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DAILY SHIPPING NEWSLETTER 2004 – 106

PSi-Daily Shipping News 06/30/04

Number 106***DAILY SHIPPING NEWSLETTER***Thursday 01-07-2004

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The P&O NEDLLOYD ENCOUNTER moored in ZeebruggeThe 52.800 DWT P&O Nedlloyd Encounter ( ELZZ4) is built as the SANTA REBECCA in2000 at Samsung yard in Goeje Isl (Korea) under yard number 1358, the vessel which is

owned by the German company Offen received the name P&O Nedlloyd Encounter during2002.

The 281 meter long vessel arrived from Tilbury and departed from Zeebrugge bound forHamburg

Photo : Piet Sinke ©

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EVENTS, INCIDENTS & OPERATIONSAntarctic research ship guns for fish

poachersAn Antarctic research ship has been fitted with machine guns as Australia steps up its efforts to deterpoachers in the Southern Ocean. The armed patrols will target the illegal trade in patagonian toothfish.

The Hobart-basedAurora Australis hasbeen fitted with twodeck-mounted 50-calibremachine guns for use byCustoms patrol parties.About 40 Customsofficers are in the finalstages of weaponstraining and training inthe apprehension ofillegal poachers. Use ofthe vessel for patrollingis only temporary.Customs is planning tolease a permanent patrolboat by the end of theyear.

Federal Justice Minister Chris Ellison says the Aurora is suitable for the job, for now. "In this case wedo require a vessel of the dimensions of the Aurora Australis to go down into the ice pack," he said."The 50-calibre machine guns, which it has mounted, we believe send a very clear signal to anyonewho's engaged in illegal fishing that we're very serious about what we're doing."The Aurora will patrol the region around Heard and MacDonald islands, in Australia's economic zone.Customs officers will soon conduct their final sea trials.Last year, Australian Customs officials chased a Uruguayan fishing boat, the Viarsa, for three weeksbefore it was apprehended and the crew charged with illegal fishing.

RSV Aurora AustralisRSV Aurora Australis was built in Newcastle, Australia and sails under the Australian flag with an

Australian crew. The vessel is 94.91 metres long, has a dead weight of 3,893 tonnes, and is classed asan Ice Class 1A Super Icebreaker under Lloyd's Register of Shipping + 100 A1 + LMC UMS DP (CM):CASPR Class 2 Amidships, Class 3 fore and aft. The vessel has accommodation for 24 crew and 116

expeditioners

Tripartite task force to boostStraits security

Jakarta, KL, S'pore forces to coordinate patrols in the Malacca Straits



Indonesia, Malaysia and Singapore will next month launch a task force to patrol the Straits of Malaccaand boost security in one of the world's most important shipping lanes, navy chiefs said yesterday.A meeting of Indonesian and Malaysian naval chiefs resulted in agreement on a task force composed

of forces from each country operating under their nationalcommands.

Joining hands: M'sian navy chief AdmiralAnwar Mohammad Nor (left) and Indonesiannavy chief Admiral Bernard K Sondakhshaking hands at a news conference

That sidestepped the issue of sovereignty that has slowedcooperation on Straits security.'We will be developing a coordinated patrol from only fourtimes a year to a round-the-year patrol under one taskforce especially to handle the Malacca straits,' Indonesiannavy chief Admiral Bernard Kent Sondakh told reporters.He did not rule out in future a joint force for the patrols

being based in Indonesia's North Sumatra Belawan port, Singapore and Lumut port in Malaysia. 'I saidto my Malaysian counterpart that maybe some day we will do this joint patrol, but not for now becauseevery country has its own political policy.'

Each country would supply up to seven ships with 100 crew, he said. Singapore's Ministry of Defence (Mindef) said yesterday that the three navies would be meeting soonto discuss this proposal in 'greater detail'.'We have been discussing how we can move forward,' a Mindef spokesman told BT last night. 'Wewelcome the Indonesian Navy chief's latest proposal for greater maritime security cooperation in theMalacca Straits among the three littoral states.'Trilateral co-ordinated patrols would be a positive step forward in enhancing security in the Straits.'Malaysian navy chief Anwar Mohammad Nor stressed that patrolling the Straits was the responsibilityof countries in the region - a reference to US suggestionsthat its forces could play a role.'We don't want outside forces having a role in the Straitsof Malacca,' Mr Anwar told the news conference. AlthoughMalaysia has agreed to work with the US to boost securitythrough intelligence sharing, training and exercises, it hasruled out joint patrols.Indonesia has also ruled out any role for outside forces,despite what the International Maritime Bureau (IMB)stressed were its limitations.

'Indonesia has got a very large resource problem andwhat we would like to see is Indonesian authorities giving a greater priority to piracy by allocating theresources to ensure law enforcement agencies can deal with it,' IMB director P Mukundan toldreporters in Kuala Lumpur.Navies and coast guards from the Straits' two coastal states and Singapore might consider postingofficers on boats of the other two to allow rapid communication if there is a need for hot pursuit acrossmaritime boundaries, he said.He also said Malaysia had taken the right steps in preventing its remote islands from becoming safehavens for pirates. This could be seen by reports received by the IMB that almost no pirate attackswere reported in the South China Sea, once notorious for outlawed armed groups.



'We, at IMB, receive good cooperation from the Malaysian law enforcement agencies which haveshown commitment in ensuring that their waters remain safe to all vessels,' he told Bernama afterpresenting a paper at the IMB's annual meeting on Piracy and Maritime Security here.Captain Mukundan also said that the Indian Ocean was once known for its vulnerability to pirateattacks but efforts by the Indian and Bangladeshi governments in setting up their Coast Guard hadeffectively stopped pirates and other smuggling syndicates. 'We acknowledge that countries like Indonesia have limited resources which hamper their efforts inpatrolling thousands of islands or carrying out joint operations with neighbouring countries,' he said,adding that Malaysia and Singapore could work out a plan to assist their counterparts in providinglogistics support and improving their intelligence-sharing efforts

Adsteam makes asset disposalsAdsteam Marine, the Aussie towage and ports group, is selling its stake in its non-core tugbarging business in New Zealand and its domestic stevedoring interests. The company and its partner, New Zealand’s Northland Port Corp, have both sold their 50% stakes inAuckland-based Sea-Tow as part of a management buyout. Adsteam Marine has also sold its one-third interest in Overseas & General Stevedoring to the remainingtwo shareholders. Overseas & General Stevedoring owns 50% of Northern Shipping & Stevedoring Pty Ltd, a stevedoringbusiness based in Townsville in Queensland.

“The sale of these interests is part of our strategy to divest non core businesses so we can focus onour core ship assist business,” said Adsteam Marine boss John Moller. Total proceeds from the sales, which will be used to repay borrowings, were about AUD9m ($6.2m),Adsteam Marine said. “This was in line with management expectations and in excess of the book value,” the company added.

Norwegian shipping company fined$3.5 million

A Norwegian cargo fleet operator was fined $3.5 million Tuesday for obstructing an investigation intoillegal dumping of oil into the ocean, the U.S. attorney's office said.

The company, Hoegh Fleet Services, admitted in March in U.S. District Court that an engineeringofficer on its 39,000-ton ship Minerva instructed his workers to build a pipe - the "magic pipe," theycalled it - to bypass the ship's oil-content sensor, which is a system for preventing waste oil from beingdischarged into the ocean.

The company had pleaded guilty to seven felony counts related to the misconduct, includingobstruction of justice and making false statements to federal inspectors.The engineer, Vincent Genovana, pleaded guilty last September to falsifying documents and agreed tocooperate with investigators. He was sentenced to 30 days in custody and deported to his nativePhilippines following his release.Prosecutors said crew members repeatedly tried to conceal the activity by removing the pipe beforearriving in port and by doctoring discharge records.The case came to light after a whistleblower on the ship slipped a note to Coast Guard inspectors whenthe ship arrived in Vancouver, Wash.



U.S. District Judge Ronald Leighton on Tuesday granted prosecutors' request that the unidentifiedwhistleblower receive a $300,000 award.In addition to the fine, Leighton ordered Hoegh to implement a compliance plan for the 38 vessels thatcall on U.S. ports. A portion of the fine, $1.6 million, will be used to fund environmental projects thatpreserve and restore ecosystems along the coast lines of Washington and California."The conduct occurs on the high seas, usually at night. The ship is long gone when the spill isdiscovered, if it's discovered at all," said Assistant U.S. Attorney Jim Oesterle, criminal enforcementcounsel for the Environmental Protection Agency in Seattle.

Genovana said he had helped the Minerva discharge contaminated water on the high seas since atleast June 2003, but that the ship had been mismanaging oil even before he boarded.He also alleged illegal dumping occurred aboard four other ships in the same Norwegian company'sfleet, according to court documents.The "magic pipe" was removed several days before the Minerva arrived at the Port of Los Angeles lastSept. 2, court records showed. Crew members then painted the fittings in an effort to conceal whatthey had been used for.

Coast Guard officers boarded the Minerva in Los Angeles and several days later at Richmond, Calif. Atboth ports, ship's officers failed to mention the illegal dumping, the U.S. attorney's office said. InRichmond, crew members showed the Coast Guard a falsified oil record book. That record book wasproduced again on Sept. 11 at Vancouver, Wash.The Justice Department contends illegal dumping is rampant within the maritime industry. More than21 ships in the Northwest and Alaska have been caught at the practice over the past year. Sevencaptains and engineers have been sent to prison, and shipping companies have been assessed millionsof dollars in fines. It's difficult to determine how much oil is involved. Authorities say ships typicallygenerate 1,000 gallons or more of oily waste on a trans-Pacific journey from Asia to the West Coast.

US Coast Guard to board everyforeign-flagged vessel

The Coast Guard will board every foreign-flagged vessel that sails into a U.S. port beginning Thursdayto check whether it is complying with rules aimed at foiling terrorists.A maritime treaty signed by about 150 countries requires each ship to have a security officer, alarmsystem, automatic identification system, access restrictions to the engine room and bridge, and amethod of checking IDs of people who board. Each ship must have a certificate signed by the countrythat flags it saying it is in compliance with the treaty.Rear Adm. Larry Hereth said that 700 Coast Guardsmen, including about 500 reservists, will be part ofthe effort to board all ships as they enter the ports."We're going to take a pretty hard line," said Hereth, the Coast Guard's director of port security.The Coast Guard has a range of sanctions that can be imposed on ships that fail to meet thestandards, depending on what the problem is, Hereth said. An administrative glitch could be repairedonboard, he said, but if it should appear that the ship's operators have done little to comply the vesselcould be turned away.The Coast Guard also can detain a ship and require it to hire security guards until it has come intocompliance. Or the Coast Guard can add points to the ship's risk-assessment score, which would meanthat the ship is inspected the next time it calls at a U.S. port, Hereth said.Joe Cox, president of the Chamber of Shipping of America, which represents U.S. ship owners, said heexpects the Coast Guard to enforce strictly the requirement that each vessel has a signed certificatesaying it complies with the standards."I don't think there's a ship around here dumb enough to come into U.S. waters without thecertificate," Cox said.



Many foreign-flagged ships and overseas ports won't meet the standards, according to statisticsprovided by the International Maritime Organization, the United Nations agency that monitors shippingsafety.

According to the IMO's most recent figures, 71 percent of tankers, 89 percent of cruise ships and 56percent of cargo ships had certificates. Only 32 percent of port facilities had approved security plansrequired under the treaty.Although ships and ports in most of Europe and Japan have complied, maritime facilities in somedeveloping countries remain problematic, the IMO says.The agency has no enforcement powers, however, and relies instead on the implicit economic threat togovernments that don't comply with the new International Ship and Port Facility Security Code. Forexample, ships from countries that don't meet the higher standards might be refused port privileges bynations that have.Hereth said the Coast Guard would pressure non-U.S. ports to tighten security so they meet the newstandards.

Coast Guard spokeswoman Jolie Shifflet said ships sailing into U.S. waters increasingly were reachingthe standards. On Tuesday, 78 percent of the 192 foreign-flagged ships calling on U.S. ports were incompliance, up from 65 percent the previous two days."We're projecting that to continue to rise," Shifflet said, adding that 142 of the 150 ships that plan toenter U.S. ports on Thursday said they have the certificates.Thursday also is the deadline for U.S. ports to comply with a maritime security law passed by Congressin November 2002. All but a handful of the thousands of port facilities and vessels will be up to U.S.security standards, Shifflet said.

TAKLIFT 4 LIFTS DOUBLE BOTTOM SECTIONAt the TRICOLOR location in the English ChannelTuesday afternoon the floating Sheerlegs TAKLIFT 4lifted the double bottom section “5” of the sunkenTRICOLOR from the seabed and positioned the 430tons piece of steel onboard the scrappontoon GERALD.

In continuation the divers started with the preparations tolift the next double bottom section “7” which will bepositioned at the same barge, after completion of theloading of the barge the Gerald will be towed by the tug

BANCKERT to Zeebrugge where the 2double bottom sections will be scrapped.

Photo’s : Henk SmithSalvage Master ©



Greens call for Scottish marine actENVIRONMENTAL groups have called upon the Scottish Executive to pass a new Marine Act to protectsensitive areas of the country’s coastline. The call comes on the first anniversary of the sinking of thecargo vessel Jambo, which was carrying 3,300 tonnes of zinc sulphide from Ireland to Scandinavia. Asalvage operation costing £4M ($7.3M) was eventually abandoned and subsequent monitoring of thearea has not found any pollution. “The crash of the Jambo was a wake-up call that has yet to beheeded,” commented Stuart Hay of the Scottish Wildlife Trust, adding that more and strongerprotection measures are necessary. Both the Highland Council and the Western Isles Council havebeen lobbying the Scottish Executive for a new Act which would give better safety measures for shipspassing through the Minches between Scotland’s west coast and the Western Isles. To date littleprogress has been achieved

Prestige ‘was refused refuge at earlystage’

THE controversial decision to deny shelter to the crippled Prestige and send it out to sea continues togenerate headlines and heated debate in Spain.Press reports over the weekend cited testimony given to a court in Corcubión by Fernando Balbás, aport state inspector in La Coruña, who reportedly said that the decision to expel the ship had beentaken by the night of November 13, 2002, just hours after the casualty started.The implications of that statement could be serious because, if correct, it suggests that a place ofrefuge was ruled out well before any detailed technical evaluations on the condition of the ship couldbe carried out.According to the press reports, Mr Balbás said that at around 2130 hrs on November 13, 2002, hereceived a call from Angel del Real, La Coruña’s harbour master at that time, who told him that “wehave instructions” to tow the ship out to sea.The inspector’s statement could have a bearing on Jose Luis Lopez Sors, former director general of theMerchant Shipping Directorate.Mr Lopez Sors was instrumental in the decisions relating to the Prestigeand is the only governmentofficial who remains classed as an ‘imputado’ in the court proceedings and could potentially face formalcharges in the future.The Spanish government has always maintained that the decision to deny shelter was based on soundtechnical assessments and was the best available option at the time.

Buoyant CMA CGM stays in family asexpansion beckons

There is no talk any more at CMA CGM about seeking a stock exchange listing to attract funds to fuelits development. Chairman Jacques Saade has made it clear that he considers that family control isbest.Asked in April what has become a perennial question at CMA CGM results presentations since hehimself indicated some years ago that the group was looking at the possibility of a listing, Mr Saadehad no hesitation in replying that it was no longer under consideration.



Pointing to the companies constituting the container shipping top 10, he had no difficultydemonstrating that it was dominated by family controlled companies, with Maersk and MediterraneanShipping Co the first among them.“The fact that they are family owned is certainly advantageous and this is proven,” he said.CMA CGM, which claims fifth position in the container shipping rankings, could seek a listing for certainparts of its business if this seemed advantageous, he said, but there was no question of it opening upthe capital of the group as such to the public.And, as if to emphasis his point, he announced that his 34-year-old son Rodolphe would be moving upon to the group’s executive board with the position of chief executive vice-president.This gives him the same ranking as shipping industry veteran Alain Wils, just behind group chiefexecutive vice-president, Farid Salem, and Jacques Saade himself as chairman of the executive board.Previously vice-president in charge of North American lines, a business which he set up in 1998, henow takes charge of the group’s north-south liner activities, covering the Americas, Africa, Australiaand the Indian Ocean.

Top The CMA CGM BELLINI at Maaspilot station – Photo : Piet Sinke ©

The appointment comes at a time when the group is in buoyant mood. Mr Saade drew attentiongleefully to the fact that investors who had previously shunned the shipping sector as being too riskyand offering insufficient returns were now running after opportunities to put their money into it.“We are delighted that today business is searching for investment in ships,” he said. “We hope toconvince them to invest in terminals in the near future.”In the meantime, the group is taking advantage of the favourable business climate to undertake amajor expansion of its fleet. It is in the early stages of Euro 1.5bn ($1.78bn) newbuilding programmewhich will see it take delivery of 21 newbuildings between March 2004 and October 2007, 16 of themunder French flag. The first of nine 8,200 teu vessels included in the programme is due to be deliveredin August.Mr Saade has said that he has no fears about overcapacity before the end of 2006, arguing that theexpansion of trade and the world container fleet would be roughly in step until then.In this situation, it is barely surprising that he is optimistic about the group’s short term prospects.CMA CGM achieved its best-ever results in 2003, when net income rose 330% to Euro 202.1m andoperating revenues 20% to Euro 3.02bn.But Mr Saade has predicted that it will improve on these figures this year barring unexpectedcatastrophes.

Growth in cargo volumes was running at 25% at the end of the first quarter and the arrival of newbigger ships would enable the group to lower unit costs, he said.



CASUALTY REPORTINGChemical carrier capsizes

A small chemical carrier has overturned in the port of Hamburg following a collision withthe containership Pudong Senator.

Eleven people are reported to be injured from either acid burns or inhalation of fumes with the doublehulled acid carrier, ENA 2, lying upturned.

Damage to the 4,545-teu Pudong Senator (built 1997 is reported to be minimal. The vessel ownedby Reederei F Laeisz, but long term chartered to Senator Lines, was able to continue its voyage. The ENA 2 is a specialist vessel owned by the Norddeutsche Affinerie copper smelting group and wasladen with 960 tons of acid at the time of the collision. Nine of the injured were dockworkers and the other two police officers. Some reports say the acid isstill contained in the vessel’s tanks, although the outer skin has been penetrated and the double hullcavities flooded. There are also reports of some acid escaping and killing fish. Salvage work on the ENA 2 is due to commence once a floating crane reaches the vessel.

P&O NEDLLOYD TARANAKI (U.K.)ro/ro/c.c. P&O Nedlloyd Taranaki (29259 gt, built 1981) reported engine problems with flywheeland drifting off Sydney at 0200, local time, Jun 29. While adrift a small fishing vessel scrapedalongside, no damage to either vessel. P&O Nedlloyd Taranaki was assisted by tug into Botany Bay,arriving at 1730, local time, same day, where it remains.

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Scandlines edges up profit



German and Danish-owned ferry operator Scandlines has posted a profit of EUR 64.5m($78.36m) for 2003, compared to EUR 63.1m in 2002.

Sales were EUR 447m,down 0.7%, mainly due tothe introduction of adeposit on drinks cans inGermany, which led to afall in onshore tradingturnover.

Left :The DEUTSCHLAND of

SCANDLINES.

Photo :Henk van der Lugt ©

The company said itcarried a total of 19.96mpassengers last year, up0.2% over 2002; 4m cars,

up 1.4%; 916,000 trucks and trailers, up 4.7%; 91,000 buses and coaches, up 1%; plus 107,000railcars. Its main routes are between Germany, Denmark and Sweden, but it said the contribution made byservices to the Baltic states was much better than in previous years. Services to and from Finland, taken over by Scandlines in 2003, were also included in the consolidatedaccounts for the first time. “Based on the successful developments of the previous years, Scandlines will be aiming its strategicactivities for 2004 at further increasing transport capacities on its existing lines as well as expanding itsoverall route network,” it said.

This means that on the Puttgarden, Germany, to Rodby, Denmark, route, it will boost capacity by up to40% thanks to the fitting of additional hanging decks on its four double-ended ferries. After refitting, the ships will provide sufficient space for up to 355 cars and up to 1,200 passengers. And the 16,000-gt Kronprins Frederik (built 1981) and Prins Joachim (built 1980) will have morepowerful engines fitted, cutting transit times on the Rostock to Gedser line by the end of this year.Capacity will also be increased by 20%. The state-owned German railway and the Danish Ministry of Transport each have a 50% holding inScandlines.

SeaFrance in reverseFrench ferry group SeaFrance, which operates across the English Channel, registered a netloss of EUR 2.44m ($2.96m) in 2003.

This compares with a net profit of EUR 14.8m the previous year. Sales dropped by 17.3% to EUR214.4m, it said. Chairman Eudes Riblier said the company had been hurt by its refusal to engage in a price war withother ferry operators. Although the number of cars ferried rose by 2.9% last year, trucks dropped by12.9%.



Riblier said that 2004 will continue to be difficult, but added that the group is about to implement acost-cutting programme which will not affect quality or quantity of services. But the company addedthat in the first quarter of this year, car numbers rose 20.6% to 104,400. It has five ships, but will takedelivery of a $75m, 900-passenger Chantiers de l’Atlantique newbuilding next year.

The SEAFRANCE CEZANNE seen here departing for a Channel crossing – Photo : Piet Sinke ©

Pakistan National Shipping Corp. tobuy fourth tanker

Pakistan National Shipping Corp. (PNSC) plans to buy a fourth oil tanker, owned by a Greek company,to expand its oil import operations with three national refineries and possibly compete for internationaloil transportation contracts.

PNSC has three other tankers, MT Jauhar 11, MT Swat, and MT Shalimar, transporting crude fromSaudi Arabia to Karachi for the refineries. The single-hull tankers—to be banned by the InternationalMaritime Organization by 2007—would enable PNSC to increase income enough to recover tanker costsand earn enough profits by then to totally eliminate its losses, PSNC said. The sources also disclosed a long-term plan to manufacture other oil tankers for international transportand to help China meet its national requirements.

First Lady Officiates At Ship NamingCeremony

South Africa's First Lady Zanele Mbeki officiated at the naming ceremony of a new state-of-the-artship. The 37 000 deadweight tonne product tanker, which cost R250 million is designed to transportrefined fuel around the Southern African and Namibian coasts.

"May God and all our ancestors bless this ship and all who sail in her," Ms Mbeki said at the V&AWaterfront. A Cape Town Grade 12 learner Nkululeko Tshali suggested the name "Southern Unity" ina national competition to name the ship while it was being built in Shin-A, Korea.



The vessel forms part of a R350 million-empowerment deal, regarded as the largest single oil industryprocurement spearheaded by oil companies Shell, BP, Grindrod Ltd (shipping company) and SouthernTankers, a black empowerment shipping operation incorporated in 2001.Dudula Shipping and theGrindrod Ltd own Southern Tankers. The ship, which is one of the safest and most fuel-efficientvessels in operation, was built in South Korea.

Speaking shortly after the "christening" of the vessel, Managing Director of Grindrod Ltd Ivan Clarksaid the ship was a boost for black economic empowerment. "Today marks the start of the a new erain South African shipping, not only are the maritime and liquid fuels empowerment charters beingbrought to reality, but our domestic shipping sector is receiving a massive boost from a truly SouthAfrican empowered company," said Mr Clark.

He said Grindrod had worked tirelessly to facilitate the acquisition of the ship by arranging finance andproviding guarantees.

The company also played a role in the design, construction and delivery of Southern Sun.

Mr Rams Ramashia, Head of Country for BP in South Africa, said Southern Unity would distribute fuelsand refined petroleum products from Sapref refinery in Durban to South Africa's ports on the eastcoast. "It will also play a key role in supplying Namibia through Walvis Bay and up the east coast as faras Kenya, forming a key part of the supply logistics to Mozambique, Malawi, Tanzania and Kenya." MrRamashia said.

He added that Southern Unity would be the first oil tanker in the region never to have carriedpetroleum products containing lead. Shell CEO Benny Mokaba said the naming ceremony was acelebration of the role of partnerships in the pursuit of economic growth as South Africa entered thenext decade of democracy.

"If our efforts to contribute to economic empowerment of the majority of South Africans are tosucceed, our key challenge will be to join hands with partners and sometimes competitors within andacross sectors with the sole purpose of turning South Africa's political miracle into a an economicsuccess story," Mr Mokaba said.

Minerals and Energy Minister Phumzile Mlambo-Ngcuka praised the young Nkululeko for giving the shipan "appropriate name" and all the parties involved in the partnership. Quoting the youngster, theMinister said he had chosen the name because South Africa was a country with many different culturesand languages. "'Southern' reflects the name of the tanker's owners while 'Unity' reflects the needin our country for unity, especially when thinking of our divided past, our many cultures andlanguages, and how much can be achieved by a united country."

INTERTANKO FLEET EXPECTED TOMEET ISPS DEADLINE

INDEPENDENT tanker owners’ group Intertanko says all of its members have submitted Ship SecurityPlans of which 91% have been approved, and 68% certificated. The organisation says: “Input receivedfrom INTERTANKO members to date indicates that the International Ship and Port Facility Security(ISPS) Code implementation work is well underway and that the July 1, 2004 deadline will be met bythe vast majority of members' tankers.”

It adds: “As of 25 June 2004, 214 members have responded to our request for information on theirstatus regarding ISPS Code implementation. They account for 94% of membership companies and



100% of the tankers registered by our membership. So far only 0.5% of the tankers recorded expectnot to meet the deadline, and those for reasons largely outside the operators' control. “

MCCAUGHRIN “SET TO BOOK UPTO 15 VLCCS”

US-based broker McCaughrin Maritime Marine Systems says its clients are looking to time charter up to15 VLCCs as part of its "Newest Petro Project" The company’s founder, president, and owner, BrianMcCaughrin, says all the VLCCs, are double-hull vessels.

He adds that all of the VLCCs will be moving crude from McCaughrin's client's facilities at Nigeria’sBonny Terminal to Rotterdam, Netherlands, and to LOOP in USA. Mr McCaughrin says he has also secured a long term deal to move gasoline from Skika, Algeria, toLagos.

Due to the wind and current the tug Wandelaar is holding the anchored EMERALD BAY in theEveringen ( Westerscheldt river ) to avoid the vessel to drag her anchor.

Photo : Capt Rokus Dieleman – Master tug "Wandelaar" ©

Northern Offshore moves closer toliquidation

JOHN Fredriksen's financially pressed Northern Offshore is preparing for liquidation following a lack ofprogress in talks with creditors. The oil drilling company said an unofficial committee of unsecured creditors refused to negotiate on arestructuring proposal without immediate payment of interest due on it bonds. Northern Offshore is six weeks late with a $7.2 m interest payment on its dollar bonds while creditorsalso demanded interest due on July 6 on the outstanding Norwegian kroner bonds.



In the light of the company's financial position, however, the board does not believe it is appropriate topay funds to any stakeholder without agreement on a comprehensive restructuring. "The preference of the board of directors is to engage with the bondholders in a consensualrestructuring," said Tor Olav Troim, Northern Offshore's chief executive. "To that end, the company has taken the necessary steps to prepare for restructuring negotiations,including agreeing to pay for creditor advisors, preparing a detailed due diligence package for thecommittee, and providing the committee with a detailed term sheet. "Despite these initiatives, the committee does not want to engage in further discussions without theinterest payment being made." Unless the committee entered negotiations, Northern Offshore said its board would "have noalternative but to take steps in relation to the appointment of a Bermuda-based liquidator responsiblefor the liquidation of the company's assets for the benefit of its creditors."

Burnishing shipping imageLAST week it emerged that material used in a bathroom wall and under-basin fascia within thebathroom unit on board various passenger cabins on the Queen Mary 2 (QM2) had failed tests for fireretardant qualities.That, you might think, would hardly constitute major news. But such is the public interest in the vesselthat the story was carried quite prominently in the UK press and the international news wires.Now the UK's Maritime and Coastguard Agency (MCA) publicly accepted that the problem was notserious. The MCA emphasised straightaway: 'It has to be stressed that the material underconsideration is in a normally low-risk wet area of the cabin and that the vessel already has a highlyefficient sprinkler system throughout its passenger accommodation. The MCA is satisfied thatpassenger safety is not compromised.'Nevertheless, the matter drew unwelcome attention to the vessel. Bad news about a big cruise liner isregarded as being newsworthy, the more so if the ship in question is the QM2.In this case there was an additional factor. Just days before the fire safety problem entered the publicdomain, the Cunard flagship was feted as a glowing example of the sort of image shipping needs toproject to the world.

At last week's IMO ceremony, ICCL and Cunard presented a QM2 replica model, and a cheque forUS$10,000 towards a newly created International Search and Rescue Fund, to the UN agency'ssecretary-general Efthimios Mitropoulos. Ironically, the International Maritime Organisation (IMO) andthe International Council of Cruise Lines staged a presentation of QM2 ship model last Monday whichhad received no attention in the general press. The media did, however, latch on to news late lastweek that the ship had a safety problem.Carnival's executive director Peter Ratcliffe was unfazed by the negative publicity. He said that the costof taking quick action, including installing locally sounding smoke alarms and fitting additionalsprinklers as well as removing vanity units in the bathrooms while the ship was in New York wascosting the company 'less than half a million dollars'.

Shrugging off the negative publicity, he said: 'We are not embarrassed by this. A company's reputationis based on how it deals with problems that can arise. It's business as usual.'A few days before, while accepting the model, Mr Mitropoulos had referred to the QM2 as a 'a symbolfor all that is excellent in shipping today'. Given what was to happen a few days later Mr Mitropoulos'words now seem particularly ironic. He said: 'I find it grossly unfair that, when something goes wrongin shipping, politicians and the public are quick to criticise and condemn, whereas, when great thingshappen in the industry, such as the safe and clean delivery of goods by sea in their overwhelmingmajority or the arrival of beautiful ships such as the QM2, they mostly go unnoticed.'



He concluded: 'I, therefore, believe that the time has come for us to work together, moresystematically than ever before, to make politicians and the public aware of the credit shipping rightlydeserves.' His words, of course, went unreported outside the shipping press.The industry has been worried about its image for many years. Several of shipping's representativeorganisations have gone to considerable lengths to try increase public understanding of the industry.The tanker owners' body Intertanko has tried hard in this respect although it has had an uphill struggleas any gains are quickly swept away by the publicity surrounding big tanker spills. Greece's shipping-supported environmental organisation Helmepa has, however, made some considerable impact on thepublic perception of shipping. It does have one big advantage. The Greek public is probably, becauseof the country's geography, more maritime-minded than most.Since taking office, Mr Mitropoulos has made improving the public image of shipping a major priority,hence the QM2 presentation. Unfortunately, this first big attempt at publicity proved a workingexample of how difficult it is. Despite the presence of a UK government minister, top shipping namesand the well-known captain of the QM2, the press simply didn't want to know. There were no TVcameras and no general press reporters.

So, should Mr Mitropoulos and the rest of the shipping industry give up? The answer has got to be 'no'.Shipping is important and needs to get good, as well as the occasional and inevitable bad, publicity.To achieve that shipping - governments, organisations and companies have - must focus on buildingup relationships with the general media. Shipping events are generally covered by the shipping pressand so go completely unnoticed by most of the world. Exactly how the media can be made to loveshipping is a tricky question. But we do need to find the answer and stop pretending that publicitywithin the trade press is, well, publicity.

NAVY NEWSPHILIPPINE NAVY MEN FOIL PIRATE ATTACKTHE presence of three armed Philippine Navy sailors on board an offshore support vessel appears tohave deterred a pirate attack in the Sulu Sea, off the Philippines. According to the International Maritime Bureau’s latest weekly Piracy Report, three uniformed personsin a fishing vessel approached the vessel. They claimed to be from customs or coastguard and wantedto board the ship. One person was armed “with a military weapon” but he hid below deck after seeingthree armed Philippines navy personnel onboard the offshore vessel. The Navy personnel deniedaccess to the would-be boarders. The fishing vessel fled after two hours. Meanwhile the IMB hasrenewed its warnings about attacks off the Sumatran coast saying that six violent and serious attackshave been reported in the past three weeks in the vicinity of the coast of North Sumatra and Aceh, inthe northern Malacca Strait. It says: “Groups of pirates with automatic guns are targeting vessels evenduring daylight hours. Ships are advised to take extra precautions.”

The USS John C. Stennisarrives in Pear Harbor, Hawaii,Tuesday, June29, 2004. Theship is taking part in Rim of thePacific military readinessexercises



Clemenceau asbestos to be removedin Toulon

THE French government has finally decided to have the operation to remove asbestos from thedecommissioned aircraft carrier Clemenceau carried out in Toulon, writes Andrew Spurrier in Paris.A contract has been signed with Ship Decommissioning Industries Corp, managed by Germany’sEckhart Marine, part of the ThyssenKrupp group. The operation, which got under way at the start ofthis week and is expected to last six months, will be carried out by French recycling specialistTechnopure. The carrier will then be sent to India for demolition. The Clemenceau was brought backto France from Sicily in November after the French government took back control of the vessel fromSpanish contractor Gijonesa de Desguaces off Sicily. France accused the company of reneging on anundertaking to remove the 210 tonnes of asbestos sheathing on the vessel in Spain, but the companyclaimed it was entitled to have the operation carried out in Turkey on the basis of the latter’smembership of the Council of Europe.

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The PRESIDENT HUBERT was seen near the Heerema location in ZwijndrechtPhoto : Hans Lingbeek ©


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Top : The ferry VOLCAN DE TACANDE ( former STENA NAUTICA ) of Trasmediterranea Lines servesat the routes between Los Christianos on Tenerife and the nearbye Islands of Gomera and El Hierro.

Photo : Tommy Bryceland, SCOTLAND ©

The Höegh Marlin visited the port of San Antonio, Chile - Guillermo Raymondi ©

INFO RECEIVEDAt the request about the burned out tug at the picture in yesterdays newsletter some

readers came with the following information about the vessel.

The tug is built as the SHINKO MARU No 23 in 1972 at the Kegoya yard in Kure under number 567,the vessel measured 495 GRT and 136 NRT with a length of 48.5 mtr and beam of 9.5 mtr, she was

powered by 4 x M6CY Yanmar diesel which were driving 2 propellors.

In 1981 the tug was sold to SELCO in Singapore and was renamed in SALVIVA and in 1989 the vesselwas sold to Thisseas Shipping Co (Michael Gigilinis Shipping Co), in Thessaloniki (Greece), andrenamed MACEDON.




Another picture of the MACEDON – Photo : Capt John Evans ©

The MACEDON caught fire while towing mv Rothnie abt 100 miles off Egypt 04 Aug 1997. The crewabandoned onto Rothnie. Damage severe, almost totally burnt. The MACEDON was taken in tow bytug Everlast, arriving Thessaloniki 10 Aug 1997 for scrapping.

WW 2 VICTIM OF THE DAY

During July 1st 1940 the KERTOSONO was intercepted by the German raider THOR with commandedby Captain O.Kahler during her voyage from Curacao to Calcutta via Freetown, whilst crossing theAtlantic in position 12.40 N. 31.22 W, just South West of the Cape Verde Islands.

The KERTOSONO which was commanded by Capt D.de Boer, was confiscated end escorted to Lorientand after the war the wreck was found back in Nantes.After the confiscation of the vessel 7 of the 9 passengers where direct released , the remaining 2passengers with the South African nationality was send back to Holland together with the Dutch crew The Indonesian crew members where send to Germany where they had to work as war prisoners.

The KERTOSONO was owned by the Rotterdamsche Lloyd and was built in 1923 and measured a BRTof 9289 ton. Text – Photo : Hand van der Ster



AIRCRAFT / AIRPORT NEWSWorld airline traffic soaring: Iata International air passenger traffic rose by 19.4 per cent between January and May this year comparedwith the same period last year, the International Air Transport Association (Iata) said.Freight traffic over the same five months was up 12.2 per cent, according to Iata figures.'Not only have we recovered from the impact of Sars and war in Iraq, all major regions of the worldare reporting traffic levels above those of 2000, the last normal year for our industry,' said director-general Giovanni Bisignani on Monday.

In May alone, passengers on all international routes were up 38 per cent on May last year when theindustry was suffering from the impact of the Sars epidemic that swept across Asia and reachedCanada, and fallout from the invasion of Iraq.For Asian airlines, Iata said, the recovery was even more dramatic. Traffic there in May was up by 108per cent on that of the same month last year, indicating that the Sars effect was well and trulyovercome.Iata said the January-May figures showed passenger traffic up 8.8 per cent over the same period in2000, just before the onset of a global economic downturn which set the industry on a steepdownward path.That decline was sharpened by growing global political instability after the September 2001 hijackingattacks in the United States, the US-led assaults on Afghanistan and Iraq, global terrorism, and theSars crisis.Earlier this year, airline chiefs feared that steep rises in oil prices would hit the industry's overall globalbottom line, but Mr Bisignani, in a statement on the figures, said a recent decline had helped improvethe situation. But efficiency gains and cost-cutting would have to remain priorities for airlines if theindustry was to return to full health, he declared.Iata said that despite the shocks that had rocked the industry over the past four years, its underlyinggrowth rate was 3.6 per cent a year. However, this is still only half the rate achieved during the later1990s.

Of the major regions apart from Asia, North America saw a passenger growth of 32.8 per cent in thefirst five months of this year over January-May 2003 and Europe saw an increase of 19.1 per cent,according to Iata.In the Middle East, traffic was up by 43.9 per cent, and in Latin America by 11.5 per cent January-May.In Africa the increase was 8.3 per cent.

…. PHOTO OF THE DAY …..



The new SVITSER BOOTLE operating at the Mersey – Photo : Paul Fazackerley ©

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