Friday, 20 May 2011

Did NATO ships leave dozens of Africans to die of starvation at sea?

"Everyone was either praying or dying"

Earlier this month, NATO denied claims by the British newspaper ‘The Guardian’ that its navy left scores of migrants fleeing Libyan violence aboard a disabled boat in the Mediterranean to die of starvation. The story has created a furore in Europe, with critics alleging that NATO’s lethargic bureaucracy and indifference are responsible for 61 deaths at sea.


"Every morning we would wake up and find more bodies, which we would leave for 24 hours and then throw overboard," Abu Kurke, an Ethiopian survivor, told the Guardian. "Everyone was either praying or dying."

The Guardian says that 62 Africans died out of a total of 72 men, women and children in the boat that drifted for 16 days in late March and early April this year. The refugees from Eritrea, Ethiopia, Nigeria and Sudan had earlier received some food and water from a helicopter after its Ghanaian Captain called a refugee organisation in Rome, but that soon ran out. The organisation had informed the Italian coast guard about the refugees’ plight; the report alleges that nothing was done despite the helicopter indicating to the refugees that help was on its way. Contact was lost with the boat after the satellite phone battery ran out.

Out of fuel and drifting many days later, survivors say that two aircraft were seen approaching from a nearby warship that the Guardian believes was the French aircraft carrier Charles de Gaulle. The refugees held up two babies in a vain attempt to indicate their distress as the aircraft flew low over them, but the pilots flew away.

Running out of food, the migrants started dying until just ten were left. Included were the parents of the two infants- the children died later. One survivor died soon after the boat eventually docked back in Zlitan, near Misratah, Libya, on April 10. Kurke says he survived by drinking his own urine and eating toothpaste.

The violence in Libya has created huge additional dangers for economic migrants from Africa, an estimated 30,000 of who are said to have made the voyage this year from Libya or Tunisia after paying smugglers up to 3000 US dollars apiece. For years, the Libyan government allowed the country to be used as a launch for refugees fleeing to Europe- usually Italy- across the Mediterranean. UN officials say that about 800 migrants from Africa have already died at sea. A boat carrying 600 desperate migrants capsized off the Libyan coast last week; only 400 were rescued. Two other boats with hundreds of passengers each have disappeared in recent weeks, and 250 died on April 6 when their boat sank off the island.

NATO has denied the Guardian’s claims with regard to this latest tragedy. NATO spokeswoman Carmen Romero told reporters in Brussels, "NATO vessels are fully aware of their responsibilities with regard to international maritime law on safety of lives at sea." The French claimed at first that the ‘Charles de Gaulle had’ was not in the area, but then refused comment when the Guardian produced documents that showed that the ship had indeed been there.

Many are appalled at this latest incident, because survivors claim that NATO aircraft spotted them on two different occasions and ignored them. Moses Zerai, the Rome-based priest called by the boat’s Captain says, "This crime cannot go unpunished just because the victims were African migrants and not tourists on a cruise liner."

Refugee rights campaigners have demanded an investigation into the deaths. UNHCR, United Nation's refugee agency, has asked for more cooperation between commercial and military vessels in the Mediterranean. “The Mediterranean cannot become the wild west,” said spokeswoman Laura Boldrini. “Those who do not rescue people at sea cannot remain unpunished.”
.

.













Monday, 16 May 2011

Baltic launches the BALTEX

The Baltic exchange, home of the bellwether Baltic Dry Index and others, will soon roll out a new index – the Baltex. The UK’s Financial Services Authority (FSA) has authorised its subsidiary Baltic Exchange Derivatives Trading Ltd (BEDT) to run a Multilateral Trading Facility to offer trading in Forward Freight Agreements (FFAs). The Baltex, a central screen based trading solution for the dry FFA market, will go live shortly, a Baltic press release said after a meeting of their Board on May 4.


Baltic Exchange chairman Mark Jackson said, “In establishing and funding the Baltex system, the Baltic continues its core role in facilitating the development of the shipping marketplace in all its forms. This is the right response to broad market developments and emerging regulatory change.”

Baltic Exchange chief executive Jeremy Penn said that the Baltex would be the only FFA trading platform authorised by the FSA, adding, “We are pleased to have finally received the FSA’s approval and Baltex will be opening for business very soon. We have held back the launch to allow companies wishing to participate enough time to deal with the formalities of signing documentation.”

FFAs are essentially derivatives- risk management tools that derive their value from underlying assets. In the shipping industry, the underlying asset is the freight rate for a specific physical trade route. FFAs are meant to allow interested parties to hedge exposure to the freight market and so manage their risks. Started in the early 90’s, FFAs today have evolved into more complex instruments today in line with other derivates markets; like other derivates markets, they have attracted many speculators as well.

The Baltic Exchange says that the Baltex will be “underpinned by the highest supervisory and compliance standards”, and a high level of market support. “This is a trading system created by the shipping market and presents a unique opportunity for all freight derivatives stakeholders to benefit from faster execution and a more efficient transmission to clearing. It has been designed to attract new financial and commodity-orientated participants who prefer to trade in a regulated environment,” a statement says.

The Baltex, developed over the last two years, will trade Dry Bulk voyage FFAs and Time Charter FFAs- both Trip and Average- for frequented trade routes. Based on technology developed by Elysian Systems , the BEDT run system screens will provide FFA prices live; the system will also support straight through processing to international clearing houses across the world, displaying real time information to participants but keeping the trader’s identity secret to all except the nominated broker. The Baltex will have a custom made screen layout with warnings and can be modified to individual trading needs. It will also have a ‘view only’ function for those who want to see market conditions without trading. The exchange hopes that the genesis of the user friendly system, developed in collaboration with the market, will make it a popular choice for brokers, ship owners and other interested parties.

FFAs conventional thinking says is that the market for FFAs will soon come to surpass the underlying physical market in terms of dollar value. Critics point out that the mismanagement of broader derivates was responsible in large part for the near collapse of the international financial system that hit the world recently- and that FFAs are today used similarly by many, more for speculation rather than hedging risk. That may be true, but FFAs are here to stay anyway; perhaps a well regulated Baltex will help keep malpractices out of the system.

Thursday, 5 May 2011

Hostage sailor’s distraught wife questioned by cops for ‘threat SMS’

Sampa Arya says she threatened to kill herself to get justice for husband.





Sampa Arya, the wife of the hostage Third Officer Ravinder Singh of the MV Suez, has been questioned by police after she allegedly sent a ‘threat message’ to a member of leader Rahul Gandhi’s staff in early April. Sampa, a teacher with a three year old son, has been running from pillar to post for many months in Delhi trying to garner government support to rescue her husband from the clutches of Somali pirates. She has often been critical on television and otherwise of the Government’s response to her desperate plight.


Sampa Arya’s husband Ravinder Singh Gulia is one of the 22 crew aboard the MV Suez that was taken hostage by Somali pirates on August 2 last year. Red Sea Navigation, the Egyptian owners, have long declared inability to pay ransom and the crew is reported to be in dire straits.

Sampa started knocking on political doors in Delhi last year. In March this year, a visibly distressed Sampa had pleaded with Congress Leader Sonia Gandhi on behalf of the Indian hostages, telling reporters, “We have knocked on several doors, including that of the Prime Minister, but to no avail. We beg Sonia to get the government to help save our husbands, children and brothers from being killed.” Sampa had accused the government of indifference at the time, saying that their response was “shocking.”

The authorities say that Sampa sent a threat SMS this month from her hometown Rohtak to one of Rahul Gandhi’s aides, who then lodged a police complaint at the Tughlaq Road police station in Delhi. The cops traced the number, discovered it was hers and questioned her at length. Sampa was later released by the police who said that she was desperate to get justice for her husband and was “harmless.”

A senior police officer said, “A team was sent to Arya’s house and we interrogated her at length. We had received a complaint and we passed it on to our counterparts in Haryana. We did not find anything amiss after we questioned her.”

Sampa has confirmed the incident. The Indian Express quotes her as clarifying, “Since last year, I have been meeting all leaders, including the Prime Minister, but nothing has resulted from those meetings. I even went to Rahul Gandhi’s office. They were not ready to give me his phone number, but I overheard someone in his office dictating the number of his personal assistant. I noted it down and sent an SMS that I will kill myself if nothing is done.”

“While there was no news of my husband, police came to my house on April 15 and questioned me at length. They wanted to know how I got the number and why I sent the SMS,” she said.

“I told them that I will go to any length to get justice for my husband.”
.

.


Wednesday, 4 May 2011

“Canal Istanbul”: crazy, magnificent or an election fantasy?

Turkish Prime Minister says project will dwarf Panama and Suez canals.




Turkish Prime Minister Recep Tayyip Erdogan is taking forward what he calls his "crazy and magnificent" plan to make a man made canal connecting the Sea of Marmara and the Black Sea. An alternative route for the thousands of ships that today use the Bosphorus Straits annually, the ambitious “Canal Istanbul” will be 30 miles long, 25 metres deep and 150 metres wide, and, according to him, an unparalleled feat of engineering “We are building the canal of the century, a project of such immense size that it can't be compared to the Panama or Suez canals," he said.

The canal will turn the city of Istanbul into “two peninsulas and an island,” Erdogan says, and will
see as many as 160 ships a day sailing through it. Declining to give estimates on the Canal Istanbul’s cost or the exact location to avoid land speculation, Erdogan said that planning for the canal will take two years. Istanbul Mayor Kadir Topbas estimates that the project will cost more than $10 billion and take eight years to build.

"Istanbul will become a city with two seas passing through it," Erdogan announced at an election rally recently.

Turkey wants to keep shipping, particularly tankers, away from the 19 mile long Bosporus that winds through the city of Istanbul and its 12 million inhabitants. A winding and difficult waterway to navigate, the Bosphorus is one of the world’s busiest chokepoints for oil laden ships. About 3 million barrels a day are sent through it on ships. Besides Russia, Bulgaria, Ukraine, Romania and Georgia use the Straits regularly. Erdogan says that 139m tons of oil, 4m tons of liquefied petroleum gas and 3m tons of chemicals pass through the Bosphorus annually, creating a huge environmental and safety risk to the densely populated city.

"Bosphorus traffic will be reduced to zero," he said. "Water sports will take place on the Bosphorus, transport within the city will be established and Istanbul will return to its former days."

Opposition leaders in Turkey are sceptical about Erdogan’s plan, some dismissing it as an election fantasy or an invitation to corruption. Republican People’s Party head Kemal Kilicdaroglu was dismissive. "This country needs men who think and produce, but not crazy men. This project is not about people. It's about making AK (Erdogan’s party) supporters rich." Nonetheless, environmental groups and analysts have given a cautious green signal to the project, saying it is eminently achievable.

The Istanbul Canal will allow VLCCs to enter the Black Sea, therefore reducing demand for small tankers. “If this canal is built and if the infrastructure in the Black Sea follows in terms of port expansion, bigger vessels could absorb the volumes of smaller ships,” Bloomberg quotes analyst Luis Mateus as commenting. “The canal would also alleviate congestion and have faster transit times, but the industry needs to follow and adapt itself to a change in transport dynamics.”

Erdogan, a former mayor of Istanbul, says he wants to have the project well completed by 2023, the centenary of the declaration of the Turkish Republic. “Turkey deserves a crazy, magnificent project like this by 2023,” he says.

Thursday, 28 April 2011

Piracy drives Indian coal importers away from West Coast.

Recent reports say that Indian coal buyers are looking to Russia and Australia for the much in demand commodity, because Somali pirate attacks on ships from South Africa and further west now involve higher risk and insurance costs that make the enterprise near unviable. The recent declaration by Lloyds that says the West Coast of India lies in a war zone will only reinforce buyers decisions, warn experts.


The move comes as analysts warn that Somali pirate attacks will widen, get even bolder, more organised and aggressive. "Given the amounts they have made recently, I would anticipate ever-better armed and trained pirate crews at the top end as well as a proliferation of wannabes at the lower end," said J. Peter Pham, Africa Director with U.S. think tank ‘The Atlantic Council’. Those in the business say that NATO actions in Libya will continue to divert naval resources away from the Indian Ocean, making sailing through this region even more hazardous. "NATO & EU NAVFOR were struggling with finding some slack to send some ships after pirates in the 'deep' Indian Ocean. After Libya, that's not going to happen," said Michael Frodl, founder and head of maritime risks consultancy C-LEVEL.

Indian coal demand has been increasing exponentially in recent times. More than half its electricity generation capacity is coal-based and growing as the country sets up more power plants to feed the never ending demand for power. Coal India, the world’s largest coal producer, supplies 80 percent of this demand, but its production targets this year have dropped 7 percent. The Government had said last month that Indian coal imports could shoot up 70 percent in 2011/12 to 142 million tonnes. Much of this demand has been traditionally fed by South Africa- close to a third of that country’s entire coal exports came to India last year.

But that is changing. "We are having to evaluate not just the least risky routes to take from South Africa to India but also the best Indian ports to discharge and also now, where are the least risky places to pick up a vessel to begin its voyage to South Africa," said an official at Indian coal importer Comtrade. With piracy hitting the Indian West coast, traders are looking at South and East India for unloading coal, and at Russia and Australia instead of South Africa to buy. Many importers say they have already done so."Piracy is a real and significant cost added to South African coal - around $2 a tonne. Given the quantities being shipped, this is a lot of money," the Comtrade official said. An official at Coal and Oil, a large Indian importer says that there are other factors that influence the decision. "Even the cost of bunker fuel at Richards Bay is higher than at Newcastle, so we're all looking hard at Australia and to a lesser extent, Russia."

Unfortunately for Indian importers- and not just of coal- security experts expect piracy to spread to the Southern coasts of India and Sri Lanka and east to Malacca. "I do expect to see more attacks on the Cape to Malacca as well as Cape to Bay of Bengal -- because we expect to see more attacks south of India and Sri Lanka," said C-Level’s Frodl. If this happens, buying coal from Australia may not help too much.
.

.