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IMO focuses on effective implementation of treaties at national level

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As part of its efforts to improve the way its treaties and conventions are implemented at a national level, the IMO offered an intensive 5-day workshop for lawyers and legislative drafters at IMO Headquarters, on 1-5 October, to provide them with the tools they need to understand the treaties and how these are developed and adopted.

For treaties implementation, domestic implementing legislation is required, but audits carried out by IMO reveal that, in many countries, it either doesn’t exist or is incomplete.

To address this need, participants at IMO workshop from 16 countries learned the general principles of drafting national legislation to implement IMO conventions, with special emphasis on the amendment process, in particular the tacit acceptance procedure.

In addition, guidance was provided on drafting techniques, and the workshop also offered an opportunity for networking and sharing experiences, particularly with regard to the challenges countries may face in implementing IMO's technical regulations into national law.

Participating countries included Argentina, Czech Republic, Ecuador, Eritrea, Malawi, Maldives, Montenegro, Nigeria, Palau, Poland, Republic of Moldova, Solomon Islands, Timor-Leste, Tonga, Tuvalu, Viet Nam and two participants from the Pacific Community (SPC).

This move coincides with a statement by INTERCARGO Chairman on the sidelines of the association's annual meeting in early October, stressing a 'lack of understanding' by regulators who 'do not engage in discussions with the sector prior to their decisions, on the practical issues related to the implementation of the regulations'.

Source:safety4sea

Offshore platforms in Gulf of Mexico evacuated due to Hurricane Michael

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Energy companies stopped almost a fifth of Gulf of Mexico oil production and evacuated staff from 13 platforms ahead of Hurricane Michael. The hurricane has strengthened and is now heading towards the eastern US Gulf.

Offshore producers such as Anadarko Petroleum, BHP Billiton, BP and Chevron have all evacuated staff from their offshore platforms in the Gulf.

What is more, according to Reuters, companies turned off 324,190 barrels per day of oil and about 284 million cubic feet of natural gas, while five drilling rigs were moved out of the storm’s path.

Namely, Anadarko, Chevron and BHP Billiton stopped their production and evacuated staff at two platforms each, with BP shutting down production at four.

Moreover, Equinor evacuated its Titan production platform and Exxon Mobil evacuated staff from its Lena production platform.

For their part, Hess Corp and Shell are monitoring the storm and will take all necessary action. In fact, Shell is securing some drilling operations, but facilities were staffed and operating.

As for shipping ports, ports such as Gulfport, Pascagoula, Mississippi, Mobile, Alabama, and Pensacola, Florida, were open until Monday, October 9, but the USCG issued a warning of gale-force winds in the next 48 hours.

Source:safety4sea

UK invests £5 mil. to improve location-based information

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The UK government will invest £5 million to help the UK Hydrographic Office and partner bodies on Geospatial Commission enhance the value of location-based information.

UK government’s Geospatial Commission aims to improve the quality of key, publicly-held data and make it easier to access and use. By doing so, it is estimated the commission will unlock up to £11 billion of extra value for the UK economy each year.

The UK Hydrographic Office (UKHO) holds a range of UK marine geospatial data, including high resolution bathymetry depicting the seafloor, as well as information on the water itself.

UKHO also processes information on maritime security, marine life, maritime limits and more. This data helps organisations make better use of the marine environment and use ocean resources in a sustainable way.

Now, the UKHO will deliver 4 exploratory projects:

  • Data discoverability – assessing and improving access to current data sets;
  • Linked identifiers – supporting users to bring different data together in valuable new ways;
  • Licencing – working towards simple, common licensing terms to increase data use;
  • Enhancing core data assets – using third party data to improve the quality of data and make its collection more efficient.

John Humphrey CEO at the UK Hydrographic Office, mentioned:"Marine geospatial data is fundamental to helping us to make better use of the marine environment and ensure its protection for years to come. It’s the foundation on which to develop tourism and trade, as well as support disaster resilience and climate change mitigation."

Source:safety4sea

Trial ongoing for cruise ship Captain over breach of sulphur limit

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The defense team of the cruise ship Captain, who was charged over breaking the sulphur limit in the Mediterranean over the summer, said that the European rules unfairly distinguished between the limits applying to cruise ships and these for cargo ships, international media reported.

In the first case of its kind in Europe, French court has sued the Captain of the cruise ship 'Azura', operated by P&O Cruises, over breaching sulphur fuel limit, during the ship’s stopover in Marseilles on 29 March. If found guilty, the Master could face up to a year in prison and a fine of up to €200,000.

Captain Evans Hoyt, 58, has been charged after the ship failed to comply with the European law against air pollution, using heavy fuel oil (HFO) containing 1.68% of sulphur, which exceeds the maximum allowed limit of 1.5%. The parent company of P&O Cruises, Carnival, is also being charged.

When the cruise ship arrived at the port in March, authorities took fuel samples. However, when the results revealed a high level of sulphur, Azura had already departed and respective authorities boarded vessel at La Seyne-sur-Mer in the Var, where the Captain admitted to have used a non-compliant fuel. The trial started on 9 July.

According to data provided by the Telegraph, the Captain's lawyer in court, Bertrand Coste, contended that European environment rules unfairly distinguished between limits for cruise ships and those for cargo vessels, which is higher, saying this meant there was a lack of "equality before the law".

However, the prosecutor Franck Laugier was quoted as saying that the charges were justified and that 'the defence is pulling out the stops so that the captain of the Azura escapes his responsibilities'.

In addition, defence lawyers are expected to call for an acquittal, arguing that the 1.5% limit does not apply to the Azura as the vessel is not a 'regular' visitor to European ports, in which case the limit is 3.5%.The European Court of Justice has allegedly already ruled in their favour at this part.

Air pollution is a key area of concern for Mediterranean ports, as cruise ship traffic sees rising development, and particularly for Marseilles, which is trying to position itself as the Mediterranean’s top cruise liner destination until 2020.

Source:safety4sea

IPCC: Avoiding Climate Change Now Requires “Rapid” Cut in CO2

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On Sunday, the UN Intergovernmental Panel on Climate Change (IPCC) released a new estimate of the likely effects of anthropogenic carbon emissions in the medium term, with unpleasant conclusions. The panel reached a consensus estimate that global warming is likely to reach the Paris Climate Accord limit of 1.5 degrees Celcius between 2030 and 2050, with an additional increase to 2.0 degrees C thereafter, even if parties to the Accord fulfill their commitments to reduce emissions. The marginal increase from 1.5 degrees of warming to 2.0 degrees of warming is likely to result in considerably more damage to the human environment and food supply.

“Every extra bit of warming matters, especially since warming of 1.5ºC or higher increases the risk associated with long-lasting or irreversible changes, such as the loss of some ecosystems,” said Hans-Otto Pörtner, co-chair of one of the two IPCC working groups behind the report. 

Risks related to habitat loss, extinction, and the spread of non-native (invasive) species grow quickly with an additional increase of 0.5 degrees C. On land, high-latitude environments like tundra are most at risk of change; in the sea, low latitude areas will experience the most damage, and coral reefs are expected to disappear altogether under a 2.0 degrees C warming scenario. The risk of damage to valuable fisheries may rise quickly with an additional increase from 1.5 to 2.0 degrees C of warming.

Habitat risks for human populations also increase with an increase from 1.5 degrees warming to 2.0 degrees, including: additional loss of shoreside habitat from sea level rise; increased heat-related morbidity and mortality, especially in urban areas; and the spread of tropical diseases like malaria and dengue fever to previously unaffected regions. The damage to production of staple crops in developing regions in the tropics and sub-tropics (sub-Saharan Africa, Southeast Asia, Central and South America) is also likely to increase with each additional increment of warming. A rise of 2 degrees C would likely result in a "disproportionately rapid evacuation" of the tropics, with implications for the rate of irregular migration. 

The range of expected sea level rise is about one to two feet by the century's end assuming warming of 1.5 degrees C, and slightly higher at 2.0 degrees C, with the worst effects for small islands and low-lying coastal areas. The effects of CO2-driven warming will continue to be felt for centuries, with sea level rise continuing "well beyond 2100." 

Courtesy IPCC

Total damage to the human economy at 1.5 degrees C of warming is estimated at about $55 trillion, and damage at 2.0 degrees C of warming at $70 trillion. Even if spread out over decadal periods, this represents a significant percentage of economic activity: gross world product (the total of all national GDP values) is an estimated $87 trillion this year.

While the economic risks are significant, the report concludes that the action required to avoid 1.5 degrees of warming is beyond the bounds of likely, politically acceptable solutions. All nations would have to implement "rapid and far-reaching" changes in order to reduce emissions by about 45 percent by 2030, then by 100 percent by 2050. The latter "net zero" goal would require removing CO2 from the air to offset continued carbon output.

To achieve this aim, the study suggests the need to eliminate coal-fired power plants and impose carbon pricing from $135-$5,500 per ton by 2030, rising to $690-$27,000 per ton by 2100 – costs which suggest economic disruption and sacrifice. The average American emits roughly 16 tons per year, which would imply a tax burden of at least $2,000-$11,000 per person for those who continue to emit at current levels. 

Ninety-one authors and review editors from 40 countries prepared the IPCC report, with additional input from 42,000 expert and government review comments. “With more than 6,000 scientific references cited and the dedicated contribution of thousands of expert and government reviewers worldwide, this important report testifies to the breadth and policy relevance of the IPCC,” said Hoesung Lee, Chair of the IPCC. 

The United States joined nearly 180 nations in accepting the report but did not endorse its conclusions, citing its decision to withdraw from the Paris Climate Accords. 

Source:maritime-executive

Drillers Ensco and Rowan to Merge

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Ensco and Rowan Companies have agreed to merge in an all-stock transaction. 

The combined company expects to realize annual pre-tax expense synergies of approximately $150 million, with more than 75 percent of targeted synergies expected to be realized within one year of closing. 

The combination will create a leading offshore driller by fleet size, geographic presence and customer base, with 82 rigs (28 floaters and 54 jack-ups) spanning six continents and collectively serving more than 35 customers, including the largest national oil companies, international majors and independent exploration and production companies.

Within the fleet of 28 floating rigs (drillships and semi-submersibles) are 25 ultra-deepwater rigs capable of drilling in water depths of greater than 7,500 feet, with an average age of six years – establishing this fleet among the youngest and most capable in the industry. The combined fleet will also have the second-largest fleet of the highest-specification drillships in the industry, with 11 of these seventh generation ultra-deepwater rigs.

The 54-rig jack-up fleet will include 38 units that are equipped with many of the advanced features requested by clients with shallow-water drilling programs, such as increased leg length, expanded cantilever reach and greater hoisting capacity. Among the combined company’s jack-up fleet are seven ultra-harsh environment units and nine additional modern harsh environment rigs.

The combined company will be the most geographically-diverse offshore driller with current operations and drilling contracts spanning six continents in nearly every major deep- and shallow-water basin around the world including the Gulf of Mexico, Brazil, West Africa, North Sea, Mediterranean, Middle East, Southeast Asia and Australia.

The Saudi Aramco partner to the ARO Drilling joint venture has consented to the combination between Rowan and Ensco. Ensco shareholders will gain exposure to the ARO Drilling joint venture and ultra-harsh environment jack-ups, along with a presence in Norway. The combined company is also expected to leverage ARO Drilling’s 20-rig newbuild program. 

Rowan President and Chief Executive Officer Tom Burke will serve as President and Chief Executive Officer of the combined company. Ensco President and Chief Executive Officer Carl Trowell will serve as Executive Chairman.

The companies anticipate that the transaction will close during the first half of 2019. The combined company will be domiciled in the United Kingdom, where both Ensco and Rowan are currently domiciled, and senior executive officers will be located in London and Houston.

Leslie Cook, principal analyst, Wood Mackenzie, said the announcement comes as no surprise. “What makes a company like Rowan particularly interesting for Ensco is the opportunity to further high-grade their growing portfolio with premium assets and expand their footprint in key markets such as Middle East, Latin America, Europe and the U.S. Gulf of Mexico.“

Once combined, Ensco-Rowan will have the second-largest floating rig fleet, with nearly 90 percent consisting of sixth and seventh generation assets. These are the rigs that are most desired by operators globally, as they offer the best capabilities and flexibilities for various deepwater drilling programs around the world.

“The combined company will also become the largest player in the jack-up sector. Nearly 40 percent of the combined portfolio will consist of ultra-harsh and modern harsh-environment assets.”

Source:maritime-executive

Silversea Cruises Orders Three New Ships

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Royal Caribbean Cruises has announced orders for three new ships for Silversea Cruises.

Silversea signed a memorandum of understanding with German shipbuilder Meyer Werft to build two new vessels in a new Evolution Class, the first expected to be delivered in 2022.

Silversea also signed a contract with Dutch shipbuilder Shipyard De Hoop to construct a new expedition vessel, named Silver Origin, that will serve the Galapagos Islands itinerary currently sailed by Silver Galapagos. The new ship is expected for delivery in March 2020.

This year, Silversea Expeditions celebrates its 10th anniversary of luxury expedition cruising. The line currently operates the all-suite vessels: Silver Wind, Silver Shadow, Silver Whisper, Silver Spirit and Silver Muse. With the expedition ships Silver Explorer, Silver Galapagos, Silver Discoverer, and with Silver Cloud recently joining the expedition fleet, Silversea's itineraries encompass all seven continents. 

Royal Caribbean Cruises finalized its two-thirds acquisition of Silversea earlier this year. Regulators green-lighted the purchase based on an enterprise value of approximately $2 billion. Manfredi Lefebvre d’Ovidio remains Executive Chairman of Silversea and retains a 33.3 percent stake. At the time, the companies also announced Project Invictus, a multi-year initiative to take Silversea’s ultra-luxury offerings to the next level. As a result, the planned renovation of Silver Whisper in December 2018 will be much more comprehensive than initially anticipated and will include a partial refit of all guest cabins. Silver Windwill also enter into an enhanced dry dock in December 2018. Both vessels will join the overarching plan for a fleet-wide “Musification” which will take inspiration from the design of the very successful cruise line’s flagship, Silver Muse. The plan will be completed shortly after with an enhanced dry dock of the Silver Shadow.

Royal Caribbean operates the brands Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. It has a 50 percent joint venture owner of the German brand TUI Cruises and is a 49 percent shareholder in the Spanish brand Pullmantur Cruceros. Together, these brands operate a combined total of 59 ships with an additional 15 on order. 

Source:maritime-executive

U.S. Encourages Allies to Replace Iran’s Oil Exports

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With renewed American sanctions on Iran's energy sector set to take effect in November, the Trump administration has called on its allies in Saudi Arabia to boost output and keep oil prices under control. In a recent interview, Crown Prince Mohammed Bin Salman said that Riyadh has more than accommodated this request, and now exports "as much as two barrels for any one barrel that disappeared from Iran recently."

American oil production is rising, but not quickly enough to offset the near-disappearance of Iranian oil from the global market. Saudi Arabia is the only producer with enough swing capacity to fill the expected gap once sanctions take hold, and Bin Salman told Bloomberg that Riyadh and its partners have more than offset the recent declines in Iranian exports. He suggested that Saudi fields can produce an additional 1.3 million bpd if needed, nearly enough to offset recent Iranian exports of 1.7 million bpd. 

Non-compliance will also help to close the gap. Japan and South Korea are halting their purchases of Iranian crude, and China has been slowly reducing its imports, but Indian oil minister Dharmendra Pradhan said Monday that his nation has no plans to stop. Indian state oil companies currently purchase about 330,000 barrels per day from Iran, equal to about 15 percent of Iranian exports. After U.S. sanctions take effect, instead of paying in dollars – which would be forbidden – India may buy Iranian oil in rupees. Pradhan acknowledged that there is no certainty that the Trump administration will grant New Delhi a waiver for its purchases. 

Tanker rates

The reduction in Iranian oil exports is creating a boom for dirty tankers after a long period of weak rates. According to Bloomberg, spot rates for VLCCs serving the Asian market doubled between late September and early October, corresponding with a sharp week-to-week drop in Iranian exports. Longer voyages from supply sources in West Africa and the United States to Asia means a higher demand for ton/miles, bringing tanker owners a welcome hike in rates. 

“West Africa chartering activity is strong as key Asian buyers have started to look elsewhere to replace the Iranian volume," said Morgan Stanley analyst Fotis Giannakoulis in a research note on Sunday. 

Source:maritime-executive

UK awards £1b in fleet auxiliary upkeep

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The UK defense ministry announced it has awarded over £1 billion worth of contracts for the maintenance of Royal Fleet Auxiliary ships and the Royal Navy’s survey and hydrographic fleet over the next ten years.

The deal covers 17 ships and will improve how spares, repairs and maintenance work are carried out.

“This £1bn deal secures work for some of our world-leading shipyards into the next decade, supporting over 700 jobs for workers to ensure our ships remain at sea to defend the nation,” defense minister Stuart Andrew said. “This vital work is not only great news for our Navy, but also underlines the importance of defense to our national skills and prosperity.”

Under the agreements, Cammell Laird in Birkenhead has won £357 million to support the RFA’s Fort and Wave class tankers, and £262 million to support the RFA’s new fleet of four 39,000-tonne Tide class tankers.

A&P in Falmouth has received £239 million to support the RFA’s Bay-class landing ships as well as the casualty ship RFA Argus and Royal Navy ocean survey vessel HMS Scott

UK Docks Ltd on Tyneside will support the survey ships HMS Echo and Enterprise and the ice patrol ship HMS Protector under a £150 million contract.

The defense ministry expects the deal to deliver savings worth over £100 million for defense, with agreements including delivering improved support and greater efficiency in ways such as new support solutions and improved performance targets.

In addition to the four already signed, a further three contracts under the Future In Service Support (FISS) project are expected to be signed within the next year.

Source:gov.uk

Hapag-Lloyd joins competitors in announcing low sulphur fuel charge

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Hapag-Lloyd is the latest major container line to announce a fuel charge to cover the costs of using compliant low sulphur fuel for the 2020 sulphur cap.

The Hamburg-headquarted container line announced it would be gradually implementing a new Marine Fuel Recovery (MFR) mechanism from 1 January 2019 to replace existing fuel surcharges. With similar charges unveiled by other lines being denounced by shippers and forwarders for lacking transparency Hapag-Lloyd claimed its new charge would allow for “causal, transparent and easy-to-understand calculation of fuel oil costs”.

With the German line to primarily use low sulphur fuels to meet the 0.5% sulphur cap for its fleet of 226 ships it estimates an additonal fuel bill of $1bn annually based on a $250 spread in the price of low sulphur and high sulphur fuel per tonne.

“We embrace the level playing field and environmental improvements resulting from a stricter regulation, but it is obvious that this is not for free and will create additional costs. This will be mainly reflected in the fuel bills for low-sulphur fuel oil, as there is no realistic alternative for the industry remaining compliant by 2020,” said  Rolf Habben Jansen, cep of Hapag-Lloyd.

“With our MFR, we have developed a system for our customers that we think is fair, as it allows for a causal, transparent an easy-to-understand calculation of fuel costs.”
The company said the MFR tookinto account various parameters, such as the vessel consumption per day, fuel type & price, sea and port days, and carried teu.

Source:seatrade-maritime

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