Salvage%20World%20Q3%202012

Salvors hold 58th General Meeting in Istanbul

October 2012 INTERNATIONAL SALVAGE UNION

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The International Salvage Union held its 58th General Meeting at Istanbul, Turkey, 25–26 September 2012. More than 100 delegates and their guests from the ISU’s 60 member companies attended. The meeting was hosted by Solar Salvage of Turkey and chaired by ISU President, Andreas Tsavliris.

ISU members were updated on the business of the ISU, its Executive Committee and professional advisers during the past year. A range of issues and policy matters was discussed including the idea of a new Bunker Removal Clause for salvage contracts.

The proposal, from the International Group of P&I Clubs, suggests the introduction of a Bunker Removal Clause as an option in the commonly-used Lloyd’s Open Form salvage contract. The intention is to enable liability insurers to have more influence over the process of removing bunker fuel from casualty vessels.

Commenting on the proposal, ISU President, Andreas Tsavliris, said: “We have had preliminary and informal discussions with the Clubs and others but I have to say we have serious concerns about a Bunker Removal Clause.

Nevertheless, the idea is relatively new to us and our Executive Committee and our membership have agreed at our AGM to form a sub-committee to give the idea more consideration and we have asked that committee to report its views to the next ISU Executive Committee in

December.”

ISU members also confirmed their intention to press for a change to the 1989 Salvage Convention at the forthcoming meeting of the over-arching marine law body the Comité Maritime International (CMI)to be held in Beijing in October 2012. Possible changes to the Convention are set to be a key part of the CMI’s agenda.

ISU has suggested that changes should be made to the Convention to enable financial awards to be made that specifically recognise salvors’ efforts to protect the environment. The changes would also mean that payment for environmental protection in salvage cases would be more fairly spread between property and liability insurers.

Andreas Tsavliris, said: “We believe we have made a strong case for change and we think it can come about through quite simple amendments to key parts of the 1989 Convention.

We think our suggestion is fair and will give proper encouragement to salvors to intervene in cases which threaten the environment. This was always the intention of the 1989 Convention. We know that the P&I Clubs do not share our views on this but we are looking forward to hearing the matter fully discussed in Beijing.”

As well as the AGM there was a full social programme including a Bosphorus dinner cruise and visits to many of Istanbul’s historic sights (see pictures page 9).

Mike Lacey's retirementAt the ISU General Meeting, President, Andreas Tsavliris, gave a tribute to Mike Lacey’s long career and presented him with a gift recognising his retirement as Secretary General after more than thirty years of connection with ISU.

Mr Lacey has been made and Honorary Member of ISU. He will continue to the end of 2012 to ensure a smooth handover with new General Manager, Mark Hoddinott. Mr Tsavliris thanked Mike, and his wife Liz (right), for their great contribution to ISU over the years. The ISU AGM was the best occasion to honour Mr Lacey in front of the membership and a tribute to his work will be published in the Q4 2012 edition of Salvage World.

Delegates at the ISU AGM

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Wreck Removal Levy

At the recent ISU General Meeting it was agreed that a new Salvage Levy should be introduced and be payable by Members which will encompass the existing Lloyd's Form Levy and the Wreck Removal Levy.

It provides an additional source of income for running ISU and enables the subscription to kept at current levels. Details of the new Levy will be circulated to Members shortly.

Salvage Statistics

ISU has committed to continue to gather statistics from its members in order to be able to show aggregated data about the industry. ISU will hold a workshop to consider the best way to gather the data; what should be collected; how it should be used and published. ISU’s General Manager, Mark Hoddinott, said: “Confidentiality of members’ data is very important and we recognise that. We will ensure that the process is confidential, not burdensome and that the results are useful to members and others alike.”

Membership applications

ISU is to modify the system under which salvage companies may become full members. Aspiring members will still have to complete a formal application process and be supported in writing by two existing members. The application

will be considered at the next scheduled Executive Committee meeting. ISU General Manager, Mark Hoddinott said: “This will mean that there may be a delay of up to three months before a company can have its application fully considered. But membership of ISU is a very serious matter and a privilege that we feel should be discussed at Executive Committee meetings.”

ISU Annual Review

ISU has committed to produce and publish an Annual Review of its activities. Details such as the format, content, timing cycle and distribution method are to be discussed further by the Executive Committee at its next meeting in December.

Meritorious Service Award

The ISU has also announced that it will introduce its own award to recognise meritorious service among its membership. The award will not be made annually but on an ad hoc basis and will be judged by members of the ISU Executive Committee.

New ISU website

ISU has concluded the first stage of a project to modernise its website which is an important communication tool. Under the first stage of the project the entire site has been transferred to a new database, the design refreshed and a more "user-

friendly" content management system introduced. It will enable quicker updating of the site. The new site will “go live” in the coming weeks. In the second phase, changes will be gradually introduced to make the site more responsive and newsworthy. The ISU website attracts thousands of visits each month – usage was up by 25% in the aftermath of the Costa Concordia casualty. ISU communications adviser James Herbert noted: “The ISU’s website should be the most authoritative and useful resource for marine salvage both for those connected to the business and others such as the media.”

An image of the new ISU website.

Mammoet Gulf of Mexico operation

A jack up lift boat suffered damage in a failed attempt to jack up next to a platform in the Gulf of Mexico. Several attempts to jack down and to extract the legs from the seabed failed and finally the legs had to be cut free from the hull of the lift boat. It left the legs and spudcans buried 50 feet into the seabed.

Mammoet Salvage was awarded the contract for the removal of the remains of the jack up legs. The Authorities ruled out the mooring of an anchored spread at the site due to the presence of high pressure oil and gas pipelines on the seabed. Mammoet therefore proposed using a Dynamic Positioned II Multipurpose Offshore Construction vessel in combination with Dynamic Positioned I Anchor Handling Tug and divers. Mammoet said that experience gained on a previous high-profile salvage in the same oilfield were helpful in addressing local challenges.

The proximity of the abandoned legs to the jacket, squalls with winds up to 60 knots and the approaching hurricane season made the project difficult. But the DP II DSV TOPAZ CAPTAIN (above right) in Galveston and later the DP I AHT ISLA SAN JOSE were mobilized from Galveston and from Dos Bocas and the legs were extracted in a 120 day operation before being transported for scrap.

ISU NEWS

Tsavliris’ typhoon troubleOn 1 August TSAVLIRIS, in co-operation with Chinese fellow salvors, dispatched salvage tug DONG HAI JIU 111 to the assistance of the bulk carrier BET PRINCE - 163,554 tonnes dwt - laden with iron ore and disabled about 100 nautical miles south east of Zhoushan in China.

The tug arrived the next day and in the face of typhoon “Saola” towed the casualty towards Zhoushan. The convoy arrived off Xiazhimen anchorage in severe weather conditions on 3 August. The tug DONG HAI JIU 116 was also brought in to assist controlling the tow before proceeding to anchorage.

But then another typhoon, “Haikui” hindered the operation further and the crew’s safety became an issue. Due to the weather, the “BET PRINCE” dragged her anchor, so her second anchor was dropped, but in spite of this, dragging continued and there was a risk of grounding as the casualty was heading towards the rocky shoreline. DONG HAI JIU 111 was instructed to attempt an emergency tow line connection but it was too dangerous

After the typhoon passed, DONG HAI JIU

111 connected the towline to the casualty but her anchors and anchor chains had become entangled due to the severe weather and a floating crane was brought in to untangle them under the direction of the salvage master. The casualty was then towed to deeper water to avoid any further damage.

In late August there was a threat of two further typhoons, “Tembin” and “Bolaven” with the latter heading directly for the casualty’s position. Approval from the authorities to enter the port of Zhoushan was given and on 25 August BET PRINCE was towed in by port tugs to shelter from the incoming typhoons. The

casualty was safely redelivered to her owners on the Thursday 30th August.

Elsewhere, the salvage tug TSAVLIRIS HELLAS, went from her Ponta Delgada salvage station to assist the general cargo vessel FARUK KAAN - 9,370 tonnes dwt – laden with steel products and disabled about 700 nautical miles northwest of Cape Verde Islands. She was brought safely to Mindelo and redelivered to her owners. The Tsavliris tug HERMES has also been in action from her Patras station, towing the disabled MV SEA ORCHID - 9,994 tonnes dwt - from a position off Kefalonia Island to Astakos.

Resolve makes good progress removing the wreck of the RENARESOLVE has removed the first 600 tons of steel from the bow section of the RENA off Tauranga, New Zealand. Resolve has been removing the wreck piece by piece using helicopters to carry cut sections to a transport barge kept at a safe distance from the reef.

The precarious position of the wreck’s bow on the Astrolabe Reef combined with concern in New Zealand over the potential for additional damage to the reef during salvage operations, meant Resolve’s approach using helicopters was chosen ahead of a number of other proposals.

Resolve’s Salvage Master Frank Leckey said: “We now have our team of divers from the US and our RMG 280 crane barge from Singapore for the underwater phase of wreck removal, now that the seas are expected to be calmer with

the seasonal change. The crane barge can access the bow from deep water, far enough away to avoid the reef but close enough to lift the cut sections from the wreck onto a barge. The crane can remove much larger pieces than the helicopters so we have helicopter, crane and underwater dive operations all underway simultaneously.”

Strong winds and high seas up to six metres have interrupted the salvage operation on more than one occasion. Seas over three metres require the suspension of ooperations to ensure the safety of the team.

Mr Leckey continued: “The wreck lies at a 34-degree angle. Combine that with significant movement when the wind or seas pick up and you have a dangerous situation. We have a full time health and safety officer monitoring all aspects of the operation.”

Resolve intends to reduce the wreck to a point where it is no longer visible by early 2013.

Speaking about winning the RENA work, Resolve's founder, Joe Farrell JR said: "Joining the ISU improved our status. By becoming a member we became better known, it's been a very good thing for us".

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Rudy Teichman Obituary

It is with regret that the ISU noted the passing of Henry Rudy Teichman who, during the course of some 50 years, built a small shipyard into a conglomerate of companies offering marine salvage, spill response and firefighting services worldwide. He was 81.

Rudy Teichman was born at Galveston, Texas, 06 July 1931. In 1952, after service in the US Army, he began work at Todd Shipyards and Marine Machine Works and in 1957 he founded T&T Marine Ways on 20 acres of land at the mouth of Offatts Bayou at the end of Teichman Road, in an area known as Teichman Point.

He later added T&T Marine Salvage, Tug Josephine, T&T Offshore, T&T International Fire & Salvage and T&T Bisso to his maritime portfolio. Together the companies employ about 200 people in US, South American, European and Asian offices. “His employees would follow him to the moon if he asked,” Kevin Teichman, Rudy’s son, said. Rudy Teichman was also known for his innovation in the marine industries. For example, he designed and patented a method of skimming oil from the water after the 1989 Exxon Valdez casualty which led to a spill of some 37,000 tonnes of crude oil in Alaska’s Prince William Sound.

He also helped develop technology and procedures to respond to similar events in the Gulf of Mexico and designed equipment to help mitigate the effects of the BP Deepwater Horizon spill in 2010.

“He could look at a piece of equipment and

build a bigger, better model,” John Kelso, a family friend, said. “He could look at a problem and build something from scratch to solve it. That’s just the kind of mind he had. He didn’t need drawings. He had it all there in his head.”

Rudy Teichman was committed to his local community and served for three terms on the Galveston City Council in the late 1970s and early 1980s, as well as serving on the Wharves Board of Trustees, which governs the port. He also helped to found the Propeller Club.

Joe Max Taylor, Galveston County sheriff for 20 years knew Rudy well and said: “I learned quickly that he was well-respected and liked by so many in the community. I never heard anyone say a bad word about him.”

Rudy Teichman is survived by his wife, Donna; sons Henry Kevin and Brian; daughter Kelly; granddaughter Ashton; grandsons Henry Hunter, Rudy Holt and Curtis.

TSAVLIRIS

The Federation of European Maritime Associations of Surveyors and Consultants (FEMAS) held its most recent board meeting in Greece and a number of guest speakers made presentations. The final presentation was by Tsavliris Salvage Group’s Dr Maria Adamopoulou and Mr Nicolas A Tsavliris who gave a seminar on the “Challenges within Salvage”. Dr Adamopoulou outlined the difficulties the salvage industry faces such as Places of Refuge, financial issues and salving mega-ships. Mr Tsavliris provided examples

from the Tsavliris Group’s own extensive experience and history, including case studies going back to the 1960s.

ITC

ITC has been involved since the outset of the Nord Stream pipeline project in the Baltic which has now been completed, two years after its start date.

ITC’s AHTS BLIZZARD has provided round the clock anchor handling services to Saipem’s semi-submersible lay barge CASTORO SEI. From the summer of 2011 she was joined by a second ITC anchor handler, AHTS BLUSTER and last autumn AHTS BOULDER completed the team of four anchor handlers in the Nord Stream project for its final eight months. BLIZZARD and BOULDER regularly each re-positioned up to 26 anchors a day. During the entire project ITC reset some 18000 anchors from the CASTORO SEI.

TITO NERI

TITO NERI was pleased to see its efforts with Smit to remove the bunkers from the COSTA CONCORDIA receive very positive coverage from the Italian national newspaper, IL TIRRENO.

The paper reported that the Island of Giglio was “moved to tears” as it said farewell to the salvors who have become honorary “Gigliesi”. The salvors were a combined team of some 30 Smit and Neri staff which safely removed all the bunkers from the wreck before handing over the wreck removal to the Titan Micoperi consortium.

The team received a send off from the town mayor, Sergio Ortelli, supported by the town band and sirens and car horns. One of the divers was reported to have said with moist eyes: “Never in 25 years have I heard such a “thank you”.

ISU welcomes the following new member:

Euro Demolition Offshore BV Zuiderkade 9 1948 NG Beverwijik (NI) The Netherlands Ber Mak, Managing Director: [email protected] Tel: +31 (251) 27 31 40 Fax: +31 (251) 27 09 77 Internet: www.eurodemolition.com

MEMBERS’ NEWS

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SMIT operationsIn South Africa SMIT was engaged to refloat the long line fishing vessel EIHATSU MARU which ran aground on Clifton’s First Beach in Cape Town. This operation proved to be complex from the outset due to the inaccessibility of the grounding location. Many tonnes of equipment had to be airlifted in.

Because the vessel was on the beach for a few days she started to settle into the sand and so required a larger pulling force to refloat her. It meant that the entire aft section of the trawler had to be reinforced with many tonnes of steel that had to be airlifted onboard before Smit Brackets were installed on her stern.

Before refloating, the fuel oil was pumped from the casualty to a fuel bladder located on the beach and then pumped through a series of hoses into road tankers located some 200 metres above the beach. The powerful ocean going tug Smit AMANDLA refloated her (below right) and pulled her clear of the rocks and safely out of the bay. The convoy proceeded to Cape Town Harbour, where the casualty was handed over to port tugs.

Another Smit operation took place in

Five Oceans Salvage LoF round-upOn 28 June the MV SD PROGRESS - 65,700 dwt - was immobilised due to main engine mechanical failure off Gibraltar while waiting to bunker.

She was laden with soya beans enroute from Brazil to Croatia and Italy. Five Oceans Salvage, under a LOF, dispatched its tug MED FOS from her salvage station in Gibraltar together with a salvage master to assist. The tug connected to the casualty and towed her outside the busy lanes of the Straits of Gibraltar. Five Oceans used its local

the remote waters of Greenland after the container feeder vessel VEGA SAITTARIUS grounded off Nuuk (below left).The vessel breached her double bottom when she came to rest with a six degree list on multiple rock pinnacles.

Smit Salvage was awarded a LOF 2011 and sent salvage experts and equipment by charter plane to Nuuk and mobilised various support craft. The assessment, supported by naval architectural calculations, was that the complete discharge of cargo coupled with selected pressurization of breached voids, ballast discharge, and an external pull force would be required to refloat the casualty. Due to the remoteness of the incident location there were no suitable tugs available and a powerful tug of 175 tonne BP was sourced from Aberdeen in the UK to successfully refloat the vessel.

The company has also been busy in Singapore. In July, operations started to refloat the 112 meters long ice-classed diving support vessel OCEAN ECLIPSE that had sunk alongside a Singapore shipyard while under repair. SMIT contracted the work on a lumpsum basis and had three diving teams working three shifts continuously on the submerged vessel to prepare its tanks

and compartments for the pumping and dewatering operation. After 21 days, using the 1,000 tonnes lifting capacity sheerlegs SMIT Cyclone, she was successfully refloated.

In the same area, Smit Singapore responded to an emergency on board the newly converted FPSO ARC II/CIDADE DE ITAJAI. During her sea trials a fire broke out in the engine room and the vessel had to drop anchor in Singapore Strait while all crew abandoned ship. Smit immediately responded by dispatching its fire-fighting tugs and other equipment from its base. The next day the fire was controlled and put out. After making the 245 metre long FPSO safe and adjusting her draft to port level she was towed and escorted by five Smit tugs back to the shipyard and redelivered to her owners.

In the same period, Smit Salvage, supported by fellow ISU member Alfons Håkans, refloated the Aframax tanker KYEEMA SPIRIT which ran aground off Tallinn, Finland. Elsewhere in Europe the pollutants were removed from the product/chemical tanker GELSO M off Sicily in cooperation with Augustea and off Tunisia, with a local partner, the capesize bulker FLASH was refloated.

network in Gibraltar to facilitate repairs to the vessel by providing logistics support, transportation of technicians and equipment and the supply of spares. The repairs were carried in the open sea where the vessel was redelivered to her owners and resumed her voyage on 09 July.

Also in late June the MV EVANTHIA M - 5,200 dwt - was immobilised due to main engine failure in the South Ionian Sea. The vessel was en route from Greece to Algeria, carrying steel products. Under a LOF, Five Oceans Salvage dispatched its tug RED SEA FOS from her salvage station in Piraeus to assist. The tug safely towed the casualty to Piraeus where the

vessel was redelivered a week after the operation began.

The MV ARKTOS - 20,000 dwt - was immobilized due to main engine failure on 18 July 2012 approximately 650nm southeast of Conakry, Guinea.

The vessel was en route from India to Guinea, laden with 17,000 tons of bagged rice. The owners signed a LOF with Five Oceans Salvage who engaged the salvage tug GUARDIAN from Lome to assist. The tug reached the casualty on 25th July and commenced towage to Conakry where the vessel was redelivered on 02 August.

ASSOCIATES’ NEWS

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2013 ISU Associate Members’ Day

The 2013 ISU Associate Members' Day will be held in london on 20 March 2013 followed by the biennial SCRs' Seminar on 21 March 2013.

Moore Stephens

Accountancy and insurance consultancy Moore Stephens has added John Westlake to its regulatory advisory team as compliance manager.

Mr Westlake has a wide perspective on the insurance industry gained through a variety of roles, which has enabled him to support insurers and brokers in establishing effective compliance regimes.

Moore Stephens said he has a strong commercial background, with experience as operations director with a personal lines insurer; compliance director with a commercial insurance broker and, most recently, training and advising senior management in the management of risk at JLT Group. He also worked with the UK Financial Services Authority advising insurance intermediaries on regulation.

International Chamber of Shipping

The International Chamber of Shipping (ICS) has welcomed the decision by the European Commission competition directorate to close its investigation into the activities of the International Group of P&I Clubs.

In bilateral discussions with the Commission, ICS and the European Community Shipowners’ Associations (ECSA) have previously emphasised that the mutual insurance arrangements provided by the P&I Clubs are efficient and cost effective.

ICS Director of Legal Affairs, Kiran Khosla remarked: “ICS has always firmly stated that the current system of mutual third party liability insurance provided by the International Group continues to serve the best interests of ship operators and their customers extremely well, alongside serving the interests of claimants and the general public.

In particular, the mutual insurance arrangements provided by the Clubs enable the provision of the very high levels of insurance required under international liability conventions, under which compensation to claimants is generally paid regardless of fault and

without legal wrangles.”

Intercargo benchmarking bulkers

Intercargo has launched the latest edition of its annual publication, Benchmarking Bulk Carriers 2011-12.

This is the sixth edition of the report and contains statistical information relating to the world bulk carrier fleet, including Port State Control deficiencies and detentions, and an informative narrative and analysis of Negative Performance Indicators such as collisions, groundings and casualties during 2011.

“Our report again highlights the importance of a consistent approach to PSC inspections” said Rob Lomas, Intercargo Secretary General.

He continued, “PSC is generally an effective mechanism in promoting quality, and responsible, quality- orientated owners should not fear the consequences of targeting matrixes.” Intercargo expects renewed efforts to harmonise and standardise PSC inspection regimes.

Key findings in this year’s report are:

• Intercargo entered ships continue to out-perform industry averages.

• The average age of the global bulk carrier fleet dropped to 10.4 years.

• Cargo related casualties continue to cause great concern to the industry – one single incident in 2011 claimed 22 seafarers’ lives.

• Port State Control: the overall total number of bulkers detained continues to fall.

• Ports analysed still show significant variations in PSC deficiency.

To order the report email:

[email protected]

Braemar

Braemar Shipping Services plc (parent of ISU Associate Braemar Howells) has appointed Martin Beer as Finance Director, with effect from 15th October 2012. James Kidwell, CEO, will hand over his responsibilities as Finance Director on that date.

Mr Beer, 50, previously spent 21 years at Uniq Plc (formerly Unigate plc), where he

was Finance Director from 2002. He is a qualified accountant.

Hill Dickinson

Andrew Gray, formerly of Holman Fenwick Willan Singapore, has joined the Singapore office of Hill Dickinson as a Partner/Mariner. Mr Gray is a former Royal Navy deck officer, and an English solicitor and experienced casualty investigator, who has spent eight years of his legal career in Asia.

He covers all aspects of admiralty work, including casualty response and investigation, collision, grounding, general average, oil pollution, salvage, fire, piracy, cargo loss, unseaworthiness, unsafe port claims and general marine insurance claims. He is also qualified to work offshore with unrestricted access to most platforms and offshore installations world-wide.

Tony Goldsmith, head of Hill Dickinson’s Singapore office, said: “Andrew’s arrival strengthens our team considerably, making us one of the strongest shipping practices in Asia. It also sets us up well for the future, reinforcing our strong commitment to the region.”

Koffeman Consult/DEKRA

The two ISU associate members have joined forces to put on a one day seminar on recent developments in the salvage and emergency response industry on 31 October, in the Netherlands, with a range of experienced speakers including ISU Executive Committee members. For more information: www.koffeman-consult.com

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Nippon Salvage separates vessels following collisionThe cape size bulker PACIFIC CARRIER and the large container vessel, HYUNDAI CONFIDENCE collided and were wedged together in a “T-bone” shape off Yeosu, Korea (right). Nippon Salvage quickly mobilized its vessels, equipment and team but, despite the urgency, complained of the time consuming requirements of the authorities. The bulker was laden with 130,000 tonnes of coal.

The PACIFIC CARRIER needed particular care as the collision had resulted in a large hull fracture leading to loss of longitudinal strength. The two casualties were carefully separated using 10 tugs – including the KOYO MARU, NIPON MARU and CHOYO MARU. Following a diving inspection the HYUNDAI CONFIDENCE was redelivered to her owners.

The salvage operation continued on the bulker. It included discharge of substantial amounts of cargo to trim the vessel to a draught to allow for berthing at a place of refuge. Nippon experienced substantial

Blaze on MSC FlaminiaThe container vessel MSC FLAMINIA - 6732 teu - was in transit from the US to Antwerp and in mid-Atlantic when a fire broke out in one of its holds. Sadly a crew member lost his life; another was missing and a third man was seriously injured. The vessel was abandoned by the crew who were picked up soon after by the oil tanker DS CROWN.

difficulty not least as the flammable cargo started to combust spontaneously.

Unfortunately during the vessel’s lay-up following the collision she was subject to typhoon “Bolaven” and went aground and broke her back (see right). Nippon Salvage has been awarded the wreck removal contract and the operation is underway though it was initially hampered by typhoon “Sanba”.

SMIT Salvage was contracted to fight the fire and take the stricken vessel to a place of safety. Smit responded immediately by mobilizing salvage experts with fifi experience on the tug FAIRMOUNT EXPEDITION from Falmouth, UK. The tug ANGLIAN SOVEREIGN was also prepared with additional fifi equipment and despatched from Scotland. A third tug, the CARLO MAGNO was also

mobilised from Smit’s Rotterdam base. The fire fighting operation was very dangerous due to the presence of a large quantity of dangerous cargo onboard which could explode or combust.

Once the fire was controlled and the structural strength of the casualty was considered acceptable, the onward voyage to a safe port commenced. Shore-based authorities in the UK, France, Netherlands and Belgium were involved in lengthy negotiations before the convoy was given permission to pass through the English Channel and on to Wilhelmshaven in Germany where the vessel was redelivered to her owners on 10 September.

The incident again highlights the risks to containerships of fire - particularly within holds - and the dangers of possibly mis-declared hazardous cargo being stowed below deck. The vessel was eventually safely delivered in Wilhelmshaven, but the process to agree where she was allowed was difficult and highlights the ongoing issue for salvors of “places of refuge”.

HYUNDAI CONFIDENCE locked together with PACIFIC CARRIER following collision.

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Maritime labour Convention

The International Transport Workers’ Federation (ITF) and the International Shipping Federation (ISF) have welcomed the news that the ILO Maritime Labour Convention (MLC, 2006) will enter into force in August 2013. It follows the announcement that the Convention has been ratified by 30 ILO Member States, the latest being Russia and the Philippines.

ILO warned that shipowners will need to ensure they are ready before the new regime of global labour standards comes into force. Significantly, the MLC will be subject to port state control, including the potential for more detailed inspections if ships are thought not to comply, and the possibility of detention in serious cases of non-compliance or where hazardous conditions exist.

ITF and ISF emphasise that the MLC, 2006 should be seen as the ‘fourth pillar’ of shipping regulation, alongside the SOLAS, MARPOL and STCW Conventions, and is likely to be strictly enforced by flag states and port state control.

Turkey

Speaking at the ISU’s 58th General meeting held in Istanbul 25-26 September 2012, Vice Undersecretary, Turkish Ministry of Transport, Suat Hayri Aka (below) updated delegates on aspects of Turkish shipping.

He explained the monopoly arrangements for salvage in the Bosphorus and Sea of Marmara with all operations carried by the Turkish Directorate General of Maritime Safety. Mr Aka noted the growth of the Turkish-flagged fleet which has expanded due to the financial encouragement offered by a bunker fuel tax relief scheme.

Cargo volumes have grown significantly from 190m tonnes in 2002 to 364 m tonnes in 2011. Container numbers have risen from less than 2m teu in 2003 to

International Monitor

6.5m teu in 2011. Another huge growth area has been cruise liner traffic with less than 340,000 passengers in 2002 rising to an expected 2.2m in 2012. Turkey also makes and breaks ships. There are 71 building yards and 341 vessels were dismantled in 2011.

Chile

Chile is considering changes to its competition framework that could affect shipping. It is concerned that common practices in cargo shipping may distort competition.

But the International Chamber of Shipping (ICS) has lobbied the Chilean authorities to urge them to maintain the status quo. ICS said that practices such as conference and consortia agreements in liner trades serve shippers and their customers well and it believes there is a strong case for their exemption from the competition provisions in Chile to continue.

According to ICS, they allow shipping services to cope better with the severe and sudden imbalances in trade flows that are a feature of global shipping markets, including intense seasonal fluctuations. Chile, with its relative geographical isolation, and its need to deliver large volumes of exports to trading partners and to facilitate the importation of components and raw materials, is dependent on maritime trade. This cannot be achieved without reliable and stable shipping services. ICS’ position is that Chile should take full account of the recognition given by other competition authorities - such as in the US and Asia - to the benefits of current practices, such as liner conferences and consortia.

Japan and China

Tension between Japan and China has continued over the disputed Diaoyu or Senkaku islands.

There have been anti-Japanese protests across China and stand-offs at sea with water cannon fired on fishing boats. Analysts say that with a national election approaching in Japan, and a change of leadership due in China, politicians on both sides have refused to make concessions.

The multi-billion dollar trade between the two countries is at risk and some commentators have even suggested the

possibility of military conflict. The US has urged both sides to show “cool heads.”

International Pilotage

The International Maritime Pilots’ Association (IMPA) and the International Chamber of Shipping (ICS) have updated a brochure aimed at shipping companies and seafarers, reminding them of the vital need to ensure that ladders used for pilot transfers are safe and always rigged correctly.

The revised brochure, "Shipping Industry Guidance on Pilot Transfer" takes account of the latest amendments to the Safety of Life at Sea Convention (SOLAS) concerning pilot ladders, which came into effect on 1 July 2012.

IMPA Secretary General, Nick Cutmore, said: “Sadly, pilots continue to lose their lives as a result of accidents while boarding or disembarking from ships, and many more have been seriously injured.

We are therefore very pleased by the support we have received from ICS, as well as from other industry organisations and unions, in helping to promote the message to seafarers and to shipping company management about the vital need to rig pilot ladders safely in accordance with SOLAS.”

An electronic copy of the brochure can be downloaded from the IMPA and ICS websites.

Southern Africa

The International Maritime Organization (IMO) Sub Committee on Safety of Navigation has rejected a proposal to establish a new recommended 1000 mile long route for all ships in the Mozambique channel.

The proposal was put forward by Comoros, France, Madagascar, Mauritius, Mozambique, the Seychelles, South Africa and Tanzania. The objective of the proposal was to concentrate shipping into restricted lanes to reduce the risk of collision and grounding. Shipowners opposed the idea noting that at its narrowest, the channel was at least 200 miles wide.

The IMO Sub Committee has undertaken to address operating anomalies with Electronic Chart Display and Information Systems (ECDIS) in the region.

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ISU AGM 2012 Istanbul photographs

1. L-R Alan Scofield, Murat Dalyan, Charo Coll.

2. L-R Mario Mizzi, Iain Buchanan, Keith Rusby

3. Andreas Tsavliris (L), Christian Quillivic

4. Bosophorus cruise

5. Linda and Rob Wallis

6. Liz Lacey (L), Toosje Leusink

7. L-R Nancy Timmermans, Cappy Bisso, Darlene Bisso, Myra Tsavliris (seated), Milena Tsavliris, Andreas Tsavliris

8. L-R Ian Offland, Hendrik Land, Eline Muller, Nikolas Pappas

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The International Salvage Union (ISU) has for a number of years proposed the introduction of Environmental Salvage Awards. It believes that such awards, which would recognise, where applicable, the benefit conferred on the environment during salvage operations by the actions of a salvor, would be relatively simple to introduce and to assess. They would ensure a fair reward for salvors and ensure a fairer distribution of the costs of salvage awards between property and liability insurers.

ISU is therefore suggesting a change to the 1989 Salvage Convention to bring this about.

Salvors are not pursuing the matter in order to generate additional income. It is a proposal to modify the system to allow for specific recognition of environmental benefit in salvage cases.

OCEAN BREEZEIn mid-August, the bulker OCEAN BREEZE went aground off San Antonio, the main port for Chile’s capital, Santiago. She was carrying 36,000 tonnes of grain and was beached broadside to the weather, pounded by pacific breakers. NIPPON Salvage, supported by fellow ISU member, Chile’s REMOLCADORES ULTRATUG, quickly airlifted salvors to the vessel by helicopters to carry out initial inspections.

Internal transfer of bunkers was started to try to minimise the chance of spillage. The salvors’ assessment was that lightening the vessel by jettisoning the cargo was the most appropriate action to prevent an environmental disaster.

At the same time, ISU recognises that not all parties agree with its views and looks forward to the issue being discussed at the forthcoming Comité Maritime International meeting in Beijing. ISU President, Andreas Tsavliris, vice President, Leendert Muller and Legal Adviser, Rob Wallis, will attend the meeting.

Some commentators have pointed to the supposed difficulty of assessing an Environmental Salvage Award. The starting point is the assessment of property salvage awards. That is not a mathematical exercise and it is not an exact science. It is for this reason that the parties concerned talk about the award “bracket” - the range between the likely lowest and highest award/settlement figures.

There is no precise calculation possible when assessing a salvage award. The parties and/or the Arbitrator will consider the ten criteria set out in the Salvage Convention’s Article 13. Only two of these have a monetary value. Namely ‘the salved value of the vessel and other property’ and ‘the time used and expenses and losses incurred by the salvors’.

Given that only two out of ten criteria can be mathematically quantified, how do the parties ever manage to assess a salvage award or settlement? It comes down to the skill, expertise and experience of the parties and the Arbitrator dealing with such matters.

Likewise with the ISU proposals in

relation to an Environmental Salvage Award, there are criteria to be considered. In fact, as for a Property Award, there are ten criteria, and eight of those criteria are identical to the criteria applied when assessing the award against property.

The remaining two criteria are:

The award made against the property fund. This is to ensure there is no double counting between the award against property and the environmental salvage award.

The extent to which the salvor has prevented or minimised damage to the environment and the resultant benefit conferred.

Just as with the avoidance of loss or damage to the property, the parties concerned will not need to embark on a deep scientific and mathematical analysis of the environmental damage avoided or minimised, or in respect of the benefits conferred. It is common sense that damage avoided or minimised is a benefit, and is a good result.

So, Environmental Salvage Awards should be capable of assessment without stretching minds or wallets in the same way that Lloyd’s Form property awards have been assessed for over 100 years. Indeed Michael Howard QC, a leading English Admiralty Counsel and former Lloyd’s Arbitrator, has considered the matter in his Opinion which can be read on the ISU’s website, www.marine-salvage.com/environmental/

ISU pushes for introduction of Environmental Salvage Awards

However permission to jettison the cargo was denied by the authorities.

The operation is ongoing and the salvage team is presently considering other solutions such as lightering to other vessels. But it seems the most

Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 331 096 Email: [email protected]

For general enquiries contact: ISU, 2nd Floor St.Clare House, 30-33 Minories, London EC3N 1BP Tel: +44 20 3179 9222/3 Email: [email protected]

likely approach will be to build a piled causeway to the vessel from the beach to allow for cargo discharge to land.

The operation is subject to challenging sea and weather conditions.