Weekly Edition 9th of July 2009

US moves a step nearer to anti-piracy arms measure

Amendment to defense act provides for military personnel on US ships

Italy calls for new approach to piracy fight

ITALY’S shipowners will push for European action to develop effective coastguard operations in the countries bordering the Gulf of Aden as a direct response to the threat of piracy in the area, writes John McLaughlin .

Pressure on pirates could soon win release of ships

Somalia’s main factions said to be pressing for resolution of crisis in return for western aid cash

Somali pirates shift attacks to ‘safe’ regions

Fears that the Arabian Sea and Yemeni coast are new targets

North Korea rejects use of guards on aid vessels

EU anti-piracy forces stymied on protection of humanitarian supplies

North Korea snubs calls to arm food aid ships

NORTH Korea is refusing requests from European Union anti-piracy forces to place armed guards on World Food Programme ships bound for Somalia.

Italy in push for Gulf of Aden coastguard

ITALY’S shipowners will push for European action to develop effective coastguard operations in the countries bordering the Gulf of Aden as a direct response to the threat of piracy in the area.

Pressure on pirates could soon win release of ships

WESTERN ransom negotiators are now predicting that four or five of the remaining 12 ships held in Somalia will be freed on payment of ransoms in the next two months, following pressure on the pirates from the strife-torn country’s main factions.

Somali pirates shift attacks to ‘safe’ regions

Fears that the Arabian Sea and Yemeni coast are new targets

North Korea rejects use of guards on aid vessels

EU anti-piracy forces stymied on protection of humanitarian supplies

Intertanko stands firm over use of armed guards to avert piracy

INTERTANKO has reiterated its opposition to the use of armed private security guards on tankers transiting the piracy-prone Gulf of Aden, and highlighted some of the drawbacks of relying on flag state military protection, writes David Osler.

Europe backs masters’ authority over guards

MASTERS remain in full control of their vessels even if navy forces are on board, a commander with the European Union’s operation Atalanta said on Monday, writes Justin Stares in Brussels .

USCG clarifies role of masters in arms debate

New advice gives master legal right to protect ship and crew

Sichem Peace crew treated well, says EMS

CONTACT has been made with six seafarers seized from a product tanker off Nigeria at the weekend, according to a statement from the operator.

Criminality is main motive behind Nigeria attacks

THE large majority of attacks on maritime targets in Nigeria are motivated by criminality rather than politics, even though in some cases the perpetrators may be the same, according to a new analysis from Bergen Risk Solutions.

''If we do not get money we beat the crew badly''

A DEFIANT warning from a senior Somali pirate that violence could be used against hijacked crews has raised serious concerns that ransom negotiation tactics are being intensified as pirates push for more money.

Seven dead and 23 crew missing after standby vessel sinks

SEVEN bodies were recovered after last week’s sinking of a safety standby vessel close to Doha in Qatar, and the death toll was expected to rise further as 23 of those on board remained unaccounted for, the operator confirmed.

Pulling power MSC Napoli aft section lifted

THE remaining section of the containership MSC Napoli, was beached in Lyme Bay, southern England in January 2007, has finally been lifted

Pressure on pirates could soon win release of ships

The Hansa Stavanger: the German boxship hijacked in April could be the first to benefit from pressure being put on Somali pirates to release vessels.

North Korea rejects use of guards on aid vessels

NORTH Korea is refusing requests from European Union anti-piracy forces to place armed guards on World Food Program ships bound for Somalia.

Casualty Briefs - 9th July 2009

 

Oil spill spat risks insurance debacle

SHIPPING Australia has challenged the federal government to formally request that the International Maritime Organization (IMO) lift the maximum liability level for shipowners if it feels the current amount is insufficient. The extraordinary put up or shut up call came in the wake of comments on Sunday by Queensland premier Anna Bligh, and backed by federal infrastructure minister Anthony Albanese, calling for Swire Shipping to pay the full clean-up cost of the Pacific Adventurer’s oil spill in March.

Hungry QR bites off another chunk of Hunter coal chain

QUEENSLAND Rail has struck back in the continuing battle to lock in east-coast coal haulage contracts, securing work from Peabody Energy Australia in the competitive Hunter market.

UK group’s soft entry into rail freight market

UK FREIGHT rail group Freightliner has secured the soft but significant landing it needed in the Australian market. Two years after first establishing a virtual presence in Australia, Freightliner this month began bulk cotton haulage in New South Wales.

New compliance system for Customs process

THE AUSTRALIAN Customs and Border Protection Service’s resource-intensive Benchmark Audit program has been replaced by its new Compliance Monitoring program.

New era: shipping and road applaud but rail cry ‘failure’

THE TRANSPORT sector hailed a decision to drop state-based regulations as a major step forward but it also warned against losing momentum on the progress made. Last week, the Council of Australian Governments (COAG) agreed to improve transport industry safety and productivity by streamlining the regulation of trucking and shipping by 2013.

Tasports hunts for new chief executive

TASMANIAN Ports Corporation (Tasports) has begun the search for a new chief executive after the incumbent, Robert Barnes, advised the board he would not renew his contract in October.

Livestock fatalities on board showing downward trend

THE LIVESTOCK export mortality rate last year was less than 1%, according to a report released last week.

Asciano offloads its Tasmanian assets

ASCIANO’S exit from its loss-making Pacific National Tasmania rail business took a significant step forward last week with the Tasmanian government agreeing on a purchase price for the company’s infrastructure and assets.

Piracy in security spotlight and offers of special services

As the high cost of piracy to world trade and security is driven home, new companies offering specific expertise are springing up to satisfy a new market, writes Rob McKay

Mariana boxship makes first Darwin stopover

MARIANA Express Lines has made its first call to Darwin, two months after applying to call at the Northern Territory capital.

PORTS’ URGENT PRIORITY: working up the supply chain

For Australian ports to meet the challenge of a complex economy, there must be a national plan to integrate requirements and new technologies, writes Peter Kosmina

Final Newcastle access awaits ACCC

COMMON user restrictions placed on Newcastle’s largest coal terminal are to be suspended as part of a proposed long-term access agreement lodged with Australian Competition and Consumer Commission (ACCC) last week.

DBCT expansion makes it world’s third largest

BABCOCK & Brown Infrastructure has completed expansion of the Dalrymple Bay Coal Terminal (DBCT) near Mackay, effectively boosting capacity at the terminal by about 50% to 85m tonnes a year.

North Queensland Bulk Ports forms after merger

ANOTHER step has been completed in the overhaul of Queensland ports with the merger of Ports Corporation of Queensland and Mackay Ports Limited to become North Queensland Bulk Ports Corporation (NQBP).

May deficit balloons as exports plunge $1bn

AUSTRALIA’S trade deficit in May more than doubled the April figure as the value of exported goods and services slumped more than $1bn. Exports of goods and services in May was a seasonally adjusted $20.4bn compared with $21.5bn in April due largely to a decline in non-rural goods, which dropped by $684m, the Australian Bureau of Statistics (ABS) said.

Enormous challenges from a huge misfortune

Growing marine hull capacity is predicted to offset pressure on rates, writes Jerry Frank

Plotting future course into choppier seas

MARINE insurers are navigating difficult waters in 2009 with the downturn in the shipping and financial markets posing significant challenges for the industry.

Global insurers to act on climate

MORE than 50 international insurers, including top providers for the marine market, have signed a “Kyoto statement” recognising climate change and pledging industry action.

More box lines set to fail

CORPORATE casualties among containership owners and operators now look a racing certainty, with Drewry Shipping Consultants anticipating more failures before the end of the year after Eastwind Maritime’s recent collapse.

Hapag-Lloyd’s owners are considering state bail-out

GERMAN container line Hapag-Lloyd is considering applying for government aid to ensure its survival. Hapag-Lloyd’s owners, Tui and the Albert Ballin consortium, are in talks about which would give the line fresh capital.

Buyout firm eyes PD Ports

REPORTS suggest that Terra Firma, the buyout firm controlled by Guy Hands, is set to bid for the UK’s PD Ports, currently owned by Australia’s Babcock & Brown Infrastructure.

Troubled times in paradise

The global financial crisis is having a disproportionate impact on Pacific islands economies, although resource-rich Papua New Guinea is faring better. For shipping lines, business is down, competition is up and there’s not much optimism on the horizon, reports Dale Crisp

The kaleidoscope rotates

THE PAPUA New Guinea and Pacific Islands regions play host to a complex and ever-changing pattern of shipping services, such that it is not surprising to find not all carriers in these markets know exactly what their competition is up to at any one time.

Liberia set to renew flag contract

THE LIBERIAN government was expected to renew its controversial maritime administration contract with the Liberian International Ship & Corporate Registry (LISCR) last week, giving the US company a further 10 years in charge of the world’s second-largest flag of convenience.

Pacific box rates plumb new lows

TRANSPACIFIC freight rates continue to weaken, with the spot market hitting new lows at a time of year when lines should be preparing for the peak season.

Hapag-Lloyd calls in cost-cut consultant

GERMAN container line Hapag-Lloyd has hired international consultancy Roland Berger to find further cost reductions.

Asia puts premium on US recovery

Nervous underwriters in Asia look set to hike insurance prices, reports JERRY FRANK

Cosco lashes ore producers

CHINA’s largest shipping company said the global dominance of the three major iron ore producers “could be very harmful to the industry”.

Middle East crude exports face slow return to growth

GLOBAL crude oil trading should rise by 1.5% annually to 2014 as the world recovers from the global recession, but Middle East exports may not return to 2008 levels during that period.

Singapore government takes over at the helm of stalled LNG project

THE Singapore government has taken over the development of the country’s first liquefied natural gas terminal as the credit crunch delays its completion until 2013. The LNG terminal was being developed by a consortium between Singapore’s PowerGas and GDF Suez.

Baltic Exchange moves to overhaul dry index

THE Baltic Exchange has made the first significant structural changes to the Baltic Dry Index (BDI) calculations since January 2007, in a bid to open up freight derivatives trading to banks and other financial institutions.

Owners face huge funding shortfall as banks retreat

SHIPOWNERS face an annual US$80bn funding gap for newbuildings and secondhand ship purchases as traditional lending banks cut their exposure to the volatile maritime sector.

Scrapping set to hit record

CONTAINERSHIP demolition activity is set to reach new heights this year, making a modest dent in fleet expansion.

Survey records new confidence in the market

CONFIDENCE levels in shipping have risen for the first time in almost 18 months, according to the latest survey by shipping accountant and consultancy firm Moore Stephens.

Shanghai unveils hub ambitions

SHANGHAI authorities are working on slew of measures to promote the city as maritime hub, including tax concessions for shipping and logistics operators.

Fears for lay-ups in the Philippines

TYPHOON fears for ships laid up in the Philippines depend on the locations of anchorages, writes Marcus Hand in Singapore. Insurers have raised the alarm over the concentration of idle or laid up ships in locations at risk from tropical storms, including parts of the Philippines, which has become a popular location for owners to lay up vessels. GAC Solutions vice-president Christer Sjodoff said typhoons were a concern in areas such as Manila Bay and Subic Bay.

Queensland courts disaster with poor private port plan

State of Origin inspiration goes missing as Queensland contemplates selling off its port heritage, reports Captain Steve Pelecanos