Sea and Coast(Monthly Maritime Magazine) by Sea And Coast

AUGUST 2019 Ɩ Volume - 03 Ɩ Issue - 08 Ɩ RNI NO: DELENG / 2017 / 70663 Ɩ ₹ 115/-

Distributed in India,Dubai,Singapore,Canada,Greece and Israel DELHI POLICE LICENSING UNIT NO: F.2 (S.6) PRESS/2016

MARITIME

EXCLUSIVE INTERVIEW Suneeti Bala First Women Chief Engineer.

EXCLUSIVE ARTICLE O-7 CDR (Retd.) Eyal Pinko Maritime Cyber and Security senior consultant PHD candidate for naval strategy

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Content Page No.

EXCLUSIVE INTERVIEW & COLUMNS

Exclusive Interview of CE Suneeti Bala

Force Buildup of the Egyptian Navy

NEWS 21

Two Chinese Fishing Vessels Aground, Cape Verde

China To Expand Discharge Ban On Open-loop Exhaust Scrubbers -draft “Delay in compliance with nuclear security regulations to boost Japan’s LNG imports”

24 26

“Nordic American Tankers Limited Expects Stronger Tanker Market During Second Half of the Year”

“World Fuel’s strong margins boost Q2 marine segment proﬁt as volumes fall”.

28 31 32 34 37

IMO/Chile agreement to expand capacity building in the Caribbean INSURANCE FOR GAS CYLINDER BLAST VICTIMS Cocaine found in unusual place – in cargo hold loaded with ore. General cargo ship ﬁre, Ambarli, Turkey 34 Samsung Heavy develops lithium-ion battery power system for ships

38 39

FONASBA quality standard now covers 35 countries, 500 companies

43 46

Frangou Expects Boost

Spanish Ship Mendez Nunez Visits Goa

The Discount Rate: Has the Government gone far enough? 39

Ultra Large Container Ship disabled, anchored oﬀ Piraeus

ADVISORY BOARD

Admiral RK Dhowan (Retd), PVSM, AVSM,YSM, ADC, Former Chairman, National Maritime Foundation and Former Chief of the Naval Staﬀ

Dr. Malini V Shankar Former Director General of shipping Member, Board of Governors, World Maritime University, Malmo, Sweden

Admiral Jayanath Colombage RSP, VSV, USP, rcds, psc Msc (DS), MA (IS), Dip in IR, Dip in CR, FNI (Lond) is the 18th Commander of the Shri Lankan Navy

Capt. Radhika Menon (World’s First women capt to receive an IMO award)

O-7 CDR (ret.) Eyal Pinko Maritime cyber and security senior consultant. Phd candidate for naval strategy

Dr. Sadanand Gupta Deputy Collector Khurja (U.P)

Capt. Sanjeev Soni Institute of Maritime Education & Training Singapore

Adv. Ravinder Singh Dhull State Media Penalist, Bhartiya Janta Party Politician

Mr. Joginder Singh Executive Director Sriram Institute of Marine Studies

From the Editor’s Desk

Amit Kumar Editor-In-Chief

s we write, authorities in Gibraltar have released the Grace 1. The US has called the Grace 1 an Iranian ship and has made a legal bid to seize it. Everything is so dynamic and unpredictable. We won't even hazard a guess as to where the Grace 1 will be while you are reading this. It could be on her way to discharge her cargo and the Stena Impero could also be on her way. While this plays out,

there are also ships in the Indonesian waters. As nations try to randstand and flex their muscles, our thoughts go out to the seafarers who are on these ships to earn a living. And those on the Grace 1 may even be labelled terrorists just because they were on Grace 1, if US had their way. Shipping has always been spoken of as the closest to a free market. But it was never known for its transparency. With ships flying flags of convenience that can be swapped as easily as literally hoisting and lowering the tricolor, there should be a concerted effort to mainstream flags and strengthen international maritime laws. It should not be left to a nation to interpret the provisions of the UNCLOS and bend it to suit their narrative. As we run into the Q419, many shipowners have capital expenditure on their mind. The last decade ate into their pockets and however deep it might be, most won't find anything there. This year and the next will be one that will bleed their near empty pockets as they try to comply with the 2020 fuel regulations. There are many owners who are opting to fit exhaust gas scrubbers to clean their exhaust gases so they don't pollute the air. These owners are counting on a large differential between the high sulfur fuel oil and the low sulfur marine gas oil. If the differential narrows, then these owners could be saddled with a huge white elephant. Other owners are counting on the fact that the differential will indeed narrow and it would be as easy to buy LSMGO as it is to HSFO. All those owners who have decided to fit scrubbers have taken their tonnage off the waters. This number will only increase in the next year. There will be no room in the yards and neither will there be ships to trade. We hope the vessels that are afloat will fetch higher freight. While we try to empathise with all stakeholders, what we can see is that all these will surely pinch the common man's very shallow pockets as the cost is passed on to him at the deep end. If one truly wants a GHG free fuel, like the IMO aims to have in the long run, then there should be some serious innovation. Engines and fuel cells may surely be on the innovator's minds as they find alternative to fossil fuels. They might even discover other technologies as they move along. There is just not enough capital pushed into R&D. This could be because of the bleeding pockets over the last decade. There is just not enough money in anyone's pockets. But there still are hopefully people who have money and time to find a solution beyond the cliched exhaust gas scrubber and compliant fuels. These are not great times to be a shipowner or a seafarer. Things can only get better from here on.

v Editorial

Amit Kumar Editor-In-Chief

Chesta Mishra Managing Editor

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SHE @ SEA

NAME : Sherlin Graz Christraj RANK : Third Oï¬&#x192;cer COMPANY : Torm Shipping Ltd.

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AUGUST 2019

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Mrs. Suneeti Bala First Women Chief Engineer.

Exclusive Interview

Chesta Mishra Managing Editor

ho wouldn't have heard of Mrs. Suneeti Bala. She has been a trendsetter from the time she joined the MERI in 1998. Being among the earliest to join what was until then an exclusively a men's career, she went on to become the ﬁrst Indian Chief Engineer. After she proved herself capable of wielding the spanner as well as anyone else, andgot her overalls just as greasy as the next seafarer, she hung up her sailing boots to take up a job ashore. And here again, she joined hands with pioneering women seafarers to set up the IWSF. We caught up with her and interviewed her in light of the IMO's theme for Day of the Seafarer 2019.

Despite having taken the decision to step ashore, she still Miss sea and wishes to go back there at least once. While many would argue that life at sea is strenuous While Ms. Bala feels great about being the first woman and springs surprises, Ms. Bala has found that life Chief Engineer, you can sense that she hopes many ashore is full of surprises and hectic as she works 24x7 more Indian girls take up this profession and looks – at home and at the office. This was quite unlike sailing 07 forward to that day when no one would talk of a “Lady” where they work only while onboard and enjoy a gets Chief Engineer but seeing a lady Chief Engineer good vacation during the breaks spending time as she becomes as common as seeing a lady working in a liked. bank. While she reminisces of her times at sea with a longing It is but expected and accepted that going to sea would and may even miss being onboard, it would have been be challenging. While the nature of these challenges a huge loss for the seafarers, especially women may have changed with time, they remain. Ms. Bala seafarers, if she hadn't stepped ashore. She wouldn't planned what her requirements at work and at home have been able to work for the cause of women seafarers had she been at sea. were, to tide over them. Among the many decisions that helped her included when to leave sea life and She with other co-founders founded the IWSF in 2017 come ashore, when to plan a family and how to and continues to work strongly for the cause of women support the children when she is at work. seafarers in the industry.The IWSF has taken a bold She has had very supportive parents who not only let her choose this different career but was around supporting her at every step: holding her hands during the lows and sharing her joys during her ups. Her husband was equally supportive which helped her make herself relevant in a still male dominated industry even after settling ashore. With a large part of the worlds fleet being technically managed by Indian, and Indian senior officers being among the coveted ones, Ms. Bala feels that the Indian Ship management industry is among the better ones in the world. With a robust maritime education system, she expects that this will continue longer.

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step towards bridging the policy aspect of the gender gap. They had launched a set of guidelines based on MLC requirements and the Visakha Guidelines during their Annual Vision Connect event in 2018. The guidelines should help ship management companies to frame their company policies for hiring women on board She feels that prevention is always better than cure. Proper training and sensitization of crew and shore staﬀ dealing with women seafarers can help build the right approach and understanding which will help in minimize unpleasant situations. IWSF is currently working to have beneﬁts of these guidelines in India and have reached out to Government representatives.They engage with schools and colleges to sensitise students about the maritime

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Exclusive Interview profession and to bring awareness in families and girl students that seafaring is a gender-neutral profession. They will launch a gender sensitization course later this year. There are many small measures that IWSF plans to undertake as they try to justify their role in every way, every day. Social awareness and safety awareness are also part of the IWSF work. They have collaborated with IMO S Adopt-A- Ship program for raising awareness about shipping at the school level. They joined the Indian National Center for ocean Information Services (INCOIS), Kerala,University of Fisheries and ocean Studies (KUFOS) and the state

SALIENT FEATURES OF GUIDELINE The salient features of guidelines that have been issued for the employment of women seafarers are as follows: 1. Hiring of Women Seafarers: Company will give equal opportunity in hiring women seafarers at all ranks. Companies will not discriminate between genders as far as promotion to the next senior level of the promotion is concerned. According to this, the company must provide equal opportunity to women seafarers through their Company induction process and same shall be included in recruitment procedure. Company is to provide equal promotion opportunity based on performance and company promotion policy. The same is to be communicated to appraising oﬃcer and shall be part of Company performance appraisal procedure. Company should provide wages as per qualiﬁcation, experience, on a gender-neutral basis. 2. Maternity Leave and Re-joining: Company will provide maternity leave to women seafarer employee on receipt of information about her pregnancy.

Ÿ Ÿ Ÿ

Company to provide provision of hiring her back at same rank on the completion of maternity leave. Company may provide maternity leave up to 18 months of which 15 months are minimum from the last date of menstruation (LMP) Company to provide provision of hiring her back at same rank or higher basis experience/qualiﬁcation on the completion of maternity leave when woman seafarer reports back to company for joining. On completion of maternity leave, a communication shall be established to conﬁrm date of re-joining of

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Fisheries Department, Kerala to conduct awareness programmeat Puthiyappa harbor, Kozhikode for safety of fisherman- including use of AIS, and security of coast from threats of terrorism Gender sensitization is a path IWSF has begun to walk on. IWSF will continue to work with the all industry representatives to improve the strength of women in maritime field. The IWSF knows its goal and is committed to it. Ms. Bala is confident that the IWSF will discover the new paths as they walk along the road to gender sensitization. Ms. Bala hopes that everyone in the shipping Industry and all of those involved with women seafarers embrace new mind set of having women seafarers and work in getting Women seafarers on board.

the woman seafarer. Company may like to offer suitable office work to pregnant women seafarer until her 8th month of pregnancy or as per permissible medical conditions. The committee is also expected to implement the guidelines on: 1. Basic Need On-board for Women Seafarers “Including availability of sanitary napkins and medicines related to menstruation”. 2. Sexual Harassment and Grievance Redressal The Committee Shall Be Responsible For: Ÿ Receiving complaints of sexual harassment on board. Ÿ Initiating and conducting inquiry as per the established procedure. Ÿ Submitting findings and recommendations of queries. Ÿ Coordinating with the management in implementing appropriate action. Ÿ Maintaining strict confidentiality throughout the process. Ÿ Submitting annual reports in prescribed format. Ÿ Counseling of complainant women seafarer on need basis. Company to provide a contact person who can be directly approached by complainant in case of sexual harassment. Complaints can be then initiated through Master of vessel or through direct hotline available with senior management or DPA (Designated Person Ashore).

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Ÿ Ÿ Ÿ

Training Shore personnel designated to handle complaint shall be oriented to understand and deal with Gender sensitive matters. Ship's crew joining onboard (both genders} shall be sensitized on routine basis. Personnel's designated to handle complaints/hotlines/helplines shall be given

Vision of IWSF To become voice of all lady seafarers to ensure a gender diverse working environment onboard ships. Mission To promote and support lady seafarers and help them overcome their all existing and future challenges.

The IWSF Aims to: ü Support and Guide fellow seafarers and sailing women, understand challenges on board ships and learn to take right steps at right time. ü Guide and mentor young women seafarers embracing the shipping career during their adventurous journey in the maritime sector. ü Assist Companies bridge policy gaps for women seafarers on board and create awareness. ü Assist Government and Institutions in promoting education and policies related to women.

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Exclusive Interview Ÿ Ÿ

ü ü

basic training in trauma counselling. Seafarers shall be given gender sensitization training periodically as below but not limited to part of company induction training Annual workshops as part of oﬃcers' interaction/ seminars.

Promote and assist government in their mission and focus on empowerment of women. Assist government and policy makers formulating rules & regulations to the views of women seafarers and work against gender discrimination, if any. Increase visibility and presence of Women Seafarers in the Maritime sector.

The Objective of IWSF: ü To work towards protecting rights of women seafarers and promote their fair treatment. ü To raise awareness in the society about women in seafaring profession, aid and assist activities to encourage women participation in shipping. ü To provide appropriate Gender sensitization training on a sustained and evolving basis. ü To provide placement support, assistance and moral counsel to women seafarers for sailing career.

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Exclusive Column

O-7 CDR (ret.) Eyal Pinko Maritime Cyber and Security senior consultant Phd candidate for naval strategy

Unmanned Vehicles in the Maritime Domain BACKGROUND

Missions, Capabilities, Technologies and Challenges

n January 2017, during a routine patrol in the Gulf of Aden, a vessel of the Saudi navy was damaged in an attack carried out by the Houthis using an unmanned suicide vehicle. The vehicle was apparently controlled from a distance. American sources believe that it was supplied to the rebel organization by Iran. This event is highly significant in the domain of maritime warfare, even if it did not gain much media attention, since for the first time an unmanned vehicle was operated from a distance in a real warfare environment and its full operational capability was demonstrated. This event has the potential to change the configuration of the future maritime battlefield, its strategies and its tactics and will contribute to the understanding that major changes are occurring within it. The changes in the maritime battlefield are related, on the one hand, to the increasing application of asymmetric fighting doctrines (that are implemented primarily by China, Iran and Asymmetric warfare includes attempts to bypass or undermine the strengths of an adversary, while exposing its weaknesses and points of vulnerability. The weak side does this by using methods that are significantly different from those used by the stronger side. Asymmetric warfare includes almost any - battlefield more. and even in the civilian sector. In times of peace and in a variety of systems, unmanned aerial vehicles are used for gathering intelligence, observation, attacking targets, electronic warfare and furthermore, in various

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countries around the world, unmanned aerial vehicles are expected to replace manned aircraft in coming decades. The unmanned aerial vehicle technology is becoming increasingly advanced and they provide a huge economic advantage and the capability of carrying out a diversity of missions, for relatively long durations, at long ranges, with a low signature and without endangering human lives.Experts claim that the level of sales of unmanned aerial vehicles is expected to reach $15 billion in 2020 (for both military and civilian uses). In the maritime domain, unmanned vehicles are used on a smaller scale and mainly in civilian missions (usually for academic and applied oceanographic research), policing tasks and protection of ports. The operation of unmanned maritime vehicles in military missions is relatively uncommon and among the countries that do make use of them are Israel, Jordan, Singapore, Iran, the US, Britain and various countries in Europe.

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A number of countries are carrying out research to test and develop concepts, fighting doctrines and applications for unmanned maritime vehicles, and a number of countries, primarily in Europe, have begun processes to test unmanned platforms, which are used in the development of capabilities and technologies and in scenario testing, as well as the development of methods of operating unmanned platforms in warfare and in peacetime uses. Israel is involved in the development (and even the limited use) of a number of unmanned maritime vehicles in two main types of missions: the detection and destruction of submarines (including the already proven capability of firing torpedoes); and the protection of ports, including the ability to fire cannons and short-range missiles, as well as the ability to implement electronic warfare measures. The transition to the development of action used by the weak side in battle in order to overcome the strong side, particularly if the action is creative and can surprise the other side. The weak side makes use of non-conventional tactics, weapons or technologies, which can be used at all levels (strategic, tactical, and operational), over the entire spectrum of military operations and at all ranges of fighting. It will even use technologies that neutralize those of the stronger adversary. Naval asymmetric warfare constitutes a challenge and a major threat to modern navies and puts into question their traditional roles. Navies are being forced to deal with asymmetric abilities and tactics for which they have no response. They were not built to deal with them and naval warfare tactics have not been developed that are effective against adversaries that make use of these tactics.

Exclusive Column operational), over the entire spectrum of military operations and at all ranges of fighting. It will even use technologies that neutralize those of the stronger adversary. Naval asymmetric warfare constitutes a challenge and a major threat to modern navies and puts into question their traditional roles. Navies are being forced to deal with asymmetric abilities and tactics for which they have no response. They were not built to deal with them and naval warfare tactics have not been developed that are effective against adversaries that make use of these tactics. Salame David, “Unmanned Vehicles in the Maritime Domain: Challenges and Trends”, Maarahot 456. [Hebrew] nations, which has motivated navies to reduce their costs. Unmanned vehicles make it possible to reduce costs considerably in terms of both acquisition of vessels and their operation and maintenance. The final factor behind the accelerated development of unmanned platforms is the desire to reduce manpower and to minimize the risk to human life as much as possible. This chapter presents an up-to-date overview of unmanned vehicles, including the mapping of potential missions, required capabilities, advantages and disadvantages of their use, key technologies in use and the challenges of integrating unmanned maritime vehicles in navies and military applications. The article will not deal with the civilian uses of these vehicles.

Salame David, “Unmanned Vehicles in the Maritime Domain: Challenges and Trends”, Maarahot 456. [Hebrew] unmanned platforms is the result of several factors: The ﬁrst is the need to operate in littoral warfare situations and asymmetric warfare situations. The second is the existence and maturity of technologies that enable the development of unmanned maritime vehicles. The third is the reduction in defense budgets, particularly in the Western action used by the weak side in battle in order to overcome the strong side, particularly if the actionis creative and can surprise the other side. The weak side makes use of non-conventional tactics, weapons or technologies, which can be used at all levels (strategic, tactical, and

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Exclusive Column Deﬁnitions and classiﬁcations A maritime unmanned system (MUS) operates without a crew onboard and includes at least one unmanned maritime platform with the ability to operate autonomously (i.e. entirely without the intervention of an operator during the mission) or is operated from a distance during part of a mission or its entirety. UNMANNED MARITIME VEHICLES CAN BE CLASSIFIED ACCORDING TO A NUMBER OF CRITERIA: A.Type of vehicle. B.The dimensions of the vehicle: length and displacement (weight). C.Level of autonomy.

THERE ARE FOUR LEVELS OF AUTONOMY FOR UNMANNED MARITIME VEHICLES: A.Non-autonomous: only human operation in all stages of the mission. The operation is carried out by means of a communication channel from a distant operating station to the vehicle and usually according to information and indications received through the channel of communication from the vehicle (for example: video images, sensors that provide the location and situation of the vehicle, etc.).

D.Type of mission. THERE ARE THREE TYPES OF MARITIME UNMANNED VEHICLES: A.Unmanned Surface Vehicles (USV): These are vehicles that are self-propelled and sail above the water. The vehicle can be controlled by a distant operator or can be autonomous. B.Unmanned Underwater Vehicles (UUV): These are essentially submarines that are self-propelled and usually operate with full autonomy. C.Glider: This is an unmanned vehicle without its own propulsion system.

B.Autonomy according to authorization: The vehicle has the ability to carry out certain functions according to predetermined authorization of the operator (or it is determined during the mission), where the functions are planned and programmed ahead of time (or example: a predetermined course). C.Controlled autonomy: A vehicle with the ability to carry out numerous functions independently according to logical protocols; although certain functions require approval of an operator before being carried out (such as approval to open ﬁre). D.Full autonomy: A vehicle with full capability to carry out its missions, including decision making during them,according to the conditions of the environment or the situation of the vehicle.

Underwater unmanned vehicles 12

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POTENTIAL MISSIONS The poten al military applica ons of unmanned mari me vehicles can be divided by type:

Exclusive Column Seagull unmanned surface vehicle ﬁre torpedo

A. Unmanned surface vehicle (USV) 1. Detec on of sea mines with emphasis on the entrances to ports or in their vicinity (Mine Countermeasures – MCM). 2. An -submarine warfare (ASW) which includes the detec on of submarines and firing of torpedoes or dropping of depth charges 3. Guarding essen al facili es, ports or commercial sea lanes (Mari me Security – MS). 4. Surface warfare (SUW) includes capabili es of detec on and firing of missiles or cannons and electronic warfare capabili es. 5. Gathering of intelligence at long ranges by means of passive detec on systems (such as SIGINT or ELINT systems), gathering of acous c signatures of sea vessels (ACINT) and/or visual observa on systems (Intelligence, Surveillance and Reconnaissance – ISR). 6. Special opera ons support (SOS) includes capabili es of detec on, electronic warfare, conveyance of cargo, target satura on, etc. Electronic warfare (EW) whose goal is to disrupt the adversary's detec on systems and support manned vessels in the intercep on of enemy missiles. Unmanned underwater vehicles (UUV) 1. Gathering of intelligence by means of passive detec on systems (such as SIGINT or ELINT) and gathering of vessels' acous c signatures (ISR). 2. Detec on of sea mines (MCM) 3. An -submarine warfare including detec on and a ack (ASW). 4. Mapping of the ocean floor in order to build an underwater database to be used for naviga on of submarines and the mapping of naviga on obstacles in the sea for mari me vessels. 5. Conveyance of cargo and supplies.

Advantages of unmanned maritime vehicles The contribution of unmanned vehicles to maritime military operations is derived from the missions that the vehicle is capable of and its operational advantages: Nonetheless, a number of generic advantages of unmanned maritime vehicles can be deﬁned: a. Autonomy: The ability to independently carry out missions of prolonged duration can be a force multiplier for a navy and can assist it in carrying out important and complex missions. b. Risk reduction: Reducing exposure of combatants to risk (from adversaries or natural phenomena). c. Deployment and operationfrom various platforms: unmanned vehicles can be sent from other maritime vessels to a wide variety of missions. d. Perseverance: dealing with various ocean situations and ability to continue the mission, without risk to crew or of mission interruption in severe weather conditions. e. Cost: The cost of unmanned platforms is low relative to manned platforms, in terms of both acquisition and manpower needed for maintenance and operation on the one hand and training and maintenance on the other. f. Genericity: Use can be made of existing civilian platforms and other civilian components that are heap and accessible (without having to develop them), as well as robots. g. Modularity: Various modules can be combined in unmanned maritime vehicles (such as attack, submarine warfare, gathering of intelligence and electronic warfare) and thus their function and mission can be changed with relative ease.

A. Gliders

The Protector unmanned Surface vehicle, which carries the Typhoon gun mount and Spike antitank missiles.

1. Relay for communica on channels. 2. Mapping of the ocean ﬂoor. 3. Detec on of sea mines.

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Exclusive Column Required capabili es

The main capabili es required of unmanned mari me vehicles (both surface and underwater) are the following: a. The ability to work and survive in stormy seas (surface vehicles and gliders) and in strong currents (emphasis on underwater vehicles). b. Long opera ng dura on (primarily underwater vehicles). c. Robustness and ability to endure long-term and long-range missions with respect to reliability, performance and energy. d. Versa lity and modularity: Modular ability to be fi ed with various weapons and equipment and according to the mission required of the vehicle. e. Stealth: Low signature which hinders the adversary's detec on systems (op cal, acous c and radar). f. Physical protec on of the vehicle (against hos le takeover or being fired upon). Technologies In recent decades, a large amount of research has been carried out and technologies have been developed for various autonomous systems, including aerial, ground and mari me systems.A large por on of the technologies have already reached maturity and can be installed on unmanned mari me pla orms while others are s ll in the processes of R&D. The key technologies required for the applica on of unmanned mari me vehicles are the following: A. Sensors (radar, op cal and electronic warfare). 1. Miniaturiza on of sensors while maintaining their performance (or improving it). 2. Minimizing fuel consump on. 3. Endurance of difficult environmental condi ons. 4. Reliability and high availability. B. High-capacity energy sources, of dimensions that enable their installa on on a rela vely small unmanned mari me vehicle and which allow for long-term and long-rangeopera ons. C. Communica on that is immuneto a empts at disrup on, is secure and encoded in high-speed transfer files and is capable of long distance transmission (including underwater). D. Dynamic mission-planning ability prior to and during a mission, including ar ficial intelligence abili es. E. Ability for coordina on and autonomous ac vity etween pla orms and coordinated ac vity in a network. F. Precise naviga ng technologies (specially designed for unmanned mari me vehicles) and protec on from disrup on and decep on. G. Autonomous steering ability, including exact naviga on

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(by means of cross-referencing informa on from the vehicle's sensors and GIS data) and avoidance of naviga on obstacles (dynamic or sta c). h. Technologies to reduce the vehicle's signature (radar, acous c and thermal).

Development of ba lefield doctrine There is need to learn, define, develop and test the mari me warfare doctrine for the integra on of unmanned mari me vehicles within the navy's missions (whether independent missions or missions in which manned vessels and unmanned vehicles are combined). The ba lefield doctrine that includes use of unmanned vehicles may include a number of components: A. Guarding and security: 1. Short ranges: protec on of port entrances and infrastructure sites along the coast. 2. Intermediate ranges: protec on of cri cal state infrastructures in Exclusive Economic Zones. B. Warfare: 1. Assistance in the protec on of manned vessels on the open sea ("blue water") against surface and underwater threats. 2. Assistance in the protec on of manned vessels in li oral warfare. 3. Assistance in special opera ons. C. Intelligence and infrastructure: 1. Gathering of informa on. 2. Mapping (oceanography). 3. Logis cal support. The integrated mari me warfare doctrine should take into account a number of criteria: A. IDENTIFICATION and mapping of missions in which unmanned vehicles are a significant force mul plier. B. An analysis of missions and study of performance with regard to the required number of vessels that need to operate simultaneously, the number of vessels required for backup (logis cal redundancy), etc. C. Time at sea and defini on of mission lengths that are characteris c of the pla orms. D. Mo on: speed and maneuverability. E. Degree of autonomy and degree of involvement of the operator. F. Modularity and ability to carry out a variety of missions. G. Ability to destroy targets and killing power that is required and can be created by the vessels (for missions that are part of a naval ba le). H. Effec veness of the use of the various sensors (such as the range of detec on by radar, op cal means or the detec on range of sonar for detec on of submarines). Considera on of the effec veness of the sensors is important since the mast height of an unmanned vehicle is usually very low and the installa on of

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Detec on instruments on the vehicle will lead to rela vely low detec on ranges. In the underwater dimension, the vehicles are usually acous cally noisy and their noise is liable to lessen detec on ranges (although there are technological solu ons for this as well). I. Compa bility and integra on within the navy's other systems(command and control systems, communica on systems, encoding, electromagne c capability and the like). j. Transport: The requirements for transport of the vehicles on other vessels and the manner of their launch and pickup a er the mission. k. Survivability of the vehicle from the perspec ve of environmental condi ons. l. Mapping of the threats to the vehicles and assessment of the protec on required (physical protec on against hos le takeover, protec on against cyber a ack on the vehicle's systems by way of its communica on and control systems and protec on against other threats such as a acks using various types of weapons). Iden ﬁca on of exis ng technologies and of technological leads that need to be developed.

Challenges Navies that wish to integrate unmanned mari me vehicles as part of their capabili es face a number of challenges. These can be divided into a number of categories: The first challenge is cultural. Navies throughout the world are by nature conserva ve, par cularly at the level of decision makers, and find it difficult to accept change and in par cular changes involving the introduc on of unmanned vehicles that will replace manned vessels or will operate together with them. The second challenge is the formula on of strategies and an overall opera onal doctrine, including the defini on of missions for unmanned vehicles, their integra on within the navy's missions and the opera onal strategy in various warfare scenarios (for ongoing security tasks and in conflict) and formula on of command and control processes (including the authority to open fire from unmanned vehicles that combine weapons and command and control posi ons on the shore or on another vessel), etc. The third challenge is to protect the vehicles, which has a number of elements: The first is the physical protec on of the vehicle, par cularly vehicles with a high level of autonomy, from capture and takeover. In this context, it is worth men oned as an example the capture of an American unmanned underwater vehicle by the Chinese navy in December 2016. The second element is protec on of the vehicle against various types of weapons (bullets, shells and even missiles). Another element is protec on against cyber threats and electronic warfare, par cularly in the case of vehicles controlled through communica on channels.

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Exclusive Column There is another group of challenges which are technological and which make possible the development of the vehicle's capabili es. Among the most signiﬁcant technological challenges are: energy (prolonged opera on of the vehicle and its systems);precise naviga on systems (par cularly for underwater vehicles); miniaturiza on of sensors (to reduce power output and to be able to ﬁt them on the vehicles) while maintaining high levels of performance and reliability; secure, secret and encoded communica on; and the ability to work autonomously in a network, including coordina on between all of the vessels.

Conclusion The mari me domain plays a central role in a country's economy, its level of prosperity and its choices. Mari me trade grows every year and the reliance of coastal countries on mari me commerce and the produc on of offshore energy is increasing. Thus, for example, there has been a massive increase in recent years in the declara on of Exclusive Economic Zones and in the produc on of oil and gas in these territories. The character of mari me warfare has also changed and navies who in the past built up blue water firepower and figh ng capabili es are now placing emphasis on the development of capabili es and the buildup of force in scenarios of li oral warfare and protec on of offshore assets. These scenarios are usually asymmetric and require naval power to deal with naval forces of terrorist organiza ons or countries that adopt asymmetric tac cs, such as China and Iran. Another prominent characteris c of modern mari me warfare is the ability to project force from sea to land at long range from the coast (such as the a acks carried out from sea to land in Syria by the Russians and Americans, a acks by the allies in Libya, etc.). The tradi onal missions of navies, such as escor ng convoys in me of war and mari me warfare against other navies, are diminishing in scope, nearly to the point that they don't exist at all. It can be said, for example, that there has not been a classic sea ba le (i.e. one that includes one ship firing on another) for many decades, while asymmetric ba les and scenarios for protec ng cri cal infrastructures in economic waters, as well as the projec on of power from the sea, are becoming increasingly common. the characteris cs of mari me warfare and the emphasis on naval missions in the modern era indicate that naval power must be versa le and must possess diverse capabili es. It must be able to operate in situa ons of high risk and par cularly in situa ons of li oral warfare. Unmanned mari me vehicles may be one of the main solu ons in the development of diverse capabili es in modern mari me warfare situa ons.

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Exclusive Column

Maritime Fraud Cargo Thefts

here are several variations in the modus operandi of cargo thefts. In a typical example, the vessel, having loaded a cargo, deviates from its route and puts it into a port of convenience. Such ports are Tripoli, Beitut, Almina, Jouneih, RasSalaata and others along the coasts of Greece, Lebanon and Suria. The cargo may be discharged and sold on the quayside or in a more sophisticated manner. Such an act is often accompanied by a change of the vessel's name or a subsequent scuttling in order to hide the evidence of theft. The whole process of investigation is proved diﬃcult as by the time the loss is known the cargo disappears and the actual recovery of goods is unlikely. The owners of these ships are "paper companies" set up a few days prior to the operation.

Fraud Related To Chartering Of Vessels This is also known as Charter-party fraud". Establishing a chartering company required a modest initial ﬁnancial commitment and is usually subject to little regulation. In depressed conditions of shipping market, there is no demand on tonnage and owners anxious to avoid laying up their vessels are tempted to charter them to unknown companies without demanding any substantial ﬁnancial guarantee for the performance of the charter contract.

goods can be more attractively priced the charterer offers low freight rates on pre-paid basis. He can afford to do that, as he has no intention of completing the voyage. Soon, after the vessel sails from the port, the charterer disappears. He may have paid his first month's hire or he might not have paid any hire charges as are due from him. Meanwhile the ship-owner may find himself with substantial bills to meet from port authorities along with the ship's route as well as for crew's wages and for provisioning the ship. Worse, the ship owner may find that his ship, not having delivered the cargo to the consignees, has been arrested and this leads to protracted and expensive legal wrangle. In order to get their goods to destination, shippers may agree to pay a freight surcharges or they will agree to a diversion and a sale of the goods to cover costs and then state the export process all over again. Sometimes, when no such compromise can be reached, the ship owner will instruct the master to divert his ship and sell the cargo wherever he can, and this become as much of a criminal as the charterer.

The fraudulent charterer can turn this situation to his advantage. Having chartered a vessel from an unsuspecting owner, the charterer canvasses for cargo, knowing that in a depressed economy, shippers will be willing to cut corners in the hope of reducing transport costs and thus saving on freight so that their

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Exclusive Column

Precautionary Measures for Fraud Prevention

here are certain basic precautions against maritime fraud that commercial interests, like exporter and importers, banks and insurance companies, should be aware of and should be able to implement.

Exporters and Importers The checks and precautions that buyers and sellers can implement are: 1) Care should be exercised when dealing for the ﬁrst time with unknown parties. Careful inquiries should be made as to their standing and integrity before entering into a binding agreement. 2) Shipment should be by well-established shipping lines. In India, vessels approved by GIC should be preferred. 3) The cargo owners should be wary: - If the freight rate is too attractive - If the ship owner owns one vessel only 'singleton') - If the vessel is over 15 years of age. - If the vessel has passed through various owners. 4)Payment by irrevocable documentary credit, conﬁrmed by a bank in seller's country, provides the best safeguard to the seller. Should the seller have any doubt about the authenticity of the documentary credit, he should immediately consult

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his bank before parting with the goods. 5) As far as the buyer is concerned, he should ensure that he receives the documents he has stipulated in his documentary credit application. 6) As far as the buyer is concerned, he should ensure that he receives the documents he has stipulated in his documentary credit application. Therefore, the buyer must consider carefully which documents he requires. For example, an independent "loading certificate" would add significantly to his protection as would detail instructions on which shipping line or forwarding agent is to be used. The inspection of cargo should be as close to the time of loading on board as possible. 7) In order to ensure that the subject cargo is in fact loaded on the specified carrying vessel, the buyer may stipulate for a "report on the vessel" from an independent third party. 8) Conference or national lines bills of lading should be used and marked "freight prepaid" with the amount of freight clearly stated in the bill of lading. 9) Services of dependable and well-known forwarding agents, who are also members of a national association, should be engaged. 10)Buyers and sellers should attempt to identify whether the carrying vessel is on charter and who the chatterers and owners are and whether chartering is done only through agents or reputable institutions.

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Exclusive Column

Capt. Jeetendra Sama (Master Mariner) Chemical Tanker Safety Features

n a Chemical Tanker - Various precautions need to be adhered to with regard to Safe Operation in Preparing of Cargo Tanks ensuring Safe Operation n strictly sticking to its Safety Procedure: Prior Arrival at Loadport Various stringent Ship Checks to be carried out as per laid down Check List: When approaching a Loadport or Disport, following important pre-arrival checks should be carried out by the ship staff in order to play safe and avoid any delays. 1. On tanks in which cargo is to be transferred, In-Tank Instrumentation such as Level Gauges, Level Alarms and Thermometers should be Tested and Tried out for safe operation, accuracy in gauging of cargo in tanks and Remote Control System should be tested where appropriate. High Level Alarms and Tank Overflow Control Alarms are safety critical components of the cargo transfer system, and loading should not be commenced if pre-transfer checks are found deficient & faulty.

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2. Hatches, lids and openings to cargo tanks that are not required to be open for a specific reason should be firmly closed. 3. Cargo pipelines and crossover valves should be checked, and all drains closed and secured. 4. All ship's cargo and bunker pipelines not in use should be securely blanked and fully bolted at the manifold. Unless it is to be used, the stern cargo pipeline should be isolated from the tanker's main pipeline system at a point forward of the aft accommodation, by blanking or the removal of a spool piece. 5. Where loading or discharging is to be via a cargo pump-room, the pump-room ventilation system should be checked to ensure readiness for operation throughout the cargo operations. 6. Cargo area deck lighting should be checked and confirmed as being in full working order, with special attention given to the area of the ship to shore cargo connection and hose handling equipment.Ship checks after arrival but prior to cargo operationsBefore any cargo transfer starts, the responsible officer should be satisfied that the applicable precautions are being observed. The use of safety checklists, appropriately adapted for the specific ship, is strongly recommended. The following important checks should be made by the ship at this stage: 1. Information should be sought on any forecast of adverse weather conditions which may require operations to be stopped or transfer rates reduced. 2. Certain cargoes require the vapour that is displaced by incoming cargo to be returned to the shore facility. The responsible officer should ensure that the ship and the shore vapour system are compatible, and that the system will operate in compliance with local and terminal regulations. 3. The characteristics of the product must be known, usually in the form of a cargo information form or data sheet indicating, among other things, health hazards, specific gravity, temperature, vapour pressure, reactivity with other materials or cargoes, heat sensitivity, risk of exothermic self-reaction, toxicity and general safe handling practices. It is desirable that initial response to emergencies is clearly shown. 4. If a cargo liable to self-reaction is to be loaded, correct arrangements should be made for conditions and limitations in the inhibitor certificate to be met with for the duration of the voyage.

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Exclusive Column 5. Normally tanks to be loaded are pre-inspected for cleanliness by an independent surveyor. This can vary from a superficial visual inspection from the deck, to a very detailed inspection inside the cargo tank in which bulkheads are wall-washed and thoroughly checked. The responsible officer should satisfy himself that the tanks to be so inspected are well ventilated and safe to enter, and are marked as being safe to enter. Tank entry procedures should be complied with. When a tank is entered for inspection the surveyor should be accompanied by the responsible officer or a person delegated by him. 6. Tanks passed for loading should be tightly secured with all cargo openings closed. 7. All sighting ports and ullage plugs should be closed and secured, unless expected to be used during handling of the cargo about to be loaded. If openings are required to be open for venting purposes, each opening should be protected by a flame screen designed for that opening and kept clean. 8. When not in use, sea suction and overboard discharge valves connected to cargo and ballast systems must be securely closed and lashed, and may be sealed by shore authorities. In-line blanks should be inserted where these are provided. When lashing is not practicable, valves should be suitably marked to indicate clearly that they are to remain closed. 9. Before cargo handling is started, all deck scuppers and any open drains onto the jetty must be effectively plugged to prevent spilled cargo escaping into the water around the tanker or onto the terminal. Accumulations of rainwater should be drained periodically and scupper plugs replaced immediately afterwards. Contaminated water should be transferred to a slop tank or other suitable receptacle. 10.Cargo manifolds should be ready for connection to shore hoses, but with blank flanges removed only on those lines to be used, and only on the connecting side of the ship. 11.Where loading is via a cargo pump-room, the pump-room ventilation system should be working throughout the operation, and all drains and nonessential valves in the pump-room must be closed and secured. 12.Accommodation doors and portholes overlooking

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Exclusive Column the cargo area should be shut. If stern loading is to be undertaken, it may be necessary to provide special advice to the crew. 13. The cargo venting system should be appropriate for the cargo operation. 14. Intakes for central air conditioning and mechanical ventilation systems should be checked for correct setting. 15. Means should be provided for the prompt removal of any spillage on deck. 16. Fire ﬁghting equipment should be inspected, and ready for immediate use. 17. Correct personal protective clothing and breathing apparatus, appropriate to the cargo, should be immediately available, and should be worn as Just prior to commencing cargo transfer, the responsible oﬃcer should check that the cargo pipeline system is set correctly, that correct valves are open and that pipeline valves not being used (including drop valves) are closed.

1. That the Ship/Shore Safety Checklist has been completed satisfactorily. 2. That Local and Terminal Regulations have been ascertained and are being observed. 3. That agreement has been reached with the responsible terminal representative about signals to indicate stand-by, start operation, slow down and stop operation. 4. That when shore-supplied nitrogen is to be used for inerting cargo tanks, the procedure for handling it has been agreed. 5. That the sequence of cargoes and pumping rates has been agreed. 6. Whether ship or shore will order pumps to be stopped on completion. 7. That emergency shutdown procedures, and action to be taken in case of ﬁre or other emergency, have been agreed. 8. That if an insulating ﬂange is used in the hose connection, its insulation has not been impaired.

Fig: Chemical Tanker General Safety precautions at berth. Joint ship anti shore liaison, and checks prior to cargo operations A liaison meeting should be held with the responsible terminal staﬀ, at which the operational plan for the order of cargo handling can be agreed. The following joint ship and shore checks in cooperation with a terminal representative are recommended:

Disclaimer: views and thoughts expressed are personal and solely belong to the writer.

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NEWS Two Chinese Fishing Vessels Aground, Cape Verde

wo Chinese fishing vessels, RUITAIFEN 903 and LIAN RUN 35, drifted aground on a coast of Lazareto, Sao Vicente island, Cape Verde, in the afternoon Jul 23. One of vessels was anchored off coast, with another moored alongside. Both vessels reported to be owned by Dalian Lianrun Pelagic Fishing Co. Ltd, though LIAN RUN 35 is Guinea Conakry flagged. No data found on RUITAIFEN 903 and LIAN RUN 35 in available databases. Dalian Lianrun Pelagic Fishing Co. Ltd is known for its’ poaching practices in Western Africa waters.

Russian Fishing Vessel Seized By North Korea In International Waters

ishing vessel XIANG HAI LIN 8 was seized by North Korean Coast Guard early in the morning Jul 17 in Japan sea, at some 55 nm distance off North Korean coast, in international waters. Vessel with 17 crew, including 15 Russian and 2 South Korean nationals, was sailing from South Korea to fishing grounds in Japan sea. Coast Guard boarded vessel and switched off all communications, taking vessel to Wonsan port, North Korea. Owner can’t contact his crew, Russian diplomats were allowed to visit vessel on Jul 23. Master, one of officers and 2 South Korean fishermen are kept on shore in local hotel under arrest, the rest of the crew remain arrested on board in harsh conditions, they’re interrogated and searched two times every day, “in a very tough, ruthless manner”. Fishing vessel XIANG HAI LIN 8, IMO 9801809, displacement 501, built 2015, flag Russia, owner North-East Fishing Company, Nevelsk, Russia.

Italian Fishing Vessel Seized By Libyan Coast Guard

talian fishing vessel, identified as FV TRAMONTANA, was seized by Libyan Coast Guard on Jul 22 in Gulf of Sidra, some 50 nm off Libyan coast, while reportedly, catching shrimp. Libya considers 50-mile zone as her exclusive economic zone, claim strongly opposed by Italy and other coastal States in the region. Seizure of TRAMONTANA seems to be one more incident in never ending fishing wars, having nothing to do with political mess in the region. TRAMONTANA was taken to Misurata port, according to Italian MFA statement. Fishing vessel TRAMONTANA, Callsign INCP, length 30 meters, flag Italy, no AIS signal since early Jun this year.

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NEWS A major beneficiary of this meteoric rise in Singapore bunker prices, at least in the first half of July, were the main bunkering locations in the neighborhood — Hong Kong and Shanghai. Suppliers there scrambled to capitalize on the opportunity, which led to overcommitment and stocks running out sooner than most sellers would have liked. “For the last few months, demand has not been good and nobody dares to take more cargo … however, Singapore prices have been very high this month, so some demand has shifted over [here],” a Hong Kongbased bunker trader said late last week. “[Sellers] did not import enough cargoes to cover this additional demand. It’s going to be very tight until month-end,” the trader added. “We have not been able to absorb this additional demand,” a second Hong Kong-based bunker said last week. “For some of our own vessels we have to delay [bunkering] … if the vessel comes tomorrow morning, we have no [other] choice,” he added. A tight availability in Hong Kong was further exacerbated after one of China’s oil majors was said to have cut nominated ex-wharf volumes to its suppliers for July by a third, said Hong Kong-based suppliers. “We were supposed to load 50,000 mt of fuel oil this month, but got sold only 35,000 mt,” said the second trader. “Everyone is over-committed … basically we don’t have enough cargo to meet our commitments,” a third Hong Kong-based bunker trader said Wednesday. “May be they are over-committed too, or perhaps want to keep the product to sell themselves in this high premium market, but they did cut supplies by a third for all their lifters,” he added about the Chinese oil major slashing July nominated volumes. “Zhoushan and Shanghai [delivered] market was above $500/mt yesterday … there are limited avails, and premiums [are] sky high,” said a shipowner late Wednesday about high flat price offers at Zhoushan and Shanghai.

A lack of availability amid steady demand led Hong Kong-delivered 380 CST bunker premium to MOPS 380 CST HSFO to rise to a record high of $118/mt Tuesday. Shanghai-delivered 380 CST bunker premium rose to $87.58/mt Wednesday, the highest since the launch of the assessment on November 2, 2009, Platts data showed. “Most suppliers don’t have enough cargo, so [can] sell high,” a Shanghai-based bunker trader said last week. Sky-high bunker premiums in Singapore have also led to demand shifting further aﬁeld to the Middle Eastern port of Fujairah, said traders. “Lower prices than other major ports like Singapore have brought some owners back this month,” a Dubai-based bunker supplier said last week. “Demand has been more due to high bunker premiums in Singapore and tightness there, but the war risk premiums are still taking a hit on things here,” another Middle East-based bunker supplier said. Fujairah-delivered 380 CST bunker premium to Mean of Platts Arab Gulf 380 CST HSFO rose to a 6month high of $16.84/mt Tuesday before inching lower to $15.97/mt Wednesday, data showed. CORRECTION IMPENDING? Multi-year high premiums amid a lack of supply at neighboring north Asian ports have led traders to put oil on water to ship to these locations, said traders. “Two shipments from Singapore are on its way … that product should be ready for delivery from August 3 … then there’s another cargo that should discharge by the end of the month,” said the third bunker trader. “We expect this market situation to continue till the end of the month,” he said. “Suppliers at Shanghai don’t know when the new cargo will come, heard in the end of this month, but may delay … Shanghai is out of fuel oil till the end of July,” said a Shanghai-based bunker trader.

A RIPPLE EFFECT A surge in incremental demand, which then led to a depletion of stocks, also resulted in bunker premiums in both Hong Kong and Shanghai to swell.

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NEWS China to expand discharge ban on open-loop exhaust scrubbers -draft

China will extend a ban on discharging the waste water from open-loop scrubbers to more coastal regions starting in 2020, the country’s maritime authority said in a draft plan. An open-loop scrubber is a device that removes sulphur from the exhaust that comes through a ship’s smokestack but the water used in the removal process, known as wash water, is then discharged from the vessel. Closed-loop systems keep most of the wash water onboard the ship. The ban follows a restriction eﬀective in Jan 2019 on discharges from open-loop scrubbers in key emission control regions, including the main channel of the Yangtze River, the Xijiang River, the Bohai sea region and ports along the coastline. The Maritime Safety Administration (MSA) said in the draft dated July 22 that it plans to extend the ban to all coastal regions within 12 nautical miles (22.22 km) from the baseline of China’s territorial sea and regions near the southern island province of Hainan.

“The restriction is in line with China’s war against pollution and is part of obligations of the international convention China concluded,” the MSA said. Banning open-loop scrubbers means shippers will have to switch to a closed-loop scrubbers system or to use low-sulphur bunker fuels. The MSA also plans to ban ships using marine fuels with a sulphur content of more than 0.5% from entering Chinese jurisdiction of sea regions from 2020, and ships using fuel with a sulphur content of more than 0.1% will be banned from entering the Yangtze and Xijiang river regions from 2022. It will also ban vessels carrying fuel oil with a sulphur content of more than 0.5% from entering Chinese water from March 1, 2020. The draft will be open for public feedback until Aug. 22.

The new regulation will come into eﬀect from Jan. 1, 2020, when a 0.5% sulphur content cap in shipping fuel set by the International Maritime Organisation (IMO) kicks in.

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NEWS

“Delay in compliance with nuclear security regulations to boost Japan’s LNG imports” Japan’s LNG imports are projected to recover in 2020 and 2021 as nuclear plants are unlikely to meet the deadlines of the new anti-terrorism nuclear regulations. Japan’s LNG demand is expected to revive from mid-2020 and increase until 2022 as the operators of the country’s nuclear reactors will fail to meet the deadline of the nuclear regulation authority’s new anti-terrorism regulations. This will force Japan to fall back on LNG and coal for electricity generation and dent the country’s long-term plan to increase the share of nuclear power to above 20% by 2030 in the energy mix.In order to avoid meltdowns in nuclear reactors in the event of a terrorist attack or a natural disaster (such as the 2011 Fukushima disaster), the new regulations mandate operators to construct by stipulated dates separate buildings that include backup power and water pumps, as well as an emergency meeting room for workers. As seven of the recently restarted reactors are likely to miss their deadlines, they will face shutdowns, further delaying the ramp-up of nuclear power generation in the country.

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In fact, around 11 gigawatt of nuclear power will have to be shut down if the deadlines are not met, creating demand for an additional 2.3 mtpa of LNG in 2020 and 2021. However, with the country’s nuclear reactors expected to meet the deadlines by the end of 2021, and with renewable energy projects coming online demand for LNG will fall once again. Prospect of nuclear plant shutdown brings cheer to LNG shipping. The probable shutdown of nuclear plants comes as good news for the global LNG market which has been oversupplied this year and will remain in a glut until 2022. The additional demand from Japan will bring some balance to the market and will also beneﬁt the LNG shipping sector. Japan’s LNG imports peaked in 2014 and have declined since due to the surge in LNG prices and restart of nuclear reactors (after the 2011 Fukushima disaster) which were shut for mandatory safety inspections and testing. Before the 2011 disaster, there were 54 nuclear reactors in the country which supplied around

3 0 % o f t h e e l e c t r i c p o w e r. However, in July 2013, the government set stringent standards that would enable the plants to withstand earthquakes and tsunamis. As most of the operators are unable to comply with the new safety standards, 21 reactors including Fukushima will be decommissioned. Of the remaining 34 reactors, nine at five plants have met the new standards and have thus resumed operations. Several others had also restarted operations only to be shut down again on orders by the local courts. When the nuclear power plants resumed operations in 2018, Japan’s LNG imports started to fall, and in 1H19, they shrank 8% to 38.9 million tonnes from 42.1 million tonnes in 1H18. The drop in LNG imports was in line with Japan’s efforts to reduce the share of natural gas from 40% to 27% by 2030 and increase the share of nuclear and renewable sources in its energy mix by 2030. Japan’s LNG demand is projected to fall between 8% and 10% in 2019 but we expect it to increase again from 2021 as the nuclear reactors temporarily go offline.

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NEWS “Baltic index sees worst week in 6 months as ship availability improves” The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 0.5%, or 10 points, to 1,937 points. The index fell 10.7%, worst weekly performance since week-ending Feb. 1. The index has still more than tripled since February, mainly driven by strong demand for vessels that ship iron ore from Brazil into China. The capesize index rose 38 points, or 1.1%, to 3,647 points. For the week, capesize index was down 16.7%, its worst since week-ending March 29. Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, rose $217 to $27,145. The panamax index fell 71 points, or 3.3%, to 2,109 points.

he Baltic Exchange’s main sea freight index fell for a fourth straight session on Friday, driving it to its worst weekly loss in six months on abundant availability of ships in the Atlantic region.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $562 to $16,869. The supremes index fell 7 points to 1,005 points.

“Nordic American Tankers Limited Expects Stronger Tanker Market During Second Half of the Year” The 2Q2019 results for NAT are to be released Friday August 16, 2019 before the opening of trading at the New York Stock Exchange. As communicated in the past, our results and dividends fluctuate. A normal seasonal slowdown occurred during 2Q2019. However, the dividend policy of NAT remains steadfast. The Board has declared a dividend of 1 cent per share for the quarter, which is the 88th quarterly dividend. The time charter equivalent per ship was about USD 14,500 per day during the second quarter of 2019, giving an average of about USD 20,000 for the first half of 2019. This is a significant improvement over the same period in 2018.

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NEWS The situation in the Middle East may well have a positive eﬀect on NAT. With a better tanker environment, we expect the NAT dividend capacity to increase appreciably. In recent months NAT has been contacted by industry players seeking cooperation, indicating that NAT is regarded as an attractive investment opportunity. The main policy of NAT is to treat all shareholders equally. We have advised such interested parties that they may buy shares in NAT. NAT has a high trading volume. One important reason for being listed, is that shareholders may buy and sell shares whenever they wish.

We expect a stronger market in the second half of the year. We foresee that 2019

overall to be better than 2018. We also expect 2020 to be a strong year for our tankers.

Important changes have taken place in NAT in 2019. A full reﬁnancing was concluded in February 2019 via one US based ﬁnancial institution. All other bank debt was repaid. Combined with the positive outlook for the tanker industry, we see good prospects for NAT going forward.

Counting down to 2020, Singapore’s Ocean Tankers tests IMO-compliant fuel Off the coast of Singapore, the world’s largest ship refueling center, a bunker barge sidled next to the supertanker Pu Tuo San to fill the giant vessel with a new type of fuel that will meet global standards that start up in January. With a little over five months left until stricter marine fuel rules come into effect, shippers such as Singapore’s Ocean Tankers that own the very large crude carrier (VLCC) Pu Tuo San have started testing out lower sulfur fuel to prepare their fleet for the transition. New International Maritime Organization (IMO) rules prohibiting ships from using fuels containing more than 0.5% sulfur, compared with 3.5% currently, will start on Jan. 1, 2020, as a way to combat air pollution. The move will affect fuel supplies to more than 50,000 merchant s h i p s g l o b a l l y. Shippers will have to either invest in exhaust cleaning systems, known as scrubbers, to continue using cheaper highsulfur fuels, or burn more expensive oil products, such as very low-sulfur fuel oil (VLSFO) and marine

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gasoil, or use liquefied natural gas (LNG). The bulk of the global shipping fleet is expected to switch to low-sulfur fuels as only about 3,600 ships will have installed scrubbers by 2020, data from ship classification society DNV-GL showed. Ocean Tankers, the shipping unit of Singapore’s largest independent oil trader Hin Leong Pte Ltd, said it will convert its fleet of more than 100 oil tankers to burn VLSFO instead of high-sulfur fuel oil in the fourth quarter. The Reuters energy team boarded the Pu Tuo San on July 11, which loaded about 1,000 tonnes of VLSFO for the first time. The ship also loaded 2,000 tonnes of high-sulfur fuel oil. A laden VLCC will typically burn about 55 tonnes of fuel oil per day at a normal cruising speed. T h e P u Tu o S a n i s currently heading to Fujairah in the United Arab Emirates. The Pu Tuo San is Ocean Tankers’ second vessel to test the new fuel, the company said. Concerns over the compatibility and stability of various blends of VLSFO has prompted shippers to test the new fuel type well ahead of the 2020 deadline.

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NEWS the opportunity represented by the compliance challenges facing our customers with the adoption of the IMO [International Maritime Organization] 2020 sulfur cap standards, Kasbar said, adding that the company was already engaging with its customers as they prepared for the rule.

“World Fuel’s strong margins boost Q2 marine segment profit as volumes fall”. World Fuel Services Corp.’s marine fuel sales volumes in the second quarter fell by about 13.2% year on year to 5.1 million mt as it exited some low margin businesses in Asia, the US-based company said. Despite the drop in bunker sales volumes, the marine segment still generated a gross profit of $36.4 million in the quarter ended June 30, up about 20% year-overyear, mainly related to ‘improved performance’ in its core resale operations, the company said. The company, however, didn’t elaborate on which specific business activities it left in the region. “The [marine segment] earnings growth has primarily resulted from a heightened focus on segmenting and satisfying demand that represents greater value to the customer, [and] concentrating on enhancing fuel supply capabilities in specific geographies where customers are experiencing supply challenges,” Chairman and CEO Michael Kasbar said on the company’s earnings call. Core resale margins remain ‘solid’ in Q2 while the continued focus on cost management has contributed to a reduced operating expense ratio in both Q1 and Q2, Kasbar added. “Looking ahead to the third quarter, we expect a sequential increase in marine gross profit, principally due to seasonal activity, which we have now experienced for the past few summers,” World Fuels Services’ Executive Vice-President and CFO Ira Birns said during the call.WELL PLACED FOR IMO 2020. “We maintain a cautiously optimistic view regarding

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The IMO will cap global sulfur content in marine fuels at 0.5% starting January 1, 2020, compared with the current 3.5%. This applies outside the designated emission control areas where the limit is already 0.1%. Shipowners will have to either burn cleaner, more expensive fuels or install scrubber units for burning high sulfur fuel oil. Not every fuel is going to be available at every location, and there will be some amount of experimentation, perhaps by both buyers and sellers, Kasbar said. “So, I think one of the things we’re expecting is that there is going to be more interaction, there may be more frequent fueling, there’s certainly going to be the market wanting to leverage external expertise and we certainly have a lot of it,” Kasbar said. “We feel like we’re extremely well prepared and well positioned, and certainly by virtue of our land business, and sourcing distillate and then with our Kinect business, in terms of, LNG, we’ve got a tremendous amount of internal capability,” Kasbar added. CREDIT FACILITY EXPANSION Meanwhile, the company this week said in a statement that it had increased its overall unsecured credit facility to $1.8 billion and extended the term of the credit facility to July 2024. This compares to its previous facility, which stood at $1.6 billion. The expansion and extension of the credit facility comes at a time when the maritime industry is set to face increased costs due to the IMO 2020 rule and the larger bunker traders are expected to play a more prominent role in providing extra credit lines to shipowners as well as operators. Headquartered in Miami, Florida, World Fuel Services is a global energy management company providing solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries.

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NEWS

General cargo ship AMIRA JOY ran aground while entering Chioggia Italy, Adriatic sea, in the afternoon Jul 25, veering off fairway. Attempts to refloat the ship with assistance of two port tugs failed. AMIRA JOY arrived from Turkey with cargo of clam shells. Jul 26 0430 UTC: Still aground, resting on sandy bottom, no damages reported, waiting for high water. General cargo ship AMIRA JOY, IMO 9558452, dwt 8500, built 2008, flag Panama, manager Myanma Five Star Line (AIS).

IMO/Chile agreement to expand capacity building in the Caribbean “Building good maritime security in the Paciﬁc”

MO has signed a new Memorandum of Understanding (MoU) with the Republic of Chile, to extend Chile's technical assistance to countries in the Caribbean region, in addition to Latin America. The MoU on Technical Cooperation, signed by the Directorate General of Maritime Territory and Merchant Marine (DIRECTEMAR) of the Republic of Chile, replaces earlier MoUs (signed in 2002 and 2005) and strengthens the collaboration between IMO and DIRECTEMAR for the provision of technical assistance in the Latin America and the Caribbean Region. This will particularly support the provision of experts (including Spanish-speaking experts) to deliver training in Latin America and the Caribbean. Examples of IMO training supported by DIRECTEMAR include the provisions of expert for a needs assessment mission in Colombia for the effective implementation of its search and rescue plan (April 2019); a regional workshop to raise awareness of the UN 2030 Agenda and ensure that the maritime sector is fully integrated into the United Nations Development Assistance Framework (UNDAF), which is the main platform for the collaboration of the UN system at country level (Chile, October 2018, pictured below)); the provision of an expert for the delivery of a regional workshop on the general principles of drafting maritime legislation to implement IMO Conventions, to be held in Guayaquil, Ecuador (5-9 August 2019); and a planned workshop on the ratification and implementation of IMO's air pollution and energy efficiency regulations (MARPOL Annex VI), to be held in Viña del Mar, Chile (30 September-2 October 2019). The new MoU with DIRECTEMAR will help ensure further similar activities are supported in the Caribbean, as well as in Latin America.

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The MoU was signed (pictured, top)) by Vice-Admiral Ignacio Mardones Costa, Director General of DIRECTEMAR and Mr. Juvenal J.M. Shiundu, Acting Director, Technical Cooperation Division, IMO, at IMO Headquarters in London, United Kingdom (18 July). The signing ceremony was attended by representatives of the following countries: Antigua and Barbuda, the Bahamas, Barbados, Belize, Chile, France, El Salvador, Guyana, Jamaica, the Netherlands, Panama, Saint Lucia and Trinidad and To b a g o , a n d t h e t e r r i t o r i e s o f A r u b a ( t h e Netherlands), Bermuda (United Kingdom), Bonaire, Sint Eustatius, Saba (the Netherlands), French Guiana (France), Montserrat (United Kingdom) and Sint Maarten. Good maritime and port security is the enabler for maritime and economic development through maritime trade. It can be taken for granted when it works, but maintaining good security is essential. To support this, IMO and the Paciﬁc Community, in collaboration with the Government of Vanuatu, are holding a Regional Maritime Security Workshop in Port Vila, Vanuatu (22-25 July).

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Liability regime training in Costa Rica

NEWS for effective and coordinated implementation of maritime security at the national level. The workshop will include testing a a verification manual - a new tool for officials of the Designated Authorities under the ISPS Code. Guest speakers from the US Coast Guard International Port Security Programme, as well as Australia's Maritime Safety Agency and Maritime New Zealand are also at the workshop. The IMO instruments covering liability and compensation for damage, such as pollution, caused by ships are a key element in the global treaty regime adopted by IMO. A national workshop in Costa Rica (16-18 July) provided an opportunity for national participants to learn about the relevant treaties, their principles and implementation, with an additional focus on compensation and claims.

The workshop coincides with IMO Secretary General Kitack Lim's visit to Vanuatu, Fiji and Australia - the first time an IMO Secretary General visits the South Pacific (photos). The regional workshop brings together Heads of Designated Authorities and port facility security officers (PFSOs) from 14 countries to discuss ways to cooperate at the national level to provide the necessary support required in order to take ownership of the implementation and compliance with the provisions of IMO's maritime security regime, including SOLAS Chapter XI-2 and the International Ship and Port Facility Security (ISPS) Code. Several port operators are also attending. Participants will improve their knowledge and to perform maritime security duties, as well as acquiring the knowledge and skills to train others with similar responsibilities.

The course covered the International Convention on Civil Liability for Oil Pollution Damage (CLC),and the International Fund for Compensation for Oil Pollution Damage (FUND) regime; the Convention on Limitation of Liability for Maritime Claims (LLMC); the International Convention on Civil Liability for Bunker Oil Pollution Damage and the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS). To date, Costa Rica is only party to the CLC convention. The workshop was organized by IMO in collaboration with IOPC Funds, P&I Clubs and Prefectura Naval Argentina, and is being implemented by IMO's Regional partner The Central American Commission of Maritime Transport (COCATRAM). It was hosted by the Maritime Authority of Costa Rica.

The first two days aim to provide PFSOs with essential knowledge, confidence and tools to be able to address nonconformities that are commonly identified during security audits and assessment. This includes carrying out of risk assessments, coordinating drills and exercises, and delivering security training. The last two days bring together the Heads of Maritime Administrations and PFSOs to review implementation of maritime security instruments in the region, share best practices and experiences, promote cooperation between port and designated authorities, identify challenges and propose solutions

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NEWS

Shri Dharmendra Pradhan Holds Discussions With Minister Of Energy, Industry And Mineral Resources Of Saudi Arabia To Further Enhance Bilateral Hydrocarbon Cooperation

hri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel held a meeting today in New Delhi with H.E. Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia and

hriPradhan discussed about the c u r r e n t developments in the global oil & gas markets, and raised Indiaâ&#x20AC;&#x2122;s concerns on the recent increase in Asian Premium, disturbances in the Strait of Hormuz impacting the movement of oil / LNG tankers and the decision of OPEC

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Chairman of Saudi Aramco. Both the Ministers discussed about further enhancing India-Saudi Arabia hydrocarbon cooperation to become a strong pillar of the existing overall strategic partnership between the two

countries. Minister Al-Falih emphasized the need for capitalizing on the growing momentum in bilateral hydrocarbon cooperation.

Plus members on extending production cuts, leading to oil price volatility. He also highlighted the adverse impact that these developments are having on the Indian economy. He also highlighted the need for responsible and reasonable crude pricing in the larger interest of both consuming & producing countries

AUGUST 2019

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INSURANCE FOR GAS CYLINDER BLAST VICTIMS

NEWS

Oil Marketing Companies (OMCs) take comprehensive Insurance Policy under ‘Public Liability Policy for Oil Industries’ to provide speedy relief to the affected persons in case of LPG related accidents. It covers all LPG consumers registered with OMCs. Public Liability Insurance Policy taken by OMCs covers losses arising out of accidents where LPG is the primary cause of fire and not for cases where the primary cause of fire is other sources/reason wherein LPG cylinders gets engulfed and subsequently burst. Currently, the policy provides for the following: (I) Personal accident cover of Rs. 6,00,000/- per person in case of death. (ii) Covers medical expenses of Rs. 30 lakh per event with maximum of Rs. 2,00,000/- per person. (iii) In case of property damage, it covers maximum of Rs2,00,000/- per event at authorised customer’s registered premises. OMCs provide Safety cum Insurance leaflet in Hindi/English and in vernacular languages, with pictorial representation to the customers. Information pertaining to Public Liability Insurance Policy is also available in public domain on the OMC’s websites. Further, regular safety clinics and LPG panchayats are organised by OMCs to create awareness on safe use of LPG, conservation practices and information about insurance among the consumers.

Following are details of total number of LPG accidents, deaths reported and compensation paid in the last three years where LPG leakage is the primary cause of ﬁre: Year

Accident

Fatalities

Amount of compensation (Rs. crore)

2016-17

929

267

22.83

2017-18

1151

292

17.39

2018-19

983

254

7.10*

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NEWS Cocaine found in unusual place – in cargo hold loaded with ore.

Mexican law enforcement agency on Jul 28 reported cocaine bust on board of US bulk carrier UBC SAVANNAH, docked at Altamira port, Mexico, Gulf of Mexico. The ship arrived from Barranquilla, Colombia, on Jul 23, and was thoroughly checked, 227 packages weighing 225 kilos were found in rather unusual place, in cargo hold, buried in cargo of ore. No news on crew complicity, hopefully there’s none. Bulk carrier UBC SAVANNAH, IMO 9220976, dwt 31923, built 2000, ﬂag Cyprus, manager UNITED BULK CARRIERS USA.

“Bulk carrier severely damaged, probably while berthing, Greece”

24780, built 1998, ﬂag Marshall Islands, manager ALLSEAS INC, Greece (EQUASIS).

Bulk carrier ERMOUPOLIS spotted severely damaged with hull cuts and breaches in forecastle portside area, above waterline, on Jul 29 at Larymna port, Phthiotis, Greece. The ship has just arrived from Guatemala. According to track, the ship most probably, was damaged while berthing. Bulk carrier ERMOUPOLIS, IMO 9197088, dwt

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NEWS

Ferry breached in Nynashamn, Sweden

erry VISBORG allided with pier in Nynashamn, Sweden, at around 1200 UTC Jul 29, and reportedly, sustained hull breach in stern area. Ship’s scheduled trips to Visby were cancelled, VISBORG is to undergo repairs. As of 1400 UTC,

VISBORG remained docked at Nynashamn. assenger ro-ro cargo ship VISBORG, IMO 9763655, GT 32447, built 2018, ﬂag Sweden, operator Destination Gotland AB.

Seafarers caught in global storm, with nobody to help I’ve been informed on oil spill which occurred in Singapore waters on Jul 25-26, involving the ship, operated by a well-known, major, Asian company. An insider who alerted me, asked for anonymity, quite an understandable precaution in nowadays era of strengthening persecution of anyone who dares to defy ruling agenda. It is not spill what’s most important in this story, it’s the roots of it. According to insider information, quality seafarers are ﬂeeing the company, not because of salaries, which are quite high, but because of intolerable, and indeed, risky and toxic crewing management practices. Seafarers are overburdened with ever

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growing paper work, and with that, they’re responsible for each and any mishap and accident, they’re guilty if something happens, and they’re to be punished, leaving company clean and innocent. Some two months ago, my friend, an engineer

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NEWS General cargo ship ﬁre, Ambarli, Turkey

ire erupted in cargo hold of a general cargo ship sustain damages. ICDAS 5 berthed at Ambarli, Marmara sea, General cargo ship ICDAS 5, IMO 9829916, dwt Turkey, on Jul 28. The ship reportedly, is loaded 15621, built 2019, ﬂag Turkey, manager ICDAS CELIK with scrap. Fire engines took ﬁre under control in some ENERJI TERSANE, Istanbul. 30 minutes, no injures reported, but the ship said to

ussian reefer troubled in South Atlantic

Reefer SOLARTE was caught in rough weather off Namibia coast in South Atlantic, while en route from Walvis Bay to Beira Mozambique with cargo of fish, crack in hull in cargo holds area developed on Jul 23, followed by water ingress. According to Lloyd’s report, crack emerged on Jul 24. Reefer interrupted her voyage to call Cape Town, for inspection and repairs. According to Lloyd, tug was contracted for towage. According to track, reefer reached Cape Town sailing most of the way under own power, she was berthed on Jul 26. Reefer SOLARTE, IMO 8210285, dwt 3919, built 1982, flag Moldova, manager Arctic Shipping LLC, SPetersburg.

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Correction: Explosion on board of bulk carrier left crew with multiply fractures VIDEO Correction: Local sources identiﬁed troubled vessel as CAPTAIN D (IMO 9744752), but according to P&I information, accident took place on board of bulk carrier NIKI: Bulk carrier NIKI, IMO 9015591, dwt 101648, built 2006, ﬂag Liberia, manager LARUS SA, Greece.

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working in European major tanker company, shared with me his, put it mildly, surprise, when on boarding the ship after leave, he was acquainted with reports on recent accident, and had to sign a paper, making him responsible for any injury he may suffer in similar circumstances. He was informed, you see. That is, his safety is his responsibility only, not company’s. If anything happens, he signed a document, relieving company of any liability, he is to blame, he is to carry all costs and consequences.There’s another new trend gathering way nowadays – seafarers are pressured into becoming whistleblowers, kind of snitches society membership, embracing whole crews. In general, working environment in shipping has become, during last two decades, quite toxic for professionals, from seafarers to honest, hard working private ship owners. Crews have nobody to ask, nowhere to turn to, in search of justice and help. If they work on a ship belonging to private owner, they receive quick response and help, when encountering trouble. If they work in a major company via manning agency, they’re helpless and vulnerable to any trouble. They’re on their own, and they’re to be blamed in almost any circumstances. New business culture transformed big ship owners into faceless, inhuman monsters, a mesh of owners, managers, and third-party contractors. They exist in artificially created legal bubble (thanks to international maritime bodies), making them immune to almost any kind of trouble, and freeing them from any responsibility towards crews. In increasingly socialistic global economy, culture of CEOs has become one of hallmarks of modern business landscape. Soviet-style CEO management is defined by total lack of responsibility towards anybody and anything, except anonymous directors or shareholders boards. Their main care is their career and income. Of course, one of the main conditions of their successful career building is readiness to quickly respond, and support, any new trend, any new agenda, propagated by globalism leaders. They can’t go against mainstream, however ruining and harmful it may be for the company and for crews.

NEWS on and on goes the list with problems, which are either totally fake (like gender gap), or negligent, for the majority of seafarers. To put it short, those institutions aren’t the solution of any real problem, they’re part of the problem. And of course, seafarers can’t turn to trade unions. There are eﬀectively, no trade unions left, except one monster spider, covering by its’ poisonous net nearly all of global shipping. By the way, I believe the future of trade unions lies in internet, in forms of diverse and independent from any international or governmental body, online unions of mutual help and protection. I’m pretty sure, that ITF, its’ bosses (ILO, UN) and its’ minions (national aﬃliates), have no future, they’re doomed, by sheer anachronism of their nature and practices. With all that said, I can’t but add one more thing – shipping professionals must defend themselves, they should start doing it long time ago. They should, for starters, establish their own stage, to voice their real concerns and problems, and discuss probable solutions.

Ro-ro disabled by fire, returned to Marseille Ro-ro ship MARFRET NIOLON was disabled by fire in engine room early in the morning Jul 28 in Mediterranean W of Marseille. Fire was extinguished by crew, but disabled ship required assistance. SAR tug ABEILLE FLANDRE (IMO 7710513) was tasked with assisting MARFRET NIOLON to get back to Marseille. According to track, the ship arrived at Marseille in the afternoon Jul 28, probably under own power, escorted by SAR tug. Ro-ro cargo ship MARFRET NIOLON, IMO 8912388, GT 7395, built 1991, flag Luxembourg, manager MARFRET SA, France.

Seafarers can’t turn to social and charity institutions, either. Nowadays, there are hordes of NGOs, Funds, Foundations and Associations, whose main and only goal is care for seafarers, protecting them from evil shipping environment, impersonated by private ship owners. They protect seamen from any problem and woe, whether real or fake, except from those which are on top of seamen woes list. Gender gap, mental health, abandonment, rest/work hours, piracy stress,

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NEWS

Compressor exploded on bulk carrier in the afternoon Jul 26, off Imbituba port, Brazil, inflicting severe injures, including multiply fractures, to a Filipino crew. The ship was anchored off Imbituba, waiting for loading. Injured crew was medevaced by IMBITUBA port rescuers, and transferred to hospital, his condition said to be bad.

Baltic index dips on easing panamax rates

The Baltic Exchange’s main sea freight index fell to a more than two-week low on Monday, weighed down by weaker rates for panamax vessels. The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 0.8%, or 15 points, to 1,922 points, its lowest since July 12. The capesize index rose 13 points, or 0.4%, to 3,660 points.

transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, rose $72 to $27,217. The panamax index fell 59 points, or nearly 3%, to its lowest in two weeks at 2,050 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $470 to $16,399. The supramax index fell 9 points to 996 points.

Average daily earnings for capesizes, which typically

China Feasts on Record Saudi Crude Imports After Sanctions Hit Iran

hina has tapped Saudi Arabia for a record volume of crude as the world’s biggest exporter plugs a shortage from sanctions-hit Iran.

Asia’s biggest buyer shipped 7.72 million metric tons of crude, or 1.89 million barrels a day, from Saudi Arabia last month, according to data from China’s General Administration of Customs. Shipments from the OPEC producer made up almost a ﬁfth of its total oil purchases in June and was 64% higher than the previous month. Imports from Iran fell to the lowest since May 2010.

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NEWS

Samsung Heavy develops lithium-ion battery power system for ships

amsung Heavy Industries Co., a major shipbuilder in South Korea, said Monday it has developed a lithium-ion battery power system for ships.

storage system for ships.

The system, jointly developed with local battery manufacturer Samsung SDI Co., earned a type approval from Norway’s renowned classification society DVL-GL, becoming the first local shipbuilder to do so, according to the shipbuilder. Samsung Heavy said its lithium-ion battery system can control power generators on the ships in an efficient way and will reduce fuel costs, in addition to its environment-friendly feature. Samsung Heavy said its battery system can be applied to any type of vessels. The company said it is also working with Finnish power equipment maker Wartsila to develop energy

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AUGUST 2019

NEWS FONASBA quality standard now covers 35 countries, 500 companies

ONASBA’s Quality Standard (FQS), the only quality mark designed by, and specifically for, ship agents and ship brokers, reached another milestone this month when the number of companies approved to the Standard exceeded 500. In recent months, its coverage amongst FONASBA member countries has expanded steadily, with 35 now covered following the recent accreditation of the National Association of Maritime Agencies, FONASBA’s member association in Russia, and Lion Shipping of Romania, an Associate member. Coverage is expected to expand further in the coming months as a number of other associations are finalising their criteria ahead of inviting their member companies to apply for approval. The Quality Standard has been backed since its launch in 2008 by the major ship owning organisations, BIMCO, INTERCARGO and INTERTANKO, all of whom have recently reaffirmed their support for the initiative, leading to increased awareness amongst owners and operators. Members also recognise the important role of charterers in requiring a high standard of service provision in ship agency and ship broking. The Standard provides charterers with the option to identify and nominate ship agents who adhere to those higher standards by gaining approval under the FQS. A number of principals have already gone further in supporting “quality” and actively seek FQS approved ship agents to handle their port calls.

approved companies across the breadth of the 62 countries covered by FONASBA. Our actions to further increase awareness and recognition of the value of the Standard amongst the wider shipping industry are also continuing.” The Quality Standard requires ship agents and ship brokers, who first and foremost must be members of FONASBA national associations, to be able to prove that they are adequately resourced, sufficiently wellfounded and committed to the provision of appropriate education and training to staff in order to be able to provide a full range of high quality services to their principals.

Speaking on the occasion of the FQS extending to more than 500 companies, FONASBA President Aziz Mantrach said “Ensuring the provision of highquality ship agency and ship broking services is of vital importance to the international maritime sector and is one of the core aims of FONASBA. Reaching this milestone is a major achievement and we are very proud of all the member associations that have committed to introducing the FQS. We are actively encouraging all our remaining members to introduce it so that we can oﬀer seamless coverage by FQS

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The Discount Rate: Has the Government gone far enough?

NEWS

forum shopping and insurers may find themselves in situations where they will want to focus more than they perhaps have in the past The discount rate is a figure used to help calculate on where proceedings lump sum compensation payments for high value should be taking place. personal injury claims. It reflects the fact that a Claimant will invest a lump sum payment and receive a Essentially this rate change will mean that the level of damages payable on high value claims will fall slightly return on such investment. but damages will continue to be uplifted for The Club published an article in 2018 which focused accelerated receipt on the assumption that Claimants on the ongoing saga of the discount rate, how this rate will invest their damages in a way that will result in is applied and the impact in practice of such a rate (set them losing money. In practice this is not the case. at -0.75% in March 2017) on damages payable in claims for personal injury. he Lord Chancellor last week announced a change in the discount rate following a review under the Civil Liability Act 2018. As of 5 August 2019, the discount rate will increase from -0.75% to 0.25%.

In the recent review, the Government had the opportunity to readdress what many insurers saw as an imbalance between how it is anticipated that Claimants will invest their lump sum personal injury damages awards and how they actually invest them. There is a common acceptance among many in the industry that the current rate of -0.75% has resulted in Claimants being overcompensated. There was no doubt therefore that the review, the first of its kind since the introduction of the Act, would produce an increase in the discount rate. However, in many insurers opinions, this result has not readdressed the ongoing imbalance and therefore is seen as an opportunity missed. It was anticipated that the discount rate would increase to somewhere between 0% and +1% This rate applies in England & Wales only and will not be reviewed again for five years. A similar review process is currently being undertaken in Scotland with a predicted rate of -0.25% there too. In Northern Ireland the discount rate is currently +2.5%. As part of the recent review, there was also the possibility of a split rate, reflecting the difference in likely returns over relatively longer and shorter periods. However, this was not pursued. In contrast, earlier this year The States Assembly approved a draft law in Jersey which set a rate of +0.5% in respect of losses for a period of up to 20 years and a rate of +1.8% for losses over a longer period. This is the first time that Jersey will have had a statutory discount rate. Guernsey is likely to follow suit. Given this disparity, there is increased potential for

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Example Taking example from our previous article, the 30 year old engineer seriously injured during his employment at sea, who will not be able to return to sea but still able to work ashore using his relevant skills and knowledge but with a decrease in his net annual income of £10,000, and an expected retirement age of 60, his loss will now be calculated as follows; Future loss of earnings using the previous -0.75% discount rate Multiplicand: £10,000 Multiplier: 32.84 TOTAL: £328,400 Future loss of earnings using the new -0.25% discount rate Multiplicand: £10,000 Multiplier: 30.44 TOTAL: £304,400 This represents a decrease of only just over 7% to this one element of future loss. As advised previously, in very serious injury cases there are likely to be several elements of the claim to which the multiplicand/multiplier formula will apply. Whilst a move in the right direction it is felt that the Government has not gone far enough.

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AUGUST 2019

NEWS

The merger of the two major shipping enterprises in South Korea wants to transform the shipbuilding industry.

won Oh-kap, chief executive of the newly established South Korean shipbuilding company (Korea Shipbuilding & Offshore Engineering,KSOE, said recently that he needs to be prepared for the transformation of the thinking mode of the Korean shipbuilding industry. KSOE is a secondary holding company established by Modern heavy Industry to merge Daewoo Shipbuilding. On June 3, KSOE applied for registration in the Ulsan District Court and appointed Vice Chairman of Hyundai heavy Industry, Yu Wujia, as its new chief executive officer. This is the first step in Hyundai’s acquisition of Daewoo Shipbuilding procedures. According to the plan of Modern heavy Industry, KOSE will be headquartered in Seoul and will lead four shipyards: modern heavy Industry, Daewoo Shipbuilding, Modern Sanhu heavy Industry and Modern Weipu Shipbuilding. Modern heavy Industry hopes to train it into a global mechanical equipment engineering company, KOSE will be committed to research and development (R / D), significantly improve the level of technology.

City, South Gyeonggi Province. He made it clear that KSOE will spare no eﬀort to support research and development, which is the cornerstone of the future of South Korea’s shipbuilding industry. On the management of its four shipyards, Wu Wujia pointed out that while performing its duties, KSOE will ensure management autonomy and ensure the development of its subsidiaries. The top ﬁve hopes that KSOE will do everything it can to weather the recession in South Korea’s shipbuilding industry. He believes that KSOE’s task is to maintain jobs by winning orders for environmentally friendly ships and future smart ships and must become a market leader. Wu Wujia said that KSOE is responsible for the future of South Korea’s shipbuilding industry. “if advanced technology and quality are ensured, stable orders can be obtained no matter how the business environment changes,” he said. It is the mission of the KSOE to protect the ecological environment of the Korean shipbuilding industry by maintaining employment stability and to undertake the future of the Korean shipbuilding industry. ”

“Shipbuilding will be transformed into a technologyoriented industry, rather than a labour-intensive industry,” he said in an email to KSOE executives and employees. ” The reason is that technology is critical to surviving the competition, China has cheaper labour costs, Russia and Saudi Arabia are rich in natural resources, and these countries are eager to enter the shipbuilding industry. According to the top ﬁve, KSOE will focus on R & D investment. KSOE, which currently has 500 executives and employees, will continue to employ staﬀ in the future, with the goal of establishing a global R & D center with 5000 people in (Pangyo), Banqiao

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AUGUST 2019

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NEWS following remarks: Timing between proposal and implementation date The global shipping industry notes that the period between the publication of the proposed modiﬁcations and their date of implementation is six months, which is in line with requests made by the industry during previous toll consultations.

he Panama Canal Authority (ACP) is conducting a public consultation on a proposal to adjust the Panama Canal tolls for containerships, vehicle carriers, dry bulk carriers, tankers, chemical carriers, LPG and LNG vessels, passenger vessels and small vessels. The proposed new toll charges are anticipated to enter into eﬀect on 1 January 2020, the same day as the IMO ‘Global Sulphur Cap’ regulation. For your information, please ﬁnd below the submission from the global shipping industry – the International Chamber of Shipping (ICS), the Asian Shipowners’ Association (ASA) and the European Community Shipowners’ Associations (ECSA) – to the consultation. ICS, ASA and ECSA are the principal global and regional trade associations for shipowners and operators, representing all sectors and trades. COMMENTS BY THE GLOBAL SHIPPING INDUSTRY The International Chamber of Shipping (ICS), the Asian Shipowners’ Association (ASA) and the European Community Shipowners’ Associations (ECSA) are the principal global and regional trade associations for shipowners and operators, representing all sectors and trades including containership operators, tanker operators and dry bulk carriers, as well as specialised trades such as LPG/LNG carriers, chemical carriers, passenger vessels and vehicle carriers. The membership of ICS, ASA and ECSA combined represents more than 90% of the world’s merchant tonnage. As regards the ongoing consultation to modify the Panama Canal tolls, the global shipping industry sincerely appreciates the opportunity to formally comment on the proposed toll changes with the

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The above notwithstanding, the global shipping industry considers the six-month prior notice period to be an absolute minimum and kindly requests that the ACP adopt a twelve-month prior notice period instead. As a consequence of the shorter (six-month) notice, shipping companies might still have to bear any additional costs arising from new toll charges, until the expiry of existing contracts with their respective clients. A longer (twelve-month) notice period would provide shipping companies and operators with sufficient time and room to manoeuvre in terms of negotiating any future contractual agreements, which are likely to be impacted by changes to future toll charges. As customers of the Canal, shipowners and operators would also benefit considerably if the ACP were to provide a long term sustainability plan concerning any future modifications to Canal tolls. This would help the industry to factor in the proposed adjustments more effectively. Timing for implementation of proposed new toll charges The proposed timing for implementation of the new toll charges is also significant for the global shipping industry, noting that they are anticipated to enter into effect on the same day as the IMO 2020 ‘Global Sulphur Cap’ regulation. The legal framework of this important IMO regulation will require merchant ships worldwide to use fuel with a sulphur content of 0.50 percent or use alternative mitigation technologies, the collective compliance costs of which are expected to range between US $30 billion per year and US $50 billion per year. Fuel is already by far shipping’s greatest cost and the significant increase in bunker costs that is anticipated as a result of the switch to low sulphur fuels, as required by the IMO regulation, will have

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NEWS profound effects on the economics of shipping and the future structure of the industry. This is compounded further by uncertainty surrounding worldwide availability of compliant fuels, meaning that ship operators have so far been unable to properly budget for the likely spike in fuel costs or inform their respective customers about the extent of potential increases. As a consequence of this uncertainty, an additional bunker price spike is also anticipated during the initial period of implementation. The global shipping industry is therefore very concerned that the implementation of the new toll charges on 1 January 2020 – the same day that the IMO regulation takes effect – will have a negative impact not only on shipowners and operators, but also on world trade. This is especially pertinent at a time of heightened concerns about several issues affecting the industry, including: • Higher insurance premiums due to rising geopolitical instability in some key regions; • Increasing economic uncertainty due to proliferation of protectionist trade measures worldwide; and • Ongoing escalation of trade disputes and increase in trade tariffs between major trading nations. These concerns are expected to continue to have a negative impact on the global shipping industry in 2020. For these reasons, ICS, ASA and ECSA request that the ACP at the very least postpone the timing for implementation of the proposed new toll increases by at least six months (June 2020).

very challenging economic conditions under which the global shipping industry is currently operating, noting that the economic sustainability of the Panama Canal is inextricably linked to that of shipowners and operators that use the Canal. While appreciating that charges for containerships and general cargo ships will remain unchanged, ICS, ASA and ECSA are concerned about some of the proposed toll increases for other sectors such as dry bulk (iron ore), tankers, chemical tankers, LPG & LNG carriers, PCC & ROROs and cruise ships. It appears that the proposed new tolls for the above mentioned segments would be increased by 5-15%, which could significantly undermine future trade growth. In this respect, the global shipping industry suggests the following: • There should be no further distinction in toll charges between Panamax and Neopanamax vessels. • The specifications of vehicle carriers using the Neopanamax and Panamax locks are very similar. A Neopanamax vessel could in some cases have a shorter Length overall (LOA) and shallower draft than a Panamax vessel. • The market remains difficult for the segments facing proposed toll increases (e.g. dry bulk carriers) and any such increase would exacerbate the already volatile operating conditions. • Due to the shortage of cargoes and the need to reposition ships, the global shipping industry would urge extra caution against toll increases for ships in ballast conditions. ACP in advance for giving our comments, requests and suggestions their due consideration.

This would allow shipping companies and operators to adequately plan and adjust their commercial activities accordingly. Support for economic sustainability of the Panama Canal The global shipping industry continues to be fully supportive of the need for economic sustainability of the Panama Canal, as one of the most important Canals in the world. The above notwithstanding, it is equally important that the ACP fully consider and take account of the

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AUGUST 2019

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NEWS Frangou Expects Boost in Proﬁts for Navios Maritime Containers L.P. After 62% Rise in Rates for the Baby Panamax Container Segment

avios Maritime Containers L.P., a growth vehicle dedicated to the container sector of the maritime industry, today reported its ﬁnancial results for the second quarter and six months ended June 30, 2019. Angeliki Frangou, Chairman and Chief Executive Oﬃcer, stated, “I am pleased with the results for the second quarter of 2019, in which Navios Containers reported $33.7 million in Revenue, $12.7 million of

HIGHLIGHTS RECENT DEVELOPMENTS Vessel Acquisitions On April 23, 2019, Navios Containers took delivery of the Navios Constellation, a 2011-built 10,000 TEU containership. The vessel was acquired from an unrelated third party for a purchase price of $52.5 million. The containership is chartered out at a net rate of $26,325 per day until November 2020 and $27,300 per day until October 2021. In July 2019, Navios Containers converted the obligation to purchase a 2011-built 10,000 TEU containership, into an option, expiring on March 31, 2020 for $3.0 million future payment. The agreement grants Navios Containers the option and the right of ﬁrst refusal to acquire the vessel at terms mutually agreed with the seller. The containership is chartered out at a net rate of $26,325 per day until July 2021 and $27,300 per day until June 2022.

EBITDA and around $450,000 of Net income.” Angeliki Frangou continued, “With the acquisition of the Navios Constellation, a 2011-built 10,000 TEU containership, NMCI owns a ﬂeet of 29 containerships, of which 25 are baby panamax and four are new panamax (above 8,000 TEU). Given our low breakeven and the 62.0% increase in charter rates for the baby panamax (from the ﬁrst quarter low of $8,100 per day) we are positioned well for the remainder of 2019.” of $1.7 million each, together with a $13.5 million balloon payment on the last repayment date. The facility matures in June 2024 and bears interest at LIBOR plus 300 bps. The Company has no bank debt maturities until 2022

Fleet Employment Navios Containers owns a fleet of 29 vessels, totaling 142,821 TEU. The current average age of the fleet is 11.0 years (See Exhibit II). As of July 30, 2019, Navios Containers has chartered-out 75.0% and 22.8% of available days for the remaining six months of 2019 and for 2020, respectively (excluding index-linked charters), which are expected to generate $61.4 million and $50.8 million in revenue, respectively. The average expected daily contracted charter-out rate for the fleet is $15,345 and $20,934 for the remaining six months of 2019 and for 2020, respectively, and the

Financing Developments Refinancing of existing facilities of seven containerships On June 26, 2019, Navios Containers entered into a new credit facility in order to refinance the outstanding credit facilities of seven containerships with an outstanding balance of $36.7 million. On June 27, 2019 the Company drew $48.8 million under this facility. The facility is repayable in 20 consecutive quarterly installments, the first four in the amount of $2.0 million each and the remaining 16 in the amount

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AUGUST 2019

total expected available days for the remaining six months of 2019 and for 2020, are 5,336 days and 10,614 days, respectively..

NEWS Earnings Highlights

EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as a substitute for Navios Containers’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). See Exhibit I under the heading, “Disclosure of NonGAAP Financial Measures,” for a discussion of EBITDA of Navios Containers and a reconciliation of such measure to the most comparable measures calculated under U.S. GAAP. On November 30, 2018, in connection with our listing on the Nasdaq Global Select Market, we converted into a limited partnership at a ratio of one common share of Navios Maritime Containers Inc. for each common unit of Navios Containers. Revenue for the three month period ended June 30, 2019 was $33.7 million, as compared to $31.5 million for the same period during 2018. The increase of $2.2 million was due to the increase in the number of vessels operating during the three month period ended June 30, 2019 and the resulting increase in the number of available days from 2,012 for the three month period ended June 30, 2018, to 2,568 for the three month period ended June 30, 2019, offset by the decrease in time charter rates reflecting primarily the expiration of certain legacy time charter contracts. TCE per day declined from $15,308 for the three month period ended June 30, 2018 to $12,594 for the same period during 2019, primarily as a result of the expiration of contracts between the two periods. Net income for the three months ended June 30, 2019 was $0.4 million compared to $4.5 million for the same period in 2018. The $4.1 million decrease in net income was mainly due to a: (i) $4.0 million decrease in EBITDA; (ii) $2.3 million increase in interest expense and finance cost, net related to the financing of new vessels; and (iii) $0.6 million increase in amortization of deferred drydock and special survey costs, in each case, relating to the increase in the size of the fleet. This overall decrease of $6.9 million was partially offset by a $2.8 million decrease in depreciation and amortization expenses, relating mainly to the lower amortization of intangible assets. EBITDA for the three months ended June 30, 2019 decreased by $4.0 million to $12.7 million as

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AUGUST 2019

compared to $16.7 million for the same period in 2018. The decrease in EBITDA was primarily due to a: (i) $4.0 million increase in management fees mainly due to the increase of the available days from 2,012 days for the three month period ended June 30, 2018, to 2,568 days for the three month period ended June 30, 2019; (ii) $0.9 million increase in general and administrative expenses also mainly related to the growth in our fleet; (iii) $0.6 million increase in time charter and voyage expenses; (iv) $0.5 million increase in other expense, net; and (v) $0.2 million increase in direct vessel expenses. This overall resulting decrease of $6.2 million was partially offset by a $2.2 million increase in revenue described above reflecting the growth in the number of vessels operating in the fleet during the period. Revenue for the six month periods ended June 30, 2019 was $65.5 million, as compared to $61.4 million for the same period during 2018. The increase of $4.1 million was due to the increase in the number of vessels operating during the six month period ended June 30, 2019 and the resulting increase in the number of available days from 3,919 for the six month period ended June 30, 2018, to 5,039 for the six month period ended June 30, 2019, offset by the decrease in time charter rates reflecting primarily the expiration of certain legacy time charter contracts. TCE per day declined from $15,284 for the six month period ended June 30, 2018 to $12,409 for the same period during 2019, primarily as a result of the expiration of these contracts between the two periods. Net income for the six months ended June 30, 2019 was $0.5 million compared to $7.5 million for the same period in 2018. The $7.0 million decrease in net income was mainly due to a: (i) $7.6 million decrease in EBITDA; (ii) $4.6 million increase in interest expense and finance cost, net related to the financing of new vessels; and (iii) $1.1 million increase in amortization of deferred drydock and special survey costs, in each case, relating to the increase in the size of the fleet. This overall resulting decrease of $13.3 million was partially offset by a $6.3 million decrease in depreciation and amortization expenses, relating mainly to the lower amortization of intangible assets. EBITDA for the six months ended June 30, 2019 decreased by $7.6 million to $24.8 million as compared to $32.4 million for the same period in 2018. The decrease in EBITDA was primarily due to: (i) an $8.0 million increase in management fees

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mainly due to the increase of the available days from 3,919 days for the six month period ended June 30, 2018, to 5,039 days for the six month period ended June 30, 2019; (ii) a $1.8 million increase in general and administrative expenses also mainly related to the growth in our fleet; (iii) a $1.5 million increase in time charter and voyage expenses; (iv) a $0.2 million increase in other expense net; and (v) a $0.2 million increase in direct vessel expenses. This overall resulting decrease of $11.7 million was partially offset by $4.1 million increase in revenue described above reflecting the growth in the number of vessels operating in the fleet during the period

NEWS when Iranian commandos seized a British-ﬂagged tanker in the Strait of Hormuz, the world’s most important waterway for oil shipments. That came two weeks after British forces captured an Iranian oil tanker near Gibraltar suspected of violating European Union sanctions on Syria. Earlier this month, three Iranian vessels tried to block the passage of a BP-operated tanker through the Strait of Hormuz but withdrew after warnings from a British warship. Washington, which has by far the strongest Western naval contingent in the Gulf, on July 9 proposed stepping up eﬀorts to safeguard the Strait of Hormuz.

BP has no plans to take its tankers through Hormuz BP has not taken any of its oil tankers through the Strait of Hormuz since a July 10 attempt by Iran to seize one of its vessels, the British company’s Chief Financial Oﬃcer Brian Gilvary said on Tuesday. The oil and gas company has no current plans to take any of its own vessels through the strait, Gilvary said, adding that BP is shipping oil out of the region using chartered tankers. “We will continue to make shipments through there but you won’t see any BP-ﬂagged tankers going through in the short term,” he said. Gilvary was speaking as the company reported better than expected second-quarter earnings due to a strong increase in oil and gas production. Tensions spiked between Iran and Britain this month

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Diana Shipping Inc. Reports Net Loss of $1.3 Million

iana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, reported a net loss of $1.3 million and net loss attributed to common stockholders of $2.7 million for the second quarter of 2019, including a $2.8 million impairment loss. This compares to net income of $2.0 million and net income attributed to common stockholders of $0.5 million reported in the second quarter of 2018. Time charter revenues were $55.4 million for the second quarter of 2019, compared to $53.4 million for the same period of 2018. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter and was partly oﬀset by decreased revenues due to the sale of two vessels in December 2018 and three vessels in the ﬁrst half of 2019

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AUGUST 2019

NEWS

Ultra Large Container Ship disabled, anchored off Piraeus Container ship MCS LONDON reportedly suffered engine failure while leaving Piraeus, Greece, in the afternoon Jul 30. The giant ship was taken to anchorage to fix problem and undergo inspection, as of 0400 UTC Jul 31 she was still at anchor. Next port of call is Suez. Container ship MCS LONDON, IMO 9606302, dwt 189032, capacity 16652 TEU, built 2014, flag Panama, manager MSC. VLCC HAPPINESS I, to Khor Fakkan UAE according to tugs AIS data, but according to VLCC AIS data, she’s to be towed to Larak Island, Iran, Strai of Hormuz. VLCC HAPPINESS I was towed to Saudi Arabia after mechanical breakdown in early May, see Who knows, what’s all about and what happened in there. Maybe appearance of tugs towing Iranian VLCC Iranian container ship SHAHR E KORD suffered fire was a lucky coincidence, maybe there’s something on upper deck on Jul 25 in southern Red sea, reported else. Lloyd. Fire was extinguished by the crew with the help of tug MISSISSIPPI, which happened to be nearby. Container ship SHAHR E KORD, IMO 9270684, dwt 30078, capacity 2168 TEU, built 2012, flag Iran, Some interesting moments in this story: manager Iran Shipping Lines. SHAHR E KORD left Bandar Abbas on Jul 20, bound for Suez. After fire accident, the ship interrupted her voyage and lingered in the area until Jul 27. On Jul 27 SHAHR E KORD turned back, new port of call being Bandar Abbas. As of 1400 UTC Jul 30, SHAHR E KORD was steaming full speed along Oman coast, heading for Gulf of Oman.

Strange story of Iranian container ship and Iranian VLCC in Red sea

Tug MISSISSIPPI (IMO 9305726), together with tug BALTIC PEARL (IMO 9321598), is towing Iranian

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AUGUST 2019

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Spanish Ship Mendez Nunez Visits Goa

panish Navy Ship Mendez Nunez arrived at Mormugao Port on 01 Aug 19 at 0900 h . Commander Antonio Gonzalez del Tanago de la Strada , the Commanding Oﬃcer of the ship called on Rear Admiral Philipose Pynumootil, Flag Oﬃcer Commanding Goa Area on the same day. A number of activities between Indian Navy and the visiting Spanish warship are planned during the ship's three day stay at Goa. These include a volleyball match, training visit to the ship and INS Hansa in addition to reciprocal receptions.

NEWS

Lamps III helicopter is also carried onboard. The ship has a crew of 24 oﬃcers and 177 sailors. The ship will depart Goa on 04 Aug 19. As part of naval diplomacy, the Indian Navy regularly interacts with foreign navies of the world, cementing Indian Navy's image as a Net Security Provider in Indian Ocean region.

Mendez Nunez, with pennant number F-104, is a Multipurpose Frigate in service with Spanish Navy. The ship was commissioned on 21 Mar 2006 and is based at Naval Base, Ferrol in Spain. She is 147 m long and has a tonnage of more than 6000 tons. The ship is capable of doing a speed of more than 50 Kilometres per Hour and has a range of more than 5000 nautical mile. The ship is ﬁtted with Harpoon Surface to Surface Missiles, Sea Sparrow Surface to Air Missiles and a 5 inch caliber gun. A Seahawk

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AUGUST 2019

A teacher asked a student to write 55. Student asked: How? Teacher: Write 5 and beside it another 5! The student wrote 5 and stopped. teacher: What are you waiting for? student: I don't know which side to write the other 5!

The teacher to a student: Conjugate the verb "to walk" in simple present. The student: I walk. You walk .... The teacher intruptes him: Quicker please. The student: I run. You run ...

Three mice are being chased by a cat. The mice were cornered when one of the mice turned around and barked, "Ruff! Ruff! Ruff!" The surprised cat ran away scared. Later when the mice told their mother what happened, she smiled and said, "You see, it pays to be bilingual!"

A: Just look at that young person with the short hair and blue jeans. Is it a boy or a girl? B: It's a girl. She's my daughter. A: Oh, I'm sorry, sir. I didn't know that you were her father. B: I'm not. I'm her mother.

A: Why are you crying? B: The elephant is dead. A: Was he your pet? B: No, but I'm the one who must dig his grave.

A teenage girl had been talking on the phone for about half an hour, and then she hung up. “Wow!," said her father, "That was short. You usually talk for two hours. What happened?" "Wrong number," replied the girl.

Teacher: "Nick, what is the past participle of the verb to ring?" Nick: "What do you think it is, Sir?" Teacher: "I don't think, I KNOW!" Nick: "I don't think I know either, Sir!"

Mother: "Did you enjoy your ﬁrst day at school?" Girl: "First day? Do you mean I have to go back tomorrow?

Teacher: Why are you late? Student: There was a man who lost a hundred dollar bill. Teacher: That's nice. Were you helping him look for it? Student: No. I was standing on it.

Customer in a restaurant: I would like to have a plate of rice and a piece of fried chicken and a cup of coďŹ&#x20AC;ee Waitress : Is it enough Sir? Customer : What? Do you think I can't buy more?

Teacher: Tell me a sentence that starts with an "I". Student: I is the.... Teacher: Stop! Never put 'is' after an "I". Always put 'am' after an "I". Student: OK. I am the ninth letter of the alphabet.

Man said to God --- Why did you make women so beautiful? God said to man --- So that you will love them. Man said to God --- But why did you make them so dumb? God said to man --- So that they will love you.

"Do you know what really amazes me about you?" "No.What?" "Oops.Sorry. I was thinking about someone else!"

A person who speaks two languages is bilingual...A person who speaks three languages is trilingual...A person who speaks four or more languages is multilingual. What is a person who speaks one language? An American.

On a crowded bus, one man noticed that another man had his eyes closed. "What's the matter? Are you sick?" he asked. "No, I'm okay. It's just that I hate to see old ladies standing."

Two cows are standing in a ďŹ eld. One says to the other "Are you worried about Mad Cow Disease?" The other one says "No, It doesn't worry me, I'm a horse!" Man: How can you tell if a man is happy?

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