December 2016
INTERNATIONAL SALVAGE UNION
Salvage and Wreck Conference focuses on Lloyd’s Open Form A panel session was devoted to considering the use of LOF. Jim Allsworth of CSolutions reminded the conference that the shipping industry “needs a professional salvage capability” and said there was a risk that, if the trend to undertake jobs on commercial terms continued, the required salvage capability might not be available.
Left to right: Andrew Chamberlain, George Tsavliris, Jim Allsworth, Sam Kendall-Marsden.
The state of the Lloyd’s Open Form salvage contract was a significant focus of the recent Salvage and Wreck Conference. ISU members, associates and executive committee members were well represented at the annual event in London. The conference featured three themes: law and insurance; tugs and spill response. ISU President, John Witte, along with Dieter Berg, President of the International Union of Marine Insurance opened the main proceedings with an outline of the state of their industries. Mr Berg highlight challenges for marine insurers including the commercial environment, market conditions and technological challenges. Looking to the future, he pointed to cyber risk and deep sea mining for minerals as areas of concern. The rise in cargo values on fully laden box ships was also an issue forcing cargo insurers to take a closer interest in salvage matters. John Witte addressed the commercial environment for marine salvors. He said that a decreasing supply of work and plenty of would-be contractors meant there was the possibility of further consolidation in the industry following the creation last year of Ardent from ISU members Titan and Svitzer. The reputation of the salvage industry continues to be a focus for the ISU, according to Mr Witte who said: “Salvors
can feel a bit unloved. There may be examples of bad practice but surely that is the case in all industries. Salvors should be regarded as ‘loss mitigation partners’ to the insurers and owners.” He said that ISU had publicly committed to ensuring that its members behave properly. However, he added: “I do not believe we have a fundamental or systemic problem in our industry and ISU expects other parties to be fair to our members and to behave properly. It goes both ways.” Speaking about LOF, Mr Witte said: “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. It ensures a rapid intervention in an evolving casualty situation. “The benefits are clear: speed; simplicity and clarity of standard clauses; “no cure, no pay” and the risk is with the salvor.” It is widely agreed that education is needed among owners and underwriters to ensure the benefits of LOF are properly understood. Mr Witte also said that ISU encourages its members to use the “right contract in the right circumstances” and noted that there are others ways to contract. But, he added, “an evolving casualty situation is not the time to engage in commercial brinksmanship." 1
George Tsavliris, principal, Tsavliris Salvage said that salvors still need the element of “encouragement” allowed for in LOF awards to ensure they can maintain the necessary level of equipment. Sam Kendall-Marsden of the Standard Club said that LOF was the ideal contract for an emergency when there was not time to negotiate but it had been undermined by improved communications. He said he was supportive of the LOF regime but there are issues to address. Conference chair, HFW partner, Andrew Chamberlain, summed up the panel debate saying that LOF had received a “cautious thumbsup.” ISU’s stated position is to support the use of un-amended LOFs and does not believe the contract needs to be modified.
Dieter Berg (left) and John Witte.
Members’ News Tschudi Tschudi Group has announced the expansion of its fleet with the addition of two PSVs, WORLD EMERALD (picture right) and WORLD SAPPHIRE. The vessels are Norwegian registered and will be commercially and technically managed by ISU member, Tschudi Offshore and Towage in the Netherlands and Tschudi Ship Management in Estonia. The medium sized, DPII vessels are the Damen OSV 3300 CD design. Mangaging Director of Tschudi Offshore and Towage, Mark de Jong said: “I am very pleased that the owner, World Wide Supply, has trusted us with these vessels for management. [We] are looking forward to good cooperation with the owner.” Elsewhere, Tschudi has announced the establishment of Tschudi AngolaNavagação to expand its offshore activities in West Africa. It has also set up Tschudi Mozambique Lda to enter the south east African offshore market. It is a partnership with EnergyWorks, a wellestablished Mozambican Company.
Five Oceans Salvage
After the completion of formalities there was a tour of IONIAN SEA FOS, demonstrating the salvage equipment onboard and her capabilities. The event concluded with a cocktail party. In November, Swire Oceans Salvage, the joint venture between Five Oceans Salvage and Swire Pacific Offshore, organized a two day ICS 100/200 seminar in Athens. The seminar was attended by Five Oceans Salvage personnel as well as executives from KazMunayGas, the national Kazakhstan energy company (picture left).
Five Oceans Salvage held a reception onboard its IONIAN SEA FOS to thank the authorities and local business associates for their long term support. It came after the successful refloating of bulker BENITA and the removal of three sunken fishing vessels from the harbour of Port Louis, Mauritius. The Minister of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer Islands, Honourable Prem Koonjoo, attended and thanked Five Oceans Salvage for its dedication in providing emergency response services
to the island since the ANGEL 1 incident in 2011 (below right seen with FOS's Nik Pappas). Representatives from other ministries and authorities were also present. Five Oceans said it showed the strong connections it has built up through the years. “After so many years maintaining a salvage station in Port Louis, Mauritius feels like a second home. We commit ourselves to continue to provide emergency response services,” said Nikolaos Pappas in his speech.
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James Herbert from Gem Communications, also gave a presentation about media handling in emergency situations. Five Oceans said the seminar was a success and “signifies the start of a long term friendship between Swire Ocean Salvage and KMG.”
Members’ News continued Bisso Marine
President of the Valencian regional government, Ximo Puig, the “Honour al Mérito Empresarial y Social de la Generalitat Valenciana”. It is a business and social achievement award that honours Ms Coll’s professional career and her contribution to the economic interests and promotion of the Valencian region.
Boluda
Bisso Marine has successfully completed a two month saturation diving campaign in the Gulf of Mexico. The job used its 26m x 30m construction barge BISSO SUBSEA VISION, configured with a 12 man ABS Classed 300m saturation system. A number of subsea infrastructure services, including several subsea abandonments, were undertaken in water depths from 91m to 220m. Other work included recovery of several miles of 6" pipeline. The pipe was vented, saw cut and scrapped within an enclosed decommissioning system designed to capture the contents of the pipeline. The BISSO SUBSEA VISION also completed the lay and burial of several miles of bundled pipeline in the Gulf. Bisso noted that all work was performed safely without downtime or incident.
The Director of Boluda’s Offshore and Salvage unit, ISU vice President Charo Coll Bargues, has received from the
Charo Coll Bargues joined Boluda in 1990and she has been director general of the towage and salvage division since 1997. Ms Coll is multi-lingual and a past president of the European Tug Owners’ Association and a member of the Valencia Chamber of Commerce.
Tsavliris
Global Diving and Salvage Global Diving & Salvage, Inc. has performed 10,000 successful dives on a single project at Olmsted Locks and Dam in Illinois, US. Tom Cameron, a longtime diver with Global, performed the 10,000th dive. Global has been working at Olmsted since 2009 providing a variety of dive-related services and it remains a significant, ongoing project. The new locks and dam system will replace two outdated locks and dam systems on the Ohio River, greatly reducing tow and barge delays through one of the busiest US inland waterways. John Graham, Director at Global, said: “This milestone demonstrates our diligence and commitment to safety in carrying out all of our operations; from a simple tug survey to a long-term project such as this.” Directorate General of Coastal Safety (Turkey) DGCS's Burak Bilgin (below left) and Sercan Durmusoglu (below right) attending the Salvage and Wreck Conference in London with ISU general manager, Mark Hoddinott.
The Piraeus Branch of the Propeller Club celebrated its 80th anniversary and special awards were presented to past presidents for their contribution to the growth of the Club. Nicolas A Tsavliris (picture above right), who served as President of the Propeller Club from 2007 to 2009, said: "The existence of the International Propeller Club of the United States, International Port of Piraeus, makes us all proud. I feel privileged to have served as President for two years, from 2007 to 2009. I am confident that the Club will continue with its great work and I wish it every success in the future." Separately, Tsavliris Salvage Group sponsored the Lloyd's List Greek Shipping Awards which were presented at a dinner event attended by 1200 guests from the shipping industry in Athens in December. The "Seafarer of the Year" Award has been sponsored for 12 years by Tsavliris Salvage Group and Natalia Tsavliris Vasilopoulos presented this year’s award to Captain Diamantis Papageorgiou 3
(picture above). He has commanded more than 50 ferries in his career and has gained a reputation as a go-to master for vessels on some of the most difficult routes serving small, poorly equipped ports. In London, Tsavliris held its traditional Christmas Cocktail Reception at the Royal Thames Yacht Club in London. More than 300 guests were present from various sectors of the shipping community. Tsavliris said that the event was attended "in full force" by members of its family, including members of the next generation. The event was also attended by a delegation from the Cypriot Ministry of Transport, Communications and Works. The Minister, Mr Marios Demetriades, addressed the guests and highlighted the strong ties Tsavliris has with Cyprus; their contribution to the shipping industry and his personal friendship which had developed over the years with Nicolas, George and Andreas Tsavliris.
ISU NEWS New member ISU welcomes the following new member: Pacific Ocean Marine Industries, Co, Ltd 32, Haeyang-ro 117 Beon-gil Yeoungdo Gu Busan Korea Tel +82 51 414 9300-3 E-mail: diver@podc.co.kr Web: www.podc.co.kr Meeting with JMCC ISU President, John Witte; general manager, Mark Hoddinott; legal adviser, Rob Wallis and communicataions adviser, James Herbert held a meeting with members of the London insurance market’s Joint Marine Claims Committee (JMCC). The discussions were wideranging and included consideration of the state of the Lloyd’s Open Form contract. It is part of ISU’s drive to improve relations with all sectors of the insurance industry – hull, cargo and liability.
company market under the International Underwriters’ Association. ISU and JMCC agreed to continue with regular meetings. Associate Members’ Day 2017 ISU will be holding it popular Associate Members’ Day Conference on 22 March 2017. The venue is the Merchant Taylors’ Hall in the City of London.
Photo competition
A key address will be given by Jeremy Russell, QC, the Lloyd’s Appeal Arbitrator. The day will also include sessions on the process of tendering for major wreck removal projects and salvage involving Liquefied Natural Gas.
The key features of the competition are:
The event will be facilitated by Morgyn Davies who will be well known as the UK Ministry of Defence’s former senior salvage officer. Further details will be circulated in the New Year. The event will conclude with an evening drinks reception. AGM
The JMCC brings together insurers from both the Lloyd’s market, under the Lloyd’s Market Association, and the
ISU members are invited to note that the 2017 ISU Annual General Meeting will be held in Singapore on 09 September
Obituary - Cappy Bisso
Through Cappy’s leadership and vision, Bisso Marine evolved from a local, inland salvage and heavy lift company to a full service subsea and offshore midstream infrastructure contractor with operations around the world. Today Bisso Marine is a leader in pipelaying to water depths of 1,000’ and diameters of up to 60”; pipe burial; reverse pipelay; facility installation and decommissioning services; marine salvage; wreck removal; heavy lift and diving. It has become a trusted partner of energy independents, supermajors, vessel owners and underwriters.
Captain William A “Cappy” Bisso, III, passed away peacefully with his family at his side in September 2016 at the age of 75. Cappy was born on August 8, 1941 to Captain. William A Bisso, Jr and Lillian J Bisso in New Orleans, Louisiana. He attended Ridgewood Preparatory School and the University of Southern Mississippi before joining the family business in 1962. Cappy served in nearly every capacity for Bisso Marine, rising to the position of Chairman of the Board. Cappy was a man of remarkable loyalty, optimism and business acumen and he used those traits to navigate Bisso Marine through the numerous cycles of the marine and energy industries. Cappy grew the company’s fleet of vessels to include offshore revolving derrick barges, pipelay barges, dive support vessels, and saturation diving vessels. In 2005, Cappy’s leadership skills were put to the test when Hurricane Katrina devastated New Orleans, Bisso Marine’s home since it was founded in 1890. Cappy was able seamlessly to move Bisso Marine to Houston under those adverse conditions and the company continued to grow and flourish.
2017. Early notice is being given because the meeting is several weeks earlier than its usual place in the annual cycle of events. This is to avoid a clash with the Singapore motor racing Grand Prix when the city will be extremely busy.
Cappy was described as a “true legend in the marine industry and a giant in his field”. Through his service on the boards of the US Coast Guard Foundation; the National Ocean Industries Association and the International Salvage Union, Cappy worked hard to improve the safety and viability of the industry to which he dedicated his professional life. Cappy was always willing to share his knowledge and experience to improve the industry and he regularly took calls from vessel owners, salvors and Captains of the Port around the world seeking his input on marine emergencies and challenging salvage jobs. Known for his quick wit, broad smile, and engaging personality, Cappy made 4
ISU is again holding its annual photograph competition.
Open to all employees of ISU full members and pictures must be from a salvage operation in 2016. Pictures submitted must be "free of rights” and ISU may use pictures subsequently in its publications and with media. Shortlisted pictures are prominently exhibited at the ISU Associate Members’ Day Conference and the winner receives a US$ 300 prize and the editor of prestigious shipping publication, Tradewinds, has agreed to publish the winning picture. The deadline is 10 February 2017 and the winner will be announced at the ISU Associate Members’ Conference on 22 March 2017.
friends everywhere he went. Cappy and Darlene were warmly received upon their move to Houston, where they quickly endeared themselves to the community by volunteering their time and efforts to numerous philanthropic and civic organizations. Cappy loved classic automobiles, American history, traveling the world with Darlene and spending time with his grandsons. He was a loving and devoted husband, father and grandfather and is survived by his wife, Darlene M Bisso, his son, William A. “Beau” Bisso, IV, his daughter-in-law, Eva C Bisso, and his grandsons William A Bisso, V and Joseph RC Bisso.
Tsavliris operational round-up inspections and repairs and the Tsavliris team and equipment demobilised.
Products tanker SPOTTAIL aground off Indonesia.
In September the salvage tug TSAVLIRIS HELLAS was dispatched from her Azores salvage to assist the chemical/products tanker ELKA GLORY - 44,598 dwt and fully laden with 42,000 tonnes of ultra-low sulfur diesel. She was immobilised about 1,000 miles west of the Azores due to stern tube leakage. On arrival at the casualty, TSAVLIRIS HELLAS commenced escort towards the discharge port, Pembroke, UK. Subsequently the stern tube leakage deteriorated and the ship’s master requested a towage connection. After weather interruptions the tow was established. Bad weather further affected the tow and the owners instructed the convoy to make for Gibraltar where STS operations commenced with the TSAVLIRIS HELLAS providing standby and safety services. When the cargo transfer was completed the ELKA GLORY was towed by the Tsavliris tug to Setubal for dry docking. In October the chemical/products tanker KIRSTIN - 50,078 dwt - suffered stern tube damage and leakage due to contact with another vessel while discharging palm oil at Chittagong anchorage,
Journalists’ seminar ISU hosted a seminar about marine salvage for 20 shipping industry journalists in London. The seminar was led by ISU president, John Witte. He reminded attendees that salvage is a commercial business with limited state provision and that it is based on ancient principles: operators expect a reward for helping to save valuable property - ship and cargo - under the principle of “no cure, no pay”. The reward is dependent
Bangladesh. The AHT NING HAI TUO 6001 was dispatched from Chittagong to provide standby services during lightening and discharge. Due to the prevailing strong currents and adverse weather conditions the NING HAI TUO 6001 was replaced by the more powerful AHT TERASEA HAWK. On completion of cargo discharge the casualty was safely towed to Singapore and delivered to dry dock tugs. The VLCC ARMADA ULYSSES, employed as a bunker storage vessel at Tanjung Pelepas, Malaysia and was laden with 221,000 tonnes of fuel oil when she sustained sudden internal leakage from the cargo tanks to the double bottom tanks. Tsavliris Salvage was contacted to provide salvage assistance and assembled a salvage team from Greece, Holland and Singapore to attend the casualty. 44,464 tonnes of cargo was transferred to the receiving tanker NISSOS KYTHNOS. It released enough tank capacity to enable the cargo to be transferred internally away from the affected tank. After refueling and a dive inspection the vessel moved to Raffles reserve anchorage for tank cleaning,
on the success of the job and the value of the property saved. The risk – financial and physical – lies with the salvor. ISU general manager, Mark Hoddinott, described various kinds of salvage jobs. The contractual framework for salvage was described by Rob Wallis, ISU legal adviser. He said that the disparate interests meant there is often the potential for conflict. But in a casualty situation time is short and parties must quickly agree what can be done and under what contractual terms. 5
Elsewhere in October Tsavliris dispatched the salvage tug SALVAGE TITAN from Kaohsiung to assist the bulker MINOAN COURAGE - 76,801 dwt and fully laden with soya beans - which was immobilised due to main engine breakdown in bad weather in the South China Sea. When the tug arrived the casualty’s power had been partly restored and escort services commenced. When power was fully restored the salvage tug was demobilized and the MINOAN COURAGE proceeded towards her destination under her own power. In November the products tanker SPOTTAIL - 74,997 dwt but in ballast ran aground on the north coast of Pulau Takong Besar, Indonesia. The port authority of Batam said there was reef and fish farm damage. Tsavliris Salvage were contracted to provide salvage services and sent the tugs SUMBER HARBOUR and SUMBER Z MARINE; a dive boat and dive team and a salvage master. An underwater inspection was undertaken and naval architects worked on ballast/de-ballast sequences, trim and stability calculations. The vessel remained aground with two tugs and the diving support vessel in attendance while 2,175 tonnes of fuel oil and 103 tonnes of diesel were transferred to the after part of the vessel and the vessel was successfully refloated with the assistance of tugs in combination with a ballast and de-ballast operation. Subsequent underwater inspections were carried out to determine the condition of the grounding site and salvage services were terminated without any coral reef damage or pollution having occurred.
ISU vice President, Charo Coll, told the group about the importance of environmental protection in the role of salvor. She said that ISU’s statistics show that each year ISU members are involved in operations with casualties carrying a total of more than a million tones of potential pollutants. The event was followed by a luncheon hosted by ISU executive committee members.
Associates’ and Affiliates’ News ISU welcomes new Associate Member Deltares Deltares is an independent institute for applied research in the fields of water, subsurface and infrastructure. It employs some 800 people in the Netherlands PO Box 177, 2600 MH Delft Netherlands Tel: +31 ( 0)88 335 8273 Email: dirk.luger@deltares.nl Web: www.deltares.com Contact: Dirk Luger LOC International maritime consultancy, LOC Group, will be hosting the second Asian Marine Casualty Forum (AMCF) in Singapore, 27-28 April 2017. It is a “not-for–profit” event which LOC says is “arranged by the industry for the industry”. The forum will take place during the Singapore Maritime Week - which gathers the international maritime community in Singapore for a week of conferences; discussions; exhibitions and social events. LOC said the forum will welcome global industry leaders from all parties involved in marine casualties. Invitations have been extended to many of the world’s leading marine insurers, salvage contractors, law firms as well as ship owners and government representatives.
Hill Dickinson Hill Dickinson has announced a string of senior staff changes. Peter Jackson has been elected as the firm’s first Chief Executive Officer and is already in post. Long-time Senior Partner, David Wareing, has taken up the role of Chairman. Peter Jackson was previously the firm’s Managing Partner and during his tenure the firm has seen a period of significant growth both within the UK and internationally with a number of acquisitions and expansion of its global presence. Hill Dickinson has also announced that it has hired Iain Johnston as its first Chief Operating Officer. Mr Johnston will oversee the day to day operations of the business. He has extensive knowledge CWaves and Global Salvage Consultancy CWaves and GSC have announced that they are to pool their resources through an informal association. Together the companies have teams of engineers, naval architects, master mariners consultants and SCRs in several
of running international businesses with over 25 years’ experience in marketing services and business development. Julian Clark will also be joining the firm as global head of shipping in January. Mr Clark is a founding partner of Campbell Johnston Clark (CJC) and specialises in both wet and dry shipping. Prior to founding CJC, Julian spent seven years as a partner at Holman Fenwick Willan LLP. He will be based in Hill Dickinson’s City of London office but will travel between the firm’s international offices in Piraeus, Monaco, Hong Kong and Singapore. Hill Dickinson has also added Master Mariner Donal Keaney to its London shipping team bringing the total number of Master Mariners at the firm to six. locations globally The companies say that the arrangement is structures to enable both to act independently where appropriate, avoiding any conflicts of interest, or to pool their resources to provide a comprehensive response to major casualties worldwide.
Shandong Nanhai Airbag
More than 250 senior shipping and insurance professionals are expected to attend and the theme for the 2nd AMCF is “Risks, Rewards, Response & Results in the Life and Time of a Casualty – The Industry Debates”. Industry leaders will share their insights and outlook on the issues of wreck removal and salvage. Supporting organisations include the International Group of P&I Clubs; International Salvage Union; Singapore Shipowners’ Association; Singapore Chamber of Maritime Arbitration; the Baltic Exchange, International Union of Marine Insurance and International Tanker Owners Pollution Federation. LOC said the forum aims: “to raise standards of the industry further, boost cross-industry cooperation and reduce the risks and challenges involved in future major salvage operations.” The line-up of speakers and a detailed programme will be announced in January 2017 and details of the event will be available at www.loc-group.com
Shandong Nanhai Airbag Engineering reports that it has recently delivered several large, 3.5m x 17.5m rubber salvage pontoons with 150 tonnes buoyancy. (See picture above) Shandong describes itself as the “worldwide leader and innovator in the design and manufacture of engineering rubber pontoons”. It has secured intellectual property rights for its products and says they can be used to provide substantial buoyancy for tasks such as 6
aircraft recovery; raising sunken vessels; removing wrecks and other underwater objects. Shandong says its pontoons have a lift capacity from 1 - 300 tonnes for use in maximum water depth of 100 meters. Other advantages, according to the company, are puncture and abrasion resistance, good air tightness and dual pressure relief valves. The equipment can be folded easily and production lead times are short.
Associates’ and Affiliates’ News continued International Union of Marine Insurance
Intermanager InterManager, the third party and in-house ship management association, has urged the maritime industry not to neglect its duty in ensuring a sustainable future. Speaking at CrewConnect Global, InterManager’s President, Bjørn Jebsen and Secretary-General, Captain Kuba Szymanski, spoke of the necessity of working closely with key decision makers to maintain a resilient industry. Mr Jebsen said: “We can assume that the world fleet will continue to grow, which means an increased requirement for skilled and competent seafarers. This may present itself with a few problems, though. With the downturn in the industry, shipping companies are cutting costs and may not make the required investment in manpower for the future.
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Dieter Berg, President IUMI (fifth from left) with IUMI, insurance industry and Hong Kong dignitaries at the launch of IUMI's Asia hub.
The International Union of Marine Insurance (IUMI) has announced the opening of a new overseas hub in Asia. It is the first time in the organisation’s 142 year history that it has established a permanent presence outside Europe. Making the announcement at the 4th Asia Marine Insurance Conference, in Hong Kong, IUMI President, Dieter Berg said: “The Asian marine insurance market accounts for almost 30% of global premium income and global trade in this region continues to grow. "The opening of our new Asian hub, based in Hong Kong, recognises this significant contribution. Through this initiative, we hope to align IUMI more closely with the activities and aspirations of our colleagues in Asia and ensure that IUMI remains relevant and of service to this very important region”. The new hub has been created with the strong support of the Hong Kong Federation of Insurers (HKFI) who were instrumental in its set-up and who will
provide the secretariat. Ronnie Ng, Chairman of the HKFI, said: “We have years of close partnership with IUMI and a cordial working relationship with our counterparts in the region. We are confident that Hong Kong will be the ‘super-connector’ between IUMI and our neighbouring markets and help propel the marine insurance industry in the region to new heights.” Professor Anthony Cheung Bing Leung, Hong Kong Secretary for Transport and Housing, said: “IUMI’s move on the one hand recognises the increasing importance of Asia in the marine insurance industry, and on the other highlights Hong Kong’s position as a prominent industry player in Asia.”
“This is being seen through maritime schools, which are struggling to provide the education to give young people the training they need to develop the skills and competence our industry requires. We must work together to address a maritime education system that is struggling to meet even the existing requirements.” The issue was heightened by Captain Szymanski, who chaired a panel on the findings of Project MARTHA: a fatigue study co-ordinated between InterManager and other industry bodies. “We cannot ignore the findings, so what ship managers do next is crucial; whether that be reducing bureaucracy or listening to vessel’s staff comments and suggestions,” Capt Szymanski said.
Mr Berg said the announcement “represents a significant step forward for IUMI and its members.” He thanked HKFI for its strong support and encouragement and said he is “confident that this new partnership will herald an exciting new era for IUMI”.
“If fatigue is not addressed soon, seafaring could be in jeopardy of becoming an out-of-touch profession. That is why it is vital the whole industry works together.”
Barge Master has announced that its Gangway is to be fitted to the Vroon vessel, VOS START. Barge Master says it will enable safe and efficient transfer of personnel and cargo to offshore installations.
Martijn Koppert, CEO of Barge Master, said: “The small footprint, light weight and the modular design with hoisting, elevator and many other options have led to this next-generation gangway. The end product is a fit-for-purpose gangway system that can be purchased or hired at a very competitive price.”
Barge Master
The system incorporates an access tower with elevator which provides “stepless” access to installations. The adjustable pedestal offers complete flexibility in landing heights. The so called “walk-towork” vessel will be available in Q2 2017.
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Near miss in English Channel
Ship operating costs Total annual operating costs in the shipping industry fell by an average of 2.4% in 2015, according to OpCost 2016, ISU Associate Member Moore Stephens’ unique ship operating costs benchmarking tool. This compares with the 0.8% average fall in costs recorded for 2014. All categories of expenditure in 2015 were down on those for the previous 12 month period. Total operating costs for the tanker, bulker and container ship sectors were down in 2015, the financial year covered by the study. On a year-on-year basis, the tanker index was down by 4 points, or 2.2%, while the bulker index fell by 6 points, or 3.6%. The container ship index was also down by 6 points, or 3.7%.
French ETV, ABEILLE LANGUEDOC
The UK’s Maritime Accident Investigation Branch (MAIB) has commenced a safety investigation into a collision between the forest product carrier SAGA SKY and the anchored stone carrying barge STEMA BARGE II, close to the port of Dover in November. The UK Coastguard evacuated all nonessential crew, there were no injuries and despite significant hull damage, both vessels remained afloat. The French emergency towing vessel ABEILLE LANGUEDOC stood by during the later stages of the incident. SAGA SKY had discharged a cargo of wood pulp in Brake, Germany and was sailing in ballast to Uruguay. The vessel entered the Dover Strait in bad weather, with wind speeds in excess of 80 knots, the vessel’s speed dropped and began to pitch heavily. The propeller came
out of the water causing the engine to overspeed and shut down. SAGA SKY’s engine was restarted and the vessel was manoeuvred out of the traffic lane. However, it then began to drift rapidly towards shallow water. Both anchors were deployed but this failed to arrest the drift. SAGA SKY made contact with STEMA BARGE II. The collision resulted in significant damage to both vessels. When the weather abated and, following a stability assessment and redistribution of ballast, the casualty was able to proceed safely to Dunkirk for assessment. The UK no longer supports state-funded ETVs in most of its waters and an industry source described the incident as a “high-potential near miss”.
Five Oceans Salvage - bulker refloat The MV SAM WOLF - 57,200 dwt and laden with 43,200 tonnes of grain - ran aground off Puerto Cortez, Honduras in September. The owners signed a Lloyd’s Open Form with Five Oceans Salvage who dispatched the tugs SIMONE and RACHEL from Louisiana and a salvage team from Greece to assist. Five Oceans Salvage also chartered the vessel DOGAN BEY for the lightering operation (right). After removing about 2,900 tonnes of cargo, the casualty was eventually refloated and redelivered to her owners on 1st October 2016 at Puerto Cortez. 8
There was a 1.2% overall average fall in 2015 crew costs, compared to the 2014 figure. This is the fourth successive year-on-year reduction in overall ship operating costs. The reduction is three times that recorded 12 months ago, and had not been widely anticipated. It is likely to be due in part to continuing good husbandry in a difficult operating environment, and partly to an extremely difficult market and wider economic climate. The shipping sector can draw some comfort from a fourth successive annual fall in operating costs. However, inflationary pressures on operating costs will remain. To be competitive, ship owners will need to continue to improve efficiency, innovate with new technology and harness the considerable benefits of ‘big’ data without delay.
Ardent removes jack-up rig in Gulf of Mexico built,” said Ardent Naval Architect Roland De Marco. “The main hurdles to overcome were, how to best cut the jack-up into sections without fabricating an elaborate structure. And boring holes underneath the jackup through the seabed was improbable due to obstructions,” said Shelby Harris, Ardent Americas Operations Director. “We had to apply ingenuity to use our chain cutting techniques on the deck house in a less than conventional method, and the Ardent Guided Guillotine sectioned the hull. The method worked very well,” said Harris.
Ardent completed the removal of the TROLL SOLUTION jack-up rig in November 2016. The 7,000 tonne rig suffered a major accident while carrying out maintenance work on the well-head platform CAAN-A in the Bay of Campeche, Mexico in 2015. Before Ardent’s involvement, efforts were made to refloat and salvage the jack-up which had collapsed and sunk into the seabed in some 30m water depth where she came to rest within two metres of the operational CAAN-A platform. Ardent deployed assets from several
countries, including the CONQUEST MB-1 crane barge and a 1,000 tonne hydraulic wreck grab from the Netherlands. Further support vessels were deployed from the US and Mexico. The operation used Ardent’s newly designed Guided Guillotine to dismember the jack-up, instead of cutting with more conventional methods. “Traditional methods require either a push or pull-cut with chains or diamond wire. Pull-cuts require tunnels to be bored into the seabed, whereas pushcuts require a large framework to be
Conventional guillotine cutters are restricted to operations above the surface. The Ardent Guided Guillotine can function underwater with the precision to cut the rig into the required lift pieces. The Ardent salvage team cut the deck house into 6 pieces with Ardent Chain Pullers and cut the vessel’s hull into 31 pieces using the guillotine. The pieces were then lifted by the CONQUEST MB-1. Ardent said the project “showed the excellent integration of staff from both ex-Svitzer and ex-Titan teams". Ardent’s chief executive, Peter Pietka, said: “We look forward to more challenges and collaboration with our partners in the offshore industry in the near future."
Spanopoulos in warplane recovery IGNATIOS III towed by tug CHRISTOS XVIII and the research vessel AEGAEO of HCMR, sailed from Piraeus to the crash area where the AEGAEO relocated the aircraft and completed a final inspection. Over the following days and after several dives with the ROV the team fixed three lifting points on both wings and on the dorsal fin.
© A. Papadas
In December 2014, a twin pilot F16 warplane of the Hellenic Air Force crashed at sea south of Crete. The pilot ejected from the aircraft. The aircraft was found after a search of the crash site in water depth of 957 metres. The Hellenic Center of Marine Research (HMCR) was selected as contractor and sub-contracted Spanopoulos Group for
the recovery of the crashed aircraft. The objective was to lift the aircraft complete using an ROV and a floating crane. The engineering team took many measurements on real aircraft of the same type and, with the assistance of the ROV operators and the air force mechanics, prepared the appropriate gear. In June 2016, the floating crane 9
The ROV tied a kevlar rope to the three lifting chains and brought the free end of the rope to the surface and the crane barge started a slow ascent with a speed of 4 metres per minute to minimize pressure impacts on the aircraft. 15 metres from the surface, lifting was halted and a metal deck lowered into the water and with divers’ assistance the aircraft was placed on the deck and then hoisted aboard. The total removal operation was completed in 8 hours and the aircraft delivered to the air force at Souda Naval Base.
International Monitor ICS Training Esben Poulsson, Chairman of the International Chamber of Shipping, (ICS) has said that training acts not only as a career enhancer, but also plays an essential role in the modernisation of the shipping industry as a whole. He was speaking at the Crew Connect Global Conference in Manila. “The future sustainability of the industry requires an evolutionary response to the training and retention of seafarers,” he stressed. “We need to do more than simply respond to changing needs, we must learn to anticipate them and thereby control the development of the industry.” "Now, perhaps as never before, companies must have an eye to the future and consider that significant growth in shipping could return within the next five years. Employers must recognise that decisions made in these difficult times should not inhibit the future sustainability of the industry".
CO2 reduction objectives can now be developed by IMO for the sector by 2018. ICS says that the IMO Road Map - agreed by the IMO Marine Environment Protection Committee in October - will build on the mandatory CO2 reduction regulations for shipping already adopted by IMO – four years before the Paris Agreement was adopted – which will ensure that ships built after 2025 will be at least 30% more efficient. Market based mechanisms remain controversial, said ICS’s director of external affairs, Simon Bennett. “But if this is what governments eventually decide, the clear preference of the majority of the industry would be for a global levy based on fuel consumption.” The international shipping sector reduced its total CO2 emissions by more than 10% between 2007 and 2012, despite an increase in maritime trade – while the rest of the world economy will probably continue increasing emissions at least until the 2030s. Crude oil in Canada The government of Canada is set to bring in laws in 2017 to formalise a moratorium for crude oil tankers in the waters off British Columbia’s north coast. The moratorium will cover the Great Bear Rainforest and Great Bear Sea area, covering an area from the Alaska – British Columbia border southwards to a point on the mainland level with the northern tip of Vancouver Island, including Haida Gwaii.
Mr Poulsson (above) also noted the so-called ‘smart’ era which will see more integrated technology and automated functions and systems. He also highlighted the need for shipowners, maritime administrations and training providers to continue to work together to ensure full compliance with the new STCW training regime, that takes full effect in January 2017. Climate Change The shipping industry was active at the recent UNFCCC Climate Conference (COP 22), in Morocco when the recently agreed IMO CO2 “road map” for shipping was discussed at an official side-meeting organised by IMO.
The new legislation will prohibit oil tankers carrying crude oil or persistent oil products as cargo from entering or leaving ports and marine installations in this area. This measure will complement the existing voluntary Tanker Exclusion Zone, which has been in place since 1985. The moratorium will apply to the shipment of crude oils as defined by the International Convention for the Prevention of Pollution from Ships (MARPOL).
US/UK Princess Cruise Lines Ltd. (Princess) has agreed to plead guilty to seven felony charges stemming from its deliberate pollution of the seas and intentional acts to cover it up. It comes after a crew member "blew the whistle" to UK Maritime and Coastguard Agency staff who then liaised with the US authorities. Princess will pay a $40 million penalty, the largest-ever criminal penalty involving deliberate vessel pollution, and plead guilty to charges related to illegal dumping of oil contaminated waste from the CARIBBEAN PRINCESS cruise ship. In addition to the criminal information, a plea agreement and joint factual statement were filed in court in Miami. In the factual statement, Princess also admitted to the following: • Illegal discharges took place on the CARIBBEAN PRINCESS dating back to 2005. • Different bypass methods were used over the course of time, including a “magic pipe” used to transfer oily waste overboard. • After learning that an engineer had "blown the whistle", senior ship engineers dismantled the bypass pipe and instructed crew members to lie. • Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident. • When using the "magic pipe", engineers processed sea water through the oily water separator in order to create a digital record to account for the missing waste.
But the moratorium will not apply to the transport of liquefied natural gas (LNG), gasoline, naphtha, jet fuel and propane, among other products.
• Shore-side management failed to provide and exercise sufficient supervision and management controls to prevent or detect criminal violations by CARIBBEAN PRINCESS crew members.
Vessels carrying less than 12,500 tonnes of crude oil or persistent oil products as cargo will not be included in the moratorium in order to allow local communities and industries to continue to receive these goods.
According to court papers, Princess has taken remedial action in response to the investigation, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
The International Chamber of Shipping (ICS) said it was optimistic that initial 10
Special compensation – the SCOPIC clause Editor’s comment: It is recognised that there is lack of knowledge about the Lloyd’s Open Form contract and its associated Special Compensation P&I Club Clause (SCOPIC). I therefore make no apology for publishing here the full text of a speech given on behalf of ISU by its executive committee member, Li Jianping of China Rescue and Salvage, at a recent shipping industry conference in China. The paper will make useful reading for anyone uncertain about SCOPIC or who might wish to be “refreshed” on the subject. The practice of marine salvage – commercial operators going to the aid of vessels in distress in the expectation of a reward for helping to save life and property goes back centuries. The principle of “no cure – no pay” has always been at the heart of salvage: a reward is only given if property of enough value is salved. However, the transportation of oil and other pollutants increased significantly in the second half of the C20th and the potential for damage to the environment from oil spills associated with marine casualties increased at the same time. It began a firm shift in salvage priorities from property to the environment. Famous cases like the Torrey Canyon off the UK in 1967 and the Amoco Cadiz off France in 1978 demonstrated all too clearly the risks. The salvage of such tankers was usually expensive to carry out and the residual value low, making many salvage operations uneconomic. Governments were also reluctant to offer a place of refuge to damaged vessels. It deterred salvors from offering service to these types of casualty because the likelihood was that “no cure” would be achieved and which meant there would be “no pay” – despite the cost of the services. Following the Torrey Canyon, great progress was made by the international community to improve the safety of shipping and counter pollution through conventions such as SOLAS and MARPOL. And to encourage salvors to go to the assistance of casualties that might not be “worthwhile” under “no cure, no pay” the 1989 Salvage Convention introduced in its Article 14, a new concept – Special Compensation. Article 14 was designed to apply whenever salvors went to the assistance of ships that threatened damage to the environment within coastal waters. In such circumstances Article 14 enabled the salvor to at least recover their expenses
with the possibility of further “uplift” if environmental damage was prevented. However, such assessment was only to be paid to the extent that it exceeded the traditional property-based salvage award. In short, it was a safety net to ensure that the salvor did not lose money in attempting a salvage. The Salvage Convention was incorporated into the most commonly used salvage contract, Lloyd’s Open Form (LOF), in its 1990 edition. Article 14 was well–intentioned but in practice it turned out to be cumbersome, contentious and expensive to operate and had the unintended consequence of discouraging salvors from attending casualties where there was the threat of environmental damage. Traditional salvage awards (covered by the Salvage Convention’s Article 13) were paid by property underwriters (ship and cargo) but under Article 14 it was the liability insurers, the P&I Clubs, who were to pay compensation. They were unhappy with the way in which the new provisions involved them in salvage for the first time. Article 14 claims began soon after but the Salvage Convention only came into force in 1996. In 1997, in response to the concerns with Article 14, the shipping industry, ISU and the International Group of P&I Clubs began discussions to address the difficulties with Article 14. And in 1999 the SCOPIC clause – the “Special Compensation P and I Club” Clause was created. It was designed to have the same effect as Article 14 but to avoid the legal problems that the assessment of Special Compensation under Article 14 caused. SCOPIC is a large clause consisting of 16 sub-clauses, three Appendices and two Codes of Conduct. The Clause became available in LOF contracts in August 1999. A panel of Shipowners’ Casualty Representatives was formed. This term later changed to Special Casualty Representative and the role will be addressed later in this paper. The SCOPIC regime is complicated and not always well-understood. One common misconception is that it is part of every Lloyd’s Open Form (LOF) salvage contract. It is not. It is an optional addendum which is only included into a LOF if the parties specifically record on the contract that SCOPIC is incorporated. If SCOPIC is not incorporated then the Salvage Convention’s Article 14 will apply, if relevant. 11
If SCOPIC is incorporated, then it replaces Article 14 which will no longer apply. This is a crucial point for the salvor, for if SCOPIC is included but not invoked (or is later terminated), the salvor will not be covered by either Article 14 or SCOPIC. If the parties do incorporate SCOPIC, its financial provisions will only apply if the salvor invokes the clause in writing. This can be done at any time and in any circumstances. The idea behind giving this power to the salvor is to avoid the difficulty of trying to codify the variables around the definition of a “threat of damage to the environment”. It was recognised that a balance needed to be introduced to prevent salvors from invoking the SCOPIC Clause in every case. First, there is a mechanism to give a discount if the traditional salvage award exceeds the SCOPIC costs. Second, the shipowner is given the right to withdraw from SCOPIC at any time with five days notice provided the relevant authorities permit it to do so. It was assumed that the authorities would not agree to termination if there was still a threat of damage to the environment. Both measures discourage a salvor from invoking the clause unless there is a real need for its protection. SCOPIC remuneration that a salvor receives for a service is paid by the shipowner or his P&I insurer but only the sum that is over and above the traditional salvage award made against salved property under Article 13 of the Salvage Convention. The shipowner or his insurers must pay $3 million in security within two working days of the clause being invoked. This is covered by the ISU 5 Guarantee Form which was revised in late 2014 and is currently under another revision. The SCOPIC remuneration due to the salvor is assessed by reference to an agreed tariff of daily hire rates for equipment and personnel. SCOPIC rates and remuneration are in US Dollars and the rates apply throughout the world. For the first few years the rates remained the same but at the outset of 2006 there was an agreed 10% increase in the rates for human resources while equipment rates were unchanged. In mid-2007 there was a further 10% increase in SCOPIC personnel rates and, furthermore, tug rates increased by 25% and other equipment rates were raised by 10%.
Special compensation continued A third increase in rates was introduced in January 2011 – 10% on tugs, equipment and personnel. At the same time, a “cap” was introduced on equipment rates paid on the salvors’ own equipment. This was to avoid the situation where, during a period of prolonged use, the total of the daily rates for using the equipment might end up being more than the purchase cost of the equipment.
job and threat to the environment before incorporating and invoking SCOPIC.
To avoid continuation of piecemeal increases in the SCOPIC rates, and prolonged negotiations each time an increase in rates was reviewed, it was agreed in 2012 between the ISU and the IG that SCOPIC rates would be increased every three years in line with inflation as marked by the US Consumer Prices Index (given that SCOPIC is a US $ contract).
The shipowner may not escape from a LOF contract once it is signed but is entitled to terminate the SCOPIC clause on giving five days notice if the authorities permit it.
Therefore, the fourth increase in SCOPIC rates (based on this new provision) took effect from 01 January 2014 at 6.78% on all items. The next increase will be effective from 1st January 2017 and will be around 2%. Under Article 14 salvors were entitled to a bonus if they actually prevented damage to the environment. There was some difficulty in establishing the extent of the bonus in individual cases so the SCOPIC concept was simply to provide for a bonus in every case. Under Article 14 the uplift averaged out in practice at 26%. To keep matters simple it was therefore agreed that in SCOPIC such an uplift should be 25% of the tariff rate remuneration – it seems to be accepted by parties that in some circumstances this may be a “generous” bonus and in others less so. Given this seemingly favourable framework, what is to stop salvors invoking SCOPIC in every case? It would seem they have nothing to lose by doing so. There is a mechanism. If the traditional salvage award is higher than the assessed SCOPIC remuneration then not only is no SCOPIC award payable but the traditional property based award is reduced by 25% of the difference between it and the SCOPIC remuneration. So, for example, in a case where SCOPIC has been invoked and the assessed SCOPIC remuneration is $1 million and the property based salvage award was $1.5 million then no SCOPIC money would be paid and the Article 13 award would be reduced to $1.35 million (25% x $0.5 million = $125,000). Salvors must consider carefully the potential salved values; the risk of the
This mechanism has been effective in preventing the salvors from overusing SCOPIC. Since 1999 there have been 1473 LOF cases. SCOPIC was incorporated in 468 cases (some 31%) and invoked in 332 cases – it is less than 25% of LOF cases.
This is unlikely if there is actually a threat to the environment. However, the salvor may withdraw from the entire LOF contract if SCOPIC is withdrawn by the owner and the salvage operation is no longer financially viable. One of the key features of SCOPIC is that the owner will appoint a Special Casualty Representative (SCR) chosen from a panel and who attends the casualty and reports on activity. The salvage master retains full control of the operation but the SCR’s voice is influential. SCRs are appointed to the panel which is administered by the Lloyd’s Salvage Arbitration Branch. Applicants to join the panel are vetted by the SCR sifting committee consisting of representatives from the IG; the ISU; the International Union of Marine Insurance (IUMI) and the International Chamber of Shipping (ICS). In 2016 the process by which the panel of SCRs is managed has been tightened. SCRs are now to be appointed to the panel for three years after which they must re-apply to the panel. They must also demonstrate a degree of physical fitness for the role and must be covered by their own insurance. The primary role of the SCR is set out in the SCR Guidelines which are a compendium of the various SCR Digests produced since the inception of SCOPIC. The Guidelines are clear that the SCR, like the salvage master, must use his “best endeavours to assist in the salvage of the vessel and the property thereon and in so doing to prevent and minimise damage to the environment.”
owners and their insurers are kept fully informed and comforted and may keep a tally of costs as they build up. The SCR should send a concluding report at the end of the job. SCOPIC is generally considered to have worked well. There have only been 8 arbitrations involving SCOPIC since its introduction in 1999, and none since 2008. This detail, and the number of invocations of SCOPIC noted above, suggest SCOPIC is indeed working well. However, as with most contracts, it requires review with time. Recently a sub group of the SCOPIC Committee was set up to review critical parts of SCOPIC. This group will report back to Lloyd’s and other stakeholders during 2017. That said, SCOPIC is not perfect and requires cooperative working between parties and their trade association representatives like ISU and the IG to maintain its usefulness. The consensus is that is a good replacement for the Salvage Convention’s Article 14. Nevertheless it must always be remembered that it is not a form of reward and is only a “safety net” to ensure a minimum payment in difficult cases to soften the demanding salvage principle of “no cure no pay”.
Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 330 505 Email: james.herbert@gemcommunications.co.uk For general enquiries contact: ISU, Holland House 1-4 Bury Street London EC3A 5AW Tel: +44 20 7220 6597 Email: ISU@marine-salvage.com
Critically, the SCR must act in the interests of all parties, not just the shipowner. If the SCR does not agree with the salvage master’s daily report the SCR must send a dissenting report. The presence of the SCR ensures that the 12
Declaration of interest: The Editor of Salvage World, James Herbert, was paid a fee for his part in the training referred to in the story, Five Oceans Salvage, on page 2.