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ITF warns against using ISPS for “union busting”

THE International Transport Workers’ Federation has warned that it will be on the lookout for misuse of the new International Ship and Port Facility Security Code as a weapon against port unions.

The ITF has issued a statement welcoming the ISPS but which quotes Kees Marges, ITF Dockers Section Secretary as saying, “We welcome any serious piece of legislation that protects citizens and workers from terrorist attacks. However, we should be alert that the new legislation is not being used as a union busting tool.”

Jon Whitlow, ITF Seafarers Section Secretary, says: “While we understand the need to increase maritime security there is also a need for proportionate measures and other longstanding problems like piracy to be addressed. We must ensure that the measures do not increase the workload of already overburdened seafarers and that their fundamental rights, freedoms and basic dignity are protected.”

The statement says that, during IMO discussions on the code, the ITF tabled provisions to protect seafarers’ human and trade union rights. As a result, it notes, the ISPS Code contains a clear instruction that the fundamental rights and freedoms of maritime workers, including the trade union rights of port workers, must be protected. Port security plans are also required to facilitate access to ships by visitors and seafarers’ welfare and labour organisations. Access to port terminals by port workers’ union representatives and ITF inspectors should be facilitated under this provision.

DESPITE press reports that few if any Middle East Gulf ports have achieved International Ship and Port Security Code certification the UAE’s Sharjah Ports Authority says that all Sharjah’s ports and terminals met the July 1 deadline. In addition Sharjah’s ports could soon have their own dedicated police force.

According to Simon Waterman, the Training and Safety Officer of Gulftainer Co. sophisticated software has been installed into the IT system and the current security force has enlarged the scope of procedures.

Among new precautions are physical checks of all empty containers entering port areas and stricter port entry controls.

Sharjah Ports Authority has also implemented the Declaration of Security (DOS) documentation, procedures and systems as per the ISPS requirements. In addition, there have been discussions between Sharjah Ports Authority and the Government of Sharjah about the formation of a special port police force. It is envisaged this will be a specially trained division of around 100 enforcement officers.

HONG Kong-based Anglo-Eastern is expanding its Antwerp office into a fully fledged ship management office as part of a strategy to win management contracts from national-flag operators based in continental Europe.

Peter Cremers, CEO of the Anglo-Eastern Group said: “We expect to have at least 10-12 ships under full ship management by end 2004, all from major Belgian shipowners.” He said “Too often people think that independent ship managers only manage ships under so-called Flags of Convenience.

“I believe there is a strong market for quality ship management among ship owners flying national flags. We have managed ships under the Canadian, New Zealand, British and (with the acquisition of the Dockwise Fleet), Dutch national flags for some time.

“Our Glasgow office is now running strong and is active in most of Europe. However, specific enquiries from certain countries on the continent have led us to believe that a second ship management office on the continent itself would mean further managed growth for Anglo-Eastern.

“To meet the demands of a fast growing Belgian Register – our Antwerp subsidiary, Anglo-Eastern (Antwerp) nv, will be offering full ship management services under a Belgian Flag Document of Compliance (DOC), meeting Belgian tonnage tax ship management criteria.”

TRANSPORT and insurance mutual TT Club, has appointed Andrew Webster as Director of Loss Prevention. He succeeds TT Club veteran John Nicholls, who has retired. Mr Webster, who was previously Loss Prevention Manager, will be based in the Club's London headquarters.

Colin Lewin, TT Club's Chief Operating Officer said: "We are confident that Andrew's background in risk management and loss prevention ideally equips him to move the Club forward in these key areas of service to our policy-holders.'

LAST Thursday’s deadline for the implementation of the International Ship and Port Facility Security (ISPS) Code passed with few problems for the world fleet.

Despite fears the enforcement of the code in the US might have led to major disruption proved unfounded as by the weekend only a few ships had been refused entry on had restrictions imposed on them.

Of the handful of ships under restrictions is one UK ship but the vessel is fully ISPS certified and undergoing conversion work in a US yard and is apparently on the list due to a quirk in the US Coast Guard’s bureaucracy.

Two Bolivian ships faced problems entering Miami while some 40 ships were under special restrictions while in the US.

THE Baltic Exchange is set to launch an independent benchmark on the demolition values of bulk carriers and tankers. The Baltic says testing of the data for the Baltic Demolition Assessments (BDA) will begin on July 12 with an official launch expected in the autumn.

The move comes as market interest in scrap value-based derivatives increase.

The assessments will be based on the following criteria:

• Per light displacement tonne (ldt) derived from a dirty tanker of between 15,000 and 25,000 light weight, gas free for man entry. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.

• Per ldt derived from a dirty tanker of between 15,000 and 25,000 light weight, gas free for man entry. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.

• Per ldt displacement derived from a product tanker of between 6,000 and 10,000 light weight, gas free for man entry. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.

• Per ldt derived from a product tanker of between 6,000 and 10,000 light weight, gas free for man entry. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.

• Per ldt derived from a bulk carrier of between 7,000 and 12,000 light weight. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.

• Per ldt derived from a bulk carrier of between 7,000 and 12,000 light weight. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.

The assessments will be published on a weekly basis and based on contributions from ship demolition brokers at ACM Shipping, Clarksons, Compass Maritime, Galbraiths, JV Shipping and Simpson Spence & Young. The assessments will be expressed in US dollars and will be subject to the same auditing procedures as other Baltic assessments.

SIERRA Leone’s government has appointed UK-based company Port Maritime Security International (PMSi) to manage the security of the country’s ports. Mr Philips Lukuley, Executive Director of the Sierra Leone Maritime Administration (SLMA), says the security services company, a subsidiary of Eurotunnel plc, has been recruited to draw up and implement a plan for port security, train port personnel upgrade the security of the ports in general. Implying that the country’s ports have not met International Ship and Port Facility Security (ISPS) Code, he says the West African country recognises that it needs to meet the new, stricter, international security requirements if it wants to keep trading with the rest of the world. PMSi was initially brought in to provide its DNV-certified courses for ISPS code compliance. Technical Director Peter Southwood says: “They [ the Sierra Leone government] have already undertaken significant steps to upgrade their security and I know they are committed to implementing all measures necessary to ensure they comply with international security requirements.” Mr Southwood says an important part of PMSi’s work is to help instill a security culture throughout the whole port community. “After our assessment, we will make recommendations about equipment and procedures and so on. But it is equally important that a security culture is developed – that everyone involved accepts they have a role to play in maintaining security.” He is confident that the government will do everything it can to encourage the port authorities in Freetown and the smaller ports to instil this security culture.

BILL Thomson of Scottish tanker owner Forth Tankers plc is the new chairman of the North of England P&I club. He replaces George Procopiou of Greek tanker and dry cargo ship owner Dynacom, who has just competed his two-year term of office.

Mr Thomson has been a member of the 50 million gt club's board since 1998 and previously served as vice chairman. As board chairman he also sits on the club's executive, P&I, FD&D, war risks and remuneration committees.

'The North of England has been enjoying a period of strong and steady growth over recent years and I have every intention of seeing this continue,' he says. 'Much of the club's recent success is directly attributable to my predecessor George Procopiou, and I look forward to continuing his dual drives to enhance membership quality and maintain underwriting discipline.'

BAHAMAS-registered Teekay Shipping has ordered three 151,700 cu m LNG carriers at South Korea’s Daewoo yard, costing a total of about US$510, on the back of a charter for the ships from Ras Laffan Liquefied Natural Gas Co. Limited (II) (“RasGas II”).

RasGas II is a joint venture company between a subsidiary of ExxonMobil Corporation and Qatar Petroleum and will charter the vessels at fixed rates, with inflation adjustments, for a period of 20 years commencing in late 2006 and early 2007. (There are options to extend the charter period up to 35 years),

Teekay says: “The charter contracts are expected to generate approximately $55 million in annualized cash flow from vessel operations. Qatar Gas Transport Company is expected to acquire a 30% interest in the vessels as permitted under the tender documents.”

“We are delighted to have been selected as a provider of LNG shipping services in Qatar, which is expected to become the largest exporter of LNG in the world within the next few years,” David Glendinning, President of Teekay’s Gas division. “The profitability of this transaction has been enhanced through an ‘en bloc’ order for all three vessels from one shipyard combined with an attractively priced, long-term fixed-rate loan facility that was locked in at interest rates below current levels.

IT now looks as though the vast majority of the world’s fleet and most major ports made yesterday’s International Ship and Port Facility Security Code deadline. The IMO said that figures from IMO member governments show that more than 86% of ships and 69% of port facilities had their security plans approved by 1 July 2004 and “the figures are rising rapidly”.

IMO Secretary-General Efthimios E. Mitropoulos said that, all over the world, a huge amount of work has been undertaken in the period leading up to the entry-into-force date to ensure the highest possible level of compliance.

He said, "I think we now have to look on the positive side and remember that the prime objective of this work has been to increase awareness of the real and present threat of terrorism, explain the implications of the ISPS Code and how best to implement it and, in so doing, raise the shipping industry's defences to protect it and seaborne trade from any act of terrorism. There is no doubt that that has been done, the defences are significantly higher than they were before, and we must now ensure that they continue to rise. While I appreciate the efforts made worldwide to achieve the set of objectives, I also acknowledge with appreciation the tremendous work done by the IMO Secretariat, both at the legislatory level and at the technical assistance and co-operation one, to contribute to today's results and the establishment of an adequate maritime security infrastructure to keep terrorism at bay. Their commitment and dedication are most commendable"

Mr Mitropoulos said that, from the outset, even before the SOLAS amendments and the Code were adopted, the SOLAS Contracting Governments and the shipping and port industries knew very well that they were to face a very challenging task; that there would be a need for prompt action, within a very limited time, by all parties concerned. He said that, during the last few months, the SOLAS Contracting Governments and the industry, in view of the importance of meeting the challenges posed by the new security measures, had intensified their efforts to comply with the requirements.

THE Panama Maritime Authority (AMP) says that it has complied “with the implementation and execution” of the ISPS Code, despite widespread shipping industry concerns that it would not make yesterday’s deadline.

The agency said it has carried out the different phases to complete the evaluation of the plans of protection and verification on board ships of Panamanian flag in diverse parts of the world as well as processing certifications of companies operating all the harbour installations inside the territory of the Republic of Panama”.

As well as the container ports of Manzanillo, Balboa and Cristobal, this presumably also covers Colon Container Terminal (CCT) of Evergreen Line, although the company itself has not yet made a statement to this effect.

THE price of shipping wheat is beginning to ease, much to the relief of the wheat trade, says the latest US Wheat Associates’ Wheat Letter.

It points to the US Gulf - Japan route, where rates dropped from record highs of US$75 - US$80 per ton to US$37 last week. USWA notes: “Around the world, depending on the route and vessel, freight rates fell anywhere from $3 to $13 last week, with only a bit of inching back up this week.”

It comments: “Rates have been falling across the board due to easing of demand, new tonnage entering the market, fuel prices edging downward, a weak grain market in South America and an easing of port congestion.”

USW vice president Vince Peterson points out that the recent trend helps U.S. competitiveness to several markets, explaining that the longer voyage rates are dropping proportionally faster than the shorter routes.

The Wheat Letter says that, among the five traditional wheat exporters, production is projected to be up by 13m tonnes in the current accounting year compared with 2003/04, “due in large part to good crop forecasts in the European Union” which expects to produce 128m tonnes.

SHIPPING, ports and property group P&O has sold property in the US and Germany, putting it “on track to meet its target of £250 million net property sales in 2004”.

The Boston Wharf Company, a wholly owned subsidiary of P&O, has sold 12 buildings comprising 380,000 square feet of office space for US$92m to HDGM Holdings, LLC, a US based real estate investment firm. P&O will report a profit over book value on the transaction of approximately £20 million within operating profit for the half year to 30 June. P&O notes: “The proceeds have been received and will be used to reduce Group net debt.”

The HTC Hanseatic Trade Center GmbH and Co. Grundbesitz KG partnership (“HTC”) has sold a major phase of its office development in Hamburg to Credit Suisse Asset Management. P&O holds a 47.5% interest in HTC. HTC has received the cash proceeds from the sale which will be used by the partnership to reduce net debt. P&O says: “The transaction results in a reduction in P&O’s property net operating assets and its share of joint venture and associate net debt by approximately £30 million. No significant gain or loss arises.”

HUTCHISON Port Holdings Group subsidiary Panama Ports Company (PPC) has received approval to invest a further US$100-million in the beginning of the next phase of expansion of the container terminal of the Port of Balboa,” Alejandro Kouruklis, General Manager of PPC, has announced at a press conference.

With this investment the new Pier 15 will be built covering 280 meters in length and with three Post-panamax container cranes.

The Port of Balboa will become the container terminal with the most container cranes in Panama and the region, says PPC

Mr Kouruklis said: “this new investment added to those already made (Phases I and II, US $120-million; Phase III, US $200-million) makes PPC and Hutchison Port Holdings the biggest port investors in the history of the Republic of Panama, with more than US $400-million.”

He also announced that the PPC ports have received its ISPS certification from the Panama Maritime Authority (AMP).

Panama Ports Company operates the ports of Balboa and Cristobal, located at either end of the Panama Canal.

THE latest IMO figures, based on responses from governments, show just over 53% of both the world fleet and global port facilities meet the International Ship and Port Facilities Security Code which comes into force today.

IMO Secretary-General Efthimios Mitropoulos said that out that the real picture is “almost certainly be better than that suggested by the survey, as Governments understandably concentrate their efforts on reviewing and approving plans and issuing certificates rather than reporting their progress”.

Speaking yesterday he said: “The figures released today indicate that the number of port facility security plans submitted and approved has increased significantly in the week before 1 July 200. Although the figures are changing constantly, at the moment the percentage of port facility plans approved has caught up with the percentage of International Ship Security Certificates issued. It is clear that all parties concerned, Governments and the industry alike, are doing their utmost to be ready for the entry-into-force date.”

In calling for a pragmatic and realistic approach in the period following entry into force, Mr Mitropoulos added: “We have not flicked a switch, indeed, even though the administrative processes may not all yet be completed ­ and that is, of course, a matter of regret, - the overwhelming likelihood is that the work already carried out by shipping companies and port facilities in preparation for the Code means that the actual level of preparedness, vigilance and awareness on the ground will be higher than it was anticipated only one week ago.”

He said: “This should naturally not distract us from the final goal, which is not only to be 100 per cent compliant but also to create the necessary security culture and raise our defences so high that the shipping industry does not become a target for terrorist activities.”

SHIPMANAGEMENT company V.Ships and Hamburg-based Marine Service Group have set up a joint venture company to expand their activities in the LNG market. Monaco-based V.Ships says that the joint venture company, Global LNG Management Ltd, will provide a full range of marine shipping services to the LNG sector, including technical and crew management, project consultancy and newbuilding supervision.

MS Group owns major LNG consultants Marine Service GmbH and Chemikalien Seetransport GmbH (CST), a tanker management company which has been involved in operating LNG carriers for over 20 years.

The V.Ships now manages a fleet of about 600 vessels.

Tullio Biggi, President of V.Ships, said, “We are delighted to have formed a joint venture with MS Group, who bring with them many years experience and expertise in the LNG sector. The new company will benefit from strong synergies between the two parties, with complementary skills and resources.”

THE gas carrier sector faces a crew shortage unless it invests in more training according to distance learning specialist Videotel.

It says liquefied gas tankers are a fast-expanding sector of the maritime business but the sector requires competent seafarers with very different skills to those called for on oil tankers, for instance.

"In the next few years there will be a greater demand for these skills than ever," says William O'Neil, president of Videotel and former secretary general of the IMO. "LNGs and LPGs have a very good safety history, but unless there are more training opportunities, where will the seafarers with these specialist skills come from?"

"Colleges will find it difficult to cope with the large numbers of students who will need to enrol," says Len Holder, Videotel's chairman, "and many officers already serving on ships will have difficulty in finding the free time to take extra courses."

DANISH owner Norden has sold its 2000-built products tanker Nordamerika to German interests in a deal that will add US$11.5m in profit to its first-half results. A company statement says: “The vessel has then been chartered back from the buyer on a long term timecharter basis at market conditions.”

The 35,775 dwt vessel was delivered to Norden in 2000 as a newbuilding from the Korean shipyard STX.

THE Panama Canal Authority (ACP) says that, by Monday, the number of vessels waiting to transit the canal had returned to “normal levels”, with just 17 vessels currently queuing.

That represents a considerable reduction from the 55 vessels waiting on June 23 due to the closure of the west lane of Gatun Locks to replace the locomotive tow tracks.

A statement said: “Lane outages are scheduled to occur once every month – for a maximum of 11 days for each outage – from June to October 2004. Notice of major outages is given at least six months in advance. The tow track replacement will dramatically improve the Canal’s operations and is part of its modernization program.

NORWEGIAN-based parcel tanker specialist says that its president and CEO Bjørn Sjaastad left the company as of yesterday with a pay-off deal worth NKr9.5m (US$1.4m). Mr Sjaastad has been on leave of absence since the end of September 2003.

Odfjell says, under the terms of his contract, Mr Sjaastad will be paid two year's salary at NKr2,6m a year when leaving Odfjell and is also entitled to pension rights worth NKr 4,3. Terje Storeng continues as interim president/CEO “until further notice”.