CURRENT AWARENESS BULLETIN - IMO

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CURRENT AWARENESS BULLETIN Volume XXIV – No. 7 July 2012

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MEETINGS Click here for the programme of IMO meetings for 2012, the summary reports for meetings held so far and the provisional agenda.

PRESS BRIEFINGS IMO NEWS (Issue 2, 2012) Digital version of latest issue NEW IMO PUBLICATIONS

SECRETARY-GENERAL SPEECHES THE UNITED NATIONS UN News Centre

UN Dispatch

INDUSTRY NEWS AND PUBLICATIONS: CONTENTS SOURCES CASUALTIES LAW AND POLICY MARINE TECHNOLOGY MARITIME SAFETY MARITIME SECURITY AND PIRACY NAVIGATION AND COMMUNICATIONS POLLUTION/ENVIRONMENT PORTS AND HARBOURS SEAFARERS SHIPBUILDING AND RECYCLING OF SHIPS SHIPPING SPECIAL REPORTS

Important notice: this Current Awareness Bulletin is published by the Maritime Knowledge Centre and is not an official IMO publication. Titles of articles are reproduced in the Bulletin as they appear in the magazines or newspapers. Selection does not imply any endorsement by IMO of the article, journal, author or publisher. Please note that use of names of States, territories, land areas, bodies of water and adjectives of nationality may not be in concordance with United Nations and IMO guidelines and IMO bears no responsibility for them.

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The Bulletin and previous issues can also be found on the IMO website in the Maritime Knowledge Centre Pages. To unsubscribe send an e-mail to [email protected]

SOURCES New publications listed are all available for consultation in the MKC. For copyright reasons we are unable to send copies and you are advised to contact the publishers. Click here for the latest MKC Acquisitions List. Please note that the following list contains excerpts only. The full text of articles in this issue are available from the sources listed below: BIMCO Bulletin: http://www.bimco.org Bunker Bulletin: http://bunkerworld.com Fairplay International Shipping Weekly: http://www.fairplay.co.uk Fairplay Solutions: http://www.fairplay.co.uk/solutions/solutions_thismonth.aspx IALA Bulletin http://www.ialathree.org/chapo/publications/publications.php?LeTypePub=11 Lloyds’ List: http://www.lloydslist.com MER http://www.imarest.org Naval Architect: http://www.rina.org.uk/tna.html Safety at Sea: www.safetyatsea.net Seaways: http://www.nautinst.org/Seaways/index.htm Tanker Operator: http://www.tankeroperator.com TradeWinds: http://www.tradewinds.no

CASUALTIES More lives lost off Indonesia “A least 44 people are missing from a wooden boat that sank off eastern Indonesia, the Jakarta Globe newspaper reported. KM Putri Ayu sank in heavy weather two hours after leaving Ambon City in the Maluku islands on 16 June. Local search teams managed to rescue 12 people and later recovered 14 bodies, but there was confusion about how many other people from the vessel were missing.” SAFETY AT SEA, August 2012, p 7 MSC Flaminia under tow to Europe - By Jing Yang "A tug operated by salvage company Smit has started to tow the damaged containership MSC Flaminia to Europe. However, the exact destination was not yet clear, a spokeswoman for ship manager NSB Niederelbe said. She added that this would probably be decided by tomorrow. In the meantime, the fire has affected the cargo holds 4, 5 and 6, according to NSB. Hold No. 7, which is directly in front of the superstructure, was not affected, the spokeswoman said. The fire was not expected to spread, as the vessel’s own firefighting system is now being used to cool this area, she added. The 2001-built, 6,750 teu MSC Flaminia has been on fire for 10 days, following an explosion that killed one person and injured three others. A second blast ripped through the vessel last Tuesday." LLOYD’S LIST, 24 July 2012, p 2

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LAW AND POLICY Should flag states hold insurance details? - By Liz McMahon "There is a global disparity between shipping registries in which some keep a record of the insurance arrangements of vessels they register and check them against an approved list, while others do not. The Stockholm International Peace Research Institute's Hugh Griffiths, who heads the Countering Illicit Trafficking - Mechanism Assessment Projects, said that while conducting his research on the development of insurance cancellation as a means to disrupt oil and arms flow he was surprised by how difficult it was to obtain accurate insurance details of certain vessels. One method is via the flag state, but Mr Griffiths said flags of convenience could refuse to say where vessels were insured. He added that the Hong Kong Ship Registry had even told him it did not hold insurance information. "Certain flag states have not requested insurance documents and don't know if the vessels they are registering are insured," he said." LLOYD’S LIST, 2 July 2012, p 2 Owners face seafarer lawsuits after landmark Maersk case - By David Osler "A recent court ruling in Florida leaves shipowners facing the threat of legal action from seafarers who feel that their working

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conditions at sea have contributed to poor health, both in the US and other jurisdictions, lawyers have confirmed. William Skye, a former chief officer with Maersk, was awarded hundreds of thousands of dollars after he claimed that he had suffered heart damage as a result of working 16 hours a day at sea, forcing him to take early retirement at the age of 54. "This is an important case, because it paves the way for similar-situated crew members who are injured by working too many hours and too many duties," said Jason Magulies of Lipcon Margulies Alsina & Winkleman, who acted for Mr Skye." LLOYD’S LIST, 6 July 2012, p 3 Indian insurance to carry Iranian oil is ‘insufficient’ - By Liz McMahon. India’s shipowners fear that the $50m limit for third-party cover provided by United India Insurance for vessels carrying Iranian crude will not be sufficient in the event of a major accident. The Insurance Regulatory Development Authority has approved a UII product that provides just 5% of the third-party P&I cover offered by the International Group of P&I Clubs. Clubs in the IG provide a limit of up to $1bn for pollution damage claims per tanker voyage. As it is a mutual organisation, the clubs’ members share the risk. But under the new Indian proposal, if claims exceed the $50m limit, shipowners will, in theory, be individually liable to pay the rest. LLOYD’S LIST, 11 July 2012, p 2 Carnival faces fresh lawsuits in the US - By Liz McMahon "Passengers on Costa Concordia have filed a new complaint against Carnival and its Miami-based architect. Carnival is being sued for product design and for a pattern and practice of concealing or delaying notification of life-threatening situations to passengers on board its cruiseships. The architect is being sued for defective ship design. One law firm representing passengers, Napoli Bern Ripka Shkolnik & Associates, said the suit alleges that Carnival was aware that the ship's hull design and power systems were defective. In February 2010, the hull of Carnival's Costa Europa was punctured against a dock in Egypt creating a six-foot hole, roughly a 30th the size of the hole in Costa Concordia's hull. Costa Europa then flooded, killing three crew members and injuring at least four other people." LLOYD’S LIST, 13 July 2012, p 4 th

51% increase in LLMC 96 liability limits adopted “The main issue on the agenda of the 99 session of the IMO’s Legal Committee, held from 16 to 20 April in London, was the proposal to amend the limits of liability of the Protocol of 1996 to the Convention on Limitation of Liability for Maritime Claims, 1976 (LLMC 96).” BIMCO BULLETIN, Vol.107, No.3, pp 52-53 Legal impacts loom from emissions regulations “A new wave of emissions regulations is about to hit the industry. In 2010 a critical amendment was made to the UK’s Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 to include marine fuel sulphur oxide (SOx) emissions. This amendment – regulation 32(1) – provides for criminal offences, which are categorised by reference to the identity of the offender, for example the owner, manager, demise charterer or master of the ship in question. To avoid the risk of criminal prosecution and fines for breach in the event of a conviction, it is crucial that these actors all take care to comply. They should also be alert to the possibility of having a ship detained where there are clear grounds for believing a regulation has been contravened.” FAIRPLAY, 26 July 2012, pp 24-25 OMAR, A.H. - A law on the accession of the Syrian Arab Republic to the United Nations Convention on contracts for the international carriage of goods wholly or partly by sea - Rotterdam Rules : A legislation drafting project submitted in partial fulfilment of the requirements for the award of the Degree of Master of Laws (LL.M) in international maritime law at the IMO International Maritime Law Institute (IMLI). Malta : IMLI, 2011

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MARINE TECHNOLOGY Japan happy with green-ship definition at OECD - By Craig Eason "Japan made some progress in finding a definition of a green ship at the latest shipbuilding meeting of the Organisation for Economic Cooperation and Development, writes Craig Eason. Japan delivered its revised proposal, with Norway agreeing to it and the European Union giving technical agreement, Lloyd's List has been told by the Japanese contingent at the talks. Brussels has apparently suggested that the definition needs to include more than just CO2 measures, pointing to the rules on sulphur and nitrous oxides that are tightening over the coming decade. South Korea was moving towards agreement of a definition, but wants more time to consider." LLOYD’S LIST, 3 July 2012, p 7 Koreans join race to solar "South Korean operator STX Pan Ocean has become the first non-Japanese operator to install solar panels on one of its car carriers. The 20 panels installed on the 60,396gt car carrier STX Dove are each 25m wide and 11m long. They can generate a maximum of 24kW, providing

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5% of the electric power required for the operation of the ship. Through modifications of the module, STX plans to increase the output to 60kW this year and 120kW in 2013. The company expects that solar energy can ultimately provide about 30% of the power needed to operate the ship." FAIRPLAY SOLUTIONS, July 2012, p 58 Production boom will shape choice of emissions-reduction technology - By Craig Eason “If Leonardo Maugeri’s projections of a dramatic increase in oil production in the coming decade prove to be accurate, the development will have a profound impact on marine fuel availability and thus on price, writes Craig Eason. Although it will not affect the regulatory drive to create a shipping industry that emits less CO2, NOx, SOx or particulate matter, rising production could shape fuel selection and technology. Many organisations, including the classification societies, have been predicting escalation in fuel prices in coming years, based on a so-called peak oil shortage of crude putting pressure on what products are refined and shaping the potential switch to distillates — the refined product from crude oil that can be made with sulphur content below regulatory limits.” LLOYD’S LIST, 11 July 2012, p 6 Does shipping’s energy efficiency drive have the fuel to continue? - By Craig Eason "The road to creating a vessel that uses very little or no fossil fuel and emits no emissions is a long one, but some owners have a dedicated game plan for getting there despite the huge uncertainty over fuel prices, technology suitability and available alternative fuels. Over recent years a number of new ideas have been reported in Lloyd’s List, with developers being able to find owners willing to let them use their vessels as test beds, often for a share of the rewards. Since fuel prices began to rise alarmingly there has been an increase in owners willing to take part in the debate, and to recognise the value of some systems, but there is still a lack of clarity between market spin and truth. Many ship managers have said that if there is a no huge leap in fuel prices then the urgency will be lifted from them to develop new answers, and even interest in slow steaming would diminish." LLOYD’S LIST, 24 July 2012, p 6 NYK launches largest vessel to use air lubrication system - By Craig Eason "The number of vessels using an air lubrication system to reduce friction between hull and water is increasing. Two distinct air system designs developed for the shipping industry will be or have been installed on vessels. The NYK system, developed by its in-house Monohakobi Technology Institute in conjunction with Japan’s Oshima Shipbuilding, pumps scavenged air under the hull. The bubbles spread sternwards under the hull, creating a layer between hull and water that reduces drag. Meanwhile, another developer, Netherlands DK Group, has redesigned its original air cavity system partly to distribute the air under the hull of a vessel and partly to create a semi-permanent cushion of air in precisely-designed cavities in the hull. NYK has been developing its CO2-reduction systems with financial support from the Japanese government, which has been promoting environmentally sound designs as part of its push to create a home-grown green marine technology industry." LLOYD’S LIST, 31 July 2012, p 7

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MARITIME SAFETY Blasts prompt COA to weigh reefer depot accreditation - By Eric van den Berg "The Container Owners' Association is considering a system of accreditation for reefer service depots, after the use of contaminated coolant in reefer boxes led to the deaths of three maintenance workers last year. In its latest newsletter published yesterday, the COA provided its members with an update of its ongoing inquiry into the exploding reefers scandal that rocked refrigerated box shipping last year. Three men were killed in explosions last year at ports in Vietnam and Brazil after counterfeit 134a refrigerant was added to reefer boxes' cooling systems at Ho Chi Minh port in Vietnam." LLOYD’S LIST, 3 July 2012, p 5 Got it taped? - By Liz McMahon "The latest episode in the Costa Concordia saga has raised the importance of voyage data recorders. Clearly the data recorded in these black boxes can be crucial when it comes to investigating an accident. But what about before an accident happens? The International Convention on Safety of Life as Sea states that VDRs must be consistently operational. Port State Control can detain passengerships if they find that the VDR is faulty. Therefore when what Costa Cruises terms an "error code" was found on the VDR, should this have been repaired before the vessel was allowed to continue on its course? Safety experts would argue yes." LLOYD’S LIST, 4 July 2012, p 2 Costa denies black box glitch could hinder vessel probe - By Liz McMahon "Costa Cruises has disputed Italian reports that the voyage data recorder, or black box, on board the Costa Concordia was out of service when the vessel ran aground off the coast of the island of Giglio. According to local reports, the black box broke down four days before the casualty and has therefore not been able to provide key information to investigators trying to reconstruct the events that occurred in the lead up to the disaster. The International Maritime Organization passed legislation that requires all passenger ships to carry

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VDRs to assist in accident investigations, under regulations adopted in 2000 and which entered into force on July 1, 2002." LLOYD’S LIST, 4 July 2012, p 3 Cruise safety body to publish independent emergency guidance - By Liz McMahon “The Skagerrak Foundation has raised concerns over repeating problems with the closing of watertight doors on cruiseships and is working on safety recommendations that it plans to distribute soon to national and international authorities. The cruise safety foundation's concerns have arisen in response to the ongoing investigation into the reasons why Costa Concordia ran aground off the island of Giglio on January 13. A full technical report is expected to be delivered in the Italian courts on July 21, but there has been an ongoing debate over possible safety failings that may have resulted in the casualty, which cost at least 30 lives.” LLOYD’S LIST, 5 July 2012, p 3 ‘Disunited bridge team’ central to boxship grounding - By Adam Corbett "The human element in the grounding of the ‘Godafoss’ is adding fuel to the argument over lax safety practices. Lax safety practice on the containership Godafoss caused it to ground and spill an estimated 50 tons of fuel oil in the Hvales archipelago off Fredrikstad, Norway, a safety investigation has found. The probe by the Accident Investigation Board Norway (AIBN) has exposed a chronic failure of communication between the pilot and bridge team and navigational blunders caused by over familiarity with the route and bridge operations." TRADEWINDS, 6 July 2012, p 38 Getting heavy "European shippers opposed to the mandatory weighing of export containers are looking increasingly isolated. Some of the most powerful industry associations in shipping, representing shipowners, port operators, transport unions and now ship agents and brokers, favour international regulations since it is clear that voluntary measures will not stamp out misdeclarations. The International Maritime Organization will consider draft proposals in September with the aim of making the weighing of all containers prior to loading a legal requirements mandatory." LLOYD’S LIST, 13 July 2012, p 2 Ship agents support container weighing - By Janet Porter "The campaign to make the weighing of all containers prior to shipment mandatory has won further support from a leading industry body. Fonasba, the international ship brokers and agents federation, has given its backing to worldwide efforts aimed at ensuring that export containers are weighedaccurately. The initiative is now gaining momentum, with only some shippers appearing to oppose the plan so far. In contrast, a number of international organisations including the World Shipping Council, International Chamber of Shipping, BIMCO, the International Association of Ports and Harbours, and the International Transport Workers Federation, as well as the maritime administrations of Denmark, the Netherlands and the US, are all pushing for regulatory action through the International Maritime Organization." LLOYD’S LIST, 13 July 2012, p 2 Health issues ‘led to death’ on bulker - By Adam Corbett "Hong Kong accident investigators have revealed another case of a seafarer involved in a fatal accident when he was unable to board the 43,342dwt bulker Apollo (built 1985) while at anchor in the Chinese port because of health issues. The climb from the pilot launch boat to the vessel was estimated at about nine metres involving the use of a rope ladder. The chief engineer had a long history of illness including diabetes, hypertension and kidney problems. He was also said to have been tired after a 14-hour trip from Sri Lanka to Hong Kong and had taken medicine for his diabetes — all factors that the Hong Kong investigators believe may have contributed to his fall." TRADEWINDS, 13 July 20`12, p 38 What’s in a box? - By Janet Porter "When MSC Napoli was deliberately beached in January 2007 after it started to break up in the English Channel, accident investigators had a unique opportunity to conduct a container audit. The results were quite shocking. Of the 680 boxes stowed on deck that remained dry, the weights of 20% varied from the declared figures by more than three tonnes. The largest single difference was 20 tonnes, and the combined weight of the 137 misdeclared containers was 312 tonnes more than it should have been. That set off a train of events that could lead to all export containers being weighed prior to loading, with the IMO to consider mandatory requirements at its September meeting. But that is just the start, with the actual contents of a container often incorrectly labelled. Whether such a misdeclaration was responsible for the MSC Flaminia accident that left one crew member dead and several others injured may not be known for months." LLOYD’S LIST, 20 July 2012, p 2 Safe shipping doesn’t happen by accident – standardization plays a key role – By Morand Fachot “Maritime transportation is the most effective means of moving large quantities of cargo over long distances. Merchant ships are the lifeblood of the global economy, transporting around 90% of international trade (in terms of volume) – from raw materials and foodstuffs to finished goods, as well as some two billion passengers a year on ferries and cruise liners.” BIMCO BULLETIN, Vol.107, No.3, pp 7075 London 2012 is a far cry from Beijing 2008 - By Liz McCarthy "People within the shipping industry keep saying during this downturn that “it’s not a sprint, it’s a marathon”. But at the same time, with no

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barrier to entry, anyone can come and have a jog alongside the athletic elite. Although we have the International Maritime Organization, perhaps this industry needs the equivalent of the International Olympics Committee to ensure only those companies performing at their very best can trade. There are still substandard ships sailing the seas which are run by companies that manage to get away with it. Already in the tanker sector, we have heard reports of owners skimping on maintenance due to poor cashflow. So, just like sprinters have to be an A standard to automatically qualify for the Olympics, perhaps we should strive for the same in shipping." LLOYD’S LIST, 26 July 2012, p 12 'MSC Flaminia' fire will raise new questions “In the case of Mediterranean Shipping Co (MSC), it has not just been struck once, not twice, not even three times, but four times in the past five years with some of the liner industry’s most serious casualties. The latest, as TradeWinds has reported both here and online over the past two weeks, is a serious fire within the cargo containers on board the MSC Flaminia (built 2001) that has already claimed the lives of two seafarers. This week, salvors reported the fire was under control but smoulders on as the 6,732-teu vessel drifts in the North Atlantic, as they were prepared to board. The casualty will surely raise questions as to why MSC appears so accident prone.” TRADEWINDS, 27 July 2012, p 2 MSC caught in another big casualty – By Adam Corbett “Questions are being raised over the Genevabased liner giant’s safety management as its name is attached to another in a string of serious casualties. As the blaze on the containership MSC Flaminia burns on, its charterer, Geneva-based Mediterranean Shipping Co (MSC), has again found its name associated with one of the liner industry’s most serious casualties. So far MSC has managed to skirt the blame or even attract much attention for its involvement in a series of high-profile losses over the past five years that have racked up hundreds of millions of dollars in wreck-removal, hull, cargo and pollution claims. Some put the frequency of the incidents to to the increased exposure from its position as the world’s second-largest liner company with a fleet of more than 450 ships, around half of which it charters in.” TRADEWINDS, 27 July 2012, p 38 Norsafe adapts rescue-boat design after warning by UK investigators – By Adam Corbett “Greek rescue-boat manufacturer Norsafe Watercraft Hellas (NWH) says it is addressing a serious safety problem with rescue boats that has been raised with the company by the UK authorities. The Maritime Accident Investigation Branch (Maib) released an industry warning about overweight rescue boats following its probe into a fatal accident on the 61,321-gt car carrier Tombarra (built 2003) during a safety drill in Bristol in February last year. The cause of the accident was due to a wire failure but the Maib also found the rescue boat itself was seriously overweight due to the accumulation of water ingress, much of it soaked into buoyancy foam in the rescue boat’s hull.” TRADEWINDS, 27 July 2012, pp 38-29 Blaze could take weeks to quench – By Adam Corbett and Jim Mulrenan “The fire on the crippled containership MSC Flaminia, stranded in the middle of the North Atlantic, could take weeks to put out, raising fears the hull may be declared a loss. Firefighting tugs, the 16,320-hp Fairmount Expedition (built 2007), 16,500-hp Anglian Sovereign (built 2003) and 10,880-hp Carlo Magno (built 2006), are battling to stop the blaze reaching the accommodation unit. However, expert sources say experience has shown that locating and extinguishing the seat of the fire could take much longer.”” TRADEWINDS, 27 July 2012, p 39 DARROUX, M.L. - The Voluntary IMO Member State Audit Scheme : An effective tool to eliminate the substandard ship? The developing country's perspective. The experience of the Republic of Liberia : Dissertation submitted towards the MA in Maritime Policy. London : University of Greenwich, Greenwich Maritime Institute, 2009 HAVERN, C.B. - The short life and tragic end of RMS Titanic. In: Marine Safety and Security Council Summer, 2012, pp 6-12

The Coast Guard Proceedings of the

HEINZ, K.J. - If the Titanic sank today. The evolution of lifesaving equipment. In: Proceedings of the Marine Safety and Security Council Summer, 2012, pp 42-44 MCINTYRE, S. - Classification's imprint on international regulation. In: of the Marine Safety and Security Council Summer, 2012, pp 78-82

The Coast Guard

The Coast Guard Proceedings

MILLER, J.H. - 100 years of fire safety progress : The evolution of Solas fire protection requirements. In: The Coast Guard Proceedings of the Marine Safety and Security Council Summer, 2012, pp 45-48 PHILLIPS, C. - The International Conference on Safety of Life at Sea, 1914 : The history and the on-going mission. In: The Coast Guard Proceedings of the Marine Safety and Security Council Summer, 2012, pp 27-28

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SMITH JR., R.L. - A century of technological advancements on the outer continental shelf. In: Coast Guard Proceedings of the Marine Safety and Security Council Summer, 2012, pp 59-62

The

THOMAS, B. - Forensic analysis of the RMS Titanic : Unravelling the mysteries of the world's most famous sinking. In: The Coast Guard Proceedings of the Marine Safety and Security Council Summer, 2012, pp 38-41 UNITED STATES COAST GUARD (USCG) - 1912 - 2012 - 100 years of marine safety. In: Guard Proceedings of the Marine Safety and Security Council Summer, 2012

The Coast

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MARITIME SECURITY AND PIRACY What sanctions? - By Max Lin "After granting exemptions to China and Singapore, the US government has handed out sanctions waivers to all the major Iranian crude buyers. The move is likely to reduce uncertainty in the tanker markets, at least until the waivers expire in December. For now, the focus is on whether the European Union can find any progress in the nuclear talks with Iran and adjust its embargo along the way. The US has cut Iran's oil exports without really exercising the National Defence Authorisation Act, the sanctions law that targets financial transactions with Iran's Central Bank. According to many accounts, so far this year the Islamic Republic's overseas crude sales have fallen by at least a third from last year's levels." LLOYD’S LIST, 2 July 2012, p 2 US puts the squeeze on Tanzania in Iran reflagging row - By Liz McMahon "Dar es Salaam faces sanctions threat as Washington blocks Tehran oil sales. As international sanctions against Iran step up a gear following the European Union ban on insurance, the US has turned its attention to shipping registries as it strives to block trade in Iranian oil. Last week, Lloyd's List reported that NITC had reflagged more than 18 vessels to the Tanzania and Tuvalu registers to avoid sanctions. In his letter to president Jakaya Mrisho Kikwete, Congressman Howard Berman of the House Foreign Affairs Committee said: "I respectfully request that Tanzania cancel the reflagging of the NITC vessels. Given the close and cooperative relationship that our two governments now enjoy, it would be unfortunate if this action were permitted to stand."." LLOYD’S LIST, 3 July 2012, p 3 US House passes legislation for ports security review - By Rajesh Joshi "Yet another port security law is being readied to join the patchwork of US regimes already in place, after the House of Representatives passed the Gauging American Port Security Act sponsored by Democratic California Congresswoman Janice Hahn. The legislation requires the US Homeland Security Secretary, within one year after the Bill becomes law, to "conduct a study of, and submit to the Congress a report on, remaining gaps in port security in the US" and submit a "prioritisation plan" to address these gaps. Ms Hahn said: "Ports are a huge piece of our economy and an attack or disruption would have a disastrous impact on American jobs and the economy." LLOYD’S LIST, 3 July 2012, p 3 'Rather naive' to think PPPs are the answer to piracy - By Liz McMahon "Public-private partnerships cannot and should not aim to tackle all the socio-economic challenges involved in countering piracy and must be supported by short-term solutions, according to DP World's head of global corporate responsibility, Kathryn Wightman-Beaven. In a paper written for the second United Arab Emirates Counter-Piracy Conference held last week, Ms Wightman-Beaven said it would be "rather naive" to consider the answer to piracy and its root causes lie in partnerships between the public and private sectors. However, she added: "They can contribute by supporting the emerging federal government structure and harmonising with its policy aims, objectives and vision; a parachute approach that gains little traction but significant publicity will not suffice in Somalia. "Long-term solutions take a long time to develop and implement, and for this reason state building as well as economic development, which are both supported by PPPs, must also be complemented by more short-term counter-piracy solutions."" LLOYD’S LIST, 4 July 2012, p 5 Arsenault donates $1m to Investing in Somalia - By Liz McMahon "Piracy cost $7bn worldwide last year and shipping bore the brunt of the costs. One Earth Future Foundation has launched its Investing in Somalia programme with an initial commitment of $1m over the next two years. The programme will analyse economic development and investment prospects in Somalia and will support the work of Oceans Beyond Piracy. Philanthropist and chairman of OEF Marcel Arsenault who is responsible for the $1m donation, said: "The grants would support job creation and alternative livelihood initiatives in Somalia. Piracy has exacted a huge cost on Somali society and sadly the desperate situation in Somalia continues to breed piracy," he said." LLOYD’S LIST, 4 July 2012, p 5

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K&R insurance cushions impact of piracy, says Hiscox - By Liz McMahon “The insurance industry has helped to limit the impact of Somali piracy and contributed to an ultimate solution by offering discounts for best management practices and for armed guards, according to Hiscox Kidnap and Ransom managing director Derek Rogers, writes Liz McMahon. Mr Rogers said the traditional role of risk transfer had helped to reduce the impact of piracy.” LLOYD’S LIST, 5 July 2012, p 3 Security industry offers to train naval forces - By Liz McMahon "Private maritime security companies can ease the pressure on overstretched international navies by facilitating training programmes for countries such as Somalia, according to Mast operational director David Summerfield. Mr Summerfield was speaking yesterday at a Royal United Services Institute conference on maritime security with a theme of industry's role in supporting tomorrow's maritime security capacity. "As PMSCs, we wanted to communicate how we could support navies and also offer reassurance that a recognised PMSC standard was imminent. There has been a lot of concern over disreputable companies." A main message Mr Summerfield promoted was the potential role PMSCs could play to help international navies that are battling with stretched resources." LLOYD’S LIST, 6 July 2012, p 3 Clearer channels needed for piracy reporting in Africa - By Liz McMahon "An inaccurate report claiming a pirate hijacking and rumours of a vessel being taken with an armed team on board in West Africa has highlighted concerns over accurate reporting. A report of a pirate attack off the coast of Brass, Nigeria, resulting in the kidnap of a tanker's chief engineer on July 3 is the latest example of mistaken reporting, according to Bergen Risk Solutions. The report, originating from a source close to the Nigerian Navy, stated the tanker was attacked at 13.00 hrs on July 3, south of Brass. "Vessel was reportedly boarded and the Indian chief engineer kidnapped. Vessel is reportedly moored in mouth of Brass River with a Joint Task Force or navies on board carrying out preliminary investigations." However, when contacted, the vessel manager involved in the supposed attack told the risk mitigation firm the tanker has been at Tema, Ghana, since July 1. This was confirmed by the AIS position and 24-hour track, which was first checked at mid-day on July 4." LLOYD’S LIST, 10 July 2012, p 2 Insurers bite bullet on armed guards - By Jon Guy "Insurers increasingly back use of armed security on vessels traversing areas of high piracy risk. As piracy costs to global trade hit $12Bn, calls grow for greater regulation of armed security teams aboard vessels. However, there are clear divisions between the maritime industry, their insurers and national governments. The latest figures show that, far from decreasing, piracy attacks still blight the industry, with west African waters seeing a significant leap in attacks while, in the Indian Ocean, Somali-based piracy teams continue to attack and seize merchant vessels." FAIRPLAY, 12 July 2012, pp 18-19 Forewarned may be forearmed - By Yannick Guerry "Training in counter-piracy techniques will not turn seafarers into armed guards but might help. Maritime colleges are focusing more time and attention on security issues based on the fact that no ship with armed security guards on board has yet been hijacked, and because maritime authorities are moving to endorse the use of such guards. Although trained seafarers do not offer the deterrent of an armed guard, they are undoubtedly in a better position to save their vessels from piracy than those who are untrained." FAIRPLAY, 12 July 2012, pp 20-21 Pirate attacks increase in West Africa - By Liz McMahon “The spike in attacks in Nigerian waters last month highlights the fact that the problem of piracy and maritime crime is far from gone and is perhaps not declining, according to Bergen Risk Solutions, writes Liz McMahon . June saw six attacks against international shipping interests in the Nigerian maritime environment. Two attacks were recorded in May but no attacks were recorded in April. Bergen Risk Solutions chief executive Arild Nodland said the drop in attacks seen in April and May this year had a precedent.” LLOYD’S LIST, 11 July 2012, p. 2 Master the unexpected - By Nicola Good "Ex-soldier, war reporter and hostage launches groundbreaking maritime security degree. Head of the Greenwich Maritime Institute, Prof Bellamy has been instrumental in launching what is claimed to be the first postgraduate degree in maritime security. The course, which was validated by the University of Greenwich in January, starts in September and, says Prof Bellamy, its introduction is timely. "In the next 20 years, the volume of trade carried at sea is set to rise by 50% from the 35,000bn tonne miles it is now. At the same time the world's navies are set to shrink 30% in terms of ship numbers. This will leave a gap and private maritime security is going to play a role in squaring that circle," he says." LLOYD’S LIST, 12 July 2012, p 12 Ship details under wraps after incident off Yemen - By Lucy Hine "An LNG carrier came under attack off Yemen in early June but details are being kept under wraps. Several industry players have referred to the incident but all have proved reluctant to name the vessel involved or explain what happened. One indicates it was “rebels taking a pot-shot” at the ship. Security is a particularly sensitive issue in Yemen,

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which has seen the feedgas pipeline to its Balhaf liquefaction plant hit by militants disrupting supply, leading to cargoes being cancelled." TRADEWINDS, 13 July 20`12, p 18 Piracy attacks decrease in Somalia but rise in Nigeria - By Liz McMahon " Piracy in Somalia has fallen sharply for the first half of 2012, while the Gulf of Guinea has experienced a worrying increase in attacks, the International Chamber of Commerce’s International Maritime Bureau’s global piracy report has revealed. Globally, 177 incidents were reported to the IMB Piracy Reporting Centre in the first six months of 2012, compared with 266 incidents for the same period in 2011. The IMB said 20 vessels were hijacked worldwide, with a total number of 334 crew members taken hostage. There were a further 80 vessels boarded, 25 vessels fired upon and 52 reported attempted attacks. At least four crew members were killed. LLOYD’S LIST, 17 July 2012, p 2 Beazley offers first combined war risk and piracy product in Lloyd’s - By Liz McMahon “For the first time in the Lloyd’s market, shipowners can now purchase war risks and piracy cover under one policy at a discount to the two covers purchased separately. Underwritten by Beazley, the combined war risks and piracy cover is available from syndicates 623 and 2623 with limits of up to $75m.” LLOYD’S LIST, 1 July 2012, p 7 New EU mission to aid Atalanta piracy fight - By Liz McMahon "The European Union has launched a new civilian mission, EUCAP Nestor, to support regional maritime capacity building in the Horn of Africa and West Indian ocean states, with a budget of €22.8m ($27.9m). EUCAP Nestor is part of the Common Security and Defence Policy. The EU said it would complete two other CSDP missions in the region, EU Navfor Atalanta and EUTM Somalia, but it gave no further details about how the three missions would collaborate in practice. However, the EU said the EU operations centre had been activated in order to facilitate co-ordination between the three missions. The centre will also support the civilian operation commander with military expertise during the planning and conduct of EUCAP Nestor. Operation Atalanta had its mandate extended to 2014 in May, when the decision was also taken to extend its area of operation to include Somalia’s coastal territories." LLOYDS’ LIST, 19 July 2012, p 2 Berlin approves draft law for armed guards - By Katrin Berkenkopf "The German government has finally approved the draft law that will ultimately govern the employment of private maritime security companies on board Germany-flagged vessels. However, the new rules are not expected to be in place for at least another 12 months. The federal export control authority BAFA will be responsible for the certification process, in co-operation with the federal border police. Authorisation will be carried out according to the guidelines of the International Maritime Organization." LLOYDS’ LIST, 19 July 2012, p 2 Call for UN guards grows as Asian shipowners unveil plan - By Tom Leander "The Asian Shipowners’ Forum has offered a detailed proposal calling for the United Nations-sanctioned armed personnel to guard ships transiting high-risk areas in the Gulf of Aden and Indian Ocean. The proposal was made to Working Group 1 of the Contact Group for Piracy off the Coast of Somalia in London on July 12. Versions of the plan have been in the works since last year. The proposal features two options, one for UN involvement and another that could be an alternative if the first proposal is supported only by “a few like-minded governments”, but is not approved. This scheme would deploy floating bases to avoid the sensitive issue of establishing armed forces within national boundaries." LLOYD’S LIST, 20 July 2012, p 5 UAE and Saudi Arabia map out pipeline plans to be ready for Hormuz troubles – By Jonathan Boonzaier “Iran’s threats to close the Strait of Hormuz in retaliation for the sanctions that are crippling its economy have largely been dismissed as sabre-rattling. But oil-exporting nations that stand to be affected by such a move have been mapping out a plan. Saudi Arabia and the United Arab Emirates (UAE) have quietly opened new pipelines that bypass the Strait of Hormuz. These pipelines serve as a counterweight to Iran’s threats and ensure that if it did act on them, at least some of the oil will continue flowing.” TRADEWINDS, 20 July 2012, p 15 Somali piracy threat is receding, says head of NATO counter-piracy - By Tom Leander "Nato’s counter-piracy commander said the threat from Somali pirates is receding, but also warned that the international community must maintain vigilance to wipe out the problem. “We are getting more successful in reducing the Somali piracy threats without constant patrolling, but the international community must continue to exchange ideas and increase efforts to completely eradicate the problem,” said Cdre Ben Bekkering at a news conference on a Dutch warship off Muscat, Oman. He also said Oman’s navy was co-operating in the searches for pirates, but the effort was still like searching for “a needle in a haystack”. Pirate gangs stay out at sea for long periods using captured merchant vessels as mother ships and have been using Yemen’s remote island of Socotra as a refuelling hub, according to Reuters." LLOYD’S LIST, 24 July 2012, p 2

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Illicit arms traders step up their use of containers - By Roger Hailey "Arms traffickers are turning to global maritime containers as the means to transport deadly cargo. The virtues of containerised supply chains, speed and efficiency — plus the added bonus of anonymity granted by millions of boxes — are the same ones that make them attractive to illicit traders. In a major report earlier this year, the Stockholm International Peace Research Institute found that arms proliferation networks are “increasingly adopting techniques pioneered by drug trafficking organisations that integrate their logistics operations within the global supply chain through the use of sealed shipping containers”. The boxes are carried on board vessels owned by mainstream shipping companies engaged in innocent, legal trade, so providing an extra layer of respectability for traffickers to camouflage their activities." LLOYD’S LIST, 24 July 2012, p 6 Shooting reignites debate over the rules of engagement - By Liz McMahon “A controversy involving the mistaken shooting of fishermen that has been likened to the Enrica Lexie case has led industry experts to call for the involvement of all affected parties in regulatory discussions on rules for the use of force.” LLOYD’S LIST, 25 July 2012, p 2 Was UN criticism of armed guards justified? - By Liz McMahon “Last week, a leaked report from the UN Monitoring Group on piracy in Somalia was a damning indictment of the private maritime security industry. It claimed that unless the situation changed dramatically and urgently, the industry was more likely to exacerbate the problem of piracy, rather than contribute to any kind of solution. Not surprisingly, the report has raised the hackles of many private maritime security firms and industry body the Security Association for the Maritime Industry spoke out immediately in defence of its members. It argued that PMSCs were making every effort to facilitate a regulatory structure.” LLOYD’S LIST, 25 July 2012, p 6 India keeps Iranian oil flowing “State-owned insurer says it will provide cover to keep refiners supplied with Iranian crude, despite sanctions. S Hajara, chairman and MD of state-owned Shipping Corporation of India (SCI), told Fairplay the cover would enable Iranian shipments by domestic companies to resume. “We will soon start lifting Iranian crude, having obtained confirmation of cover.”” FAIRPLAY, 26 July 2012, pp 16-17 Asian owners call for UN protection – By Adam Corbett and Jim Mulrenan “United Nations (UN) governments are ready to consider a proposal from Asian shipowners that vessels operating in the Gulf of Aden and Indian Ocean should be given protection by UN troops. The proposal was put to the Contact Group on Piracy off the Coast of Somalia (CGCPS) by the Asian Shipowners’ Forum (ASF) at a meeting in London. The ASF says James Hughes, who heads the CGCPS, told its representatives at the meeting that he would put the proposal to government members for consideration. The proposal involves UN troops being deployed on converted merchant ships acting as floating bases. The troops would then board ships before they transit piracy danger zones. An ASF spokesperson said: “The ASF hopes that the counter-piracy proposal will be considered seriously and brought to fruition by the entire UN body as soon as possible.”” TRADEWINDS, 27 July 2012, p 38 Only 50 UK maritime security companies have licences - By Liz McMahon "A freedom of Information request to the UK government revealing that only 50 private maritime security companies hold any form of licence from the Department of Business, Innovation and Skills again raises the question of how many PMSCs are operating outside the law. In the aftermath of London’s conference on piracy in Somalia in February, a new Open General Trade Control Licence was created and PMSCs have been able to apply for this since then. Prior to that, they needed to hold an Open Individual Trade Control Licence. On July 2, only 50 companies held either licence, despite the Security Association for the Maritime Industry claiming to have 167 members, 80 of which are based in the UK." LLOYD’S LIST, 27 July 2012, p 1 Maritime security firms hope ISO meeting will accelerate armed guard regulation - By Liz McMahon "The maritime security industry is “crying out for standards” and hopes a two-day meeting with the International Standards Organisation and relevant stakeholders will lead to establishing international regulation for armed guards by November. The ISO meeting was held at Interpol’s headquarters on Thursday and Friday. Experts were asked to give an account of their experiences in maritime security and piracy and also gave their view on what the ISO standard should achieve, based on their experience. The Security in Complex Environments Group has been working with the UK government in developing regulation for armed guards since June last year." LLOYD’S LIST, 30 July 2012, p 2 Industry Viewpoint: Security on the cheap - By Michael Grey "If security matters — and we are given to understand from the security services professionals who warn us endlessly about the disruptive efforts of violent jihadists, that it does — then it is surely not something that can be undertaken on the cheap, with casual labourers hired like deckchair attendants when the sun comes out at the seaside? Most of us believe that one of the prime responsibilities of navies is to provide protection for commercial shipping, but here again there has been an attempt to do it on the cheap. The shipping industry would have much rather not had to employ private security guards, but saw little alternative as governments (except in a few

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cases) were not going to provide them with government professionals." LLOYD’S LIST, 30 July 2012, p 12 ANDERSEN, A. / BROCKMAN-HAWE, B. / GOFF, P. - Suppressing maritime piracy: Exploring the options in international law, 2009 BEKKEVOLD, J.I. / ROSS, R.S. (Eds.) - International order at sea : Anti-piracy and humanitarian operations. Oslo : Norwegian Institute for Defence Studies, 2012 (ISBN 978-82-91571-15-7) http://idsa.in/system/files/book_OrderSea.pdf GUILFOYLE, D. - Piracy off Somalia : UN Security Council resolution 1816 and IMO Regional counterpiracy efforts. In: International and Comparative Law Quarterly Vol. 57/Part 3, Jul 2008, pp 690-700 PUCHALA, D.J. - Of pirates and terrorists : What experience and history teach. In: Security Policy Vol. 26/No. 1, Apr 2005, pp 1-24

Contemporary

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NAVIGATION AND COMMUNICATIONS Asian shipowners lobby against Panama Canal toll increase - By Jing Yang "The Asian Shipowners' Forum has aimed another salvo at Panama Canal Authority's proposal to increase toll fees, saying the authority's short notice adds to the burdens facing the troubled shipping industry. ACP announced in April that it would adjust tolls "to bring them closer to the value of the route for certain market segments". The decision provoked a backlash from the shipping community. Last month, ACP said it would offer a threemonth reprieve until October and would allow the new pricing to take effect after a 30-day consultation period. Now, ASF has written directly to ACP chief executive Alberto Alemán Zubieta, saying it is "deeply concerned with your very short notice of the proposed increase in the canal tolls [for] 2012 and 2013, in the absence of any dialogue with the shipping industry"." LLOYD’S LIST, 6 July 2012, p 2 Gas carriers, the canal tolls for thee - By Hal Brown "Liquefied natural gas carriers hope that tolls to transit the canal are not too high. When the Panama Canal's expansion is completed by 2015, the impact on the liquefied natural gas fleet and its role in the energy shipping industry will be dramatic. At present, only 7% of the LNG fleet can transit the canal due to size restrictions in the locks, according to Silvia de Marucci, leader of the Panama Canal Authority's liquid bulk segment. But in 2015 as much as 81% of the fleet will be able to use the canal, she told last week's Informa LNG Global Congress. Owners expect vessels to slash fuel costs by cutting days off voyages from the US Gulf and the Caribbean to gas consumers such as Japan and Chile." LLOYD’S LIST, 6 July 2012, p 7 Companies to wait for Panama Canal toll rates "Companies eyeing up the expanded Panama Canal as a possible route for their LNG shipments will have to wait until next year before the toll structure is announced. Speaking to TradeWinds at Informa’s LNG Global/Congress (LNGgc) meeting in London, the Panama Canal Authority’s (PCA) Silvia de Marucci, who is the leader of the outfit’s Liquid Bulk Segment, said the PCA hopes to firm up the tolling arrangements in 2013. De Marucci revealed that many shipowners had contacted the authority with differing requirements on tolling. She insisted the PCA would not be setting anything in place that might deter owners from using the waterway when its expansion — it is now 40% complete, she claimed — is finished at the end of 2014." TRADEWINDS, 6 July 2012, p 15 ‘E navigation’ strategy gets pilots’ protest - By Adam Corbett "Architects of a plan to develop a futuristic so-called “e navigation” strategy for shipping have been told to “keep it real” by the pilot’s association at a key International Maritime Organisation (IMO) meeting this week. A presentation from Norway, which is heading an e navigation working group, laid out its plans for developing a road map toward an integrated ship and shore-based policy on electronic navigation. It said the objective is to develop the harmonisation of e navigation systems, to create the seamless transfer of information from ship to shore and improve vessel-traffic services and search and rescue through the exchange of information. But a note submitted by the International Maritime Pilots’ Association (IMPA) warned the IMO against getting carried away by technology. It said there was a danger of a misperception that “mariners are no longer the most critical factor in safe navigation”." TRADEWINDS, 6 July 2012, p 38 Canada unveils box port plan to challenge Panama Canal - By Janet Porter "Plans to build a brand new $400m transhipment port on the eastern tip of Canada that could handle the largest containerships arriving from Asia via the Suez Canal are moving forward with a marketing drive to attract investors. The facility would be located in Sydney harbour, Nova Scotia, if the scheme goes ahead, providing ocean carriers with a first port of call in North America just few miles off the great circle route from Europe. The

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site is on the edge of a newly dredged channel that would enable the port to receive the world's largest containerships without any restrictions. That would pose a potential threat to the Panama Canal and most ports along the US east and to Gulf ports, which are not yet ready for the much larger ships that could soon be arriving from Asia via the Pacific route, once the canal's new locks have been completed." LLOYD’S LIST, 10 July 2012, p 3 ECDIS – mandatory carriage begins – By Harry Gale “Mandatory carriage of ECDIS, the biggest change in navigational practice since the introduction or radar of GPS, starts to phase in on 1 July. This should not be news to members of The Nautical Institute; however, it would appear that some owners, managers and mariners are still unaware of the impact on their fleets and navigation practices that mandatory carriage of ECDIS entails.” SEAWAYS, July 2012, pp 21-23 Wider Panama Canal will benefit ship design and operational costs - By Craig Eason "One of the biggest benefits to ship capacity and fuel efficiency in the near future will be the widening of the Panama Canal, according to experts at Wallenius Marine, one of the Scandinavian shipowners that have been pushing the boundaries of sustainable ship management in recent years. Stockholm-based Wallenius owns a fleet of car carriers, many operated in joint ventures with its Norwegian partner Wilh. Wilhelmsen. Vessel optimisation demands have seen vessels get larger over recent years to meet operational demands and costs. The width of the Panama Canal has, however, been a limiting factor. The opening of the Panama Canal’s widened locks in 2014 will mean that newbuildings can be wider. This allows naval architects to begin looking at ways to minimise ballast water while increasing cargo. The new canal limits are also good in many cases for future vessel compliance with the energy efficiency design index." LLOYD’S LIST, 24 July 2012, p 7 Panama opens door to foreign pilots – By Michele Labrut “Panama’s pilots are up in arms after the surprise revelation that the Panama Maritime Authority (AMP) is to allow non-Panamanians to provide pilotage services for companies of ‘mixed’ ownership. The 8 July 2012 edition of Panama’s Official Gazette included a resolution signed on 1 July 2010 by the AMP board of directors reforming domestic pilotage regulations and exempting pilots working for mixed-ownership companies from such regulations. Previously, pilotage services at Panamanian ports had been restricted to Panamanian nationals.” FAIRPLAY, 26 July 2012, p 22 Ecdis training is becoming a costly headache - By Craig Eason "Shipmanagers face huge costs and disruption as deadline looms. There is growing concern that navigation cadets may not be getting the required training to use electronic chart display and information systems when they become mandatory on all vessels. Ecdis units are gradually becoming compulsory on board bridge technology for all the vessels covered by the Safety of Life at Sea Convention of the International Maritime Organization. The process has barely begun, but over the next six years, nearly all ships will be required to have at least one Ecdis on board." LLOYD’S LIST, 31 July 2012, p 7 LUSK, L. - We are SAR : Search and rescue over the last 100 years. In: of the Marine Safety and Security Council Summer, 2012, pp 49-53

The Coast Guard Proceedings

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POLLUTION/ENVIRONMENT Industry Viewpoint: The future we want - By Michael Grey "The biggest UN conference held to date, with 45,000 green-minded people jetting into the Brazilian city. The IMO had to be there and we must be glad they were, lest those crazed greenies who want all transport to cease and who love eructing meaningless statistics showing that shipping "is the world's greatest unreformed polluter", would have had nobody to challenge their daft and dangerous assertions. And for those who demand "social" action to assist the world's deprived, IMO secretary-general Koji Sekimizu is able to point to 1.5m seafarers, the majority of whom are from developing nations, who have useful employment contributing to Millennium Development Goals in a substantial way. The IMO, which hosted a well-attended side event on sustainable maritime development, was also able to re-emphasise shipping's contribution to the world economy." LLOYD’S LIST, 2 July 2012, p 12 IMO at Rio: offers holistic growth "The International Maritime Organization (IMO) will set up a new internal mechanism at the Office of the Secretary General, Koji Sekimizu, which will be dedicated to fulfilling his Rio+20 vision of sustainable maritime development. The Rio+20 vision is to uphold three pillars of sustainable development: the economy, society and the environment. In line with this are Sekimizu’s seven goals for sustainable maritime development. The ‘seven pillars’ are: global standards,

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energy efficiency, new technology, education and training, maritime security, maritime traffic management and maritime infrastructure. Sekimizu said they will stretch beyond 2015 – the end point of the Millennium Development Goals." FAIRPLAY, 5 July 2012, p 27

US agrees five-year respite for ballast water systems - By Rajesh Joshi "Owners facing the obligation to secure a separate type approval in the US for ballast water systems that have secured such approval from another International Maritime Organization nation have secured a five-year window in which ships with IMO-approved systems will be allowed in the country's waters. The US Coast Guard last week issued a policy letter which states that the manufacturer of a foreign type approved ballast water treatment system can apply for that system to be approved in the US as an "alternative management system". If approved as an AMS, vessels with such systems will be allowed in US waters for five years. However, AMS recognition does not preclude or supplant the manufacturer's obligation to apply for a separate type-approval from the USCG for the system. The policy letter encourages manufacturers to submit both applications simultaneously." LLOYD’S LIST, 3 July 2012, p 5 Extra costs from maritime ETS to play a 'minor role' - By Roger Hailey "Additional costs would play only a "minor role" in any maritime emission trading scheme, suggests German research house ZEW. The ZEW discussion paper* has appeared as the International Maritime Organization grapples with the task of reducing worldwide CO2 emissions by ships, estimated at 870m tonnes in 2007, or 2.7% of total emissions. Among the different approaches under review by the IMO's MEPC committee are marketbased mechanisms such as a levy on bunker fuel or a maritime ETS. The fuel levy on bunker purchases would see money passed on to a special maritime fund secretariat to allocate the reserves. The emissions trading schemes suggested by Norway, the UK and France also rely on a fund secretariat and the allocation of credits through a cap and trade system." LLOYD’S LIST, 13 July 2012, p 2 Ningaloo Reef gets IMO order of protection - By Adam Corbett "An application for the Ningaloo Reef on Australia’s west coast to be declared a protected area has been approved at an International Maritime Organisation (IMO) meeting. The IMO’s subcommittee on Safety of Navigation says that if its conclusions are endorsed by the Maritime Safety Committee, the Ningaloo Reef will be officially recognised from July 2013. The protection order has been placed on the reef in response to growing traffic from the North West Shelf oil and gas fields." TRADEWINDS, 13 July 20`12, p 38 US prepared to be lenient on ECA fuel restrictions - By Adam Corbett "On the eve of the establishment of a North American emission control area (ECA), the US government says it is prepared to take a lenient view on shipowners who failed to secure low-sulphur fuel ahead of the 1 August deadline — as long as they have made their “best effort” to do so. From next month, under Marpol Annex VI, ships will be required to burn fuel with no more than 1% sulphur content for 321 kilometres (200 miles) around the US coast in a move that matches limits now applied in the North Sea and Baltic Sea." TRADEWINDS, 13 July 20`12, p 39 Cracks emerge in green argument – By Bouko de Groot “Environmental efforts of container carriers are “purely driven by fuel savings and regulations”, Lars Jensen, CEO of SeaIntel Maritime Analysis told Fairplay. Last year his company set out to benchmark the environmental performance of major container carriers because no consistent benchmark existed, even though most carriers and freight forwarders claim the environment matters to them. Consequently, Jensen said, there was no unbiased ranking for carriers with environment priorities. “They used individual standards: in other words, no standards at all.”” FAIRPLAY, 19 July 2012, pp 18-19 ICS boss miffed over IMF call for green-fund cash – By Adam Corbett “Newly appointed International Chamber of Shipping (ICS) chairman Masamichi Morooka has made his mark with a hard-hitting letter to the head of the International Monetary Fund (IMF), Christine Lagarde, criticising her remarks on shipping’s potential contribution to a global green fund. Morooka has been riled by Lagarde’s suggestion that shipping and aviation could contribute one-quarter of a mooted $100m fund to help developing countries cut back on greenhouse gasses. The ICS head hit back saying cash-strapped shipowners are not in a position to contribute such an amount. He added that shipowners’ contribution should be in line with their carbon output, which at the moment only contributes about 3% of total carbon emissions.” TRADEWINDS, 20 July 2012, p 39 NYK Line goes even greener - By Tom Leander "Japan giant has expanded its reporting on emissions to its supply chain, with independent verification. Underscoring its drive for better environmental performance, NYK has sought certification from an independent auditor of its disclosure of greenhouse gas emissions to a standard known as Scope 3 of the Greenhouse Gas Protocol. The GHG Protocol, an international guideline for reporting carbon emissions, defines three scopes of emissions. Scope 1 targets

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direct carbon emissions from sources controlled by a company, while scope 2 gauges indirect emissions through energy consumption. Scope 3 extends this further by targeting emission generated through a company’s supply chain." LLOYD’S LIST, 23 July 2012, p 6 More must be done to study low-sulphur fuel availability - By Liz McMahon “The International Maritime Organization must accelerate its study into the global availability of low-sulphur fuel for ships, according to the International Chamber of Shipping. In a submission to the IMO Marine Environment Protection Committee, which meets in October, the ICS said it had pressed the IMO to start work now on a study that can consider the impact all of the major changes required by the new Marpol regime, before it is too late for the oil refining industry to respond and invest.” LLOYD’S LIST, 25 July 2012, p 2

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PORTS AND HARBOURS Stolt Valor finds port of refuge after three months - By Craig Eason "Delay in being brought to a safe haven could raise questions over port state willingness to apply IMO guidelines quickly. The issue of stricken vessels being given quick access to places of refuge has re-arisen after Stolt Valor had to wait three months before being allowed into a port in the Middle East Gulf following a fatal explosion and fire. The vessel, owned by Stolt-Nielsen subsidiary Stolt Tankers, suffered a crippling explosion in mid-March, followed by a week-long fire. Assistance was rendered quickly to the vessel and 24 of the 25 crew were rescued. The missing crew member remains unaccounted for." LLOYD’S LIST, 3 July 2012, p 4 Long Beach offers incentive programme for cleaner calling ships - By Jing Yang “The US Port of Long Beach has laid out an incentive programme to encourage larger, cleaner ships to call at the port, including a cap on daily dockage fees.” LLOYD’S LIST, 5 July 2012, p 4 European port state inspections fall by a quarter - By David Osler "The number of port state control inspections in Europe fell by more than a quarter last year, even though the number of individual ships inspected hit a record high, according to the annual report of the Paris Memorandum of Understanding. The report showed that the overall number of detentions was also down. Some 20 ships were banned from calling anywhere in Europe, a sharp increase on seven bans recorded in 2010, reflecting the introduction of the so-called New Inspection Regime that kicked in at the start of 2011. However, fears that the NIR would unfairly penalise some reputable operators for choosing to use flags with mediocre or poor safety records do not appear to be supported by the statistics. Paris MoU secretary-general Richard Schiferli told Lloyd's List that "We began to inspect ships based on their risk profile. We give good ships credit and we try to inspect them less frequently."" LLOYD’S LIST, 12 July 2012, p 1 Marine pilotage inquiry seeks industry submissions - By Liz McMahon "The UK Transport Select Committee has called on the shipping industry to submit written evidence on issues affecting marine pilotage. The deadline for submissions is September 2012. Lloyd's List understands that the committee inquiry into this area is the result of industry lobbying. UK Maritime Pilots Association chairman Don Cockerill said that while the body had not instigated the inquiry, it would seize the opportunity to raise long-term issues. The MPA will call for the Port Safety Code to become obligatory and effectively regulated. Mr Cockerill said that the code is open to interpretation and, while there are many very good port operations, others are more questionable." LLOYD’S LIST, 13 July 2012, p 2 U-turn on deadline for TWIC renewal “A lack of progress on a final rule on standards for deploying biometric security card readers at US ports has forced the Obama administration to extend the deadlines and ease costs for US mariners and terminal workers seeking to renew their Transportation Worker Identification Credential (TWIC) cards.” SAFETY AT SEA, August 2012, p 10

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SEAFARERS Training returns on investment - By Miriam Fahey "Shipping companies see dramatic impact of investment in high quality staff training. A survey by Fairplay has returned positive responses from shipping companies that have pledged their commitment to investing in staff training at all levels. Investments are variable as there are no standards governing costs, but there are rules governing training standards. For seafarers these include the Maritime Labour Convention expected to be implemented in

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2013, and the industry blueprint Standards of Training, Certification and Watchkeeping (STCW)." FAIRPLAY, 5 July 2012, pp 18-19 Leading actor shines a light on sailors’ welfare "A Bollywood star has called for a film to be made to highlight the plight of seafarers who are victims of piracy. Inaugurating a candlelight march this month in Mumbai, actor Prem Chopra, 76, suggested that a Hindi movie would help focus public attention on the issue. Nearly 700 people participated in the march, which was organised by Indian firm Marex Media. The event also aimed to draw attention to the issue of lack of shore leave for sailors. According to an official at Marex, the seafarers sent a memorandum to state-backed Directorate General of Shipping (DGS) urging it to step up the fight against piracy and relax restrictions on leave." TRADEWINDS, 6 July 2012, p 34 US case opens doors for seafarer claims over ‘excessive’ work conditions - By Adam Corbett "The door has been opened for seafarers to claim compensation following an award by a Florida court for the ill health of a chief officer working for Maersk Line. William Skye argued he was forced to take early retirement at the age of 54, when working long hours for Maersk Line caused him to develop ventricular hypertrophy, more commonly known as an enlarged heart. His lawyers Lipcon, Margulies, Alsina & Winkleman said he had worked more than 16 hours a day for 70-day periods during his duty on the USflag, 3,400-teu Sealand Pride (built 1985)." TRADEWINDS, 6 July 2012, p 38 Ensuring crewing competency "The efficient running of a vessel and the safety of fellow crew members is dependent on the know-how and experience of the personnel on board. In the past, the owner or ship operator has largely had to trust in the abilities of the personnel and hope that their capabilities remain relevant. A common cause of concern is that some officers may have risen to levels of responsibility too quickly or without the backing of adequate training." FAIRPLAY SOLUTIONS, July 2012, p 14 ECDIS training takes off "ECDIS carriage requirements become mandatory this month and chiefly affect new vessels, which are generally crewed with the most competent officers and crew. This is just the initial stage, however, and as the rules are phased in they will affect most existing vessels. Some companies may have wanted to start implementation earlier, but industry concerns include the huge expense of implementing ECDIS across the fleet and whether sufficient budget, time and resources have been allocated to its introduction." FAIRPLAY SOLUTIONS, July 2012, p 16 EU gives Philippines time on certification upgrade – By Andrew Spurrier “The likelihood of the European Union carrying out its threat to de-recognise the Standards of Training, Certification and Watchkeeping (STCW) certification of Filipino seafarers seems increasingly remote. Last August the European Commission (EC) warned the Filipino authorities that it was ready to proceed with derecognition in the absence of measures to improve seafarer training standards. But despite announcing last autumn that it would take some time to study a detailed submission presented by the Filipino authorities in late August, the EU seems unlikely to make any decision for some months yet.” FAIRPLAY, 19 July 2012, p 26 Offshore salaries fuel industry pressure “Shipping’s technical expertise is being poached by the offshore sector through higher wages and better terms. “The offshore sector may be paying higher salaries for certain personnel, which means they may be less attracted to working as surveyors in classification societies, for example,” Spinnaker chairman Phil Parry told Fairplay.” FAIRPLAY, 26 July 2012, p 22 Offshore shipping to favour cheap labour, warns recruiter - By Hal Brown "Cheap Asian seafarers threaten to squeeze out European crew in the offshore shipping industry, mirroring the situation witnessed in tanker and dry bulk shipping over the past decade. The issue is only just starting to creep up on offshore shipping because the sector needs more personnel as it grows rapidly. In that sense, it is becoming a victim of its own success, requiring ever greater numbers of skilled people and seafarers to operate the growing number of platform supply vessels and other offshore vessels hitting the water. Spinnaker shipping recruitment company chairman Phil Parry says that offshore shipping had, in the recent past, been relatively untouched by issues of cheap labour undercutting workers from Europe. “But that’s now being eroded and it’s becoming like other parts of the shipping industry.”" LLOYD’S LIST, 27 July 2012, p 7

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SHIPBUILDING AND RECYCLING OF SHIPS Scrappings unaffected by court ban - By Geoff Garfield "Work at Alang can carry on for now despite an Indian court ruling on the import of hazardous waste. A Supreme Court judgement banning the import of hazardous waste has so far failed to derail India’s massive ship-recycling industry. Brokers tell TradeWinds that deals remain ongoing despite the central government being told to halt the import of ships containing hazardous/toxic wastes identified by the Basel Convention and its various protocols. However, much could hinge on an appeal hearing scheduled for 19 July. If that goes against the breakers, then all ships could be banned from being imported as the government will have to comply with the Basel Convention, which regulates the transboundary movement of waste, as well as tightening up the country’s Hazardous Waste Management Code from 1989 in line with Basel." TRADEWINDS, 13 July 20`12, p 9 Fourth special survey takes toll on oil tanker demolition - By Liz McCarthy “The high cost of a fourth special survey versus medium-term earnings for crude tankers is showing its force in the demolition market, as the average age of trading vessels being beached so far in 2012 has fallen below 20 years, according to data from Lloyd’s List Intelligence. Only one of the trading tankers identified by Lloyd’s List Intelligence was non-double-hulled, with the rest made up of first generation double-hulls, which were introduced in the early 1990s following the Exxon Valdez oil spill and regulation from the International Maritime Organization.” LLOYD’S LIST, 17 July 2012, p 1 Toxic material concerns still cast a shadow "Despite the major steps forward taken by Turkish shipbuilding in recent years, concerns have been raised that some yards are continuing to use components containing asbestos, in contravention of a global ban on the use of the highly toxic substance in shipbuilding for the last eight years. Confirmed cases do not usually make it into the public domain. But in 2010, Lloyd’s List highlighted that case of a chemtanker newbuilding delivered by a Turkish yard to a German owners, which was found to be riddled with asbestos in thousands of gaskets and other seals." LLOYDS’ LIST, 19 July 2012, p 7 Shipbreakers cash in prime location - By David Osler "Turkey's shipbreaking sector is made up of 21 recycling facilities, most of them located in the Aliaga area, near Izmir. It has in recent years experiencing dramatic growth — business broadcaster CNN has even spoken of a ‘boom’ — thanks to its geographical location that makes it particularly attractive to owners seeking to scrap vessels that discharge their last cargoes in Europe. When compared with the cost of a final voyage in ballast to the Indian subcontinent, including Suez Canal fees, the savings are sufficient to enable Turkish yards to pay considerably less than their Asian counterparts." LLOYDS’ LIST, 19 July 2012, p 8 Alang allegations a worry for scrap – By Geoff Garfield “Money-laundering claims and the tug-of-war over an infamous tanker mean India’s shipbreaking industry has a tough job to clean up its image. Ship scrapping is a dirty business but is it as filthy as allegations coming out of India would have us believe? Hidden in the bowels of superannuated tonnage are hidden weapons, explosives and other contraband, we are told.” TRADEWINDS, 20 July 2012, p 2 Breakers brace for court ruling – By Geoff Garfield “India’s shipbreakers are waiting anxiously for a Supreme Court decision that, in a worst-case scenario, could virtually shut down the industry. The court is due to rule on Monday whether the 214,000-dwt Oriental Nicety (ex-Exxon Valdez, built 1986) can be scrapped at Alang. Cash buyer owner Sanjay Mehta’s Best Oasis has been fighting efforts by environmentalists to block the import of the tanker-turned-bulker. Best Oasis argues that the vessel does not have hazardous substances on board and consequently does not contravene the Basel Convention on the transboundary movement of waste, to which India is a signatory.” TRADEWINDS, 27 July 2012, p 9

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SHIPPING Slipping through the data gap "Data equals knowledge, and knowledge means everything from productivity to safety can be done better. But the industry seems to be struggling with data on several fronts. Like statistics, information will always be contentious so long as there is more than one way of collecting, analysing and presenting it, so there are good arguments to internationally standardise data provision in several areas. For example, the more data there is on crime, the more effective law enforcement can be, creating a safer community." FAIRPLAY, 12 July 2012, p 6-7

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Shipping invests in Somalia - By Miriam Fahey "The shipping industry is investing in Somalian economic development in the hope that it will help diminish piracy, according to US think-tank One Earth Foundation (OEF). The foundation’s programme manager, Anna Bowden, said so far BP, Shell, Maersk and the Japanese shipping industry had pledged $2M for community projects in Somalia – $500,000 per project. “Shipowners are particularly interested in developing the coastal regions of Somalia so there are more jobs and an eventual alternative to piracy,” she said." FAIRPLAY, 12 July 2012, p 18 Shipowners reluctant to take European Investment Bank loans - By Craig Eason "The European Investment Bank has been given additional cash to invest in regional projects but its shipping and transportation division is still lacking any applications from shipowners. The aim of the EIB is to support the goals of the European Union, and in terms of shipping this is to create an efficient, sustainable industry and one that helps employment and growth in the region. The EIB insists that any of the loans it issues cannot be used for general financing purposes, nor is it in a position to act as a loan or credit guarantee for newbuilding projects." LLOYD’S LIST, 10 July 2012, p 7 Use of slow steaming kit spreading across industry - By Craig Eason "MAERSK Line is encouraging its charterers to install slow steaming kits on container vessels, saying it has been happy with the systems over the last two years. The Danish company has already installed the kits on 66 vessels that have MAN Diesel or Wärtsilä engines. AP Moller-Maersk has been one of the biggest supporters of slow steaming. It demonstrated that engines could safely be run as low as 10% of their maximum power rating in 2009, challenging engine manufacturers over their claims that it should not be done. Slow steaming, or optimised sailing, allows vessels to run at speeds that are the best for current market conditions as well as improving fuel saving. However, engine makers still point out that running at slow speeds for lengthy periods can result in some damage due to high temperatures." LLOYD’S LIST, 10 July 2012, p 7 Downturn fails to stem rise in average shipping salaries - By David Osler "Average shipping salaries continue to rise despite the current downturn in most sectors of the industry, according to a survey compiled by recruitment agency Faststream. Nevertheless, substantial numbers of seafarers and some shore staff have seen substantial reductions in pay over the last 12 months. The mixed picture emerges from a survey based on responses from 4,000 shipping employees working in all main shipping centres, as well as at sea. In general, seniority was found to be a crucial variant, with those in the higher positions more likely to have enjoyed an inflation-plus settlement." LLOYD’S LIST, 13 July 2012, p 1 Semper paratus, always ready – By Miriam Fahey “A fast and honest response to the media can save a company’s reputation in a crisis. Tony Redding, director of UK-based crisis communications firm TRS Public Relations has been involved in the maritime crisis response sector for 25 years. A crisis can strike at any time, he said, because of the unpredictable nature of shipping. This could be anything from a minor collision to a major accident. The shipowner must always be ready to respond to the public and the media.” FAIRPLAY, 19 July 2012, p 20 Taking a swipe at the US fleet – By John Gallagher “Washington politicians have quietly repealed important provisions for government-backed vessel tonnage, which could have significant reper¬cussions for the US flag. The repeal reduces from 75% to 50% the amount of food aid required to be moved on commercial US bulker or box vessels. With food aid accounting for more than half the so-called government-impelled cargo carried by US flag carriers, the 33% cut is expected to result in the loss of 500,000 tonnes/year of preference cargo. “The effect will be no less than devastating,” Bryant Gardner, who represents industry coalition USA Maritime, told Fairplay.” FAIRPLAY, 19 July 2012, pp 20-21 IACS to reassert itself under its new chairman - By Liz McMahon "Tom Boardley says IACS is a microcosm of the IMO. Under new chairman Tom Boardley, the International Association of Classification Societies has plans to reassert itself and has welcomed any new classification societies to apply for membership if they felt that could satisfy the membership criteria. Mr Boardley has said the way the body worked was not confined to a small membership. Despite this being the case, since IACS has opened up its membership three years ago, it has not been inundated with applications." LLOYD’S LIST, 20 July 2012, p 4 Natural gas vehicle growth revs up LNG shipping demand - By Hal Brown "With around 90% of Japan’s taxis now running on cleaner-burning LPG, it surely won’t be long before other vehicles in Japan seek cleaner fuel alternatives, with liquefied natural gas being one option for larger vehicles such as trucks. LNG is already an alternative fuel for ships, contributing to the rising demand for LNG and therefore vessels required to ship this energy source. Of course, demand for LNG and LNG carriers is still being driven by the power sector rather than the transport sector. And more investment in the industry means more investment and employment for LNG shipping." LLOYD’S LIST, 20 July 2012, p 7

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UK shipping – still a world leader “Since 2000, the owning and operating ships in the UK has seen considerable growth, as a result of the Government’s positive policies in favor of investment, training and the UK register.” TANKER OPERATOR, June/July 2012, pp 8-9 Greek owners ready to respond to flag’s plight - By Nigel Lowry "Restoration of ministry opens the way to detente, but bureaucracy and expense could remain barriers for some owners. Greek shipowners have given the country’s political leaders hope that the industry is ready to put some muscle behind a push to reboot the Greek-flagged fleet, which has been losing vessels for several years. The positive message comes amid what appears to be a more constructive climate, following the new coalition government’s move to restore a standalone shipping ministry, while it assumes added importance in light of the dire state of the country’s public finances." LLOYD’S LIST, 24 July 2012, p 2 Iranian maritime body hits back at UANI campaign - By Liz McMahon "An Iranian non-governmental organisation has written to the International Association of Classification Societies to criticise what it calls “incorrect and misleading information” published by United Against Nuclear Iran. The Association for Marine-Based Development’s letter to IACS has come in response to the UANI campaign, which has lobbied classification societies to stop certification services to Iranian vessels and drilling rigs. Chiefly, the NGO focused on a UANI letter to IACS in May, which stated that any classification society doing business with Iran was facilitating its “efforts to evade sanctions, acquire weapons of mass destruction and support terrorism around the globe”. In its own letter to the international classification body, AMBD said its aim was to promote the safety of navigation, ensure the safety of human life at sea and to observe compliance with marine environment protection standards with no political bond." LLOYD’S LIST, 26 July 2012, p 2 BP leaves the Arctic for others - By Hal Brown "BP had its chance in 2011 to do a deal with Rosneft that would have given BP access to the abundance of oil and gas in the Russian Arctic. But that deal was scrapped following a court case successfully brought by members of TNK-BP, who claimed they should have been approached first. After all the trauma, BP decided to exit Russia completely. Does BP know something about the Arctic others don’t — or don’t want to know? There are certainly enough reports being published warning that drilling in its pristine waters is not worth the risk. Spills from wells will be extremely difficult to clean up, despite claims by some companies about to start work there." LLOYD’S LIST, 27 July 2012, p 7 Shipping faces a long, cold winter - By Clay Maitland . “Shipping, particularly in the dry and liquid bulk trades, is dependent on China and, to a larger extent, Asia. Higher soya prices mean the cost of food prices in China will go higher. The Chinese government will, if this trend continues, probably react by tightening monetary policy. This may well mean that Chinese consumers will reduce their non-food consumption, stifling China’s growth. In any case, unless agricultural prices somehow begin to drop in the next few weeks, unrest is likely to develop in much of the world as food prices soar. This has happened before, with dramatic results for the global economy, including shipping." LLOYD’S L. 31.07, 2012, p 6

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SPECIAL REPORTS African Port & Logistics LLOYD’S LIST, 12 July 2012, pp 1-4 Container and ship safety: SAFETY AT SEA, August 2012, pp 32-38 Emergency response: TANKER OPERATOR, June/July 2012, pp 46-48 Emissions control: TANKER OPERATOR, June/July 2012, pp 30-44 Mega Yachts: THE NAVAL ARCHITECT, Jul/Aug 2012, pp 35 Norway: TANKER OPERATOR, June/July 2012, pp 14-20 Piracy: TANKER OPERATOR, June/July 2012, pp 26-29 Propellers & Thrusters: THE NAVAL ARCHITECT, Jul/Aug 2012, pp 36-40 Russia: THE NAVAL ARCHITECT, Jul/Aug 2012, pp 61-62 Security: SAFETY AT SEA, August 2012, pp 24-30 Shipbuilding technology: THE NAVAL ARCHITECT, Jul/Aug 2012, pp 42-52 Shipping software: FAIRPLAY SOLUTIONS, July 2012, pp 21-26 Spain and Portugal: LLOYD’S LIST, 5 July 2012, pp 1-7 Top UK Ports: LLOYD’S LIST, 26 July 2012, pp 1-4 Turkey LLOYDS’ LIST, 19 July 2012, pp 1-8 UK: TANKER OPERATOR, June/July 2012, pp 8-13

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