UN empowers land operations against Somali pirates. The United Nations Security Council has unanimously passed a resolution authorising international land action against Somali pirates. Secretary of State Condoleeza Rice, who said that there was need to send a “strong signal to combat the scourge of piracy and end the impunity of Somali pirates”, hailed the US initiated plan. Resolution 1851 authorises states to "take all necessary measures that are appropriate in Somalia against acts of piracy and armed robbery at sea.” Concern about the pirates expanding their operations southward are said to have promoted this move. The US has also proposed the setting up of a contact group on Somali piracy. Meanwhile, the Pentagon has warned of problems with military operations inside Somalia; analysts feel that the US will think twice before it risks a repeat of the famous ‘Black Hawk Down’ incident of 1993 in which 18 American soldiers lost their lives. Ms. Rice told the UN session that it was “time to authorize a UN peacekeeping operation" in Somalia. This is the first UN resolution authorising use of force on land in Somalia in response to piracy.
Entire Indian coastline to the covered by Radar and additional Coast Guard stations in the aftermath of the Mumbai terror attack. The Central Government has cleared up to nine additional Cost Guard stations, radar installations and speedboats in an attempt to shore the country’s maritime security. Defence Minister Antony has also stressed the need for better coordination between the intelligence agencies, the Indian Navy and the Coast Guard. Intelligence sources say that the government seems to have realised the urgency needed to take these measures on a war footing. It has been pointed out that Indian nuclear installations are situated along the coastline, and a terrorist strike there would be catastrophic. Indian Navy hands over 12 Somali pirates and 12 Yemeni fishermen to the Yemeni Coastguard at Aden. Analysts are relieved that the initial reports saying that the Yemeni’s were pirates have now turned out to be false. It turns out now that the fishermen’s’ boats had been attacked by pirates and they were held hostage while their boats were being used to hit merchant ships. The government in Sana’a had officially requested India to hand over the pirates to Yemen so that action could be taken against them. The legal issues in connection with captured suspected pirates are murky, and coalition navies have been grappling with ways to deal with these. Yemen claims it has the right to try Somali pirates because their arrest took place inside Yemeni waters.
Cosco hit by $577 million derivative loss. The Chinese company is said to have been hit hard by mistimed freight forward agreement calls. FFA agreements made as hedging tools have been widely used in the industry, although many operators indulged in heavy speculation amidst soaring freight indices in last year’s boom. The sudden and vicious fall in freight markets in the last six months caught many wrong footed. Cosco said that losses of up to 5.38 billion Yuan on freight forward agreements were partly offset by gains of 1.43 billion Yuan on discharged agreements. To add to its woes, the logistics and shipping company’s container arm has been hit hard by falling demand. Others like Air China Ltd. and Citic Pacific Ltd. have also suffered huge losses on derivatives; ironic, when one considers that FFA agreements were actually meant to guard against volatility.
Indian shipping companies ask government for a bailout, reports Livemint, saying that the Indian maritime industry has asked Prime Minister Manmohan Singh, who is also in charge of the finance ministry, for a slew of sops for the beleaguered industry, including easy credit, export incentives and lower taxes. “We are seeking a stimulus package from the government to maintain the current share of Indian vessels carrying international cargo of around 12/15%,” Livemint quotes Atul Agarwal of Mercator Lines as saying. INSA has reportedly sent a letter to Mr. Singh underlining the need for the government to take speedy action. The move comes as the industry struggles with funding for its expansion plans and replacement requirements to modernise its aging fleet. Indian ship owners have also demanded lower taxes in line with international norms to help them compete against foreign shipowners. Meanwhile, financial newspapers report that Indian shipping companies have put their expansion plans on hold. SS Kulkarni, secretary of INSA has admitted that there is a possibility of cancellation of orders unless the situation improves. At least SCI and Great Eastern have denied these reports, saying that they have no such plans at present. Indian firms have placed orders for 1.3 Billion dollars in the last two years; observers say that unless commodity prices improve, absorbing this additional capacity will be very difficult.
First cargo ship runs (only partly) on solar energy. Japanese Nippon Yusen KK and Nippon Oil Corporation have launched a merchant vessel that runs partly on power from the sun. The solar panels on board, reported to cost almost 1.7 million dollars, provide just 0.2 percent of the propulsion energy required. Engineers say that this is an excellent start for an industry that is responsible for up to 3 percent of greenhouse gas emissions globally. The move comes as the IMO plans to reduce sulphur emissions in a phased manner by 2025, and as States in the US, notably California, tighten up further on the use of bunkers in port and along the coast. A renewable source of energy would be a path breaking alternative.
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Friday, 26 December 2008
Wednesday, 24 December 2008
Managing Climate Change.
Mumbai, 19 December: The United Kingdom’s apex representative body for commercial shipping, the Chamber of Shipping, announced this week that it is recommending a global and open emissions trading regime in response to the threat of climate change. Martin Watson, President of the Chamber, said, “This is a bold and far reaching decision that gives a lead to the rest of the shipping world. We recognise that shipping, which carries 80 per cent of all world trade goods, and 90 per cent of the UK’s trade, must make a significant contribution to the battle to reduce mankind’s carbon emissions.
Commercial shipping remains a global industry that has been, so far, one of the few to remain outside the purview of any country’s carbon emission reduction legislation. This is because the complex web of global operations, ownership and registry makes it unclear where exactly the emissions should be allocated. The Chamber of Shipping recognises this and sees a global regime as the best way forward; it also feels that an international law will stop ships being moved between legal jurisdictions to avoid carbon regulation.
Shipping is the most ecologically friendly way of transporting goods and therefore needs to be encouraged. Mr. Watson quoted in a media release, says, “The carbon cost of carrying a ton of freight by ship is 10 times less than by road, and 100 times less than by air. Shipping is by far the most carbon friendly transport mode. However, because so much freight is carried by sea, shipping does produce nearly three per cent of total emissions. We need to take whatever action is needed to try to limit those emissions, but without accidentally causing freight to be shifted from ships to other, less carbon friendly forms of transport. That would be catastrophic in terms of total emissions.”
Substantial improvements with new technologies have been made by the industry. Economies of scale and applied research have resulted in huge improvements; a container ship today emits about 25% of the carbon dioxide that a box ship did in the 1970’s, while it carries ten times the number of containers. In fact, the maritime industry has been far ahead in promoting carbon efficiency compared to others.
The Chamber’s thinking is in line with IMO moves to create a ‘ship design index’ that will encourage technical innovation for new ships as well as the UK Government’s ‘Climate Change Act’ adopted last month. The Chamber believes, that “shipping can most effectively contribute through emissions trading. This will enable ship operators to decide whether to invest in emissions reducing technology/research or operating practice and thereby qualify for carbon credits. Alternatively, ship operators can decide to support significant improvements in efficiency in high polluting industries, particularly those in the developing world.”
Mr Watson said, “Although an emissions trading scheme for the shipping industry remains a concept rather than a defined path, we believe that the industry, if it wishes to remain in control of its own destiny, must decide upon a direction of travel and strive to deliver it. I believe that if we can provide leadership and make a coherent and compelling case then other national associations will follow.”
Environmental groups have welcomed the Chamber’s bold move. Peter Lockley, Head of Transport Policy at WWF UK said that he was pleased at the initiatives. “If designed well, the scheme would put a price on maritime carbon emissions, speeding up the drive for cleaner ships and helping to pay for low carbon development in poorer countries. It would position shipping as a progressive and responsible industry”, he said.
Commercial shipping remains a global industry that has been, so far, one of the few to remain outside the purview of any country’s carbon emission reduction legislation. This is because the complex web of global operations, ownership and registry makes it unclear where exactly the emissions should be allocated. The Chamber of Shipping recognises this and sees a global regime as the best way forward; it also feels that an international law will stop ships being moved between legal jurisdictions to avoid carbon regulation.
Shipping is the most ecologically friendly way of transporting goods and therefore needs to be encouraged. Mr. Watson quoted in a media release, says, “The carbon cost of carrying a ton of freight by ship is 10 times less than by road, and 100 times less than by air. Shipping is by far the most carbon friendly transport mode. However, because so much freight is carried by sea, shipping does produce nearly three per cent of total emissions. We need to take whatever action is needed to try to limit those emissions, but without accidentally causing freight to be shifted from ships to other, less carbon friendly forms of transport. That would be catastrophic in terms of total emissions.”
Substantial improvements with new technologies have been made by the industry. Economies of scale and applied research have resulted in huge improvements; a container ship today emits about 25% of the carbon dioxide that a box ship did in the 1970’s, while it carries ten times the number of containers. In fact, the maritime industry has been far ahead in promoting carbon efficiency compared to others.
The Chamber’s thinking is in line with IMO moves to create a ‘ship design index’ that will encourage technical innovation for new ships as well as the UK Government’s ‘Climate Change Act’ adopted last month. The Chamber believes, that “shipping can most effectively contribute through emissions trading. This will enable ship operators to decide whether to invest in emissions reducing technology/research or operating practice and thereby qualify for carbon credits. Alternatively, ship operators can decide to support significant improvements in efficiency in high polluting industries, particularly those in the developing world.”
Mr Watson said, “Although an emissions trading scheme for the shipping industry remains a concept rather than a defined path, we believe that the industry, if it wishes to remain in control of its own destiny, must decide upon a direction of travel and strive to deliver it. I believe that if we can provide leadership and make a coherent and compelling case then other national associations will follow.”
Environmental groups have welcomed the Chamber’s bold move. Peter Lockley, Head of Transport Policy at WWF UK said that he was pleased at the initiatives. “If designed well, the scheme would put a price on maritime carbon emissions, speeding up the drive for cleaner ships and helping to pay for low carbon development in poorer countries. It would position shipping as a progressive and responsible industry”, he said.
Saturday, 20 December 2008
Industry snapshots
Indian warship INS Mysore captures 23 pirates in Gulf of Aden. In the largest such capture, 12 Somali and 11 Yemeni pirates and a large cache of arms, ammunition and equipment was seized. These included seven AK-47s, three assault rifles and magazines, a RPG launcher with rockets, grenades, a GPS set and a mobile phone. The skirmish occurred on 13 December when an Ethiopian ship ‘Gibe’ was attacked and sent out a distress message. A Chetak helicopter with marine commandos was launched from the warship which then intercepted the hijackers as they were planning to board the Gibe. The pirates abandoned their attack on seeing the helicopter and boarded their mother ship, the dhow “Salahaddin’ in the vicinity. The Mysore forced the dhow to stop, boarded her and arrested all the pirates. The Mysore, a replacement for the frigate ‘Tabar’ which was in action last month, will resume its patrolling duties after handing over the criminals to appropriate shore authorities.
The United States seeks support at the UN Security Council to attack pirate bases on land. U.S. envoy Alejandro Wolff, said, "We will leave no stone unturned in dealing with this issue." Any military action on land would be undertaken with the agreement of the Somali government, he said. A U.S. draft resolution calls for "all necessary measures ashore in Somalia," including air attacks, to tackle piracy. It also calls for the maritime community to resist paying ransoms for hijacked ships. Some observers say that the UNSC needs to do more to bring stability to Somalia, a country which has had no government since 1991. The Nigerian ambassador to the UN feels that, "It is because we are not engaged on the ground that we see so much threat on the seas."
Maersk warns shipping industry of tougher times ahead. A senior manager at Maersk warns that 2009 will be critical for the company; the Danish giant has reportedly laid up eight 6500 TEU box ships recently in the Far East for an unspecified time. Michel Deleuran, head of network and product at Maersk, said: “We are certainly seeing a dramatic slowdown. The decline we are seeing in recent weeks is faster and deeper than what most people had expected only a few months ago. If we don't see improvements, we will be laying up more. The failure of a big shipping group cannot be ruled out. ” Rates on the Far Eastern/US routes have been slashed by up to 25% recently, strangling profits and cash flows across the trade, which has dropped 12% in November. Chinese ports and Hong Kong are reporting reduced volumes; rumours are rife in the market that container manufacturers have stopped production as a result. Lloyd’s list says that the box ship market is particularly vulnerable as it was anticipating a capacity expansion of 50 per cent over the next three to four years. At present, over a hundred container ships are reported to be without cargoes.
World Bank says global trade will shrink for the first time since 1982, a statement which will send shudders down the spine of maritime operators as they recall the 1980’s depression. The slowdown, a result of shrinking demand and fall in economic activity will include developing economies. The apex bank says, in its annual report ‘Global Economic Prospects’, that the credit crunch is adding to trade bottlenecks, and that a slowdown of demand in developed economies is continuing to stymie foreign investment worldwide. Meanwhile, the proportion of India's exports going to the US fell from 17.1 per cent in 2004 to 15.3 per cent in 2007 but the proportion going to China rose from 5.5 per cent to 8.4 per cent, making analysts optimistic that Asia may take up some of the slack.
Hapag Lloyd cruise ship ‘Colombus’ evacuates passengers to avoid risk of piracy. Almost 250 passengers will disembark at Hodeidah, Yemen and rejoin the Colombus at Salalah, Oman, after spending a few days in five star comfort in Dubai as the cruise ship transits through the pirate infested Gulf of Aden with minimum crew. The company called it a "precautionary measure", but observers point out that the recent attack on the Nautica has made operators jittery. A cruise ship hijack with headlines splashed across the world’s newspapers would kill business. In addition, the German foreign ministry has issued a travel warning for the area. A mariner noted wryly, “I wish ship owners would give us sailors the same option.”
Amidst the gloom and doom, some good news: tankers may do better, according to industry experts. New York brokers Poten & Partners have pointed out that tanker rates have stood up ‘reasonably well’, even as dry bulk rates have collapsed. Experts believe that most new build tankers are ordered at premier yards which should withstand the downturn better. Poten feels that although newer yards may be hit, the situation may be well controllable. “More importantly, market sentiment has given little indication that ship owners are itching to walk away from commitments.” Poten told Seatrade Asia.
Ralph's missing breasts found. Marex had earlier reported of the devastating loss of more than 100,000 pairs of missing inflatable breasts shipped to an Australian magazine, Ralph. The breasts were intended to be given away with the men’s magazine’s January edition. It now transpires, a week later, that Chinese officials had lost the documentation on the breasts, which were then loaded on the wrong ship and landed up at the wrong port: Melbourne instead of Sydney. Editor Santi Pintado was relieved that the breasts had been found, but complained that the mix up had cost Ralph $30,000. "You'd think the Chinese economy was in enough trouble without misplacing 130,000 pairs of boobs,” he said.
The United States seeks support at the UN Security Council to attack pirate bases on land. U.S. envoy Alejandro Wolff, said, "We will leave no stone unturned in dealing with this issue." Any military action on land would be undertaken with the agreement of the Somali government, he said. A U.S. draft resolution calls for "all necessary measures ashore in Somalia," including air attacks, to tackle piracy. It also calls for the maritime community to resist paying ransoms for hijacked ships. Some observers say that the UNSC needs to do more to bring stability to Somalia, a country which has had no government since 1991. The Nigerian ambassador to the UN feels that, "It is because we are not engaged on the ground that we see so much threat on the seas."
Maersk warns shipping industry of tougher times ahead. A senior manager at Maersk warns that 2009 will be critical for the company; the Danish giant has reportedly laid up eight 6500 TEU box ships recently in the Far East for an unspecified time. Michel Deleuran, head of network and product at Maersk, said: “We are certainly seeing a dramatic slowdown. The decline we are seeing in recent weeks is faster and deeper than what most people had expected only a few months ago. If we don't see improvements, we will be laying up more. The failure of a big shipping group cannot be ruled out. ” Rates on the Far Eastern/US routes have been slashed by up to 25% recently, strangling profits and cash flows across the trade, which has dropped 12% in November. Chinese ports and Hong Kong are reporting reduced volumes; rumours are rife in the market that container manufacturers have stopped production as a result. Lloyd’s list says that the box ship market is particularly vulnerable as it was anticipating a capacity expansion of 50 per cent over the next three to four years. At present, over a hundred container ships are reported to be without cargoes.
World Bank says global trade will shrink for the first time since 1982, a statement which will send shudders down the spine of maritime operators as they recall the 1980’s depression. The slowdown, a result of shrinking demand and fall in economic activity will include developing economies. The apex bank says, in its annual report ‘Global Economic Prospects’, that the credit crunch is adding to trade bottlenecks, and that a slowdown of demand in developed economies is continuing to stymie foreign investment worldwide. Meanwhile, the proportion of India's exports going to the US fell from 17.1 per cent in 2004 to 15.3 per cent in 2007 but the proportion going to China rose from 5.5 per cent to 8.4 per cent, making analysts optimistic that Asia may take up some of the slack.
Hapag Lloyd cruise ship ‘Colombus’ evacuates passengers to avoid risk of piracy. Almost 250 passengers will disembark at Hodeidah, Yemen and rejoin the Colombus at Salalah, Oman, after spending a few days in five star comfort in Dubai as the cruise ship transits through the pirate infested Gulf of Aden with minimum crew. The company called it a "precautionary measure", but observers point out that the recent attack on the Nautica has made operators jittery. A cruise ship hijack with headlines splashed across the world’s newspapers would kill business. In addition, the German foreign ministry has issued a travel warning for the area. A mariner noted wryly, “I wish ship owners would give us sailors the same option.”
Amidst the gloom and doom, some good news: tankers may do better, according to industry experts. New York brokers Poten & Partners have pointed out that tanker rates have stood up ‘reasonably well’, even as dry bulk rates have collapsed. Experts believe that most new build tankers are ordered at premier yards which should withstand the downturn better. Poten feels that although newer yards may be hit, the situation may be well controllable. “More importantly, market sentiment has given little indication that ship owners are itching to walk away from commitments.” Poten told Seatrade Asia.
Ralph's missing breasts found. Marex had earlier reported of the devastating loss of more than 100,000 pairs of missing inflatable breasts shipped to an Australian magazine, Ralph. The breasts were intended to be given away with the men’s magazine’s January edition. It now transpires, a week later, that Chinese officials had lost the documentation on the breasts, which were then loaded on the wrong ship and landed up at the wrong port: Melbourne instead of Sydney. Editor Santi Pintado was relieved that the breasts had been found, but complained that the mix up had cost Ralph $30,000. "You'd think the Chinese economy was in enough trouble without misplacing 130,000 pairs of boobs,” he said.
Saturday, 13 December 2008
S. Korean jail terms for ‘Hebei Spirit’s’ Captain Chawla and Chief Officer Chetan
“Incomprehensibly vindictive”, says ITF
Mumbai 11 December: The international shipping community reacted with rage, disgust and dismay after a South Korean court jailed Capt. Jasprit Chawla and Chief Officer Syam Chetan of the ill fated Hebei Spirit on Wednesday. The two officers of the tanker involved in an oil spill in South Korea in December 2007 were convicted of criminal negligence and violating anti pollution laws by the Daejeon District Court, which overturned a lower court’s ‘not guilty’ ruling.
The court jailed Capt Chawla for 18 months and fined him Won20million (US$ 14000) after finding him guilty on two charges related to the oil spill. The court said Capt Chawla should have gone ‘full astern’ to drag anchor to prevent the collision with the drifting crane barge Samsung No 1 that had earlier broken its tow.
Mr. Chetan was sentenced to eight months in prison and fined Won10m (US$ 7000). The court said that Mr. Chetan should have been more vigilant and called the master by 0550 hours. They also criticised Chetan for pumping inert gas into the cargo tanks and taking too long to transfer oil. The owner of the tanker, Hebei Spirit Shipping Co., was fined 30 million won (US$21000), the maximum allowed under South Korea's pollution laws.
The court said that the ship failed to take sufficient measures to limit the spill. The use of inert gas was also criticised, the court saying that this had increased the spillage of oil when the explosive risk was low. In addition, the ruling stated that the crew of the tanker should have ballasted to create a ten degree list to decrease the oil spill, and that the time taken to transfer the oil was ‘too long’.
Reacting angrily to the verdict, ITF maritime coordinator Mr. Stephen Cotton went on record to say, “This is not justice. It’s not even something close. What we have seen today is scapegoating, criminalisation and a refusal to consider the wider body of evidence that calls into question the propriety of the court. This decision is incomprehensibly vindictive and will impact on all professional mariners”.
Speaking to Lloyds List, NUSI general secretary Abdulgani Serang angrily said, “We are furious. We condemn this decision. It is unfair and unjust. There is a strong possibility Indian seafarers will not sail on ships to South Korea. The seafaring and shipping communities are deeply disturbed. Reactions are bound to follow.”
Office bearers of NUSI, FOSMA, INSA, MASSA and MUI are expected to attend a meeting on the weekend to decide on the Indian maritime community’s future course of action.
In a further slap in the face of world opinion, the appeal court simultaneously reduced the prison sentences of the two tug captains involved in the accident. One of them is now sentenced to two and a half years instead of the original three, while the other one will spend just eight months in prison instead of the original sentence of one year.
Bob Bishop, the CEO of V.Ships, the manager of the Hebei Spirit, lambasted the verdict, "This will surely go down as one of the most disgraceful examples of a miscarriage of justice in a supposedly advanced nation state. For Captain Chawla and Chief Officer Chetan to be sentenced to prison terms and led from the court in handcuffs is a disgrace and insult to the whole shipping industry." VShips will appeal to the South Korean Supreme Court as soon as possible.
The accident occurred a year ago after the ‘Samsung No 1’ broke its tow and collided with the fully loaded Hebei Spirit’ at anchor. Three tanks ruptured on the tanker and more than 10000 tonnes of oil caused South Korea’s worst environmental disaster. (See Box)
Indian media and Lloyd’s list have reported that representatives of Samsung Heavy Industries visited some crewmember’s homes in India and China earlier this year, promising them jobs abroad and leaving them gifts as ‘souvenirs’ in return for testifying in South Korea.
Many international industry bodies made angry statements condemning the South Korean ruling yesterday. InterManager general secretary Morel has called the ruling unacceptable. He said, “They (two officers) have behaved professionally throughout this sorry affair and are being made scapegoats by South Korea. We believe that the evidence against them was flawed and manipulated and we will campaign vigorously on their behalf to overturn this unfair decision.”
InterTanko, which had earlier sent a letter to South Korean President Lee Myung Bak urging that the Daesan Court of Appeal ‘carefully consider’ all evidence, expressed its anguish at the verdict. “Intertanko expresses disappointment with the Korean authorities given all the efforts of owners, managers and the industry in general which seem to have fallen on deaf ears,” said Peter Swift managing director of Intertanko.
BIMCO has voiced its concerns too, and the Singapore Shipping Association and the Asian Shipowners Forum have echoed this sentiment, calling it “a clear violation of the principle set forth in the IMO guidelines on the Fair Treatment of Seafarers in the Event of a Maritime Accident.” The Hong Kong Shipowners’ Association added its voice of condemnation, saying, “The ever increasing criminalisation by nations from Korea to the USA, for seafarers involved in accidents – not criminal acts – must stop.”
ITF’s Cotton said that the fight would go on, “The one thing we can promise today is that this isn’t over. The campaign to free these men will go on growing until the justice that was so glaringly absent in this court today is done.”
“How can we encourage young people to take up a career in shipping when they see experienced and innocent crew criminalised in this way?” asks Mr. Morel of InterManager. Marine recruitment agencies in Mumbai agree that these latest developments will demoralise mariners further and make a career at sea even less of an attraction for new recruits. “Along with Somali piracy, this may well be the last straw on the camel’s back”, a manager told Marex on condition of anonymity.
Ironically, Capt Chawla and Mr. Chetan were sent to prison on International Human Rights Day. Bishop of V Ships called this “the final indignity”.
The saga of the ‘Hebei Spirit’
In December 2007, a crane barge owned by Samsung Heavy Industries collided with The Hebei Spirit, a VLCC at anchor and awaiting berth near the port of Daesan, South Korea. The accident happened after the barge tow rope parted; the two tugs towing the barge had been warned twice on VHF by local authorities that they was too close to the Spirit.
The collision punctured three tanks on the Spirit. Approximately 11000 tonnes of crude oil leaked into an area which is a prime tourist destination as well as an ecologically sensitive one. The cost of the cleanup, the worst in South Korean history, was estimated at 330 million US dollars.
The Captain of the Hebei Spirit, Capt. Jasprit Chawla and Chief Officer Syam Chetan, along with the two Samsung tug masters involved were charged with negligence and violating Marine Law after a preliminary Coast Guard investigation. A trial was held and concluded on 23 June this year; both tug Master's were found guilty and sentenced to jail terms. Capt. Chawla and Chief Officer Chetan were exonerated. Besides other reasons, they had taken all prudent steps to avoid the collision even when they were at anchor on a huge vessel.
Appeals to South Korea to let the seafarers return to India pending the prosecution’s appeal at a higher court failed, despite protests by national and international industry organisations including FOSMA, MASSA, MUI, NUSI, BIMCO, ITF and ILO. Representations and memoranda issued by seafarer unions, owners’ and ship management organisations to the DGS and the Korean consulate in Mumbai were rejected. Appeals made to the Prime Minister by the CMMI to intervene in the case were unsuccessful.
The Hebei Spirit's P&I club tried in vain to make the Korean authorities accept a bond that would allow the men to go home until required in Korea for the appeal. Meanwhile the two officers were prevented from leaving the country pending appeal and a possible retrial. A horde of maritime organisations and professionals of standing condemned the South Korean attitude. Concerns were also expressed by the ICS and ISF at the IMO, all to no avail.
The appeal process began in September. The December 10 ruling has now found the Indian officers partly responsible for the spill and awarded fines and prison sentences to both, while reducing the jail terms of the two Samsung tug masters.
There is clear belief in the seafaring community that the South Koreans are looking for scapegoats, protecting their own industrialists and are in clear violation of the principle set forth in the IMO guidelines on the “Fair Treatment of Seafarers in the Event of a Maritime Accident.” Indian media and Lloyd’s List have independently reported that representatives of Samsung Heavy Industries visited some crewmember’s homes in India and China earlier promising them jobs abroad and leaving them gifts as ‘souvenirs’ in return for testifying in South Korea.
Ironically, the Nautical Institute had, in April this year, "highly recommended" Capt J.S. Chawla during its Ship Master of the Year 2007 award deliberations for professionalism displayed during the Hebei Spirit accident.
Mumbai 11 December: The international shipping community reacted with rage, disgust and dismay after a South Korean court jailed Capt. Jasprit Chawla and Chief Officer Syam Chetan of the ill fated Hebei Spirit on Wednesday. The two officers of the tanker involved in an oil spill in South Korea in December 2007 were convicted of criminal negligence and violating anti pollution laws by the Daejeon District Court, which overturned a lower court’s ‘not guilty’ ruling.
The court jailed Capt Chawla for 18 months and fined him Won20million (US$ 14000) after finding him guilty on two charges related to the oil spill. The court said Capt Chawla should have gone ‘full astern’ to drag anchor to prevent the collision with the drifting crane barge Samsung No 1 that had earlier broken its tow.
Mr. Chetan was sentenced to eight months in prison and fined Won10m (US$ 7000). The court said that Mr. Chetan should have been more vigilant and called the master by 0550 hours. They also criticised Chetan for pumping inert gas into the cargo tanks and taking too long to transfer oil. The owner of the tanker, Hebei Spirit Shipping Co., was fined 30 million won (US$21000), the maximum allowed under South Korea's pollution laws.
The court said that the ship failed to take sufficient measures to limit the spill. The use of inert gas was also criticised, the court saying that this had increased the spillage of oil when the explosive risk was low. In addition, the ruling stated that the crew of the tanker should have ballasted to create a ten degree list to decrease the oil spill, and that the time taken to transfer the oil was ‘too long’.
Reacting angrily to the verdict, ITF maritime coordinator Mr. Stephen Cotton went on record to say, “This is not justice. It’s not even something close. What we have seen today is scapegoating, criminalisation and a refusal to consider the wider body of evidence that calls into question the propriety of the court. This decision is incomprehensibly vindictive and will impact on all professional mariners”.
Speaking to Lloyds List, NUSI general secretary Abdulgani Serang angrily said, “We are furious. We condemn this decision. It is unfair and unjust. There is a strong possibility Indian seafarers will not sail on ships to South Korea. The seafaring and shipping communities are deeply disturbed. Reactions are bound to follow.”
Office bearers of NUSI, FOSMA, INSA, MASSA and MUI are expected to attend a meeting on the weekend to decide on the Indian maritime community’s future course of action.
In a further slap in the face of world opinion, the appeal court simultaneously reduced the prison sentences of the two tug captains involved in the accident. One of them is now sentenced to two and a half years instead of the original three, while the other one will spend just eight months in prison instead of the original sentence of one year.
Bob Bishop, the CEO of V.Ships, the manager of the Hebei Spirit, lambasted the verdict, "This will surely go down as one of the most disgraceful examples of a miscarriage of justice in a supposedly advanced nation state. For Captain Chawla and Chief Officer Chetan to be sentenced to prison terms and led from the court in handcuffs is a disgrace and insult to the whole shipping industry." VShips will appeal to the South Korean Supreme Court as soon as possible.
The accident occurred a year ago after the ‘Samsung No 1’ broke its tow and collided with the fully loaded Hebei Spirit’ at anchor. Three tanks ruptured on the tanker and more than 10000 tonnes of oil caused South Korea’s worst environmental disaster. (See Box)
Indian media and Lloyd’s list have reported that representatives of Samsung Heavy Industries visited some crewmember’s homes in India and China earlier this year, promising them jobs abroad and leaving them gifts as ‘souvenirs’ in return for testifying in South Korea.
Many international industry bodies made angry statements condemning the South Korean ruling yesterday. InterManager general secretary Morel has called the ruling unacceptable. He said, “They (two officers) have behaved professionally throughout this sorry affair and are being made scapegoats by South Korea. We believe that the evidence against them was flawed and manipulated and we will campaign vigorously on their behalf to overturn this unfair decision.”
InterTanko, which had earlier sent a letter to South Korean President Lee Myung Bak urging that the Daesan Court of Appeal ‘carefully consider’ all evidence, expressed its anguish at the verdict. “Intertanko expresses disappointment with the Korean authorities given all the efforts of owners, managers and the industry in general which seem to have fallen on deaf ears,” said Peter Swift managing director of Intertanko.
BIMCO has voiced its concerns too, and the Singapore Shipping Association and the Asian Shipowners Forum have echoed this sentiment, calling it “a clear violation of the principle set forth in the IMO guidelines on the Fair Treatment of Seafarers in the Event of a Maritime Accident.” The Hong Kong Shipowners’ Association added its voice of condemnation, saying, “The ever increasing criminalisation by nations from Korea to the USA, for seafarers involved in accidents – not criminal acts – must stop.”
ITF’s Cotton said that the fight would go on, “The one thing we can promise today is that this isn’t over. The campaign to free these men will go on growing until the justice that was so glaringly absent in this court today is done.”
“How can we encourage young people to take up a career in shipping when they see experienced and innocent crew criminalised in this way?” asks Mr. Morel of InterManager. Marine recruitment agencies in Mumbai agree that these latest developments will demoralise mariners further and make a career at sea even less of an attraction for new recruits. “Along with Somali piracy, this may well be the last straw on the camel’s back”, a manager told Marex on condition of anonymity.
Ironically, Capt Chawla and Mr. Chetan were sent to prison on International Human Rights Day. Bishop of V Ships called this “the final indignity”.
The saga of the ‘Hebei Spirit’
In December 2007, a crane barge owned by Samsung Heavy Industries collided with The Hebei Spirit, a VLCC at anchor and awaiting berth near the port of Daesan, South Korea. The accident happened after the barge tow rope parted; the two tugs towing the barge had been warned twice on VHF by local authorities that they was too close to the Spirit.
The collision punctured three tanks on the Spirit. Approximately 11000 tonnes of crude oil leaked into an area which is a prime tourist destination as well as an ecologically sensitive one. The cost of the cleanup, the worst in South Korean history, was estimated at 330 million US dollars.
The Captain of the Hebei Spirit, Capt. Jasprit Chawla and Chief Officer Syam Chetan, along with the two Samsung tug masters involved were charged with negligence and violating Marine Law after a preliminary Coast Guard investigation. A trial was held and concluded on 23 June this year; both tug Master's were found guilty and sentenced to jail terms. Capt. Chawla and Chief Officer Chetan were exonerated. Besides other reasons, they had taken all prudent steps to avoid the collision even when they were at anchor on a huge vessel.
Appeals to South Korea to let the seafarers return to India pending the prosecution’s appeal at a higher court failed, despite protests by national and international industry organisations including FOSMA, MASSA, MUI, NUSI, BIMCO, ITF and ILO. Representations and memoranda issued by seafarer unions, owners’ and ship management organisations to the DGS and the Korean consulate in Mumbai were rejected. Appeals made to the Prime Minister by the CMMI to intervene in the case were unsuccessful.
The Hebei Spirit's P&I club tried in vain to make the Korean authorities accept a bond that would allow the men to go home until required in Korea for the appeal. Meanwhile the two officers were prevented from leaving the country pending appeal and a possible retrial. A horde of maritime organisations and professionals of standing condemned the South Korean attitude. Concerns were also expressed by the ICS and ISF at the IMO, all to no avail.
The appeal process began in September. The December 10 ruling has now found the Indian officers partly responsible for the spill and awarded fines and prison sentences to both, while reducing the jail terms of the two Samsung tug masters.
There is clear belief in the seafaring community that the South Koreans are looking for scapegoats, protecting their own industrialists and are in clear violation of the principle set forth in the IMO guidelines on the “Fair Treatment of Seafarers in the Event of a Maritime Accident.” Indian media and Lloyd’s List have independently reported that representatives of Samsung Heavy Industries visited some crewmember’s homes in India and China earlier promising them jobs abroad and leaving them gifts as ‘souvenirs’ in return for testifying in South Korea.
Ironically, the Nautical Institute had, in April this year, "highly recommended" Capt J.S. Chawla during its Ship Master of the Year 2007 award deliberations for professionalism displayed during the Hebei Spirit accident.
Are Somali Pirates expanding the war zone?
MOGADISHU December 10: After heavily armed Somali pirates attacked a Dutch container ship off the coast of Tanzania on Saturday, maritime observers are now getting increasingly concerned that Somali pirates are expanding their operations Southward into the vast swathe of the Indian Ocean off the East African coast. The vessel was about 500 miles east of Dar Es Salaam when she was fired at by eight pirates and set on fire.
"The problem is that the pirates are no longer just attacking ships off the Somali coast but are going further east and south where there is no naval protection," Noel Choong, head of the International Maritime Bureau piracy reporting centre in Kuala Lumpur told AFP. Eight pirates reportedly fired on the Dutch operated and Hong Kong registered vessel with assault rifles and RPGs. The vessel evaded them after the Captain increased speed to outrun the pirate boats.
The Sirius Star hijack had sent shockwaves around the world a couple of weeks ago; the fully laden VLCC, on a passage around the Cape of Good Hope, was attacked on Nov 15 in the same general area, hundreds of miles away from the Gulf of Aden. This latest attack on the Dutch vessel has resurfaced fears that even ships deciding to go around the Cape instead of transitting the hitherto pirate infested seas of the Gulf of Aden may not be safe any longer. The Eastern coast of Somalia was a hunting ground for pirates a few years ago before they shifted operations to the more frequented (and lucrative) waters around the Horn of Africa. Shipmasters must be undoubtedly wondering how far they would have to stay off the African coast now to be outside the range of the marauding pirates, who operate out of mother vessels and can thus extend their tentacles almost anywhere.
Military ships from Denmark, India, Malaysia, Russia, United States, NATO and the EU have been powerless to reduce the number of attacks on merchant shipping despite wider rules of engagement. No doubt, the pirates are becoming bolder now. The latest attack took place even as the EU’s naval ‘Operation Atlanta’ took over protection duties from NATO warships and is seen as a slap in the face for the international community. The EU's first naval operation has been described by EU foreign policy head Javier Solana as one with ‘robust’ rules of engagement, “with the possibility of using all means including force to protect, to deter and to prosecute all acts of piracy."
The challenge facing the EUNAVFOR Atlanta mission was huge even before the expansion of the kill zone. Half of the 80 attacks reported in the past three months have been in the ‘safe’ corridor patrolled by coalition navies. "This is impossible," said Jean Duval of French maritime security firm Secopex.
Piracy in the region threatens to choke an industry already struggling with collapsing freight rates as the result of the slowdown in economies worldwide. It now seems that the pirates have expanded the ‘war zone’ to include areas hundreds of miles away from the Somali coast, and, in the words of one observer, “impossible to police without a huge armada of warships and aircraft.” Analysts remain convinced that the solution to the piracy problem lies in resolving the civil war like situation in Somalia, a country without any effective government since 1991. There is no hope of that happening anytime soon, though.
"The problem is that the pirates are no longer just attacking ships off the Somali coast but are going further east and south where there is no naval protection," Noel Choong, head of the International Maritime Bureau piracy reporting centre in Kuala Lumpur told AFP. Eight pirates reportedly fired on the Dutch operated and Hong Kong registered vessel with assault rifles and RPGs. The vessel evaded them after the Captain increased speed to outrun the pirate boats.
The Sirius Star hijack had sent shockwaves around the world a couple of weeks ago; the fully laden VLCC, on a passage around the Cape of Good Hope, was attacked on Nov 15 in the same general area, hundreds of miles away from the Gulf of Aden. This latest attack on the Dutch vessel has resurfaced fears that even ships deciding to go around the Cape instead of transitting the hitherto pirate infested seas of the Gulf of Aden may not be safe any longer. The Eastern coast of Somalia was a hunting ground for pirates a few years ago before they shifted operations to the more frequented (and lucrative) waters around the Horn of Africa. Shipmasters must be undoubtedly wondering how far they would have to stay off the African coast now to be outside the range of the marauding pirates, who operate out of mother vessels and can thus extend their tentacles almost anywhere.
Military ships from Denmark, India, Malaysia, Russia, United States, NATO and the EU have been powerless to reduce the number of attacks on merchant shipping despite wider rules of engagement. No doubt, the pirates are becoming bolder now. The latest attack took place even as the EU’s naval ‘Operation Atlanta’ took over protection duties from NATO warships and is seen as a slap in the face for the international community. The EU's first naval operation has been described by EU foreign policy head Javier Solana as one with ‘robust’ rules of engagement, “with the possibility of using all means including force to protect, to deter and to prosecute all acts of piracy."
The challenge facing the EUNAVFOR Atlanta mission was huge even before the expansion of the kill zone. Half of the 80 attacks reported in the past three months have been in the ‘safe’ corridor patrolled by coalition navies. "This is impossible," said Jean Duval of French maritime security firm Secopex.
Piracy in the region threatens to choke an industry already struggling with collapsing freight rates as the result of the slowdown in economies worldwide. It now seems that the pirates have expanded the ‘war zone’ to include areas hundreds of miles away from the Somali coast, and, in the words of one observer, “impossible to police without a huge armada of warships and aircraft.” Analysts remain convinced that the solution to the piracy problem lies in resolving the civil war like situation in Somalia, a country without any effective government since 1991. There is no hope of that happening anytime soon, though.
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