Diana Takes a Hit on Charter Extension


Diana Takes a Hit on Charter Extension




Athens-based Diana Shipping has, through a separate wholly-owned subsidiary, agreed to extend the present time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk vessels, the m/v Leto.
The charter extension is for a period of about fifteen to eighteen months.
The gross charter rate is USD 7,100 per day, and is expected to commence on June 19, 2015.
This employment extension is anticipated to generate approximately USD 3.1 million of gross revenue for the minimum scheduled period of the time charter.
Diana initially chartered out Leto to Cargill back in July 2014, at a gross charter rate of USD 11,350 per day.
The Leto is a 81,297 dwt Panamax dry bulk vessel built in 2010.

Creditors Okay Pan Ocean’s Rehabilitation Plan


Creditors Okay Pan Ocean's Rehabilitation Plan




Pan Ocean’s rehabilitation plan has been approved by the Seoul Central District Court, following the agreement of more than two thirds of unsecured claims creditors (87.0%) and more than half of shareholders (61.6%), the bulker owner said in a stock exchange filing.
The company submitted the revised rehabilitation plan to the court on 21st April 2015, and submitted the revised rehabilitation plan (amendment) on 5th June 2015.
The revised rehabilitation scheme will see the creditors recover 83% of the debt under a takeover deal with Harim Group & JKL Consortium.
The deal provides for Pan Ocean’s recapitalization through sale of equity, thus covering the company’s accumulated debt.
Harim submitted USD 9.7 billion for the acquisition which is expected to be wrapped up next month.
South Korea-based bulk carrier, formerly STX Pan Ocean, entered court receivership in June last year, for the second time in two decades, after its parent company STX Group failed to sell the unit due to an ongoing downturn in the industry.
World Maritime News Staff

APM Terminals Identifies Top 5 Challenges for Container Port Industry


APM Terminals Identifies Top 5 Challenges for Container Port IndustryAPM Terminal’s Maasvlakte II Terminal
The five biggest challenges the container port industry is facing are better safety performance, greater operational complexity as a result of much bigger ships, managing congestion risk, staying profitable though shipping line economic cycles, and doing more with less space, Dutch terminal operator APM Terminals said at this year’s TOC Europe Conference and Exhibition held in Rotterdam.
As part of its promotional campaign during the 40th edition of TOC Europe, APM Terminals hosted a study tour of its brand new Maasvlakte II facility and discussed port industry challenges and responses, as well as shared its vision for how the industry must raise its game to meet these new demands.
Delegates attending TOC Europe had a chance to study the new terminal first-hand in a port tour hosted by APM Terminals on Monday 8 June.
On the morning of Tuesday 9 June, Frank Tazelaar, Managing Director of APM Terminals MVII, explored the terminal’s operating and design concept in a keynote speech at the TOC Europe Container Supply Chain conference, joining major cargo owners, carriers and other supply chain members to discuss today’s most pressing industry issues under the headline conference theme ‘‘Shipping’s seismic shift: Dealing with the supply chain fallout.”
Alex Duca, Head of Design and Automation for APM Terminals, will also speak in the TECH TOC conference, where he will discuss the company’s vision of the new ‘eco-system’ of handling equipment and technology needed by the terminal industry to simultaneously improve safety, operational productivity and return on asset investment.
”APM Terminals is at the forefront of innovation and investment in international container terminal operations and we are delighted that the company has chosen TOC Europe 2015, our 40th edition, as the platform to share its latest developments and future vision,” said Paul Holloway, Director, TOC Events.

InterManager to Look into Minimum Manning Levels


InterManager to Look into Minimum Manning Levels




InterManager, the international trade association of ship managers, has set its sights on examining two key areas which could have significant benefits for the shipping industry.
First in its list of priorities is an investigation of minimum manning levels for different types of vessels trading on different trade routes and carrying different cargo types. The aim is to determine whether and how these need to be reviewed, better understood for their implications to safety and efficiency and then discussed at flag state level to take into account required rest hours as set under the Maritime Labour Convention (MLC), the association said.
The rules currently in place stipulate the minimum number of personnel needed to move a ship safely from one port to another.
“InterManager is concerned, however, that these rules were not just meant to set a crew complement number but were intended to also serve as a mechanism to improve overall operational status. Given today’s operating realities, this may not actually be what is happening,” Intermanager said.
InterManager’s Executive Committee agreed to engage with industry stakeholders to consider how best to ensure sustainable and safe manning levels, taking into account the current operating and legislative environment, onboard administrative burdens and fatigue issues.
Gerardo Borromeo, InterManager President, said: “For example, a VLCC calling at seven ports a year may have a minimum manning level of 18 but a smaller chemical tanker, calling at over 100 ports in the same period may be required to operate with a much lower crew complement of say 12. This has concerning implications when you consider the number of ports such a vessel may be visiting in a very short period of time.”
“We want flag states to look at each vessel type, the cargo it is carrying and the voyages it is on and to set up and agree on legislation to ensure there are always sufficient people on board to operate that vessel safely while catering for the necessary rest hours. We, of course, need to be realistic in approaching this issue as it involves not only safety and efficiency, but economics as well. At the end of the day, InterManager is looking to drive sustainable solutions that benefit the entire industry and the general public.”
A second area that InterManager intends to examine is the issue of “the paperless ship” and work to draw up guidelines aimed at reducing the amount of paperwork officers and their crew have to undertake while at sea.
According to Borromeo, the burden of administrative tasks falling on seafarers in today’s shipping industry is significant.
“Industry surveys have indicated that the volume of red tape is one of the factor’s adversely affecting recruitment. InterManager aims to improve this situation not just for today’s seafarers but also for tomorrow’s,” he added.
These new projects follow confirmation this week that InterManager has achieved its pre-set aim of delivering a comparable set of operational KPIs to the shipping industry as a whole by passing over ownership of the scheme to BIMCO.

OBP: Pirate Boarding in Southeast Asia Successful in 90 Pct of Cases


Pirate Boarding Success Rate  90 Pct in Southeast Asia
More than 90% of the reported attacks in Southeast Asia resulted in pirates successfully boarding target vessels, according to the latest analysis of pirate attacks in Southeast Asia carried out by Oceans Beyond Piracy (OBP).
The OBP’s State of Maritime Piracy Report, now in its fifth edition, analyzes the impacts of this crime during 2014 in the Western Indian Ocean, the Gulf of Guinea and, for the first time, in Southeast Asia.
At least 5,000 seafarers were attacked in Southeast Asia, the Gulf of Guinea, and Western Indian Ocean in 2014, the report said.
The report further shows that 800 seafarers were involved in incidents in South East Asia where violence or the threat of violence was specifically documented. Nearly 3,600 seafarers were on board vessels boarded by pirates in SE Asia, the study shows.
In the Gulf of Guinea, the number of reported attacks remained within historic patterns. However, the region faces a variety of challenges related to chronic under-reporting of incidents and an absence of prosecutions.
“We have observed that up to 70% of piracy-related incidents in the Gulf of Guinea are never reported, so we currently lack a complete understanding of the problem,” says Pottengal Mukundan, Director of the International Maritime Bureau. “This also makes it difficult to assess the extent of the threats seafarers face in this region.”
At least 5,000 seafarers attacked in Southeast Asia, the Gulf of Guinea, and Western Indian Ocean in 2014
Total economic cost of piracy in the region was estimated at USD 983 million for 2014.
In the Western Indian Ocean, OBP found that while naval mandates, recommended industry self-protection practices and the size of the High Risk Area remain unchanged, the observed commitment of naval assets and use of vessel protection measures such as increased speed and rerouting by merchant vessels continued to decrease, resulting in the total economic cost dropping by 28% in 2014. Total economic cost for 2014 is estimated at USD 2.3 billion.
Alarmingly, the perceived reduction in the piracy threat has also resulted in more foreign fishing vessels returning to areas close to the coast of Somalia, OBP said.
Alan Cole, Head of UNODC’s Global Maritime Crime Programme notes, “These provocations are similar to those that triggered piracy off the coast of Somalia in the first place. We are already seeing an upturn in regional piracy incidents since the beginning of the year.”
Finally, the report recognizes that seafarers across the globe are the primary victims of piracy and armed robbery at sea. A chilling example of this are the twenty-six high-risk hostages from the Naham 3 who remain in pirate captivity in Somalia today, more than three years after the initial hijacking of their ship.
“The evidence shows that piracy continues to be a world-wide threat to seafarers. There are specific contexts that distinguish each region, but there is a common lesson in the need to address piracy through cooperation, vigilance, and sustained effort by all actors across the maritime sector,”said Admiral Sir James Burnell-Nugent.
The Report will be officially launched today at the Army and Navy Club (the Rag), London, where a panel of experts will address key issues and answer questions.
Image: EU CMR

Inexperience and Hectic Response Led to Bulker Grounding off Canada


Inexperience, Hectic Response Grounded John I off Canada





Lack of experience operating in ice-covered waters and uncoordinated emergency response led to flooding and grounding of bulk carrier John I off Newfoundland and Labrador on March 14 last year, the Transportation Safety Board of Canada (TSB) said in its investigation report.
The John I entered ice-covered waters off the southwest coast of Newfoundland on its way to Montreal, Quebec, from Las Palmas, Spain.
After the engine cooling water temperature began to rise, the crew opened the sea water strainer and found it was plugged. As the crew began removing ice and slush from the strainer, water began to overflow from the open strainer box. When the crew attempted to close the leaking sea chest valve to stop the flow of water, its operating mechanism failed. Sea water began to enter the vessel in an uncontrolled manner, overflowing into the engine room. The master then ordered the vessel to be blacked out, causing it to drift. As the vessel drifted towards the shore, commercial towing assistance was requested, but delayed due to the weather.
Upon its arrival on scene, the Canadian Coast Guard (CCG) vessel Earl Grey offered to tow the John I away from the shore. Further delays were encountered while the John I’s master conferred with the vessel’s managing company, the CCG and the Joint Rescue Coordination Centre (JRCC).
When the master finally accepted the tow, the first attempt to establish a tow line failed, and the vessel’s proximity to the shoals did not allow for completion of a second attempt. The John I then ran aground on the shoals. The 23 crew members were evacuated by helicopter. The vessel’s hull sustained minor damage.
The investigation found that warmed sea water from the engine cooling system was being partially discharged overboard and partially returned to the main sea water pump suction, rather than being recirculated to the low sea chest to prevent ice buildup. The strainer became plugged with ice and slush. The sea chest valve was prevented from fully closing, likely due to ice buildup, and the valve operating mechanism failed due to overstress when the crew forcibly attempted to close it, which led to the flooding.
The JRCC did not have the authority to direct the master of the John I to accept the tow.
Neither the Department of Fisheries and Oceans Environmental Response nor Transport Canada, both of which had the authority to direct the vessel to accept the tow, were actively involved at an earlier stage when it was clear that the time to take action was running out and the environmental risks posed by the vessel going aground were increasing.
The delay in starting the towing operation was caused both by the master’s reluctance to accept the tow and by the way that authorities managed the situation, according to the report.

Tarahan Coal Port Ready for Bigger Bulkers


Tarahan Coal Port Ready for Bigger Bulkers




A new jetty has been inaugurated today at Tarahan Port in Bandar Lampung, Indonesia, boosting the coal port’s capacity with 25 million tons per year.
The upgrade has rendered the port capable of accommodating ships of up to 210,000 DWT (Capesize), making way for the port to take up the lead in Indonesia in terms of capacity.
The inauguration was signed by Minister of Transportation Ignatius Jonan at Tarahan coal terminal, operated by state-owned mining company PT Bukit Asam (Persero) Tbk.
With the new 210,000 DWT jetty, currently Tarahan port has 3 jetties, one with 80,000 DWT (Panamax) and one with 10,000 DWT (barge) berthing capacity, that can be operated simultaneously.
With the new capacity, a ship with 210,000 DWT can be fully loaded within 35 hours or less than 3 days.
Additional berthing capacity in Tarahan will help boost PTBA’s competitive advantage in domestic market and help attract major producers from Australia as now the port can handle large-capacity vessels to improve efficiency in coal transportation costs.
“This can also help push forward the national shipping industry and serve domestic coal needs,” the ministry as quoted by Antara news agency.