured Interest, Markley says: “The FSA has

its friends, employees and business associates

already come forward to ask whether they

re-emphasised its continuing concern over the

even before the official launch of its appeal on

can offer more practical support by way of

handling of client money and assets in the

17 June. The government of Malawi is also

equipment or services. We are already in detailed

insurance industry. It has accorded a higher

expected to make a substantial contribution

discussions with a major manufacturer of diesel

priority to achieving compliance with client asset

towards the local labour costs.

engines who we hope will offer us a new main

from what is now envisaged for her future.

engine on favourable terms.

requirements because it is concerned that firms

Half a million people living along the coastline

are not always achieving an adequate level of

of Lake Malawi, which is 560km long and 75km


at its widest point, have neither access to

celebrate major anniversaries with lavish parties

healthcare nor medical protection from malaria,

and dinners but even before we all felt the full

tuberculosis, dysentery and HIV-Aids. Malawians

impact of the current global recession, there was

Thomas Miller backs Malawi project

seeking medical attention currently paddle

a growing feeling amongst the more forward-

dugout canoes up to 80km to reach medical aid,

thinking companies that it would be more

Thomas Miller is celebrating its 125th anniversary

risking fatal attacks by hippos and crocodiles.

appropriate to devote time and resources to






by supporting the renovation of Africa’s oldest

Chauncy Maples was built in Glasgow in 1898

projects that benefit the community. In Thomas

ship, fitting it out as a floating clinic to serve an

for British missionaries working in Central Africa

Miller’s case, we were looking for a project that

estimated half a million people living around the

and was named after the Bishop of Nyasaland

reflected not only our global reach and our

shores of Lake Malawi.

who drowned in a storm on Lake Malawi.

maritime heritage but one that would also appeal

Built in Glasgow in 1898, Chauncy Maples

Shipped to Mozambique in 3,481 small parts

to our UK clients such as members of the legal

is believed to be the oldest ship still afloat in

plus an 11 ton boiler mounted on wheels, the

profession, patent agents, housing associations

Africa. Funds for the restoration and refit are

vessel components were subsequently moved

and pension fund trustees. The Chauncy Maples

being raised by Chauncy Maples Malawi Trust

by river and then overland, local tribesmen

project ticked both boxes – and a host more.”

with considerable support from Thomas Miller,

carrying and dragging them the final 100 miles to

theBaltic September 2010


Insurance ITIC

Expert witness? The indemnity currently given to expert witnesses may soon be significantly limited, if not abolished, by the courts. Andrew Jamieson of the International Transport Intermediaries Club looks at the implications


number of Baltic Exchange mem-

Immunity under threat

in these circumstances the duty to the court

bers offer their services as expert wit-

The issue of the expert’s liability is topical

must override the expert’s fear of being sued for

nesses. Indeed, there is a database of

because the Supreme Court, now the final court

departing from a previously held position. Each

potential experts freely available on the

of appeal in the UK for civil cases, is due to

case has to be considered on its own facts

Exchange’s website. The evidence required by

rule upon the issue of whether or not an expert

and there will be grey areas where it is unclear

litigants will be varied. Shipbrokers, for example,

witness should have any immunity from liability

whether or not the expert will be immune from

may give evidence before a court or tribunal on

in relation to evidence given in civil proceedings.


the state of the spot charter market. And that

The current legal position is that expert

evidence, drawn from their professional knowl-

witnesses who give evidence at trial are immune

Accountability and insurance

edge, may be vital in establishing the level of

from being sued in respect of anything they

The majority of legal commentators predict that

damages payable.

say in court. This immunity also extends to the

the Supreme Court will seek to greatly limit, if not

But what happens if a litigant employs an

content of a report which the expert produces

abolish, the indemnity currently given to experts.

expert to help bring or defend a claim, and that

for the purpose of giving evidence. The claimant

The rule that barristers could not be sued for

expert ‘gets it wrong’? A client could incur a

cannot get round the immunity by suing on the

court work has been abolished. Experts are

substantial liability in legal costs (both in terms

report rather than on the evidence itself. The

generally professionals and the court will feel

of its own costs and an obligation to pay the

immunity does not, however, protect an expert

that they should be accountable and are likely to

opponent’s costs) as a result of relying on that

who has also been retained to advise on the

have insurance. Remember, too, that the victim

expert. Can the client then sue an expert who

merits of a party’s claim in litigation, even if it was

of their negligence will normally be the ‘lay client’

has been negligent?

intended that the expert would be a witness at

who has done nothing more than rely on the

the trial if the litigation was to proceed.

professional’s advice.

The position of an expert witness is different from that of other professionals employed by

A broker will usually have a dual role both as

The potential liability for experts means that

a litigant. In the UK, the Civil Procedure Rules

an adviser and as an independent expert. The

the duty should not be undertaken lightly. In any

make it clear that the expert has an overriding

work done in the former capacity will not be

event, it is recommended that, before agreeing

duty to the court to give impartial evidence.

immune from liability. It is quite possible that if,

to act, experts check their professional indemnity

Experts are frequently criticised for failing to

on the basis of the broker’s advice, litigation is

insurance to make certain that they would be

stick to this duty. In the Ikarian Reefer case,

started, the broker could be sued if that advice

covered should a claim be forthcoming.

for example, the Court of Appeal pointed out

was negligent. The legal costs incurred as a

In addition to the potential liabilities if the

that the expert evidence given on behalf of a

result of the broker’s advice could be extensive

expert has been negligent, even an ‘innocent’

shipowner was clearly not independent. It is

and a substantial liability for wasted costs could

expert can face substantial legal costs in dealing

too easy for experts to allow a desire to help

be incurred.

with a claim. At best, only a proportion of these

the client to blind them to the evidence. If they

In practice there is an obvious difficulty in

costs will ever be recovered. One additional

allow themselves to over-zealously ‘support the

separating the work undertaken into the two

point to bear in mind is that appointment as

cause’, experts will find that the client will blame

categories of adviser and expert. One of the

an expert is a personal appointment, not a

them if they lose.

issues that can arise involves one of the experts

company one. So make sure your company’s

changing his or her mind as a result of a meeting

policy covers you, the individual, when acting

of experts. The courts have considered that

as an expert.


theBaltic September 2010

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Legal news

Legally speaking Pollution advice

A master might take a longer route to a

others. However, claimants should consider the

The Deepwater Horizon oil spill in the Gulf of

port to avoid an oil slick. Moreover, a port might

likelihood of any recovery given limitations of

Mexico prompted a flurry of queries concerning

be temporarily closed as the slick develops. In

liability currently in place in the US.

safe ports, time and voyage charterparties and

these situations, a ship is likely to remain on-hire

hull fouling, according to the UK Defence Club.

unless there are specific clauses to the contrary

While the spill is now largely under control, the

in a time charterparty.

issues raised will be relevant to similar cases in

Restrictions imposed on shipping might

US liability limits retained – for now

cause delays in entering and departing from

The US has passed an updated version of

Although there are no court decisions on the

ports in the area. Much will depend on the

the Oil Spill Accountability and Environmental

point, a port could be considered as unsafe if

wording of each charter. Unless demurrage is

Protection Act, put together in the wake of the

its approaches are covered with oil which could

already running, the risk of delay will fall initially

Deepwater Horizon oil spill. The Bill eliminates

damage a ship or cause it to incur penalties,

on the owner. However, if a nominated port

liability limits for offshore drilling facilities, but

delays or fines. Assessing whether a port is

becomes closed prior to its arrival, the ship may

leaves the vessel liability limits under OPA 90

unsafe is a question of fact but if the danger

earn demurrage once she proceeds “so near as

unchanged. However, a proposed amendment

can be avoided by an alternative safe route or

she may safely get”.

to the Bill would allow the President to review

the future.

good seamanship, it is unlikely the port will be

The Club warns that ships trading recently

these limits every three years.

in affected areas in the Gulf of Mexico should

considered unsafe. Ports close to the oil spill may not be

ensure there is no hull fouling before entering

considered as sufficiently unsafe to allow an

ports outside the area, thereby complying

owner to refuse an order to go to such a port

with oil pollution regulations. In terms of

Single Act for Port Arrivals in the EU?

under a timecharter or refuse such a nomination

compensation for cleaning costs or lost time, an

The Maritime Advocate reports that the EU



owner may have a claim against a timecharterer

is getting ready to simplify rules on ships’

acceptance of such an order should not normally

under an implied indemnity for following the

reporting. On 6 July 2010, the European

preclude an owner from claiming damages later

charterer’s orders, or perhaps under a safe port

Parliament approved a proposal made by

for losses resulting from the oil.

warranty. Claims might be submitted to BP and

the European Commission for a directive on




reporting formalities for ships arriving in and/ or departing from ports of the EU Member States. The Parliament approved the proposal at first reading, which in practice means that the proposal can be adopted by the Council of the EU without debate and then become law. The draft directive is intended to simplify and facilitate the administrative procedures for ships entering and leaving EU ports, inter alia by setting up a one-stop administrative shop in every port within five years. From 2013, the directive will also simplify and harmonise a certain number of procedures, notably by reducing the repeated transmission of data to the different administrative authorities in the ports. The provisions of the directive will be Procedures for entering EU ports have been simplified


theBaltic September 2010

phased in between 2012 and 2015.

Commercial profiles

GFI Freight The secret to being a leading freight broker: be a whole lot more


orian Benson, head of GFI’s Dry FFA desk

Brokers now face more pressure than ever to

and Andrew Jamieson from ACM-GFI,

improve services and technology for market

chairmen of the dry and wet sections of the FFA

participants. What is GFI doing to increase

Brokers’ Association (FFABA), talk about issues

technology adoption? DB: We are actively promoting electronic trading

such as liquidity, technology, clearing and counterparty exposure

the Dry and Wet FFABA we are heavily involved

amongst our customers. The efficiency gains are

in market discussions and are at the forefront

too big to ignore. EnergyMatch Europe, GFI’s

GFI has played an integral role in the

of working towards the greater benefit of the

multi-commodity, multi-clearing, multi-exchange

commodity part of the financial sector. Can

markets as a whole.

platform allows participants to execute both wet and dry FFA transactions together on one venue,

you highlight key benefits freight brokers add to the industry?

Have there been any changes to the wet FFA

thereby decreasing trading costs. EnergyMatch

DB: The benefits that we offer for wet and

products since the beginning of this year?

Europe can also be tailored to suit a customer’s

dry FFAs are our combined knowledge and

AJ: The emergence of $/mt contracts this year

unique trading needs. If you are a hedge fund,

expertise. The freight market is highly interlinked

has been the main change to take place. This

you can customise the platform to look at total

with other physical commodities, such as coal,

new contract allows users to trade in periods out

risk across a range of markets, not just freight. In

oil and iron ore, and brokers need to be very

with the current pricing year without having to

addition, freight customers can access FENICS

informed with what is happening or due to

take on ‘flat rate risk’. This contract will hopefully

Freight, which offers analytical, chartering and

happen so that any movement and changes

boost the counterparties that want to trade

price discovery tools, for both the wet and dry

can be factored in. Every client, be it a steel

FFAs on a ship/cargo specific basis as part of a

freight markets. It has in-depth data of intra and

merchant, mining co, bank or a hedge fund, has

hedge, as well as offering a more commoditised

cross-route analysis, highlighting opportunities

different needs, yet they are all interlinked with

and easily understood contract to the wider

within FFA pricing.

each other.

speculative users who we see trading in the dry market on a daily basis. $/mt also enables us to

Your commitment to the freight industry has

Iron ore continues to be the main driver for

trade $/day, as bunker swaps are now readily

been marked by the rapid growth of your

the dry bulk sector, having shown consistent

available to market participants.

business globally. Can you back this up with any figures?

growth over the last quarter. How do you see this complementing your current business?

How do you see the freight market evolving?

DB: Terry Parmenter, head of the dry physical

DB: There are synergies between markets. The

DB: FFAs are a relatively new player in the field

team, says that his head count has grown by

recent emergence of an iron ore derivatives

of commodity derivatives. It started life as a

over a 1,000% over a four-year period. There is

market, based around CIF pricing into Tianjin,

simple tool for hedging and has evolved into an

no greater indicator of industry commitment than

has freight as a natural and integral part of the

integral part of the global derivative landscape.

a company growing its staff in order to serve

costing. Similarly, there are synergies between

Similarly, the risk management side of the

more customers.

dry FFAs and the coal market with a natural

product has grown in importance and has been

correlation established between implied freight

widely accepted as a fundamental requirement

For more information, please contact us:

generated by API2 and API4 against the C4

for those involved in moving commodities by

Dry Freight (FFA)

market. We follow and analyse these markets,

sea. While screens are a constant source of

London: +44 20 7877 8090

which allow us to offer greater ‘colour’ to our

discussion and debate, GFI have shown their

Singapore: +65 6435 0469


commitment to this tool and remain a market

Cape Town: +27 21 410 8876

leader in this field for both wet and dry. Wet Freight (FFA)

The London Metal Exchange is looking to play a larger role in the freight sector. How

Are you seeing changes in the approach of

New York: +1 212 968 2050

do GFI and its broking partners deal with

some your customers?

London: +44 20 7422 1180

changes this might bring?

DB: Counterparty exposure is at the forefront

Singapore: +65 6820 2980

DB: The derivative markets are in a constant

of customers’ concerns and this has led to an

state of evolution and freight is no different.

almost total reliance on clearing. There has also

Dry Freight

GFI, with its expertise across many sectors,

been an expansion in the small clip market as the

New York: + 1 212 968 2211

can react and adapt to any changes that

wish to hold large exposure on the speculative

London: +44 20 7877 8151

may occur, whether this is the emergence of

trading books has reduced somewhat. The

Singapore: +65 6435 0471

new clearing mechanisms, screens, exchanges

lower rates and inevitable reduction in ‘price’

Shanghai: + 86 216 859 6721

or amendments to the regulatory landscape.

volatility has led to a greater level of spread

Naturally, in our unique position of chairing both

trading activity occurring.

theBaltic September 2010



Commercial profiles

The Aalborg Industries Group A

Waste heat recovery

alborg Industries is the leading supplier of

of three technologies: filtra­tion for pre-treatment,

steam boilers, ther­mal fluid heaters, heat

low pressure UV light for disinfection, and

Aalborg Industries’ MISSION™ XW-TG econo­

exchangers and inert gas systems. We offer

ultrasound for cleaning. This combination

miser generates power using a steam turbine

reliable, innovative and environmentally friendly

ensures a reliable and highly efficient ballast water

driven generator (turbo generator). The heat

products with low life cycle costs. The Aalborg

treatment that will meet even the most stringent

recovery ca­pacity of the economiser means that

Industries Group operates a global After Sales

standards in the industry. Thanks to the use of

the engines do not need to produce so much

service from its companies in 14 countries.

ultrasonic technology, the system is self-cleaning

power, which in turn saves fuel. Shipowners


and thus almost entirely maintenance-free. No

using this technology have achieved significant


generation of chemical substances takes place

fuel savings and thereby reduced CO2 emissions

and energy requirements are relatively low.

in double digit percentages.

combination of UV light and ultrasound, a new

Exhaust gas cleaning

Aalborg Industries A/S

and cost-saving sulphur emission abatement

Using the exhaust gas cleaning system from

PO Box 844, Gasvaerksvej 24

technology to clean ex­haust gas from ship

Aalborg Industries, shipowners are enabled to

9100 Aalborg

engines, and continued optimisation of large

continue operating on heavy fuel oil instead of


waste heat recovery boilers.

more expensive marine diesel oil in order to meet

Tel: +45 99 304000


the new IMO regulation coming into force in

Fax: +45 98 102865

operational enhancements, Aalborg Industries

2015 (Emission Control Areas (ECA)) and 2020


offers product ranges for the retrofitting as








prod­u cts

technologies are the AquaTri­Comb™ system for ballast water treatment based on a unique





well as the newbuilding market, providing

Cleaning exhaust gases is a vital and cost-

operational savings while offering an enhanced

saving alternative to using low or no sulphur

environmental profile.

fuels. Apart from cleaning SOX emissions, the exhaust gas scrubbers have also proved

Water treatment systems

to be more effective in removing harmful

Our unique system for treatment of ballast water,

particles compared with switching solely to

the AquaTri­Comb™ system, uses a combination

low-sulphur fuels.

Carbon Positive G

reenhouse gas regulation is coming to

The company now brings this experience to

(c) reduce emissions less than required and

shipping. It’s not a case of ‘if’, but ‘when’.

shipping. Not just to help shipowners, managers

achieve compliance by buying emission offset credits elsewhere.

The history of emissions regulation in other

and others prepare for regulation but to help

industry sectors strongly suggests that sooner

the industry shape the best regulatory system

Carbon Positive will assist clients identify

or later market-based measures involving

it can, working with the regulators. We are on

the best strategies to meet environmental and

emissions trading in some form will be the end

that path now, developing a series of voluntary

commercial goals, select the preferred strategy,

result. Carbon Positive believes the long-term

emissions trading experiments to inform both

and implement projects and specific steps

interests of the maritime industry are best served

the development of regulation and the shipping

within those strategies. Our work thus involves

by such a market-based system, one that offers

industry’s response to it.

developing programs to manage emissions

flexibility to shipowners and operators in how

Once emission trading regulations are

control compliance, economic analysis of the

they go about reducing their emissions, and also

set, we’ll help shipping entities manage the

emission control options, technological solutions

a system into which the industry has had a say.

compliance risks and profit from the trading

to reduce emissions, and financing strategies

Emissions trading measures best deliver this

opportunities that will follow. Every business’s

to deliver on these tasks. Carbon Positive helps

flexibility, enabling shipowners to choose the

circumstances are different. A range of options

shipping learn, prepare and act.

most suitable, least-cost compliance solution to

for complying with mandated emissions targets

reduce emissions. We base this contention on

will give shipping companies opportunities to

experience - the Carbon Positive team has been

choose what suits them. For example, they

involved for 25 years in the development of, and


For more information, please contact us:

compliance with, air emissions regulations; back

(a) control emissions exactly to regulation

to their very beginnings in ‘acid rain’ sulphur

through fuel-efficiency or direct emissions-

Athens 10674, Greece

emissions regulation in the United States in the

reduction technologies

Tel: +30 210 364 2304

5, Koumbari Street

early 1980s. We provide consulting and project

(b) reduce emissions more than required,

management services to emitters of greenhouse

going beyond the compliance obligation and


gases (GHGs) and other air-borne emissions.

generating tradable credits from the excess, or



theBaltic September 2010

Fax: +30 210364 0373

Commercial profiles

The Norwegian International Ship Register – NIS The complete maritime administration


ith both its traditional ship register – NOR,

development of equal conditions and uniform

Great emphasis is continuously placed on

and its second international ship register


keeping turnaround times to a bare minimum.

The Norwegian judicial system is highly

Due to time differences, registration is possible

respected in the maritime sector as sophisticated

from 7am until midnight every day except

There is one nationwide registration office,

and predictable. Accordingly, the register is

Sundays and international holidays.

the Ship Register (“Skipsregisteret”) located in

recognised by owners and financiers as a secure

Bergen which administers both registers. The

and professional option.

– NIS, Norway is ranked as one of the world’s major shipping nations.

Each registration will be assigned a case officer who will be in charge of that particular

Shipping taxation is also very favourable

registration process and follow it until completion.

in Norway. As a general rule, income from the

If necessary, other case officers will, however,

The NIS differs from the NOR in that it is

operation of ships registered in the NIS and

always be available to assist.

open to shipowners of all nationalities and

owned entirely by non-Norwegians will not be

allows employment of foreign seafarers on local/

taxed here.

Register comes under the governance of the Ministry of Trade and Industry.

national wages, established through collective

Supporting the UN Secretary Council’s

wage agreements between an employers’

efforts and being the first country outside Asia

federation and an independent union which

to become a member of ReCAAP, is all part

organises the seafarers.

of the Norwegian government’s strategy to

Ships registered in the NIS fly the Norwegian

take an offensive stand in the combat against

flag and are subject to Norwegian jurisdiction.

piracy. With approximately 500 consular stations

The NIS has a reputation for being a registry

worldwide, Norway is very well represented and

for quality tonnage, which avoids targeting

prepared to offer assistance to Norwegian ships

To learn more about the register, please contact

from port state control inspections in foreign

and their crew in needy situations.

us directly:

ports. Furthermore, participation in international

Efficiency, objectivity and high professional

maritime committees such as the IMO has

standards are distinctive marks for the Register,


secured Norway significant influence in the

which is renowned for offering excellent services.


DP World

Tel: 00 47 55 54 12 50


DP World is one of the largest marine terminal

In taking this customer-centric approach, DP

operators in the world, with 50 terminals and

World is building on the established relationships

11 new developments across 31 countries¹. Its

and superior level of service demonstrated at

dedicated, experienced and professional team

its flagship Jebel Ali facility in Dubai, which has

of nearly 30,000 people serves customers in

been voted “Best Seaport in the Middle East” for

For more information, please visit

some of the most dynamic economies in the

16 consecutive years.



In 2009, DP World handled more than 43.4

DP World aims to enhance customers’

million TEU (twenty-foot equivalent container

supply chain efficiency by effectively managing

units) across its portfolio from the Americas

container, bulk and other terminal cargo.

to Asia. With a pipeline of expansion and

The company constantly invests in terminal

development projects in key growth markets,

infrastructure, facilities and people, working

including India, China and the Middle East,

closely with customers and business partners

capacity is expected to rise to around 95 million

to provide quality services today and tomorrow,

TEU over the next 10 years, in line with market

when and where customers need them.

demand. ¹ As of July 2010

theBaltic September 2010


Commercial profiles

Fairmount Marine BV F

airmount’s main activities are long-distance ocean towage, salvage and heavy-lift trans-

portation. In order to meet the highest quality standards imposed by our worldwide clientele – an absolute requirement when it comes to the towage and installation of the largest and most valuable floating units in the world such as F(P) SOs, gravity base structures, semi-submersible and jack-up rigs – Fairmount Marine operates five long-distance towing vessels with anchorhandling capacities of no less than 205 tonnes bollard pull and an average age of less than two years. In addition to these five supertugs, we operate – together with our Japanese partner

in remote areas or areas where no large dry-

transportation, Fairmount Marine has positioned

Fukada Salvage & Marine Works Co., Ltd – a

dock is available.

itself in the premier league.

fleet of multipurpose offshore support vessels

Fairmount’s staff of professionals both onshore

and semi-submersible barges. Amongst them is

and offshore is entirely dedicated to providing

the biggest semi-submersible barge in the world,


the 50,000 dwt giant Gavea Lifter. These barges

solutions for demanding towage and transportation

are perfectly suited for the transport of jack-up

assignments, worldwide. Fairmount’s quality

rigs, modules, topsides and any other (general)

management system and safety, health and

heavy and oversized cargoes. Furthermore, in

environment protection measurements are second

addition to providing a means of transport, they

to none and form an integrated, vital part of all

tel: +31 10 240 2500

have proven to be a perfect platform for dry-

operations. Building on the legacy of Holland as


docking of semi-sub rigs, drillships and vessels

the cradle of ocean towage and special marine




It is our goal and our duty to surpass clients’ expectations, every day.


Wilhelmsen Ships Service W

ilhelmsen Ships Service is part of

and coordinate their global business. This

Maritime logistics

Wilhelmsen Maritime Services, a Wilh.

global coordination enables the streamlining of

Wilhelmsen Ships Service also handles maritime

Wilhelmsen Group Company. It has the world’s

operations, cash transactions, documentation

logistics, providing commercial and operational

largest maritime services network, with the abil-

and communication flows, resulting in improved

services in the local market on behalf of our

ity to service 2,178 ports in 125 countries. The


liner principals. The focus is on optimising the

company’s focus is to ensure that vessels oper-

administrative costs.





ate smoothly at sea and cut down turnaround time in port. Their customer services provide

cargo and equipment mix, thereby increasing the principals’ profit.

Unitor products

The Ships Spares Logistics – First Mile

peace of mind through 24/7 accessibility, per-

The company supplies a broad range of Unitor-

to Last Mile offer is a brand-new concept

sonal service and local knowledge.

branded safety equipment, welding equipment

that Wilhelmsen Ships Service is bringing to

Wilhelmsen Ships Service supplies maritime

and consumables, refrigeration equipment

the market. Using our extensive geographical

products and services, specialising in safety and

and spares, refrigerants, gases, water and

presence and dedicated freight forwarders,

environmental services, Unitor marine products,

fuel oil testing equipment, and cleaning and

customers’ spare parts are moved from

maritime logistics and ships agency.

maintenance chemicals. All products are tested

their manufacturer or supplier to their vessel,

for reliability in the tough marine environment.

anywhere in the world, without costly delays

Ships Agency

along the way. A key element of the offer is a

Safety and environmental services

single point of contact, with total visibility of data

ships agents handle port calls. The company has standardised procedures to ensure that

In addition, the company provides fire, rescue

reporting features.

customers receive consistent service in all 2,200

and safety service, refrigeration service, welding

ports where they operate around the world.

training, chemical services, refrigeration training,

For more information, please visit:

Every customer who enters into a multiple

and EPA training, with the objective of enhancing


port service agreement is allocated a single

safe vessel operations.

Wilhelmsen Ships Service has redefined the way

point-of-contact, a Global Agent, to oversee


theBaltic September 2010

such as prices, order status and a full range of

Commercial profiles

International Registries, Inc I

nternational Registries, Inc. (IRI) and its group

issue seafarer documentation and service

of both the Paris and Tokyo MoUs and to hold

of affiliated companies are the Maritime and

clientele. The continued decentralisation of

Qualship 21 status with the United States Coast

Corporate Administrators of the Republic of the

operations to the 20 worldwide offices, where

Guard for five consecutive years.

Marshall Islands.

the Registry’s maritime experts know owners

The main factor that differentiates the

and operators personally and work closely with

Marshall Islands Registry is its commitment to its

IRI has been administering

maritime and corporate registries since 1948. The Marshall Islands Registry moved into

them, continues the growing trend of a quality

customers and the services the Registry provides

position as the world’s third largest registry at

fleet. The most important asset to the Registry

around the world. Having properly trained staff

the end of 2009. By the end of the second

is its customers and IRI strives to provide them

available with the ability to interact with PSC

quarter of 2010, the Registry stood at 58.6

with full service from any office 24 hours a day.

authorities, class and owners/operators, enables the Registry to provide around the clock service

million gross tonnes and 2,215 vessels. Vessel

As an active member of the International

types include oil tankers, LNG/gas carriers, bulk

Maritime Organization (IMO), the Marshall

carriers, container ships, mobile offshore drilling

Islands has ratified and implemented all key

units, and yachts, among others. The Registry

international conventions and instruments. It

has shown substantial growth year-after-year,

continually strives to promote the quality of

not only in terms of vessel registrations but also

vessels in its Registry, turning away on average

in terms of Marshall Islands registered shipping

one in three vessels seeking to enter the fleet.

companies going public on stock exchanges in

Those vessels operating under the Marshall

For more information, please contact:

London, New York and Singapore.

Islands flag achieve the highest ratings in the

International Registries (U.K.) Limited

IRI has a network of 20 worldwide offices

Port State Control (PSC) international rankings.

Tel: +44 20 7638 4748

that have the ability to register a vessel or yacht,

The Marshall Islands Registry is the only major

Fax: +44 20 7382 7820

record a mortgage, incorporate a company,

open registry to be included on the White Lists


to customers and keeps the ships moving.

Copenhagen Business School Executive MBA in Shipping and Logistics (The Blue MBA)


he program aims to give participants up-to-

modules will deal with leadership issues and

date insight into shipping economics and

personal development.

“In shipping today, organisations must focus on managing through economic cycles, innovation,

For the final integrating strategy project,

finding new markets, understanding sustainability,

topics should be chosen for their strategic

and the best research and development. A practical



approach to these challenges is the strength of the

shipping, integrating commercial, technological

participating companies a valuable and practical

Blue MBA, where participating executives gain a

and financial aspects as well as maritime law

analysis. The project serves two purposes: for

wealth of extra international experience from tutors,

and supply-chain management, and leadership

the candidate, the aim is to integrate topics

advisors and fellow students.”

challenges. In this way, graduates of the

covered in the program by using real world data

Prof Peter Lorange, member of the Blue

program develop a complete understanding of

on a problem related to the candidate’s own

MBA advisory board and professor of strategy

the challenges in this sector.

modern management theories and their application in the maritime sector. The program adopts an holistic view of




company. For the candidate’s company, the aim

in the Blue MBA program, president of Lorange

The program takes students to a top

is to have a strategic issue thoroughly analysed,

Institute of Business in Zurich and Immediate Past

international level in business administration,

with proposed solutions and implementation

President of IMD, Switzerland

reflecting the needs of the industry in a world


where globalisation, enhanced competition,

Start of the next class: 26 September 2011

“The Blue MBA provides great insight into

market understanding, strategic planning, and

(with an optional pre-MBA program 21-23

essential aspects of the shipping and logistics

the speed of technological change place ever-


industry; it gives the overview of the industry and it

increasing demands on executive management

dives deeply into fundamentals like the key drivers,


opportunities and risks for the various players in the

The program consists of eight one-week

industry. With world-class teaching staff and senior

modules plus a final integrating strategy project

participants from most parts of the industry, it is a

(thesis). The eight modules are delivered on

dynamic learning experience with a good coupling

a regular basis, spread over the duration of

between theory and practice.”

the program, supported by a virtual platform,

For further details please see:

where individual/group assignments and group


Maritime Technology, AP Møller Maersk (Class

discussions enhance the learning process. All


of 2009)

theBaltic September 2010

Bo Cerup-Simonsen, Vice-President; Maersk


Commercial profiles

Jeppesen Norway J


director, Maritime Industry Affairs and Services

light and commercial marine markets. Safety-

Hydrography and Navigation (DHN) have

for Jeppesen. “We look forward to a long and

conscious boaters and operators that range

reached an agreement giving Jeppesen access

mutually beneficial cooperation between our

from inland and coastal towboats to SOLAS

to all of the nautical charts and data published


class vessels rely on Jeppesen Marine, which





“DHN is responsible for ensuring the safety

is chartered with the same underlying values

The agreement, signed through Empresa

of maritime navigation in Brazilian waters and

that launched Jeppesen in 1934 – improving

Gerencial de Projetos Navais (EMGEPRON),

NAVAREA-V,” says Admiral Luiz Fernando


will allow Jeppesen to use DHN’s high quality

Palmer Fonseca, director of the Brazilian

navigation solutions.

nautical charts and data in its industry leading

Hydrographic Service.

“The agreement with

For more than 75 years Jeppesen has made

marine navigation products for both commercial

Jeppesen will allow for broadening the scope

it possible for pilots and their passengers to

and light marine users. With direct access to

of products for navigation and, doing so, will

safely and efficiently reach their destinations.

sovereign data, Jeppesen is able to ensure the

support our mission, and increase quality and

Today, this pioneering spirit continues as

highest levels of quality and integrity, thereby

integrity of nautical products. We understand

Jeppesen delivers essential information and

increasing the safety of maritime navigation. The

that the products to be supplied by Jeppesen

optimisation solutions to improve the efficiency

agreement also makes possible new chart and

will expand the offerings of new products for

of air, sea and rail operations around the globe.

data coverage areas for Brazilian waters.

specific customer usage, such as pilotage or

Jeppesen is a subsidiary of Boeing Commercial

sports and recreation , among others.”

Aviation Services, a unit of Boeing Commercial

by DHN for Brazil’s sovereign waters.

In addition, Jeppesen and DHN have a letter





Airplanes. Jeppesen corporate information is

of intent, under which the two are discussing the use of Jeppesen dKart tools and software

About Jeppesen Marine

by DHN to digitise and automate the production

Jeppesen is a market-leading provider of vessel

of Notices to Mariners, List of Lights and other

operations services and digital navigation

aids to navigation.

available online at

solutions, based on worldwide vector chart data

Contact Jeppesen at:

“Jeppesen is committed to supporting

type approved to ISO19879, meteorological

Jeppesen Norway AS, P.O. Box 212, 4379

sovereign organisations, such as DHN, in their

information and transmission technologies.

Egersund, Norway

mission of ensuring safe and efficient navigation

Jeppesen Marine offers a wide range of navigation


within their waters,” says Michael Bergmann,

and operations products and services to both


Andrew Weir Shipping A

ndrew Weir Shipping provides a complete

which we can offer our services worldwide.

with brokers and underwriters in the market and

shipmanagement service from repair and

Our relationships with key manufacturers and

can provide competitive quotations for all types

maintenance to purchasing and accounting. As

suppliers of marine equipment enable us to

of marine cover. We also provide a full claims

a long-standing member of the UK’s maritime

respond quickly to urgent requirements from

management service, from inception to final

industry, we have an enviable reputation, and

the vessel, and our integrated maintenance and


as a result have excellent relationships with a

purchasing software ensures that day-to-day

broad range of companies in the world shipping

operations are carried out efficiently.

Andrew Weir Shipping is dedicated to providing a quality service which is large enough

Andrew Weir places great importance on

to offer economies of scale, yet small enough

We offer a full shipmanagement service,

the relationships it has with its clients. We

to make our clients feel more of a partner than

starting from newbuild and conversion project

pride ourselves on our ability to communicate

a customer.

management. We have established relationships

and report to owners in their preferred formats

with classification societies and flag state

as required for either the technical side of the

authorities and can advise on issues relating to

business, or the budgetary and accounting side.


registration of vessels, and carry this out on an

Additional services provided include a

owner’s behalf. Once in service, the vessel can

full crew supply and management service.

benefit from Andrew Weir’s tried and tested ISM

We have the ability to source fully qualified

and ISPS systems. These are fully computerised

officers and crew from around the world to

for ease of use and have enabled us to be

meet the requirements of owners or national

For more information, please contact:

certified to ISO 9001 and ISO 14001 standards.

and international regulations where necessary.

Andrew Weir Shipping Ltd

We have the experience to supervise

Andrew Weir enjoys considerable loyalty from

Dexter House, 2 Royal Mint Court

and assist with any aspect of the ongoing

sea staff and as such many of the officers and

London, EC3N 4XX

and periodic maintenance of the vessel. Our

crew are known to the company.

United Kingdom

technical personnel have significant experience

We are also able to provide a full insurance

in the smooth planning, arrangement and

and claims service from our in-house insurance

Fax: +44 (0) 207 481 4874

execution of scheduled docking repairs, for

department. We have established relationships



theBaltic September 2010

Tel: +44 (0) 207 575 6000

Commercial profiles

Parekh Marine Agencies Pvt. Ltd. P

arekh Group of Companies, wholly owned

and logistics industry. Today the Group is proud

This association with Multiport Network provides

by the Parekh Family, was founded in 1951

to be associated with some leading names in the

Parekh Group with an international outreach

international shipping and logistics field.

and an enhanced opportunity to serve a larger

to diversify the activities of the family from trad-

client base.

ing to shipping and related activities. Over the

With operations spread over 17 cities and

years, the Group has evolved into a multifaceted

all major and minor ports and ICDs of India,

In the current business scenario of rapidly

service provider actively involved in all aspects of

the Group has a truly national presence and

advancing India, the Parekh Group today is

shipping and logistics in India. With the changing

infrastructural set-up to effectively service any

well poised to take the tide at upswing, ready

face of the business environment in India since

client. Well-networked offices in all locations

to contribute to and participate in the progress.

1980, the Group has now emerged as an estab-

enable the Group to provide real-time information

lished integrated service provider to domestic

and value-added services to its customers.

as well as international shipping interests, with

Some of the services provided by Parekh Group

services ranging from handling a small LCL

are shipping agency, multimodal transportation,

parcel to a heavy over-dimensional single-piece

chartering & brokering, freight forwarding, off-

Parekh Marine Agencies Pvt. Ltd.

machinery or a full shipload of cargo.

shore services, CFS and warehousing, and

Wakefield House, 1st Floor

supply chain management.

Sprott Road, Ballard Estate

Over five decades of experience in the

Parekh Group

shipping field, gained through a mix of hands-

From 1 April 2008, the agency division of the

on approach combined with technological

Group, Parekh Marine Agencies Pvt. Ltd., has

Tel: +91 22 66344444



had the distinction of representing India as the

Fax: +91 22 22652003

professionals, has today brought the Group to a

Indian representative member of the prestigious


commendable stature within the Indian shipping

worldwide Multiport Ship Agencies Network.





Mumbai – 400001, India

AXSMarine arnessing the ‘bespoke’ power of the




Real-Time Position Lists, Tanker Registry,

internet to enable clients to refine, collate

Vessel Manager, Voyage Calculator, Cargo

Distance Tables, and our high-performance

and extract the precise information needed

Manager, Fixtures, Port Library, Distance

Voyage Calculator.

to be ahead of the game is what has driven

Table, Indices, and MS Outlook plug-ins, all

leading global software provider AXSMarine

drawing upon comprehensive and always up-to-


to develop some of the finest proprietary

date databases.

AXSOffshore is a fast and easy-to-use platform.




chartering software and database packages

Users enter their own private data realtime

available for the global shipowning, broking and


in virtually all fields. Data entry plug-ins are

chartering sectors.

AXS-Alphaliner combines the world-renowned

available with MS Outlook. Access Vessel

Speed and efficiency is crucial when it comes

databases and information of Alphaliner with the

Technical Databases & Commercial Histories,

to data assimilation, but as important is knowing

equally lauded data treating and data sorting


that the data you receive exactly fits your

technologies of AXSMarine. Users benefit from

Commercial Advice, Working Us, Market

requirements, when you need it.




Daily News, Weekly Newsletter, Market Reports,

Summary, Commitments, User-defined similar

That is where AXSMarine comes in. Its

Vessel Orderbook, Sales & Deliveries, Fixtures,

vessels and Positions and Fixtures.

services are designed to take advantage of what

Owner/Operator Details, Vessel Deployment,

is now referred to as ‘Web 2.0’, the second

Services & Rotations, and Top 100.


generation of internet-based communities which

AXSMarine now provides the required expertise

aim to facilitate collaboration and information


to shipping companies and shipbrokers to

sharing between users.

AXSS&P (Sale & Purchase) is a fast and easy-to-

correctly configure MS Outlook/Exchange with

use platform. Users enter their own private data

the correct common folder functionality and filing


realtime in virtually all fields. Data entry plug-ins

needs previously only made available in bespoke

tools and databases for shipping industry

are available with MS Outlook. Access Vessel

messaging systems. It has developed a state-of-

professionals. Its online tools are secure, fast

Technical Databases & Commercial Histories,

the-art address book far outweighing anything

and easy to use, and the databases they


available from MS.

source are always up to date. Because they

Commercial Advice, Working Us, Market

are internet-based, they are available from

Summary, Commitments and User-defined

any computer, anywhere; there is nothing to

similar vessels.

AXSMarine produces a complete set of interactive,





download or install.




In this exclusive service offering reserved for

MSN Messenger:

Our complete offer for dry bulk shipping

tanker brokers only, members benefits from

Yahoo! Messenger ID: axstanker

theBaltic September 2010


Commercial profiles

Innovation, commitment and performance O

ver the years, J. M. Baxi has developed a


interconnected offices in several ports in India

significant and diversified presence across

The complement of over 2,000 employees has

and in important commercial cities. These offices

the maritime logistics domains in India. With a

professionals drawn from various disciplines, with

provide an effective back-up system to principals

unique combination of expertise drawn from

experience in industry, shipping and commerce.

and clients in all spheres of activity. We have

a wealth of experience and a consistent track

These professionals include, among others,

offices in London, Dubai, Singapore and China.

record of performance, we have emerged to

master mariners, engineers and technocrats.

be India’s premier Agency in the business of

Cross-functional teams work on specialised


integrated logistics solutions and end-to-end



The company has been awarded the ISO 9001:

maritime support services.

solutions, pooling expertise and years of

2008 Certification by DNV (Det Norske Veritas)

experience on similar projects or by combining

for conforming to the Quality Management

resources to chart out new techniques.

System Standard for a range of shipping support

We are convinced that transformation through innovation, commitment and performance is the



key to gaining the cutting edge of leadership in


an increasingly complex logistics landscape. We


believe that satisfied customers are our future.

Today’s business dynamics dictates the need


Our vision is geared by a strategy of growth

for a sound and functionally viable infrastructure

We continue to play a pivotal role in providing

through customer satisfaction.

necessary to support diverse activities. J. M. Baxi

support services to the industry and have, in

has ensured that an elaborate infrastructure is in

the recent past, experienced both steady and

Maritime Support Services

place: specialised equipment, communication

accelerated growth in several of our business

J. M. Baxi is India’s largest and most professional

facilities, a national network of offices and


shipping and integrated logistics Agency. We


offer an array of services that are incomparable

We own a range of specialised equipment for

and unique on several counts in terms of

performing a variety of operations. In addition, we

customer focus, quality, safety, technology,

also have priority access to other standard and

innovation, and professional competence. We

specialised equipment, as and when required.

have grown in stature to provide a diverse range

To provide a comprehensive service to our

of services to a host of importers, exporters,

customers at their locations, we have the unique

For more information, please contact:

ship-owners and principals.

distinction of having a national network of 55


Port of Zeebrugge A


treated within the port area with all the necessary

sea coast, the port of Zeebrugge offers a

transhipment hub; in 2009 it handled 45 million

personalised value-added services. Moreover,

highly productive hub for a wide range of ship-

tonnes of cargo and 2.3 million TEU. The

frequent competitive and reliable logistics deliver

ping companies. Zeebrugge is one of the few

port serves many deep-sea destinations and is

and receive cargoes throughout Europe.

ports that can easily handle the larger container

connected to the Middle and Far East with 10

vessels due to substantial water depth and the

fixed weekly services.

s a major coastal port on the Belgian North





The port is always looking to provide its unique and specialised advantages and to offer

With these frequencies, the port is well

its export tools onto the European market.

With an array of both deep-sea and short-sea

geared to offer its customers daily shipment

International companies have chosen Zeebrugge

distribution capacities, a network of intermodal

possibilities. Zeebrugge is grateful to serve all

as their distribution hub and new agreements

services to reach the markets, and distribution

major shipping lines, and its trade has doubled

are constantly being realised. Furthermore, in

facilities within the port area, the site is a logistic

since 2003.

order to be able to faced the expected traffic

sophisticated terminal equipment.

turntable that meets the demands of a very diverse customer base.

It ranks No 1 on the world scale in car trade; in 2009, 1.3 million units were handled for the

In the short-sea trade, Zeebrugge is the

global automotive industry. Zeebrugge offers its

growth, new port areas are continuously being developed.

prime continental port serving the UK and Irish

network and expertise to the emerging markets

For more information, please visit:

markets in transhipment. Fourteen daily freight

and is also an important platform for receiving

services cover all major destinations on the UK

liquefied gas from the Middle East. The port is

east coast, but Scandinavia and the Baltic in the

thus a major gateway into Europe.

north, and Spain and Portugal in the south are also served with frequency.


All types of goods, general cargo, reefer trade, project cargoes amongst others, can be

theBaltic September 2010

Commercial profiles

When it matters most D

rug and alcohol use can create tough challenges, impacting on communities, the

workplace, families and individuals. Every day, our customers take on these challenges – often making difficult decisions that will affect the health and well-being of those in their care. Concateno provides customers with clear,

Concateno in numbers:

Concateno has three UKAS accredited

• 10 million tests conducted each year

laboratories, each dedicated to the analysis of

• 8,500 customers from across all industries,

a specific sample type – oral fluid (Abingdon,

healthcare and government bodies • 600 sample collection officers – a global network, from Adelaide to Aberdeen • 130 countries in which we have customers

timely and accurate information that they need

• 75 police forces rely on our services

to make these important decisions.

• Three world-class accredited laboratories

Oxfordshire), urine (Canary Wharf, London), and hair (Cardiff, Wales). These laboratories can also handle other sample types, such as blood, if required. Concateno maintains the highest levels of internationally recognised accreditation and

We do this by getting closer to the people we

No other company can provide Concateno’s

quality standards in the industry. We have

support, understanding their work and shaping

combination of skills, services, testing products

quality accreditations for laboratory analysis,

our services around their requirements.

and international reach. We have dedicated

office management, customer service systems

divisions specialising in the following areas:

and laboratory products, which are audited and

and testing capabilities – spanning laboratory,

• Child Protection

monitored independently.

point of care tests and all sample types – means

• Clinical Diagnostics

that we have both the ability and the flexibility

• Employee Services

to create a solution that is right for each client.

• Criminal Justice

An unparalleled breadth of advisory services

Concateno strongest


brings most

together experienced

Europe’s testing

• Healthcare • Maritime

To find out more, contact us.

organisations and over 60 years of collected

Concateno takes a pioneering role in pushing

expertise. We have a vision of how organisations

forward the science and technology of drug


needing drug and alcohol testing should be best

and alcohol testing. We are developing tests


served; through unbiased, scientifically driven

to detect newly emerging drugs of abuse,

Harbour Quay

and informed drug testing, delivered to the

improving the performance of our laboratory

100 Preston’s Road

highest standards.

instruments, extending the capabilities of point

London E14 9PH

of care testing, and are always in pursuit of faster


and more sensitive tests.

Tel: +44(0)20 7712 8000

Bupa International B

upa International has 39 years’ expertise

as well as a prompt turnaround of claims,

sports injuries. Bupa International also includes

in caring for the insurance needs of expats

with Bupa International processing over 15,000

cover for chronic diseases, such as diabetes and

claims a week.

asthma, beyond diagnosis to include treatment,

and their families around the globe. Covering over 800,000 people in 190 countries, Bupa

Bupa International offers tailored products

including drugs and consultations. As chronic

International is the largest international expatri-

for industry segments, for example, a maritime

conditions become more common across the

ate health insurer in the world, supplying quality

policy designed for crew employees who live

globe, the benefit of this is significant, from both

individual and group medical cover to people

and work aboard yachts, super yachts or ocean-

a financial perspective and the peace of mind

who are in their home country or living abroad

going vessels.

this extended cover provides to our customers.

part of the leading international health and care

Medical expertise

Industry Leader

group, Bupa.

You’ll find our Medical Centre an accessible,

In 2009, we were delighted to receive the

knowledgeable and comprehensive resource

Best International Private Medical Insurance

Expat understanding

for all health related questions and concerns.

Provider award at the UK’s Health Insurance

Bupa International understands that expats want

Our Medical Centre team will talk in your own

Awards, for the ninth time since 1999.

peace of mind about their health while abroad –

language and give you access to medical

and a health insurer they can rely on to provide

experts and local facilities around the globe.

who require international cover. The company is

a high quality service and comprehensive coverage. That is why it has developed a

Adding value

worldwide network of over 7,500 participating

Flexibility is also Bupa International’s hallmark,

hospitals and a 24-hour helpline, open 365

with customers enjoying benefits such as primary

days a year, which is manned by a team of

care cover, maternity cover, cover for home

For more information, please visit

experienced advisers who can communicate

nursing, routine and emergency dentistry, as

to you in 34 languages. This is all backed up

well as hospital treatment and accommodation,

or if you’re interested in international health

by direct settlement of bills where possible,

health checks, emergency road ambulance and

cover, please call +44 (0) 1273 322 091

theBaltic September 2010


Commercial profiles


130 years of maritime training


he Faculty of Technology and Maritime

students with the practical experience required

Management (Rauma, Finland) in Satakunta

for certificates at different levels of training.

University of Applied Sciences offers its students

The Faculty has great expectations for

both long traditions and modern education. This

the prospective postgraduate programmes.

year, the Faculty reaches its 130-year milestone;

Developing the quality of education based on the needs of the client has become standard

during this time, more than 4,000 students have completed their maritime training at the

repair; and marine radio communications.

practice. Research and knowledge transfer is

university. The celebrations take place on 22-24

Additionally, the following areas are covered:

carried out by the Faculty’s experts as active


protection of marine environment; chartering

project work. Maritime projects such as

Training in bachelor´s degree programmes,

and insurance policy; as well as crucial personal

OSKAR (knowledge assessment) have led to

marine engineer and sea captaincy is based on

skills such as organisation, project management

several sub-projects from shipping companies,

the regulations set by the STCW. Both external

and decision making. The training programme

administrations and the EU.

auditing and accordance with the IMO rules

consists of various courses that provide the

In addition to the degree programmes we

guarantee the quality of training, continuous

students with the opportunity to develop their

also organise a raft of further education courses,

development and progress. Our faculty is a

skills and knowledge in these fields. We also run

such as dynamic positioning training audited

member of IAMU, IMCA, BIMCO and NTS

the Maritime Resource Management courses

by The Nautical Institute, Marine Transportation


licensed by the Swedish Club.

(oil, chemical, gas), and ISPS (SSO, CSO and

Maritime training today is a hi-tech field

Rauma Maritime Management is well with



PFSO), and ECDIS to name just a few.

and also requires good social skills. Thus,



great emphasis is placed on several special

computer software. In our modern simulator

subject matters covering the following fields

centre, students have an opportunity to practice

of knowledge and skills: navigation; cargo

their navigation or engineering skills. During

handling and stowage; controlling the operation

their practical training, students get hands-on

Welcome to study in Rauma, Finland!

of the ship and care for persons on board;

experience of working life and duties on board

For more details visit our home page:

marine engineering; ship’s maintenance and

ships. This onboard training also provides the

Curaçao Towage Company W

ith a fleet of powerful tugs, the Curacao

that our clients receive the most effective and

with state-of-the art fire fighting, salvage, and

Towage Company provides superior tow-

professional service.

telecommunications equipment.

age and salvage services in the Caribbean,

As experts in the towage and salvage field,

We pride ourselves on the proven strength

Central America and the northern coastal

our employees are involved in every stage of

and ability of our tugs, the engines and the

regions of South America.

client service, offering continual functional and

machinery, which we have used effectively since

technical support.


Our services include ocean towage, harbour and coastal services, barge and dredger

Our experienced employees have degrees

The Curacao Towage Company has the

transportation, fire fighting assistance, port

from Dutch nautical schools and constantly

expertise to turn strength into power; the power

and terminal towage, crew management and

keep up to date on the latest technological

to tow thousands of vessels a year. We have

training, and technical maintenance, all based on

developments. Our close relationship with the

the ability to provide a range of professional,

the Lloyd’s Register Quality Standards.

Dutch Marine Division makes its expertise,

reliable and efficient services, not only in the

support and guidance readily available.

bustling Curacao harbour, but also throughout

Our mission statement is: “Through expertise, strength becomes power” and our vision is






the Caribbean, Central America and the northern coastal regions of South America.

to position Curacao Towage as a strong and

aspects of implementation and operation,

reliable towage Company, serving both the

including business requirements definition and

Our exceptional team members, who all

domestic and international sectors.

development of functional specifications for

possess nautical, technical and management

client approval. Additionally, we offer continual

skills, as well as extensive maritime knowledge,

online client support and contact.

make the Curacao Towage a strong and reliable

We aim to exceed the expectations of every client by offering outstanding customer service, increased flexibility, and greater value, thus

Our powerful tugboats are available 24 hours

optimising system functionality and improving

a day, able to provide immediate assistance

operational efficiency.


under any circumstances. Our ASD tugs can pull

For more information, please contact:

Our company is distinguished by its functional

at a 360º angle, making them exceptional guides

Tel: +599 9 461 1055

and technical expertise combined with hands-

for all kinds of ships manoeuvring in difficult

Fax: +599 9 461 2055

on, experienced employees, thereby ensuring

conditions. Our tugboats are all equipped



theBaltic September 2010

Commercial profiles

SSY Futures Ltd S

impson Spence and Young are founder

the Dry FFA market we now offer both cleared

FFA markets by educating new participants and

members of the FFA markets and the

and OTC screen dealing facilities for wet and

helping them to approach this fast moving and

Forward Freight Agreement Brokers Association

dry FFAs. Additionally our screen prices are

often daunting new trading environment. We are

(FFABA). We are represented on all the Baltic

available via Bloomberg on pages SSYF, SSYD

regular speakers at Baltic Exchange-run courses

panels. SSY Futures Ltd was established in

and SSYW as well as Reuters.

and other seminars, forums and conferences designed to educate new comers.

1997 to specialise in what is now a core area of

The FFA markets are cleared by LCH.

the companies operations. Since then we have

Clearnet, NOS CME and SGX. SSY are able to

We have recently added Iron Ore to our

consistently been at the cutting edge of this fast-

advise you on all aspects of clearing, including

broking services, with dedicated brokers in

developing market and our original client base

introducing you to the leading clearing brokers

London and Hong Kong, as well as SGX cleared

of freight market participants has expanded to

and assisting in the account opening process.

Iron Ore prices on our screen.

reflect the FFAs status as a complex derivative.






We provide expert advice for the full range

intelligence and research are to our clients and

Please feel free to contact us for more

of FFA market participants including; shipowner/

we provide this through our highly respected


operators, charterers, finance houses, banks

research Department. This is responsible for

SSY Futures Ltd

and hedge funds; in short anyone with freight

producing the company’s Monthly Shipping

Lloyds Chambers

exposure or a view to manage. As well as our

Review and numerous other publications. As

1 Portsoken Street

London office we have FFA broking services

well as these regular in-house assignments, we

London E1 8PH

through our Hong Kong offices.

also undertake bespoke consultancy projects as

Tel:+44 (0) 20 7977 7597

commissioned by specific clients.

Fax: +44 (0) 207 7488 1925

Screen trading is an integral part of our strategy. Having pioneered the use of screens in

Finally, SSY are committed to enhancing the


BI Norwegian School of Management Self-owned foundation

Accreditation and ranking

programmes. BI offers special study provision

BI Norwegian School of Management is a self-

BI obtained the status of ‘Specialized University

within insurance, commodity trading, banking

owned foundation whose purpose is to conduct

Institution’ in 2008, after NOKUT (the Norwegian

and finance and shipping.

education and research at a high international

Agency for Quality Assurance in Education)


gave its approval on the 27th February 2009. BI

International activities

has been EQUIS accredited since 1999 as one

Collaboration agreements with 148 universities

of only 110 business schools in the world. We

and business schools in 40 countries around


are one of the 100 most recognised business


Its professional strength and relevance makes

schools of a total of over 4,000 such colleges

students. Special MBA programme in China in

BI Norwegian School of Management a leading

in the world (one of 35 in Europe) in the “Top

collaboration with Fudan University School of

business college in Europe.

Business School Worldwide 2008” survey. We

Management. Chief owners of the ISM University

are amongst the 65 best suppliers of tailor-made

of Economics and Management in Lithuania


in-house programmes in the world and provide

with 2,000 students. Strategic collaboration with

BI takes quality and independence as the

the 117th best MBA programme in the world

Nanyang University of Technology in Singapore,

basis for its optimum research, education

(2008) according to the Financial Times.

ESCP/EAP European School of Management




economics and marketing.






in Paris, and University of California – Berkeley.

and intermediation for students, the business community, the public sector and positive social

Education and research

development. We are an independent business

BI has one of Norway’s leading academic

For more information, please contact:

school, which is future orientated, research

environments within the core areas of financial

Nydalsveien 37, 0484 Oslo

based, business focused, and international.

economics, strategic management, marketing,

Tel: +47 81 00 05 00

We conduct our work with quality, integrity,

leadership and organisation, and innovation


relevance and the ability to adapt and change.

and entrepreneurship. We offer two bachelor

BI creates effective and highly professional

programmes, a range of Master of Science

training by coordinating its resources across the

programmes, Executive MBA programmes and

organisation. Our managers and employees are

five doctoral programmes, extensive continuing

aware of ethical dilemmas and challenges, and

and further education, Internet studies, tailor-

take personal responsibility for handling these.

made in-house programmes, and management

theBaltic September 2010


Commercial profiles

LCH.Clearnet Ltd The world’s leading independent clearing house


The benefits to trading parties are clear:

market, legal and liquidity risk, we ensure that

asset classes than anyone else globally, both

• Significantly reduced counterparty risk

margin cover is set at appropriate levels.

exchange traded and over the counter (OTC).

• Increased trading opportunities

• Uniquely, we have over 10 years’ experience

• Ability to net-off long and short positions,

ur experience as a clearing house goes back over a century, and today we clear more

of clearing OTC • We are the No. 1 clearing house for FFAs, with over 80% of the cleared dry market

leading to:





Driving all our risk management activities is a dedicated team of over 50 risk managers, who share a wealth of experience and a convincing

• Reduced costs of trading

record of successfully managed defaults – both

• Enhanced liquidity

exchange-traded and OTC.

• We have a track-record of five defaults only clearing house to have managed an

Risk management is at the heart of what we do

OTC default

We have an unequalled reputation for reducing

successfully managed, and in fact we’re the

• Our standards of risk management are second to none

risk across a wide span of markets globally. We’re committed to setting and maintaining

• Our technologies are very, very intelligent

the very highest standards, across all our

• And we’re independent – so ‘conflict of

services and all the asset classes we clear.

interest’ issues don’t arise

Our robust risk management framework affords exceptional levels of protection to

Isabella Kurek-Smith

Why use a clearing house?

clearing members, as demonstrated by our

Director, Head of Energy & Freight Markets

A clearing house acts as a go-between when

successful handling of the Lehman Brothers


two parties trade. As guarantor of the trade, the

default well withinthe margin held, and without

Tel: +44 20 7426 7460

clearing house bears any monetary risk involved.

loss to any other members.



theBaltic September 2010


What’s on where A round-up of conferences, exhibitions and events in the shipping world

September 12-24


October 6-7


November 4

Anatomy of Shipping

Dry Bulk Shipping Conference 2010

Korea Ship Finance Forum

For those needing the big picture, whether

Brings together a distinguished panel of experts

through changing roles, entering the industry for

to analyse market drivers and assess demand

the first time or as a refresher

and supply fundamentals in the dry bulk

November 9

shipping sector

Marine Finance - Americas

September 16



New York November 16-17

Baltic Exchange/FFABA Global Freight October 11-12

The freight derivatives industry’s key gathering

Managing Carbon Emissions and GHGs


in Shipping

With a spotlight on key bank ship finance issues

this programme examines the impact of new

banking regulations on bank lending, whether

September 16

Rio de Janeiro



Derivatives Forum

International Ship Finance &

Asian finance is a good thing or a bad thing and

Latin America Ship & Offshore Finance Forum

October 17-19


Coaltrans World Coal Conference

prospects for bank ship finance in 2011.

Europe’s leading coal industry gathering September 20-24

November 23-24

Stamford October 26-28

Seatrade Middle East Maritime

This event is designed for senior supply chain

Including ‘Middle East Money & Ships’

managers and professionals. Delegates will

obtain practical information on markets,

September 24-25



IBIA Convention

Chemical Supply Chain

operations and regulatory developments that


India Shipping Summit

October 27-29

A forum to address the most topical issues


affecting India’s shipping industry


affect the door to door chemical supply chain November 22-25


Practical Dry Cargo Chartering September 28-29


November 1-2


Four-day hands-on training course run by the

Marine Money Asia

Freight Derivatives and Shipping Risk

Baltic Exchange and Cambridge Academy


Managing freight, bunker, interest and October 6 Greek Shipping Summit


counterparty risk November 3-4


Advanced Freight Modelling and Trading Trading strategies for FFA players

theBaltic June 2010

Managing your counterparty risk NOS Clearing is the specialized clearing house for the freight industry. We are providing flexible solutions and products, first-class customer service and quick responses to customer and market needs. Clearing at NOS eliminates counterparty risk in derivatives trading and ensures you prompt and full payment of all amounts due under all contracts. NOS is established by the industry for the industry. Our innovative service, brought to you by our customer service teams and IT systems, will support, simplify and improve risk management functions, book keeping and back office activities. Offering a full range of derivatives contracts in all market segments, NOS offers both standardized and tailor-made futures and options for the dry and tanker market. These products create unique possibilities to effectively manage risk, through trading on exchanges as well as through OTC brokers. You may access our clearing services via a Direct Membership or via the global General Clearing Members.

Contact us today at: Tel: +47 23 25 93 01 Email:

The Baltic - Autumn 2010  
The Baltic - Autumn 2010  

The Baltic is the quarterly journal of the Baltic Exchange in London, the world's leading shipbroking representative body. The Baltic Exchan...