Kidnap and ransom
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Although figures for piracy may have declined this year, complacency is not an option as many observers have warned. Although November saw the release of the remaining crew members from the Gemini, others remain in captivity, amid concerns that governments might seek to ban the payment of ransoms which has effectively been the only means of gaining the release of crews held captive in Somalia. Investment in Somalia has been much on the agenda this year as companies like Shell have been involved in programmes aimed at providing a viable alternative to piracy for Somaliaâ€™s population and rejuvenating industries along the stretch of coastline which the pirates are currently using to detain ships and their crews. Along the west coast of Africa, the business model has been different, with ships being typically detained for very much shorter periods, and generally only to remove the cargo and then release the vessel and its crew without payment of a ransom. While armed guards on board ships have gained a much greater degree of acceptance during the last year, the quality of services provided varies widely, and the advent of a new ISO standard to regulate the maritime security industry, not to mention individual accreditation systems being brought in by many flag states, will mean that only the most effective companies, who can draw on high quality personnel and offer extensive back up services are likely to make the grade. Most expect a shake out of firms that cannot meet the requirements, but at the end of the day, the shipping industry will get what it is prepared to pay for.
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Being prepared to invest in crews and equipment continues to be vitally important in ensuring that safety and security measures on ships are met and while the expenditure needed, for example in having CO2 detectors on board ships to protect against enclosed space accidents, may be minimal, some owners and operators are still reluctant to put their hands in their pockets. In spite of tough economic conditions for the industry this year, let us hope that the situation improves going forward.
Maritime Security International
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Contents News In brief...
Ransom payments, the latest company moves and new standards and regulations
Comment Roll of the dice
Knowing the odds of shipping risk was the topic chosen by Lloydâ€™s Register chief executive Richard Sadler when delivering the annual Donaldson Lecture to the Lloydâ€™s Market Association
Piracy Facing the facts
More sharing of information and communication between stakeholders is key to combating piracy
Security organisations Relationship building
Shipowners and charterers are benefitting from forging bonds with PMSCs however pirates may increase use of AIS, according to PVI Raising the standards
Accreditation and new regulation are set to be stepped up over the next year, according to Jonathan Pethen at Securewest International Exploding the myths
Dealing with Second World War bombs is just one area of work for emergency ordnance disposal group Ramora
Legal Fighting talk
Floating armouries and the prosecution of pirates are two current hot topics
Kidnap and Ransom Under cover
Providing kidnap and ransom cover is a trailblazer for a P&I Club. Sandra Speares talks to Robert Drummond of the Standard Club about its new product
Insurance Total wipeout
Constructive total loss and increased value policies have been a matter for much discussion, not least in the light of the Fairway judgment, while war risk policies could be affected by the time ships are being held in captivity following piracy incidents
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Contents Interview Enclosed spaces: bringing the dangers into the open
The death of five crew members on Varun Shipping Company’s LPG carrier Maharshi Krishnatreya on 5 November has highlighted the on-going concern over deaths in enclosed spaces. Sandra Speares talks to Michael Lloyd, technical advisor to Mines Rescue Marine, about how to tackle the problem
Seafarers Under pressure
As seafarers face the continued trauma of piracy attacks – such as the seven crew members from the Asphalt Venture who have been in captivity for over two years despite a ransom having been paid – what effect does it have on their lives? Setting new standards for seafarers
With a new initiative to ensure the health needs of seafarers in the world’s maritime sector are better met, the International Maritime Health Association is aiming for high health standards for all
Regulation Tools for the trade
A raft of new standards and regulations aim to improve the working lives of seafarers
Piracy deterrents Preventative measures
Effective deterrents against piracy come in many forms. Here, we look at some recent newcomers to the market that offer innovative solutions to the problem of preventing pirates boarding a vessel
Port Security Clearing the confusion
A range of security issues require clarification
Smuggling Crackdown on crime
Illicit drug and human trafficking continues to be a problem for the shipping industry, but attempts are being made to meet the challenges
Offshore Risk reduction
BP has agreed to plead guilty to 11 felony counts following the Deepwater Horizon disaster. Plus the latest partnerships and rig news
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Police co-operation Enhancing international police co-operation has been the focus of an Interpol training session on improving counter-terrorism capabilities across the Horn of Africa, which took place in Uganda. Organised by Interpol’s Capacity Building and Training Directorate, it brought together 20 law enforcement officials from counter-terrorism and immigration departments from eight countries: Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Tanzania and Uganda. The training aimed to equip the participants with the knowledge and skills necessary to combat terrorism in the region, particularly through instruction on Interpol’s tools and services available via the secure global communications network. The course was opened by the minister of state for internal affairs in Uganda, Ambassador James Baba, who underlined the role of Interpol in the fight against transnational crime. “In this complex world, where transnational crime networks continue to reinvent and adapt themselves, the Interpol community – and that includes all of us here today – must be always a step ahead and ready to face head-on any emerging security threats,” said Minister Baba.
In brief... Ransom payments, the latest company moves and new standards and regulations Ransom demands Ransom payments, and more specifically the issue of whether an attempt to ban them might be introduced, continue to cause concern. Speaking at seafaring charity Apostleship of the Sea’s international congress in the Vatican, James Gosling, of London law firm Holman Fenwick Willan, said: “What people tend to forget is that the majority of seafarers in this world come from the so-called Third World as opposed to the First World. “The thing that has truly disturbed me is the increasing move from governments in the First World to try to ban ransom payments and there are current moves afoot in the US and the UK to do just this. “The approach of these countries is hypocritical in circumstances where they will turn a blind eye to payment for executives of large corporations who are kidnapped and where ransoms are paid.
“Most people’s perception is that payment of a ransom is illegal and immoral. As a matter of English law, it is perfectly legal and, indeed, we have had a recent Court of Appeal decision confirming that. It is also legal as a matter of American law, and most countries allow it.” It was often difficult to tell whether a pirate was a criminal or a terrorist, he pointed out. “As a matter of law, it is legal to pay a pirate who is a criminal, but it is not legal to pay ransom to a terrorist.” Gosling said that since 2011 there has been a decrease in the highjacking of ships, due to factors such as a reporting system to the naval forces; the publication of Best Management Practice, which sets out the normal precautions on selfpreservation that a vessel can take; and private armed guards. However, he added, this was no reason to become complacent about the issue.
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Fire-fighting move Wilhelmsen Technical Solutions (WTS) has acquired Novenco Fire Fighting (NFF) in a move that will strengthen its portfolio of marine and offshore fire-fighting products and services. According to Petter Traaholt, president of Wilhelmsen Technical Solutions: “The acquisition of this niche player in water mist technology further strengthens our safety portfolio, taking us an important step closer to becoming the world’s leading fire-fighting provider in the maritime and offshore industries. “Novenco Fire Fighting’s proven branded XFlow technology and certified product range is a natural fit for us. Its strong technical and development knowledge, combined with WTS’ expertise will give a valuable lift to our marine, offshore, cruise and yacht capabilities.” Denmark-based NFF has been acquired from a private equity fund managed by Dania Capital. NFF exports over 90% of its products to customers in more than 26 countries.
News The company’s main markets are Asia, followed by Europe and the US. This customer portfolio will expand WTS’ customer base for safety applications in cruise and yachts, particularly. With employees based in Denmark, Italy, China and Korea, NFF’s international sales and distribution network will complement WTS’ global reach very well. “This bolt-on acquisition is a perfect fit for us. We anticipate many beneficial opportunities with this acquisition and also expect to further interest offshore customers with our extended fire safety capabilities,” added Traaholt. Water Mist is an extremely effective fire fighting medium and consequently is becoming a preferred solution for many applications in the maritime market. In the marine and offshore segments, water mist systems are chosen for their high flexibility in enclosed spaces as well as their limited impact on the structure and components. The system is nonhazardous to personnel, environmentally friendly and has a short deployment lead time.
Hard-hitting DVD UK P&I Club has launched a new DVD that places a specific focus on the Bow Tie concept – a comprehensive risk assessment initiative which helps members identify and prioritise risk across their whole fleets. According to the Club’s loss prevention director, Karl Lumbers, the No room for risk DVD will be a very effective form of communication when conveying the Club’s risk prevention messages to ships’ crews and managers, opening up the risk management process to everyone. “With its graphic images, including footage filmed at London Zoo, it makes for compelling viewing while delivering information regarding key elements of our Bow Tie concept. By employing well-known TV presenter and journalist Chris Rogers, it gets away from the classroom-style lecturing by adopting a style consistent with a TV documentary,” he says. Officers and crew are encouraged to contribute ideas on both hazards and the corresponding controls. Lumbers says: “It is essential that seafarers participate in this programme so that their practical experience and input can be heard and acted upon. “No matter how inexperienced he or she may be, every member of the crew has a role to play. Simply walking around a ship with open eyes, a crew member will see hazards, some serious, some minor. All need reporting to the relevant officer for action.
A frayed rope on the gangway, a broken safety guard on a piece of machinery, oil leaks and spillages, a corroded mounting on a crane or davit, missing pieces of safety equipment, damage to hatchcover seals, the list is endless.” The analysis takes into consideration the risk that conventional or established precautions and controls associated with maritime operations can fail. It may be as a result of blatant failures to follow procedures or it can be the occurrence of an accident that had just been waiting to happen. Usually though, it is just an unfortunate incident that might have been foreseen but wasn’t. Many of the claims that inform this work arose from such failures. The Club’s methodology draws on the analysis of 100,000 claims over the past 23 years. It has identified seven primary risk hazards; 76 common threats, which if not contained could cause an incident; and 450 controls that need to be in place and effective if the threats are to be contained. A consistent and inclusive approach to risk encourages sustained and measured loss prevention activity over the longer term, says Lumbers. Sharing information across the fleet and operational departments enhances credibility, co-operation and effectivenes: “The UK Club risk management project offers strategic guidance to owners and operators on tackling the root cause of expensive claims. Using quantified real-life case examples owners/ operators are able to invest proportionately in
risk management and loss prevention activity. It also provides evidence that may be needed when explaining to charterers, investigative authorities and even courts exactly what happened. Having sound evidence prior to any investigation is a plus-point from the outset,” he concluded.
EU’s new safety standard The European Commission outlined a new safety standard for the oil and gas industry at the end of October. Energy Commissioner Günther Oettinger said: “Today, most oil and gas in Europe is produced offshore, often in harsh geographical and geological conditions. Given our growing energy demand, we will need all the oil and gas from beneath our seas. But we need to prevent accidents like Deepwater Horizon in the Gulf of Mexico from happening. Securing best industry practices in all our offshore operations is an undisputable must.” The new draft regulation sets clear rules that cover the whole lifecycle of all exploration and production activities, from design to the final removal of an oil or gas installation. Under the control of the national regulatory authorities, European industry will have to assess and further improve safety standards for offshore operations on a regular basis. This new approach will lead to a European risk assessment that upgrades continuously by taking into account new technology, new know-how and new risks.
UK backs shipping in the new year The UK government is planning to produce a detailed transport policy document in the new year – and the maritime sector will feature strongly in it, shipping minister Stephen Hammond has assured seafarers union Nautilus. Officials from the Union met the minister for the first time since he was appointed in a government re-shuffle in September and held discussions on issues including seafarer employment and training, piracy and the Maritime Labour Convention. General secretary Mark Dickinson described the meeting as “positive and constructive” and welcomed the minister’s offer of further detailed talks on key policy issues. Hammond told Nautilus that ministers are working
on a new government transport strategy paper, likely to be published in the first half of 2013. The minister said he would seek to ensure that the policy document recognises the huge contribution made by the maritime sector to the UK economy, as well as the importance of skilled and experienced seafarers. “It is very clear that shipping is crucial for the UK and I don’t accept that it is in any way a sunset industry,” Hammond added. Issues likely to be addressed in the paper include employment and training and the ways in which shipping interacts with other modes of transport. Dickinson urged the minister to ensure that the current Support for Maritime Training scheme is safeguarded and also to examine new initiatives for increasing the number of British seafarers being trained and employed on UK-registered ships or ships in the UK tonnage tax scheme.
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IMO warns on websites The International Maritime Bureau (IMB) is warning against fraudulent cargo tracking websites. Sites have been created and improved over the years to add legitimacy for fraudsters to entrap their would-be victims, the bureau said. This is particularly true for containerised shipments, where convincing tracking websites highlight the degree of sophistication employed. Two recent examples investigated by the bureau illustrate how such online confirmations – while appearing convincing – cannot be always taken on face value and relied upon. These also further underline the need for independent verification of credit complying documents, particularly the bill of lading. The first example covers what appears to be a valuable containerised shipment of copper cathodes from South America to the Far East. The Bs/L presented appeared on the face of it to be in order. The carrier’s website further attested that the cargoes had been loaded as per the two Bs/L. IMB’s investigations on the other hand contradicted what the website stated. The physical carrier had quickly confirmed to the Bureau that the vessel was trading elsewhere. While the vessel had bunkered at the discharge port, no cargo operations had been performed in respect of this transaction. A number of mistakes on the fake carrier website were also present with regards to the vessel and further highlights the potential problem with reliance on such resources for cargo confirmation. The second example relates to the purported shipment of a spurious urea cargo from Malaysia to Vietnam. On this occasion, the carrier’s website bore a remarkable resemblance to the legitimate website of one of the world’s largest liner companies. In fact, the website pages had been replicated and presented in such a manner that at first glance, many users might unwittingly believe that they are dealing with the legitimate carrier’s website. Corporate logos resembling those of the liner company were also present throughout the web pages. The liner company subsequently had the offending website taken down. By this time, however, the damage had already been done and the unsuspecting victim had already paid out a considerable amount to those behind the fraudulent website.
A degree of caution must be exercised by banks and others when seeking online confirmation for certain carrier websites, IMB says Unless the carrier is well known and the origins of the website verified, total reliance on website confirmations should be avoided.
As Maritime Director of the Security Association for the Maritime Industry (SAMI), the primary focus for Steven Jones is to bring security techniques and effective management to the attention of crews of merchant vessels, office personnel and ship operators.
Like legitimate businesses, fraudsters have been quick to appreciate the value of a well presented website in furthering their “business”.
“Whether fighting pirates, stowaways or countering terrorism, true security begins when the master and crew work within a system they respect, understand and appreciate,” he said.
Gemini crew freed Four South Korean crew held hostage by Somali pirates for 19 months have finally been freed, Seoul’s foreign ministry said in a statement following agreement between Glory Ship Management and the pirates. The 30,000 dwt tanker Gemini was carrying 28,000 tonnes of crude palm oil from Indonesia to Kenya when it was hijacked in April last year. The pirates freed the vessel and released all 21 non-Korean crew members seven months later, but continued to keep the four South Koreans captive, calling for the release of five pirates captured by the South Korean navy.
Maritime security guide The Nautical Institute has launched Maritime Security, which aims to provide a comprehensive and practical guide to making vessels truly secure and create a real security culture that works both onboard and ashore. Since the International Ship and Port Facility Security (ISPS) Code came into force in 2004, there have been significant developments in the training, information and products and services available to masters and to company and ship security officers. Security has become part of life on board ship. During the same time, the number and sophistication of the threats to security have also increased. Author Steven Jones explained that there is no room for complacency. Those responsible for vessel crews, cargoes and the ships themselves must continue to develop a security management system that actually works on board. “People are the key to security and this new guide looks to develop the ways and means of creating a security management system which has the human element at its core. It explores not simply the rules and lists of requirements, but also the implications of failure and the steps to developing successful maritime security techniques.”
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The book examines the threats to maritime trade, and to specific ship types, before discussing in detail how the ISPS Code came into being and its underpinning principles and requirements. Subsequent chapters focus on the practicalities of security planning, shipboard procedures and equipment, and how to make security work – including the use of armed guards. Maritime Security – a practical guide is available from The Nautical Institute, price: £40; ISBN: 978 1 906915 45 2 Visit: www.nautinst.org/pubs
Cape Verde licence In a move designed to thwart the escalating piracy in the Gulf of Guinea, the government of Cape Verde has granted a licence to Cape Verde Maritime Security Services (CVMSS) allowing the company exclusive rights to vet Private Maritime Security Companies (PMSCs) who want to use the island as a base for embarking and disembarking armed security teams. UK-headquartered SeaMarshals is the first company to be granted a permit to use Cape Verde as its base for security operations in the West Africa region. On behalf of the Cape Verde government, CVMSS will undertake checks to ensure PMSCs comply with agreed minimum standards in accordance with both local and international laws and regulations. These standards will include training, support and insurance levels.
EU anti piracy software An EU Joint Research Centre-developed prototype software identifying ship positions in real-time will be tested by Kenya in an effort by the EU to improve countries’ capacity building for countering piracy in the region. Financed by the European Commission’s Directorate General Development and Co-operation
– EuropeAid, the software system is a result of a two-year study carried out by JRC researchers. The tool, known as Piracy, Maritime Awareness and Risks (PMAR) system, was presented at an EU workshop held in Mombasa, Kenya. The PMAR system will be hosted by the Kenyan Maritime Authority for a trial. The project that led to its development, studied technologies intended to build up maritime awareness and was tailored for use by authorities in regions affected by piracy. The state-of-the-art software integrates data from vessel reporting and earth observation systems into one single maritime picture, taking into account a wide array of available data sources. The maritime picture indicates the estimated current ship positions in real-time, with an update every 15 minutes. Historic piracy risk occurrence and ship traffic density maps are also produced.
Call to break up criminal groups “If we are to counter piracy, we must breakup the criminal groups, identify and isolate the ringleaders and financiers and disrupt their cash shipments through co-ordinated police and border work,” UN Office on Drugs and Crime (UNODC) Executive Director, Yury Fedotov said while visiting East African nations. Fedotov visited the Seychelles, Kenya, Somalia and Mauritius to discuss counter-piracy efforts
and organised crime. UNODC’s role is to support the criminal justice chain. “We also recognise that there is no piracy without pirates. As a result, downstream, we need strong advocacy from community leaders and others in Somalia to prevent young men hijacking ships,” said Fedotov in a statement at the close of his trip. For the past four years, UNODC has operated a $55m dollar counter-piracy programme, in line with human rights standards, in East Africa, which has sought region-wide co-operation in holding fair trials and providing safe, secure imprisonment of pirates, particularly in Somalia.
GAC launches PirateFence
system failure and buys more time for the crew to counter any threat. The system uses Razor Ribbon razor wire with a galvanized steel core and sharp razor bladelike edges, but the company says its easy-touse “roll” design ensures that the risk of crew injury is virtually eliminated during installation or transportation of the cylinder units. The entire PirateFence system is purpose-designed to withstand harsh salt-water conditions. GAC Maritime Security, powered by AKE, is a partnership between global shipping, logistics and services provider GAC Group and AKE Group.
GAC Maritime Security has entered into a strategic partnership with Mobile Defense Systems to provide PirateFence antigrapple razor wire to protect vessels from attacks by sea criminals. This marks the latest addition to GAC Maritime Security’s expanding portfolio of protective solutions for vessel owners and operators seeking to put in place a non-lethal, multi-layered risk mitigation system.
Christer Sjödoff, group vice president, GAC Solutions, says: “Razor wire or high-grade concertina wire is recommended as a key defensive solution by the IMO’s ‘Best Management Practices’ guidelines for defending against sea crime. It is an important vessel-hardening tool, providing a strong deterrent for potential attackers and anyone trying to breach the vessel perimeter. This is an important partnership for GAC Maritime Security and a valuable addition to the range of protective solutions that we offer.”
PirateFence is a modular-based perimeter protection system with an innovative anti-climb and grapple-resistant component. The coil is applied in sections to avoid any attempts made by attackers to peel the system away in its entirety – a solution to a common problem with many existing systems. It fortifies a vessel against a
GAC Maritime Security recently published a new position paper entitled “Sea crime: replacing the fear’. The paper called for owners and operators to adopt a more systematic, multi-layered approach to sea defence, instead of an over-reliance on armed guarding services as the industry standard for vessel protection.
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Corporate viewpoint POLICY & FORUMS 10
A new route in travel management
Specialising in the maritime and offshore industry, G Travel offers a reliable, cost-effective service that gives customers confidence
G Travel Regent House Hubert Road Brentwood Essex CM14 4JE Tel: 01277897710/11 E-mail: email@example.com or Jason.firstname.lastname@example.org Website: www.gtravel.no
he maritime and offshore industry has certainly had a turbulent time over the past few years. It has forced many maritime organisations to look again at the way they operate their business in terms of costs, resources and use of technology. A key expenditure area for many of our clients is travel. The expense of moving their crew and shore-based staffed across the globe, in a timesensitive environment, is of paramount importance and needs to be controlled. Travel policies, online booking tools, hotel, car rental and frequent flyer programmes all help organisations to meet their travel budgets. But the competency of the travel agency is key in bringing all these elements together. G Travel is an innovative and modern travel agency that specialises in maritime and offshore travel. We provide a dedicated travel service for many types of clients operating within the marine and oil/gas sectors, such as ship-owning, shipmanagement and offshore drilling companies, as well as marine and offshore support businesses, including maritime security organisations. We also specialise in serving maritime security businesses, organising the travel for their personnel boarding vessels on transit in the Gulf of Aden, Indian Ocean, West Africa and other areas where the threat of piracy is present. At G Travel, we offer a reliable, cost-effective service that allows customers to focus on their key organisational needs and makes them feel confident that we are taking care of their company’s travel requirements. Our clients tell us that we have achieved promises that we made in service, cost and relationship and their feedback gives us the impetus to continue to drive our business forward, delivering greater value and higher levels of service. Each and every customer is different and we recognise that fact. Our people take the time to thoroughly understand the client’s needs, listen to them carefully and then offer a service that meets their business objectives. As an affiliate SAMI member, we have acquired an excellent reputation among many of the UK and international
maritime security organisations and continue to support this important sector. Our employees consist of experienced travel consultants with extensive knowledge from the airline and travel
“Each and every customer is different and we recognise that. Our people take the time to thoroughly understand the client’s needs”
industry, familiar in handling complex and time-sensitive operations. We are a fast-growing company and are constantly monitoring and keeping our focus on the service quality in all areas of our operations. Our network consists of offices in Norway, UK, Philippines, China, Singapore and Brazil with partner offices in Greece and United Arab Emirates. We are also planning further expansions
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throughout 2013/2014 with offices in strategically important cities. The key to our success and growth is that we take the time to thoroughly understand our clients’ business and their travel-related challenges. We then provide a tailor-made service that helps our customers achieve a cost effective travel management programme. Services • 24 hour service, seven days a week, giving our customers the security they need at all times. • Dedicated and experienced personnel • The best marine and offshore fares through our global offices and partners. • Seat finder team and “best buy” policy secures seats at the lowest available rate. • Visa service taking care of all immigrations requirements. • Key account management – building a close relationship • Service level agreement – monitoring and maintaining a high service level. At G Travel, we are always trying to raise our standards and set new goals in customer service. Let us help your business find a new way.
Comment Lloyd’s Register chief executive, Richard Sadler
been allowed to deteriorate through a lack of vision, investment and support from successive UK governments. That neglect has slowly eroded the capability of our Royal Navy, our marine cluster and the related supply chain; it has resulted in a weakening of the London finance, legal and insurance communities in its support of the global industry increasingly controlled outside the UK. “As an island nation, we will always depend on a strong marine capability,” Sadler said. “As such, the risk of an eroding marine capability is far greater than its shrinking contribution to GDP. What we are gambling on is the prosperity of our children and their children. With so much at stake, it is clearly time to improve the odds for them. “It may not be the government’s job to pick winners, but it is their job to create an environment where their citizens can prosper. Governing an island nation without marine transport infrastructure to ensure basic energy and food security is akin to spinning the wheel, closing your eyes and hoping for the best.”
Roll of the dice Knowing the odds of shipping risk was the topic chosen by Lloyd’s Register chief executive Richard Sadler when delivering the annual Donaldson Lecture to the Lloyd’s Market Association
ince hearing Clarkson analyst Martin Stopford’s assertion that shipping is the biggest poker game in the world, “I increasingly believe that working out the odds of ensuring consistent prosperity is so difficult that it is more like the game of roulette,” Lloyd’s Register chief executive Richard Sadler told the Lloyd’s Market Association in October.
good? Who knows? But if the shipowners of today didn’t possess an incredible collective appetite for a big gamble, the whole world would be different. “In roulette, the odds are designed so that, over time immemorial, the punters will always lose 5.28 cents of every dollar they wager. Let’s hope shipping proves a better bet,” he said.
“In their casino, shipowners bet on deploying a single dry fleet, a mixed wet and dry fleet, big ships, small ones, new ships or second-hand ones. Range choices are similar, not least in the uncertainty of outcomes, and the return is as varied.
The odds of safe passage for the public transport community have improved over the years, Sadler continued, and commercial shipping is showing a similar trend, with a high of 1,370 fatalities in 2006 dropping to just 42 last year, according to the IMO. There is, however no room for complacency.
“For us, the market is the croupier and the ports and commodities are the slots. Will your bet come
While the maritime industry is a vital, albeit undervalued sector, it is an industry “that has
Piracy picture Considering pirate attacks off the African coast, Sadler said: “The number of piracy attacks may have abated recently, but what if the maritime piracy off coastal Africa is more than the actions of a few desperate men looking to get rich by extracting ransom? What if it is the start of a trend that will grow and become more sophisticated as essential products, food and water become scarce? “As the value of vital commodities rise, trading ships make tempting targets. At $150 a barrel, a VLCC’s $300m cargo is very, very attractive. We’ve already seen that unfold. In that environment, what should be the primary role of our Royal Navy? Shouldn’t it shift from a military role of sovereign protection to the strategic defence of the critical supply routes? What price then will we pay for allowing its capability to erode to the point that it can no longer protect our essential supply routes?” Turning to the regulatory picture, Sadler asked whether “our current maritime regulations adequately control the financial and insurance risks of operation”. “Prescriptive regulation was in place when the Deepwater Horizon rig met its demise in the Gulf of Mexico. If it had been operating in the North Sea, it would have been subject to risk-based regulation.
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Comment operations and its impact on risk is critical. While proper training and experience are the keys to producing reliable mariners, this also applies to the underwriters, loss-control professionals and surveyors who assume and manage the risks associated with international trade,” Sadler continued. “Clearly, the ability to assess if a ship is welloperated requires a different skillset to assessing if it is well designed and maintained. “The qualifications of surveyors and regulators are often discussed. But, if the influence of the human element on safe operations is going to be fully understood, it will require our entire industry to acquire a new skillset.”
“Risk-based regulation in the North Sea puts the responsibility on the operator to identify the risks, mitigate them, get an independent party to ensure that the solution is appropriate and then present the safety case to the authorities. “As our assets get bigger, as we enter more hostile environments to search for new stores of energy, as we use more advanced materials and systems, the technology challenges increase. The pace of development increases in line with the speed of implementation. In our modern world, we simply do not have the luxury of time-based testing and the incremental change regimes upon which prescriptive regulation depends.” Goal-based regulation does not specify how to achieve compliance. It sets goals that allow alternative ways to comply, he said. “There are acknowledged shortcomings of prescriptive regulation. The parties applying such regulations are only required to carry out the mandated actions to discharge their legal responsibilities. If these actions do not prevent an accident, it is the regulations and regulators who are seen to be deficient, not the parties applying them, who, by the way, the law holds clearly responsible. “Also, prescriptive regulation encodes the best engineering practices at the time they were written and rapidly become deficient when best practice changes, for example, with evolving technology. In fact, it is likely that prescriptive regulation eventually prevents industry from adopting new best practices,” he said. However, he told the audience, “the trend toward a risk-based approach does raise questions about
how insurers will assess risk if the methods by which goals are achieved vary according to designer and operator”. He expressed concern that insurers and financiers tended to focus on asset value and type when they assess whether to accept any risk.
Human touch Turning to the human element, Sadler said that “It is widely accepted that the cause of most accidents is human error, yet the focus of most regulation is squarely on the asset. “If you look at the original Lloyd’s Register of Ships from 1760, there are two columns that no longer appear: one is the detail of the fitted guns and cannons, and the other is the name of the captain. The captain was recorded when ships were assessed for risk in the days of Edward Lloyd’s original coffee shop because the right captain with the right experience went a long way to mitigating the risks of a long voyage. How have we lost sight of that?” he asked. Statistics collated by International Union of Marine Insurance show that human failure is a leading cause of lost lives, vessels and the valuable cargoes they carry, Sadler said. IUMI’s Diedre Littlefield said last year that it was committed to improving maritime safety by improving the understanding of the role people play in safe operations, but in spite of this “most regulation continues to focus on assets and their control systems”. Understanding the human element in shipping
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Crew selection and training, maintenance in terminals and on board ships – as well as basic operations such as loading and discharge – can be positively or negatively affected by economic conditions, Sadler said. “All marine professionals must be aware of how this potentially impacts the risks on their businesses. “Today’s modern ship is a highly complex piece of machinery, largely controlled by computer programmes and systems, from the bridge to the engine room. Making the time for thorough training in these new technologies is vital for all parties, onshore and off.” Language is another big issue when crews from different countries come together with little or no common language skills. “I am convinced that we are not paying enough attention to the human element. Standardising the training and qualifications of seafarer-trading establishments, ensuring a higher level of competency for operating procedures, maintenance and the management of shipboard staff will go a long way to minimising these risks.” Properly assessing risk can be as simple as knowing enough to realise how big a gamble is being taken, he said. “At its core, it can be as simple as knowing the odds.” Shipping is no place for careless gamblers, Sadler added. “The risks are too high. The playing environment changes every day, while political and social demands shift with the tides.” It is the seafarer who takes the most risk in shipping, he stressed. “We all have an obligation to make sure we never gamble with the lives of our seafarers. If we take commercial or regulatory risks that endanger seafarers’ lives, we are letting ourselves, our industry and our society down,” he concluded.
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the geographic spread of their attacks grew, creating a scenario of low likelihood, but high-impact attacks. Grahaeme Henderson, vice president for Shipping at Shell International Trading and Shipping Company, also pressed for strong communications between navies, improving co-ordination between coastguard and fisheries, and that post-incident reviews be conducted, along with analysing and contextualising data. “Integrated knowledge” was key for “integrated action” and that ultimately good data would result in good decision-making, he told the conference. Shell is involved in capacity building projects in Somalia, along with Maersk, BP and the Japanese government, aimed at providing alternative employment in, for example, the fishing industry. By developing local industry, the aim is to deprive pirates of the coastal strip that they are using to detain vessels and their crews. The number of ships signalling attacks by Somali pirates has fallen this year to its lowest since 2009, a report from IMB announced in October, but IMB warns seafarers to remain vigilant in the high-risk waters around Somalia, the Gulf of Aden and the Red Sea. Meanwhile, violent attacks and hijackings are spreading in the Gulf of Guinea.
Facing the facts More sharing of information and communication between stakeholders is key to combating piracy
hile the instances of successful pirate attacks may have fallen this year, there is a clear need for greater communication between owners, operators, naval forces, flag states and coastguards. One concern in relation to piracy incidents is that attacks go unreported. Pottengal Mukundan, director of the International Maritime Bureau told the Combating Piracy conference organised by Hanson Wade in October that it was difficult for pressure to be applied to owners who might fear that action would be taken against other vessels in their fleet. He also pointed to the jurisdiction issue in the Red Sea, with many islands and dense fishing fleets making it difficult to make a judgement as to whether ships were dealing with fishermen or pirates. “Sharing information is vital,” he told conference
delegates, suggesting that reports were being suppressed as people were afraid of the liability issues. Navies had an essential role to play and while private armed security had contributed significantly, “it is not the long-term answer”. Piracy was costing between $6.5bn to $6.9bn per year with 99.5% being recurring costs. As Rajaish Bajpaee, CEO of Bernard Shulte Ship Management, pointed out at the same conference, with an annual cost of nearly $7bn, only 2% of this involved ransom payments. Ultimately, he said, the highest cost was paid in human not monetary terms by the seafarers themselves. He considered complacency as the most dangerous enemy until a stable government in Somalia was established. As the success rate of pirate attacks declined, he warned, pirates were likely to become more desperate and prone to more violence while
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In the first three quarters pirates killed at least six crew and took 448 seafarers hostage worldwide. The IMB Piracy Reporting Centre recorded that 125 vessels were boarded, 24 hijacked and 26 fired upon. In addition, 58 attempted attacks were reported for the first three quarters of the year. The drop in Somali piracy brought global figures for piracy and armed robbery at sea down to 233 incidents – the lowest third quarter total since 2008. In the first nine months of 2012, there were 70 Somali attacks compared with 199 for the corresponding period in 2011. From July to September, just one ship reported an attempted attack by Somali pirates, compared with 36 incidents in the same three months last year. IMB said policing and interventions by international navies are deterring pirates, along with ships’ employment of Best Management Practice, including the use of armed guards and other onboard security measures. “We welcome the successful robust targeting of Pirate Action Groups by international navies in the high risk waters off Somalia, ensuring these criminals are removed before they can threaten
ships,” Mukundan said. “It’s good news that hijackings are down, but there can be no room for complacency: these waters are still extremely high risk and the naval presence must be maintained.” As of 30 September 2012, suspected Somali pirates were holding 11 vessels for ransom with 167 crew members as hostages onboard. In addition, 21 kidnapped crew members were being held on land. IMB said more than 20 hostages had now been held for over 30 months. Piracy in the Gulf of Guinea is becoming increasingly dangerous, with 34 incidents from January to September 2012, up from 30 last year, and has pushed westward from Benin to neighbouring Togo. However, the nature of attacks differs from those off the Somalia coast as, typically, vessels are kept for seven-10 days, allowing the cargo to be offloaded and then released. Some figures suggest that Benin’s shipping activity has declined by up to 70% because of the piracy issue. Togo reported more attacks this year than in the previous five years combined, with three vessels hijacked, two boarded and six reporting attempted attacks. Off Benin, one ship was hijacked and one boarded. Nigeria accounted for 21 attacks, with
nine vessels boarded, four hijacked, seven fired upon and one attempted attack.
ransom, Onne port was one of the safest ports from which to operate.
Not all navies in the Gulf of Guinea have the resources to fight piracy far out at sea, so criminal gangs shift to other areas. The Nigerian navy must be commended, however, on its reactions to a number of incidents where its presence was instrumental in rescuing vessels, said Mukundan. The Nigerian Navy has also been conducting an exercise in the region to drive the anti-piracy message home.
Independent consultant Roger Hawkes refuted suggestions that Best Management Practice as operated off the Somali coast could work in West Africa. He argued that the West African experience was more a question of armed robbery than piracy, and that piracy attacks had not increased, but were being better reported.
According to Michael Hawkes, group security and regional HSE manager for West Africa at SBM Offshore, criminality is the biggest threat in Nigeria and has overtaken piracy and militancy with criminal syndicates moving westwards and southwards towards Benin, Togo and the Ivory Coast. The level of violence used in attacks is “very noticeable compared to Somalia” he told the Combating Piracy Conference. ISPS level 2 is in force in Nigerian waters and the majority of attacks are against unsuspecting vessels, he said. He described security as “blasé”. That said, he told delegates that Nigerian piracy was not crossing over into Equatorial Guinea and while Nigeria was a “hot spot” for kidnap and
Indonesia recorded 51 incidents in the first nine months of 2012, up from an annual 2011 total of 46. Attacks tended to be opportunistic thefts and mainly carried out onboard vessels at anchor. Vessels were boarded in 46 of the 51 reports, which IMB highlights as a cause for concern. Elsewhere in South East Asia, ships have been hijacked this year in the Malacca Straits, South China Seas and around Malaysia. IMB warned that these waters are still not entirely free of piracy or armed robbery and vessels should remain vigilant and alert. One raid last month off the Indonesian coast led to the crew of a Malaysian vessel overpowering six people who boarded the vessel.
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Corporate viewpoint POLICY & FORUMS 16
Progress in the seas of uncertainty
To date, not a single ship with armed security personnel aboard has been successfully pirated. AdvanFort’s comprehensive approach to maritime security provides commercial vessels with safe, secure transit through the high risk areas
AdvanFort 13755 Sunrise Valley, Suite 710 Herndon, VA 20171 USA Tel: 703.657.0100 Fax: 703.782.1618 E-mail: firstname.lastname@example.org Website: www.advanfort.com
n 26 October, 2012, US Assistant Secretary of State for the Bureau of Political-Military Affairs Andrew J. Shapiro reported that significant progress has been made in combating piracy off the coast of Somalia, resulting in “a roughly 75% decline in overall pirate attacks this year compared with 2011”. NATO Secretary General Anders Fogh Rasmussen issued a similar statement on 5 November, highlighting that: “In 2011, pirates successfully attacked 129 ships and captured 24. In 2012, pirate attacks decreased substantially to 19 ships and seven captures”. Key elements cited as being responsible for the decrease included increased co-operation between military forces, the private sector and law enforcement agencies; the targeting of criminal networks and the creation of new institutions and practices within both the international military coalition and commercial industry. Despite these positive gains, Shapiro warned that “pirates are still actively searching for ships to target”. Empowering commercial shipping is part of the solution Thomas Kelly, Shapiro’s principal deputy assistant secretary, said: “The US government is working with, and empowering, the maritime industry so that it can better protect itself from piracy attacks”. Kelly noted that “perhaps the most significant factor in the decline of pirate attacks has included the steps taken by commercial vessels to prevent and deter attacks from happening in the first place.” Implementing Best Management Practices (BMPs) such as the effective utilization of physical barriers and fullspeed approaches through the high risk area to deter possible attacks has yielded positive results. Kelly stated that “adherence to BMPs is not a guarantee against hijacking, but all available evidence indicates they considerably mitigate the risks”. The ultimate deterrent: armed security teams Although historically controversial, the international community has, in recent years, become a proponent for the use of private armed security teams in high-risk areas. “The use of armed
security teams has been a potential game-changer in the effort to combat piracy,” Shapiro pointed out. “To date, not a single ship with armed security personnel aboard has been successfully pirated.”
“The most significant factor in the decline of pirate attacks has included the steps taken by commercial vessels to prevent and deter attacks from happening in the first place” Attempted attacks are usually thwarted as soon as the pirates observe an armed security presence aboard vessels. As Shapiro observed: “Pirates often break off their attempt to board and turn their skiffs around to wait for another less protected ship.” Today, more than 80% of container ships and tankers utilize armed security teams.
President William H. Watson
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Planning for success With more than 200 private maritime security companies operating worldwide, the commercial shipping industry has an abundance of armed security providers. The problem for many commercial companies is selecting a reputable security company that has the organizational structure to support multiple transits, in-house expertise and regional knowledge to work effectively in the high-risk area, and certified professional teams who are not only qualified, but can also work effectively within the industry. Robert Wells, director of education and training at the National Maritime Law Enforcement Academy (NMLEA), states that: “Challenges exist in the private maritime security industry. Despite efforts undertaken by the IMO to establish standards, several companies are not always operating ethically with regard to management of operations, implementation of security protocols, and training security teams.” The NMLEA is currently working with a handful of industry partners to develop an Armed Ship Security Training Program at the Maritime Institute of Technology and Graduate Studies. The program, to be launched in 2013, will
serve as an international training model targeting armed maritime security professionals. As part of the program, maritime security professionals will have the ability to acquire the necessary industry-wide qualifications and certifications; learn best practices for working effectively with ships’ captains and crewmembers; participate in simulations focused on non-lethal deterrence techniques; and become knowledgeable on the guidelines set forth by international organizations. Providing high-quality maritime security solutions AdvanFort is a privately-held company with headquarters located in Herndon, Virginia and offices around the world. With more than 100 employees and 200 contractors, the company delivers a full-range of security and government relations solutions to meet and exceed their clients’ needs. AdvanFort provides high-quality comprehensive global security solutions for the commercial shipping, port and terminal, and oil and gas industries. Its security teams are fully vetted and are comprised of former US, UK and NATO Special Forces operators, who are trained and equipped to deter security breaches. AdvanFort’s mission-tested security teams; fleet of counter-piracy vessels; continuously manned Mission Operations Center (MOC) and Threat Analysis Center (TAC); and intelligence assessments all enhance the safety and protection to their clients’ seafarers, vessels, cargo, terminals and facilities.
“The problem for commercial
systems have been put in place as part of AdvanFort’s commitment to quality and delivering services that enhance the safety and protection to our clients’ seafarers, vessels, cargo, and facilities. “We are dedicated to becoming the best in the field and this comprehensive Quality Assurance program will aid in reaching that goal.”
AdvanFort is a signatory company for the International Code of Conduct (ICoC) for Private Security Service Providers. It is certified with the International Maritime Law Enforcement Academy (IMLEA), participates as an executive member in the Maritime Security Council (MSC), and is also a member of the Security Association for the Maritime Industry (SAMI).
companies is selecting a reputable security company that has the organizational structure to support multiple transits, in-house expertise and regional knowledge” Our commitment AdvanFort has reinforced its commitment to excellence by instituting a stringent Quality Assurance program. The multi-faceted programme includes seeking counsel from outside expert advisors; independent auditing of training and operations programs; accreditation from professional and trade organisations; feedback from vessel masters who interact with AdvanFort’s operators; and an ombudsman programme for the operators themselves. “We equate quality to saving lives and livelihoods,” said company President William H. Watson. “These
Providing high-quality maritime security solutions
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“SAT Marine are a mature long standing,reliable and well respected company! Their staff are professional, dynamic and tremendously knowledgeable. I personally would not have any hesitation in recommending their service to other Maritime companies”
Green said. Owners and private maritime security companies could now be roughly divided into three tiers, he said, which were not mutually exclusive, and owners, charterers, managers or PMSCs could be in all three tiers or just one alone. In tier one, teams consist of a minimum of four men who are highly trained, well equipped and experienced. The relationship is based on quality of service, quickly followed by price, he said. “This tier is undoubtedly led by the oil majors. Only a very small handful of oil majors have the required standards or logistical capabilities to service these companies. Unsurprisingly, it is these few providers who lead on all regulatory and accreditation issues.”
Relationship building Shipowners and charterers are benefitting from forging bonds with PMSCs however pirates may increase use of AIS, according to PVI
onducting a successful hijack of a vessel is seemingly getting much harder according to William Mackenzie Green, business development manager at Protection Vessels International, and pirates may increasingly use Automatic Identification Systems (AIS) in identifying vessels. Addressing delegates at the Combating Piracy Week event organised by Hanson Wade, Mackenzie Green warned there is concern that as pirates get increasingly desperate, their tactics will follow suit. He said that he is often asked by his customers whether levels of violence adopted by the pirates will escalate in line with some predictions. He believed that the chances of this are “extremely unlikely”. There were limited examples of new weapons entering the Somali area and there appears to be no link between the pirate groups and Al Qaeda or Al Shabab.
An upscale from light small arms to high calibre weapons would require “a significantly more substantial supply chain”. Anything that is too big to handle while going at 15 to 18 knots in a 2-3 knot sea state in a skiff would be unlikely to be used by the pirates, he said. Also, to place a large calibre weapon in a dhow would be bound to attract naval forces, he added. What is far more likely, he believed, was that pirates would choose the “path of least resistance” and use AIS tracking. Pirates could also use the same webbased information centres to look at the make-up of a vessel and assess its vulnerability to an attack. He expected this form of escalation to take place in the next six to 12 months. While some commentators have spoken of the shipping industry being served by about five security providers, this is no longer the case and a more complex pattern has emerged, Mackenzie
Owners, managers and charterers who form part of this tier are typically large, have a conservative approach and are risk averse in nature, Mackenzie Green explained. Tier two consists of three or four men who are trained and equipped, but the relationship is based on price followed by quality of service, he said. This option is typically taken up by ship management companies who require a “broad spectrum of quality depending on their head owners or charterers varying approaches to piracy. These owners and managers need the flexibility to provide the very best teams as well as the midranking teams, depending on CP terms, insurers, costs and the owner’s will.” For PMSCs this is where the competition is most fierce, he said. “Needless to say, when shopping for men with weapons, one should not be choosing a provider based on price, although clearly it is always going to be part of the equation.” Given economic pressures facing the shipping industry at the moment “a race to the bottom is likely”, he said. This tier represents the area of most concern he said because “as the prices fall, so will the standards.” Having said that, there had been a “real resurgence in the need for quality” in recent months. Tier three teams consist of two or three men, with a relationship that is based on price. Legislation and regulation is not a major concern and both the owner and the PMSC will have limited loyalty to each other and the relationship will be “deniable”, he said. “The days of the security companies that sit solely within this tier are numbered,” he said. With the increase in regulation and accreditation, it will be too difficult for them to meet the new requirements, he believed. Charterers “span the breadth of all three tiers”. It is likely, he said, that a charterer or an insurer who
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truly understands the piracy threat, but also the reputational threat, will make sure he has a tier one provider. On the other end of the spectrum, Mackenzie Green said those who do not understand the threat and “still perceive the maritime security industry as long-haired, tattooed cowboys, it is most likely their owners will be employing a tier three provider. It is ironic that those who think the maritime security industry is run by cowboys, and therefore do not engage directly, are the most likely to be employing them.”
consolidation of PMSCs and the issue of protection verses deterrence and GUARDCON.
To choose a security partner effectively to protect the crew, vessel, oil or gas platform, will require early engagement and thorough due diligence, he said.
PMSCs, he said, had now been accepted as a “necessary evil” and were broadly acknowledged as playing a part in the current success against Somali piracy. Owners and charterers were increasingly using PMSCs as an opportunity rather than a hindrance. In cases where relationships have been built into trustful partnerships, shipping companies have sought to make considerable savings by going direct rather than going round.
What the industry is trying to avoid, he said, is “the potential horror of a poorly trained, third party contractor who suffers from post traumatic stress disorder being on deck with an unlicenced automatic weapon and being placed in a highly pressurised, life-threatening situation”. On a brighter note, he said, there was a real chance that by this time next year, the maritime security industry will be accredited for ISO, regulated by flag states and with broad over-arching responsibility held by the head owner for in-depth due diligence. Over the next year, owners’ maritime security companies will be discussing a number of issues, including slow-steaming legality of floating armouries, post-traumatic stress disorder for captured seamen, flag regulations, the
As far as slow steaming is concerned, there are owners who find the broad brush guidance directing them to transit at maximum speed “aggravating”. Most would sympathise with a containership transiting at 22 knots which is obliged to burn additional bunkers, where a fully laden capesize, which is considered more vulnerable, can only make a much lower maximum speed.
Many companies that do not decide to use armed guards tend to hug the Indian, Pakistani and Iranian coast lines, Mackenzie Green maintained. This brings its own concerns because of the large number of small fishing vessels off the coast, alongside the additional worry of burning more bunkers. With armed guards on board, he argued that this allowed operators more flexibility of route. Commenting on post traumatic stress disorder (PTSD), he said that the topic has been widely aired,
not least because of soldiers service in theatres like Iraq and Afghanistan. “It is not only the guards and their past experience that are of concern, but the mental welfare of the crew following or being exposed to a deeply traumatic experience,” he said. If the industry is to move forward in a serious manner, it is these kind of issues that need to be recognised. It was essential, going forward, that standards to regulate the industry are welcomed and future accreditation must be used to level the playing field, but not down to the lowest common denominator, Mackenzie Green warned. Future regulation should be made to raise standards not lower them. He predicted two major market forces having effect on the industry: downward pressure though global trade, industry rates, commercial pressures and consolidation, while upward pressure will be created by increased flag regulation, the implementation of ISO standards and owners’ due diligence. PMSCs are going to go through an period of intense regulation and accreditation, over and above that already experienced, he said. ISO accreditation thus far was not a measure of how well a particular PMSC can protect a vessel and its crew, but proof that it has a robust quality management system. Flag states like Panama and Germany are bringing in regulations shortly. Standards for entry into the maritime security industry are rising, he concluded, and the “gold rush mentality has now well and truly finished”.
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Security organisations Panama has introduced an accreditation system for armed guards
higher standards “that is a good thing” he said. “Competition is not something we are afraid of and it is to be welcomed, but it is important that the purchasing people, who are effectively the shipowners, can measure the standard and quality of what they are buying and can see what they are paying for,” Pethen explains. This makes it easier to decide which are the excellent providers and which are not so good. Securewest went through an accreditation process earlier in the year called SafeGage, an independent vetting service for maritime security companies offered by Bestia Risk Consulting. “Based on guidelines defined by the IMO, flag state laws and coastal state laws, SafeGage provides a qualitative benchmark against which private security purveyors are assessed. As a three-layered process, it compounds multiple types of information, offering the prospecting shipping agency a highly qualified yet transparent understanding of its candidates,” Bestia says.
Raising the standards Accreditation and new regulation are set to be stepped up over the next year, according to Jonathan Pethen at Securewest International
ver the past few years, there has been increasing move towards the introduction of standards in the maritime security industry, according to Jonathan Pethen, business development manager at Securewest International. “We are still not at the point yet where there is an accepted international standard, but the International Maritime Organization (IMO) is in the process of adopting an ISO standard 280007, which is something we at Securewest very much welcome.” The ISO standard will be internationally recognised and is not just something introduced by an individual flag state or insurance company.
There are a number of different accreditations around and Securewest has gone through a number of them, Pethen says. “We are always keen to go through them when the opportunity arises because we are keen to be able to demonstrate to our customers, the insurance community and other interested parties that we take quality and standards very seriously. We are looking to deliver the highest-quality standard that we can.” The standards are essentially raising the bar and the levels of requirement within companies to be able to meet them. “Inevitably, one might argue that some of the smaller, less capable companies may struggle to meet them. That could result in a consolidation across the industry.” If this is driven by the need by the requirement to have
“SafeGage is a Norwegian accreditation and the creation of it was sponsored by the Norwegian Hull Club and DNK, the two big war risk insurers,” Pethen explains. “Like a lot of insurance companies, it was experiencing the difficulty that clients were saying ‘who should we use for maritime security and who are the best suppliers?’,” he says. The insurers therefore sponsored the creation of SafeGage, which basically started from the premise of what ISO is likely to put into its standard when released. Bestia carries out the accreditation. The process is very demanding and Pethen said some of the challenging questions helped SecureWest improve its processes further. “Sometimes, looking at yourself through the eye of an accreditor is a good way to identify ways in which you can improve your own company. There are always things that can be improved. We were very happy with the results.” Not only is there the ISO standard to be considered, but flag states themselves are starting to introduce their own accreditation processes. Panama has introduced an accreditation system for maritime security providers as has Cyprus, with Germany, Denmark, Sweden and Norway among other states that are setting up accreditation processes. “I think we are going to see over the coming year a whole swathe of them,” says Pethen. Securewest has been going through the accreditation process with Cyprus and Panama which, he says is demanding, but “a good thing to be able to do”.
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Corporate viewpoint POLICY & FORUMS Strategically reducing marine travel costs 24
“Our team of consultants appreciate the demands and complexities of this time-critical industry and it is their focus that has enabled us to become a leader in maritime logistics”
he emergence of new security companies seemingly springing up every week has led to many organisations reviewing their overall expenditure and never before has ‘travel’ come under so much scrutiny. After salaries it is often the next single highest expense and, with increased competition in the maritime security industry, some companies are having to review their pricing structure and as a result are demanding more from their travel budgets. Traditional travel agencies operating in the marine and offshore sectors have been forced to evolve and now find themselves assisting with anything from the movement of weapons to the management of airline rewards programmes on behalf of their clients. At SAT Marine, our team of consultants appreciate the demands and complexities of this time-critical industry and it is their focus that has enabled us to become a leader in maritime logistics. We understand that your business is not simply a nine-to-five operation – and neither is ours. We provide 24-hour assistance, the major part of which is handled in-house by your own dedicated team. SAT Marine’s business development manager, Kirsty Nicholson, explains: “The feedback we receive is that our clients prefer to deal with a small, UKbased team that they recognise and not be diverted to an overseas call centre. All our consultants are familiar with our clients and this helps to create reassurance during out of hours as they are booking travel for them on a daily basis.” Incorporated in 1983 and recognised as a leading independent travel provider
to the maritime industry, we are dedicated to ensuring an efficient and reliable crew change anywhere in the world – on time and on budget. Our customers enjoy unparalleled flexibility and speed of response from experienced marine travel specialists who, through our membership of SAMI, possess an in-depth knowledge of your business. We appreciate that a quick turnaround is essential as any delay could be detrimental to them securing future contracts. Over the past few years, the movement of weapons, ammunition and opera-
“Customers enjoy unparalleled speed of response from experienced marine travel specialists”
tions kits has become a priority for many companies and has resulted in SAT Marine establishing a specialised team to assist with everything from the initial planning to the eventual transportation. Ever-changing legislation and constantly revised airline policies require a dedicated team on hand in order to stay ahead of the game, especially in this highly-specialised area. Your team of experienced consultants will have at their disposal special rates for those working in the Oil
SAT Marine Tel: 01204 477466 E-mail: firstname.lastname@example.org Website: www.satmarine.co.uk
& Gas and Maritime industry. These fares offer substantial savings against normal tariffs, come with fewer restrictions and penalties and include the benefit of extra baggage allowance. There are some airlines that do not offer marine fares and, for these carriers, we have obtained our own specially-negotiated rates with the savings achieved being passed directly to our customers. Our travel services include: • Air travel • Hotel reservations • UK and European rail • Worldwide travel alerts • Passport and visa assistance • Movement of weapons and armour • Worldwide car hire • Detailed management information SAT Marine’s account management team is committed to achieving the best results for your business and regular communication is key to our success. We strive to develop strong, productive and long-lasting partnerships with all our clients resulting in maximum efficiency and bottom-line savings for your company. Our account management services include: • Regular client reviews with your own personal SAT Marine account manager • Service level agreements ensuring that our consultants bring best practice to the way you travel • Travel policy compliance and assistance with policy development • Data analysis including the identification of cost saving opportunities with suggested course of action in order to maximise savings • Management of your corporate frequent-flyer programmes, bringing company benefits every time your employees travel • CO2 tracking, allowing you to continually measure your carbon footprint • Corporate social responsibility For more information contact Kirsty Nicholson on 01204 477410 or email email@example.com
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Although there have been issues with insurance for maritime security companies, Pethen says Securewest has all the required insurances that IMO certifies. “Having standards laid down for insurance is a positive thing because it helps people to understand what insurances are necessary, and IMO specifies what insurances should be held.” Pethen says that Securewest is very busy at the moment as, with the end of the monsoon season, the weather is more conducive to pirate activity.”Inevitably, our clients are aware of that and so we are getting a much higher demand for our services. We are obviously making sure that our capability and resource can match what is thrown at us by our client base. We always give priority to our existing clients to make sure their requirements are always serviced, but to date I have not had to turn anyone away”. The main emphasis of Securewest’s work is on the Indian Ocean side, but the company does have some capability in West Africa. The issue is more complex in West Africa because a lot of the pirate activity takes place in territorial waters. “When you are dealing with a part of the world where you have well-developed countries, even if
they perhaps haven’t got the military capability to fully address the piracy problem effectively, they are much more capable states compared to the East African scenario,” says Pethen. The West Coast scenario is also much more complex because different states will have their own approaches to tackling the problem. Additionally, as far as Nigeria is concerned private security contractors cannot carry firearms within the country’s Exclusive Economic Zone. “This obviously presents challenges to some of our clients who clearly would like to utilise that sort of capability,” says Pethen. Securewest is looking much more closely at West Africa, he says, making the point that the company has been established for 25 years and is not just in the business of putting men with guns on ships. “When we started up, piracy was not the biggest issue of the day, so therefore we have got a depth and a breadth of capability that reflects that. A lot of what we do includes training, consultancy and provision of ancillary services. “For example, the company helps a lot of clients with writing ship security plans and ship security assessments, as well as providing advice on vessel hardening and how to install and make best use
of safe rooms and citadels. All those sort of issues are part of what we cover over and above what we would cover with men with guns on ships. We believe it is important to have those additional capabilities because therefore the guys that do go on the ships and do the transit are not there in isolation. They are doing it with the backup of a company that has that depth of resource and capability,” he says. Securewest has a maritime assistance centre which is a 24-hour operations room, partly to provide support to those on board, but the company is also an accredited organisation to act as a fast response capability. If, for example, the emergency button on board a vessel for a client registered with one of the company’s clients is deployed, that alerts the control room, which can immediately take action to address the situation. That involves contacting the ship to establish if it is a drill or a mistake, or whether there is a problem. If there is, it is then a question of dealing with the relevant authorities to handle it. “Such problems need not necessarily be about piracy, there could be all sorts of issues that could result in an emergency button being pressed,” says Pethen. “That is why we have the capability to assist companies.”
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Ramora managing director Dave Welch
is “not delivering a military service, but a commercial service”.By this he means that personnel need to interact with the client. All personnel deployed come from military bomb disposal teams, including Royal Navy clearance, the Royal Engineers and RAF bomb disposal. So how many people are needed for a job? “You need to put the right resource against the right need,” Welch says. Dealing with marine flares or fireworks are just two jobs that Ramora undertakes and the company does a lot of work with police forces. As far as larger companies are concerned, the UK government operates a “polluter pays” approach. While the armed forces bomb disposal service is for the benefit of the taxpayer, to ensure that members of the public are not endangered, any large company cannot expect a similar service.
Exploding the myths Dealing with Second World War bombs is just one area of work for emergency ordnance disposal group Ramora
lthough emergency ordnance disposal expert Ramora does not act as a military bomb disposal team, it has the same function and the company’s personnel are drawn from the military. One raison d’etre for the company is the fact that UK companies will not send a military bomb disposal team to help a commercial entity, explains Ramora managing director Dave Welch.
ISPS code, and working with anti-piracy groups. Advice and guidance is provided via a 24-hour control system and Ramora can deploy a team immediately, while the client has access to real time guidance, Welch explains, and gets some risk assessment over the phone. This advice can include what to do if a rocket propelled grenade lands on the deck of your ship and doesn’t explode through to the right methods for containing an explosion.
Although much of the company’s work involves dealing with Second World War ordnance, it is only part of the job and Ramora has projects involved in anything from wind farms to international work teaming with dangerous objects, mainly for overseas governments. Overseas markets that the company has worked in include Libya.
Ramora has a core staff of 26, but Welch says the company bolsters that with a range of consultants if necessary. There is a finite pool of bomb disposal people available who generally work shift patterns, but in the event of some experts being deployed on other jobs, others can be found.
Advice the company provides includes talking to shipping companies about compliance with the
While Welch’s team, himself included, come from a forces background, he stresses that the company
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Explosive disposal One area that Ramora UK has vast experience in is the management and disposal of Time Expired Pyrotechnics (TEPs) or out-of-date flares, which are by their nature explosive and very dangerous to dispose of, even if they are damaged, missing their fuses, or wet. Councils are currently under no obligation to provide facilities for safe disposal of TEPs and so not all UK councils currently offer services for TEP disposal. TEPs continue to pose risks to communities as the safe disposal of these hazardous materials remains limited. It is both illegal and dangerous to dispose of TEPs or other explosives by dumping them on land or at sea. The materials that make up TEPs start to disintegrate over time, which may make them unstable or faulty, thus posing a grave danger to those handling or storing them. They cannot be disposed of by dumping them in the sea as salt water often reacts with the aluminium casing, causing it to swell and corrode, making the TEP even more unstable. This poses a significant danger as TEPs and flares disposed of in this way may become washed up on beaches and could seriously injure or kill curious children and adults who may pick them up to investigate. Under the Merchant Shipping Act 1995 and Prevention of Collision Regulations 1972, illegally disposing of TEPs and flares is a criminal offence that can incur a maximum prison sentence of two years and a fine.
Despite some councils understanding the need for a solution to this problem and wanting to provide facilities for disposal of TEPs, lack of funding has meant that this is not always feasible. The police will only accept distress flares that have been abandoned in a public place. Individuals may take a limited amount of TEPs to any of the 18 Maritime Coastguard Agency sites around the UK. However, commercial companies cannot have their TEPs collected or disposed of by HM Coastguard under any circumstances. Therefore, the safe disposal of TEPs and flares continues to be an ever-present and persistent issue for many. According to Welch: “All of our operational teams have previously dealt with TEP collection and disposal as part of Royal Navy Emergency Ordnance Disposal (EOD) units. All our operational staff are former military EOD professionals. The Ramora UK solution permits storage and transportation of TEPs at the reduced level of 1.4 due to Safe Systems of Work (SSW), accredited training and engineering solutions to mitigate risks.” Ramora UK can offer the disposal of TEPs on site as well as removal and subsequent disposal at an
allocated burn site. These collections are undertaken by fully qualified former military staff using Ramora UK specialist vehicles.
capability. The Dog Unit also provides specialist training and highly experienced instructors, accredited by the National Association of Security Dog Users.
Ramora UK also provides TEP awareness training, which provides structured accredited training in accordance with the Ramora UK approved scheme for accepting and processing TEPs at various client sites. The students gain an understanding of Ramora UK’s approved framework for the safe management of TEPs throughout the UK, basic explosive theory, SSW and competency based practical assessments which are designed to ensure correct handling procedures in accordance with the structured SSW.
Ramora UK identified a strong case for establishing an alliance with The Dog Unit, a case that was strengthened by the close proximity of The Dog Unit’s training facilities to its own headquarters.
Dog detectors Ramora UK has also formed a strategic partnership with dog search experts the Dog Unit. Professionally trained dogs and their handlers can play a vital role in the detection of many forms of explosive material. The Dog Unit has the facilities to provide the kind of highly specialised dog search teams that clients require, offering Ramora UK clients a complete package of specialist services alongside its emergency response
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According to Welch: “As a company that believes in setting benchmarks of excellence in all areas of bomb disposal, we attach great importance to forming strategic partnerships with organisations providing complementary services to our own high standards. The Dog Unit is an excellent example of just such an organisation and we are looking forward to working with it to enhance the service we can offer to our clients.” Dave Walker, managing director at the Dog Unit, commented: “At the Dog Unit we have a wealth of experience in detection dogs and counter terrorist matters that we feel complement the services offered by Ramora UK, this partnership shows the professional approach both companies have to providing our clients with a fully integrated service in all matters relating to explosives and explosives detection.”
Setting new standards
What will ISO PAS 28007 mean for the maritime security industry? Chris Stewart of Black Pearl Maritime Security explains more
he core business of maritime security providers is to keep multimillion dollar floating assets and, more importantly, the men and women who crew them safe at sea. Although it sounds a simple enough task, the complexities inherent to deploying armed personnel at sea is too often hindered by poor leadership, the involvement of middlemen and a serious lack of quality. In October 2012, the need for armed guards on board ships was finally recognised by UK Prime Minister David Cameron. While this brought an immediate change in attitude, as the wider public realised the importance of private maritime security in protecting against piracy, it is questionable what the long-term impact will be. International efforts to combat piracy have been commendable and are certainly partly responsible for a fall in recent successful attacks. Navies themselves openly admit that they do not have the funding or manpower to adequately protect the world’s waters. Like it or not, the private maritime security industry is vital to the war on piracy. Poor practice and inadequate leadership are also far too common and not limited to smaller, more recent start-ups as has been suggested. In an industry dominated by ex-military personnel, far too many senior people seem to have forgotten the basic tenets of military leadership. Is the industry in need of regulation? The obvious answer is yes. In an ideal
world, regulation can only be a positive experience for the professional players in the market and, more importantly, for the clients who employ their services. The reality, though, is far from simple with many questions that need clear answers. For example, where should the regulation come from and how should it be applied?
The benefits that Black Pearl received through registration to the ISO9001 standard include: • The streamlining of our organisation’s procedures • An enhanced consistency to our service delivery • The improvement of our management practices • Enhanced status • Competitive advantage • Lower insurance premiums
The proposed introduction of ISO PAS 28007 is on the horizon, a quality procedure for private maritime security companies to comply with. This standard is currently under review and we are hopeful it will help to fill the
existing void in certifying best practice. At Black Pearl, we believe strongly in the need for regulation and high standards within the industry, so we are delighted to announce that we have recently achieved the internationally recognised ISO 9001. This certification is just part of our continued commitment to best practice and the natural progression will be to become certified to ISO PAS 28007 as soon as it is released. The ISO 9001 accreditation requires companies to have a quality management system in place ensuring consistency and continual improvement, leading to high levels of performance and customer satisfaction. This further underpins our focus on quality and enhances our reputation as being one of the leaders in the maritime security industry. As a company, we are committed to offering the best possible service and we are often called upon to handle transits, which other organisations feel are too small, or too strategically challenging. The Black Pearl foundations have been built on quality and our focus is to plan, prevent, protect. Bio Chris Stewart has held a distinguished career, which encompassed 14 years as a Royal Marine Commando, including time with the Special Boat Service and 15 years leading international aid and development projects. He established Black Pearl Maritime Security in February 2011.
Black Pearl Tel: +44 1249 715960 Website: www blackpearlmaritimesecurity.com
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Thinking of working for an Offshore Employment Agency? Global Maritime Recruitment Solutions (GMRS) are able to provide you with an Employment Contract which will assist with your Claim for Seafarer’s Earnings Deduction (SED). This in turn also protects the Maritime Security Company you are working for as GMRS go down on your Tax Return as your Employer. Our Application process is very straight forward we only need you to fill in one form and return to us a few scanned Documents. The whole process from first Contact to having your account open and ready to Invoice is 48 Hours*. We enlist the services of Global Payroll in the UK to deal with our Human Resources and Payroll Management. Simply email your Invoice to us and let us do the rest, we will log your Invoice into our Accounts Management system and the Invoice the Company you are working for. All payments are then sent to GMRS and you will receive your wages through us. The only charge for our services is 2% of each Invoice processed and this does not include expenses which are paid back to you in full.
For further information please contact GLOBAL MARITIME RECRUITMENT SOLUTIONS ICS MARSHALL ISLANDS CONTRACTS: T/A GMRS (CONTRACTS) OFFICE 508, 5TH FLOOR, THE FAIRMONT DUBAI, SHEIKH ZAYED ROAD UNITED ARAB EMIRATES PO BOX 75671 TELEPHONE (DUBAI): 0097143116678 UK ADMIN NUMBER: 0203 455 0060 www.gmrs.eu | firstname.lastname@example.org
Are you already with an Offshore Agency but thinking of moving to GMRS? If you are already with one of the other Offshore Agency’s switching to GMRS takes less time than you think. We would recommend checking how much notice you need to give your current Agency before switching to GMRS. As stated above you just need to complete our joining form and return a few scanned Documents, we can have your account set-up within 48 Hours*.
Why use GMRS? 1. Our Admin fee is currently the lowest on the Market**. 2. You are free to choose which ever Accountant you wish. 3. The Contract of Employment does not tie you up for a length of time and you can work for more than one Company under the Contract. 4. We have an in-country representative currently in Muscat. This will change soon as they will be moving to Galle, Sri Lanka. 5. Our Admin team are based within the UK. 6. Our Legal and Compliance team is based in Dubai. 7. Our Contracts Of Employment complies with Dubai law. *Time frame may be longer over weekends and Bank Holidays. ** Currently the lowest in the market as of 09/08/2012. Legal - Our Public Indemnity Insurance & Employers Liability Insurance is with Hiscox.
Legal Stephen Askins
approved. That is therefore unlicensed activity. Central to that is the impact of that on the PMSC insurance which as a marine policy can be affected where the adventure is tainted with illegality.” The UK government is looking at whether it will approve the Sri Lankan arrangement, Askins says. “It is a vital hub at the southern end of the Red Sea and if the UK confirmed the present situation and did not approve the armouries that could impact on the ability to provide enough armed guards. It comes at a time when the incidence of piracy is so low some may think that is not critical, but most are warning against complacency.”
Kenyan appeal decision Kenya does have jurisdiction to try pirates, the Kenyan Appeal court ruled in October. The appeal followed a ruling in a Mombasa court in 2010 by Justice Ibrahim that Kenyan courts did not have jurisdiction to try suspects of piracy charges allegedly committed outside Kenyan territorial waters.
Fighting talk Floating armouries and the prosecution of pirates are two current hot topics Armoury issue The issue of floating armouries came to a head in October when Sri Lanka imposed a deadline of 15 October for removal of all weapons from shore-based armouries. The Sri Lankan authorities have sub-contracted Avant Garde to run two off-shore armouries, one of which is the Sinbad, which is dual Mongolian and Sri Lankan flagged. All weapons have now been moved off shore. It is expected that there will be 800-1000 movements on and off the armouries each month. That is a significant amount of money being generated for a company run by ex-military, according to Ince & Co partner Stephen Askins. “There are also about 20 armouries scattered on the periphery of the High Risk Area, including the
Red Sea and Fujairah. It avoids the bureaucracy of local ports and saves incurring port costs and allows owners to avoid loss of the time in deviating to ports to collect guards.
The men were charged with the offence of piracy contrary to Section 69(1) as read with Section 69(3) of the Penal Code. Charges related to an attack in March 2009 on the high seas of the Indian Ocean against the Courier. Weapons included AK47s and a RPG7 rocket launcher. In his judgment, Justice Ibrahim ordered their repatriation or alternatively that the UN High Commission for Refugees take custody of the men as displaced persons.
“However, in Fujairah the authorities have issued a Marine Notice banning all crew changes and bunkering outside port limits. That effectively has undermined the floating armouries there and thrown a lot of PMSCs’ plans into disarray. The Sinbad has been arrested, ostensibly for straying into UAE waters. It wasn’t the only one and all had to convince the authorities that the weapons on board were legal.”
Counsel for the appellants argued that Justice Ibrahim did not appreciate the meaning of the offence of piracy jure gentium. The appeal court disagreed, but said that where he erred was in “subordinating Section 69 of the Penal Code to Section 5 thereof; in his interpretation of Sections 369 and 371 of the Merchant Shipping Act of 2009; on Kenyan courts’ jurisdiction to try piratical offences committed on the high seas; and most importantly in his failure to appreciate the applicability of the doctrine of universal jurisdiction in reference to the case at hand”.
The other issue, Askins explains, is that UKlicensed PMSCs are not allowed to use floating armouries. PMSCs have to have an Open General Trade Control License, which allows the transfer of weapons between third party countries between approved armouries. “Floating armouries are not
Leading appeal judge David Maraga said that if Justice Ibrahim implied, “as I think he did, that the offence of piracy jure gentium ceased to exist in Kenya on 1 September 2009 when the Merchant Shipping 37 Act of 2009 came into operation, then he was clearly wrong.
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Corporate viewpoint POLICY & FORUMS 32
Setting the highest standards of security I Picture
As Germany’s leading Standfirst maritime security services provider, ISN International Security Network meets clients’ needs with the highest standards
n a divided market, making the difference is of the utmost importance – something ISN fully understands. As a security services provider based in Germany, ISN has been providing armed security services to shipping companies by accompanying container and cargo ships travelling in the high-risk piracy areas off the East and West African coasts and in the Indian Ocean. As the UK’s industry partner for the regulation and accreditation of private security providers, ADS is to introduce a set of standards for the provision of private security, both on land and at sea. The same process has been initiated by the German government which is working on regulations for vessels sailing under the German flag. The time is right to set some binding standards as more and more PMSCs operate with unqualified personnel and/ or illegal weapons. A market shakeup is inevitable to provide the highest quality service to ship owners. Individual service ISN develops safety and security concepts for ship owners worldwide. Our individual services range from merely consulting via on-board audits up to the operative deployment of armed escorts. Our security personnel, being former members of special police or military units, have many years of professional experience and are especially trained for maritime security assignments. We can provide the following: »» Highly experienced, trained and
selected (European) personnel »» Regular intelligence and piracy reports »» Vessel hardening to prevent hostile boarding »» Crew security training and drills »» Modern, effective and registered weapon systems
QuTiatiasp “The time eribustiur? is right to Dunt set some a quibus binding niam, adstandards qui sa veliatur as more sam PMSCs eos eatur, operate qui dia with unqualified quatio debit, personnel” quisit,
A proven concept ISN’s concept of operations for protecting cargo ships is based on the following: »» A prerequisite of physical and technical security measures, including razor wire, physical protection of sensitive areas and physical barriers to prevent access through gangways. »» The number of security personnel deployed on any given ship depends on the ship’s size and obstacles obstructing view from the bridge to ensure that, at any given time, the entire ship and its surroundings are in full view of the security team.
»» Early warning systems and the prevention of unauthorised boarding through the communication of warnings, evasive manoeuvres and the use of firearms when necessary. »» Use of a safe room capable of housing ship personnel for up to 96 hours. The safe room also serves as a control centre capable of controlling the ship’s course, monitoring activity on board the ship and communicating with emergency responders and rescue teams. »» Procedures for security personnel to respond to a violent attack on board, aimed at preventing unauthorised boarding and repelling an attack on board the ship. Vessel protection in the Gulf of Guinea In response to the tremendous level of demand, ISN recently announced that it will also offer vessel protection in the Gulf of Guinea. Despite the prevalence of maritime piracy off the Nigerian coast and in the wider Gulf of Guinea, piracy in this region tends to receive less public attention than in the Horn of Africa and the Gulf of Aden. The growing frequency of attacks and the higher insurance premiums for shipping in the Gulf of Guinea led us to extend our offer of services to vessels calling at ports in the Niger Delta. Meeting our clients’ needs by providing the highest standards is our main tasks as one of Germany’s pioneers in maritime security.
For further information visit: www.isn.eu.com
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Legal European Union Naval Force
“The phrase jure gentium is a Latin expression that means the ‘law of nations’. The offence that Section 69 of the Penal Code created was therefore the offence of piracy as known in international law. Although that Latin phrase is not used in the Merchant Shipping Act of 2009, a reading of Sections 369 and 371 thereof makes it quite clear that the Act retains the offence of piracy jure gentium in Kenya.” The judge continued: “Based on the rationale that the international community should ensure there is no safe haven for those responsible for the most serious crimes, the concept of universal jurisdiction therefore allows all international states to bring the perpetrators to justice. This authority derives from the principle that every state has an interest in bringing to justice the perpetrators of international crimes. “All states are therefore obliged to act as guardians of international law and on behalf of the international community to prosecute international crimes regardless of the place of commission
of the crime, or the nationality of the author or of the victim.”
Prosecuting pirates in Somalia A joint French-UAE initiative is providing for training for Somali judges and prosecutors so that they will be able to try piracy cases on their own territory. Jocelyne Caballero, special anti-piracy representative from the French ministry of foreign and European affairs, has been quoted as saying that being judged by Somali judges will have greater impact than prosecutions abroad. Training programmes will take place in the UAE and will involve not only legal representatives from Somalia, but also Somaliland and Puntland. Thomas Kelly, principal deputy assistant secretary of state, Bureau of Political-Military Affairs, US Department of State, told the recent Combating Piracy event organised by Hanson Wade that progress in the apprehension and prosecution of
pirates and their financiers was being made with some 1,000 pirates being held in 20 countries. Further progress was needed in increasing prison capacity in Somalia and easing the burden on Kenya and Seychelles that had accepted pirates for prosecution. Kelly told delegates that flag states needed to consider prosecution of pirates with merchant mariners being allowed to participate in the trials of their tormentors and companies shouldering the cost. Doing so would increase the cost of releasing pirates without trial. With respect to targeting pirate networks, he said that those captured at sea were low-level operators. Meanwhile, there was greater need to prosecute the masterminds and focus on pirate networks ashore, including identifying and apprehending pirate conspirators who lead, manage and finance these groups. Working Group 5 of Interpol and the Regional Anti-Piracy Information Centre (RAPIC) in the Seychelles were important in this respect as they facilitated a fusion of information aimed at arresting pirate ring leaders.
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Kidnap and Ransom
The K&R policy is designed especially for shipowners whose ships frequently transit high-risk piracy areas. It extends to all associated expenses, including loss of hire, loss of ransom in transit, crew liabilities arising from kidnap, legal expenses and the cost of crisis responders. The club will handle claims resulting from the piracy cover, with the assistance of Hiscox Syndicate 33 at Lloyd’s. Ransom negotiations will be managed by Control Risks. Ransom payments and associated expenses cover will normally be limited to $5m per insured event and $2.5m for loss of hire, although higher limits can be arranged. Negotiator’s fees and expenses are not included in the limit. Limits go up to $10m. Loss of the ransom in transit does happen, he says, and the cost of getting the ransom to its destination is high. In addition, the cost of employing a negotiator can prove very expensive. Costs of medical expenses dovetail with the traditional crew cover provided by the club. The kidnap and ransom provider is the club, not the commercial market, so there is no possibility of a dispute between insurers as to whose responsibility it is to pay for some of the crew-related costs. Counselling for crew is also included.
Ransom negotiations, a key dynamic in successful resolution of piracy incidents, are co-ordinated by the club, “which brings in the club claims philosophy of proactivity and close communication, instead of the current fragmented approach involving several underwriters”, Drummond says.
Providing kidnap and ransom cover is a trailblazer for a P&I Club. Sandra Speares talks to Robert Drummond of the Standard Club about its new product
lthough there may be differing opinions on the legality of paying ransoms in piracy situations, they appear to remain the only solution at present to obtain the release of hostages taken by Somali pirates. As P&I Clubs are owned by and for the benefits of owners, the Standard Club decided to start offering kidnap and ransom (K&R) cover, to be able to be centrally involved in protecting its members’ interests in this area. According to business development director Robert Drummond, in the months since the club announced the new cover it has had “an incredibly good reception. Interest was generated straight away and we got an order within the first two weeks. Just from speaking to members generally, we have found that they really like the idea of buying it through the club because they are very familiar with the club. This
This means the club is able to assist throughout the process as well as with the settlement of the claim, he says.
means they have a friendly face to deal with when faced with a seizure of their ship.” Is the popularity of the Standard product due to owners’ familiarity with the club? “There are a lot of players in the market and a lot of competition,” Drummond says, but he maintains price is not the only issue. “Owners are very familiar with dealing with clubs and if the club has a participation, which we do because the club is underwriting part of the risk, there is that added comfort that the club is there to help out.” Drummond declines to put a figure on club participation, saying that most of it is insured, but the club retains part of the risk. Most K&R that is purchased is 100% underwritten by one insurer, he says. The Standard’s partner is Hiscox, which is a market leader and has been underwriting K&R policies for 30 years, according to Drummond.
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Other clubs have associations and they can assist in the arrangements, but none are actually underwriting the risk, Drummond says. “We have broken the mould.” He says he doesn’t know if other clubs will start offering a similar service. “Most owners already buy a lot of ancilliary covers through their club because then they get the club service on top of it. We are adding this to the suite of covers that we can provide. We are a club and not out to make a fast buck – we are here to provide the most appropriate service that we possibly can to make life less difficult in what are challenging times for shipowners.” The legality of paying ransoms is a topic that is constantly under review by the club to ensure it does not breach any national or international regulations. “We are keeping abreast of changes because there are question marks particularly in the US and the EU,” Drummond concludes.
suffered main engine damage and the owners said it was not possible to repair the vessel within a reasonable time, claiming the hull value plus IV. “There was enormous commercial pressure to settle that at the full amount,” he says. The end result was that the vessel was repaired for a fraction of the sum claimed. “Where there is hefty IV, there is massive pressure on brokers from owners, and also some less reputable surveyors, to push for a CTL when the vessel is not a CTL.” The other part of the problem, he says, that you are then left with a vessel that although it is a CTL in terms of the policy, it is not actually an economic CTL, but a viable asset with a significant value. In the case of a specialised vessel. “There is often a degree of reluctance on the part of the assured for the insurer to sell the vessel on the open market to realise its full value because that sale could mean a sale to a competitor,” says Davis.
Total wipeout Constructive total loss and increased value policies have been a matter for much discussion, not least in the light of the Fairway judgment, while war risk policies could be affected by the time ships are being held in captivity following piracy incidents CTL claims The proportion of hull cover and increased value of vessels is changing and this may have serious consequences in Constructive Total Loss (CTL) claims. According to Alex Davis, a partner with law firm Stephenson Harwood, more and more vessels are being written with “chunkier increased value elements to the cover”. Taking a $100m vessel, traditionally there would have been about $80m hull cover and $20m increased value. “Because you can discount
IV more, the proportions between the two are changing so you are seeing lower hull values and a greater increased value proportion. The problem with that is given that the IV layer only responds in the event of a constructive total loss. “If you have damage to a vessel and the shipowner is struggling financially, the incentive to get a CTL and the cherry on the top represented by the increased value element of the policy is significant, so you have massive pressure to agree CTLs when it is not appropriate” He gives as an example a case where there was a significant IV percentage on a vessel that had
According to Davis, the issue is to try and get a mechanism to protect underwriters rights to the vessel when they are contemplating paying a CTL and then when they do, having some mechanism to produce a fair value of the vessel and ensuring that the funds come back to the insurers after they have paid . “Following the Fairway, there is a degree of uncertainty as to whether underwriters are actually entitled to those funds before they elect to take possession of the vessel. Electing to take possession of a vessel which may have liabilities is a particularly unattractive prospect.” Davis says Stephenson Harwood had been trying to put together wordings that on the one hand “write decent surveyors into the policies so that when the surveyor comes along and says ‘this vessel is a CTL’ you can actually have faith in that”. The second limb is having a mechanism that protects the underwriters so that they can re-coup a reasonable value for the wreck. In cases where there is a small market dominated by a number of players, there needs to be a means of valuing the wreck to the benefit of underwriters. Stephenson Harwood has drafted a fair valuation clause that has met with a fair degree of acceptance in the market, Davis says.
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Don’t rely on mere belief in your PMSC!
Certified quality precedes increased reliability and legal certainty, leading to better protection and higher cost efficiencies for shipowners and charterers.
Gesellschaft für maritime Risikobewertung und Qualitätsbemessung mbH Herrlichkeit 5-6 | 28199 Bremen | Germany Telephone: +49(0)421 5907-140 | Telefax: +49(0)421 5907-4140 www.mrquality.de | Email: email@example.com
Six month detainment clauses While there has been a reduction in the number of successful pirate attacks in recent months, law firm Holman Fenwick Willan has pointed to one possible problem relating to war risk policies as a result of a vessel being kept in detention. In its on-line marine insurance publication, HFW warned that while the number of vessels being held has fallen, those crew members who are still being held will probably be in captivity for much longer periods of time, with all the humanitarian consequences a longer captivity will entail. It also warns that “there is an unexpected consequence of the increasing periods that Somali pirates are holding vessels, in particular the impact on owners’ war policies that can also prove commercially very important. “Under many of the standard sets of H&M terms, there is provision for what happens in the event of a detention of the insured vessel. For example, Clause 84.1.6 German DTV-ADS 2009 provides as follows: “If the vessel is seized by pirates for a period of
more than 12 months, the insured may request payment of the sum insured.” The insurance bulletin adds that section 1511 of the 2007 Version of the 1996 Norwegian Plan contains the wording: “If the ship has been captured by pirates or taken away from the assured by similar unlawful interventions, for which the insurer is liable under section 2-0, the assured may claim for a total loss if the ship has not been recovered within 12 months from the day the interception took place. “Some policies take this provision even further by making the detainment of the vessel for a specified period of time a deemed total loss,” HFW says . For example, clause 3 of the Institute War and Strikes Clauses Hulls 1/10/83 provides as follows: “In the event that the vessel shall have been the subject of capture seizure arrest restraint detainment confiscation or expropriation, and the assured shall thereby have lost the free use and disposal of the vessel for a continuous period of 12 months then for the purpose of ascertaining whether the vessel is a constructive total loss the assured shall be deemed to have been deprived of the possession of the vessel without any likelihood of recovery.”
According to HFW: “In the early days, these clauses were of no consequence in a Somali hijacking and for several years attracted no attention. However, as the length of the detention period by the pirates has increased they have come under closer scrutiny. For historical reasons these detention clauses have frequently been amended from the standard position of 12 months to six months. Prior to the upsurge in piracy this reduction was seen as an uncontentious concession by underwriters. “Given the gradual increase in the duration of Somali hijackings, the likelihood of a vessel falling within the provisions of one of these amended detention clauses is more and more likely. We are aware of several cases where owners are seeking to make claims under their war policy for a total loss where the vessel has been detained by pirates for more than six months. “Where a six month deadline has been inserted, as this deadline approaches with the ship still held it can give rise to tensions between owners and underwriters as to the status of the vessel after the deadline passes and how this might impact on the hostage negotiations, bearing in mind that the welfare of the crew should be of paramount importance to all parties.”
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Corporate viewpoint POLICY & FORUMS 38
Armed Guards on board: Shipowners’ needs and headaches MRQ (www.mrquality.de) is an affiliated company of the Lampe & Schwartze Group (which is a marine underwriting agency founded in Bremen in 1858). MRQ specializes in the assessment of maritime threats and risks by means of providing certification and auditing services, risk-consulting as well as developing methods to optimize all safety-relevant measures
ow to achieve quality and cost efficiency regarding the use of armed guards: Although piracy attacks and hijacking incidents have decreased in a year on year comparison since 2010, piracy related risk implications still remain high. These risk implications are due to the following factors: • Improvement in intelligence, communication, armament, tactics and skills concerning detection, approach and boarding/capture of a vessel. • Continuous expansion of the operational area. • An escalation of violence which is spreading across other High Risk Areas of the world, especially along the coast of West Africa where armed robbery and fast-money making strategies are prevalent. • Pirates have become increasingly efficient concerning the correlation of the number of hijacks and the amount of ransom demanded.
In the upcoming years world trade will grow resulting in a considerable increase in the size of the piracy-threat map. This development will lead to an expansion in the maritime security sector. In addition to this, the international community of states will reduce their armed forces in many vital high-risk areas. This gap in security will re-enforce the need to focus on the continuous improvement of alternative security structures. Therefore, in order to meet the high responsibility of owners for protection of their crews, vessels and shipments the use of private maritime security companies (PMSC) will increase substantially. The deployment of privately contracted armed security personnel (PCASP) on board merchant ships has continuously proven to be the most efficient and effective instrument among all security measures to avoid, defend against and control piracy and armed robbery attacks.
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Unfortunately, up to now, neither insurance providers, shipping companies nor charterers have adequate instruments to verify and assess the quality of PMSC. Everyone relies on various “secret lists” of PMSC, which are passed on from broker to client and vice versa. It is common that market players use (often without giving prior notice to the client) subcontractors who simply function as a temporary employment agency, because there is a high fluctuation in the market and most guards work on a freelance basis. Currently, there are approximately 200 PMSC operationally active around the globe, without any independent body offering verification of the professionalism and competence of the companies and more importantly of the PCASP involved. This situation is no longer acceptable or indeed sustainable. Shipping companies are operating in the midst of a global financial crisis with shipping at an all-time low. What shipowners require is reliable advice and the appropriate tools to select PMSC to consistently achieve high-quality
action on board. The most essential skills are the psychological abilities of armed guards to operate in an environment and under circumstances that require self control, the ability to adapt and to focus. The quality management process is based upon the interdisciplinary knowledge of an expert platform which MRQ has established comprising of leading universities, private diagnoses institutes, governmental bodies, tactical instructors, former team leaders, maritime and nautical experts, lawyers and a ship classification society.
“MRQ will thoroughly prepare PMSC for the successful completion of the German licensure process for armed security personnel” Georg Klöcker, Managing Director, MRQ
standards in the most cost-efficient manner. The MRQ solution is to offer a unique product to control risks and costs by the implementation of a vetting tool encompassing not only the PMSC but crucially the operational personnel as well. In 2013 the governmental licensure process of PMSC for the German flag will be launched. MRQ offers assistance to PMSC to
“Certified quality precedes increased reliability and legal certainty, leading to better protection and higher cost efficiencies for ship owners and charterers” Sebastian Hons, Managing Director, MRQ
prepare for and to fulfill all legal requirements. Furthermore, we provide expert guidance to successfully complete the processes of the German public authorities. Quality and cost efficiency is obtained by the implementation of a certification and vetting tool as an integrated quality management process to assess the quality of PMSC, and to verify the performance of the PCASP in
This certification and vetting tool includes the following added values: • It will enable shipowners, charterers and insurance providers to gain a close and detailed view of all threats and risks with the benefit of high and consistent quality standards of security services at competitive costs. • Verification, certification and vetting of performance leads to transparency of the quality on offer, which again promotes competition. Competition will stimulate quality and regulate pricing for security services by the mechanisms of market forces. The effect will be market driven prices related to the clients, not the providers, needs.
For further information: firstname.lastname@example.org
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Interview As well as proper equipment to get trapped crew out of enclosed spaces, training is also needed
eaths or injuries resulting from exposure to dangerous gases in enclosed spaces are nothing new, but what is of concern is, despite repeated warnings and ample information on the topic, they continue to occur. Mines Rescue Marine’s parent, The Mines Rescue Service (MRSL), has been in the business of rescuing workers from enclosed spaces for over 100 years. The uniformed service started by government legislation, as the service’s name suggests, to rescue workers from the mines following pit accidents, and extended, as the mining industry in the UK declined, to other industries and three years ago, to the maritime industry. As its technical advisor Captain Michael Lloyd explains, providing this kind of 24/7 rescue service is very expensive, so with the mines closing it was extended to others like the nuclear power industry and water services, among others, and following a presentation to MRS by him in 2009, the company decided to launch a marine division. The presentation, he says, left the Service “disturbed” at the lack of adequate safety practices for enclosed spaces in the maritime industry.
Enclosed spaces: bringing the dangers into the open The death of five crew members on Varun Shipping Company’s LPG carrier Maharshi Krishnatreya on 5 November has highlighted the on-going concern over deaths in enclosed spaces. Sandra Speares talks to Michael Lloyd, technical advisor to Mines Rescue Marine, about how to tackle the problem Maritime Security International
One of Mines Rescue Marine’s concerns has been on tank design and the division produced a paper for the Royal Institution of Naval Architects on the topic. “We see the enclosed space as being like the fire triangle. We refer to it as the enclosed space box, which consists of culture, training, equipment and design. You cannot deal with the problem with just three. All four have to be tackled at the same time.” He cites as an example the size of manholes, which have not changed in 100 years, despite the fact that people trying to go down manholes are today physically bigger and wearing breathing apparatus. “Nobody in the chain of command, starting off with the owner of a company that wants a new ship, all the way through, nobody has questioned why we are making the hole that size. We have a saying that you don’t send people into a space that you can’t get them out of,” he says. He explains that when crew go into the enclosed space, the equipment should be there to get them out if necessary. In the event of an emergency, many ships are unable to rescue such crew in time. “Only a small proportion of ships have adequate rescue equipment,” he says. “So how are they getting them out? On a bit of rope?”
Interview Captain Michael Lloyd He attended the training ship HMS Conway and first went to sea in 1957. During his 50-year sea career, he held a number of shore appointments and commanded an extensive range of ships for 35 years, including ice class, container, bulk, deep sea towing, passenger, OBO’s and offshore support ships in the North Sea and Nigeria. He served in the RNR for over 35 years and was awarded the Merchant Navy Medal in 2010. During his career, he has written many papers and articles on a wide variety of nautical matters. He is the author of several books on seamanship, ice navigation, marine law and command. He is a Fellow of the Nautical Institute, Younger Brother of Trinity House and sits on the court of the Honourable Company of Master Mariners. He is currently the Marine Adviser to Mines Rescue Marine.
As well as proper equipment to get them out, training is also needed. Lloyd believes there are very few deep sea ships operating with a trained rescue team. The only legislation in existence to cover such an area, he says, is for ships over 1000 tonnes, which must have periodic drills. “A drill isn’t training – you have to be trained first before you do a drill. A drill tests and proves that the training is adequate for that ship at that time, with those people.” At the moment, Lloyd says, the number of organisations that can provide rescue training is limited. In many cases, trainers depend on fire brigade staff. While they are obviously extremely competent to deal with fires, their training and equipment is not specifically aimed at enclosed spaces, which require different equipment and techniques. However, MRSL trains many fire brigades in enclosed spaces. This is not training for them to be instructors, but to learn about enclosed spaces for their own safety. Lloyd says Mines Rescue Marine advocates training and equipment, but marine legislation is lagging behind. While SOLAS dictates what training has to take place, SOLAS should be considered as the base, and not the Bible, he maintains. “All marine organisations are allowed to improve on SOLAS requirements, but unfortunately in the race to attract owners to national registries, administrations like to keep their additional requirements to as little as possible Amendments to SOLAS will come, he says, as there is an awareness of how many people are being killed in enclosed space incidents. The good side
of the equation, he says, has been the oil and gas industry, which has been very responsive and has put in place systems that are better than those in other parts of the industry. One result of the 1988 Piper Alpha accident which killed 167 personnel, was to move safety requirements for the offshore platforms in the UK under the aegis of the Health and Safety Executive, Lloyd explains. The HSE enforces higher standards than those imposed under the current MCA requirements. This has created an anomaly between requirements for ships that are servicing offshore installations and are covered by MCA requirements and the platforms that have training and have responsibility for enclosed spaces under health and safety legislation. Adminstrations such as Australia and the US have introduced their own requirements, which are also ahead of those required under SOLAS. “The next division comes when ships come into port,” he says. “In the UK, the HSE is responsible if an accident occurs while in port and different standards will therefore apply. In the event of any accident in port, the HSE would be in the position to prosecute if required – a state of affairs that might not have occurred to shipowners.’ ‘While a contractor coming onboard ship to work in an enclosed space could be expecting the same rescue service as would be required under HSE legislation, that might not be forthcoming,” Lloyd says. “In the absence of an emergency team to deal with an enclosed space alarm, only four minutes could mean the difference between life and death
and a shore-side call out, however rapid, would not be able to meet the time frame.’ “How the issue is dealt with depends on owners and it is always the top companies that lead the way,” Lloyd says. “Together with Videotel International, we have made a very good six-part DVD series on the enclosed space issue and there is plenty of information available from other sources, but in the absence of compulsory requirements, owners don’t have to put an enclosed space management system in place.” He estimates that it would cost around £6000 to train and equip a four-man rescue team for a ship, but says that many owners are not even prepared to invest in oxygen detectors or defibrillators that cost substantially less than this. Mines Rescue Marine has, for the past few months been working on an Enclosed Space Management System for the industry, which is designed to simplify the on board organisation, provide better cover for both crew and contractors and cover the responsibility gap between the two workforces. The system will be ready for release to the industry within the next few months. As crews are reduced in size and ships become larger, the issue of the lone worker entering an enclosed space continues to be an increasing possibility. The death of seafarers, because of a failure to provide proper training and equipment is unacceptable in the 21st century, especially when this essential training and equipment is so readily available.
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Seafarers can suffer symptoms of trauma after being in captivity
were given proper support by friends, wives, family members, company representatives and welfare providers, such as chaplains. They did not develop PTSD and many told us: ‘At the end, we came out of this as stronger people’. And ,indeed, when you hear what they had to face, what kind of challenges they had to struggle with, how they dealt with ignorant and stupid captors, then the only right thing to do is admire and support them. “They are not traumatised or damaged for life, their spirit is not broken, although during the hostage period they were going through a period of great stress. In fact, most of the seafarers affected by piracy went back to sea, but not sailing through pirated waters anymore. We like to call them survivors. We know that a minority, which has not been researched well, needed specialist therapy. They are the real victims. To treat all seafarers, who have suffered from piracy as victims is not what they deserve.” The Seamen’s Church Institute of New York put in place a clinical survey of the effects of piracy on seafarers in 2009 and the first results have just been published.
Under pressure As seafarers face the continued trauma of piracy attacks – such as the seven crew members from the Asphalt Venture who have been in captivity for over two years despite a ransom having been paid – what effect does it have on their lives?
ather Gabriele Bentoglio, undersecretary of the Pontifical Council for the Pastoral Care of Migrants and Itinerant People, commented ahead of the Pope’s address to the Apostleship of the Sea international congress that: “Piracy strikes deep into the lives of seafarers and their families, provoking tension, fear and other traumatic effects in the long term.”
Commenting on a report in the AOS America newsletter, which indicated that all seafarers held by pirates would develop PTSD, Maritime Piracy Humanitarian Response Programme assistant programme director Toon van de Sande said he felt there was too much emphasis on PTSD, although in three years of talking to seafarers who had been involved in pirate attacks, many seafarers who dealt with piracy suffered from stress.
Whether or not every seafarer will suffer from post traumatic stress disorder (PTSD) as a result of these experiences is a matter for some debate.
“Every normal human being would suffer from extreme stress in similar abnormal situations. After the ordeal of piracy most of the seafarers
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The report suggests there were a number of factors that complicated the study, not least because of the absence of literature on the topic, which made it difficult to establish a baseline for normal stress among seafarers. The report also suggests that seafarers’ self-reliant culture tends to stigmatise mental illness, meaning seafarers don’t want to admit to feeling mentally unwell. Some 154 seafarers were interviewed for the survey with ages ranging from 18 to 63 and seagoing experience of between one and 38 years. Of those interviewed, 11 had been held in captivity and 14 had witnessed attempted boardings. Of those 25 seafarers, they showed symptoms after the event of concerns about returning to work, sleep disturbances, diminished energy, increased use of alcohol and, in a few cases, thoughts of suicide. Most of those interviewed said they felt they had not received adequate mental preparation for voyages through the danger zones. Less than one third felt they had received adequate follow-up care and seafarers from the Western hemisphere received more post-event care than those from the Eastern. Seafarers also expressed concern about disclosure of medical records and fears of being blacklisted by the industry.
Seafarers The International Maritime Health Association is working for high health standards
review every three years. A directory of those who are accredited and those working towards accreditation will be publicly available. Dr Suresh Idnani, President of IMHA said: “Both seafarers and their employers are often unhappy with the quality of available maritime medical services. IMHA quality is a win-win initiative. Ship operators using accredited providers will know the medical advice they receive is sound. Seafarers will know that they have received care or decisions on fitness that are in line with the best professional and ethical standards when they are seen by an accredited provider. Good doctors and clinics will receive recognition for the quality of their practice, which will both help them and also improve standards in their professional speciality of maritime health practice worldwide.”
Setting new standards for seafarers With a new initiative to ensure the health needs of seafarers in the world’s maritime sector are better met, the International Maritime Health Association is aiming for high health standards for all
he first phase of a new health service for seafarers provided by IMHA Quality (an independent, not-for-profit body), will be a quality assurance and accreditation system for the conduct of seafarer medical examinations. This will cover both those who are required to issue statutory medical certificates and the pre-employment examinations of ship operators and their insurers. Since 1997, the International Maritime Health Association (IMHA) has provided a forum for those working to improve maritime health. It has developed this new initiative to help the maritime sector answer the following questions: »» How good are the medical services available to seafarers worldwide? »» Do they deal reliably and ethically with seafarer health problems? »» Do they ensure that health risks are identified and acted on?
The maritime industry is used to quality assurance, for instance using ISO standards, but it is generally recognised that such standards are not suitable for clinical care, where complex professional judgments are needed and where peer review forms the core of quality assessment. The IMHA Quality standards are based on peer review and have been developed with one of the leading international clinical quality assurance organisations, IMHA says. Later phases will accredit port health clinics, repatriation and rehabilitation providers, shore-based telemedical advisory services and the provision of maritime occupational health advice. Doctors and clinics will sign up to an accreditation programme based on meeting a set of healthcare standards. Their progress will be reviewed by assessors with expertise in maritime health and when they comply with the required standards they will be awarded accredited status by an independent accreditation committee. This will be subject to
According to the IMHA, maritime health services worldwide perform some 500,000 seafarer medical examinations a year. Many thousands of seafarers are referred for urgent medical attention to port health clinics or benefit from medical advice obtained from shore-based telemedical services each year. Repatriation of ill and injured seafarers is a major cost and concern of ship operators and their insurers and can be the end of a seafarer’s career. Much illness in seafarers, including that caused by the risks of living and working at sea is preventable and, if prevented, can both reduce the risks to seafarers themselves and costs and operational problems for their employers. Long-term prevention can also help to ensure that a seafarer has a full career at sea and can then retire healthy. The IMHA says there have been concerns about the quality of seafarer medical assessment and advice for many years. Seafarers themselves are unhappy with the conduct of examinations, the lack of respect for their privacy and the scope for discrimination. Seafarers face frightening and sometimes avoidable illness and injury at sea that may require treatment far from home or repatriation and loss or earnings and employment opportunities for the future. Employers are worried that seafarers who are not fully fit for duties are working at sea and that this may lead to accidents of to the costs of referral ashore or repatriation. Maritime authorities are aware of inconsistencies in practice and in decision taking. To remedy this, a few maritime authorities and some employers or their insurers have set up their own quality assurance and approval arrangements, but these only meet the needs of one interest group and have limited penetration to the mass or maritime health providers, IMHA says.
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Corporate viewpoint POLICY & FORUMS 44
Flexible security services for the maritime industry
Aspida Maritime Security offers protection with Integrity
For more information, visit: www.aspida.org
ombining our Greek shipping heritage with British maritime security expertise, Aspida is an experienced private maritime security company (PMSC) offering risk mitigation services and physical protection to commercial vessels and yachts world-wide. Recognised for our professionalism, reliability and flexibility, we deliver straightforward, quality and viable anti-piracy services that are proven to protect. With added foresight from our associate intelligence providers, Dryad Maritime, we have an accurate picture of the threat landscape prior to and during every transit. This real-time insight of the current and expected threats in your immediate vicinity guides our onboard operations, influencing the level of protection deployed at any time and ensuring consistent restraint without compromising on protection.
for all firearms used by our teams. Our insurance policies are comprehensive and our services are recognised by leading underwriters, P&I Clubs and Flag States worldwide. With Aspida, your risk mitigation starts with comprehensive risk assessments, vessel audits, crew training, vessel hardening and citadel preparation, all conducted by our highly trained security teams. Embarking and disembarking with minimal disruption to your operations with all necessary arrangements
Aspida fully supports and proactively complies with all current regulations set by industry associations and governing bodies, including the standards set by: • IMO • SOLAS • BIMCO GUARDCON • SAMI • SCEG We are ISO9001:2008 certified by the American Bureau of Shipping, a signatory to the International Code of Conduct for Private Maritime Security Providers (ICOC PMSP) and hold UK Trade Export Licences and End User Certificates
Panos G Moraitis, Aspida CEO
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“Our reputation is evidence of our commitment to excellence in this area”
undertaken by us our teams provide your crew with practical support and added reassurance during this vital and often tense preparation phase. Once underway, your embarked team provides extra watch-keeping support and routing guidance using the latest intelligence to update the master with the latest threat picture. In the event of an escalation in threat, the security team will raise the alarm, assist the master in managing the response and, should it be necessary, defend the vessel. Our rigorous personnel selection is at the core of our business and forms the basis of our reputation for quality and professionalism. Our teams comprise of highly trained, well-disciplined security personnel with excellent communication skills and extensive maritime security experience. We believe our reputation is evidence of our commitment to excellence in this area and is what sets us apart as we continue to maintain these high standards.
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Armed embarked teams Security consultancy and procurement Risk assessments Vessel audits Hardening Training Countermeasures Intelligence
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implementation of SOLAS regulation III/17-1 to ships other than those engaged in international voyages. A draft new SOLAS regulation II-1/3-12 to require new ships to be constructed to reduce onboard noise and to protect personnel from noise, will be considered in accordance with the draft revised code on noise levels on board ships, also set to be adopted, which sets out mandatory noise level limits for machinery spaces, control rooms, workshops, accommodation and other spaces on board ships, and will supersede the previous code, adopted in 1981 by resolution A.468(XII).
Tools for the trade A raft of new standards and regulations aim to improve the working lives of seafarers
ill the Maritime Labour Convention (MLC) 2006 turn out to be a paper tiger? was the question asked by Cleopatra Doumbia-Henry by Apostleship of the Sea’s 23rd international congress in the Vatican. Dr Doumbia-Henry, director international labour standards department of the International Labour Office (ILO) in Geneva, said that the MLC 2006 was simply a tool that had to be used wisely. “But if not used or improperly used may be of little consequence – the so called ‘paper tiger’ – or may even cause harm, if only because it is then very difficult to mobilise the political will to replace an international instrument. “Therefore, the adoption after five years of intensive international consultation of the major new instrument, covering all most every issue related to seafarers’ working and living conditions and replacing 37 conventions and related recommendations, is only a starting point.” The MLC 2006, which will enter into force in August 2013, has so far been ratified by countries responsible for about 60% of world shipping. Dr Doumbia-Henry pointed out that the MLC 2006 relies on private, social or religious endeavours, such as Apostleship of the Sea, in ports where seafarers’ welfare facilities have not yet been established. However, any governments failing to promote the development of welfare facilities would be in clear breach of its obligations under the MLC.
Other issues on the agenda include draft amendments to SOLAS regulation II-2/10 on firefighting to require a minimum of duplicate twoway portable radiotelephone apparatus for fire fighters’ communication to be carried; and draft amendments to regulation II-2/15 on instructions, on-board training and drills, to require an onboard means of recharging breathing apparatus cylinders used during drills, or a suitable number of spare cylinders.
She added that the ILO is developing tools to assist in raising awareness of these issues and to advise governments on how to properly implement the requirements of the MLC 2006 relating to welfare facilities and seafarers in foreign ports. “We hope that these tools will be useful to institutions like Stella Maris in promoting this issue with governments.”
Draft amendments to SOLAS regulation III/19, on emergency training and drills, to mandate enclosedspace entry and rescue drills, which would require crew members with enclosed-space entry or rescue responsibilities to participate in an enclosed-space entry and rescue drill at least once every two months are also expected to be approved.
The International Shipping Federation has said that the low level of implementation of the International Labour Organization Convention 185, concerning the facilitation of shore leave and crew transits, is a “continuing source of disappointment”.
The draft amendments are aimed at enhancing the protection of seafarers’ lives by requiring drills be held to ensure that seafarers are familiar with the precautions they need to take prior to entering enclosed spaces and also with the most appropriate action they should take in the event of an accident.
Speaking in Manila at a seminar organised by the International Federation of Shipmasters’ Associations (IFSMA), ISF director of employment affairs, Natalie Shaw explained that the ILO Seafarers’ Identity Documents Convention (ILO 185) – which ISF helped to negotiate on behalf of employers in 2003 – was adopted as part of a package of measures following the terrorist attacks in 2001. “The wide ratification of the Convention would have materially assisted the welfare of seafarers as well as addressing the security concerns of port states,” said Shaw. Also on the agenda were draft amendments to SOLAS regulation III/17-1 to require ships to have plans and procedures to recover persons from the water, as well as related guidelines for the development of plans and procedures for recovery of persons from the water. Also, a related draft MSC resolution on
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The MSC is expected to approve the draft IMO Instruments Implementation Code (III Code), which sets the standard for the IMO audit scheme, and approve draft amendments to the following treaties to make the III Code and auditing mandatory: International Convention for the Safety of Life at Sea,1974, as amended; the International Convention on Load Lines, 1966 and its 1988 Protocol; the International Convention on Standards of Training, Certification and Watchkeeping1978, as amended, and the Seafarers’ Training, Certification and Watchkeeping (STCW) Code; the International Convention on Tonnage Measurement of Ships, 1969 and the Convention on the International Regulations for Preventing Collisions at Sea, 1972, as amended (COLREG 1972). The aim is to adopt the treaty amendments in 2014, once the III Code has been formally adopted by the IMO Assembly, in 2013.
Piracy deterrents Guardian is offering a safer alternative to razor wire
The product was then tested at Warsash Maritime Academy at Southampton offering two ex-Royal Marines a £100 bonus if they could get over it. They didn’t get the bonus after two hours trying with a roofing ladder and a grappling hook. Stevens said there were a couple of comments along the lines of “we don’t think they were trying very hard” and “my girlfriend says she can get over it”. His answer was “bring your girlfriend around any time you want because if she is that fit, I’d like to meet her!” Following the test, Robert Twell, company security officer at CMA Ships UK, said it intended to fit Guardian on all the company’s vessels that were transiting the piracy danger zone and this has now happened. MASS has also fitted the system to nine Maersk ships, with interest from other operators like MOL and NYK. “The reports we have had back from the captains and crews of the vessels we have fitted have all been that they like it and they are very happy to have got rid of the razor wire.”
Preventative measures Effective deterrents against piracy come in many forms. Here, we look at some recent newcomers to the market that offer innovative solutions to the problem of preventing pirates boarding a vessel Guardian on board David Stevens, director of Marine & Auto Security Solutions (MASS) believes that the company’s Guardian project will eventually replace razor wire on most ships – “certainly the ones that care about their crews”. The company has been involved in anti-piracy for several years and started its Guardian project last November. Guardian works by covering the ship’s safety rails with 1000mm wide sections of a specified grade polymer that lock together. The product is rotomoulded – a way of manufacturing plastic items. “We fitted our first units to a CMA ship in May
this year,” said Stevens. “We basically agreed they could take it out to the Middle East on the ship and test it.” One test was to see how the product reacted in the heat and how it would react to being hit. “The crew had a good time hitting it with everything they could. It came back with some scratches on, caused by the sharp end of a fire axe. If it can stand up to that, it can stand up to anything.” While a bullet round would get through it, it would just make a neat hole, but wouldn’t ignite around the hole, Stevens said. “The crew loved it,” said Stevens, so CMA then decided to have a ship – the CMA CGM Bellini – completely fitted out with Guardian.
In terms of cost, Stevens estimates that ships that remove razor wire and install Guardian will see the product pay for itself in 18 months. It has a minimum life of five years, and Stevens believes it will last considerably longer, but because of the conditions it is used at – Guardian has the highest UV factor that can be used in plastic – the guarantee period is five years, after which the colour may begin to fade, although the product is still safe. Another point he mentions is that an average height person standing one metre behind the barrier could not be seen from the sea as Guardian is 1.2 metres high. “If you are standing behind razor wire you are visible,” said Stevens. “However, if you have Guardian installed and an armed security guard standing on board, what can’t be seen can’t be shot” – the security guard would be more than capable of dealing with pirates without the risk of getting shot. MASS has been talking to insurance underwriters about Guardian, Stevens said, and discounts of the order of 15% have been offered on hull and machinery policies, if Guardian is fitted. Guardian does not need to be removed when a ship enters port and entry has not been refused to ships using it, Stevens said. “A lot of port authorities have gone on board and when told by the master what Guardian is for, have gone away saying it’s brilliant because it is not going to hurt the stevedores or port workers. How much better can it get?”
Maritime Security International
Controlling risk Control Risks has launched an innovative new web-based maritime information portal. Control Risks Maritime Security Online, designed to help companies identify, assess and mitigate risk in the maritime environment. This fully integrated on-line platform provides a range of options to monitor, evaluate, predict and analyse all incidents, trends and developments in the global maritime sector. Companies will have access to a consolidated set of data to assist them in evaluating the risks to their maritime assets, whether these are vessels or static assets. The service can also be tailored so subscribers only receive alerts and analysis which are relevant to their activities. Some of the key features of Control Risks Maritime Security Online service include: »» Interactive mapping »» Forecasts, advisories and analysis »» Alerts for journeys, assets and monitored areas »» Journey planner
»» »» »»
Static asset and area monitoring Vessel tracking Port risk ratings
Tom Patterson, maritime risk analysis manager for Control Risks, commented: “Control Risks Maritime Security Online is an unparalleled information service in this market, providing companies with unique access to the most comprehensive range of not only up to-the-minute data, reports and analysis but also the capability to track and monitor events. “Through this accessible, dedicated portal, chief security officers, operations and risk managers are able to scope out the breadth of critical information they require in the planning of their maritime activities,” he concluded.
Watching the waves Another recently launched, non-lethal defence against maritime piracy was unveiled in September. The WatchStander system was originally developed for the US naval fleet, but has been modified for use by commercial vessels, cruise ships and yachts.
Developed by the Applied Research Laboratory of the Pennsylvania State University, WatchStander obtained a license from ARL in 2011 to adapt the technology for seagoing commercial vessels. The system uses radar to detect all targets within effective ranges using a mast-mounted SIMRAD 4G radar scanner with a detention range of up to 40 km. The system tracks everything that it detects and then analyses the tracks. It automatically determines which tracks are likely to be pirates and alerts the master and crew if an observed vessel conforms to the known pattern of pirate pursuit behaviour. Automated defensive response then follows. This response includes the ship sounding a siren, warning pirates by loud hailer and deploying 12 million candlepower light cannons to track and focus on the pirates. The closer the skiffs approach to the targeted vessel, the more measures will be deployed. These include a PeakBeam strobe light that exposes pirates to the risk of temporary blindness, if they continue to approach the vessel. Alternatively, directional ‘warbling’ loud hailers
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Piracy deterrents Co-founder Ron Lichtman added: “although WatchStander can be an extremely useful tool for armed security guards, it is a fully automated system that defends vessels without the need for human intervention. “We expect shipowners, captains, private security companies and the industry to welcome WatchStander with open arms”. he concluded. The company expects its installation to become a standard requirement by underwriters in the next few years because of its potential to reduce risk. The system was recently tested in a number of real-life simulations, which took place in Chesapeake Bay in Maryland. WatchStander is being marketed on a lease or purchase basis, with a lease fee of between £5,000 and £15,000 per ship per month on a five-year contract. Financial backing for the new venture has come from Toney Capital Holdings.
Light fantastic Another product using laser technology is Lasersec Systems’ SeaLase, which is a high-power, non- lethal laser light source operating in the visible spectrum that can be used to deter and prevent the approach of potential threats such as pirates and criminal forces. This makes it ideal in the anti-piracy role for superyachts, commercial vessels, offshore platforms, ports and naval forces.
could be used to emit sounds at decibel levels that are uncomfortable, but would progressively prove intolerable and finally expose attackers to the risk of hearing damage, the company says. If the pirates succeed in approaching through the sensory barrage to within 200m of the ship, this will be recorded on video, which the company says will weaken their stance if an attack should come to court and video evidence is produced to show that they continued to approach the vessel despite being warned off. The new system was endorsed by maritime security and operations consultants Flag Victor in October. Flag Victor put the system through an audit and performance assessment before giving it the thumbs up. According to Admiral Mark Fitzgerald, former commander of the US Naval Forces Europe and US
Naval Forces Africa: “I’ve been aware of this type of surveillance, recognition and defence technology for some time. The fact that it can now be used to defend the world’s commercial fleet is a major leap forward in the fight against maritime piracy. “It is the perfect example of how military innovation can cross over to deliver a very important new civil purpose . The development teams have shown the benefits to be derived from collaboration”. According to WatchStander founder David Rigsby: “The answer to piracy has been eagerly awaited by the maritime industry. The strategies being used a present are piecemeal, uncoordinated, cumbersome or hugely expensive. The focus has generally been on either sensors or countermeasures with little or no effective integration of the two, until now. This one-off technological installation prevents pirates getting on board ships and will change the course of maritime history.”
SeaLase is effective out to a range of 2000m (2.5m beam) in daylight and 4000m (4.5m beam) at night, much greater than conventional small arms. “Anyone caught in the SeaLase beam will experience co-ordination difficulties and discomfort. LaserSec’s visible laser beam causes discomfort and confusion for targeted individuals,” the company said. SeaLase is geared for the marine environment. The base unit can be safely installed in a protected area and connected to the transmitter, up to 100m away, via fibre optic cable. The transmitter can be configured in a variety of ways including handheld “gun” units, or integrated into camera and thermal imaging systems. The power requirement is 85-240VAC, 12VDC or 24VDC and other options can be andled on request. Peak power consumption is 200W. SeaLase is built to military specifications and
Maritime Security International
‘Very good! come back next year.’ P Nielsen, Danish Ship Finance
‘I gained a lot out of this event. most of the topics have been very interesting for my work.’ S Claussen, Imtech Marine
10% DISCOUNT QUOTE VIP CODE: FKT2445MSAD
ST 2013 GREEN SHIP TECHNOLOGY ANNIVERSARY
Tuesday 12, Wednesday 13th andThursday 14th March 2013 Radisson Blu Hotel, Hamburg, Germany The most important green ship technology event in the industry calendar: Over 350+ professionals attend GST annually 100+ expert speakers, featuring international industry leaders 10 years’ experience in delivering the largest green ship technology event 6 dedicated streams on green ship design, technology and operation Join your colleagues at GST 2013 and discuss the most important green ship technology challenges shaping the success of your business and focus on future opportunities. A must attend event for all shipping stakeholders concerned with improving the marine environment. • Hear from leading shipping industry speakers on their strategies for improving the maritime environment • Focus on key themes of reducing emissions and maintaining energy efficiency • Analyse the impact of new regulations such as EEDI and SEEMP • Discuss the shipowner/operator perspectives on meeting the operational and regulatory challenges for ballast water management and scrubbers
NEW FOR 2013
• Learn from the latest ship design options and technology for greener shipping • Benefit from in-depth discussions for LNG and other alternative power sources • Gain detailed knowledge of ports and terminals’ developments in improving environmental performance • Understand the challenges of financing new technologies
More indepth workshop sessions and case studies on emissions management, energy efficiency and scrubber technology
For further information on the programme or to register please email firstname.lastname@example.org call +44 (0)20 7017 5511 or visit http://www.informamaritimeevents.com/FKT2445MSAD Organised by:
du Pré Marine will assist those who wish to install it with precise requirements depending upon application.
Jet setting Tanktech, in collaboration with MOIM CONSULTING, has developed the PSJ1008 (Piracy Solution Jet gun) system. PSJ1008 is an innovative water-jet system that defends vessels against forced boarding by pirates. It consists of two water jet guns mounted on the shipside, rotating 90 degrees and continuously shooting a high pressure stream of water. It can be installed on all kind of vessels and is especially suitable for oil, chemical, LPG and LNG ships as it is intrinsically safe. PSJ1008 is easy to install and operate because it uses the existing facilities of ﬁre-ﬁghting pumps, pipelines and hoses. Therefore, no additional installation is required onboard the vessel. However, special hoses can be supplied for the machine on demand.
Tanktech has various series for PSJ1008 and the machine can be customsed according to the need of the customers
sure water jets around a vessel. Thus, crew safety and morale is enhanced, while fleet operations are optimised.
Dasic Marine’s Nemesis 5000 has received a top safety accolade in Kuwait.
As Al-Shatti commented: “the crew feels the security and tranquillity sought by KOTC because this device reduces piracy operations and its risks. This project saves time, effort and fuel.
KOTC engineer and team leader of the KOTC Purchasing Group, Nawaf Al-Shatti has been awarded the top prize for pioneering the introduction of the UK-manufactured boarding deterrent across the Kuwaiti tanker fleet.
“For example, where KOTC’s vessels used to in recent times, with the escalation of piracy, use the Cape of Good Hope, which used to take 31 days, they now use the Suez Canal, which takes about 18 days to cover the same distance.”
The project was hailed as achieving “great strategic benefits” for KOTC and KPC.
The Anti-Piracy collaboration with Dasic Marine began in January 2010 with the successful sea trial of Nemesis 5000 on board the Al Salheia and was quickly rolled out to sister ships.
The competition, run by the state- owned Kuwait Petroleum Corporation, reviewed 63 projects across areas of health, safety and the environment before shortlisting the winning initiatives. Nemesis 5000 topped the awards by being a highly effective unmanned system. It maximises existing vessel utilities to deter boarding by producing a constantly moving defensive curtain of high-pres-
In 2011, Dasic Marine was also shortlisted and highly commended for its contribution to Safety At Sea at the 23rd Annual Seatrade Awards. Nemesis 5000 System is now installed on several major international, commercial fleets with ongoing discussions in progress for further projects.
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Overcoming the financial, practical & technical inhibitors to LNG fuelled shipping success 18 - 21 February 2013
Exclusive savings for Ship Owners/Managers
Expert speakers include Koos Blaazer CEO, Oil & Gas LNG Europe
Benefits of attending • Identify the optimum time to invest in LNG fuelled shipping to gain a competitive advantage: Turn the theory into practice
Thomas Meier-Hedde Managing Director Reederei Harmstorf
• Uncover critical intelligence on the keys to commercial success from pioneering early movers such as G.C.M. Deen Shipping, Hansa Shipping and Reederei Harmstorf
Gerard Deen Vice Chairman G.C.M. Deen Shipping
• Discover what the future holds for European LNG infrastructure and how you can capitalise with exclusive insights from Port of Hamburg, Port of Rotterdam and more • Deliver ROI faster by factoring in the latest and most accurate future LNG pricing into your financial forecasts
Pre Event Workshops: 18 February 2013 A) Early Adopters Practical Workshop: Developing And Maximising An “Early Mover” Advantage B) Late Adopters Practical Workshop: Developing A Business Case And Time Frame For Adoption Of LNG Fuelled Shipping
Post Event Workshop: 21 February 2013 C) Identifying And Mitigating Operational Safety Issues Presented By LNG Fuelled Shipping
“Good candidate for the best event of 2012” NextLNG Ltd
Fax: +44 (0)20 7222 2685
Krzysztof Kozdron Managing Director Schulte Marine Concepts
Jan Oivind Svardal Vice President, Project Development Grieg Shipping AS
Peter Blomberg Director, Special Projects Skangass AS
Marcel Tijhuis Senior Business Developer Gasunie
Wolfgang Hintzsche Marine Director German Shipowners’ Association
Feedback from LNG Fueled Shipping 2012
Tel: +44 (0) 203 141 8700
Peter Mackeprang Managing Director Hansa Shipping
John Aitken Secretary General SEAaT
Port security Security in ports has become increasingly tighter
He noted several trends, including the fact that most attacks are on tankers and that most attacks in the Gulf of Guinea took place in Nigerian waters (11/25 in 2011). However, increased patrols and security off the coast of Nigeria had prompted criminal syndicates to increasingly move further westwards and southwards toward Benin, Togo and the Ivory Coast, with groups becoming more prone to violence. He noted that criminality had increasingly overtaken militancy as the source of piracy attacks. He concluded by noting the need for a security risk assessment and daily threat analysis. Nigeria, he said, is a hotspot for kidnap and ransom and has eclipsed Columbia and Brazil in this respect. Criminality is the biggest threat in Nigeria and violence is very noticeable when compared to Somalia. There is an ISPS security level 2 at all times in Nigerian waters, he said. As security in ports has become increasingly tighter, so have restrictions on crew members visiting ports and these have led to concerns over facilitation of shore leave and crew transits The International Shipping Federation (ISF), which represents maritime employers globally, says that the low level of implementation of the International Labour Organization (ILO) Convention 185, concerning the facilitation of shore leave and crew transits, is a continuing source of disappointment.
Clearing the confusion A range of security issues require clarification
riminality and confusion over legislation are just two of the issues that need to be addressed from the safety and security perspective. Port security has been very much in the news as far as piracy is concerned, particularly because of the West African piracy “business model” that has focused on capturing ships to offload their cargo. Typically, the vessel is boarded and its cargo unloaded, then the vessel and crew are released. Unlike East African piracy scenarios, crews are not generally held to ransom. According to Alex Davis, a partner with law firm Stephenson Harwood, vessels being targeted are bunker barges with a low freeboard and which may have fenders permanently rigged, so access is easy. He advocates placing video cameras and
secreting a GPS chip on the vessel, which would allow it to be tracked. However, Michael Hawkes, group security and regional HSE manager, West Africa for SBM Offshore argues that piracy is not yet on the scale of East Africa. Attacks were primarily focused on vessels that were at anchor or maintained no visible security deterrence. He also challenged perceptions that all of Nigeria was a high-risk area, noting that Onne port was one of the safest in the region. Speaking at the Combating Piracy conference in London organised by Hanson Wade, he attributed this misconception to the Islamist insurgency in the north of the country and the presence of such groups as MEND, which did not exist along coastal areas where the primary risk arose from corruption and crime.
Speaking at a seminar organised by the International Federation of Shipmasters’ Associations (IFSMA) in Manila recently, ISF director of employment affairs Natalie Shaw explained that the ILO Seafarers’ Identity Documents Convention (ILO 185) – which ISF helped to negotiate on behalf of employers in 2003 – was adopted as part of a package of measures following the terrorist attacks in 2001. “The wide ratification of the Convention would have materially assisted the welfare of seafarers as well as addressing the security concerns of port states,” said Shaw. She explained that, under the terms of the Convention and as a part of a quid pro quo for requiring seafarers to carry new ILO identity documents, port states were meant to find ways of making access to shore leave easier. For example, while ILO 185 discourages port states from requiring seafarers to have to obtain visas, reflecting the special nature of their employment, the Convention does not explicitly prohibit them
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19-20 March 2013 St Regis Saadiyat Island Resort, Abu Dhabi
Hear from the industry’s most influential minds and share knowledge with other attendees from around the world
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Port security He cited a case whereby Mines Rescue Marine was asked to advise on an incident involving a shore contractor who was severely injured in an enclosed space on board a ship. During the course of the investigations, it became clear that there was confusion as to responsibilities for shore workers in such a position. The responsibility is even more problematic in countries like the UK, where shore workers are under the auspices of the Health and Safety Executive (HSE), while the ship and crew are under the Maritime and Coastguard Agency, Lloyd said. The HSE is primarily responsible for enforcing legislation covering the safety of shore based personnel and work equipment supplied by the shore even when working on a ship. HSE is the lead authority for all dock operations whether or not crew are involved. HSE has enforcement responsibility for the provision and use of any work equipment supplied by the port irrespective of who is using it. HSE is responsible for all shipbuilding or conversion work whether shore workers or ship’s crew in any shipyard, harbour, dry dock or wet dock.
from doing so, provided that the port state concerned takes equivalent measures. This might include allowing seafarers to obtain visas on arrival, rather than requiring them to obtain visas from overseas consulates. However, according to ISF, insistence by port states that seafarers must obtain visas in advance of arrival in port is still a major problem in the US, Europe and elsewhere. “If governments insist on requiring seafarers to obtain visas, which is contrary to the spirit of relevant ILO Conventions and the IMO FAL Convention, it should be made possible for seafarers to obtain visas on arrival,” suggested Shaw. One of the problems connected to the low level of implementation by governments of ILO Convention 185 is that the technical specifications for the required seafarers’ identity documents are different to those used in passports or by the aviation industry. “The equipment needs to be interoperable and, understandably, countries are reluctant to pay the
costs required to purchase equipment solely for the use of seafarers,” said Shaw. “It would be much more viable to align the standards with those that exist elsewhere. 24 countries have now ratified Convention 185, but few are able to issue the new ILO ID cards and there are few machines available internationally that can read them.” However, ISF remains committed to encouraging the widespread ratification of ILO 185 and finding a way forward at ILO so that the technical specifications for the ID cards might be modified. The ILO Seafarers’ Identity Documents Convention (Revised) (ILO 185) exists separately to the ILO Maritime Labour Convention, 2006, which consolidates most other ILO maritime standards in a single instrument and which will enter into force worldwide in August 2013. Another port-related issue that has been highlighted by Michael Lloyd, advisor to Mines Rescue Marine is the responsibility for the safety of contractors or shore workers, whether the ship is at sea or in port or dry dock which he says is a grey area in the marine industry.
Where ships’ crews are carrying out voyage repairs under the master’s authority in harbour, responsibility is with the MCA. All other ship repair activities in dry dock and major work not considered to be normal ship voyage repair activities are the responsibility of the HSE, whether carried out by shore labour or crew. For voyage repairs where ships crews and shore labour are working concurrently, both MCA and HSE have equal responsibility. They must then agree a lead authority. According to Lloyd: “The factor to bear in mind regarding the memorandum of understanding between the HSE and the MCA is that ships rarely carry any information regarding HSE legislation. “Nor do many have knowledge of this document. If this is the case, most masters are ignorant of any responsibilities they have to shore workers. “Equally, there is ignorance ashore, demonstrated by the fact that when some dry docks assume responsibility of all safety matters on the ship for their workers, quite often this is assumed to cover outside contractors employed by the dry dock for work on the ship.”
Maritime Security International
PLUS ÇA CHANGE? While regulators and legislators continue to deliberate on raising safety and environmental standards in ship breaking, a record number of ships will have been scrapped during 2012, most on the beaches of the Indian Sub Continent, some in purpose built facilities in China and others in Turkey. But is the combination of strong scrap steel demand and a plentiful supply of end-of-life vessels sustainable and pointing to a new record in 2013? Will the Chinese ‘cash for clunkers’ scheme have a significant impact? How are attitudes to ship recycling changing at the board level of shipping companies? Plan now to be part of the world’s leading gathering of cash buyers, brokers and recyclers.
For further information:
+44 207 029 4163
Smuggling Cutting crime remains a challenge
developments in the regions and the contrasting port security arrangements found, ranging from very good to very poor and the need for ships to conduct proper port security risk assessments prior to entry to ensure that the ship security arrangements are met for each individual port. This could be additional security patrols, the use of shore- based security teams on board, as well as having dog and underwater dive teams available to search the ship prior to departure from the port.” There was also a discussion regarding shippers’ and charterers’ responsibility in ensuring the security of the cargo, be it palletised or containerised, prior to and during loading on board the ship. Where the empty containers are shipped back to these regions they should be sealed before they leave Europe and only unsealed once they reached the loading destination (farm or depot). The seminar highlighted the need for more dialogue between interested parties on the problems with an emphasis on sharing lessons learned.
Crackdown on crime Illicit drug and human trafficking continues to be a problem for the shipping industry, but attempts are being made to meet the challenges
onsiderable challenges remain in the reporting of trend data on illicit drug use, production and trafficking, according to the 2012 Drug Report by the UN Office on Drugs and Crime.
and countries to support and improve the collection of quality data on these different aspects of illicit drug use. It is only then that the ebb and flow of the world’s illicit drug market can be properly measured.”
“The main challenges continue to be the availability and reporting of data on different aspects of illicit drug demand and supply in member states. The lack of data is particularly acute in Africa and parts of Asia, where data on the prevalence of illicit drug use and trends remain vague at best,” the report suggests.
The latest report suggests that the increasing use of containers may be the reason behind a lower number of drug seizures in Europe, although demand patterns remain reasonably stable.
“Other aspects such as prices and purity of drugs, seizures and trafficking patterns and methodological difficulties in estimating in some regions the illicit production of substances – particularly cannabis and ATS – make it difficult to analyse and present a complete picture of the ever-evolving illicit drug market. Most of the challenges can be overcome by sustained efforts in priority regions
In a recent bulletin, Britannia P&I Club gave a summary of a drugs awareness seminar held in London centring on central and South American reefer ports. The main speaker at the seminar was Michael McNicholas, managing director of Phoenix Management Services Group, who was responsible for the sea port security programme at Manzanillo International Terminal in Panama. According to Britannia: “Discussions centred on recent
Meanwhile, at a recent Caribbean sub-regional workshop on maritime security, Michael Brown of the US Coast Guard warned that governments needed to collaborate in order to fight drug crime, as no one government could supply all the answers. The workshop concentrated on the need for proper risk assessment. Concerns have also been raised in Africa about the links between extremist groups and drug smuggling.
Human trafficking The UK Human Trafficking Centre has produced an assessment to give an indication of the nature and scale of human trafficking during 2011. This is the first time an attempt has been made to describe the full extent of human trafficking in the UK. The assessment explores the number of potential victims, their country or origin, exploitation types, recruitment techniques and transport methods. Information received by the Centre suggests that 2,077 potential victims of human trafficking were identified in the UK and the two most prevalent exploitation types were sexual and labour. David Dillnutt, head of the UKHTC, said: “Human trafficking is a complex crime and the true scale of it – and the number of victims – is largely hidden.
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“What this assessment gives us though, for the first time, is a better understanding of the extent of human trafficking. It aims to inform the UK’s response at a government, law enforcement, and non-governmental organisation level. “Investigating this type of crime is a challenge to us all as victims are often kept locked away and unseen by society. We need the public to help us too and I urge anyone with information on a potential victim of trafficking to share it with the authorities.”
Aid for victims The United Nations Voluntary Trust Fund for the Victims of Human Trafficking issued a statement on 20 November to mark the day on which both the Declaration on the Rights of the Child (1959) and the Convention on the Rights of the Child (1989) were adopted by the General Assembly. “In observance of the 23rd anniversary of the Convention on the Rights of the Child of the United Nations, the trustees of the UN Voluntary Trust Fund for Victims of Human Trafficking, in particular women and children, would like to call for a targeted and immediate response to the plight of millions of children around the world who are still denied their
fundamental rights and are prevented from the enjoyment of a happy childhood. “Remembering particularly at this time the young girls and boys who are subjected to the worst forms of child labour, suffer physical, psychological or sexual abuse – which include and are not limited to human trafficking, sexual exploitation and forced engagement in illicit activities. “On this day, we would like to reiterate the importance of the Trust Fund, established in 2010, with the objective to provide humanitarian, legal and financial aid to victims of trafficking in persons through established channels of assistance, such as governmental, intergovernmental and non-governmental organisations. “Through its 2011 Small Grants Facility, the Fund awarded multi-year grants of up to US$25,000 per year to NGOs located in different parts of the world. “Grass-roots organisations were provided with financial resources to take concrete actions in protecting children in vulnerable situations, placing children in safe environments, providing them with social services, health care, psychosocial support, and where appropriate assist their reintegration with family and community.
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“The trustees express their appreciation to governments, private sector entities and individuals who have made generous financial contributions, shown their concern and will to support anti-trafficking initiatives. “On this day, we call for continued and increased financial support for the Fund to perform its mandated tasks. Human trafficking is a global crime that transcends national boundaries, therefore requires a global response and global solutions. “The Trust Fund is a UN system-wide fund, and in such, we appeal to other UN Agencies, governments, the private sector and individuals to co-operate and support the Fund, to ensure that victims are afforded the assistance they require. To show your solidarity with victims of this abhorrent crime. “It is evident that around the world, there is growing support to join the efforts to combat exploitative practices which target vulnerable children. “Today, we wish to reiterate our continued commitment to advocate on behalf of victims of human trafficking, and to ensure that the Trust Fund continues to implement its very important mandated work.”
Offshore The Deepwater Horizon accident caused widespread pollution
Thirteen of the 14 criminal charges relate to the accident itself and are based on the negligent misinterpretation of the negative pressure test conducted on board the Deepwater Horizon. BP acknowledged this misinterpretation more than two years ago when it released its internal investigation report. The remaining criminal count relates to two BP communications made to a member of Congress during the spill response about flow rate estimates. As part of its resolution of criminal claims with the US government, BP will pay $4 billion, including $1.256 billion in criminal fines, in instalments over a period of five years. BP has also agreed to a term of five years’ probation. Under the resolution with the Department of Justice (DOJ), a total of $2.394 billion will be paid to the National Fish & Wildlife Foundation (NFWF) over a period of five years. In addition, $350 million will be paid to the National Academy of Sciences (NAS) over a period of five years.
Risk reduction BP has agreed to plead guilty to 11 felony counts following the Deepwater Horizon disaster. Plus the latest partnerships and rig news BP resolution Fallout from the Deepwater Horizon accident, which resulted in the loss of 11 lives and major pollution, continues to be felt as BP announced that it had reached agreement with the US authorities on criminal and securities claims against the company. The deal includes resolution of criminal claims with the Department of Justice, including $4bn to be paid in instalments over a five-year period and resolution of securities claims with the Securities and Exchange Commission (SEC) including $525m in instalments over a three-year period. The company said in a statement that it had reached agreement with the US government to resolve federal criminal charges and all claims by the SEC against the company.
Making the announcement, BP’s group chief executive Bob Dudley said “All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region. “From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologise for our role in the accident, and as today’s resolution with the US government further reflects, we have accepted responsibility for our actions.” As part of the resolution, BP has agreed to plead guilty to 11 felony counts of misconduct or neglect of ships officers relating to the loss of 11 lives; one misdemeanour count under the Clean Water Act; one misdemeanour count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress.
BP has also agreed to take additional actions, enforceable by the court, to enhance the safety of drilling operations in the Gulf of Mexico. These requirements relate to BP’s risk management processes, such as third-party auditing and verification, training and well control equipment and processes, such as blowout preventers and cementing. In addition, BP has agreed to several initiatives with academia and regulators to develop new technologies related to deepwater drilling safety. As Lloyd’s Register chief executive Richard Sadler said in a recent lecture to the Lloyd’s Market Association (see comment page 11) “Prescriptive regulation was in place when the Deepwater Horizon rig met its demise in the Gulf of Mexico. If it had been operating in the North Sea, it would have been subject to risk-based regulation.”
Forging alliances Ramora UK has formed a strategic partnership with Aberdeen-based Altor Risk Group. Altor, a consultancy-led business providing innovative risk management solutions for the oil and gas, renewables and mining industries. Ramora UK will work in partnership with Altor to provide offshore unexploded ordnance awareness training for Altor’s clients in the Aberdeen area and providie them with access to Ramora UK’s dedicated 24/7 emergency response.
Maritime Security International
Offshore BP has now reached agreement with the US government over the Deepwater Horizon accident
“With the complementary understanding that our companies have of the oil and gas and renewables markets, a strategic partnership between Ramora UK and Altor makes perfect sense,” David Welch, managing director of Ramora UK, said. Jim Walker, Altor’s chief executive, added: “We are delighted Ramora has joined forces with Altor. We have built the business on the ability to provide our clients with access to genuine experts in preparing for and dealing with emergency situations. Our growth, which includes partnering with specialist organisations like Ramora, means we can provide first class services to customers all over the world.” Altor also completed the acquisition of iON Risk Management, a UAE-based specialist provider of emergency response and crisis management services earlier in the year. “The acquisition is a fantastic step for Altor, establishing a strong foothold in the international market, while allowing iON to continue expanding while maintaining the quality of service,” the company said.
Vessel tracking for wind farm VisSim has supplied a Vessel Tracking Management System to manage vessel traffic personnel tracking and communications at Sheringham Shoal wind farm in Norfolk.
Developer Scrira Offshore Energy is a joint venture between Norwegian energy giants Statoil and Statkraft. The wind farm contains 88 turbines which could produce enough electricity to power more than two hundred thousand homes. It was officially opened in September by the Crown Prince of Norway. VisSim has supplied a comprehensive solution for surveillance, control and management of vessel traffic and personnel in the wind farm. The company has been a leading supplier of integrated solutions for wind farm management since the first offshore wind farm in 2003 and supplies more than 20 European wind farms with solutions to manage vessels and personnel. VisSim signed an agreement to supply an advanced surveillance solution for the new Statoil operated rig planned for the Valemoen oil field. The equipment included two radar domes, communication systems and oil spill monitoring. The Valemon field is a gas and condensate field between Kvitebjørn and Gullfaks South in the North Sea, about 160km west of Bergen, with estimated recoverable reserves put at 26bn cubic metres of gas and five million cubic metres of condensate. The Valemon platform will be an unstaffed fixed
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steel platform with separation facilities for gas, condensate and water using pipelines to Mongstad with a planned production start in 2014.
Rig release Northern Offshore has announced that the company has received early notification from Maersk Oil and Gas that the rig Energy Endeavour will be released at the end of the well in progress on 1 May, 2013. The rig’s accommodation unit does not meet new Danish Energy Authority requirements and its replacement is not commercially viable for either party. Gary Casswell, Northern Offshore’s president and CEO, commented: “We sincerely appreciate that Maersk has given us very early notice of release of the Energy Endeavour, as it will allow us approximately six months to re-contract the rig in what is a very tight market. We expect to achieve a significant increase of the dayrate with a new contract. The company noted that this situation does not affect the Maersk contract for the Energy Enhancer. “Our relationship with Maersk remains strong and we look forward to continued long term operations with the Energy Enhancer.”
Company news Heading
British security and Standfirst intelligence company London Office: 5 St. Johnâ€™s Lane London EC1M 4BH T: +44 (0) 20 7250 4742 E: email@example.com W: www.acuitasonline.com @acuitasonline Portsmouth Office: Portsmouth Technopole Kingston Crescent Portsmouth Hampshire PO2 8FA T: +44 (0) 2392 658200 F: +44 (0) 2392 658201
cuitas is a British security and intelligence company. It offers a range of effective risk mitigation products to the commercial shipping industry; from crew training, piracy awareness courses and vessel hardening audits, to armed vessel security detachments. Each of its maritime products is fully compliant with the latest guidelines laid down in both Best Management Practices for Protection against Somalia based Piracy and the International Maritime Organisationâ€™s 1405 and 1433 circulars. Acuitas has robust management processes in place and adheres to a strict quality management and internal audit review system, and is fully insured for all aspects of its business. Acuitas strives to deliver the most effective and lasting risk management products to each of its clients, whatever the challenges they face. This ethos was the driving force behind Acuitas signing up to the Open Ocean integrated maritime security management system. Open Ocean has been developed to provide an integrated response to the needs of the shipping industry faced with the ever growing problem of having to
ensure the security of their crews and ships. Open Ocean is not merely about putting armed teams on ships; rather, it is about stepping back and taking a long-term and strategic view of what it is that individual ship-owners and operators need in order to allow them to carry on their business without interference by unlawful gangs at sea.
Open Ocean brings efficiencies, economies and effective measures to bear down on the problem of piracy By addressing the problem as a complete system, Open Ocean brings efficiencies, economies and effective measures to bear down on the problem of piracy. In doing so, Open Ocean frees up shipping operators to do the job which they are so good at, namely to move
vessels and cargo around the world in response to customerâ€™s requirements. Open Ocean is, above all, an intelligence led operation which views the use of armed teams as a weapon of last resort-albeit a very necessary fallback option in many cases. Open Ocean allows customers to choose from a range of services from intelligence and routing advice, crew training and piracy awareness courses, ship surveys and hardening, through to the deployment of some of the most highly regulated maritime security teams in the industry. Backed by the Chenega Corporation with its significant financial and technical capabilities, Open Ocean is the logical choice for large and small operators looking for a serious contracting partner able to provide the highest standards of service but also able to support operational capabilities with technical developments in the areas of communications and surveillance. The Open Ocean team consists of a number of companies all dedicated to maintaining the highest standards of operation and Acuitas is a proud member of the group.
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Events POLICY & FORUMS 64
9-10 April 2013, Southampton Opportunities for Advanced Technology in the 21st Century
22 January 2013, London International Traffic in Arms Regulations A seminar to explore the constraints associated with compliance with the International Traffic in Arms Regulations (ITAR) and the opportunities that the recent signature of the US-UK Defence Trade Co-operation Treaty provides. www.maritimeindustries.org
30-31 January 2013, London
A national conference that looks at the application of advanced technology across the spectrum of the UKâ€™s maritime engineering enterprise and the business opportunities that are emerging. www.maritimeindustries.org
9-11 April 2013, Southampton National Oceanography Centre www.oceanbusiness.com
4th Maritime Piracy and Securtiy Summit See details on OBC
6-7 March 2013, London 3rd FPSO Vessel Conference See detail on p48
27-28 March 2013, London 8th Maritime Communications & Technology Summit
4-5 March 2013,Dubai Ship Recycling Forum
See details on IBC
See details p58
19-21 February 2013, Abu Dhabi 18-21 February 2013, Hamburg
World Ports & Trade Summit
LNG Fuelled Shipping
See details p56
See details on p54
19-20 February 2013, Hamburg 5th Annual International Wind O&M Forum for Power Producers 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.
Assume control of your onshore & offshore wind fleet. www.renewableenergyworld.com
12-14 March 2013, Hamburg
9-11 April 2013, Singapore
Green Shipping Technology
See details on p52
See details p50
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