June 2016
INTERNATIONAL SALVAGE UNION
ISU 2015 statistics show value of the salvage industry ISU has published its statistics for 2015 and they show a robust industry continuing to provide vital services in the face of a challenging economic climate for world shipping. Safer ships and better operating practice have generally reduced the amount of emergency response work for salvors but individual cases may be more complex and wreck removal activity continues to be an important source of income. Gross revenues for ISU members in 2015 from all activities fell slightly to US$ 717 million. It compares with US$ 775 million in 2014. The statistics are for income received in the given year but which may relate to, in some cases, operations from a preceding year. The total number of services recorded in 2015 was 212. It is the second highest since 1999 – there were 249 services in 2014.
decade. 2014 saw the lowest annual number of LOF cases on record (37) and this may be reflected in the 2015 ISU statistics. At the same time, revenue from operations conducted under contracts other than LOF was the second highest at US$ 98 million and shows a gently rising trend. Revenue from LOF cases has fallen to below 50% of the total of all “dry” salvage revenue for the first time – 46% in 2015 (55% in 2014). Similarly, the number of LOF cases as a percentage of all “dry” salvage cases is the lowest at 16% in 2015 (23% n 2014). It reflects the increasing trend to use other commercial contracts and terms in place of LOF. Revenue derived from the Special Compensation P&I Club Clause (SCOPIC) in LOF cases increased significantly to US$ 139 million in 2015.
Wreck removal income has grown during the past decade and accounts for more than half of gross revenue with US$ 397 million in 2015 (US$ 394 million in 2014). This trend may indicate the increasingly stringent requirements of the coastal state authorities and the increasing complexity of some wreck removal jobs. The 2015 statistics record 64 wreck removal jobs compared with 91 in 2014.
Total salved values (ship and cargo) in LOF cases has fallen to US$ 638 million in 2015 from US$ 1.2 billion in 2014. But the average values salved in LOF cases has remained reasonably consistent at US$ 19 million. The figure has stayed within the US$ 15 – 25 million band since 2010. Average LOF revenue expressed as a percentage of average LOF salved value has fallen for the second consecutive year and was 13%.
Revenue from LOF cases at US$ 83 million is the lowest in more than a
The statistics show a significant drop in all “dry” salvage revenues (LOF and non-
LOF) to US$ 181 (US$ 327 in 2104). It is the lowest figure since 2010. Commenting on the statistics, ISU President, John Witte said: “Our members are proud to serve the shipping community and they make a major contribution each year to mitigating potential loss. “But the statistics again show the variability of our industry and the fluctuations in the sources of revenue. “There has been a decline in the contribution of income from traditional LOF cases. That is offset to some extent by increased SCOPIC revenue and steady wreck removal income which, over the years, has become increasingly important for our members, and, indeed, our clients. “We know the days of more than one hundred LOFs each year are gone but nevertheless ISU believes it remains the best contract in many emergency response situations. “Using the right contract in the right situation is very important and owners, insurers and salvors are committed to improving their understanding of each others’ needs and preferences which will improve trust on both sides.”
See graphics page 2
China Rescue and Salvage responds to boxship collision and fire China Rescue and Salvage (CRS) has been involved in a substantial casualty incident after the container vessel, SAFMARINE MERU, laden with 1170 containers, was in collision with another vessel some 40 miles east of Zhoushan, China. It led to an engine room fire in the containership as well as flooding and there was an associated oil spill. On the instruction of the local authorities, China Rescue and Salvage dispatched the ocean-going tugs DONG HAI JIU 117 and DONG HAI JIU 115 - each of 12240 BHP - to carry out fire-fighting and oil cleaning operations. Subsequently the casualty vessel was towed by sister tug DONG HAI JIU 118 into Ningbo port for cargo discharge. CRS reported that the salvage operation lasted from 8 - 13 May. 1
ISU Salvage Statistics 1999 – 2015
All Sources of Revenue
Number of “Dry” Salvage Services per Year
850
250 250
800 750 700
200 200
650 US DOLLARS (Millions)
600 Number of Cases Number of Cases
550 500 450 400 350 300
150 150
100 100
250 200
50 50
150 100 50
0 0
0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LOF REVENUE SCOPIC REVENUE WRECK REMOVAL REVENUE
ARTICLE 14 REVENUE OTHER SALVAGE REVENUE
NO.LOF CASES NO.LOF CASES
LOF Salved Values & Average Salved Values
330 330
40 40
300 300
35 35 30 30 25 25 20 20 15 15
270 270 240 240 210 210 180 180 150 150 120 120 9090
10 10
TOTAL LOF SALVED VALUES TOTAL LOF SALVED VALUES
TOTAL NO. CASES TOTAL NO. CASES
360 360
45 45
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
NO. NON LOF CASES NO. NON LOF CASES
Total “Dry” Salvage Revenue (exc. SCOPIC)
US DOLLARS (Millions) US DOLLARS (Millions)
USUS DOLLARS DOLLARS (Millions) (Millions)
2,800 2,800 2,600 2,600 2,400 2,400 2,200 2,200 2,000 2,000 1,800 1,800 1,600 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
6060
5 5
3030
0 0
0 0
19992000 20002001 20012002 20022003 20032004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 20112012 20122013 20132014 20142015 2015 1999
AVERAGE LOF SALVED VALUES AVERAGE LOF SALVED VALUES
LOF REVENUE LOF REVENUE
LOF as a Percentage of all "Dry" Salvage
NON LOF REVENUE NON LOF REVENUE
TOTAL REVENUE TOTAL REVENUE
Wreck Removal Activity
70
60
60
50
50
40
40
30
30
20
20
10 0
600
500
10
500
400
SERVICES
70
600
SERVICES
80 US DOLLARS (MILLIONS)/NUMBER OF
90
80
US DOLLARS (MILLIONS)/NUMBER OF
90
PERCENTAGE (%)
PERCENTAGE (%)
100 100
400
300 300
200 200
100 100
0 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015
0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
NUMBER OF SERVICES
LOF LOF REVENUE AS %AS OF%TOTAL REVENUE OF TOTAL
LOF LOF CASES AS %AS OF%TOTAL CASES OF TOTAL
NUMBER OF SERVICES
2
REVENUE GENERATED (US$ MILLIONS) REVENUE GENERATED (US$ MILLIONS)
ISU NEWS
New members ISU welcomes the following new members Raul A Negro y CIA S.A. (Argentina) Commercial office 25 de Mayo 356, 7th Floor, C.A.B.A. Argentina Operations office Bransden 169, C.A.B.A., Argentina +54 11 4307 5000 +54 911 5182 7004 contacto@rn-salvamento.com www.rn-salvamento.com
Marine Rescue Service of Rosmorrechflot MRS (Russia) 3/6 Petrovka Street, Moscow 125993, Russia +7 (495) 626 18 08 info@morspas.co Principal contact Andrey Khaustov Director New Executive Committee members Captain Nicholas Sloane (South Africa),
Resolve Marine, and Corrado Neri (Italy), Fratelli Neri, have joined the ISU Executive Committee AGM 2016 The ISU AGM will take place 27 – 30 September 2016 at the Grand Hotel Palzzo, Livorno, Italy. The programme will include the formal business of the Annual Meeting, an Executive Committee meeting, reception and gala dinner. The full programme and booking arrangements have been circulated to full members. LOF e-guarantee Lloyd’s has launched its electronic system which will enable salvors to track salvage security in active Lloyd’s Open Form cases. The Lloyd’s Salvage Arbitration Branch (SAB) should advise the salvors and their solicitors as soon as possible when salvage security has been provided to the SAB. It is part of the service that Lloyd’s provides when administering a case under LOF. This will now be enhanced by allowing salvors to gain access to the SAB database enabling them to view directly the salvage guarantees provided in their cases. For each case the salvors will be able to view a list of guarantees lodged with Lloyd’s and then see the full details of the guarantee including any specific
points entered, such as whether the guarantee has been lodged under protest as to amount and specifics of the cargo covered by that guarantee. To gain access to this system the salvors must register for an account at www. lloyds.com and contact Diane Bowles of the Salvage Arbitration Branch (diane. bowles@lloyds.com) who will activate their account so that they can view their guarantees. The SAB will continue to send notifications when any new guarantee is provided in a case but it is envisaged that the new facility will enable the salvors to have more information instantly available to them. Wreck Removal Tendering ISU is working to update the the Code of Conduct on wreck removal tendering with the International Group of P&I Clubs. It will include consideration of new models of risk assessment and bid evaluation which have begun to be used by some Clubs. BIMCO ISU is engaged with the BIMCO Documentary Committee on its proposed Decommissioning Contract and an Oil Spill Response Contract. Drafts are at an early stage.
Obituary - Captain Dai Davies The death has been announced of Dai Davies in South Africa. He was born near Fishguard in west Wales in 1929 and joined the town’s Sea Cadets in 1941. Dai Davies joined Anglo Saxon Petroleum in 1947 - it was part of the Shell group and he then spent 15 years at sea with Shell, much of it in south east Asia, serving in product tankers as well as in the bitumen trade in the Caribbean. Dai came ashore in 1962 to work as a mooring master for Land and Marine Contractors working first in the United Arab Emirates before transferring to Cape Town in 1965 as a marine superintendent for Land and Marine and Salvage (LMS) and supervising the installation of the Conventional Buoy Mooring Terminal at Oranjemund, Namibia for De Beers. He then acted as Marine Advisor for the installation of the
Single Buoy Mooring Terminal for Shell at Isipingo (Durban) and moored the first tanker, the VLCC JAPAN DHALIA, in 1970. He managed the Durban SBM Terminal for six years before returning to Cape Town in 1976 as Managing Director of LMS. For the next 10 years there were many notable salvage operations in which he took a leading role either directly as Salvage Master or as the responsible company representative. The cases included: MIMOSA - a laden VLCC with ship-to-ship cargo transfer; LATERUS – a laden VLCC grounded on Dassen Island; the LINBAD EXPLORER, aground in the Antarctic and the VENOIL/ VENPET collision off Port Elizabeth. During this period, Dai Davies was also 3
involved in extending the company's operations to Argentina, Chile and Brazil, carrying out offshore oil terminal installations and maintenance. In 1986 LMS merged with Saftugs and Dai became Managing Director of the merged company, Pentow Marine, and was responsible for many major salvage services until his official retirement in 1994. Following his retirement he became a marine consultant and SCR remaining active until his death on 4th June 2016. Numerous colleagues and friends, including Nick Sloane and Dave Main, paid tribute to Dai Davies for his leadership qualities, mentoring and sense of humour. A remarkable man.
Members’ News Multraship
coal terminals.
Multraship hosted its annual reception for clients and business contacts in Terneuzen in April. The event provided an opportunity for Multraship to demonstrate its tug simulator facility which has been in operation since early 2015.
Mammoet
The simulator consists of the following components: • SimFlex4 Tug Simulator • SimFlex4 Assisted Ship Simulator • Operator Control Centre (OCC)
Mammoet Salvage Americas won more than US$28 million in arbitration against PICO, a Mexican subsidiary of an Egyptian drilling company arising from a dispute over the salvage of the liftboat PICO 4. The dispute dated back to a Wreckhire 2010 contract from 2011 after the PICO 4 suffered a major punch through while working in the Bay of Campeche, Mexico. Mammoet was engaged to retrieve the legs of the liftboat which were stuck in mud in 45 metres of water close to an operational platform. The dispute centred on information supplied and delays in the job. Resolve
Above, ISU Legal Advisor, Rob Wallis, tries his hand driving the Multraship tug simulator
The simulator’s main purpose is to provide Multaship’s own crew with custom made training for sailing with Azimuth Stern Drive tugs, Voith Schneider tugs and the innovative Carrousel Rave Tug. The tugs used in the simulator are custom built and represent actual vessels in the Multraship fleet - the tug and the assisted ship simulator are equipped with all the navigation equipment as it is used on Multraships’ craft. The whole of the Western Scheldt area is programmed into the simulator, including the ports of Zeebrugge, Flushing, Terneuzen, Ghent and Antwerp. Augustea It was announced that Augustea Holding’s subsidiary, Augustea Imprese Marittime e di Salvataggi, will be taken over by Italian shipping group Rimorchiatori Riuniti in a deal reported to be worth some €75m ($85m). The deal involves a fleet of 16 tugs deployed in various Italian ports as well as four ocean going tugs. Augustea Imprese Marittime e di Salvataggi also has operations at Venezuela’s main
Resolve has expanded its operations with the opening of a base in Cape Town, South Africa. The new Resolve facility employs nine salvage experts including senior salvage master Nick Sloane, who brings more than 34 years of experience, as well as a team of salvage engineers and a dive team. Resolve said the move was driven by the increased volume of vessels transiting around the Cape, in large part due to substantially lower oil prices. Resolve said that it builds on its commitment to the continued growth of its emergency response capabilities in Europe and Africa.
casualty in Chinese waters, it will be able to provide operational, advisory or technical assistance to its clients which will support the establishment of Zhoushan International Marine Services Base, which is significant in promoting the development of the Yangtze River Economic Belt.
Nicolas Tsavliris (seated, right) signs the MOU between Tsavliris Salvage and Zhoushan Port Free Trade Zone
Tsavliris also said it was seeking to establish, through an exclusive joint venture with its Chinese partners Kamji Marine, an international marine services online platform that will provide “one-stop services for ships and shipowners around the world”. Elsewhere, Tsavliris was heavily involved in Greek shipping’s biennial Posidonia events. It sponsored the “6th Blue Shipping Summit 2016” with an environmental focus and it participated in the Marine Traffic Seminar. On the sporting front, Tsavliris won the Hill Dickinson charity rowing competition and Alexandros Tsavliris, along with his partner, Apostolos Kaltis, won the Posidonia tennis tournament. Gigilinis
Tsavliris Tsavliris Salvage has signed a Memorandum of Understanding with Zhoushan Port Free Trade Zone Administrative Committee regarding the creation of a salvage network in Chinese waters. George Tsavliris said: “The relationship and cooperation between China and Greece is extremely important [and] continues to grow from strength to strength”. The rise of the Zhejiang Zhoushan Archipelago New Area is focused on shipping and has attracted a growing number of maritime industries to locate in Zhoushan. Tsavliris said that in the event of a 4
Gigilinis reports a busy second quarter in towage in what it describes as “less than ideal” market conditions. It performed nine tows in the Mediterranean, North Sea and Northern Europe. It included moving new build hulls (see picture above of Gigilinis' tug HELLAS), barges and floating docks and included three voyages from Turkey to Norway and from the Netherlands to Greece and from the UK to Turkey. Gigilinis said each tow was completed safely and on time.
Donjon raises sunken tug from Hudson River In March 2016 the tug SPECIALIST sank after it was in collision with a stationary construction barge, while passing under the Tappan Zee Bridge on the Hudson River, New York. Three of the tug’s crew lost their lives in the incident. Donjon Marine quickly responded by dispatching a dive team to gather information to plan the refloating of the tug. Donjon and the owners agreed a BIMCO WRECKFIXED 2010 contract under which the work was performed. During the project, Donjon worked in close coordination with local authorities and under the USCG Incident Command to assist with recovery of the bodies and the tug. Initial dive surveys indicated that the tug was sitting upright on the bottom and located between the bridge’s main span abutments in 40 feet of water. Its position would allow for lifting slings to be rigged on both the bow and stern of the tug and a refloating plan was drafted and approved by the authorities. The plan included bringing Donjon’s crane barge DELAWARE BAY to the site prior to the arrival of Donjon’s 1000 tonne capacity derrick barge, CHESAPEAKE 1000, to serve as the salvage platform to facilitate both preparatory work and rigging. The salvage and dive team, led by Donjon Salvage Master Bill Kratz, used the slack water periods to avoid high current
conditions to place slings around the tug in preparation for raising the craft to the surface. Once the CHESAPEAKE 1000 arrived, it was stationed on location by securing alongside the pre-positioned DELAWARE BAY. Pollution control teams were then deployed to surround all onsite equipment with oil boom to contain any potential contaminants during the operation. On the evening prior to the lift, divers connected both sets of slings so the tug would be ready to lift at first light.
raised to the surface. Once the tug was stable and afloat, local authorities were able to conduct both removal operations and a comprehensive investigation. The salvage team remained onboard during the investigation and continued to pump tanks, removing both weight and pollutants. When the investigations were completed the tug was lifted out of the river and placed on a transport barge.
On 24 March 2016 the SPECIALIST was
Revised York Antwerp Rules – IUMI reaction Revised York-Antwerp Rules (YAR 2016) were adopted by the Comité Maritime International (CMI) at its conference in May this year and have been welcomed by the International Union of Marine Insurance, among others.
IUMI says the new YAR 2016 introduce helpful measures which, if incorporated into contracts, may reduce insurers' General Average (GA) exposure by a few percentage points. The most important gains, according to IUMI, include:
The rules were last updated in 2004 but there was a lack of consensus between the main commercial stakeholders regarding many of the changes and were not widely supported by shipowners.
• Interest will be fixed annually at ICE LIBOR on the first banking day of each year in the currency of the adjustment plus 4 percentage points. For a US$ adjustment that would produce a rate of 5.18% for 2016 as opposed to 7% under YAR 1994 or 2.5% for YAR 2004. However, while this will result in savings in the short term, if interest rates rise substantially insurers may be exposed to rates even higher than 7%.
It meant the 2004 YARs were incorporated in relatively few contracts. In a bid to address this, the 2012 CMI Conference in Beijing set up an International Working Group to "carry out a general review of the York-Antwerp Rules and to draft a new set of Rules to meet the requirements of ship and cargo owners and their respective insurers.”
• Commission at 2% will no longer be recoverable. This was one of the few changes made by the YAR 2004 which was retained. 5
• Several measures designed to speed up the adjusting process have been introduced. These include excluding low value cargo from contributing in GA if the cost of including them is greater than their contribution and clarifying the process by which adjusters can estimate GA allowances in the absence of information from the parties. • Approved CMI Guidelines about the nature and operation of the GA process have been introduced which it is hoped will assist those involved in GA in understanding what is required of them. • BIMCO’s Documentary Committee has agreed that all new and revised BIMCO charter parties and bills of lading will now refer to general average being adjusted in accordance with the new York-Antwerp Rules 2016.
Associates’ and Affiliates’ News ISU welcomes the following new Associate Member Vikoma International Limited Oil spill containment, flood treatment and water treatment solutions Kingston Road East Cowes Isle of Wight PO32 6JS, UK +44 (0) 1983 200560 scruttenden@vikoma.com www.vikoma.com Barge Master Barge Master received the “Spotlight on New Technology award” at the Offshore Technology Conference (OTC) for its BMT40 motion-compensated knuckle boom crane. The company says the system has a small footprint allowing it to be easily accommodated on any vessel and enables safe operation in conditions of significant wave height of 3 metres. The crane has been sold to Royal Wagenborg for use on a 10 year NAM/Shell charter for maintaining gas platforms in the North Sea. Baltic Exchange and Singapore Exchange The Baltic Exchange has entered exclusive discussions with Singapore Exchange Limited (SGX) regarding a cash offer from SGX for 100% of the share capital of the Baltic Exchange. The Baltic Exchange and SGX have met shareholders of the Baltic Exchange and the wider stakeholder community to discuss the offer. SGX emphasised that there was no certainty that the exclusivity agreement would lead to a definitive agreement or completion of the deal. SGX’s proposal included a commitment to maintaining continuity in what it called “aspects of significance and relevance” to both the Baltic Exchange and SGX such as keeping the Baltic Exchange’s headquarters at St Mary Axe in the UK’s City of London. TMC TMC announced in May that it had joined the expanding Marine & Offshore division of Bureau Veritas the French testing, inspection and certification provider. TMC said it was a strategic alliance that will provide TMC with technical synergies and greatly enhance the services it can offer to existing and new clients. It said it will still allow for TMC’s plans for further
geographic expansion. TMC has been in business providing technical advice and support since 1979 and said it will retain its corporate identity and brand. CWaves CWaves, an independent maritime and engineering consultancy based in the UK’s City of London, has welcomed Nigel James to its team. CWaves said it would enable it to provide clients with a “comprehensive consultancy and response service for salvage and wreck removal operations, whatever the nature or location of the incident”. Nigel James is a Master Mariner and member of the SCR Panel at Lloyd’s with many years of experience in all aspects of maritime casualty management. CWaves said the appointment complements its naval architecture and engineering capabilities. Brand Marine Consultants bMC has announced that Captain Ajay Prasad has joined its leadership team as Managing Director and Partner for Southeast Asia. Captain Prasad will be based in Singapore and will oversee bMC’s business and operational activities in South East Asia, Australia and the Middle East. Founder of bMC, Dennis Brand said: “Captain Prasad’s exemplary background in consultancy, salvage and marine management will further strengthen bMC’s global presence, specifically in Asia and the Far East. He is a great addition to our team.” IUMI IUMI has announced the launch of its education programme. It follows the annual conference in Hong Kong in 2014 at which IUMI members acknowledged the demand for marine insurance educational tools and the establishment of a comprehensive training scheme was identified as a core objective. IUMI’s first “webinar” on the new rules for container weight verification requirements under SOLAS took place on 21 June 2016. IUMI said its goal is to develop a qualification framework for marine insurance professionals. It said that thorough training is a “fundamental pillar for the future of any business” and in various countries successful national programmes for marine insurance education are already in place. IUMI hopes to “add value” with an emphasis on the international aspects of the industry. In the late summer 2016 a programme is 6
envisaged on perishables, as well as three sessions on the revised York-Antwerp Rules. Additionally, IUMI has raised concerns about the new mandatory container weighing directive which comes into force on 1 July 2016. IUMI strongly supports the amendment to SOLAS regulation V1/2 for the verification of the gross mass of packed containers (resolution MSC.380(94)). However, it believes not all shipping and logistics companies, nor shippers, will be ready for this new resolution and this is likely to affect the cargo insurance sector in the short term. DISA DISA has announced the purchase of 12 super winches which were were initially used for the recovery and removal of offshore structures in the Gulf of Mexico following the Rita and Katrina hurricanes. Each winch has a standard capacity of 500 tonnes, which, with the sheaves and rollers, can be upgraded to 1000 tonnes per winch - delivering a total pulling/hoisting capacity of 12000 tonnes. The winches are currently stored in The Netherlands and will be marketed for wreck removal and offshore projects worldwide. IMIF The International Maritime Industries Forum (IMIF) has announced the appointment of its former Chairman, Jim Davis as honorary Life President. Mr Davis steps down as chairman after leading the IMIF for more than 40 years. IMIF’s new Management Council will comprise Harry Theochari, global head of Transport at law firm Norton Rose Fulbright, who will assume the position of interim Chairman; Michael Parker, Head of Global Shipping at Citi, Jean Richards, founder and Chief Executive of Quantum Shipping Services; Lambros Varnavides, Deputy Chairman of the Baltic Exchange; Philippa Wright, Director of the Foresight Group and Alan McCarthy, shipping financier and lecturer in maritime economics. Mr Davis said: “After more than 40 years it is time to take life at a slower pace and to pass on the management and future development to more energetic minds.” Harry Theochari said: “Led by Jim, IMIF has steered the shipping industry through many dramatic events since it was founded in the mid-1970s. Oil embargos, shipbuilding overcapacity and the oversupply of vessels, increased regulation and the financial crisis have all been addressed by IMIF.”
ITS Convention, Boston Standards of safety within the tug industry was the major recurring theme of the 24th International Tug, Salvage & OSV Convention (ITS), held in Boston, 23-27 May 2016. The opening keynote address was given by American Waterways Operators' President and CEO, Tom Allegretti, who said: "Our industry's safety journey over the past quarter-century has been nothing short of remarkable.
the US system provided for a high quality regime with clear responsibilities. But he said the requirements of associated US Coastguard regulations and Vessel Response Plans meant that, for the salvors, it was very difficult to make a commercial business from salvage alone. ISU General Manager, Mark Hoddinott, presented a paper analysing changes in the salvage industry and their likely impact on its future.
"We are a better, safer industry with a dramatically reduced environmental footprint. Coast Guard casualty statistics testify to this fact, showing significant, measurable declines across the whole array of safety metrics: crew fatalities, personal injuries, oil spills and vessel casualties."
Along with various aspects of safety and forthcoming environmental legislation, other papers considered technical innovations, best practice, lessons learned and thoughts on what may be significant changes in the tug, salvage and offshore sectors in the near future. The context for
Many ISU members were in attendance and the event was preceded by an ISU Executive Committee meeting timed to coincide with the conference.
Below, John Witte addresses ITS with Mike Allen, conference chairman, and Mark Hoddinott who is also seen, right, at the lecturn.
ISU President, John Witte, presented a paper considering the impact on salvage provision in the US following the introduction of OPA 90. He concluded that
most papers was the prevailing difficult economic climate. There were more than 100 stands from more than 40 countries in the exhibition area where companies displayed state-ofthe-art technologies and designs and took the opportunity to showcase a wide range of products to delegates. Craig Williams of Riverside Marine said of the event: "At the convention, there was a diversified group of people from all parts of the world, in a wide variety of the tug and offshore and salvage environments. Getting to network with some of the delegates was an experience you could not achieve anywhere else but at this conference."
7 6 7
Five Oceans Salvage attends grounded bulker in Mauritius Five Oceans Salvage is engaged in an ongoing operation following the grounding in mid-June of the bulker BENITA, in ballast, off Mahebourg, Mauritius. Indications are that a number of cargo holds were damaged and are flooded however the casualty was stable, though firmly aground. Five Oceans is working in close cooperation with the vessel’s owners and the Mauritian authorities and the priority of all parties has been the removal of the 145 tonnes of fuel oil on board. This oil is currently being pumped from the fuel tanks to specialised containers on the vessel that will then be removed to shore by helicopter. The IONIAN SEA FOS - 10,560 bhp - is on site to provide stability and control to the stranded vessel. The salvage vessel is permanently stationed in Mauritius and Five Oceans says its crew are very familiar with the local conditions and coastline. The operation is being conducted with environmental protection as the top priority. Specialised anti-pollution booms have been placed along the surrounding shoreline as a precaution and, while
some small silver sheen patches have been observed close to the casualty, they appear to be dissipating in the surf. Any oil that does reach the booms will be collected and removed by dedicated teams on site. A plan to re-float and remove the vessel from the shoreline is being developed in conjunction with
the authorities. The salvage operation is being led by senior salvage master Nikolaos Pappas, a naval architect and marine engineer with more than 20 years’ experience in the industry and who has worked on numerous salvage and wreck removal operations.
Calcium Hypochlorite in containers New guidelines for the carriage of Calcium Hypochlorite in containers have been published jointly by CINS (the Cargo Incident Notification System) and the International Group (IG) of P&I Clubs. Global production of Calcium Hypochlorite for both domestic and export markets is estimated at about 400,000 tonnes per year. The product is marketed widely as “chlorine powder” or “bleach powder” for applications such as water treatment or as a bleaching agent. The practices set out in the new guidelines are intended to allow the carriage of Calcium Hypochlorite under controlled conditions and to ensure that it is properly declared, packaged and carried. The practices are also intended to encourage carriers to have the confidence to accept the commodity for shipment. The IG Clubs have, in recent years, noted an apparent increase in container fires
involving Calcium Hypochlorite. It has led to some shipping lines imposing strict carriage precautions or even outright carriage bans. Fire incident investigations suggest that, in the vast majority of cases, the Calcium Hypochlorite has either been mis-declared by shippers (and so possibly considered as harmless) or noted as having less strict carriage requirements under the IMDG Code.
declared Calcium Hypochlorite under an acceptable method. It is intended that the new guidelines will provide clearer and more logical step-by-step guidance, starting with issues surrounding cargo hazards and categorization under the IMDG Code, through to issues concerning container selection, container stuffing and stowage on the ship.
The P&I Clubs - through the IG - and the member carriers of CINS say they recognise that many responsible shippers do properly declare their Calcium Hypochlorite shipments and these have been carried without incident, by applying the additional precautions.
Key recommendations of the guidelines are the use of plastic drums with adequate air circulation, a package limit of 45 kg net weight and a limit on the maximum payload per container not exceeding 14 tonnes. Dry or reefer containers may be used - provided that a proper risk assessment is undertaken.
With large quantities of Calcium Hypochlorite being shipped it is critical to discourage mis-declaration by shippers and to encourage shipping lines’ confidence in the carriage of properly
A full overview of the precautions can be found in the guidelines published on the websites of CINS www.cinsnet.com and the International Group of P&I Clubs www.igpandi.org
8
New ISU member Raul Negro in action on flooded Parana River, Argentina The pusher tug CAVALLIER III, LOA 40 metres and 600 tonnes, sank during a storm at Kilometre 1004 of the Paraná River while conducting a barge convoy. There were no injuries. Immediately, emergency response services took charge of the resulting pollution with the collection of fuel and clean-up and remediation of the local vegetation and environment. When the initial emergency was under control, lengthy commercial negotiations 1.
began between new ISU member Raul Negro and the owners and underwriters. The salvors said there was “constant pressure” from the local authorities. It took three months to reach an agreement during which time a large amount of sediment - sand, mud and vegetation covered and filled the vessel. The river levels were described as “extraordinary” due to the El Niño weather phenomenon. Preliminary operations consisted of many hours of diving to clean and remove as much of the sediment as possible
3.
5.
9
while the MAGNUS IX Sheerleg - 900 tonnes lifting capacity - was mobilized to the location from its normal berth 1000 kilometres away. After nine days, the refloating efforts were successful - bringing the tug up from a depth of 15 metres. Temporary repairs were carried out and the tug was prepared for a safe move to Paraguayan waters where it was delivered to the owners.
International Monitor UN extends UNCLOS
BIMCO Manpower Report
ICS new chairman
The United Nations has established a new UN Preparatory Committee under the auspices of the Division for Ocean Affairs and the Law of the Sea. It follows the decision of the UN General Assembly in 2015 that the UN Convention on the Law of the Sea (UNCLOS) should be expanded to include a new legally binding instrument on the conservation of marine life in areas beyond national jurisdiction.
The latest five-year BIMCO/ICS Manpower Report forecasts a serious future shortage in the supply of seafarers. The report identifies a current shortfall of about 16,500 officers (2.1%) and the need for an additional 147,500 officers by 2025 to service the world merchant fleet. The report notes that the global supply of officers is forecast to increase steadily, but this is predicted to be outpaced by increasing demand.
It is relevant to shipping because the new UN instrument could include areabased management tools such as Marine Protected Areas on the high seas. UNCLOS provides the basic legal framework for protecting the oceans, and, under the authority of UNCLOS, the shipping industry is regulated by IMO. But the regulation of other ocean activities, especially on the high seas, is not so well developed. The intention behind the proposed new UN instrument is to develop solutions to the vacuum that exists with respect to issues such as preserving global fish stocks from unregulated fishing, and damage to marine ecosystems caused by land based agriculture and industry.
Minimum wage for seafarers The recommended International Labour Organization (ILO) Minimum Wage for Able Seafarers will remain at its current level of US$ 614 basic pay per month until at least 2018. It comes after an ILO Joint Maritime Commission (JMC) meeting held in Geneva, comprising representatives of maritime employers co-ordinated by the International Chamber of Shipping (ICS) and seafarers’ unions co-ordinated by the International Transport Workers’ Federation (ITF). Speaking on behalf of ICS, the spokeperson for the Shipowners’ Group, Max Johns (German Shipowners’ Association) said: “The continuation of the current minimum wage until at least 2018, at the increased level which came into effect in January 2016 as a result of the previous JMC agreement, means that employers should benefit from a period of stability in what are otherwise very challenging markets for the global industry.”
Some officer categories are in especially short supply, including engineer officers at management level and officers needed for specialised ships such as chemical, LNG and LPG carriers. The Annual General Meeting of the International Chamber of Shipping (ICS) elected a new Chairman, Mr Esben Poulsson, Singapore, (above). ICS is the principal international trade association for shipowners, with a membership comprising national shipowners’ associations from 37 countries representing all sectors and trades and over 80% of the world merchant fleet. Mr Poulsson will serve as a leading representative of the global shipping industry, overseeing its liaison with regulators such as the International Maritime Organization and the International Labour Organization. Speaking after his unanimous election, Mr Poulsson said: “I am very honoured to have been elected by the ICS member national shipowner associations. Being Chairman is a big responsibility and my primary task will be to ensure that ICS continues to represent the considered views of the entire industry. This means reflecting and reconciling the opinions of different ship types and trades, different national viewpoints and the interests of shipping companies big and small.” Mr Poulsson identified CO2 emissions and the Ballast Water Convention as the two most high-priority issues for ICS. Mr Poulsson will be supported by four ICS Vice Chairmen: Mr John C Lyras (Greece), Mrs Karin Orsel (Netherlands), Mr Mark Martecchini (Liberia) and Mr Gerardo Borromeo (Philippines). To coincide with its Annual Meeting, ICS published its 2016 Annual Review of maritime policy developments, see www. ics-shipping.org 10
The report suggests that in the past five years the industry has made good progress with increasing recruitment and training levels and reducing officer wastage - retaining qualified seafarers and increasing the number of years which they serve at sea. But the report indicates that, unless training levels are increased significantly, the growth in demand for seafarers could generate a serious shortage in the total supply of officers. The report estimates there is a current surplus of about 119,000 ratings (15.8%) with demand only having increased by about 1% since 2010. China is thought to have overtaken the Philippines as the largest single source of seafarers qualified for international trade (although the Philippines is still the largest source of ratings). However, data from international shipping companies suggests that the extent to which Chinese seafarers are available for international service may be more limited. The Philippines and Russia are seen as equally important sources of officers, followed closely by Ukraine and India. BIMCO CEO, Angus Frew, said: “The industry can put this report to good use by ensuring we can continue to operate the world merchant fleet with sufficient numbers of qualified and competent seafarers.” A summary of the key figures in the report can be downloaded free of charge from the home pages of the BIMCO and ICS websites. The full BIMCO/ICS Manpower Report can be purchased from Marisec Publications at http://bit.ly/27azcQf
Malayan Towage and Salvage, in partnership with Nippon Salvage Corporation, as co-salvors, has successfully refloated the M/V BELLE ROSE, a 50,472 tonnes dwt bulk cargo vessel registered in Panama. The vessel, fully laden with 48,000 tonnes of
cement in bulk, was enroute to Cebu in the Philippines from Tsukumi in Japan when she went aground off Monad Shoal in Northern Cebu in the early morning of June 13, 2016. Below, Malayan's salvage tug TRABAGADOR alongside BELLE ROSE
Salvage World is pubished by: ISU, Holland House 1-4 Bury Street London EC3A 5AW
Tel: +44 20 7220 6597 Email: ISU@marine-salvage.com