Criminalisation - The Swedish Club

Transcription

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Content
The Swedish Club Letter 1–2005
Leading article
Salvage
Club Information
On everyone’s lips…
3
Selendang Ayu - Bad weather delayed the salvage operation
5
News from Asia
News from Piraeus
Change of general P&I correspondents in the US and Canada
Organisational changes
6
6
FD&D
SCOL
Loss Prevention
Crew
The Scandinavian Shipping Gazette
Club Information
The Swedish Club is a mutual marine insurance
company, owned and controlled by its members. The Club writes Hull & Machinery, War risks,
Protection & Indemnity, Loss of Hire, Freight
Demurrage & Defence insurance and any
additional insurance required by shipowners.
2
www.swedishclub.com
6
What is the Freight, Demurrage & Defence insurance really about?
8
Fire prevention 10
7
SCOL P&I records
Get to know your gear!
11
Criminalisation of seafarers – will this contribute to improving the safety and environment at sea, or could it in fact be counterproductive?
The law on termination of Filipino seafarers
16
Member Portrait
Club Correspondent
Club Information
MRM
Club Information
4
Norgas: A progressive force in the global gas trades
12
18
A correspondent at a glance: Agenzia Marittima Prosper
20
Updated List of Correspondents now available on our website
Broader view of MRM
22
25 years with The Swedish Club
New Members
23
Review
21
23
24
26
27
27
28
Club Evening
Staff News
Public Holidays
Club Calendar
Head Office Sweden
Greece
Gullbergs Strandgata 6, P.O. Box 171
SE-401 22 Göteborg, Sweden
Tel +46 31 638 400
Fax +46 31 156 711
E-mail [email protected]
Emergency tel +46 31 151 328
5-7, Agiou Nicolaou
GR-185 37 Piraeus, Greece
Tel +30 210 452 2397
Fax +30 210 452 5957
Hong Kong
Japan
Suite 6306, Central Plaza
18 Harbour Road, Wanchai, Hong Kong
Tel +852 2598 6238
Fax +852 2845 9203
Emergency tel +852 2598 6464
Suzuyo Hamamatsucho Building 5F.
2-1-16 Kaigan, Minato-Ku, Tokyo 105-0022, Japan
Tel +81 3 5442 5466 (24 hour tel)
Fax +81 3 5442 5922
Leading Article
The 20th of February is now behind us and the P&I renewals have
been completed. About a year ago we set, what we then thought was
a pretty ambitious target; namely a 25 per cent increase in our P&I
book within four years. This doesn’t seem very difficult when just
looking at the numbers, however being aware of the slow moving
character of the business increases the awareness of the actual difficulty of this task! At the time of setting the target and as I stated
at the 2004 Annual General Meeting, we shall focus on the P&I
business to a much larger extent than before. And things
are starting to happen! There
haven’t been any dramatic
events, but the fact is, our
P&I book grew from 14.6m GT in February 2004, to 17.1m GT in
February 2005. A dozen or so new members have joined our Club,
and we are confident that as time goes by, these new members will
experience a growing appreciation of what good sense it was to join
our Club.
In our drive to attract new members, we have maintained our
steadfast and uncompromising demand for high quality in both
ship and shore organisations.
That leads me in to the topic of sub-standard shipping. This
phenomenon is on everybody’s lips these days, and all agree that
something has to be done. It’s easy to say, with the benefit of hindsight, that those vessels appearing in the high profile accidents off
the Spanish and the French coasts a couple of years ago, should
never have been insured and should never have been allowed to ply
the seas. But the vessels had passed class and met the requirements of
their respective flag states. So, where does the responsibility lie? We
leave that question to be answered by others, and go on to reiterate
that we, and the other members of the International Group of P&I
clubs are committed to safety at sea, and to maintaining quality
among our members.
We must never lose sight of the fact that we are a mutual insurance association, in which our members are both insurers and
insureds, and since the clubs pool risks in excess of USD 6 million,
it is quite natural that we are concerned that not only we, but also
our colleagues in the International Group are aware of the standard
of members and their vessels.
The accidents mentioned above led to a number of activities in
the field of maritime security. One of them was the recently published OECD study on how insurance companies can participate in
the improvement of vessel standards.
As far as The Swedish Club is concerned, we take great pride in
the quality of our members. We do not aspire to be the largest club,
but we do aspire to be the best. Before prospective members are
admitted to our Club, they are scrutinised (applying the principles
of our risk assessment program), so that unpleasant surprises are
avoided as much as possible.
While an owner may look suitable at the outset, it is quite possible
that things change for the worse for reasons not immediately known
to us. We raise our eyebrows when a ship changes classification societies, particularly from an IACS
to a non-IACS society. Alarm
bells also start ringing when Port
State Control includes one of
“our” ships on its detention list.
With the International Group covering 95 per cent or more of the
world’s merchant marine fleet, the OECD report calls for the member clubs to take joint measures to eliminate sub-standard shipping.
The Group will indeed make a number of proposals to facilitate
the process of identifying non-insurable vessels. Items which will be
considered include the sharing of information, the scope of surveys,
penalties if sub-standard ships are knowingly underwritten as well as
management audits and vetting.
All of it sounds pretty straightforward and some of it is already
being done, at least in The Swedish Club. There are, however, some
legalities, which must not be ignored. Clubs have been advised that
if exchanges of information result in no club providing coverage,
thus jeopardising the owner’s trading prospects, clubs could risk
being accused of a breach of competition law, based on “abuse of
dominant position”. States in which the law has the above mentioned effect will obviously have to be persuaded to apply appropriate exceptions so that the desired results can be achieved.
The Swedish Club, in conjunction with the International Group,
will continue its efforts to rid the oceans of unworthy vessels. Our
labours, however, will mean nothing unless flag states, port states
and classification societies do not share the same ambition.
On everyone’s lips…
The Swedish Club Letter is published twice a
Editorial Advisory Board Susanne Blomstrand, Birgitta Hed,
year and distributed free of charge to vessels
Claes Lindh, Lars Malm, Frans Malmros, Tord Nilsson, Clas Rydén,
insured with us and to our members.
Peter Stålberg
The Swedish Club Letter is an editorially inde-
Production co-ordinator Susanne Blomstrand
pendent newsletter and opinions expressed by
external contributors are not necessarily those of
The Swedish Club. Articles herein are not intended to provide legal advice and the Club does
not accept responsibility for errors or omissions
COVER PHOTO: THE SWEDISH CLUB
Frans Malmros
Managing Director
or their consequences. For further information
regarding any issue raised herein, please contact
our head office in Göteborg.
PR-consultant TRS Public Relations Ltd.
Layout Eliasson Information, Göteborg
Print PR Offset, Mölndal
© The Swedish Club. Articles or extracts may be quoted provided
that The Swedish Club is credited as the source.
0505PR4800B
3
AGE
LV
EW
SA
RE VI
Salvage
SELENDANG AYU
Captain Lars Landelius
Salvage Manager
Bad weather
delayed
the salvage
operation
PHOTO: UNIFIED COMMAND
4
PHOTO: UNIFIED COMMAND
■ ■ During the first week of December 2004, the 70,000 ton DW bulk
carrier SELENDANG AYU left Seattle with a full cargo of soya beans
bound for China. The ship proceeded on a great circle course north of
the Aleutian Islands.
When the ship was north of Unalaska Island, she suffered a main
engine breakdown and started drifting south. Two tugboats were dispatched from Dutch Harbor. The first tug managed to establish a towing connection and tried to arrest the ship’s drift. The weather was bad
with gale force winds and rough seas.
After a few hours’ towing, the tow line parted. None of the tugs
managed to reconnect before the disabled ship had drifted into shallow
waters near Unalaska Island. The crew managed to temporarily stop
the drift using the ship’s anchors. A US Coastguard cutter and two US
Coastguard helicopters were standing by.
When the anchors were holding and the vessel rode up against the
swell, the violent rolling stopped and the engine room crew was able to
resume working on the main engine. Eventually, the anchors gave way
and the ship drifted aground.
One of the Coastguard helicopters started evacuating the crew over
to the Coastguard cutter. Towards the end of the evacuation while the
helicopter had seven crew members on board, a violent wave struck the
ship’s bow and water splashed into the helicopter’s air intakes causing the
helicopter to crash into the sea. The other Coastguard helicopter managed to rescue the helicopter crew plus one of the ship’s crew, however,
six men tragically lost their lives.
Soon after the grounding, the ship broke in two at cargo hold
number four, and the ship’s engine room was flooded.
The ship was carrying approximately 1,500 tons of heavy fuel oil and
about 70 tons of marine diesel oil prior to the grounding. The majority
of the heavy fuel oil was stored in double bottom centre tanks.
Salvage
News from Asia
News
from
Asia
The world leading salvors soon arrived and they were asked to submit
offers for removing the remaining oil from the wreck. After negotiations
with three different salvage consortia, a contract was signed with Smit
Salvage. Their salvage plan was based on using the latest pump technology enabling pump transfer of bunker C in winter conditions without
pre-heating. They also based their salvage plan on using a heavy lift
helicopter to ferry oil containers of about ten tons capacity from the
wreck and ashore. This was done to avoid being dependent upon craft
at the weather exposed site at which the wreck had grounded.
On January 3rd, after mobilising all equipment, personnel and helicopters, and all equipment had been landed on board, with all necessary preparatory work being carried out, the oil removal operation was
commenced.
On February 11th, the removal of oil from the wreck was concluded.
In total, some 555 cubic metres of heavy fuel oil, marine diesel and
various lubricants were removed from the aft section of the wreck. This
constituted all recoverable oil from the wreck. The operation was conducted in a highly professional manner and much to the satisfaction
of the Club as well as the local authorities. The forward section of the
wreck sank during the course of the operation.
During the operation the work was down approximately 50 per cent
of the time due to bad weather.
At the initial break up, all oil contained in the double bottom fuel
oil tank No 2 was spilled. During the following weeks, the wreck continued to deteriorate causing the oil contained in double bottom tanks
I and III to spill.
In the next issue of The Swedish Club Letter there will be an
article dealing with the aspects of the pollution clean-up response of
this claim.
■
Leaving Asia
■ ■ The renewals for P&I, FD&D and H&M have been
concluded and we have done quite well. Premiums are up
moderately, and the size of the Asian fleet has grown substantially.
After five years in Hong Kong, I will be back in Sweden
when this issue of The Swedish Club Letter is distributed. It
has been a fabulous five years, and Hong Kong will always be
a very special place to me – I met my wife there, and two of
our kids were born in Hong Kong (our third will be born in
Sweden in July).
I was able to work with a group of very nice people. The
staff in the Hong Kong and Japan offices are extremely dedicated people who provide our members with great service 24
hours a day if needed. I thank them all for making my job very
easy and for all the support they have given me.
I would also like to thank our members in Asia for treating
me so well and showing such loyalty to the Club. Our business
in Asia has grown a lot during the last five years especially on
P&I thanks to old and new members putting their faith in us.
The future for the Club looks very promising. We feel very
strong, and are confident about where we are heading.
We have had good support from brokers who know that
placing business with the Club is like buying “sleep-good
insurance”. If a casualty occurs, we will be there, actively assisting owners and solving their problems.
There are many people in the business who I would like
to thank for making my years in Hong Kong memorable but
space is limited; so I have to thank you all at the same time.
Thanks!
I would like to wish Ruizong Wang good luck as the new
Area Manager/Managing Director for Asia, and also welcome
Kjell Augustsson as the new Deputy Managing Director for
Asia. I am sure both Ruizong and Kjell will do a good job and
continue to develop our Asian portfolio.
In Sweden I will be heading Team Göteborg I. I really look
forward to going back to Sweden to work with new markets,
and a good team of people in the head office.
■
Tord Nilsson
Managing Director
The Swedish Club Hong Kong Ltd.
5
News from Piraeus
Club Information
25 years in Greece!
■ ■ It was in the late seventies when The Swedish
Club decided that it should go from being just a
provider of P&I and H&M Insurance for Swedfrom
ish shipowners, and move into the international
market.
Piraeus
This decision resulted in opening an office in
Piraeus in 1980. Management believed that Greece would be a good
prospective market for the Club, and that decision has proven to be
right. Since then, we have had very positive development of our Greek
portfolio.
For the last ten years, the Piraeus office has been a service centre to
our Greek and Middle Eastern members. Since then, a large number
of P&I clubs that underwrite Greek business are now represented in
Piraeus.
Upon writing this article, renewals have been successfully concluded, and the results have shown that our marketing efforts in the
Middle East have paid off with new members joining the Club. We
have also obtained new members from Greece which is very pleasing.
I must add that the assistance of existing members has helped us to
achieve this. The tightly-knit shipping community is something we
benefit from.
Two events which are not so close to each other this year are the
Orthodox and Catholic Easter. Coinciding with the Catholic Good
Friday is Greece’s Independence Day. This day is of huge importance
in Greece as it marks the beginning of the end of occupation by the
Ottoman Empire.
■
News
Change of
General P&I
Correspondents in
the US and Canada
February 20th 2005
■■ As already advised in our Member Alert dated February 11th 2005, quoted below, we have appointed new general
P&I correspondents for the US and Canada. For several
decades, Shipowners Claims Bureau (SCB) recently renamed Atlantic Marine Associates (AMA) have been our
P&I correspondents. They have provided excellent service
to members and the Club throughout the years but, with
AMA being the claims handling arm of The American Club,
we felt it was appropriate to appoint new, independent correspondents for the Club. We are confident that Independent
Maritime Consulting Ltd (IMC) are more than capable of
protecting members’ and the Club’s interests in this important market.
■
ber Alert Member Alert Member Alert Member
Clas Rydén
General Manager
The Swedish Club Greece
Organisational changes
■■ The Club’s Loss Prevention Department and PR Department
have been reorganised. This reorganisation went into effect on
January 1st 2005.
Peter Stålberg has been appointed Director Technical & Loss
Prevention and is now heading the Club’s loss prevention activities
together with Loss Prevention Project Co-ordinators Anders Hultman and Anna-Karin Lönnstad. “Expect to hear a lot from us in the
future” says Peter.
Captain Claes Lindh, Director Underwriting, has re-assumed
responsibilities for the Club’s PR and communication activities. Claes
is supported by Susanne Blomstrand (PR Co-ordinator), Martin Eriksson (AD/Web Developer), Annelie Fellbom (PR Assistant) and Petra
Setterberg (Graphic Designer).
Martin Hernqvist has assumed a new position as Manager, Maritime Resource Management (MRM). In this context, Martin will put
increased focus on the Club’s growing activities in Maritime Resource
Management training.
■
6
■■ Please be advised that, effective February 20th 2005, Independent Maritime Consulting Ltd will act as our general
US and Canadian correspondent for both H&M and P&I.
IMC has served as our general US and Canadian H&M
correspondent for several years. Full details of the organisation, which was featured in our recent newsletter (The
Swedish Club Letter 2/2004), can be found on their website
at www.independentmaritime.com
Response to P&I and H&M matters arising in the US
and Canada will be coordinated from IMC’s head office in
Connecticut, headed by David Smith. The team will include
Carl Cederstav as well as Don Messick, the latter formerly
employed by Atlantic Marine Associates in New York.
In accordance with normal practice, members are advised
to contact the Club for assistance in the event of P&I and
Hull cases in the US and Canada. In urgent matters, IMC’s
head office can be contacted directly. The general office
number (+1 203 256 1000) also serves as the emergency after
hours telephone number. Further, you will find cell (mobile)
phone and home numbers on IMC’s website and in our 2005
List of Correspondents.
We are confident that this new arrangement will prove
to be beneficial to our members and that you will enjoy the
services of Independent Maritime Consulting Ltd in finding
cost-effective solutions to P&I and H&M problems.
Should you wish to obtain additional information in
relation to this new arrangement, please contact Anders
Holmberg in our Göteborg office (+46 31 638 451).
■
Freight, Demurrage & Defence
WHAT IS THE
Freight, Demurrage & Defence
INSURANCE
REALLY ABOUT?
■ ■ It may be common knowledge to most readers that the such legal disputes arise, which is a risk covered by FD&D, he
Club was originally founded as a hull insurer in 1872. About then can rely upon the expertise of the FD&D team to provide
40 years later, the first P&I risk was underwritten. Today, the assistance.
In contrast to the H&M and P&I insurance, in which the
Club covers about 1,300 vessels for Hull & Machinery (H&M)
risks, and 700 vessels for Protection & Indemnity (P&I) risks. coverage is limited to the insured value and the insured’s legal
However, it may be news to some of you that the Club has 345 liability respectively, there is no fixed formula for calculating
vessels entered for Freight, Demurrage & Defence insurance the Club’s risk under a FD&D policy although the maximum
(FD&D) which is showing unparallel growth in light of this limit for cover is USD 5 million. So, how is the risk managed
class of insurance was not introduced until 1984. The Club from the Club’s perspective? After all, the average FD&D
would like to take this opportunity to point out the benefits premium is about USD 10,000 which is a fraction of what
of this type of insurance, and also mention something about the legal costs can be for a complex dispute. One part of the
its characteristics which are quite different from traditional answer is that the Club endeavours to do as much work as
possible in-house in order to keep the costs down. Ultimately,
marine insurances such as P&I and H&M.
however, it is necessary for the
FD&D is a legal cost insurClub, as any mutual FD&D
ance that covers costs incurred in
insurer, to provide cover on a
Anders Leissner
the handling of a wide range of
discretional basis in order to
FD&D Manager
disputes which arise from buildensure that the Club’s and the
Team Göteborg III
ing, buying, selling, owning and
members’ funds are properly
the operation of a vessel. In addition, there is a great deal of added value to the insured since used. For instance, it may be difficult to justify large scale
he will have access to immediate legal advice whenever the support when the merits of the claim are weak or the size of
need arises. For instance, the Club’s FD&D lawyers frequently the claim is small. Likewise, it will be unproductive to spend
advise on the proper structuring of charterparty clauses before vast amounts pursuing a claim if the opponent does not have
they are inserted in order to minimise the risk for future un- any assets against which a judgement or award can be enforced.
That would simply be throwing good money after bad.
pleasant surprises and disputes.
Further limitations of the FD&D coverage can be sumThe Club does not generally provide FD&D on a stand
alone basis as it is primarily intended to supplement the cover- marised as follows:
age provided under the Club’s other classes of insurance. This • The Club does not get involved in disputes concerning sums
is in line with the Club’s total service concept. One can think
lower than USD 7,500 although it can provide service on an
of a situation in which a time charterer supplies sub-standard
ad hoc basis for an additional fee.
bunkers that cause damages to the vessel’s engines. These dam• Legal costs for which the member seeks reimbursement under
ages will be dealt with by the H&M insurer. However, there
the FD&D policy must have been incurred with the Club’s
will most likely be other type of losses, such as time losses, that
prior consent.
will fall outside H&M cover. The FD&D insurer will provide
legal support to assist the member in dealing with these losses • There is no support if costs are recoverable under any other
type of insurance.
and, if appropriate, pursue the wrong-doer for an indemnity.
Having only one Club involved in these types of situations will • There is no support for recovering deductibles under other
types of insurances with the exception for hull deductibles.
ensure efficient casualty management where all the insured’s
interests can be protected in the best possible way.
• The coverage is limited to USD 5 million for any one disFrom a broader perspective, the FD&D insurance will aspute.
sist the shipowner or operator in managing his risks. Whilst
One important feature with the Club’s FD&D coverage is
P&I and H&M facilitate the insured’s trading activities by
that it does not entail any deductible. This contrasts with the
protecting his assets and indemnifying him against the liabilipolicy of other International Group clubs, several of which
ties he incurs operating his vessels, it is the FD&D insurance
exercise a 25 per cent deductible on all costs.
which protects, and hence by definition, defends the owners’
No shipowner can be sure when a dispute will arise, how
income or the capital ventures he undertakes. Most shipowners
much will be in dispute or the amount of legal costs. In times
or charterers contract their vessels by demise, time or voyage
of exceptionally strong markets this may not be a concern.
charters; all with the express purpose of earning income, capiHowever, a market turn will undoubtedly result in that some
tal and profit which serves to provide them with the financial
parties in the transport chain will have difficulties meeting
lifeline required to operate the vessel. If there is an FD&D intheir obligations. Should that happen, the shipowner with an
surance in place, the insured can be sure he can budget properly,
FD&D insurance will not stand alone.
and assess his income, capital expenses for his operation and
■
continue to trade his ships secure in the knowledge that if any
7
SCOL P&I
SCOL
protect claims in excess of USD 2 million by reinsurance. You
can say we have divided the retention into two layers, our own up
to USD 2 million, and protected USD 4 million in excess of the
USD 2 million. In excess of the USD 6 million, the next layer is
the “Pool”. That is, the layer in which claims are shared between
shipowners belonging to the 13 P&I clubs. I deliberately said that
it is the shipowners that are sharing these claims although they are
handled and administrated by the P&I clubs. The option would
have been to buy reinsurance protection in excess of USD 6 million, but since the reinsurer, as any commercial entity needs to
The principle of insurance
Prior to getting into the nitty-gritty of the records, let’s focus on cover his own expenses, as well as any expected or unexpected
the principle of insurance and since we are discussing P&I we will claims in addition to a profit margin, the cost for the shipowners
include mutuality. The principle of insurance is to spread the risk. would escalate. Even if in one individual year the cost of claims
made exceeded the premium paid,
The insured, in this case the ship(a “profit” for the shipowners); in
owner, decides if he wants to mainthe long run the reinsurers would
tain the risk or spread it; wholly or
have made good their losses. This
Claes Lindh
in part. If his decision is affirmative,
is a commercial market and the
Director – Underwriting
that is, he will spread his risk, he will
same rules apply for everyone.
approach an insurer. Although in
Thus, the most beneficial system
theory insurance is not mandatory,
he may be forced by his shareholders, banks or charterers to do so. is sharing claims; no profit margins, no funding, no additional
Practically all shipowners do insure their risks, at least the basic costs – not even administration costs!
risks for H&M, P&I and War. By using the insurance instrument,
The pool and its exposure
the shipowner will get more freedom to develop his business since
the opposite would be to tie up money which could otherwise be When studying the pool and its exposure, there might be a threshold at which layering the pool might be beneficial. The same arguused for investments.
ment applies as for the shipowner buying his basic covers. The primary insurers buy reinsurance, to shave off a few of the really bad
Sharing risks
In respect of P&I, which I said was the main focus here, we can risks; the real catastrophes. Therefore, the pool is also layered, i.e.
look back over a bit more than 150 years of history. In the mid 19th the pool is reinsured with a USD 2 billion cover in excess of USD
century, the shipowners were “forced” to find a cover for liabilities. 50 million. Beginning this year, there is in addition a group cover
The traditional market refused, but the mutual market, owned and which may be considered as a layer, a USD 20 million odd layer in
controlled by the shipowners, abided the request. More and more excess of USD 30 million of the pool. It is called the “Hydra” and
P&I clubs were formed, all owned and controlled by shipowners is a captive which is a fund owned and created by the P&I clubs,
who were members of the clubs. It was based on sharing risks. i.e. “Hydra” is owned and controlled by the shipowners who are
The traditional market was not keen to “buy” liability risks and members of the clubs.
One more remark about the pool. I said shipowners share the
the solution was to share. Sharing risk is beneficial in the context
that the cost of sharing risk is nil (if one disregards administration claims, which indeed they do. However, there is a system of adjusting the shares of the pool so that the “wrongdoers”, the P&I clubs
costs); only the claims are shared.
The shipowners found the system of mutually sharing risks for with more than average claims, get a bigger share and the better
their liabilities beneficial, and this has proven successful since it is ones get a lower share. The formula includes premiums, size and
now the most common method. That is, if we at least believe that claims and runs over time.
95 per cent of the world’s shipowners are correct. This is roughly
Sharing of claims
the share of shipowners belonging to any of the 13 P&I clubs
Even within the first USD 6 million retention that each club has
today.
today, the sharing of claims can be discussed. It is actually the
Layers
A very common way to spread risk in the insurance world is to layer shipowners belonging to the club in question who share their lithem. If we start with the shipowner, he layers his active spread of abilities within the USD 6 million layer; totally or protected by
risks by retaining a deductible, the bottom layer so to say. In the reinsurance, as we are. Whatever the system, the members of the
insurance sector the same system of layering is common. On our club have to contribute. A USD 6 million claim for a shipowner has
hull side, we retain USD 2 million per claim; our layer, and buy to be regarded as a catastrophe. Very few owners pay that premium
one, two or three layers in excess to provide for an adequate, com- amount! Therefore, such a claim has to be shared by the entire
prehensive cover for the shipowner. That is, we reinsure in layers. membership. To provide for such claims, each club has to fund for
For P&I, the system is similar. Each of the 13 P&I clubs re- such risks, or come back to members with additional supplementain USD 6 million, some, like us, even layer the retention. We tary calls. Whatever; the members will have to pay. Most clubs
■■ I am penning this editorial just after the conclusion of the
renewal season. It deals with some questions that were raised during the P&I renewals; more specifically, SCOL, Swedish Club
OnLine, our extranet for our members and brokers in which
records and claims are monitored on-line. The dominant question
concerned how we calculate P&I records, i.e. why isn’t a particular
member entitled to his full premium paid when calculating the
loss ratio?
8
I Records
SCOL
fund or reinsure, or do both to protect the membership against
unpleasant surprises. This exposure also has to be considered in
the premium; the advance call.
And now at last, after this long prologue, we come to SCOL and
how we treat these various layers when studying records and setting
the premiums, i.e. the calls. Please remember that our strategy is to
balance costs so we do not have to come back to our members with
additional supplementary calls. We have 13 years of experience in
how to protect without additional calls! The illustration to the
right shows how the premium is divided into the various layers.
Different categories of claims
Each member will always have attritional claims, that is so to say
run of the mill claims, they happen more or less with a predicted
frequency. They emanate from cargo, dependent on the trade, crew
and crew injury matters. A number of these can be avoided by setting a higher deductible if a member wants to tend to these matters
himself. In this category, there will always be a few odd claims,
perhaps a few more expensive as well. These claims are records
based, i.e. the member balances these claims with his premiums
over a pre-determined period of time - normally five years.
The next category of claims is the “catastrophe” claims, and
let’s start with those not exceeding USD 6 million, that is they
remain within the club’s own retention. These have to be shared by
the members of the club over time. Each member has to contribute.
There is a word for this: “abatement”, nowadays commonly used
by the P&I community, and from now on you can also find it in
your P&I records in SCOL. You can see it in the illustration above
as well. We have calculated this provision to be 21 cent per GT
for 2005/06. I mentioned above that we bought reinsurance to
protect part of the retention; in excess of USD 2 million. When we
calculated this year, we noted that the provision for the abatement
would have been the same with or without reinsurance, so you may
regard the reinsurance as a proper protection to minimise the risk
for unpleasant supplementary calls.
Pool claims
We do the same in respect of the pool. The cost for the pool is
estimated, and we levy a provisional cost for pool claims. Currently, it is estimated to be 32.5 cents per GT, but this figure will of
course be updated if the actual pool claims become higher or lower
than the estimate. We are also looking into a system of refining
this method further since it has a major impact on the premium
and records. The refined system will be reported to our members
as soon as developed.
For the excess reinsurance, that is the reinsurance of the pool,
we use the premiums agreed for this cover by the International
Group. These are set annually depending on the cost of the reinsurance the pool buys to protect itself in excess of USD 50 million.
These premiums are the same for all shipowners who are members
of the P&I clubs in the International Group.
How the P&I premium is distributed
excess reinsurance (cost depending on type of ship – see illustration). The balance, the net premium shall cover the claims made
excluding catastrophes. Hence, we have put a “ceiling” on clams in
the P&I records of USD 2 million. Even if a claim exceeds USD 2
million, only USD 2 million will be used in the records.
This provides a fair and true picture of how the P&I premium
is distributed. The abatement covers the risks shared within the
club by all its members. The pool covers the shipowners’ cost for
sharing claims in excess of USD 6 million with the rest of the
world’s shipowners (about 95 per cent of them being members
in the P&I clubs). The excess reinsurance cost is merely the cost
paid to reinsurers to cover up to USD 2 billion in excess of the
shipowners’ pool.
In the SCOL P&I records, the above mentioned three costs are
shown as “Costs”. The figure in the cost column in SCOL (blue
and underlined) can be clicked on, and then the three various cost
elements are shown individually.
Sharing in layers
The key to understanding the system is to remember sharing. Sharing in layers. The initial layer is your own deductible. The second is
your attritional claims. Low claims will result in low premium and
vice versa. The third is the “abatement” layer; members sharing in
their club. The fourth is the shipowners’ pool, where shipowners
share their claims. The fifth is the excess reinsurance of the pool.
And there is a sixth one, the overspill pool, but God forbid we have
to make a claim up at that level.
I hope the above sheds at least some light on the sharing of
claims in the P&I system. I could present a similar explanation
concerning, H&M insurance, but that has to be in a future issue.
■
So in the SCOL P&I records, we deduct from the premium each
member pays: the abatement (21 cent), the pool (32.5 cent) and the
9
Loss Prevention
PHOTO: THE SWEDISH CLUB
prevention
Facts about Fires (1995-2004)*
n Total number of claims
n Fire damage share
of total damage cost
n Average damage cost
of fires (USD)
n Median damage cost of fires (USD)
n Engine room fires share
of total costs for fires
*
All figures in this article are based on a 100% share
of the risk and are exclusive of deductibles.
10
67
12%
1,000,000
25,000
67%
■■ For several years now, The Swedish Club has been actively involved in minimising and preventing the effects of fires onboard
ships. When looking back ten years at the claims statistics, we note
that a mere 67 claims caused by fires onboard have been reported to,
and dealt with by the Club. This makes fires one of the smallest H&M
claims categories
in regard to frequency. Although
Anna-Karin Lönnstad
few, these 67 fire
Loss Prevention Project Co-ordinator
claims amounted
to 12% of the total damage cost for the period. Because of the relatively high costs and
the often severe consequences, both financial and otherwise involved
in these incidents, the Club has put, and continues to put emphasis
on preventing losses within this area.
The occurrence of fires onboard seems to be consistent regardless
of which type of vessel is operated; meaning that we see no relationship between type of vessel and fire incidents. However, there is one
area onboard the different types of ships that has to be considered
the number-one high risk area for fires. This is, perhaps
not so surprisingly, the engine room. Of the reported fire
Testing of fire
extinguishing
claims, we find that almost half of them originate from
systems at SP
within the engine room representing a whole 67% of the
in Borås.
total damage cost of fires.
These are the facts that lay behind the Club’s aim to
continuously keep track of the development of fire claims, and communicating any interesting findings to our members. Currently, the
Club is actively involved in a very promising research programme,
which was launched in 2004 and is managed by the Swedish National
Testing and Research Institute (SP) in Borås, Sweden. The research
focuses on the development of water mist fire extinguishing systems
for engine rooms larger than 3000 cubic meters, and is a continuation of a study pursued between 2001 and 2003. The results of the
first study, which focused only on smaller engine rooms (<500m3),
attracted a lot of attention internationally, and with the support of
actors in the maritime business as well as from the safety equipment
business, further research is now well underway. The overall objective is to continue to provide the maritime business with useful data
on the ongoing work in the area. Ultimately, the research aims at
presenting an adequately efficient alternative to the controversial
carbon dioxide extinguishing systems, thus making fire fighting in
engine rooms considerably safer for the onboard personnel as well as
for the environment.
The Club will continue to follow the research closely.
■
Loss Prevention
PHOTO: THE SWEDISH CLUB
Get to
KNOWyour
gear!
■■ Are you fully aware of the design
criteria for your ships’ cranes? Were the
cranes designed for hook duty only? Can
they be used in unsheltered conditions
without restrictions?
The Safe Working Load (SWL) marking on a crane jib indicates the maximum
permissible load in the hook. Cranes are regularly tested to ensure that the SWL actually is
a safe load. This is a minimum requirement
defined by the International Labor Organization (ILO).
The life time of a crane has often very little to do with the SWL marking and is based
upon a spectrum with different loads in the
hook. When a general cargo crane operates
with grab it will nearly always be with full grab
which means a load spectrum with maximum
load. A crane working in unsheltered conditions will be exposed to shock loads. These
working conditions will greatly reduce the lifetime of the crane unless the SWL is adjusted
accordingly. There is also a risk of overloading
electrical motors and generators. The oil cooling capacity may also be insufficient.
˛ Detailed information about the design criteria and load limitations for the cranes can
Peter Stålberg
Director – Technical & Loss Prevention
always be found in the maker’s documentation. It is advisable to study it carefully and
ensure that the crew has good knowledge.
˛ If the crane is classed, details about operational approval limitations may be found
in the crane certificate appendices. We
understand that this information has been
introduced during the last few years.
˛ With a view of avoiding off-hire situations
and disputes, ensure that charters are fully
aware of any operational limitation of the
cranes. It is good practice to include this information in the Ship Details appendices.
Slewing bearing failures
on turret cranes
The slew bearing, which is a main structural
load-bearing device that attaches the crane to
the platform, is a potential source for catastrophic failure. In the severest case reported
to the Club, the crane housing detached
from the platform and the crane operator
lost his life. Investigations are still under
way but we note that there are several
factors, such as poor maintenance, overloading and improper use, faulty design
and latent defects, which may contribute
to a slewing bearing failure.
˛ Greasing routines and tilting clearance
measurements (or axial reduction measurements) must always be followed strictly in
accordance with the makers’ instructions.
Beyond this we would also recommend
carrying out analysis of the used slewing
bearing grease every six month, or at a time
interval appropriate to the usage of the
crane. If carried out in a controlled manner, the used grease analysis is probably the
most cost effective and reliable monitoring
method for slewing bearings. The bearing
makers, the grease suppliers or your classification society can usually provide more
detailed advice with regard to inspection
intervals, test methods and evaluation of
the result.
■
11
Crew
Criminalisation of seafarers
- will this contribute to improving
Birgitta Hed
Area Manager
Team Göteborg II
■■ We can all agree that the safety
and environment at sea is of great
concern to us all. These are areas
which unarguably deserves our full
attention and where continuous
improvement of standards must be
sought. Neither do I think that anyone would
disagree that it is a precept of civilised society
that anyone who breaks the law with a wilful
intent deserves to be appropriately punished.
Criminal law is in fact generally based on the
principle of mens rea, criminal intent, as compared to an accidental act. Environmental legislation on the other hand is often based on strict
liability resulting in a criminal liability based on
the consequences of an act or omission rather
than the intention behind it.
There is an extremely important distinction to be made between someone deliberately
breaking the law, and a seafarer conducting his
normal professional duties or indeed a seafarer,
or an independent contractor such as a salvor,
doing their utmost to prevent or minimise a
casualty such as pollution and saving the crew,
the environment and the vessel under extreme
circumstances.
Anyone who deliberately breaks the law, bypasses an oily water separator or knowingly falsifies discharge records must take responsibility
for their actions. This is a criminal act involving
a deliberate and possibly systematic attempt to
mislead the authorities. The remedy is a criminal sanction. This is however very different from
making a mere mistake in the entry of a logbook
or indeed being caught up in a preventative action or accident resulting in a negligent act or
mistake being committed. The dangers of being criminalised for a negligent act or mistake
are substantial and may result in consequences
which will have a very negative effect on the
safety at sea as well as the environment.
Blame culture
Our society is influenced by what can be described as a “blame culture”; there is always
someone to be blamed. Within the field of personal injury this is very noticeable in the U.S. but
also increasingly so in other jurisdictions. Ac12
cidents and mistakes are no longer tolerated and
there appears to be a wide political recognition
of criminalising mistakes which are not morally
and politically acceptable to our society.
The medical profession has been the target
of criminal sanctions imposed against medical
malpractice for many years. Both the construction industry and the service industry have in
recent years seen an increase in the number of
criminal proceedings being issued as a consequence of negligent acts. The shipping industry
is thus by no means alone in its concern regarding the increasing criminalisation of acts of
negligence and mistakes made in the conduct of
professional duties.
The shipping industry is highly regulated.
Statistics show that the degree of trade by sea
is gradually increasing, at the same time the
number of casualties is decreasing. The international awareness and attention given to the safety
and environment at sea has greatly contributed
to this. So has for instance, the implementation
of the ISM Code made loss prevention mandatory. In spite of the regulatory development and the
preventative actions taken by responsible shipowners both referring to human and technical
errors, mistakes will unfortunately be made and
accidents will occur. Any reputable shipowner
will recognise and act upon a genuinely criminal
liability whether it arises out of a personal injury
or environmental damage. It is the increasing
criminalisation of human failure and marine
accidents which is of concern to the shipping
industry – and correctly so. Furthermore, considering some recent cases and developments it
is questionable whether the punishment fits the
alleged crime and indeed whether the environment takes precedent over human life.
Casualties change perceptions and the
international law follows
Though the scope of this article does not allow
for an in depth analysis it is easy to recognise
the impact the following casualties have had on
the development of international legislation, the
objective of which is of course to create a balance of interests and allocation of responsibility.
The following cases can be mentioned; Torrey
Crew
the safety and environment at sea, or…
PHOTO: PIX GALLERY
Canyon 1967, Amoco Cadiz 1978, Exxon Valdes
1989, Nissos Amorgos 1997, Erika 1999, September 11th 2001, Prestige 2002 and Tasman
Spirit 2003.
One of the best known casualties involving
criminalisation of seafarers in modern times was
Exxon Valdes in 1989 with the prosecution of
Captain Hazelwood. Since then we have seen
many cases, particularly involving pollution, resulting in civil as well as criminal investigation,
sometimes criminal prosecution.
The Prestige and the Tasman Spirit are the
two most recent cases which are still very much
in the media, and which have had an important
impact on the discussions and perception of
criminalisation of seafarers. It would not be
exaggerating to say that they have been a horrendous eye opener for the shipping industry,
not least in reference to the manner in which
the seafarers were treated.
The Tasman Spirit ran aground in a dredged
channel near the entrance to Karachi Port. The
vessel eventually broke up spilling approximately
34,000 tonnes of crude oil. The imprisonment
of the “Karachi 8” in Pakistan which included
the master, the crew on duty as well as the salvage master, who in fact arrived in Karachi as a
replacement for the original salvage master four
days after the vessel had broken in two, made
the world react and it was only after lobbying
by a number of international organisations,
Governments and the European Community
that the “Karachi 8” were released after almost
nine months of detention. The Government of
Pakistan apparently demanded an unlimited
guarantee for the release of the detained men,
and it has been argued that the reason for imposing criminal liability against the relevant crew
members was a means to generate income.
The Prestige has had and will continue to
have significant political implications. One suggestion put forward is that the criminalisation
of the master, Captain Mangouras was aimed
drawing attention away from the important issue
of the Spanish authorities refusal of the requested
place of refuge. Following evacuation from his
vessel, Captain Mangouras was arrested and put
in jail for approximately 83 days before he was
released against bail of euro 3,000,000.00. He
was released against strict reporting conditions
but was allowed to leave Spain for a period of
three months over Christmas to visit his home in
Greece. He returned to Spain in February 2005.
If found guilty, Captain Mangouras is facing up
9
continues on page 14
13
9
Crew
continues from page 13
… could it in fact be counterproductive?
14
subjected to the laws of the
jurisdiction within which the
accident occured. They do not
enjoy the protection of their
home countries legal regimes.
The protection rendered under
international law including
MARPOL (The International
Convention for the Prevention of Pollution from Ships)
and UNCLOS (The United
Nations Convention on the
Law of the Sea) does not appear to be sufficient and these
conventions have indeed been
violated in recent cases as regards pre-trial custodial detention and imprisonment, as
well as criminal liability. The
European Commission’s proposed EC Directive on Ship-Source Pollution
is proposing criminal sanctions for ship-source
pollution which is not in line with MARPOL.
France has already introduced severe penalties,
including fines and imprisonment up to ten
years by means of the “Perben II” law which
came into force in March 2004. According
to this legislation, fines can be set up to euro
1,000,000.00 and extended to an amount
equivalent to the ships value or four times the
value of the cargo on board and freight.
France has suffered severely from pollution
incidents but is criminalisation and legislation
like this really the means to go forward? Will
criminalisation of seafarers contribute to improving the safety and environment at sea, or
could it in fact be counterproductive?
I would argue that there is a great risk that
criminalisation will prove to be counterproductive. One of the dangers is that non-conformities may not be duly reported or that the
cooperation rendered to the authorities in the
event of a casualty will suffer severely based
on the threat of criminal sanctions. It is a well
known fact that we learn from our mistakes
and “near misses” hence the reporting of such
incidents must be encouraged in the interest of
the safety and environment at sea.
PHOTO: JAN APPELGREN
to ten years imprisonment.
The Prestige broke in two
and sank six days after her
initial incident off the Spanish coast. Following her first
incident, she was denied place
of refuge, although this was
requested by both the master and the salvors. In fact,
not only was place of refuge
denied, but the authorities
ordered the Prestige to proceed into the Atlantic and
the salvage master actually
had to sign a letter confirming that he would not bring
the vessel within 120 miles of
the Spanish coast. It has been
argued that though the pollution was caused by the vessel,
the extent of damage was a consequence of the
decisions taken by the Spanish authorities.
Another concern is of course the level of
bail demanded from Captain Mangouras
which is equivalent of that set for Michael
Jackson accused of sexual child abuse, and
with financial resources far greater than Captain Mangouras.
The highly politicised climate following
a casualty is evident, and though there is no
excuse for pollution, and sympathy should go
out to all those that are affected by a marine
accident or serious pollution, there has to be
a balance. Appropriate authorities, as well
as politicians have to take responsibility for
contributing to increasing safety and environmental standards. Substandard vessels are of
major concern, and the recent attention given
to substandard vessels within the International
Group is very positive; and will hopefully prove
to be constructive. We all have to contribute to
the improvement of standards. “Oil should be
carried first class” is the slogan of one of our
members. This has not been the case in some
of the recent cases causing serious pollution
incidents. Appropriate compensation has to be
awarded to those who suffer the consequences
of a marine accident or oil pollution. Violations
of pollution laws must be seriously discouraged
and violations with a wilful intent should be
punished. Criminalisation of seafarers would
however appear to be a backward way of approaching the existing problems which would
be more efficiently served by pursuing better
control of the vessel standards and the quality
standard of education, involving seafarers in
the protection of the environment in a positive
manner, rather than making them reluctant
to take proper actions for fear of criminal
prosecution.
Can criminalisation of seafarers
be counterproductive?
There is a deep concern within the shipping community in respect of the increasing
criminalisation of seafarers. The cases in which
seafarers have been treated in a manner which
violates their human rights, are as many as the
cases in which it has been suggested that the
reason for imposing criminal liability against
seafarers has been a revenue exercise, or strictly
politically motivated. It is of course very serious if seafarers are treated as scapegoats for the
failings of others.
An important legal aspect is of course the
question of jurisdiction where the seafarer is
The purpose of the ISM Code is to “provide an
international standard for the safe management
and operation of ships and for pollution prevention”. By correct implementation the ISM Code is
a valuable means for shipowners to prove and demonstrate the responsibility and quality standards
with which they operate their vessels. Providing
that the ambit of the code is fully implemented and
recognised on board, and assuming that the SMS,
Safety Management System, is correctly followed,
the documentation available to the authorities in
case of a casualty should provide important evidence in support of the quality, performance and
responsibility of the vessel and the shipowner. If on
the other hand, the procedures in the management
system are not followed, hence accidents and nonconformities or near-misses are not documented
and duly attended to by corrective actions, the information made available in accordance with the
ISM Code could quite easily be used against the
interests of the vessel, revealing non-compliance
and lack of responsibility.
The vessel’s casualty response and quality system is dependent upon an open reporting of mishaps from which everyone will learn. If seafarers
are intimidated, and do not report mistakes made,
take appropriate actions in the event of a casualty
and cooperate fully and openly in the aftermath of
an incident for fear of criminal prosecution, it will
have a detrimental effect on the safety and environment at sea.
The unique casualty response system within
the shipping industry including salvors, clean up
contactors, the ITOPF and other actors comprising immense technical and legal expertise, are also
bound to be affected by the prospect and threat of
criminal prosecution. If these experts are intimidated into not fully responding quickly, and in
accordance with their professional knowledge for
fear of criminal proceedings, or not getting their
personnel out of a jurisdiction, this will have severe
consequences on the casualty response system presently in place and indeed be counterproductive.
Another negative consequence of criminalisation of seafarers is the affect this is likely to have on
recruitment. If seafarers are subjected to criminal
proceedings, they must be able to rely on their
employer as well as international legislation to
protect them. They must know that they
will be treated fairly, and be without fear
that their human rights will be violated.
Seafarers are entrusted to control and manage vessels which are increasingly expensive
and technically sophisticated. Most vessels
are operated in a safe and efficient manner
by seafarers of a high professional standard.
Fear is not a motivator of quality performance and we need to make certain that the
image of shipping is improved. Shipping and
seafarers as a profession contribute greatly to
international trade and commerce. With the
increasing globalisation there will probably
not be a shortage of seafarers, but it is of immense importance that educated, good quality people are attracted to go to sea. This is
already a problem today, and the increasing
criminalisation of seafarers is likely to have
a negative impact on recruitment.
What can be done to protect
seafarers?
In February of this year, I attended what
I believe was the first open international
conference on the topic of criminalisation
of masters and seafarers. The conference
was arranged by Lloyd’s List Events and
sponsored by IFSMA (the International
Federation of Shipmasters’ Associations).
Many of the speakers and delegates at the
conference have influenced this article, and
I do believe that gathering various interests
in the shipping community to address this
problem will have a positive impact on the
development. IMO, BIMCO, INTERTANKO, the International Salvage Union,
and other prominent shipping associations
have the topic of criminalisation of seafarers
on their agenda.
It is felt that an international instrument
is required to protect seafarers. A joint IMO/
ILO working group met for the first time in
January 2005, the objective of which was to
not only consider guidelines based on UNCLOS, but to also specifically focus on human rights and the fair treatment of seafarers
aiming for prompt repatriation or rejoining
Crew
of the vessel following an investigation. The
working group has prepared a draft resolution to be presented at the IMO Assembly in
November 2005; “Draft Guidelines on Fair
Treatment of Seafarers in the Event of a Marine Accident”. Hopefully, these voluntary
guidelines will lead to a binding resolution
and regime.
Another argument put forward in the
discussions held is to introduce a scheme for
professional sanctions as an appropriate remedy rather than criminal sanctions. A professional sanction could lead to a cancellation
or suspension of the necessary certificates if
deemed appropriate and would probably be
very effective assuming that the responsible
authorities providing the relevant certificates acted in a correct and prudent manner. Such a decision would further need to
be subjected to an appeal procedure. The appeal could be handled by the national court
dealing with labour related disputes in the
national jurisdiction of the seafarer.
For the time being and under the prevailing legal uncertainty the best recommendation to shipowners is to be aware of the risks,
to be as prepared as possible and to have a
contingency plan for criminal investigations. A correctly implemented ISM Code
with a Safety Management System which is
recognised, fully followed and understood
by the crew will be helpful in the investigation following a marine accident. A well
treated and respected crew who feel the
support of the shipowner will assist greatly
not least in preventing hostile witnesses and
avoiding “whistleblowers” who would otherwise be only too eager to tell their version
of the truth to the authorities hoping for a
percentage of the fine imposed as a reward.
Criminalisation of seafarers is contrary
to international law, including UNCLOS
and MARPOL. Hopefully the actions now
taken by various actors in the shipping industry will result in a more sensible system to
find a solution to this very complex issue.
■
15
Crew
Mr Ruben T Del Rosario
Managing Director
Del Rosario Pandiphil Inc, Manila
■ ■ It is not uncommon for a dismissed seafarer to file a complaint before the National
Labor Relations Commission (NLRC) alleging illegal dismissal and claiming salaries
for the unexpired portion of the contract. It
is thus important that employers of Filipino
seafarers are aware of the various aspects of
the law on termination of Filipino seafarers in
order to ensure that the termination is legal.
There are two (2) elements that must be
present before a dismissal of seafarer can be
held valid. These are:
1. Just and valid cause
2. Procedural due process
Just and valid cause
Just causes are enumerated in Section 33 of
the POEA Standard Employment Contract
(Table of Offenses and Corresponding Administrative Penalties) and/or the relevant
Collective Bargaining Agreement. The list is
not exclusive as analogous acts may also constitute just and valid causes. Some examples
of just causes include drug-related offenses,
smuggling, desertion, absence without leave,
drunkenness, act of disobedience to lawful
orders of a superior officer, pilferage or theft,
incompetence and inefficiency, etc. It is highly
recommended that employers be aware of the
list of offenses and the administrative penalties that may be imposed as not all offenses are
punishable by dismissal. It is best to be able to
point out to specific violations in the contract
with a corresponding penalty of dismissal in
order to justify a termination.
Procedural due process
The procedure for effecting dismissal is stated
in Section 17 of the POEA Standard Employment Contract. It requires observance of the
16
two-notice rule in addition to investigation
and hearing.
The first written notice to be served on
the seafarer should contain the grounds for
the charges/infractions as well as the date,
time and place for formal investigation of the
charges.
There is no prescribed formality in conducting the investigation. What is essential is
to give the alleged erring seafarer ample opportunity to explain or defend himself.
In any event, it is best to document the
investigation proceedings. The measures suggested are as follows:
(a) Record or transcribe the proceedings and
prepare minutes thereof. Have all persons
who took part therein sign the minutes
including the seafarer involved.
(b)Enter in the vessel’s logbook what transpired during the investigation including
seafarer’s summary of statements/defenses,
witnesses presented, documents submitted,
seafarer’s admission, etc.
The second written notice is the notice of dismissal to be served on the erring seafarer stating the reasons thereto. A copy of the second
written notice must be furnished the Philippine manning agent.
Complaint before the NLRC
Please note that seafarer may contest the
Master and/or employer’s decision to dismiss
him by filing an illegal termination case before
the NLRC. In such cases, the burden of proof
rests with the employer. It is thus important
that records be gathered and preserved. The
manning agent is probably the best repository
for such records as the case will be heard in the
NLRC and the manning agent and its principal are named as respondents. Most of the
difficulty in handling termination cases lies
with gathering the evidence and getting the
crew to testify. It is thus important to gather
and preserve the evidence immediately after
the termination.
Evidence
The evidence needed in a termination dispute
varies depending on the circumstances of each
case. Some of the useful documents are the
following
1. Vessel’s logbook extracts
2. Master’s or Incident report
3. Affidavit/statements of crewmembers/
other witnesses attesting to the offenses
committed by the seafarer
4. Minutes of investigation proceedings
5. First and second notices (as discussed
above)
6. Performance rating reports
7. Company policy
8. Police and other authorities’ report of the incident
It is preferable that the above
documents be authenticated
or attested by the nearest
Philippine Consulate or Labor Attaché. However, if under the circumstances, such
authentication is uneconomical, impractical or impossible,
a copy of the Official Entry
in the ship’s logbook may suffice. As held in one case decided by the Supreme Court,
the vessel’s logbook is an official record and entries made
by a person in the performance of a duty
required by law are prima facie evidence of
the facts stated therein. Hence, provided
the copy of the logbook extracts bears
the official seal of the vessel’s master, the
same shall be admitted as evidence. In another
case decided by the NLRC, the NLRC ruled
that the logbook extracts together with statements from the master and chief officer were
sufficient to prove the seafarer’s actions and
demeanor. The Labor Code of the Philippines
does provide that labor courts need not follow
strictly rules of evidence prevalent in courts of
law. In labor courts, every reasonable means
to ascertain the facts in each case shall be used
without regard to technicalities.
Exception to due process
While observance of procedural due process is
imperative, it does admit of certain exceptions.
G.R. No. 158693, November 17th
2004). The penalty imposed by
the courts or the NLRC on nonobservance of procedural process
is nominal damages. Such damages are usually reasonable. In
the aforementioned Agabon
case, the nominal damages
awarded were P30,000
(USD 600). It is important
to stress, however, that it is
still a good practice to follow
strictly the rules on procedural due process as
non-compliance will influence the NLRC or
the courts to rule against the employer.
If the NLRC finds that there was no just,
valid or authorised cause for dismissal as defined by law or contract, the seafarer shall be
entitled to his salaries for the unexpired portion of his employment contract (Marsaman
Manning Agency vs. NLRC, G.R. No. 127195,
August 25th 1999). Section 10 of the Overseas
Workers and Overseas Filipinos Act of 1995
does provide for a penalty of three months for
every year of service but the Supreme Court
has interpreted this to mean that this penalty
only applies if the employment contract is
more than one year. As Filipino seafarers have
contracts of less than one year, the penalty for
illegal dismissal is salaries for the unexpired
portion of the employment contract.
Grievance Procedure
One exception under the POEA contract is
when observance of procedural due process
will result in a clear and existing danger to the
safety of the crew and vessel. In this instance,
the seafarer may be dismissed without procedural due process but the master must send a
complete report to the manning agency substantiated by witnesses, testimonies and any
other documents to support the dismissal.
Penalties
If procedural due process is not observed, that
is, the two notice rule is not followed, the dismissal is still considered legal provided there
is just cause for dismissal (Agabon vs. NLRC,
A seafarer working on board the vessel who
believes he has been aggrieved, that is, unjustly
treated or subjected to an unfair consideration
may initiate a complaint in accordance with
the procedures enumerated in Section 16 of
the POEA Standard Employment Contract:
1. The seafarer shall first approach the head of
the department in which he is assigned to
explain his grievance.
2. The seafarer shall make his grievance in
writing and in an orderly manner and shall
choose a time when his complaint or grievance can be properly heard.
3. The Department head shall deal with the
complaint or grievance and where solution
is not possible at his level, refer the com-
Crew
plaint or grievance to the Master who shall
handle the case personally.
4. If no satisfactory result is achieved, the seafarer concerned may appeal to the management of the company or with a Philippine
Overseas Labor Office or consular officer
overseas. The master shall afford such facilities necessary to enable the seaman
transmit his appeal.
5. If after observing the grievance procedure
the master finds that the seafarer violated
the terms of his Contract or has committed breach of discipline, the master shall
discipline the seafarer or, if warranted,
terminate his employment.
6. The seafarer may also seek the assistance
of the highest ranking Filipino seafarer on
board.
When the grievance procedure is availed of
by the seafarer, all actions or decisions must
be properly documented for the protection
and interest of both parties. The grievance
procedure is without prejudice to the seafarer filing a complaint before the voluntary
arbitrator, Philippine Overseas Employment
Administration (POEA) or the NLRC on any
unresolved complaint arising out of his shipboard employment.
Conclusion
Under Philippine law, any doubt in the interpretation of a dispute is to be resolved in favor
of the seafarer. It is thus important to observe
the substantive and procedural aspects of
termination in order to remove any doubt on
the legality of the termination. This will give
the employer a fair chance of defending itself
should the seafarer decide to challenge the
validity of his termination.
■
Del Rosario & Del Rosario handles a number of
illegal dismissal cases. For more information, please
email [email protected]
17
Member portrait
■■ Norgas Carriers AS is a leading participant in the gas trades. An integrated shipping
company engaged in the transportation of
petrochemical gases and LPG, Norgas operates a fleet of 18 vessels, with sizes ranging
from 5,000 cbm to 10,000 cbm. This fleet
trades worldwide. Norgas is wholly-owned by
I.M. Skaugen ASA and has offices in Houston,
Oslo, St. Petersburg, Singapore and Shanghai.
Norgas has been a member of The Swedish
Club since 2001.
Norgas: a progressive force
Norgas provides a full service, with the
emphasis on the support of fully integrated
logistics. Given the nature of the business,
the priorities are safety, environmentallyfriendly operation and service reliability. The
clients include major oil companies, refiners
and traders. Norgas Chief Executive Officer
Morits Skaugen says the company decided to
become members of The Swedish Club “as it
was hard to understand why a Swedish entity
was not making more progress in Norway. We
wanted to give the Club a try.”
Norgas was established in 1982 as the
chartering and marketing operation for a
cooperative pool of LPG carriers – acting on
behalf of several owners. Over the years I.M.
Skaugen gradually became the largest owner
of vessels in the pool and, thus, a shareholder
of the pool company.
The major milestones in Norgas’ development include the October 2003 alliance with
A.P. Møller-Maersk, aimed at enhancing the
semi-refrigerated gas carrier operations of the
two companies. This alliance established a
new revenue-sharing pool known as Maersk
Norgas Gas Carriers (MNGC). This alliance
has further enhanced the marketing of the
Norgas fleet.
18
Commenting on the significance of
MNGC, Morits Skaugen says: “MNGC focuses on the smaller-sized vessel segment of
the petrochemical gas and LPG sectors, with
the emphasis on the short-haul and regional
transportation of ethylene. MNGC controls
34 ethylene-specific vessels, with a combined
capacity of 317,000 cbm. This fleet is over
twice the size of the ‘No. 2 player’. Our overriding objective is to ensure that the alliance
with A.P. Møller-Maersk functions to its full
potential. We will leverage the strength of this
alliance with the market leader to provide
ever greater levels of quality and value to our
customers.”
Norgas has invested heavily in a modern
fleet. In November 2003 the last of a series
of six newbuildings was delivered. These vessels operate worldwide and are recognised as
among the most advanced ethylene carriers
available.
Morits Skaugen says: “These new ships
were purpose-designed to reduce charterers’
costs and further enhance safety. Faster port
turnarounds, faster cargo surveys and improved vessel performance are among the many
benefits of an innovative design featuring only
two cargo tanks.” The entry into service of the
new class vessels was completed by the delivery
from Hudong-Zhonghua Shipbuilding Group
in Shanghai, China of the four 8,556 cbm and
the two 10,200 cbm Norgas vessels.
Norgas’ CEO has a firm vision of the
company’s future development: “We saw an
encouraging upturn in the markets, commencing in 2002. This trend accelerated during 2004. The upturn is expected to continue
for the next few years, as there is an underlying
shortfall of many products in the Asian region,
as there is in the case of ethylene and propylene
in Europe.
“Taking account of this environment, and
given our position regarding both contract
coverage and spot market conditions, we
expect 2005 to be a year of solid financial
performance for Norgas. One priority is to
build on our experience in China, to further
develop China-related business for the Group.
Furthermore, as negative fleet growth in the
sector is anticipated, we expect to maintain
very high fleet utilisation levels, with our
strong contracts base over the coming years
generating acceptable returns on capital employed.
“Norgas’ commercial prospects are influenced by developments in the petrochemicals
market, which is expected to continue to grow
in 2005. Product demand is especially strong
Member portrait
PHOTOS: NORGAS CARRIERS
Mr Morits Skaugen,
Chief Executive Officer
of Norgas Carriers.
in the global gas trades
in Europe and Asia. Ethylene growth in Asia
is expected to top seven per cent in the next
three years. As to the supply side, the Middle East will show a substantial increase in
capacity of all petrochemicals, to reach levels
of 11-13 million tonnes annually in the next
five years.”
In a sensitive market populated by niche
specialists, a constant focus on quality is
essential. The company may have invested
heavily in new tonnage but it has also paid
much attention to the “software” component
– with programmes centring on the availability of high quality seafarers. Morits Skaugen
says: “The results, over the past six years, have
exceeded expectations. The success of these
programmes is underlined by the fact that,
in addition to meeting the needs of our own
extensive fleet, we also provide high quality
sea-going personnel for third parties.”
The quality process begins at the recruitment stage, with Norgas applying a range of
modern selection tools, including psychological testing and sophisticated human assessment methodologies. Norgas has established
independent training centres in St. Petersburg
and Wuhan, China. The training portfolio
includes specialised courses dealing with all
aspects of the handling and transportation of
dangerous cargoes, including liquid petroleum gases, chemicals and oil products, together
with vessel maintenance.
In Russia, Norgas has also established joint
courses and cooperation with the renowned
State Makarov Academy and Makarov Training Centre. In China, Norgas/I.M. Skaugen
have established the WUT-Skaugen Training Centre in a joint venture with Wuhan
Transportation University. This centre offers,
inter alia, Maritime Resource Management
(MRM) courses, Advanced Firefighting (Gas)
courses and practical instruction on board a
training vessel on the river Yangtze.
Engineering innovation is directed at issues with an environmental dimension. Environmental protection, safety and enhanced
profitability are three motivators behind the
development of a transportable unit, for use
on gas tanks, which transforms emissions into
valuable gas products for re-use.
Morits Skaugen explains: “When the liquid gas content has been emptied from a gas
carrier or a liquid gas containment system, a
considerable amount of gas vapour remains
in the tank and associated piping. It has been
the practice, in the past, to vent these volatile
organic compounds to the atmosphere. Now
there is another, more acceptable option.
Gas Recovery Systems AS, a joint venture
between I.M. Skaugen and Bård Norberg, has
developed a versatile and readily transportable Vapour Recovery Unit, housed within a
standard 10 ft container. This unit, designed
to handle a full range of petrochemical gases,
transforms emissions into valuable products of
original quality.”
Innovative thinking also led to the commissioning of Norgas’ offshore purging facility
at Fujairah Roads, in the UAE. This service
produces a significant saving in vessel time,
by combining bunkering and purging, so
much reducing the risk of delay due to berth
congestion. Other support services, including
inspection and tank cleaning assistance, are
also available.
■
19
Club Correspondent
e
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la
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t
a
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n
e
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n
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e
A Corr
Agenzia
Marittima
Prosper
■■ Agenzia Marittima “PROSPER” was
founded by Dott. Giuliano Mattioli over
fifty years ago for the express purpose of
representing, as general agents in Italy, the
Mitsui Steamship Co Tokyo (later to become
Mitsui O.S.K. LINES after the merger in 1964
with Osaka Shosen Kaisha), and in the sixties
Prosper was appointed by The Swedish Club as
general correspondents for Italy.
The company is still conducted by the
Mattioli-Castelbarco family and celebrated
its 50th anniversary in December 2004.
Agenzia Marittima “PROSPER” has two
head offices in the main national shipping
and economic centres of Genoa and Milan.
Competent and enthusiastic staff members
with expert knowledge and a network of correspondents at main national ports enables us
to act as a modern, organised and productive
enterprise.
Prosper Shipping Agency is working in the
sector of the sea maritime transport conveyance, in particular between the Mediterranean
and the Far East. Our long-standing dealings
with our Japanese partners and The Swedish
Club have led our company to acquire and
strengthen a valuable experience in the shipping and maritime insurance fields.
The strong evolution, which has been
characterising the market for many years, has
led Prosper to adopt specific strategies to reach
objectives in extremely targeted sectors.
Prosper provides a wide range of service, in
particular:
§ Organisation and supervision of port operations for conventional ships, full container
ships, car carriers, and performance of all
formalities relating to ship's call.
§ Co-ordination and computerised management of container yards for shipowners.
§ Commercial acquisition in Italy of inbound
and outbound cargoes.
20
§ Consolidation/containerisation of “groupage cargo” and related consultancy for the
most efficient use of containers also for large
sized cargoes.
§ Management and supervision of road haulage, rail and intermodal transports.
§ Prompt intervention on ship and cargo for
ascertainment of damages and claims handling either directly or in co-operation with
first class lawyers and surveyors.
§ For completeness Prosper represents besides
The Swedish Club also a primary Japanese
marine underwriter.
We feel proud of our activities in favour
of The Swedish Club: out of our many cases
we like to remember the assistance given in
interviewing some witnesses in connection to
the Stockholm/Andrea Doria collision, in the
shipment of Michelangelo’s Pietà to New York
and, more recently, the London Maersk impact
against the breakwater in Genoa with a leakage
of about 200 tons of fuel and consequent heavy
pollution of the area.
Club Correspondent
Club Information
Updated
List of
Correspondents
now available
on our website
From left to right: Mr Giovanni Lituania, Mr Cesare Castelbarco, Mr Ezio Squadrani, Ms Ricciarda Mattioli
Castelbarco, Mr Roberto Rimassa and Mr Erasmo Fiorillo.
The casualty took place at only approximately ten nautical miles from the position
where the famous Haven case took place a
few years earlier hence following in the wake
of strong protests being made by inhabitants
in the area, supported by members of environmental parties and local authorities. Owners
and their insurers were in that case accused
for the delay in indemnifying for damages
suffered. In spite of all this, our case was kept
at a very low profile thanks to the prompt intervention of the antipollution team, our good
relationships with Port Authority and Harbour
Master and, mainly, to the good reputation of
The Swedish Club.
Among many courts judgements in our
favour, it deserves to be mentioned:
§ M/V Columbialand – Naples, November
1981 – Cargo collapsed into the hold Cargo
underwriter’s claim for the amount of USD
2,000,000
§ M/V Zim Yokohama – December 1988
– Grounding in the Strait of Tiran Various
cargo underwriters’ claims amounting to
USD 800,000
§ M/V Erka Sun – La Spezia, September 1998
– Cargo collapsed into the hold Cargo underwriter’s claim for the amount of USD
700,000
Despite the difficulty of these cases we
were quite successful, judgements were in our
favour and no disbursement was incurred by
The Swedish Club.
Even if Prosper cannot claim to be a multinational giant, through its own sales capability,
we have customers who are actually multinational giants like: Fuji Film, Pirelli, Canon,
Toyota, Fiat, Daikin, etc.
Prosper is formed by 27 people divided
in the two main offices of Genoa and Milan.
The company has established, in the course of
the last 50 years, a high reputation for quality
and responsiveness to principals’ needs and its
mission, for the next 50 years, is to improve,
whenever possible, the actual standard.
■
■ ■ As has been published before, we do
our utmost to improve our services, and
part of that development is extending the
services provided through our website.
This phase of development concerns our
world-wide network of correspondents.
Throughout almost all of the Club’s
existence, it has been our tradition to
provide our members each year with a
booklet listing all our correspondents
in the ports around the world. If the
master urgently requires the assistance of
a local correspondent, the book provides
him with local contact details. This has
worked perfectly as long as we have been
updated with changes in addresses and
phone numbers.
Providing ships and members with the
booklet is something we will continue to
do. It is needed in many instances. However, there are some areas in which we
provide services that we do not feel we
exceed expectations.
To meet the demand for accurate information we have decided to improve our
service by making the List of Correspondents also available on our website. Earlier
this year we put a pdf file on our website,
but now we have an interactive search
tool to help find the local correspondent
in each port.
So please do not hesitate
to use this new improved service at
www.swedishclub.com
21
MRM
Meeting in progress. In March 2005 a group of MRM workshop leaders gathered in Goa, India, to discuss a revision of the Maritime
Resource Management training programme. Front row from left to right: C/E Alfredo Haboc, PHILCAMSAT, Makati City; Capt K.N. Deboo,
Anglo-Eastern Maritime Training Centre, Mumbai; Capt S.M.R. Rizvi, Wallem Maritime Training Centre, Karachi; Capt A.P. Sethi, Eurasia
Centre for Advanced Learning, Mumbai. Back row from left to right: Martin Hernqvist, The Swedish Club, Göteborg; Capt S.S. Manjeshwar,
Wallem Maritime Training Centre, Mumbai; Capt Hans Hederström, Chalmers University of Technology, Göteborg; Capt Fredrik Hjorth,
Kalmar Maritime Academy, Kalmar.
BROADER view of MRM
■ ■ On January 1st 2005, the
Club began intensifying its efforts to further develop the MarMartin Hernqvist
itime Resource Management
Manager
Maritime Resource Management
(MRM) training programme.
The programme aims at fostering positive attitudes towards teamwork, efficient communication and the use of standard operating procedures for key
shipboard operations. An important objective is to provide
methods that will increase situational awareness in people’s
daily work. Situational awareness is to “know what is going
on around you” and is critical for correct decision making
and action onboard the ship. Club analyses have shown that
failures in these areas are major contributing factors in accidents. (See page 25 of TSC Letter No. 2 – 2004.)
System failure
Aside from causes related to attitudes and behaviour of individuals there are risks related to limitations in human performance. This concerns for example, the effects of fatigue
which are more difficult to deal with through training. People
impaired by fatigue could indicate a system failure, i.e. the
imbalance between demands and resources. In this context, it
is not just the shipowner who has responsibility. This involves
all parties in our industry that for various reasons require the
attention and services of seafarers.
Other side of the sharp end
This reasoning leads us into an area further away from the
people at the sharp end. When things go wrong, it is easy
to blame the people on board. In many cases though, those
22
involved did what they thought was right at that very moment. Even if it may be hard for us ashore to accept, factors
contributing to accidents may often have their origin in
company policies and procedures. Some examples are, the
selection and evaluation of crew, familiarisation, training,
manuals, workload, manning levels etc.
Company culture
Over the last decades, the focus of causes of accidents has
changed from technical to human. Organisational factors are
now becoming more and more the centre of attention. Seafarers work in a system built up by company habits, traditions,
principles and values – the company’s culture. The likelihood of accidents is dependent upon whether the company’s
culture leads to the sweeping of problems under the carpet,
or seeing them as opportunities to make improvements.
Variations in company culture can lead to one shipowner
being affected by incidents fairly often, while another can be
practically claims free.
At the beginning of this year, based upon both old and
new knowledge in these areas, the Club launched a project
to revise and update the MRM training programme. The
knowledge and experience of MRM users around the world
will form an important part of the development process.
Readers who wish to know more about MRM, or who
want MRM training to be available at their local training
sites, are welcome to contact MRM Manager Martin Hernqvist at: [email protected] or +46 31 638 420.
More information is also available at www.swedishclub.com.
■
Club Information
25 Years with
The Swedish
Club
■ ■ This year we logged the 25th anniversary
of Captain Claes A Lindh working for The
Swedish Club. This was celebrated with a ceremony in which he was awarded The Swedish
Club Golden Pin.
Captain Lindh joined The Swedish Club
in 1980 as a claims executive in the Hull
Claims department. Prior to his employment
he had served for eight years on ocean going
cargo ships. Five years later he was promoted
to a position as underwriter and in 1994 he was
made Director of Underwriting and assumed
total control of The Swedish Club’s underwriting and reinsurance activities.
A quarter of a century ago, The Swedish
Club had just ventured into the international
market. A majority of the members were
Swedish as compared to today where only six
per cent of the H&M and ten per cent of the
P&I is Swedish based. This 25 year period has
also been associated with a major expansion.
The H&M entries were 6.7m gross tons (GT)
New
Members
(since October 20th 2004)
Captain Claes A. Lindh.
which has grown to over 50m today. The corresponding figures for P&I are from 2.6m GT
to 17.1m today.
The annual report for 2004, showing the
result as of December 31st 2004, concludes the
last cycle starting in the peak year 1994. During these eleven years the Club has increased
the reserves by USD 45 million, not including
returns made to members during the period.
Both the H&M and P&I classes show over
the period a positive technical result which
has resulted in that the Club has not charged
the members for P&I any supplementary or
additional calls. The Club is also one of the
very few hull underwriters that have never
made a technical loss on the gross result during this cycle – instead returned premium to
the members.
Captain Lindh continues in his position as
Director of Underwriting in the new organisation, supporting the underwriters in the teams.
The current strong financial position of The
Swedish Club and the recognition as the
world-wide provider of high quality service
is creating a solid platform upon which to
base positive development in H&M, P&I and
FD&D. Today all these three classes of business show all time high record levels.
■
Attica Q.S.T.L.G., Greece
H&M
Leif Hoegh & Co. Shipping AS, Norway
H&M
Arctic Shipping, Germany
H&M
Lomar Shipping, UK
H&M
CEC Shipmanagement NL BV, The Netherlands
H&M
P&I
FD&D
LPL Shipping SA, Greece
H&M
P&I
FD&D
Chidori Kaiun Co., Ltd., Japan
FD&D
Cido Shipping (H.K.) Co., Limited, Japan
H&M
Marlow Shipmanagement Deutschland
GmbH & Co. KG, Germany
H&M
Dag Engström Rederi AB, Sweden
H&M
P&I
Nanjing Tankers Corporation, PRC
H&M
Reederei Stefan Patjens, Germany
H&M
Dileton Maritime SA, Greece
H&M
P&I
FD&D
Shanghai Time Shipping Co. Ltd., PRC
P&I
Starmarine, Greece
P&I
Fairdeal Group Management S.A., Greece
H&M
United Arab Shipping Company, Kuwait
P&I
General Maritime Enterprises Corp., Greece
H&M
Western Shipping Agencies, Greece
H&M
Hebei Ocean Shipping Co.Ltd., PRC
H&M
Victoria Steamship, UK
H&M
John Giavrides Inc., Greece
P&I
FD&D
World Carrier Corporation, Greece
P&I
FD&D
Kritsas Shipping S.A., Greece
P&I
FD&D
23
REVIEW
Articles provided by The Scandinavian Shipping Gazette www.shipgaz.com
New inquiry into the sinking of ”Estonia”
IMO critical of criminalisation of seafarers
SSG-GÖTEBORG ■ The Swedish government has decided
to award SEK 8 million (EUR 0.9 million) to a research
project into why “Estonia” sank so fast. The study will look
into the course of events when the vessel went down and
also international research institutions are welcome to
apply for the study from the Swedish Agency for Innovation. The aim of the study is to enhance maritime safety. A
preliminary study was carried out in 2003. (17.03.05)
SSG-TØNSBERG ■ IMO is critical to the recent decision of
the European Parliament to adopt legislation introducing
criminal penalties in cases of ship pollution committed
with intent, recklessly or by serious negligence. The IMO
Secretary General, Efthimios Mitropoulos, said after a
meeting in Brussels that “while deliberate acts of pollution
need to be treated appropriately, the sanctions imposed
in cases where negligence or simply the forces of nature
have been the primary causal factor should also be appropriate in their severity.” But he wondered whether
imposing criminal sanction in such cases was the appropriate response. At the meeting, he highlighted the role
of the IMO in respect of marine pollution prevention and
response through the adoption of a series of relevant IMO
instruments, particularly those embedded in the Marpol
Convention. (22.03.05)
EMSA call for oil spill response vessel
SSG-GÖTEBORG ■ The European Maritime Safety Agency, EMSA, has released a call for expressions of interest to
position oil spill response vessels. The agency wants to
contract vessels normally used in commercial activities,
but which could be operational as oil recovery vessels at
very short notice. The vessels will be complementary to
the coastal state’s own resources.
The call this time covers four geographical areas: The Baltic Sea (Göteborg–St. Petersburg), the western approach
to the English Channel, The Atlantic coast and the eastern
Mediterranean. An operator can express interest for one or
more areas. For the Baltic Sea, the aim is to charter a total
oil recovery capacity of 1,500–3,000 cubic metres. If the
operator offers two or more vessels, the minimum capacity
of each vessel must be 700 cubic metres. Several vessels
will also increase the probability of a fast response. The
vessels can be equipped with the necessary equipment
permanently or it could be stored ashore for rapid installation. Ice class 1B is a minimum requirement in the Baltic
Sea.
The budgetary framework for this call is EUR 17.5 million for 2005, of which EUR 4.5 million is earmarked for
the Baltic Sea. EMSA aims to sign agreements for at least
three years and the closing date is July, 2005. A new call
for additional resources in the Baltic Sea, the Atlantic coast
and the western Mediterranean will be launched in 2006.
(09.03.05)
24
ICS attacks EU on spill criminalisation
SSG-TØNSBERG ■ The EU’s Draft Directive on Ship Source
Pollution, which seeks to criminalise seafarers involved in
also accidental pollution, has been fiercely attacked by the
International Chamber of Shipping (ICS) for destabilising
international safety conventions under the IMO umbrella.
The ICS chairman, Norwegian Rolf Westfal-Larsen, says
that the IMO Marpol provisions reflect the view of the global regulators that criminalising accidents is neither reasonable nor just because of the physical hazards that exist
at sea. He also points to the fact that the new draft directive contradicts the EU’s own plans, which require vessels
in difficulties to use places of refuge in EU countries. ICS
points out that much local regulation of draft regulations
is at odds with Marpol. Many EU members have still not
ratified existing Marpol rules. Therefore, Westfal-Larsen
says in a statement, it is “not acceptable for the EU to
declare, as the Justice Ministers have done recently with
regard to criminalising accidents, that if the EU rules are in
conflict with the IMO, then the solution is simply to amend
the global regulations to fit their wishes”. (03.02.05)
Eight states submit new ship routeing measures
in the Baltic Sea
Mangouras free to go home pending trial
SSG-GÖTEBORG ■ All coastal states, except Russia,
have submitted a proposal to enhance maritime safety
in the Baltic Sea. Also Russia has agreed on the proposed
measures, although Russia isn’t a party to the application to class the Baltic Sea as a PSSA. New traffic separation schemes will be introduced in the Bornholmgat and
north of Rügen. Ships with a draft exceeding 12 meters
will be obliged to use the deep-water fairway from the
Bornholmsgat and pass south of Hoburgs Bank and Norra
Midsjöbanken on their way to the Bay of Finland. Hoburgs
Bank and Norra Midsjöbanken will also be areas to be
avoided for vessels over 500 GT. A decision from IMO is
expected in the spring next year. The new measures will
then enter into force by the end of 2006. (04.03.05)
SSG-GÖTEBORG ■ Apostolos Mangouras, 70, master of
the tanker Prestige, which was lost off Spain in November,
2002, and caused a major environmental disaster on the
Spanish coast, has now been permitted to leave Spain and
go home to Greece pending a trial date. Mangouras was
jailed for three months immediately after the disaster. He
was released on a EUR 3 million bail and ordered to report
in person to the Spanish police on first a daily and later a
weekly basis. Last autumn, he was allowed to leave Spain
to travel to his native Greece for a 3-month period during
which he celebrated his 70th birthday. He then returned to
Spain. A Spanish court has now permitted Mangouras to
leave for Greece again, where he has to report to the local
police on a fortnightly basis. (07.03.05)
Sweden and Finland present super ice-breaker
Political support for UK demolition plans
SSG-GÖTEBORG ■ The Winter Navigation Research
Board has published a report containing a concept study
of a new mega ice-breaker capable of assisting tankers of
up to 200,000 DWT. The vessel has a waterline length of
174 metres and a beam of 48 metres amidship. The vessel
is, however ,designed with outriggers with ice-cutting
blades that create a 100 metre wide channel behind the
ice-breaker. The draft will be 15 metres and a 60,000 horse
power propulsion plant will enable the vessel to move
continuously in unbroken ice with an average thickness of
about 6.5 metres. Steel weight amounts to 31,000 tonnes
and the lightship weight is estimated at 42,000 tonnes.
During ice-breaking, it is estimated that the vessel will
burn 250 tons of fuel oil per day; its bunker tank capacity
is 20,445 tonnes. The price tag for this giant is estimated at
USD 250 million.
The joint Swedish/Finnish Winter Navigation Research
Board is a body in which the maritime administrations of
the two countries have supported research on safer winter
shipping for more than 30 years. (16.02.05)
SSG-TØNSBERG ■ The UK Labour Government has lent
political support to plans for domestic shipbreaking facilities. In a recent report, a cross-party parliamentary
committee recommends the development of a scrapping
sector in the UK. So far, the intention is to start with stateowned vessels, which will be scrapped according to new
rules now being discussed with the aim of making ship
demolition more environmentally friendly. The UK is currently participating in a joint working group set up by IMO,
the Basel Convention and ILO. (27.01.05)
Fear of AIS data misuse
SSG-TØNSBERG ■ The Association of German Shipowners (Verband Deutscher Reeder, VDR) has expressed fear
that Automatic Identification System (AIS) data from vessel
can be misused. According to Director of Operations at
Hapag-Lloyd, Henner Meyer, this information is available
on internet. He feels that this is unacceptable and must be
stopped. He pointed to several inconsistencies when the
IMO rules were written into German law. IMO secretary
general Efthimlos Mitropoulos said at a German conference on container security that serious disruption of global trade would have serious consequences. The US has
demanded measures to control what goes into containers
to prevent terrorist using the boxes. (21.01.05)
EU rejects massive critique of criminalisation
SSG-GÖTEBORG ■ “It is not a question of criminalising
all seafarers when an oil spill occurs”, says the EU Commission. The massive critique from the international shipping
community is also a disappointment for the Commission,
which feels that there should be more support for actions
taken to get rid of rogue operators.
The concern voiced by the international shipping organisations over the directive which recently passed the Parliament, is however strong. According to the organisations,
there is a risk that people in shipbased and shorebased
organisations could also be punished for accidental oil
spills. The consequences could be severe. Crews will think
again before taking a damaged vessel to a safe haven in
an EU member state. It could hamper the recruitment of
young people to the industry. Salvors could say no to a
salvage mission if not guaranteed immunity, as there is a
risk of being punished if oil leaks out during the operation.
(23.03.05)
Good results from security campaign
SSG-GÖTEBORG ■ The results from the three-month long
campaign on ISPS compliance launched this summer by the
port state control organisation Paris MOU are encouraging.
A total of 4,681 inspections were carried out and 72 led to
detentions for security reasons. This represents a rate of 1.5
per cent, compared to current general detention rate of 5.7
per cent. Container carriers, bulkers and tankers had the
lowest detention rates, 0.2 per cent, 0.5 per cent and 0.6
per cent respectively. The Flag states Georgia, North Korea,
Panama, Russia, St Vincent & Grenadines and Syria had detention rates above average and these flags also accounted
for more than 50 per cent of all detentions. (17.12.04)
More WWL contracts for low sulphur fuel
SSG-TØNSBERG ■ Wallenius Wilhelmsen Lines has signed
another two contracts with Sannes (Shell Marine Products)
and ExxonMobil for supply of low sulphur fuel – 1.0 per
cent sulphur content – in order to meet the company’s
environmental targets for this year and beyond. Under a
three-year contract, Shell will supply between 200,000
and 300,000 tonnes of bunker fuel per year up until 31 December, 2007, from depots in Göteborg and Bremerhaven,
while the ExxonMobil contract calls for 100,000–150,000
tonnes this year from Southampton. Last summer, a
one-year contract was signed with Petrobras for 150,000
tonnes of 1.5 per cent sulphur fuel oil to be supplied from
Singapore. By the end of last year, WWL had met its target
of using only fuel with a max 1.5 per cent sulpher content.
They are thus keeping well ahead of current legislation of
sulphur content. (24.01.05)
Norway designates 60 ports of refuge
SSG-TØNSBERG ■ Norway has designated 60 ports of
refuge as part of a total contingency plan to combat oil
spills. The list of designated areas is not final, according
to the Ministry of Fisheries, which is responsible through
the Norwegian Coastal Administration (Kystverket). The
minister for fisheries, Svein Ludvigsen, has now admitted
that the contingency plans are far from adequate. The list
is contained in a new white paper on oil spill contingencies
published last week, Ludvigsen says that Norway is not
prepared to deal with a major incident. (24.01.05)
25
Club Information
Club Evening
■ ■ During our traditional Club Evenings
in Göteborg and Stockholm on March 8th and
10th, (held twice yearly since 1994), we had the
pleasure of listening to Mr Anders Klingström
from Svenska Hamnar, Ports of Sweden. Ports
of Sweden is an industry and employers’ organisation comprising 50 port companies and
over 4,000 employees.
Mr Klingström informed us about the
work behind the implementation of the ISPS
Code in Swedish ports.
Mr Anders Klingström.
Interested audience at the Club Evening in Stockholm.
Guests at the gathering during the Club Evening in Göteborg.
26
Club Information
Staff News
Public Holidays
STAFF NEWS
Ruizong Wang has been appointed
Managing Director of The Swedish Club
Hong Kong Ltd and Area Manager of
Team Asia as of April 15th 2005.
Tord Nilsson has returned to Sweden after
five years’ service as Managing Director
of The Swedish Club Hong Kong Ltd and
Area Manager of Team Asia. Tord started
his new position as Area Manager for Team
Göteborg I on April 15th 2005.
Kjell Augustsson has moved to Hong
Kong and been appointed Deputy
Managing Director for Team Asia as of
March 15th 2005.
PUBLIC HOLIDAYS
when The Swedish Club
offices are closed
May - October 2005
Head office Sweden
May 1st
Labour Day
May 5th
Ascension Day
June 6th
National Holiday
(Sweden’s Flag Day)
June 24th
Midsummer Eve
Greece
May 1st
Easter Sunday/Labour Day
May 2nd
Easter Monday
June 20th
Whit Monday
August 15th
Assumption day
October 28th
National Anniversary
Hong Kong
Emergency tel +852 2598 6464
May 2nd
Labour Day
May 16th
Buddha’s Birthday
June 11th
Dragon Boat Festival
July 1st
Hong Kong Special
Administrative
Region Establishment Day
September 19th Mid-autumn Festival
October 1st
National Day
October 11th
Chung Yeung Festival
Japan
24 hour tel +81 3 5442 5466
May 3rd
Constitution Memorial Day
May 4th
National Holiday
May 5th
Childrens’ Day
July 18th
Marine Day
September 19th Respect for the Elderly Day
September 23rd Autumnal Equinox Day
October 10th
Health and Sports Day
Martin Hernqvist has been appointed
Manager, Maritime Resource Management
as of January 1st 2005.
Fredrik Olsson, Claims Executive, has
returned to the head office and Team
Göteborg III after a six-month assignment
in the Club’s Hong Kong office.
Fredrik Kruse has returned to Sweden after
seven years in our London and Piraeus
offices. Fredrik started his position as
Senior Advisor with Team Göteborg III on
March 7th 2005.
Annica Börjesson, Claims Executive, has
accepted permanent employment as of
April 1st 2005. She started as a summer
trainee with the Club in June 2004 and
has since August 16th been working as a
substitute for Cleopatra Georgantzis in
Team Göteborg I during her parental leave.
Martin Eriksson, AD/Web Developer, has accepted
permanent employment as of April 1st
2005. He has been working as a substitute
for Petra Setterberg during her parental
leave.
Vivian Roinioti joined the Club’s Piraeus office on March
17th 2005. Vivian will take up the position
as Office Assistant in Team Piraeus.
Theresa Lam joined the Club’s Hong Kong office on
March 21st 2005. Theresa will take up the position as Team
Assistant in Team Asia.
Linda Kan has resigned from the Club’s
Hong Kong office after nearly eight years’
service as Team Assistant. We wish her all
success in her future career.
27
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28

Criminalisation - The Swedish Club

Transcription

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