Maritime Industry Urges Support for Cargo Preference

From the Seafarers InternationalUnion
22 November 2011

SIU Executive Vice President Augie Tellez and other maritime labor and company officials on Oct. 3 attended an open forum on an important program that greatly affects Seafarers and the industry at large. The multi-component program known as cargo preference stipulates that a certain percentage of U.S.-made or U.S.-funded items must be shipped on American vessels with American crews. The meeting was organized by the Maritime Administration (MarAd), whose stated goal was to open up the issue to public discussion.

Tellez (pictured below) and other speakers pointed out that cargo preference law enforcement is becoming increasingly more important to the maritime industry. With overseas conflicts starting to wind down, non-military cargo is going to become a more vital source of income for shipping companies and subsequently for merchant mariners.

“We in the maritime industry understand the critical need for our cargo preference laws, particularly those that affect food aid, our loan guarantee programs and other nondefense cargoes,” said Tellez. “As Operation Iraqi Freedom and Operation Enduring Freedom wind down after almost a decade, our industry needs to find cargo wherever it can, and we recognize we cannot continue to rely on the Pentagon for everything. Non-defense cargo is more important now than it has ever been.”

Maritime Trades Department, AFL-CIO (MTD) Executive Secretary-Treasurer Daniel Duncan was also on hand at the meeting expressing the department’s support for cargo preference laws.

“The MTD firmly believes that the nation’s series of cargo preference laws is a bedrock of the U.S.-flag maritime industry,” said Duncan. “These laws have played a vital role in ensuring that America has a strong domestic shipbuilding base and merchant marine. Cargo preference laws help create good-paying jobs for American workers, provide tax revenues at the local, state, and federal levels, and make sure America’s merchant marine is ready and available when needed for strategic sealift and other defense interests.”

The Marine Engineers’ Beneficial Association (MEBA) and the International Organization of Masters, Mates, and Pilots (MM&P) also jointly voiced their support for cargo preference laws and talked about the impact that they have on their respective memberships.

“There should be no question that, in order to grow and maintain the U.S. Merchant Marine, U.S.-flagged vessels should be used to the greatest extent possible when shipping government-impelled cargoes,” said William Doyle of MEBA. “Rigorous enforcement and oversight of cargo preference laws enables MarAd to fulfill its mission. Without oversight and enforcement from MarAd, the presence of the U.S.-flag fleet in the foreign trades would cease to exist, leaving a glaring hole in our national defense capabilities and negatively impacting our economy.”

Other speakers pointed out the economic importance the laws have on private shipowners and the costs that are deferred from the government because of them. Cargo preference laws, according to several presenters, provide an economically efficient way to bolster private industry and support jobs.

“Virtually every privately owned U.S.-flag vessel engaged in the foreign trade depends to some degree on cargo preference to remain economically viable,” said Bill Kenwell of Maersk Line, Limited on behalf of USA Maritime, an industry group consisting of shipowners, operators, and labor groups. “Indeed, absent cargo preference, it is no exaggeration at all to say that the U.S.-flag fleet in foreign commerce would disappear and the U.S. government would have to duplicate that sealift capability at enormous expense with government-owned vessels.”

In spite of these facts, however, many in the room were disappointed with MarAd’s efforts to enforce cargo preference laws. Even with revisions made by Congress that would bolster the programs, the agency’s efforts are still seen as lacking.

“If I had to sum up our feelings about MarAd’s performance when it comes to cargo preference matters in one word, that word would be frustration,” said Tellez, pointing to long vacancies in important MarAd positions and the lack of implementation of a three-year-old revision that punishes entities that don’t adhere to cargo preference rules.

Richard Berkowitz of the Transportation Institute, another maritime industry group composed of multiple sectors, agreed.

“Judging from the lengthy time it has taken to fill key management positions at MarAd related to cargo preference administration, it is difficult to believe that the administration’s role to ‘promote … the viability of the U.S. Merchant Marine’ is being taken with the earnestness and purpose needed to direct the government-impelled cargo so key to sustaining U.S. vessels in international trade lanes,” said Berkowitz.

Liberty Maritime Corporation CEO Philip Shapiro sent a letter to MarAd to throw his company’s support behind USA Maritime’s statements but added that the agency could be doing more in regards to cargo preference.

“Liberty Maritime would only like to add that it is imperative that the U.S. Maritime Administration place a high priority on cargo preference implementation and enforcement,” said Shapiro. “Congress has charged MarAd with ensuring that cargo preference achieves its objectives of supporting a strong and vibrant U.S.-flag Merchant Marine.”

In spite of some complaints, the SIU and others at the meeting reinforced their eagerness to work with the administration.

“The cargo preference laws work when they are properly enforced,” said Tellez. “They work when the resources needed to ensure that they’re being enforced are there. I am confident that MarAd can resolve these issues swiftly and I look forward to working with the agency in the future as we all strive to promot and protect our merchant marine.”

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Priority for standard private armed guards contract

From the Baltic and International Maritime Council (BIMCO)
21 November 2011


With the increasing use of armed guards on ships and the fear that second-rate security firms may take advantage of the piracy situation, BIMCO is forging ahead with the development of a standard contract for the employment of armed guards. The new contract, which will be drafted by a team of experts of shipowners, lawyers and underwriters, and with the assistance of the International Group of P&I Clubs, will require private security firms offering armed guards to follow the IMO Guidelines for owners on the used privately contracted armed security personnel on board ships (MSC Circular 1405). Of major importance is ensuring that security contractors have in place proper and sufficient public and employers’ liability insurance – which is a concern recently raised by the International Group of P&I Clubs. While much of the new BIMCO contract will deal with operational aspects of employing armed security guards, issues of liability and responsibility will be of prime importance.
New private maritime security firms are springing up almost daily to meet shipowners’ growing demands for their services for vessels operating in high risk areas. It is very important that this new sector is regulated and that harmonised terms are developed and agreed. BIMCO has given this project the highest priority so that the standard contract can be published as soon as possible – most likely within the next two months.

Coast Guard, partner agencies continue preparations for international offshore drilling

From a US Coast Guard Press Release:
Date: November 18, 2011

Contact: Public Affairs Office
(305) 415-6683


MIAMI — The U.S. Coast Guard continues to work closely with federal, state and local agencies as well as maritime industry officials to update contingency plans to ensure readiness to respond to any potential oil spills in international waters that could potentially impact U.S. waters and coastline.
At the local-level, Coast Guard Sectors Jacksonville, Miami, Key West and St. Petersburg are updating their respective Area Contingency Plan, which will have specific response guidance pertaining to, the near and on-shore response efforts to be conducted along all of the State of Florida coastline that is within the 7th Coast Guard District’s area of responsibility.
On a broader scale, the Coast Guard is overseeing work on an Offshore Drill Response Plan and Regional Contingency Plan that focuses on response operations; strategies and tactics that will be employed out at sea to combat a spill and other response operations.
"Our primary focus for the past several months has been updating our contingency plans, ensuring they are ready to be activated in the event an incident was to occur that posed a substantial risk to our marine environment, and ensuring that lessons learned from the Deepwater Horizon oil spill are incorporated into our plans," said Capt. John Slaughter, chief of planning, readiness, and response for the 7th Coast Guard District.
Another important focus has been ongoing interagency engagement. More than 80 Coast Guard representatives and officials from South Florida coastal counties, Departments of Commerce, Defense, National Oceanic and Atmospheric Administration, Bureau of Safety and Environmental Enforcement, Department of Treasury, Environmental Protection Agency, the State of Florida Department of Environmental Management and Department of Environmental Protection, and maritime industry held a table top exercise Thursday utilizing response plans to address a fictitious international spill off the coast of Florida. The exercise allowed participants to discuss sensitive environmental areas, planning strategies, likely issues and response coordination principles that responders would face, as well as gather additional information to use in future planning.
"Our engagement with these preparedness efforts has been and continues to be far reaching and therefore includes a host of federal, state, and local and private entities," added Slaughter.
The exercise is one of the many actions to ensure readiness and mutual cooperation among the U.S. response community. As the designated federal on scene coordinator for any coastal spill, the Coast Guard's objective is to ensure the response community has the opportunity to review plans, identify needed updates and be ready for proposed offshore drilling outside U.S. waters.
“Protecting the marine environment from accidental oil and chemical spills is a key mission of the U.S. Coast Guard," said Rear Adm. Bill Baumgartner, commander of the 7th Coast Guard District. "These efforts are ongoing and the U.S. Coast Guard will continue to maximize information sharing, preparation, and training with all involved to ensure sound strategies and liaisons are built to prepare for and respond to any potential environmental threat to U.S. waters.”

Port of Seattle Turns Up 10 Explosive Containers

Kizzi Nkwocha | Mon, 7 Nov 2011

US Coast Guard admits it has no plans yet for dealing with containers

IFW-Net

 

At least ten more potentially explosive containers have been found at the Port of Seattle with a question mark still hanging over the fate of the growing collection of containers.

Earlier this year maritime authorities reported that three reefer containers exploded or caused a fire, resulting in two fatalities in Vietnam and one in Brazil.

The explosions were believed to be the result of contaminated gas added to the boxes’ refrigeration units during servicing in Vietnam.

According to local reports, a growing stack of 80 refrigerated containers at the Port of Seattle have been sitting by itself, isolated from the rest of the port for safety reasons.

The US Coast Guard said it is working with the terminal operators to keep the 80 containers away from everyone, but admits there is no specific plan yet for dealing with them.

Rudy Finne of the International Longshore and Warehouse Union, said: "I personally think it’s ludicrous to have possible bombs at every corner here and have everybody seem not that concerned about it."

The Pacific Maritime Association, which represents the various terminal operators, said it is looking for a solution to checking each container to see if it poses any risk. These at-risk containers are being turned away from terminal operators, and as a result, they remain out in the public.

Meantime, the union is worried about containers that left Vietnam and may have passed through local ports before the security alert was put in place.

The three reefers that exploded were operated by Maersk Line, but since the danger was reported all carriers are scrambling to find any reefers that have been repaired in Vietnam since February.

Maersk has removed all its 844 reefer containers that have been repaired in Vietnam.

Sailing The Gulf of Aden Is Like Playing Russian Roulette.

Source: EU NAVFOR

Christian Colombo, a former French Navy sailor and his wife were on their way to fulfil their dream. They were sailing to see the world in their yacht, the SY TRIBAL KAT until this dream was destroyed in the most traumatic way.

E.Colombo threatened with AK47

The TRIBAL KAT was attacked by Somali suspect criminals off the coast of Yemen while passing through the Gulf of Aden. Christian Colombo was killed during the attack, his body thrown overboard and his wife taken against her will by the suspect criminals. She was being moved by skiff towards Somalia when by a combination of good fortune, considering the vast area to be searched, and close cooperation between the counter-piracy forces in the region, a complex and dangerous rescue operation succeeded in recovering Mrs. Colombo uninjured.

The SY TRIBAL KAT was only the most recent of about 10 yachts attacked and their crews captured by Somali suspected pirates in the Gulf of Aden and the Indian Ocean in the past three years.

Nearly every recorded attack on a yacht has led to the crew being taken hostage and moved to Somalia where they were kept on land, their yachts being discarded. SY ROCKALL was completely stripped of everything onboard including the engine.
On land, the level of risk and hardship on the hostages is increased. They are removed from their familiar environment and exposed to a rough country with a harsh, hot climate. Often, hostages are held in the most basic conditions, i.e. no electricity, no sanitary installations, rationed basic food and water. Pirates have frequently moved hostages at short notice to avoid detection, increasing the stress and strain for the hostages.

The ordeal hostages have to endure can include every form of abuse. Physical and psychological mistreatment can include physical violence and mock executions. In some cases, crews and families have been separated for extended periods of time exposing hostages to the stress of uncertainty on the fate of their partner or child. When hostages were separated, pirates have simulated killing one or more of the hostages with machine gun fire out of sight of the remainder to increase the pressure for a ransom to be paid; the hostages are assumed to be very rich and the ransom demands can be for millions of dollars.

On average, maritime hostages have been held for over 7 months. However, for Paul and Rachel Chandler from the SY LYNN RIVAL, their captivity lasted 388 days in the Somali bush. They were eventually released after payment of a ransom however others are not so fortunate; French yacht-owner, husband and father, Florent Lemacon, was killed in April 2009 during the liberation of the SY TANIT. In February 2011, pirates shot and killed four Americans aboard the SY QUEST off the coast of Somalia when U.S. naval forces were trying to negotiate their release.

The presence of warships from EUNAVFOR, NATO and the Coalition Maritime Force, in addition to other naval forces, in the Gulf of Aden has significantly reduced the success of piracy attacks in this area. However, there remains a serious and increasing threat from piracy from the southern Red Sea, through the Bab el-Mandeb to the Gulf of Aden, off the coast of Somalia and into the Indian Ocean. This area is the same size as Western Europe and there are only between 12 and 18 warships in the area, with far higher priority tasking than protection of yachts and their crews, so if attacked, the chance of release is remote.

The risks to yachts from pirates are significant – they operate from one or more small skiffs, able to reach up to 25 knots. Increasingly, pirates use small arms fire and Rocket Propelled Grenades (RPGs) to stop and board vessels. Attacks have taken place mostly during the day, but pirates have also attacked at night. Pirates are likely to be aggressive, highly agitated, and possibly under the influence of drugs, (including khat, an amphetamine like stimulant).

Yachts cannot out-run the pirates and are unable to prevent boarding. Merchant ships, which have higher freeboards and can adopt the self-protection measures recommended in the fourth edition of “Best Management Practices for Protection against Somalia Based Piracy” (BMP) improve their chances but even these only delay a determined pirate.

There is only one sure way of avoiding your yacht and crew being captured – freight the yacht across the high-risk area.

Otherwise you could be playing Russian Roulette with your crew and family.

America's Cup Act of 2011 has passed! Now what?

While it is commendable that the Senate and House passed the America's Cup Act of 2011, I still question the need for the bill. This created a loophole in the Jones Act of 1920 and sets a precedent for every on the water sporting event to be held in the future. It will effect any boat race, power or sail, held in U.S. Waters. The America's Cup World Series Events and the America's Cup Challenge are very big events. The question now is, are they going to write new bills into law for the small events held in Florida, California, Washington and New England that draw international teams? 

Here is the Press Release from the America's Cup Race Authority:

America’s Cup Event Authority today issued the following statement on the America’s Cup Act of 2011:

Saturday, 05 November 2011

“We applaud the members of the U.S. Senate and U.S. House of Representatives who voted overwhelmingly in support of the America’s Cup Act of 2011,” said Craig Thompson, Chief Executive Officer, America’s Cup Event Authority. “This Act enables our international field of America’s Cup teams to participate in the only global sporting event currently committed to come to the United States in the next decade.”

The upcoming America’s Cup events in Newport, Rhode Island, San Francisco and San Diego, California are predicted to create thousands of jobs and over $1 billion in economic impact over the next two years. For the first time in history, the America’s Cup will be able to be seen from shore, creating tremendous public access for spectators as well as drawing large spectator crowds to benefit the port cities hosting America’s Cup events.

“We are very proud that our host cities of San Diego, San Francisco, and Newport, Rhode Island will benefit greatly from hosting America’s Cup events,” said Thompson. “We are working closely with the cities of San Diego, San Francisco, and Newport, Rhode Island to maximize this economic impact.”

Third party sources estimate a $20-million economic impact to San Diego from the event to be staged November 12-20, 2011, with an estimated $72-million economic benefit to Newport, Rhode Island, which will be held in June 2012.  Additionally, the America’s Cup is predicted to deliver an estimated over $1 billion economic impact to the San Francisco Bay area, with more than 8,500 jobs that will be created due to the America’s Cup.

The 34th America’s Cup is the oldest trophy in modern sport and continues to build upon its rich heritage of leading-edge innovation with an event that is designed to showcase the best sailors in the world on the fastest boats.

The Changing Face of Piracy

From Maritime Reporter & Engineering News, October 2011

 

David Rider

As the NATO and EU NAVFOR operations Ocean Shield and Atalanta continue their work in the Gulf of Aden, Indian Ocean and Red Sea areas, one could easily be forgiven for thinking, well, that’s that. Tough luck, pirates, the world is on to you. Sadly, as anyone involved in international shipping knows, that is very far from the truth.
The fact is that the areas patrolled by the world’s navies are vast and the chance of early interdiction of a pirate skiff or mothership by a naval vessel is small. In the risk versus reward world of the pirate, it’s a virtual no-brainer.
Given that around seven percent1 of the world’s oil supplies and an estimated 22,000 vessels transit the Gulf of Aden (GoA) annually, it would be reasonable to expect that same transit route to be safe and free of incident, but the reality is far from it.
In early August 2011, the International Chamber of Commerce’s Commercial Crime Service reported that there had already been 22 successful hijackings by Somali pirates, while countless others have been approached, attacked and pursued by pirates in high speed skiffs, launched from nearby motherships.
As the methods employed by the world’s navies to combat them have become more sophisticated and organized, so the pirates have changed their tactics to suit, with the first six months of 2011 showing a dramatic rise in attacks over the same period for 2010; some 266 attacks on vessels in the period, compared with 196 for last year2.
This year’s monsoon season has been a stark reminder that pirates are highly motivated to capture their quarry. While normally shipping could breath a sigh of relief at the arrival of the summer monsoon, this year the IMB issued a statement warning seafarers of the continuing danger of pirate attack. The organization said that the movement of pirates to the GoA and Southern Red Sea (SRS) areas, due to monsoon conditions in the Indian Ocean were a, “cause for concern.” IMB Director, Captain Pottengal Mukundan, said: “It may be that these recent Indian Ocean incidents are a sign of desperation by pirates, or that there are many more pirate groups operating now than there were in 2010, particularly outside the Gulf of Aden.”
As a leading supplier of armed security personnel to the maritime community, Neptune Maritime Security continually has Vessel Protection Teams (VPTs) transiting both the IRTC and High Risk Area, and identified a potential trend in pirate tactics during the monsoons.
While July was a quiet month in the SRS region, with only a handful of minor reports, a string of what can only be termed ‘swarm’ attacks took place in August off the coast of Eritrea, possibly due to pirates moving up through Bab el-Mandeb, the ‘Gate of Tears,’ the strait that connects the Red Sea to the Gulf of Aden and Indian Ocean. When the monsoons bring dangerous conditions to the open sea, pirates will retreat here to calmer waters.
It was here that large numbers of pirates were reported to be operating in ‘packs’ and attempting to swarm vessels in large numbers.
The first incident, on August 7, according to the report filed with the IMB’s Live Piracy Reporting Center3, saw 12 skiffs containing between five to eight pirates per skiff pursue and attack a bulk carrier approximately 20nm off the coast of Eritrea. As the skiffs approached to within 300m of the carrier, the Master ordered the armed security guards onboard to fire warning shots at the pirates’ skiffs. While this show of force saw the majority of pirate vessels break off their attack, two skiffs continued in their pursuit for some 30 minutes, returning fire at the armed guards until they, too, aborted their attack. If one believes the report – and there is no reason to doubt the legitimacy of reports filed with the IMB – then even underestimating the number of pirates to just 60 still leaves us with evidence of a worrying trend in pirate tactics.
Following an advisory notice issued by Neptune Maritime Security to both the media and other companies in the industry, we received news of a second ‘swarm’ attack4 on August 10. On this occasion, a Panama-flagged tanker, Golden Topstar, was pursued while underway at 13:08N-043:07E by pirates in 12 skiffs. The vessel evaded the attack by employing evasive maneuvers and firing flares. The site of the incident is just 6.5nm away from the attempted attack three days previously.
A third ‘swarm’ attack occurred5 on August 17. A bulk carrier underway, approximately 22nm off Assab, Eritrea, at 13:16N-043:01E, was approached by seven high speed boats, each containing three to five men, armed with automatic weapons. Again, the attack was repelled thanks to the employment of evasive maneuvers and an increase in speed by the vessel. This attempt occurred just 10.2nm away from the incident on August 10th.
Reports then emerged from the Iranian Navy, concerning a wave of attempted attacks on the bulk carrier ‘SAEI’ at the mouth of the SRS at Bab-el-Mandeb, although exact location information was not provided. According to the Iranian Navy report, the first attack saw four skiffs containing 20 pirates engage the vessel, the second wave featured eight skiffs with a force of 40 pirates and a third and final attempt was said to feature just two skiffs with just 12 pirates on board.
While some sources have questioned the credibility of these reports, the bulk of available data should at least raise concerns in the industry as to the changing and malleable nature of the tactics employed by pirates in the area. The IMB reports6 that (at the time of writing), since May 20, 14 vessels have been attacked in the Southern Red Sea.
Further east, pirates were also changing their MO, choosing to avoid the rough Arabian Seas in favour of daring raids near major shipping hubs.
The successful hijacking of the chemical tanker, Fairchem Bogey7, on August 20, illustrates how pirates have altered tactics in response to pressure from EU NAVFOR, the monsoon and better practice by vessels transiting the HRA. According to reports, the Fairchem Bogey, carrying a cargo of methanol, anchored 4-5 miles off the Omani port of Salalah. Ironically, the armed guards employed by the shipping company to watch over the vessel in transit had disembarked once the ship reached what was thought to be safe anchorage. Then, at approximately 0630 UTC, a group of pirates stealthily boarded the vessel and took its crew of 21 hostage. Did the pirates have someone on shore, advising them of the protection team’s departure, or was this just dumb luck? We may never know.
The attack caused concern not only due to its brazen nature, but also because Oman has a well resourced Coast Guard, who were on the scene within an hour. Unfortunately, by then it was too late, and they were warned off by the hijackers, who later sailed the vessel to Garacad and demanded a $10m dollar ransom for its release8.
The attack shows parallels to the hijacking of the cargo ship, Leopard, which was boarded off the Omani coast on January 12. The freighter had discharged its armed guards and was boarded shortly afterwards. Six crew members are still being held hostage by the pirates involved9. Since the hijacking of the Fairchem Bogey, there have been several other attempts made to attack vessels, which the Omani Coast Guard have rebuffed.
While attacks on vessels off Oman are hardly news, recent weeks have seen an increase in attempted hijackings in the region, which perhaps illustrates the increasing pressure pirate gangs have felt due to local weather conditions, the presence of naval vessels and more recently, the presence of armed security guards onboard vessels. According to EU NAVFOR, 90% of ships surviving a pirate attack in the Gulf of Aden this year have credited a security team for aiding their escape10.
As we reach the end of the monsoon season, international shipping can once again expect Somali pirates to strike out further into the Arabian Sea and Indian Ocean in an attempt to make up for time lost due to the monsoon, utilising hijacked fishing boats and merchant vessels as mother ships. As Captain Keith Blount, Chief of Staff with EU NAVFOR told Reuters: “I think we are going to see a surge in piracy because we always have done at this time when the southwest monsoon abates and the seas become flatter.”
 “Typically the pirates have a really good go in the autumn and winter,” he said on the sidelines of a shipping conference11.
The international battle against piracy continues its cat and mouse game, with no immediate end in sight for either the beleaguered shipping companies who have paid an estimated $95 million in ransoms this year alone, or the estimated 343 seafarers still being held hostage in Somalia12.

Neptune Maritime Security
www.neptunemaritimesecurity.com
Email: info@neptune-ms.com

(As published in the October 2011 edition of Maritime Reporter & Engineering News - www.marinelink.com)